MIRA INFORM REPORT

Report Date :

14.11.2006

IDENTIFICATION DETAILS

Name :	COOPER FOUNDRY PRIVATE LIMITED
Registered Office :	Plot No. L-3, Additional MIDC, Kodoli, Satara – 415 001, Maharashtra
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	28.01.1982
Com. Reg. No.:	11-26229
CIN No.: [Company Identification No.]	U27101MH1982PTC026229
TAN No.: [Tax Deduction & Collection Account No.]	PNEC05734B
PAN No.: [Permanent Account No.]	AAACC96875
Legal Form :	Private Limited Liability Company.
Line of Business :	Subject is engaged in to carry on business of manufacturers, designers, fabricators, importers, exporters of Engines, Accessories and Spare Parts required for Tractors, Diesel Wheelers, Road Rollers, Cement Mixtures, Switch Gears, Switch Boards, Compressors, Internal Combustion Engines, Tools, Machine Tools Valve and Engines Accessories generally required.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 850000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Financial position is good. Payments are correct and as per commitments. The company is doing well. It can be considered good for any normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office / Factory :	Plot No. L-3, Additional MIDC, Kodoli, Satara – 415 001, Maharashtra, India
Tel. No.:	91-2162-244413/244273
Fax No.:	91-2162-244271/247023
E-Mail :	centrifugal@vsnl.com
Website :	http://www.cooperfoundry.com
Location :	Owned

DIRECTORS

Name :	Mr. Farrokh N. Cooper
Designation :	Chairman & Managing Director
Address :	May Fair Gardens Camp, Satara – 415001, Maharashtra, India
Date of Appointment :	28.01.1982
Name :	Mr. Saam N. Cooper
Designation :	Director
Address :	Huntworth Camp, Satara – 415001, Maharashtra, India
Date of Appointment :	28.01.1982

KEY EXECUTIVES

Name :	Mr. Nitin Prabhune
Designation :	Company Secretary

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. Farrokh N. Cooper	9600
Mrs. Marrokh F. Cooper	65900
Mr. Saam N. Cooper	10399
Cooper Metals Private Limited	74000
Mrs. Homai N. Cooper	1

BUSINESS DETAILS

Line of Business :	Subject is engaged in to carry on business of manufacturers, designers, fabricators, importers, exporters of Engines, Accessories and Spare Parts required for Tractors, Diesel Wheelers, Road Rollers, Cement Mixtures, Switch Gears, Switch Boards, Compressors, Internal Combustion Engines, Tools, Machine Tools Valve and Engines Accessories generally required.
Products :	C. I. Liners

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
C. I. Liners	MTs	--	18000	10698

GENERAL INFORMATION

No. of Employees :	900
Bankers :	United Western Bank Limited MIDC, Godoli Branch, Satara, Maharashtra Citi Bank, NA Citigroup Centre, Bandra Kurla Complex, G – Block Bandra East Mumbai - 51 Corporation Bank, No 14, Pune – Mumbai Road, Wakadewadi, Pune – 411003 IDBI Bank, Godoli Branch, Satara

Banking Relations :	Good
Auditors :	S. G. Swami & Company Chartered Accountants Raghuchandra Society, A / 4, Sadarbazar, Opp. Civil Hospital, Satara – 415 001, Maharashtra
Associates/Subsidiaries :	Cooper Metal Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1,60,000	Equity Shares of	Rs.10/- each	Rs. 1.600 millions
80,000	6 % Irredemable Preference Shares	Rs.10/- each	Rs. 0.800 million
60,000	4 % Irredemable Preference Shares	Rs.10/- each	Rs. 0.600 million
	Total Authorised Capital		Rs. 3.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,59,901	Equity Shares	Rs.10/- each	Rs. 1.599 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		1.599	1.599
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		216.838	121.791
4] (Accumulated Losses)		0.000	0.000
NETWORTH		218.437	123.390
LOAN FUNDS
1] Secured Loans		406.377	179.377
2] Unsecured Loans		69.845	39.679
TOTAL BORROWING		476.222	219.056
DEFERRED TAX LIABILITIES
TOTAL		694.659	342.446
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		528.773	262.894
INVESTMENT		0.031	0.026
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	37.757	31.629
	Sundry Debtors	121.774	75.645
	Cash & Bank Balances	109.467	67.399
	Loans & Advances	64.038	36.527
Total Current Assets		333.036	211.200
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	167.181	131.674
	Provisions
Total Current Liabilities		167.181	131.674
Net Current Assets		165.855	79.526
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		694.659	342.446

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004
Sales Turnover [including other income]	637.708	420.818
Profit/(Loss) Before Tax	106.950	73.324
Provision for Taxation	10.000	1.800
Profit/(Loss) After Tax	96.950	71.524
Export Value	281.978	223.347
Total Expenditure	469.568	315.001

