MIRA INFORM REPORT

Report Date :

22.08.2007

IDENTIFICATION DETAILS

Name :	ALCAN ALUCOBOND (FAR EAST) PTE LTD
Registered Office :	^25 International Business Park, #03-56, German Centre, Singapore – 609916
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^25/07/1995
Com. Reg. No.:	^199505288C
Legal Form :	^Pte Ltd
Line of Business :	Marketing, Providing Product Support, Distribution and Sale of Aluminium Products

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

Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

ALCAN ALUCOBOND (FAR EAST) PTE LTD

Line Of Business 

MARKETING, PROVIDING PRODUCT SUPPORT, DISTRIBUTION AND SALE OF ALUMINIUM PRODUCTS

Parent Company

ALCAN HOLDINGS SWITZERLAND AG

(PERCENTAGE OF SHAREHOLDING: 99.00%)

Financial Elements

FY 2006

COMPANY

Sales : S$21,014,057

Networth : S$350,243

Paid-Up Capital : S$100,000

Net result : S$7,841

Net Margin(%) : 0.04

Return on Equity(%) : 2.24

Leverage Ratio : 9.42

COMPANY IDENTIFICATION

^{Subject Company: ALCAN ALUCOBOND (FAR EAST) PTE LTD}

^{Former Name: ALUCOBOND (FAR EAST) PTE LTD}

^{Business Address: 25 INTERNATIONAL BUSINESS PARK}

^#03-56

^{GERMAN CENTRE}

^{Town: SINGAPORE}

^{Postcode: 609916}

^{County: -}

^{Country: Singapore}

^{Telephone: 6562 8686}

^{Fax: 6562 8688}

^{ROC Number: 199505288C}

^{Reg. Town: -}

PREVIOUS IDENTIFICATION

^{ALUCOBOND (FAR EAST) PTE LTD DATE OF CHANGE OF NAME: 18/07/2001}

SUMMARY

^{All amounts in this report are in: SGD unless otherwise stated}

^{Legal Form: Pte Ltd}

^{Date Inc.: 25/07/1995}

^{Previous Legal Form: -}

^{Summary year: 31/12/2006}

^{Sales: 21,014,057}

^{Net worth: 350,243}

^{Capital: -}

^{Paid-Up Capital: 100,000}

^{Employees: 8}

^{Net result: 7,841}

^{Share value: -}

^{Auditor: PRICEWATERHOUSECOOPERS}

REFERENCES

^{Litigation: No}

^{Company status: TRADING}

^{Started: 25/07/1995}

PRINCIPAL(S)

^{SCHNEIDER ERICH S2196019E Managing Director}

DIRECTOR(S)

^{LEYTING CLAUS Director}

^{Appointed on: 25/07/1995}

^{Street: WEIDENSTR 8, D-78259}

^{Town: MUHLHAUSEN}

^{Postcode: -}

^{Country: Germany}

^{SCHNEIDER ERICH S2196019E Director}

^{Appointed on: 25/07/1995}

^{Street: 135 SUNSET WAY}

^#04-15

^{CLEMENTI PARK}

^{Town: SINGAPORE}

^{Postcode: 597158}

^{Country: Singapore}

^{SCHNEIDER ERICH S2196019E Managing Director}

^{Appointed on: 25/09/1995}

^{Street: 135 SUNSET WAY}

^#04-15

^{CLEMENTI PARK}

^{Town: SINGAPORE}

^{Postcode: 597158}

^{Country: Singapore}

^{GEORG RUDOLF PETER REIF F1599624 Director}

^{Appointed on: 01/07/2000}

^{Street: KUFERMATTRASSE 25, CH-5643}

^{Town: SINS}

^{Postcode: -}

^{Country: Switzerland}

^{FOO SUAN KEE S0018699F Company Secretary}

^{Appointed on: 25/07/1995}

^{Street: 136 BISHAN STREET 12}

^#05-442

^{BISHAN GREEN}

^{Town: SINGAPORE}

^{Postcode: 570136}

^{Country: Singapore}

ACTIVITY(IES)

^{HARDWARE - WHSLE Code:11020}

^{ALUMINIUM Code:720}

^{PANELLING Code:15900}

^{BASED ON ACRA'S RECORD AS AT 17/08/2007}

^{1) WHOLESALE OF METALS AND FABRICATED METALS EXP GENERAL HARDWARE (EG STEEL PIPES);}

^{DESIGN AND ENGINEERING OF COMPOSITE PANEL COMPONENTS}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{DBS BANK LTD.}

SHAREHOLDERS(S)

