MIRA INFORM REPORT

Report Date :

25.10.2008

IDENTIFICATION DETAILS

Name :	XPRO INDIA LIMITED
Registered Office :	Barjora – Mejia Road, P.O. Ghutgoria Tehsil : Barjora, District Bankura – 722202, West Bengal
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	26.11.1997
Com. Reg. No.:	085972
CIN No.: [Company Identification No.]	L25209WB1997PLC085972
TAN No.: [Tax Deduction & Collection Account No.]	CALX00017D
PAN No.: [Permanent Account No.]	AAACX0120H
Legal Form :	Public Limited Liability Company. The company shares are listed on stock exchange.
Line of Business :	Manufacturing of thermoplastic films/ sheets, cotton yarn, thermosetting powders, resins, etc.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 5180000
Status :	Very Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established and reputed company having fine track. Available information indicates high financial responsibility of the company. Trade relations are fair .General financial position is satisfactory. Fundamental are strong and healthy. Payments are reported as usually correct and as per commitments. The company can be considered good for normal business dealings. It can be regarded as a promising business partner in a medium to long – run.

LOCATIONS

Registered Office :	Barjora – Mejia Road, P.O. Ghutgoria Tehsil : Barjora, District Bankura – 722202, West Bengal, India
Tel. No.:	91-3241- 257263/4 / 33-23345326 / 26600931
Fax No.:	91-3241- 257266
E-Mail :	biaxcal@cal2.vsnl.net.in xprocorp@birlas.com info@xproindia.com info@xproindia.com
Website :	www.xproindia.com
Corporate Office :	1, Industrial Area, N.I.T., Faridabad – 121001, Haryana, India
Tel. No.:	91-129-2233915/17
Fax No.:	91-129-4028300 or 4028290 / 25028300 / 25028290
E-Mail :	amajumdar@xproindia.com xprocorp@birlas.com  cbhaskar@xproindia.com hbakshi@birlas.com uksaraf@xproindia.com ravikumar@birlas.com vinay@xproindia.com
Factory:	Biax Division:  Barjora-Mejia Road, P.O. Ghutgoria Tehsil : Barjora, District: Bankura, West Bengal – 722202, India Tel.: 91-3241-257263/4 Fax: 91-3241-257266 Email :brbhattacharya@xproindia.com hbakshi@birlas.com Coex Division:  Faridabad Unit: Xpro India Limited - Coex Division, 2-3, Industrial Area, N.I.T., Faridabad - 121001, India Tel.: 91-129-2233915/17 Fax: 91-129-2231456 Email: mmk@xproindia.com Greater Noida Unit: Xpro India Limited - Thermoforming Unit, Plot 32, Udyog Vihar, Greater Noida, Dist.Gautam Budh Nagar - 201306, UP, India Tel.: 91-120-2560739 or 2230890 Mobile. No. 9811379110 Fax: 91-120-2560740 / 25028300 Email : uks@xproindia.com uks@birlas.com Pune Unit: Xpro India Limited - Sheet Plant, Plot No. E-89, MIDC Industrial Area, Ranjangaon, Pune – 412209, India Tel.: 91-2138-232821/24 Fax: 91-2138-232825 Email : rbmuley@xproindia.com Thermosets Division:  · Xpro India Limited - Thermosets Division, Plot No. E-89, MIDC Industrial Area, Ranjangaon, Pune 412 209, India Tel.: 91-2138-232821/24 Fax: 91-2138-232825 Email: aniljain@xproindia.com · Poisar Bridge, Kandivli (West), Mumbai - 400 067, Maharashtra Tel. No. 91-22-28051242/44 Fax. No. 91-22-28019917 E-mail. adi@birlas.com Joint Venture Texpro Films Private Limited, Plot No. 78, Industrial Area No. 3, Pitampur, Dist. Dhar, Madhya Pradesh, India Tel No: 91-7292-256908 Fax No: 91-7292-256214 Cimmco Spinners Division B-1, MIDC, Chincholi-Kondi, Solapur - 413 006, Maharashtra, India Spinning Division B-1, M.I.D.C, Chincholi-Kondi, Solapur - 413 255, Maharashtra Tel. No. 91-217-22357250/54 Fax. No. 91-217-22357258 E-mail. dpgoenka@birlas.com
Branches :	Terxpro Films Private Limited, Plot No.78, Industrial Area No. 3 Pitampur, Dist. Dhar, Madhya Pradesh, India
Tel. No.:	91-7292-256908
Fax No.:	91-7292-256214