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004
PAT / Total Income	(%)	15.20	17.00
Net Profit Margin (PBT/Sales)	(%)	16.77	17.42
Return on Total Assets (PBT/Total Assets}	(%)	12.40	15.47
Return on Investment (ROI) (PBT/Networth)		0.12	0.59
Debt Equity Ratio (Total Liability/Networth)		2.95	2.84
Current Ratio (Current Asset/Current Liability)		2.00	1.60

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets

v Leasehold Land

v Plant and Machinery

v Building

v Motor Vehicles

v Office Equipments

v Furniture and Fixture

v Computer

v Windmill

In view of the persistent demands components such as S. G. Iron crankshafts and other components, they have recently installed a Modern Sand Foundry for which they have imported a state of the art sand mixer from Omega, England.

This capacity is virtually fully booked with orders from Indian Railways from cylinder Heads and export orders for cylinder Blocks and Heads.

Manufacturers of Centrifugally Cast Cylinder Liners, Brake Drum, Flywheels, Crankshafts and Valve Guides. Also manufacture a large range of Cylinder Liners for the Indian and International replacement market for Mazda, DCM Toyota, Komatsu, Zetor, Mercedes Benz and Mitsubishi, etc At present supplying products to the reputed OEM's and Foreign OEM's as well.

Name of the company

Cooper Foundry Private Limited

Presented By

Corporation Bank, No 14, Pune – Mumbai Road, Wakadewadi, Pune - 411003

1) Date and description of instrument creating the change

Common Deed of Hypothecation of Movable / Assets / Debts dated 08.12.2003

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

Term Loan I : Rs. 68.000 Millions

Term Loan II : Rs. 12.000 Millions

Term Loan III : Rs. 11.500 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

Exclusive first charge by way of hypothecation of movable assets forming part of the Expansion Project.

Exclusive first charge by way of hypothecation of assets W.D.V. of Rs. 46.813 millions as on 31.3.2003

Exclusive first charge by way of hypothecation of movable assets forming part of the wind mill project

W.D.V. of Rs. 46.5 millions as on

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

The company has been granted credit facilities as mentioned in item 2 against the security of the property assets described in item 3 above.

Rate of Interest : 9.50 % p.a. being 2.75 % below the banks medium term lending rate which is 12.25 % p.a. as at present, raising or falling therewith compounded with monthly quarterly rests, whether debited or not or at such lending rate that the bank may determine to charge from time to time in the terms of the directive of RBI or otherwise determined by the bank due to variation in interest spared or in gradation of loan account or at banks absolute discretion without further reference or notice to the borrower also so long as the principal and or interest and part thereof unpaid.

Margin : Term Loan 1-25 %

Repayment : term loan repayable in 72 monthly instalments of Rs. 0.945 Millions each commencing from 31.12.2004 and ending on 30.11.2010. Interest shall be paid as and when debited.

Term loan II : repayable in 36 monthly instalments of Rs. 0.334 Millions each commencing from 31.12.2003 and ending on 30.11.2006. Interest shall be paid as and when debited.

Term loan II : repayable in 60 monthly instalments of Rs. 0.192 Millions each commencing from 29.02.2004 and ending on 31.01.2009. Interest shall be paid as and when debited.

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

Corporation Bank, No 14, Pune – Mumbai Road, Wakadewadi, Pune - 411003

6) Date and brief description of instrument modifying the charge

Amendment agreement date 06.11.2004 between the borrower and the charge holder amending the term loan agreement dated 25.09.2004 and second common supplemental deed of hypothecation of movable / assets/ book debts dated 25.09.2004 and thereby effecting fourth modification to the original charges dated 08.12.2003

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.

Past modification

By the first modification dated 13.01.2004 to the original charges dated 08.12.2003 the charge was modified as under.

The original sanctioned term loan of Rs. 91.500 millions was increased to Rs. 96.500 millions

The security of the property of the company as provided in the principal deed of hypothecation executed on 08.12.2003 shall be the continuing first charge for the enhanced total term loans of Rs. 96.500 millions by way of hypothecation of movable such as plant and machinery equipments, accessories machines, spares, honing machine carousel machine CNC machines, cranes machine stress relieving furnaces electrical installations, kit of part and dewing for building carousel casting machines, stress relieving furnaces, electrical installations kit of parts and drawing for building carousel machines palates 20 T L 5 CNC lathe with standard accessories inductotherm make furnaces, HTM make lathe or any other assets acquired to be which now belong to or may hereafter during the subsistence’s of the borrower liability belonging to the borrower and which are be brought into or stored or be in the borrower all premises at Satara or any other premises or wherever else or in course of transit or delivery to the borrower out of the term loans.

All the terms and conditions set out in the principal deed of hypothecation dated 08.12.2003 shall remain in force and effect

By the second modification dated 25.08.2004 to the original charge dated 08.12.2003 the charge was modified as under.

Additional security by means of equitable mortgage of the immovable properties of the company to secure the term loans to the extent of Rs. 91.500 millions was provided.

All that piece and parcel of land known as plot no K 11-1 in the additional Satara industrial area within the village limits of Kodoli Gram Panchayat, within the registration and registration Satara admeasuring 6032 sq. mt. or thereabouts and bounded as follows :

North Plot No L – 5 MIDC reserved land

South : MIDC road

East : plot No K 11/2

West : Plot No L – 4

All that piece of land known as plot no K 3/1/C in the additional Satara Industrial Area within the village limits of Kodoli Gram Panchayat within the registration and registration Satara admeasuring 2700 sq. mt. or thereabouts and bounded as follows :

North MIDC road

South : Plot No K 2

East : plot No K 3/1/B

West : MIDC road

Collateral security created by Cooper Metals Private Limited Satara on its immovable property as detailed below by means of deposit of title deeds at the banks specified office. Corporation Bank to effect Equitable Mortgage of the said property in favour of the bank:

All that piece and parcel of land known as plot no L 1-4 in the additional Satara industrial area within the village limits of Kodoli Gram Panchayat, within the registration and registration Satara admeasuring 6032 sq. mt. or thereabouts and bounded as follows :

North plot No L –5

South Plot No L –3

East Plot No L –2

West MIDC Road and MIDC reserved land

By the third modification dated 25.09.2004 to the original charge dated 08.12.2003

The charge was modification as under

Credit Facility	Existing Limit [Rs in Millions]	Revised Limit [Rs in Millions]
Term Loan I	68.000	63.000
Term Loan II	12.000	12.000
Term Loan III	11.500	11.500
Term Loan IV	5.000	5.000
Term Loan V	--	113.200
Term Loan VI	--	88.500
	96.500	293.200

The security of the property of the company as provided in the Principal Deed of Hypothecation executed on 08.12.2003 and first supplemental common deed of hypothecation of movable assets book debts executed on 13.01.2004 shall be continuing first charge for the enhanced total loans of Rs. 293.200 millions by way of hypothecation of entire movable fixed assets such as plant and machinery equitable accessories machines spares, milling machines boning machines CNC machines crane casting machines foundry and machine shops stress relieving furnaces electrical installations kit of parts and drawing for building carousel machines palates 20 T L 5 CNC lathe with standard accessories inductotherm make furnaces, HTM make lathe or any other assets acquired to be which now belong to or may hereafter during the subsistence’s of the borrower liability belonging to the borrower and which are be brought into or stored or be in the borrower all premises at Satara or any other premises or wherever else or in course of transit or delivery to the borrower out of the term loans.

Rate of interest

9.00 % p.a. 150 bps below the present COBAR which is 10.50 % as at present or falling at such lending rate that the bank may determine to charge from time to time and also so long as the principal or part thereof remain unpaid.

All the terms and conditions set out in the principal deed of hypothecation dated 08.12.2003 shall remain in force and effect.

Present modification

By the present modification being fourth modification the charge has been modified as under :

The term loan agreement dated 25.09.2004 for Rs. 113.200 millions has been emended to the following effect

The term loan shall be under the Import Letter of Credit worth 8.00 Millions on documents against payment basis for importing CNC machines worth 8 millions on single time transaction as projected under original project submitted to the charge holder at the time of sanction of term loan of Rs. 113.200 millions

The second common supplemental deed of hypothecation agreement dated 25.09.2004 has been amended to the following effect :

Continuing first charge by way of hypothecation of entire movable fixed assets such as plant and machinery equipments, accessories machines, spares, honing machine carousel machine CNC machines, cranes machine stress relieving furnaces electrical installations, kit of part and dewing for building carousel casting machines, stress relieving furnaces, electrical installations kit of parts and drawing for building carousel machines palates 20 T L 5 CNC lathe with standard accessories inductotherm make furnaces, HTM make lathe or any other assets acquired to be which now belong to or may hereafter during the subsistence’s of the borrower liability belonging to the borrower and which are be brought into or stored or be in the borrower all premises at Satara or any other premises or wherever else or in course of transit or delivery to the borrower out of the term loans.

All the terms and conditions stipulated in the terms loan agreement and security documents executed by the borrower in respect of the term loan of Rs. 113.200 millions shall remain in force and virtue except to the extent modified by the amendment dated 06.11.2004.

Name of the company

Cooper Foundry Private Limited

Presented By

Mr. Farrokh N. Cooper

1) Date and description of instrument creating the change

Goods security agreement dated 31.05.2002 executed by Cooper Foundry Private Limited

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

Total facilities for Rs. 35 millions which is fully funded.

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

Hypothecation of stock book debts forming part of its current assets both present and future.

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

In considering of the lender having agreed to lend advance to the company said facilities under the said agreement and declaration by the company inter alia as follow

Covenant by the company to repay the facility as above and pay interest and all other monies in the manner set out in the said agreement between the company and the lender and to comply with in the term and conditions the said agreement.

The said current assets hypothecated to the lender as and by way of first charge as security for the be charged with the repayment of the loan with all interest damages premier on prepayment or on redemption costs charges and other expenses payable by the company to the lender in respect thereof.

Margin 36 % on stock and 44 % on book debts.

The companies to keep the said assets in marketable and good conditions and also incurred as provided therein

Power of entry power to take charge and possession of seize recover receive appoint and sell contract dispatch for realisation or otherwise despise of or any part of the said assets as provided therein.

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

Citi Bank NA

Citigroup Centre

Bandra Kurla Complex

G – Block Bandra East

Mumbai - 51

6) Date and brief description of instrument modifying the charge

Deed of modification dated 04.03.2004 for Rs. 52.5 millions

Deed of modification dated 20.10.2004 for Rs. 70.00 millions

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 original charge was created on 31.05.12002 for securing Rs. 35 millions which was modified on 04.03.2004 to Rs. 52.5 millions which was further modified on 20.10.2004 to Rs. 70 millions and secured by first exclusive charge on the current assets of the company both present and future.

The bank has now extended additional facilities to the company and executed a new deed of modification dated 22.06.05 for RS. 64 millions against the hypothecation of all current assets both present and future and fixed asses hypothecated by way of first exclusive charge to the lender. The above facility of Rs. 134 millions can be availed in the form of export shipment finance, letter of credit buyers credit financial bank guarantee. All othe terms and conditions as per original goods security agreement dated 31.05. 2002 remain unchanged.

Name of the company

Cooper Foundry Private Limited

Presented By

Mr. Farrokh N. Cooper

1) Date and description of instrument creating the change

Goods security agreement dated 31.05.2002 executed by Cooper Foundry Private Limited

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

Total facilities for Rs. 40 millions which is fully funded.

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

Hypothecation and first exclusive charge on two new carousel casting machines and accessories, spares, parts etc thereof

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

In considering of the lender having agreed to lend advance to the company said facilities under the said agreement and declaration by the company inter alia as follow

Covenant by the company to repay the facility as above and pay interest and all other monies in the manner set out in the said agreement between the company and the lender and to comply with in the term and conditions the said agreement.

The said current assets hypothecated to the lender as and by way of first charge as security for the be charged with the repayment of the loan with all interest damages premier on prepayment or on redemption costs charges and other expenses payable by the company to the lender in respect thereof.

Margin 36 % on stock and 44 % on book debts.

The companies to keep the said assets in marketable and good conditions and also incurred as provided therein

Power of entry power to take charge and possession of seize recover receive appoint and sell contract dispatch for realisation or otherwise despise of or any part of the said assets as provided therein.

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

Citi Bank NA

Citigroup Centre

Bandra Kurla Complex

G – Block Bandra East

Mumbai - 51

6) Date and brief description of instrument modifying the charge

Deed of modification dated 20.01.2005

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.

All other term and conditions remaining unchanged the facilities of RS. 40 millions can be availed in the form of export shipment finance, letter of credit buyers credit financial bank guarantee. All the terms and conditions remain unchanged.

Name of the company

Cooper Foundry Private Limited

Presented By

Mr. Farrokh N. Cooper

1) Date and description of instrument creating the change

Agreement of hypothecation of machinery under DPG dated 20.03.2002

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

Rs. 3.547 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

Machinery

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

Commission 2 % p.a. Margin 10 % in FDR

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

IDBI Bank

Godoli Branch

Satara

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

Cooper Foundry Private Limited

Presented By

Mr. Farrokh N. Cooper

1) Date and description of instrument creating the change

Agreement of hypothecation of machinery under DPG dated 20.03.2002

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

Rs. 3.547 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

Machinery

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

Commission 2 % p.a. Margin 25 %

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

IDBI Bank

Godoli Branch

Satara

6) Date and brief description of instrument modifying the charge

Deed of modification dated 10.04.2003

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.

Original charge created on 20.03.2002 for Rs. 3.547 millions is further modified on 10.04.2003 by addition of Rs. 2.594 millions other terms and condition remains the 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.45.01
UK Pound	1	Rs.84.91
Euro	1	Rs.57.48

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		57

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/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
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