MIRA INFORM REPORT

Report Date :

10.09.2008

IDENTIFICATION DETAILS

Name :	J L MORISON (INDIA) LIMITED
Registered Office :	Rasoi Court, 20, Sir R.N. Mukherjee Road, Kolkata – 700 001, West Bengal
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	15.10.1934
Com. Reg. No.:	088167
CIN No.: [Company Identification No.]	U99999WB1934PLC088167
Legal Form :	Public Limited Liability Company. Company’s shares are listed on the stock exchanges
Line of Business :	Manufacturer and Supplier of cosmetics, toiletry and personal healthcare products.

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 3329540
Status :	Very Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having fine track. Trade relations are fair. Fundamentals are strong and healthy. Payments are reported as usually correct and as per commitments. The company can be considered good for normal business dealings.

LOCATIONS

Registered Office :	Rasoi Court, 20, Sir R.N. Mukherjee Road, Kolkata – 700 001, West Bengal, India.
Tel. No.:	91-33-22480114/ 5
Fax No.:	91-33-22481200
E-Mail :	m_ghia@rediffmail.com
Website :	www.jlmorisonindia.com
Head Office :	Crystal, 79, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra, India.
Tel. No.:	91-22-24975031-35.
E-Mail :	corporate@ho.jlmorison.com
Corporate Office 1 :	RASOI LIMITED, 401, Rohit House, 3 Tolstoy Marg, New Delhi-110 001, India.
Tel. No.:	91-11 – 32471516
E-Mail :	delcorp@sify.com
Corporate Office 2 :	RASOI LIMITED, Rasoi Court, 20, Sir R.N Mukherjee Road, Kolkata - 700 001, West Bengal, India.
Tel. No.:	91-33 – 32507946
E-Mail :	chairmansecreteriat@therasoigroup.com
Factory :	Plot No/ E-95/1, MIDC, Near Siemens Factory, Waluj, Aurangabad – 431133, Maharashtra, India.
Tel. No.:	91-95240 – 2555989/90
E-Mail :	pandita@jlmorison.com
Branches 1 :	United India Building, 22, Chittaranjan Avenue, Kolkata – 700 072, West Bengal, India.
Tel. No.:	91-33 – 32501937 / 32511292
E-Mail :	calbm@jlmorison.com
Branches 2 :	47, Moore Street, Post Box No. 1370, Chennai – 600 001, India.
Tel. No.:	91-44 – 32982663
E-Mail :	chebm@jlmorison.com
Branches 3 :	404, Rohit House, 3 Tolstoy Marg, New Delhi-110 001, India.
Tel. No.:	91-11 – 32453466
E-Mail :	delbm@jlmorison.com
Branches 4 :	79, ‘Crystal’, Dr A.B Road, Worli, Mumbai- 400 018, Maharashtra, India.
Tel. No.:	91-22-39445954
E-Mail :	bombm@jlmorison.com

DIRECTORS

Name :	Mr. Raghu Mody
Designation :	Chairman
Name :	Mr. Bipin Vengsarkar
Designation :	Executive Director
Name :	Mr. Varunn Mody
Designation :	Director
Name :	Mr. Har Kishore Kejriwal
Designation :	Director
Name :	Lt. Gen (Retd.) K S Brar
Designation :	Director
Name :	Prof. Atul Tandan
Designation :	Director
Name :	Mr. Lawson Lyon
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Purushottam Kejriwal
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2007

Category of Shareholder	Total No. of Shares	Percentage of Holding
Shareholding of Promoter and Promoter Group
Indian:
Individuals / Hindu	25550	1.87
Bodies Corporate	842180	61.69
Public Shareholding
Non – Institutions:	56734	4.15
Bodies Corporate
Individuals
i) Individuals shareholders holding nominal sharecapital upto Rs.0.100 million	364340	26.69
ii) Individuals shareholders holding nominal sharecapital in excess of Rs.0.100 million	40800	2.99
Any other (specify) NRI	35430	2.60
TOTAL	1365034	100.000

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier of cosmetics, toiletry and personal healthcare products.

Products :

Product Description	ITC Code
Skin Care Face Creams	330499
Powder Talcum	330491
Medicated Tooth Paste	330690

• Skincare Creams and Lotions
• Men's Shaving Toiletries
• Deodorants
• Soaps
• Talcum Powder
• Medicated Toothpaste
• Foot Care Products
• Baby Care Feeding Bottles and Accessories

GENERAL INFORMATION

Suppliers :

• Bhavin Containers Private Limited
• Midas Care Pharmaceuticals Private Limited
• Mum’s World Baby Products
• Shree Rubber Works

Bankers :

• Canara Bank
• Bank of India
• Corporation Bank

Facilities :