DIRECTORS

Name :	Mr. Sidharth Birla
Designation :	Chairman Cum Promoters
Date of Birth/Age :	44 yeas
Qualification :	B. Sc. (Hons.), M.B.A.
Experience :	23 years
Date of Appointment :	01.03.2000
Previous Employment:	Cimmco Birla Limited
Designation :	Director
Name :	Mr. Amitabha Ghosh
Designation :	Director
Name :	Mr. Haigreve Khaitan
Designation :	Director
Name :	Mr. P Murrari
Designation :	Director
Name :	Mr. Utsav Parekh
Designation :	Director
Name :	Mr. S Ragothaman
Designation :	Director
Name :	Mr. C Bhaskar
Designation :	Managing Director and Chief Executive Officer
Name :	Mr. Debeneel Mukherjee
Designation :	Director
Name :	Mrs. Madhushree Birla
Designation :	Director
Name :	Mr. S C Jain
Designation :	Managing Director and CEO

KEY EXECUTIVES

Name :	Mrs. Madhushree Birla
Designation :	Promoters
Name :	Mr. S C Jain
Designation :	Company Secretary
Name :	Mr. H Bakshi
Designation :	President and Chief Operating Officer
Name :	Mr. Manmohan Krishnan
Designation :	Executive Vice president , Coex Division
Name :	Mr. U K Saraf
Designation :	Executive Vice President , Thermoforming Unit
Name :	Mr. Anil Jain
Designation :	Executive Vice president , Thermo sets Division
Name :	Mr. V K Agarwal
Designation :	Executive Vice president ( F and A )
Name :	Mr. D. P. Goenka
Designation :	Joint President – Spinning Division

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As On 31.03.2008)

Category of Shareholding	Number of Shareholders	Shareholding  in % by amount
Resident individuals/others	48,879	47.94 %
Banks, FI’s, Insurance Companies	23	6.33 %
Mutual Funds (including UTI)	6	0.09 %
Non-residents/OCBs	141	1.02 %
Domestic Companies	550	44.62 %
Total	49,599	100.00 %

BUSINESS DETAILS

Line of Business :

Manufacturing of thermoplastic films/ sheets, cotton yarn, thermosetting powders, resins, etc.

Products :

Item Code No.	Product Description
3920	Thermoplastic Films / Sheets / Liners
3909	Thermosetting Powders and Resins
520511	Cotton yarn

PRODUCTION STATUS (as on 31.03.2007):-

Particulars	Unit	Installed Capacity	Actual Production
Thermoplastic Films / Sheets / Liners	M/T	21100	**12602
Thermosetting Powders and Synthetics Resins	M/T	9250	4855

Notes:

· Installed Capacities are as certified by the Management

· None of the products are covered under current 1DR licensing norms. Hence, "Licensed Capacity" not

reported.

· Production includes outside job work for others.

