MIRA INFORM REPORT

Report Date :

15^TH June 2006

IDENTIFICATION DETAILS

Name :	BENNETT COLEMAN & COMPANY LIMITED
Registered Office :	The Times of India Building, Dr. Dadabhoy Naoroji Road, Mumbai 400 001, Maharashtra, India.
Country :	India
Financials (as on) :	31.07.2005
Date of Incorporation :	29.11.1913
Com. Reg. No.:	11-391
CIN No.: [Company Identification No.]	U22120MH1913PLC000391
TAN No.: [Tax Deduction & Collection Account No.]	MUMB11162E
Legal Form :	Closely held public limited liability company
Line of Business :	Printing and Publishing of newspapers and periodicals and also in carrying on the business of Investment and Lending.

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 95000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is one of the oldest and highly respected Publishing Houses in the country. Available information indicates very high financial responsibility of the company and its management. Their trade relations are fair. Fundamentals are very strong. The company is faring exceedingly well, as gathered from the management during a recent meeting with them. Their payments are always correct and as per commitments. The company can be considered good for normal business dealing at usual trade terms and conditions.

LOCATIONS

Registered Office :	The Times of India Building, Dr. Dadabhoy Naoroji Road, Mumbai 400 001, Maharashtra, India.
Tel. No.:	91-22-22731271/ 22620271 / 56353535
Fax No.:	91-22-22731482/ 22620144/ 22620401 / 22731737
E-Mail :	toieditorial@bcclm.toi.co.in
Website :	http://www.timesofindia.indiatimes.com
Printing Press :	Times of India Suburban Press, Western Express Highway, Kandivli (West), Mumbai – 400 101, Maharashtra
Sales Office :	v 13/1 Government Place East, Kolkata – 700 069, West Bengal v Lucknow, Uttar Pradesh v Kanpur, Uttar Rradesh v Meerut, Uttar Pradesh v Chandigarh v Bhopal, Madhya Pradesh v Baroda, Gujarat v Rajkot, Gujarat v Bhubaneshwar, Orissa v Guwahati, Assam v Nagpur, Maharashtra v Goa v Kochi, Kerala
Overseas Office :	v P. B. No. 576, Glucester GL2 6DS, U.K.
Branches :	Located at: - v “Times House”, 7 Bahadurshah Zafar Marg, New Delhi – 110 002 v 139 Ashram Road, Ahmedabad – 380 009, Gujarat v 105/7-A, S. N. Banerjee Road, Kolkata – 700 014, West Bengal v 88, M. G. Road, S & B Towers, Bangalore – 560 001, Karnataka v 8-9 Anupam Chambers, Tank Road, Jaipur – 302 201, Rajasthan v “Times House”, Fraser Road, Patna – 800 001, Bihar v “Ganga Griha”, 3^rd Floor, 6-D Nungambakkam High Road, Chennai – 600 034, Tamilnadu v 407-1 Tirath Bhavan, Nanapeth, Quartergate, Pune – 411 002, Maharashtra v 1-10-72/A2, Begumpet, Hyderabad – 500 016, Andhra Pradesh

DIRECTORS

Name :	Mrs. Indu Jain
Designation :	Chairperson
Address :	4 Tilak Marg, New Delhi - 110002
Date of Birth/Age :	08/09/1936
Date of Joining :	13/05/1999
Name :	Mr. Samir Jain
Designation :	Vice-Chairman & Managing Director
Address :	15, Moti Lal Behru Marg, New Delhi - 110011
Date of Birth/Age :	22.06.1954
Qualification :	B.A.
Date of Joining :	01/02/1985
Name :	Mr. Vineet Jain
Designation :	Managing Director
Address :	15, Moti Lal Behru Marg, New Delhi - 110011
Date of Birth/Age :	12.02.1966
Qualification :	MBA (Marketing)
Experience :	16 years
Date of Joining :	27.06.1993
Name :	Mr. Narendra Kumar
Designation :	Director
Address :	One – Crooked Lane, Kolkata – 700069, West Bengal
Date of Birth/Age :	08.05.1935
Date of Joining :	12.09.1964
Name :	Dr. Ram S. Tarneja
Designation :	Director
Address :	4 – Pashmina, 33-A, Pedder Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	07/12/1931
Date of Joining :	01/05/1981
Name :	Mr. Pradeep Guha
Designation :	President
Date of Birth/Age :	53 years
Qualification :	B A
Experience :	30 years
Date of Joining :	20.12.1976
Name :	Mr. Arun Arora
Designation :	President
Address :	34, Somerset Place, 61-D, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India
Qualification :	B.Sc. (Engg.)
Date of Birth/Age :	08/08/1945
Date of Joining :	23/07/1996
Name :	Mr. P. M. Rao
Designation :	Company Secretary
Name :	Mr. Ravindra Dhariwal
Designation :	Director
Address :	Aashray Farm, Khasra No. 1523, Asola Village, New Delhi – 110030, Delhi
Date of Birth/Age :	11/09/1952
Date of Joining :	01/01/2002
Name :	Richard Blaise Saldanha
Designation :	Director
Address :	C-309, Defence Colony, New Delhi – 110024, Delhi
Date of Birth/Age :	03/02/1944
Date of Joining :	01/06/2002
Name :	Mr. Vijay Gopal Jindal
Designation :	Director
Address :	B-87, Greater kailash Part – I, New Delhi – 110048
Date of Birth/Age :	08/03/1957
Date of Joining :	05/12/2002
Name :	Mr. Ram Krishna Lakshman
Designation :	Director
Address :	Flat No. 2, Sterling Heights, La Citadel, Doana Poula, Goa – 403004
Date of Birth/Age :	24/07/1932
Date of Joining :	29/03/2005
Name :	Mr. Satish Kumar Mehta
Designation :	Director
Address :	A-93, Neeti Bagh, Delhi – 110049
Date of Birth/Age :	02/02/1933
Date of Joining :	29/03/2005
Name :	Mr. Padmakar Manjunath Rao
Designation :	Director
Address :	702-Vasundhara, Janki Kutir, Juhu, Mumbai 400049, Maharashtra, India
Date of Birth/Age :	23/05/1953
Date of Joining :	02/06/1997

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Sanmati Properties Limited	3109000
Bharat Nidhi Limited	7782400
PNB Finance and Industries Limited	2962872
Mr. Vineet Jain	182472
Mr. Samir Jain	800
Mera Jain	104800
CAMAC Commercial Company Limited	4240172
Arth Udyog Limited	2968872
Punjab Properties Limited	2848000
T M Investments Limited	1899224
Ashok Viniyoga Limited	5745324
Trishla Jain	40000

BUSINESS DETAILS

Line of Business :	Printing and Publishing of newspapers and periodicals and also in carrying on the business of Investment and Lending.
Product :	Print Media Electronic Media Investment and lending

GENERAL INFORMATION

No. of Employees :	Several 1000
Bankers :	v United Bank of India, Mumbai v HDFC Bank Limited, Mumbai v Bank of India, Mumbai v Bank of Baroda, Mumbai v Punjab National Bank, Mumbai v Indian Bank, Mumbai v Deutsche Bank, Mumbai v Standard Chartered Grindlays Bank, Mumbai v Standard Chartered Bank, Mumbai v BNP Paribas, Mumbai v Banque Nationale De Paris v Citibank NA, Mumbai v HSBC
Banking Relations :	Good
Auditors :	Lodha & Company Chartered Accountants
Subsidiaries :	v Dharmayug Investments Limited v Vardhman Publishers Limited v Satyam Properties & Finance Limited v Rajdhani Printers Limited v Times Guaranty Limited v Sushena Investments Limited v Kaladi Investments Limited v Surge Enterprises Limited v Banhem Financial & Investment Consultants Private Limited v Asha Properties Limited v Rishi Properties Limited v Chiranji Properties Limited v Aravalli Properties Limited v Bennett Securities Limited v Times Internet Limited v 21^st Century Constructions Private Limited v Entertainment Network (India) Limited v Times Online Money Limited v Times Infotainment India Limited v Fabwoman.Com Infotech Private Limited v Brand Qulver Limited (formerly Brand Dot Com Limited) v Digital World v Netcarrots.com Private Limited v Times Guaranty Limited v Optimal Global Brodcasting company limited (Formerly Times Television Limited) v Optimal Media Solutions Private Limited (Formerly Fabwoman.com Infotech Private Limited)
Associates :	Netcarrots.com Private limited
Joint Venture :	Worldwide Media Limited (Formerly Magz International Limited)

