MIRA INFORM REPORT

Report Date :

10^TH May, 2006.

IDENTIFICATION DETAILS

Name :	ASTRAL POLYTECHNIK PRIVATE LIMITED
Registered Office :	901, Parshwa Towers, 9^th Floor Sarkhej, Gandhi Nagar, Highway, Ahmedabad-380054, Gujarat, India
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	25^th March, 1996
CIN No.:	U25200GJ1996PTC029134
Com. Reg. No.:	04-29134
TAN No.: (Tax Deduction & Collection Account No.)	AHMA00853G
PAN No.: (Permanent Account No.)	AAACA9566C
Legal Form :	Private Limited Liability Company
Line of Business :	The company is engaged in manufacturing of PVC Pipes and Joints.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 325000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Financial position is satisfactory. Trade relations are fair. General financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered good for natural business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	901, Parshwa Towers, 9^th Floor Sarkhej, Gandhi Nagar, Highway, Ahmedabad-380054, Gujarat, India
Tel. No.:	91-79-26745077
Fax No.:	91-79-26752214
Email :	info@astralcpvc.com
Website :	http://www.astralepve.com
Factory 1 :	Block # 1253, Santej, Kalol, Mehsana, Gujarat, India

DIRECTORS

Name :	Mr. Sandeep P. Engineer
Designation :	Director
Address :	59, Nehru Park, Vastrapur, Ahmedabad, Gurjarat, India
Date of Birth/Age :	11/05/1961
Date of Appointment :	25/03/1996
Name :	Mr. Jagruti S. Engineer
Designation :	Director
Address :	59, Nehru Park, Vastrapur, Ahmedabad, Gurjarat, India
Date of Birth/Age :	15/07/1965
Date of Appointment :	25/03/1996
Name :	Mrs. Tarlika G. Dalal
Designation :	Director
Address :	31905, Standard Cora, Avon Lake, Ohia, USA
Date of Birth/Age :	01/03/1948
Date of Appointment :	15/12/1996
Name :	Mr. Nimish G. Dalal
Designation :	Director
Address :	31905, Standard Cora, Avon Lake, Ohia, USA
Date of Birth/Age :	06/05/1971
Date of Appointment :	15/12/1996
Name :	Mr. Kyle A. Thomson
Designation :	Director
Address :	102, Season Lake, NE Hunt’s Villa, 35811, USA
Date of Appointment :	01/12/1997
Name :	Mr. Kirk A. Thomson
Designation :	Director
Address :	538, Wess Toylor, Hun’s Villa, 35811, USA
Date of Appointment :	01/12/1997

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. Sandeep P. Engineer 59, Nehru Park, Vastrapur, Ahmedabad, Gurjarat, India	210700
Mr. Jagruti S. Engineer 59, Nehru Park, Vastrapur, Ahmedabad, Gurjarat, India	157750
Saumya Polymers Private Limited 901, Parshwa Towers, 9^th Floor Sarkhej, Gandhi Nagar, Highway, Ahmedabad-380054, Gujarat, India	519500
Mr. Nimish G. Dalal 31905, Standard Cora, Avon Lake, Ohia, USA	207500
Mrs. Tarlika G. Dalal 31905, Standard Cora, Avon Lake, Ohia, USA	149500
Speciality Process LLC Huntsville AL-35811 USA	400100
Narendra S. Shah 12, New Commercial Staff, Society, B/H Lal Bunglow, Ahmedabad – 380006	10
Indrakumar R. Agarwal 32, Sankar Bharti Society, Naranpura, Ahmedabad	10
Kantaben S. Shah Proprietor – Anand Traders 1962-4, Pushpakarna’s Pole, Bala Hanuman, Gandhi Road, Ahmedabad	10
Dhiren Parekh Proprietor – Charmi International , Pancheel, Vira Desai Road, Andheri (W, Mumbai )	10
Hasvazntrai C Desai 16/B, Madhukunj Society, B/H Kashi Vishwanath Mahade, Maninagar (E), Ahmedabad	10
Poojaben K Desai 16/B, Madhukunj Society, B/H Kashi Vishwanath Mahade, Maninagar (E), Ahmedabad	10
Ashwin R Mehta 3, Deep Mangal Society, Opp Amrankunj Society, Opp. Amrakunj Bus Stop, Race Cource Circle, vadodra-7	10
Indu Mehta 3, Deep Mangal Society, Opp Amrankunj Society, Opp. Amrakunj Bus Stop, Race Cource Circle, vadodra-7	10
Mansi D Mehta 49, Payal Park Society, Jodhpur Tekra, Ahmedabad	10
Sheela D Mehta 49, Payal Park Society, Jodhpur Tekra, Ahmedabad	10
Cherry Mishtra 401, G H B Complex, Naranpura, Ahmedabad- 13	10
Nita V Mishra 401, G H B Complex, Naranpura, Ahmedabad- 13	10
Ramesh B Shah Proprietor – Ramesh Traders, 7-77, Shanti Towers, Near Manchbaug Hall, Ambawadi, Ahmedabad	10
Ravindra C Mehta Bhupendra Shah Rituben B Shah Partner – Swati Associates, Jyotirdeep, Gulbai Tekra, Ahmedabad	10
Ravindra C Mehta Bhupendra Shah Partner – Swati Associates, Jyotirdeep, Gulbai Tekra, Ahmedabad	10
Bipin Mehta 79, Nehru Park, Vastrapur, Ahmedabad	10
Rekha B Mehta 79, Nehru Park, Vastrapur, Ahmedabad	10
Manorama T Dalal 8, Vasuma Hills, Vastrapur Ahmedabad	10
Amoli N Patel Niranjan T Patel, ‘Repose’ Smruti Kunj, Navranpura, Ahmedabad	10
Binauli N Patel Niranjan T Patel ‘Repose’ Smruti Kunj, Navranpura, Ahmedabad	10
Tarlika T Patel Repose’ Smruti Kunj, Navranpura, Ahmedabad	50
Niranjan T Patel Raginee N Patel Repose’ Smruti Kunj, Navranpura, Ahmedabad	50
Pratima T Patel Niranjan T Patel ‘Repose’ Smruti Kunj, Navranpura, Ahmedabad	50
Veenaben S Mehta Nishith S Mehta Ground floor, Kruti Apartment Nehru Park, Vastrapur Ahmedabad	50
Mr. Sandeep P. Engineer – HUF 59, Nehru Park, Vastrapur, Ahmedabad, Gurjarat, India	50
Amritlal M Shah No. 1, Navdeep Flat, near Sheeba Hotel, C G Road, Ahmedabad	50
Manish Patel “Dhiraj” Bh LIC Building, Ashram Road, Ahmedabad.	50
TOTAL	1645600
Speciality Process LLC Huntsville AL-35811 USA (Preference Shares)	1548115