	As on 31.03.2007 [Rs. in Millions]
SECURED LOANS :
From Banks - Cash Credit (Cash Credit is secured by joint hypothecation of book debts and stocks of raw materials, finished goods and semi-finished goods and first charge on immovable properties situated at Bangalore)	66.678
- Term Loan (Secured by Equitable mortgage of residential flats)	42.482
- Overdraft facility Secured by Fixed Deposit Receipts)	240.013
Vehicle Loan from Banks (Secured by hypothecation of vehicles)	5.134
Total	354.307
UNSECURED LOANS :
Sales Tax Deferment Loan	47.301

Banking Relations :	Good
Auditors :
Name :	Haribhakti and Company Chartered Accountants
Address :	Mumbai – 400 021, Maharashtra, India.
Associates :	Rasoi Limited Hindustan Composites Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- Each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1365034	Equity Shares	Rs.10/- Each	Rs.13.650 Millions

1365034 (Previous Year 1365034) Equity Shares of Rs.10/- each fully paid-up [of the above 454010 (previous year 454010) Equity Shares of Rs.10/- each issued as fully paid-up Bonus Shares by capitalization of Reserves and 675024 (previous year 675024) Equity Shares of Rs.10/- each issued as fully paid-up pursuant to a contract without payment being received in cash]

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		13.650	13.650	13.700
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		652.258	616.071	402.900
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		665.908	629.721	416.600
LOAN FUNDS
1] Secured Loans		354.307	15.439	24.500
2] Unsecured Loans		47.301	47.301	42.300
TOTAL BORROWING		401.608	62.740	66.800
DEFERRED TAX LIABILITIES		4.856	5.859	0.000
TOTAL		1072.372	698.320	483.400
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		119.351	63.097	60.600
Capital work-in-progress		21.402	0.000	0.000
INVESTMENT		114.632	104.619	106.600
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	147.716	28.849	66.700
	Sundry Debtors	128.778	119.875	24.300
	Cash & Bank Balances	497.988	402.263	55.500
	Other Current Assets	12.688	4.881	0.000
	Loans & Advances	367.720	291.344	337.300
Total Current Assets		1154.890	847.212	483.800
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	214.521	215.268	81.800
	Provisions	123.382	101.340	85.800
Total Current Liabilities		337.903	316.608	167.600
Net Current Assets		816.987	530.604	316.200
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1072.372	698.320	483.400

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover and Other Income		1076.846	932.539	548.100
Total Income		1076.846	932.539	548.100
Profit/(Loss) Before Tax		60.113	51.559	30.700
Provision for Taxation		20.975	14.537	7.900
Profit/(Loss) After Tax		39.137	37.022	22.800
Imports :
	Raw Materials	2.641	13.015	NA
	Oil for Trading	244.102	347.623	NA
Total Imports		246.743	360.638	NA
Expenditures :
	Cost of Goods for resale	775.813	568.007	NA
	Cost of Raw and Packing Material Consumed	25.068	87.727	186.400
	Employees’ Remuneration and related benefits	50.425	55.871	NA
	Increase/(Decrease) in Finished Goods	6.619	15.125	19.300
	Operating & Other Charges	146.056	146.558	NA
	Interest	6.530	2.245	NA
	Depreciation & Amortization	6.222	5.447	5.300
	Other Expenditure	0.000	0.000	306.400
Total Expenditure		1016.733	880.980	517.400

SUMMARISED RESULTS

PARTICULARS	31.03.2008 (Full Year)
Sales Turnover	1745.200
Other Income	58.600
Total Income	1803.800
Total Expenditure	1711.100
Operating Profit	92.700
Interest	30.000
Gross Profit	62.700
Depreciation	10.000
Tax	11.700
Reported PAT	39.800
Dividend (%)	25.00

QUARTERLY RESULTS

PARTICULARS	30.06.2008 1^st Quarter
Sales Turnover	319.700
Other Income	10.600
Total Income	330.300
Total Expenditure	322.100
Operating Profit	8.200
Interest	5.300
Gross Profit	2.900
Depreciation	2.700
Tax	0.000
Reported PAT	0.100

KEY RATIOS

Year	31.03.2007	31.03.2006	31.03.2005
Debt-Equity Ratio	0.36	0.12	0.18
Long Term Debt-Equity Ratio	0.11	0.09	0.10
Current Ratio	2.02	2.53	2.55
TURNOVER RATIOS
Fixed Assets	7.54	9.19	5.38
Inventory	11.63	19.56	6.76
Debtors	8.26	12.96	15.46
Interest Cover Ratio	5.93	6.36	6.29
Operating Profit Margin(%)	7.67	7.13	7.96
Profit Before Interest And Tax Margin(%)	7.11	6.54	6.96
Cash Profit Margin(%)	4.47	4.55	5.35
Adjusted Net Profit Margin(%)	3.92	3.96	4.34
Return On Capital Employed(%)	8.29	10.39	7.63
Return On Net Worth(%)	6.20	7.07	5.60

LOCAL AGENCY FURTHER INFORMATION

DIRECTOR’S REPORT

Performance: 

The year 2006-07 has been very eventful both for the Indian Economy, and more importantly for the Company. With the GDP growth rate of more than 8% month-on-month, and with the Consumer Confidence index soaring, the Company has grown by a whopping 36% in the personal and Healthcare segments.