· Thermoplastic Films/Sheets/Liners production includes 739 MT inter-unit transfer/internal consumption

(previous year: 457 MT)

GENERAL INFORMATION

Suppliers :

· Barjora Packaging Private Limited

· Bengal Corrugated Paper Industries

· Bishwakarma Saw Mill

· Bharat Organics

· Constructive Packaging

· Entak Corporation

· Geeseven Laminated Sacs (Private) Limited

· Hind Packaging

· Jai Ambe Plastics

· Jupiter Dyes

· Kamal Containers

· Khetan Plasto Pack

· Mahabir Plastic Industries

· Modern Petro Packaging

· Narendra Grinders

· Pertect Forms

· Penguin Plastics

· Poly Pack Ind

· Rama Packaging Industries

· Sarat Banerjee

· Shree Rang Ind

· Shree Rang Pulverisers

· Sidh Masterbatch.es (Private) Limited

· Samra Plastics Private. Limited

· Techno Board Private. Limited

· Reliance Electrical Private. Limited

· Vijay Packing Industries

No. of Employees :

415

Bankers :

· Bank of Baroda

· ICICI Bank Limited

· IDBI Bank Limited

· IFCI Bank

· Arab Bangladesh Bank

Facilities :

Secured loan	31.03.2007 (Rs. in millions)
From Banks
Term Loan	224.492
Working Capita loans	211.428
Overdraft Against Term deposits	32.694
Total	468.614

Banking Relations :

Good

Auditors :

Name :

Lodha and Company

Chartered Accountants

Deloitte Haskins and Sells

Chartered Accountants

Address :

New Delhi

Joint Venture :

Terxpro Films Private Limited

Associates/Subsidiaries :

· Xpro Global Limited

· Diamond Realty Limited

CAPITAL STRUCTURE

(As On 31.03.2008)

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 millions
20000000	Unclassified Shares	Rs.10/- each	Rs.200.000 millions
		Total	Rs.350.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10500000	Equity Shares	Rs.10/- each	Rs.105.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		105.000	100.800	100.800
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		932.000	934.800	893.800
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1037.000	1035.600	994.600
LOAN FUNDS
1] Secured Loans		647.100	468.600	517.400
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		647.100	468.600	517.400
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1684.100	1504.200	1512.000
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		961.600	887.300	790.100
Capital work-in-progress		2.100	5.100	13.800
INVESTMENT		116.300	116.300	91.600
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	160.400	159.300	142.900
	Sundry Debtors	284.700	267.400	226.200
	Cash & Bank Balances	350.900	301.300	245.600
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	222.000	150.800	338.200
Total Current Assets		1018.000	878.800	952.900
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	362.600	351.300	296.400
	Provisions	51.300	32.000	40.000
Total Current Liabilities		413.900	383.300	336.400
Net Current Assets		604.100	495.500	616.500
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1684.100	1504.200	1512.000

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		1465.500	1327.900	1220.000
Other Income		49.400	115.200	54.000
Total Income		1514.900	1443.100	1274.000
Profit/(Loss) Before Tax		9.600	53.700	31.400
Provision for Taxation		6.400	(4.900)	7.400
Profit/(Loss) After Tax		3.200	58.600	2.400
Export Value		0.000	76.968	74.794
Import Value		0.000	181.520	171.075
Expenditures :
	Manufacturing Expenses	62.900	60.400	57.200
	Administrative Expenses	63.800	70.100	73.500
	Raw Material Consumed	815.600	732.800	601.600
	Power and Fuel	119.600	118.300	104.500
	Excise Duty	174.500	154.300	140.800
	Increase/(Decrease) in Finished Goods	(20.800)	(5.500)	16.600
	Salaries, Wages, Bonus, etc.	129.400	112.800	116.200
	Interest	73.500	61.500	48.900
	Depreciation & Amortization	72.100	65.500	58.600
	Other Expenditure	14.700	19.200	24.700
Total Expenditure		1505.300	1389.400	1242.600

QUARTERLY RESULTS

PARTICULARS	30.06.2008	30.09.2008
Type	1^st Quarter	2^nd Quarter
Sales Turnover	381.1	393.6
Other Income	2.4	3.2
Total Income	383.5	396.8
Total Expenditure	343.4	359.2
Operating Profit	40.1	37.6
Interest	10.8	13.7
Gross Profit	29.3	23.9
Depreciation	20.9	20.8
Tax	3.0	1.2
Reported PAT	5.4	1.9