BUSINESS DETAILS

Line of Business :

The company is engaged in manufacturing of PVC Pipes and Joints.

PRODUCTION STATUS

Particulars	Unit	Installed Capacity
Forward Pipes	Mtrs	2826486
Corzan pipes	Mtrs	25899
PVC Pipes	Mtrs	721681
Flowguared fittings	Mtrs	5655830
PVC Fittings	Mtrs	416727

GENERAL INFORMATION

No. of Employees :

15

Bankers :

Ø Tamilnad Mercantile Co-operative Bank, Ahmedabad, Gujarat, India

[Facility : HP Rs.75 lakh dated 25-07-2000]

Ø Madhupura Mercantile Co-operative Bank.

[Facility : HP Rs.200 lakh dated 17-07-2000]

Ø Corporation Bank – S G Highway

Ø Corporation Bank – Mumbai

Ø Corporation Bank – Delhi

Ø Corporation Bank – Bangalore

Ø Corporation Bank

Rangoli Complex, 1^st Floor, Opp. V S Hospital , Ellisbridge, ashram Road, Ahmedabad- 390006

Facilities :

SECURED LOAN	(Rs in millions)
From Gujarat State Financial Corporation	--
From Corporation Bank	59.073
Car Loan	3.104
Working Capital Loan	47.623

Banking Relations :	Satisfactory
Auditors :	N Gamadia and Company Chartered Accountant
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1700000	Equity Shares	Rs.10/- each	Rs. 17.000 Millions
1550000	Equity Shares	Rs.10/- each	Rs. 15.500 Millions
	Total		Rs. 32.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1645600	Equity Shares	Rs.10/- each	Rs. 16.456 Millions
1058815	Non-Cumulative Redeemable Preference Shares	Rs.10/- each	Rs. 10.588 Millions
489300	Non-Cumulative Redeemable Preference Shares	Rs.10/- each	Rs. 4.893 Millions
	Total		Rs. 31.937 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		31.937	31.937	30.589
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		48.416	22.386	5.698
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		80.353	54.323	36.287
LOAN FUNDS
1] Secured Loans		109.800	70.571	42.641
2] Unsecured Loans		19.360	7.170	10.010
TOTAL BORROWING		129.160	77.741	52.651
DEFERRED TAX LIABILITIES		9.637	9.027	4.674
TOTAL		219.150	141.091	93.612
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		123.260	80.411	53.017
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	69.028	34.842	6.665
	Sundry Debtors	60.404	65.312	36.842
	Cash & Bank Balances	1.153	1.525	41.719
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	20.009	7.436	6.916
Total Current Assets		150.594	109.115	92.142
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	35.300	36.352	52.957
	Provisions	19.449	12.587	0.000
Total Current Liabilities		54.749	48.939	52.957
Net Current Assets		95.845	60.176	39.185
MISCELLANEOUS EXPENSES		0.045	0.504	1.410
TOTAL		219.150	141.091	93.612