This has been achieved through both organic as well as inorganic growth in the categories that they operate. 

Sales of NIVEA Body Lotions continued to show very good growth whereas both the creams - the multi-purpose 'Blue' variant and the lighter soft 'White' variant also recorded good growth this year. Another category that has shown good growth over the previous year is the Deodorants category, facilitated by the launch of a new 'Aqua Coor variant with very good advertising support from their Principal Company - Nivea India Private Limited This category contributed an additional business to NIVEA. The Men's range growth was hampered due to non-availability of certain products due to the changeover to an improvised international formulation by their Principals, resulting in shortages and stock-outs. The competition for personal care products continues to get fiercer, but they have been able to face the same with competitive trade activities and adequately supported by above-the-line advertising. 

The Company continues to be haunted by the free availability of cheaper imported goods, which affects the sales of the NIVEA brands in main urban markets, especially in the traditional Dec and Creams category. 

During the year the sales of toothpaste for sensitive teeth and gum care continued to perform. The sales on the mouth rinse suffered because of no production due to technical reasons. The Management is confident of reviving this segment in the next year with focused promotions in areas with untapped potential.

The Management is pleased to announce, that during the Year; the Company Introduced the Baby care range of products under the 'MORISONS BABY DREAMS' umbrella brand; consisting of 5 main products viz., Baby Oil, Baby Bath, Baby Powder, Baby Soap and Nappy Cream. A few more products in the category are slated to be launched next year. The initial response from users of the-products is quite encouraging, however the environment is dominated by a well-entrenched international leading brands, and this category will require huge investment to promote the brand and lots of patience. The feeding bottles part of this category continues to grow. 

The Company has also entered into the fragrance market by launching its 'Morisons Cologne' in three variants i.e. Blue (For Men), Pink (For Women) and the Traditional Yellow. The initial response was very good and sales in the years to come will pickup.

The Company has also entered in Mans Range with 'Morisons JentleMen' Brand of products and initially launched Shaving brush in this category which is a huge success. Other Mens product will be launched under this Sub-brand in the years to come. 

The Company has now entered into an exclusive Distributor arrangement with Merisant India Private Limited, for an initial period of 5 years. Merisant India Private Limited is a subsidiary of Merisant Worldwide Inc. known for their range of low-calorie sugar substitutes under the brand names of 'EQUAL' and 'CANDEREL'. The Company has from 1st January 2007 started selling and distributing EQUAL' and topes to do well in a growing market valued at around Rs.1000 Millions. 

In the CARNATION Footcare category, the insoles and other heel pads have not performed well due to poor acceptance by the customers as it is a very niche category. The Company has therefore decided to concentrate on the Corn and Callous removing sub-category, which has shown good growth over the previous year. Tremendous potential exists in the Tier II towns which they have not so far tapped. The Com Removers category is dominated by too many unknown products from the unorganized sector and is sold at less than half the price of their products.

The other brand 'Snoreeze' of Passion for Life Healthcare Limited (UK) and their own brand 'Lignotox' of Oral care Segment continued to perform but there is a huge latent potential in these two brands.

The Company continues the oil trading business, which includes importing of Crude Palm Oil, Crude Degummed Soya bean Oil and other Crude and Refined Edible Oils and thereafter selling these Oils in the Indian Markets. During the year, turnover of oil trading business was Rs. 2508 Lacs. This Business has vast potentials of growth in India, due to emerging Crude and Refined Edible Oils markets in India in next few years. 

During the year 2006-07, the Company continued to manufacture products at Waluj, near Aurangabad for NIVEA. All these products are made to International Standards. 

Highlights:

 A) Due to installation of Automatic Filling, packaging and labelling machines and Commissioning of Centrally Air Condition Unit with AHU in the factory, the unit consumption has increased during the year. 

 B) Kept to Power generation stands reduced due to lesser dependency on the D.G. Set as normal Power supply was received from M.S.E.B. during the year.

Increase in the rate of diesel this year also Increase the cost per unit generated.

C. Increase in the production kept the LDO consumption higher side. 

Other Information:

Contingent Liabilities:

	As on 31.03.2007 [Rs. In Millions]
a) Corporate Guarantees given. - Leaders Healthcare Private Limited	13.802
- Bhivani Vanaspati Limited	2.300
b) Income Tax	8.016
C) Sales Tax matters in dispute (including interest wherever applicable) – net of payment	9.836
d) Claims against the company not acknowledged as debts	1.434

Fixed Assets:

• Land (Freehold)
• Land (Leasehold)
• Factory Building
• Office Premises and Residential Flats
• Plant Machinery and Equipments
• Office Equipment
• Furniture Fixture
• Computers
• Vehicles

WEBSITE DETAILS:

Vision
Making a positive difference in the lives of people through excellence in meeting their personal care and health care needs.

The Kaleidoscope of History

Subject was formed in 1920s as a trading outpost of J.L. Morison Son and Jones (UK) and incorporated in 1934. In its history of almost seven decades, it introduced and distributed in India brands of reputed companies, such as Sandoz, May and Baker, Nicholas, Aspro, Optrex, Scott and Turner, Beechams, Mead Johnsons, Down Brothers, Pearsalls Sutures, and Smith and Nephew. Beiersdorf AG Germany and Dr. Wild and Co. Limited. Switzerland. 

Today, subject is a part of the Rasoi Group, racing purposefully in the new millennium under the able guidance of its visionary Chairman Mr. R.N. Mody and the team of professionals. It has been growing consistently despite the increasingly difficult terrains of the market. Its annual turnover has crossed 12.5 million USD or Rs.500 million.

Global Partnerships 

Subject has partnerships with some of the world's finest and leading brands.

Principal	Brand	Segment
Dr. Wild and Co Limited, Basel, Switzerland	EMOFORM	Oral care
Cuxson Gerrard and Co. Limited, England	CARNATION	Foot care
Passion For Life Healthcare Limited, UK	SNOREEZE	Healthcare
Merisant Company, U S A	EQUAL Free-of-Sugar, Great taste	Low-cal Sweetener
Ward Group> Combe Pte Limited, Australia>USA	RESTORIA	Hair Colours
Grupo SOS  Spain	CARBONELL The World’s Favourties Olive Oil Brand From Spain Since 1866	Olive Oil
Hoyu Japan	BIGEN	Hair Colour

They also market Morisons* range of baby feeding bottles and nipples, the best in its category.

Value:

• Their biggest asset, that is their people for their commitment, innovation and dedication to maintain the highest standards of ethics and delivery to keep their principals and customers extremely satisfied.
• Service to their trade partners and consumers and their relationship with them.
• Commitment to their principals, who are their business partners, having entrusted their brands to them for the Indian market. 
• The dynamism and adaptability in the market in their management and decision making process. 
• Continuous up-gradation in quality paradigms of products and services.

MARKETING, DISTRIBUTION and SALES

Distribution Network

	All India	West	East	North	South
	Total	Mumbai	Kolkata	Delhi	Chennai
Distributors	1170	265	280	310	315
	715	185	175	175	185
Stores covered	199120	56400	43820	60300	38600
( JLM Direct + Distributor)

Distribution Reach

• Total Indian population 1027 million
• Total Urban population 250 million
• No. of Class I+ Towns 361 (Population more than 100,000)
• Total population in Class I Towns 185 million
• Direct coverage by JLM 85 % of Class I (74 % of total Urban Population)
• Total Outlets in Class I + Towns   500,000 retail outlets
• Direct JLM Coverage 200,000 retail outlets

Sales Team

	All India	West	East	North	South
BMs		Mumbai	Kolkata	Delhi	Chennai
ASMs (Consumer) AFMs (Healthcare) BDMs/ KAMs (Modern)	30 12 15	9 3 3	7 2 3	7 4 3	7 3 6
SOs (Consumer) PSRs (Healthcare)	216 70	60 15	48 17	62 24	46 14
TOTAL	343	90	77	100	76

MANUFACTURING

State of the art factory set up to international standards, for manufacturing quality products, located at Waluj –Aurangabad, an industrial area conveniently close to Mumbai.

ISO 9001 : 2000 Certified

TECHNOLOGY CENTRE

Qualified team of technologists and scientists endeavoring to adapt formulations, develop new products and packaging.

Well equipped laboratory to control and meet the international quality standards of their products.

Demonstrated ability to develop new products of local relevance.

Ability to source and analyse materials from Countries across the Globe.

Manufacturing

A progressive approach towards creation :

State of the art factory set up to international standards, for manufacturing quality products, located at Waluj-Aurangabad, an industrial area conveniently close to Mumbai. The factory has state of the art imported machinery and high GMP standards maintained by experienced and qualified production management team and scientists.

The purchase and commercial functions have a proven track record to source global and local suppliers for highest quality raw materials to meet their Principals standards.

A dedicated network of satellite manufacturing supply units adhering strictly to their stringent quality parameters and delivery schedules.

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 records 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.44.89
UK Pound	1	Rs.78.86
Euro	1	Rs.63.33

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--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		75

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