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	0.21	4.06	0.18
Net Profit Margin (PBT/Sales)	(%)	0.65	4.04	2.57
Return on Total Assets (PBT/Total Assets}	(%)	0.48	3.04	1.80
Return on Investment (ROI) (PBT/Networth)		0.00	0.05	0.03
Debt Equity Ratio (Total Liability/Networth)		1.02	0.82	0.85
Current Ratio (Current Asset/Current Liability)		2.45	2.29	2.83

LOCAL AGENCY FURTHER INFORMATION

WEBSITE DETAILS:

Corporate Profile

Subject is a diversified multi-divisional, multi-locational company with a strong commitment to the polymer processing industry. Established as a separate entity as recently as 1998, the units comprising Subject have long been in existence. Subject thus brings with it years of experience while embodying a robust and youthful organization.

Subject forms an integral part of India's largest and most reputed Industrial House with a global presence in manufacturing and trading activities - the BIRLA Group, a conglomerate comprising of many divisions, each consisting of a number of publicly-listed Companies and headed by a member of the Birla Family. These companies, sharing a common ancestry dating back over 140 years, are engaged in a broad spectrum of business activities and possess an acknowledged track record of achievements in their respective fields.

Subject has a dedicated and highly committed work-force of well-trained employees placed at various locations. Manufacturing at all units is carried out by a team of qualified personnel under stringent quality standards. At the company, continuous product development and improvement are thrust areas and the underlying philosophy is to provide the highest level of satisfaction to customers through a deep commitment to excellence in every field. To offer consistently superior quality plastic products and cotton yarn, backed by exceptional services, to exceed customer expectations enabling them:

Manufacturing Units:

Manufacturing units of Subject have been structured into operating divisions as under:

Divisions	Activities
BIAX      Barjora,       West Bengal	»  Biaxially Oriented Polypropylene (BOPP) Films   »  Metallised Films   »  Capacitor Films
COEX   Extrusions Unit:        Faridabad,      Haryana	»  Coextruded Plastic Sheets   »  Coextruded Cast Plastic Films
Thermoforming Unit:         Greater Noida,       Uttar Pradesh	»  Thermoformed Components   »  Refrigerator Liners   »  Coextruded Plastic Sheets
Ranjangaon,       Maharashtra	»  Coextruded Plastic Sheets
THERMOSETS Ranjangaon,      Maharashtra	»  Thermoset Moulding Powders   »  Synthetic Resins
Terxpro Films Private Limited   (Joint Venture)      Pitampur,      Madhya Pradesh	»  Capacitor Films    »  Biaxially Oriented Polypropylene (BOPP) Films

The Biax and Coex Division are principally Polymer Processors and “PLASTICS EXTRUSION” forms the key technology determining their activities.

Within the wide definition of Extrusion, the Biax and Coex Divisions have built up special skills and competencies in the specialised field of Coextrusion with application in the manufacture of Oriented Films, Multi-layer Plastic Sheets and Multi-layer Cast Plastic Films.  Metallising and thermoforming capabilities have been set up essentially as downstream processing units for films and sheets respectively.

The Thermosets Division has been among the pioneers in the field of thermosetting and moulding materials. The activities of the division are focused around chemical compounds based on phenolics or formaldehydes.

They recognise that total customer satisfaction is key to their success. Their aim is to build sound and lasting customer relationships through creation of value.

Quality is built into products through appropriate manufacturing technology and work methods. Manufacturing at all units is carried out by suitably qualified personnel under strict quality standards

.
Continuous product development for specific applications has helped the company in developing technically sustainable solutions with clearly apparent customer benefits.

Quality systems at their manufacturing units are duly certified.