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
50,000,000	Ordinary Shares	Rs.10/- each	Rs.500.000 millions
1,500,000	Unclassified Shares	Rs.100/- each	Rs.150.000 millions
			Rs.650.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
31,880,000	Equity Shares	Rs. 10/-- each	Rs.318.800 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.07.2005	31.07.2004	31.07.2003
SHAREHOLDERS FUNDS
1] Share Capital		318.839	318.839	318.800
3] Reserves & Surplus		23799.333	18244.348	13122.200
NETWORTH		24118.172	18563.187	13441.000
LOAN FUNDS
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		335.253	408.899
TOTAL		24453.425	18972.086	13441.000
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4411.249	3713.449	4269.700
Capital work-in-progress		2856.943	609.370	0.000
INVESTMENT		14689.947	12994.203	8614.700
DEFERREX TAX ASSETS
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3213.787	2131.095	1681.900
	Sundry Debtors	965.090	579.881	629.400
	Cash & Bank Balances	808.619	700.754	773.300
	Other Current Assets	15.556	9.024
	Loans & Advances	1676.030	1005.030	648.600
Total Current Assets		6679.082	4425.784	3733.200
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	4032.799	2639.716	2208.300
	Provisions	150.997	131.004	968.300
Total Current Liabilities		4183.796	2770.720	3176.600
Net Current Assets		2495.286	1655.064	556.600
TOTAL		24453.425	18972.086	13441.000

PROFIT & LOSS ACCOUNT

PARTICULARS	31.07.2005	31.07.2004	31.07.2003
Sales Turnover [including other income]	23634.839	19819.769	15523.000
Profit/(Loss) Before Tax	7641.630	6923.619	4382.600
Provision for Taxation	2343.454	1831.836	1294.900
Profit/(Loss) After Tax	5298.176	5091.783	3087.700
Export Value	6545.850	3798.139	NA
Import Value	390.424	332.324	NA
Total Expenditure	15993.209	12896.150	11140.400

KEY RATIOS

PARTICULARS		31.07.2005	31.07.2004	31.07.2003
PAT / Total Income	(%)	22.42	25.69	19.89
Net Profit Margin (PBT/Sales)	(%)	32.33	34.93	28.23
Return on Total Assets (PBT/Total Assets}	(%)	68.90	85.06	54.76
Return on Investment (ROI) (PBT/Networth)		0.32	0.37	0.33
Debt Equity Ratio (Total Liability/Networth)		0.17	0.15	0.24
Current Ratio (Current Asset/Current Liability)		1.60	1.60	11.88

LOCAL AGENCY FURTHER INFORMATION

FIXED ASSETS

Ø Land (Leased and Freehold)

Ø Land and Building (Leased and Freehold)

Ø Building

Ø Plant and machinery

Ø Furniture and Fixture And Office equipments

Ø Vehicles

Ø Drawing and Business commercial rights

HISTORY

Subject was incorporated on 29^th November, 1913 at Mumbai in Maharashtra having Company Registration Number 391.

The first edition of The Bombay Times and Journal of Commerce, later to be called The Times of India, was launched in Mumbai in 1838. After several years of change, evolution and growth in the paper’s character, the company, the proprietors of the Times of India Group, was established with the principal objective of publishing newspapers, journals, magazines and books.

Today, the company is India’s largest media house. The Times Group is a multi-edition, multi-product, multi-media organisation, and has to its credit several leading publications. Among the publications are The Times of India, The Economic Times, Navbharat Times, Maharashtra Times, Femina and Filmfare. The Group also has interests in the entertainment and media industry in the form of Radio Mirchi, Planet Mall, Times Music and Times Multimedia.

In April 2000, Times Internet Limited, a wholly owned subsidiary of the company, was floated to handle the Group’s internet properties. Times Internet Limited’s mother brand is Indiatimes.

The Times of India

The Times of India is the flagship brand of the Group. It is India’s premier English daily and world’s largest circulated English broadsheet daily. It is published from ten cities across India, has a circulation of over 21,44,842 copies and is read by over 4.42 millions people.

The Economic Times

The Economic Times, started in 1961, is India’s largest and among the world’s top three English business dailies. The Economic Times is published simultaneously from seven cities across India, has a circulation of 4,00,000 copies, and is ready by over 1 million people every day.

Navbharat Times

Navbharat Times, launched in 1950, is a widely read and influential Hindi daily. It is published from Delhi and Mumbai, and has a combined circulation of over 4,30,000 copies and a readership of over 1.7 million.

Maharashtra Times

Maharashtra Times is a Marathi Newspaper published from Mumbai. It has a circulation of over 2,00,000 copies, and a readership of over million.

Filmfare

Filmfare has involved as an entertainment medium in itself. The monthly magazine covers the gamut of happenings in show biz., including movies, music and television. Gossip, intervies, previews, reviews, profiles – its’ all there. The magazine also sponsors the annual Filmfare awards for excellence in Indian cinema.

Femina

The No. 1 women’s magazine in India, Femina caters to the woman of substance. Femina also organises and sponsors the Miss India pageant annually. The winners of these contests represent India in the Miss Universe. Miss World and Miss Asia – Pacific Contests.

Indiatimes

Indiatimes.com is India’s online nerve centre for new, information, entertainment, cricket, shopping services and much more. The USP is content, commerce and community. And with over a billion page views a month, they are simply Number 1. Indiatimes has a host of firsts to its credits. Among them 8888: The SMS service was launched in 2002 with 1.1 million users a day. It has since grown steadily by over 20% each month.

It publishes and distributes The Times of India and The Sunday Times of India, in addition to the magazines like Femina and Filmfare. It thrives in the face of stiff competition from The Statesman, The Telegraph, The Hindustan Times and The Hindu. It is the paper of the Bombay region, and its slogan is ’’Win With The Times’’.

Subject is the proprietor of “The Times of India” Group of Publications. It has been in the publishing business for over 150 years and has come to acquire a reputation reporting credible, analysed and unbiased news. The flagship daily of the company “The Times of India” has been recognised by BBC as one of the six most influential dailies in the world. The other well-known publications of the group are “The Economic Times”, “Femina” and “Filmfare”.

It is also publishes from New Delhi.

Mr. Dileep Padagaonkar, is now the Executive Editor. It has certain special features. The front page left hand column gives the News Digest, which tells the reader at a glance about the important news of the day. In the same column there is Cartoon by Laxman, And below it is the weather for the day. Then there is the Indiatimes.com POLL. Below the masthead, there are highlights under International, India and Times Sport. Its Television listings are fairly elaborate. It has different pages - National, Local, International and so on. It publishes ’Business Pages’. Its edit page, containing perceptive editorials has a main article and a feature called ’The Speaking Tree’ in the spiritual vein. It is liberal in publishing full-page ads, which are revenue earning.

Generic Names of Principal products / Services of the Company are:

v Print Media

v Electronic Media

v Investment and Lending

The company's fixed assets of important value include Land, Leasehold Land & Buildings, Buildings, Plant and Machinery, Vehicles, Furniture, Fixtures and Office Equipments

Press Release

Times group acquires 4.98% in Pantaloon

Our Corporate Bureau

7 January 2005

Mumbai: Pantaloon Retail India has sold a 4.98 per cent (953,000 shares) of its stake preferentially to Bennett, Coleman and Company (BCCL) for Rs70 crore.

Kishore Biyani, managing director, Pantaloon Retail India, said the deal was just a financing arrangement, and Pantaloon had no plans to link itself with BCCL. "This thing never crossed my mind when we struck the deal with BCCL," Biyani said.

"Our retail chain is on an expansion spree. We decided to opt for this route to meet our fund requirements," said Biyani.

After this preferential placement, the promoters' stake in Pantaloon Retail will be down by a percentage point from 39 per cent currently.

The company plans to add more than 1.5-million sq ft of retail space over the next 18 months with a capital expenditure of around Rs150 crore.

In a notice to the stock exchanges, Pantaloon said the shares had been placed at a premium of Rs724.02 per share.

Pantaloon will also be issuing 408,000 warrants worth Rs30 crore to promoters and their associates. These warrants will give an option to the warrant holder to acquire one fully paid-up equity share of Rs10 each for cash at a premium of Rs725 per share for every warrant within a period of 18 months.

MARKETING 

Sales

During the year 2004-05 the flagship brand, the Times of India scaled new heights.

The swells in circulation on Wednesdays, attributable to its supplement Ascent, took its sales past the 3 millions mark on Wednesday the 21^st July 2004 for the first time ever, tims was repeated on several Wednesdays during the year under review.

The publication achieved an overall growth of 6.8 % during the period review with the Kolkata and the Hyderabad editions achieving growth rates of 22 % and 30 % respectively, enabled by the aggressive promotional efforts.

The average daily net sales of the Times of India during the year 2004-05 were 2.823 millions copies as against 2.643 millions copies in the corresponding period of the previous year.

During the year under review, new editions ware lynched at Mangalore and Mysore in the South and Kanpur and Chandigarh in the North.

The publication also achieved the unique status of becoming the World’s largest selling English Board sheet daily with more than .2400 millions copies nationally every day. Moving ahead of giants like USA today.

The average net sales of The Economic Times showed a modest growth of 4.6 % over the previous year with average daily net sales at 58.800 millions copies in 2004-05 as against 0.562 millions copies in the previous year, the current year the economics times added a new editions at Chandigarh.

Navbhrat Times showed a dip in sales by 6.2 % attributed to the discontinuance of the upcountry edition form Delhi.

On 30^th May 2005 the Mumbai Mirror was launched in Mumbai the first ever offering of the compact format of a morning daily in English, the launch was a grand success with about 0.160 millions copies being sold the very first day.

Currently Mumbai Mirror is offered complimentary with the TO in Mumbai City, Resultantly over 0.5 millions copies of Mumbai Mirror are bring currently. The mommoth task of printing logistics and distribution of the Mumbai Mirror was achieved smoothly and without any increase in manpower. This must tank as one of biggest newspaper launches ever.

Newsprint

Global Newsprint Demand Supply balance remained very narrow. With significant capacity downtime and self disciplining undertaken by the North America major in light of the declining consumption from publishers. Prices increased every quarter. The overall increase form July 04 was 9 % with publishers resisting every escalation US$ declined future vis-à-vis the Indian Rs. by 6 % through the year.

The next 12 month are likely to be very challenging both from the availability as well as price angle. Prices are expected to peal father thorough the year with worsening conditions of suppliers. The major suppliers continue to report losses, despite the prevailing high prices due to increased input costs and hence are either shutting capacity or moving to value added products.

Consumption :

The consumption recorded a 12 % increase for all publications combined within August 04 to July 05. Planned growth for 2005-06 will pose far higher challenges as overall scarcity in availability of Newsprint expected in the next year.

Value addition

Strategic focus to the newsprint sourcing in maintaining the frontloaded inventories and better geographic diversification of sources helped in sharp negotiations on the prices. Further improvement in contractual were negotiated to build advantages position vis-a-vis competition.

Times Music

The division continued to show growth in revenue and profit in a shrinking market. royalty revenue both Indian and international showed strong growth. A notable feature of the year was the strong in the international music genre.

Times Retail

On the strength of robust sales growth from existing stores and continued rapid addition of new stress the division has show good revenue performance and has reported a position bottom line. Planet M crossed the 100 store mark in the year and added 40 new locations. The chain is now 114 stores across 26 cities. It has achieved leadership status in the music and home entertainment business in the country.

Times Multimedia

Curriculum based products showed stable performance and the division expanded its range of learning based products.

Television

Zoom is the first channel form BCCL stable and was commercially launched on September, 20, 2004. Zoom is India first nonfiction Glamour and Lifestyle channel that the ultimate source for celebrities Hollywood glamour and high lifestyle.

The channel has been able to gamer 9 awards in its first few months of operations. The month of July 2005 Zoom has a reach of 43 % and connectivity pagged at over 70 %. The channel has roped in over 120 advertisers for AD and event sponsorship. Further the channel is being distributed nor only in India but also in international territories like YSA, Canada amongst other.

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.45.92
UK Pound	1	Rs.85.11
Euro	1	Rs.58.08

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--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	NO
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		79

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		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/normal.	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

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