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	377.026	217.278	128.675
Profit/(Loss) Before Tax	30.930	25.448	15.233
Provision for Taxation	8.610	8.752	7.023
Profit/(Loss) After Tax	22.320	16.696	8.210
Import Value	140.303	NA	NA
Total Expenditure	346.095	191.830	113.451

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004	31.03.2003
PAT / Total Income	(%)	5.92	7.68	6.38
Net Profit Margin (PBT/Sales)	(%)	8.20	11.71	11.84
Return on Total Assets (PBT/Total Assets}	(%)	11.29	13.43	10.49
Return on Investment (ROI) (PBT/Networth)		0.38	0.47	0.42
Debt Equity Ratio (Total Liability/Networth)		2.29	2.33	2.91
Current Ratio (Current Asset/Current Liability)		2.75	2.23	1.74

LOCAL AGENCY FURTHER INFORMATION

FIXED ASSETS

Ø Land and Land developers

Ø Road

Ø Building

Ø Plant and Machinery

Ø Moulds and Dyes

Ø Computers

Ø Furniture and Fixture

Ø Laboratory Equipments

Ø Vehicles

Ø Office Equipments

The company produced 6264 meters of PVC Pipes and 2057 meters of S60 type of joints during the year 1998-99.

The company is in collaboration with Speciality Process LCC, USA.

OPERATIONS

This year of operations i.e. financials year 2004-05 was excellent year in the history of the company. The company has achieved net sales of Rs. 356.476 millions compared to Rs. 220.003 millions last year which is higher by 62.03 % compared to previous year. The cash profits before tax has also increased by 22.87 % to 39.497 millions inspire of huge outflow on media campaign. Similarly Profit Before Tax has increased from Rs. 25.448 millions to Rs. 30.930 millions which shows a rise of 21.54 % the net profit of the company has reduced because of charging of Exceptional items to P & L Account. Apart from continued its outstanding performance in improving the top line as well as the button line, the company has considerably strengthened its market position over its nearest rival the GI Pipes systems.

Following the aggressive market penetration strategy and capitalizing on the favourable market factors, the company has increased its produced capacities during the year and to take the advantage of Government Policies and to strengthen its distribution network in North East and to increase bottom line, the company managed has successfully implemented its expansion project at Himachal Pradesh.

CPVC is a new material to Indian market and nodded more efforts in market awareness so far. The company’s awareness programmes focused the relevant industry audience including plumbers, contractors, Architects etc. However there was need to address the use at large. This was not possible without media campaign through mass media charting a new ternd. The company undertook a mass media program on two tending Hindu News channels Aaj tak and Star News. The companies went on air from April 2001, the election moth and was in fully swing duing the months of April, May and June.

The company has also completed the advance phase of implementation of ERP systems. The first phase has covered all the business operations of the company in Gujarat and now its has successfully integrated with Bangalore and Himachal Pradesh. Thus has resulted into more timely availability of useful business information and better decision making process at all the levels of managements.

REVALUATION OF ASSETS

During the year managed has revalue the assets as on 30.09.2004 from the Government Approved Valuers to arrive more realistic realizable value and considering the conservation principle management has given the effect of reduction in the value of assets in the books of accounts by cadging to P & L. Account as an Exception items and upward revision in the value of Assets is by the managed concept the Land and Land development and the same is credited to Capital Reserve Account.

1) Date and description of instrument creating the change

Common Deed of Hypothecation of Movable / Assets/ Debts dated 11-07-2002

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

Rs. 25.000 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

All present and future, stock of goods consisting of CPVC compound, CPVC fittings and stores and spares etc. which now belong to and may hereafter, during the subsistence of the Borrowings/ liability belong to the borrower and which are shall may be brought into or stored or be in / upon the borrowers premises/.Godown at Block No. 1253 village santej Taluka Kalol and or any other premises or wherever else or in course of transit or delivery to the borrower.

All book debts of the company

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

Interest at 15.5 % being 4 % over and above the Bank’s PLR which is 11.5 % at time of sanction, rising or falling with the Bank PLR

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

Corporation Bank

Rangoli Complex,

1^st Floor, Opp. V S Hospital ,

Ellisbridge, ashram Road,

Ahmedabad- 390006

Date and brief description of instrument modifying the charge

Not Applicable

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.

Not Applicable

1) Date and description of instrument creating the change

Common Deed of Hypothecation of Movable / Assets/ Debts dated 11-07-2002

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

Rs. 25.000 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

All present and future, stock of goods consisting of CPVC compound, CPVC fittings and stores and spares etc. which now belong to and may hereafter, during the subsistence of the Borrowings/ liability belong to the borrower and which are shall may be brought into or stored or be in / upon the borrowers premises/.Godown at Block No. 1253 village santej Taluka Kalol and or any other premises or wherever else or in course of transit or delivery to the borrower.