Under ISO 9001:2000 Standards:

• 
  Biax division for manufacture of BOPP films;
• Coex division for the manufacture of Coextruded Multilayer Plastic Sheets and Cast Films;
• Thermosets Division for the development and manufacture of Phenolic Resins, Phenol Formaldehyde Moulding Compounds and Amino Moulding Compounds

Unaudited Financial Results for the Quarter ended June 30, 2008 (Rs. In Millions)

Particulars	3 months ended  June 30		Year ended March 31
	2008	2007	2008
	Unaudited		Audited
Net Sales/Income from Operations	381.061	318.607	1294.450
Other Income	2.427	1.393	7.297
Expenditure
a. (Increase)/Decrease in stock in trade and work in progress	(4.680)	(13.299)	(20.806)
b. Consumption of Raw materials	239.621	208.515	815.604
c. Employees Cost	33.679	29.708	129.414
d. Power & Fuel	36.104	30.218	119.585
e. Depreciation	20.917	17.647	72.183
f. Other Expenditure	38.713	35.717	139.916
g. Total	364.354	308.506	1255.896
Interest (net)	10.759	7.645	36.294
Profit Before tax	8.375	3.849	9.557
Tax Expense	3.000	0.000	6.376
Net Profit	5.375	3.849	3.181
Paid-up Equity Share Capital      (Face value: Rs.10 per share)	110.000	100.750	105.000
Reserves excluding Revaluation Reserves	0.000	0.000	934.105
Earnings per Share (before tax)(Rs.) (Basic)	0.049	0.038	0.030
Earnings per Share (before tax)(Rs.) (Diluted)	0.049	0.038	0.029
Aggregate of Public Shareholding
- Number of Shares	5913839	5863089	5913839
- Percentage of Shareholding	53.76	58.09	56.32

Notes:

1.    The above Unaudited Standalone Financial Results were approved by the Board of Directors at their meeting held on July 28, 2008.

2.    There is no separate reportable segment as per AS 17 issued by the Institute of Chartered Accountants of India, as the Company is mainly in the business of Polymer Processing.

3.    Pursuant to necessary approvals 5,00,000 Equity Shares of Rs.10/- each were issued and allotted at a price of Rs.41.50 per share on April 4, 2008 upon conversion of warrants issued on preferential basis to Promoters/Promoter Group of the Company. NSE has granted listing/trading permission for the shares issued. Funds amounting to Rs.20.750 Millions (including Rs.2.075 Millions received in August 2007 on issue of the warrants) raised on the preferential issue of equity shares have been utilised for the stated objectives.

4.      a) Earnings per share (basic and diluted) for the quarter has been calculated taking into consideration the equity shares issued as stated in 3 above.

b) Profit after tax and Earnings per share for the quarter are not directly comparable with those for the corresponding quarter last year to the extent the latter were stated without tax provision.

5.      The Board had at its Meeting held on April 28, 2008 recommended a Dividend of 15% for the year ended March 31, 2008.

6.      The Company did not have any investor complaints pending at the beginning of the quarter. 28 complaints/queries were received and resolved during the quarter and accordingly none are pending.

7.      Figures have been regrouped where necessary.

8.      Results for the period ended June 30, 2008 have been reviewed by the Auditors of the Company.

It was the year 1862 when Shiv Narain Birla stepped out of Rajasthan, the desert state of India towards Mumbai, to set up a Trading House. This move marked the first step in the evolution of the biggest industrial empire India had ever seen. Today, the Group has operations in over 12 countries and a turnover that exceeds US$ 8 billion.

In the initial years, the Group was only involved in commodity trading and in exports and imports. In 1918, the Group diversified out into manufacturing and set up its first jute mill. Since then, there has been no looking back.

By the mid twenties, the majority of their activities centred around industry. The Group was now involved in the manufacture of a vast range of textiles made from jute, synthetics, cotton, wool and fibers. Each unit is an independent public limited company listed on the stock exchange. The Birlas, in fact, pioneered the concept of public holdings and professional management.

Birlas firmly believe in technological excellence. It's a philosophy that has helped bring to India technologies and collaborations from 70 International giants.  

The Birla Group is the foremost Indian industrial conglomerate. And it comes as no surprise that they are one of the strong pillars holding up the Indian economy today.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.95
UK Pound	1	Rs.79.56
Euro	1	Rs.63.65

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions