MIRA INFORM REPORT

Report Date :

15^th June 2006

IDENTIFICATION DETAILS

Name :	HEUBACH COLOUR PRIVATE LIMITED
Registered Office :	Plot No. 9002-9010, Phase VI, GIDC, Ankleshwar – 393 002, District Bharuch, Gujarat, India
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	28.03.1993
Com. Reg. No.:	04-74184
CIN No.: [Company Identification No.]	U24110GJ1997PTC033372
TAN No.: [Tax Deduction & Collection Account No.]	BRDH00520C
PAN No.: [Permanent Account No.]	AAACH2578
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturing of Organic Pigments for Paint, Printing Ink, Plastic and Textile Industry.

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 4000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. It is a 100% export oriented unit. Available information indicates high financial responsibility of the company. Financial position is good. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings.

LOCATIONS

Registered Office :	Plot No. 9002-9010, Phase VI, GIDC, Ankleshwar – 393 002, District Bharuch, Gujarat, India
Tel. No.:	91-2646-250363/252160/252280/251623/ 252160/251263 / 252289
Fax No.:	91-2646-250343 / 250353
E-Mail :	1. heubacha@sril.in 2. ankplant@heaubach-India.com 3. sales@heubachcolor.com
Area :	99,053.40 sq.mtrs.
Factory 1 :	Plot No. 9001-9010, Phase VI, GIDC, Ankleshwar – 393 002, Gujarat, India
Tel. No.:	91-2646-50363 / 51623 / 52160
Fax No.:	91-2646-50353 / 50343
Branches :	Located at : Ø Landmark Building, 2^nd Floor, Race Course Circle, Gotri Road, Baroda 390 007, Gujarat Tel. No. 91-265-2330 134/2343310 Fax No. 91-265-300 137 / 2341682 E-mail :- baroda@heaubach-India.com / heubachB@sprintrpg.net.in / baba@heubach-India.com Web site :- http://www.heaubach-India.com Ø 22, Ajay Shopping Center, T. H. Kataria Marg, Matunga (West), Mumbai –400016, Maharashtra Tel. No. 91-22-24310933/243109934 Fax No :- 91-22-24372679/24308836 E-mail :- 1. mumbai@heubach-india.com 2. kiron@bom5.vsnl.net.in Ø 11, Meckoni House, 369, Bhandarkar Road, Matunga (Central Railway), Mumbai – 400 019, Maharashtra Ø ‘Land Mark’, 2^nd Floor, Gotri Road, Race Course Circle, Baroda – 390 007, Gujarat Tel. 91-265-2314860/2341651/2330134/2343310 Fax. 91-265-2341682/2354827/2300137 E-mail. 1. baroda@heaubach-india.com 2. heubachB@sprintrpg.net.in Website. http://www.heaubach-india.com

DIRECTORS

Name :	Mr. Kiron Dhirajlal Shah
Designation :	Whole Time Director
Address :	279/25, Shantikunj, Road No. 31, Sion (East), Mumbai – 400 022, Maharashtra
Date of Birth/Age :	26.11.1962
Date of Appointment :	09.10.1993
Name :	Mr. Ravi Brijmohan Kapoor
Designation :	Chairman and Managing Director
Address :	1/99, Radha Sadan, Ambedkar Road, Opposite Sion Hospital, Mumbai – 400 022, Maharashtra
Date of Birth/Age :	07.02.1961
Date of Appointment :	13.05.1995
Name :	Mr. Ashok G. Chitre
Designation :	Director
Address :	H 9/10 Indra Prastha Society, Amar Complex, New Sama Road, Baroda – 390 008, Gujarat
Date of Birth/Age :	13.01.1945
Date of Appointment :	03.03.1997

KEY EXECUTIVES

Name :	Ms. Ketki B. Shah
Designation :	Company Secretary
Address :	L-18/210, Vijay Nagar, Harni Road, Baroda – 390 006, Gujarat
Date of Appointment :	01.02.2003

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. Ravi B. Kapoor	100
H. P. Colour Cyprus Limited Add: 10, Mnasidog Street, Elna House, Nigeosia, Cyprus	788,147
Total	788,247

BUSINESS DETAILS

Line of Business :

Manufacturing of Organic Pigments for Paint, Printing Ink, Plastic and Textile Industry.

Products :

Item Code No. (ITC Code)	Product Description
320417	CPC Green
320417	CPC Blue

Exports to :

Europe and U.S.A.

Terms :

Selling :

L/C

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
CPC Green	MT	3,000	2280	2094968
CPC Blue	MT	3,000	2280	2615384
Aluminium Hydroxide	MT	NA	3,000	1400998
Disperson	MT	NA	960	77470

GENERAL INFORMATION

Suppliers :

Ø Aakar Scientific Instruments Private Limited

Ø Austin Curcuits Limited

Ø Buch Plastics and Packaging Private Limited

Ø Narmada Machinery Works

Ø Industrial Lining (Baroda) Private Limited

Ø Industrial Rubber Industries

Ø Jalaram Box Makers Private Limited

Ø Hindustan Acid Agency

Ø Alpha Projects Services Private Limited

Ø Cybernetic Technologies Private Limited

Ø Eviron Engineering Company

Ø Inter Plastica Private Limited

Ø Inwac Metals & Chemicals Private Limited

Ø Klixon Engineering

Ø Mass Sealing Systems Private Limited

Ø Moktali Engineering Company

Ø Otto Valves & Rubber Industries

Ø Patakar Extrusions Limited

Ø Safety Services

Ø S. M. Engineers

Ø Shivani Enterprises

Ø Shree Surya Timber Mart

Ø Sneha Insulations

Ø Stoplik Services India Private Limited

Ø Super Mechanical Seal Private Limited

Ø UNP Polywalves India Private Limited

Ø Welkin Engineering Company

No. of Employees :

70

Bankers :

Ø IDBI Bank Limited

‘Concord’, R. C. Dutt Road, Alkapuri,

Baroda – 390 007, Gujarat

Ø ABN Amro Bank

Alkapuri Branch, R. C. Dutt Road,

Baroda - 390 007, Gujarat

Ø ICICI Bank Limited

‘Land Mark’, Race Course Circle, Baroda, Gujarat

Facilities :

Secured Loan	(Rs in millions)
From bank (Secured by land, Building, Plant and Machinery and hypothecation of present and future inventories and book debts)	6.107

Banking Relations :	Good
Auditors :	Lovelock & Lewes Chartered Accountants Mumbai, Maharashtra
Associates/Subsidiaries :	Hans Heubach GmbH
Holding Company :	Ø H. P. Colour Cyprus Limited. Cyprus 10, Mnasidog Street, Elna House, Nigeosia, Cyprus

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity shares	Rs. 100 each	Rs. 100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
788247	Equity shares	Rs. 100 each	Rs. 78.825 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		78.825	78.825	78.825
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1037.903	962.298	845.533
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1116.728	1041.123	924.358
LOAN FUNDS
1] Secured Loans		6.107	9.513	71.975
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		6.107	9.513	71.975
DEFERRED TAX LIABILITIES		81.614	94.323	89.985
TOTAL		1204.449	1144.959	1086.318
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		619.972	652.887	704.434
Capital work-in-progress		70.259	67.906	41.702
INVESTMENT		17.656	136.513	4.297
DEFERREX TAX ASSETS		0.000	2.435	0.160
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	438.014	321.003	317.461
	Sundry Debtors	117.180	45.925	35.022
	Cash & Bank Balances	8.734	9.274	61.855
	Other Current Assets	0.100	0.009	0.077
	Loans & Advances	66.375	53.968	42.250
Total Current Assets		630.403	430.179	456.665
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	130.232	142.015	116.440
	Provisions	3.609	2.946	4.500
Total Current Liabilities		133.841	144.961	120.940
Net Current Assets		496.562	285.218	335.725
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1204.449	1144.959	1086.318

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	1239.396	1163.019	1136.857
Profit/(Loss) Before Tax	104.188	123.428	194.035
Provision for Taxation	28.583	6.663	4.490
Profit/(Loss) After Tax	75.605	116.765	189.545
Export Value	1128.851	1072.564	1086.041
Import Value	350.604	271.151	258.868
Total Expenditure	1135.208	1039.591	942.822

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004	31.03.2003
PAT / Total Income	(%)	6.100	10.04	16.67
Net Profit Margin (PBT/Sales)	(%)	8.41	10.61	17.07
Return on Total Assets (PBT/Total Assets}	(%)	8.33	13.16	18.65
Return on Investment (ROI) (PBT/Networth)		0.09	0.12	0.21
Debt Equity Ratio (Total Liability/Networth)		0.13	0.15	0.21
Current Ratio (Current Asset/Current Liability)		4.71	2.97	3.78

LOCAL AGENCY FURTHER INFORMATION

FIXED ASSETS

Ø Leasehold land

Ø Building

Ø Plant and Machinery

Ø Vehicles

Ø Laboratory Equipments

Ø Computer

Ø Furniture and Fixture

Ø Office Equipments

Ø GIDC Pipeline Development

HISTORY

Subject was originally incorporated on 28^th March, 1993 at Mumbai in Maharashtra having Company Registration Number 74184.

Subject shifted its Registered Office from Mumbai to Gujarat with effect from 2^nd December, 1997 and a new Company Registration Number 33372 of Gujarat ROC was obtained.

It was later converted into a private limited liability company in the year 2001.

Subject is engaged in manufacturing of Organic Pigments for Paint, Printing Ink, Plastic and Textile Industry.

Subject is a 100% Export Oriented Unit.

Subject was incorporated in collaboration with Colour Limited, Cyprus in 1996-97, H.P. Colour Cyprus Limited-A 100% Subsidiary of Colour Limited bought back the Entire Shares from Colour Limited and thus subject become a wholly owned subsidiary of H.P. Colour Cyprus Limited.

Press Releases

March 27, 2001

Heubach Colour to invest $20 million to expand capacity. Heubach Colour plans to invest $20 million to expand the capacity of its organic pigment manufacturing facility at Ankleshwar from the present 4,000 tonnes per annum to 8,000 tonnes per annum.

Subject operates from caption leased office cum factory premises of area admeasuring 99,053.40 sq.mtrs.

Parent Company :

Heubach, Dr. Hans Gmbh & Company KG

Year in Retrospect :

The Sales and other income for the financial year under review were Rs. 1239.396 millions against Rs. 1163.019 millions for the previous period. Net Profit for the financial year under review was Rs. 75.605 millions against Rs. 116.765 millions for the previous period.

Drop in Profit can be attributed to increase in material cost, manufacturing expenses and taxation.

Name of the company

HEUBACH COLOUR PRIVATE LIMITED

Presented By

Group Capt. Shri A G Chitre, Director

1) Date and description of instrument creating the change

Credit Facility Agreement and Deeds hypothecation dated 15^th April, 1998

2) Amount secured by the charge/amount owing on the securities of charge

Export packing credit	Rs. 60.000 millions
Letter of Credit	Rs. 25.000 millions
Total	Rs. 85.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Exclusive charge ranking pari passu to the charge created / to be created in favour of Deutsche Bank of Mumbai by way of hypothecation the company entire stock of raw material, semi-finished goods consumable stores and such other movable including book debts outstanding monies, receivable both present and future of such from satisfactory to the Bank

Charges in favour of the bank of all the company movable properties both present nad future situated in the company premises at 9003-9010, Phase IV, GIDC Ankleshwar being a first charge ranking pari Passu to the charge crated to the be in favour of Deutche Bank AG, Mumbai in favour of Bank.

4) Gist of the terms and conditions and extent and operation of the charge.

Interest :

Upto 180 days – 12 %

Beyond 180 days upto 270 days – 17 %

Beyond 270 days upto 360 days – ICICI Bank rate + 2 %

Commission and usuance charge on Inland letters of credit as under

Commitment charges : 0.20 % for every quarter or part thereof

Usuance charges

LCs upto 10 days sight – 0.20% of the LC Value.

LCs over 10 days and upto 3 months sight – 0.40 % of the LC Value

5) Name and Address and description of the person entitled to the charge.

ICICI Bank Limited

Land Mark, Race Course Circle, Baroda

6) Date and brief description of instrument modifying the charge

ICICI Bank Letter dated 01.12.2004

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

The composition of existing limit of Rs. 125.000 millions revised as under :

Facility	(Rs in millions)
Fund Based
Export Packing Credit	100.000
FBP/FBD	(100.000)
PCFC	(100.000)
Cash Credit	25.000
Sub Total	100.000
Non Fund Based
Letter of Credit	25.000
Bank Guarantee	(25.000)
Sub Total	25.000
Total	125.000

Name of the company

HEUBACH COLOUR PRIVATE LIMITED

Presented By

Group Capt. Shri A G Chitre, Director

1) Date and description of instrument creating the change

Agreement of hypothecation of goods and assets dated March 7, 2003

Facilities agreement dated March 7, 2003

Sanction letter dated 16^th April 2002

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 50.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

First charges over all present and future goods, Book debts and all other movable assets of the company including but nor limited to documents of title to the goods, outstanding money receivable including receivables by way of cash assistance and cash incentive under the cash incentive claims by way of refund customs exices duties under the Duty drawn limit scheme or any other scheme documents, contracts, insurance policies, guarantees engagements securities investments and right nad the present machinery listed in the scheme and all future machinery belonging to or in the possession of or under the control of the company whether lying stored nad kept nad whether in possession of the company or of the bank or of any third party whether in India or elsewhere throughout the world (including all such goods, other movable assets as may be in course of shipments transit or delivery. )

4) Gist of the terms and conditions and extent and operation of the charge.

Funded Export packing credit of Rs, 50.000 millions Rate of Interest : @ 9.50 % p.a. Margin and Tenor and Repayment Dates : 12 months repayable on demand	Rs. 50.000 millions
Sub Limited Foreign Bills discounting / Purchase of Rs. 20.000 milions Rate of Interest : @ 9.50 % p.a. Margin and Tenor and Repayment Dates : 12 months repayable on demand Tenor of Bills of Exchange : 90 days	(Rs. 20.000 millions)
Non Funded Letter of credit of Rs. 10.000 millions Rate of Interest : Nil Margin and Tenor and Repayment Dates : 12 months repayable on demand Tenor of Bills of Exchange : 90 days	(Rs. 10.000 millions)
Total Facilities Sanctioned	Rs. 50.000 millions

5) Name and Address and description of the person entitled to the charge.