All book debts of the company

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

Interest at 15.5 % being 4 % over and above the Bank’s PLR which is 11.5 % at time of sanction, rising or falling with the Bank PLR

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

Corporation Bank

Rangoli Complex,

1^st Floor, Opp. V S Hospital ,

Ellisbridge, ashram Road,

Ahmedabad- 390006

Date and brief description of instrument modifying the charge

Extension of Equitable Mortage by way of Second Charge dated 16^th July, 2002

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.

Second charge on immovable properties being land admeasuring 8086 sq. mtrs. Forming part of Plot No. 1253, village santej Taluka Kalo, Mehsana together with building and other structures, etc, providing as additional security. Second charge ceded through constructive delivery of title deeds by according oral consent to GSFC to continued to hold and retain the title deeds for itself and as agent for corporation Bank.

1) Date and description of instrument creating the change

Common Deed of Hypothecation of Movable / Assets/ Debts dated 11-07-2002

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

Rs. 25.000 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

All present and future, stock of goods consisting of CPVC compound, CPVC fittings and stores and spares etc. which now belong to and may hereafter, during the subsistence of the Borrowings/ liability belong to the borrower and which are shall may be brought into or stored or be in / upon the borrowers premises/.Godown at Block No. 1253 village santej Taluka Kalol and or any other premises or wherever else or in course of transit or delivery to the borrower.

All book debts of the company

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

Interest at 15.5 % being 4 % over and above the Bank’s PLR which is 11.5 % at time of sanction, rising or falling with the Bank PLR

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

Corporation Bank

Rangoli Complex,

1^st Floor, Opp. V S Hospital ,

Ellisbridge, ashram Road,

Ahmedabad- 390006

Date and brief description of instrument modifying the charge

Supplemental common deed of hypothecation dated 06/08/2003

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 supplemental deed of hypothecation the over all limit is increased from Rs. 25.000 millions to Rs. 53.900 millions to cover the following limits

Nature Of Facility	Rs in Millions
Cash Credit (Hypothecation of Stocks and Book Debts)	35.000
Term loan	18.900
Total	53.900

The above facilities are further secured by Exclusive First Charge on Movable Fixed assets to be acquired / acquired out of the finance from corporation Bank

Interest will be charged for Cash Credit facilities @ 14 % p.a. being 2.50 % over and above the Banks PLR which is 11.50 % as at present subject to revision from time to time. Fr Term Loan facilities Interest will be charged @14.75 % p.a. being 2.50 % over and above CBMTLR which is 12.25 % p.a. as at present subject to revision from time to time. Other terms and condition remain same.

1) Date and description of instrument creating the change

Common Deed of Hypothecation of Movable / Assets/ Debts dated 11-07-2002

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

Rs. 25.000 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

All present and future, stock of goods consisting of CPVC compound, CPVC fittings and stores and spares etc. which now belong to and may hereafter, during the subsistence of the Borrowings/ liability belong to the borrower and which are shall may be brought into or stored or be in / upon the borrowers premises/.Godown at Block No. 1253 village santej Taluka Kalol and or any other premises or wherever else or in course of transit or delivery to the borrower.

All book debts of the company

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

Interest at 15.5 % being 4 % over and above the Bank’s PLR which is 11.5 % at time of sanction, rising or falling with the Bank PLR

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

Corporation Bank

Rangoli Complex,

1^st Floor, Opp. V S Hospital ,

Ellisbridge, ashram Road,

Ahmedabad- 390006

Date and brief description of instrument modifying the charge

Supplemental common deed of hypothecation dated 25/03/2004

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 supplemental deed of hypothecation the over all limit is increased from Rs. 25.000 millions to Rs. 53.900 millions to cover the following limits

Nature Of Facility	Rs in Millions
Cash Credit (Hypothecation of Stocks and Book Debts)	35.000
Cash Credit	7.500
Term loan	18.900
Total	61.400

The above facilities are further secured by Exclusive First Charge on Movable Fixed assets to be acquired / acquired out of the finance from corporation Bank

Interest will be charged for Cash Credit facilities @ 14 % p.a. being 2.50 % over and above the Banks PLR which is 11.50 % as at present subject to revision from time to time.

The rate of interest shall be 13.75 % p.a. being 3.254 % over and above the bank CDBAR which is 10.5 % p.a. as at present subject to revision from time to time. For Term Loan facilities Interest will be charged @14.75 % p.a. being 2.50 % over and above CBMTLR which is 12.25 % p.a. as at present subject to revision from time to time. Other terms and condition remain same.

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. 45.05
UK Pound	1	Rs. 84.96
Euro	1	Rs. 57.98

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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