IDBI Bank Limited

Concorde R C Dutt Road, Alkapuri, baroda – 390007

6) Date and brief description of instrument modifying the charge

NA

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

NA

Name of the company

HEUBACH COLOUR PRIVATE LIMITED

Presented By

Group Capt. Shri A G Chitre, Director

1) Date and description of instrument creating the change

Facility – Cum – Hypothecation agreement

Special hypothecation agreement both dated 24/10/2000

2) Amount secured by the charge/amount owing on the securities of charge

CC/WCDL/BD/EF	Rs. 50.000 millions
LC/BG	Rs. 10.000 millions
Total	Rs. 60.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

First charge over the company inventory stock book debt land and building plant and machinery on pari passu basis with other banks.

4) Gist of the terms and conditions and extent and operation of the charge.

CC : Repayable on demand at Bank PLR – 16 % current

WCDL : Repayable minimum 15 dyas and maxumum 365 days.

BD : Floating treasury rate.

EF : pre and post shipment maximum 180 days and as per RBI norms.

LC : Maximum validity 12 months and usance of 6 months maximum

BG : Maximum validity 12 months claim period.

Both above at Standard Tarif as per internal guidelines.

5) Name and Address and description of the person entitled to the charge.

ABN – AMRO Bank

Alkapuri R C Dutt Road,

Vadodara – 390007

6) Date and brief description of instrument modifying the charge

Supplemental Facility – Cum – Hypothecation agreement dated 15/02/2002

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

First charge over the company’s inventory/ stock book debts land, building, plant and machinery on a pari passu basis with other Bank enhance from Rs. 60.000 millions to Rs. 95.000 millions to secure additional credit.

Name of the company

HEUBACH COLOUR PRIVATE LIMITED

Presented By

HEUBACH COLOUR PRIVATE LIMITED

1) Date and description of instrument creating the change

No document executed. Equitable mortgage created by Deposit of Title deeds on 22.06.1998 a evidenced by Memorandum of Entry dated 22.06.1998

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 72.500 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Lease hold property barring Plot Nos. 8002, 8003 and 9003 to 9010 admeasuring 99053.40 sq. ft. consisting of Revenue survey No. 108/P to 111/P , 140/P and 142/P to 146 / P with in village limits of Sarangpur, Ankleshwar, Bharuch together with all building and structures thereon and all Plant and Machinery attached to the earth or permanently fastend to anything attached to the earth, both present and future.

4) Gist of the terms and conditions and extent and operation of the charge.

Document of Title ecudence deeds and wiring in respect of immovable property described in column no. 3, hereinabove as and by way of mortgage by deposit of title deeds on the said immovable property rankding pari passu for all purpose and to all intents and without any preference or property of over the other and other including the custody of title deeds were handed over by Mr. Ravi Kapoor, Margining Director of the company to ICICIC Banking corporation limited, who accepted the same on their own brhalf and on behalf of dustsheet bank Mumbai assuagements for securing the duerepauyment discharge to ICICIC banking corporation limited of its Export Packing credit limits of Rs. 60.000 millions and letter of credit limit of Rs. 25.000 millions aggregating to Rs. 85.000 millions sanctioned by ICICI banking corporation limited to Deutche Bank of its. O/D credit limit of Rs. 70.000 millions aggregating to Rs. 72.500 millions sanctioned by bank together with interest compounded interest additional interest and other monies payable under the terms situpluted in the said sanction letter and respective loan agreement executed or to be by the company in the favour of ICICI Banking corporation limited and Deutche Bank.

5) Name and Address and description of the person entitled to the charge.

Deutsche Bank

D B House

Hazarimal Somani Marg,

Fort

Mumbai – 400001

6) Date and brief description of instrument modifying the charge

No document executed. Equitable mortgage created by Deposit of Title deeds on 22.06.1998 a evidenced by Memorandum of Entry dated 22.06.1998

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

By this modification financial facilities being in the nature of o/d pre export advance / Export bills purchase / Short term loan / Export performance / Customer guantantee / Letter of credit for working capital increased from Rs. 72.500 millions to Rs. 107.500 millions by Deutsche Bank

The amount of charge in favour of Deutsche Bank increased from Rs. 72.500 millions to Rs. 107.500 millions on Pari Passu basis with ICICIC banking Corporation Limited

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. 45.38
UK Pound	1	Rs. 80.11
Euro	1	Rs. 54.29

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	8
--PROFITABILIRY	1~10	8
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		63

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