^{ALCAN HOLDINGS SWITZERLAND AG 99,998 Company}

^{Street: MAX HOEGGER-STRASSE 6}

^{P. O. BOX 1954, CH-8048}

^{Town: ZURICH}

^{Postcode: -}

^{Country: Switzerland}

^{LEYTING CLAUS 1 Private Person}

^{Street: WEIDENSTR 8, D-78259}

^{Town: MUHLHAUSEN}

^{Postcode: -}

^{Country: Germany}

^{SCHNEIDER ERICH 1 Private Person}

^{Street: 135 SUNSET WAY}

^#04-15

^{CLEMENTI PARK}

^{Town: SINGAPORE}

^{Postcode: 597158}

^{Country: Singapore}

HOLDING COMPANY

^{ALCAN HOLDINGS SWITZERLAND AG UF16816K %: 99.00}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity: SUFFICIENT}

^{Payments: REGULAR}

^{Trend: DOWNWARD}

^{Financial Situation: AVERAGE}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

^{All amounts in this report are in: SGD unless otherwise stated}

^{Audit Qualification: UNQUALIFIED (CLEAN) UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 02/07/2007}

^{Balance Sheet Date: 31/12/2006 31/12/2005}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 95,013 125,683}

^{Total Fixed Assets: 95,013 125,683}

^{Inventories: 446,115 222,311}

^{Receivables: 2,718,684 3,171,322}

^{Cash,Banks,Securities: 240,359 286,405}

^{Other current assets: 149,251 768,762}

^{Total Current Assets: 3,554,409 4,448,800}

^{TOTAL ASSETS: 3,649,422 4,574,483}

^{--- LIABILITIES}

^{Equity capital: 100,000 100,000}

^{Profit & loss Account: 250,243 242,402}

^{Total Equity: 350,243 342,402}

^{Trade Creditors: 2,910,055 3,040,835}

^{Prepay. & Def. charges: 386,426 287,392}

^{Provisions: 2,698 5,870}

^{Other Short term Liab.: 897,984}

^{Total short term Liab.: 3,299,179 4,232,081}

^{TOTAL LIABILITIES: 3,299,179 4,232,081}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 21,014,057 12,393,799}

^{Purchases,Sces & Other Goods: 19,853,478 116,712,261}

^{Gross Profit: 1,160,579 722,538}

^{NET RESULT BEFORE TAX: 16,781 64,236}

^{Tax: 8,940 4,621}

^{Net income/loss year: 7,841 59,615}

^{Depreciation: 51,228 26,737}

^{Directors Emoluments: 279,155 273,563}

^{Wages and Salaries: 1,236,134 1,016,437}

RATIOS

^{31/12/2006 31/12/2005}

^{Turnover per employee: 2626757.12 1549224.88}

^{Stock / Turnover(%): 0.02 0.02}

^{Net Margin(%): 0.04 0.48}

^{Return on Equity(%): 2.24 17.41}

^{Return on Assets(%): 0.21 1.30}

^{Net Working capital: 255230.00 216719.00}

^{Cash Ratio: 0.07 0.07}

^{Quick Ratio: 0.90 0.82}

^{Current ratio: 1.08 1.05}

^{Receivables Turnover: 46.57 92.12}

^{Leverage Ratio: 9.42 12.36}

^{Net Margin: (100*Net income loss year)/Net sales}

^{Return on Equity: (100*Net income loss year)/Total equity}

^{Return on Assets: (100*Net income loss year)/Total fixed assets}

^{Net Working capital: (Total current assets-Total short term liabilities)}

^{Cash Ratio: Cash Bank securities/Total short term liabilities}

^{Quick Ratio: (Cash Bank securities+Receivables)/Total Short term liabilities}

^{Current ratio: Total current assets/Total short term liabilities}

^{Inventory Turnover: (360*Inventories)/Net sales}

^{Receivables Turnover: (Receivable*360)/Net sales}

^{Leverage Ratio: Total liabilities/(Total equity-Intangible assets)}

FINANCIAL COMMENTS

^{THE FINANCIAL CONDITION OF THE COMPANY WAS SEEN TO BE FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 2.29% FROM S$342,402 IN 2005 TO S$350,243 IN 2006.}

^{THIS WAS DUE TO HIGHER RETAINED EARNINGS OF S$250,243 (2005: S$242,402); A RISE OF 3.23% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 88.21% (2005: 71.85%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$2,910,055 (2005: S$3,040,835). THE BREAKDOWN IS AS FOLLOWS:}

^{-THIRD PARTIES - 2006: S$155,569 (2005: S$206,432)}

^{-RELATED CORPORATIONS (TRADE) - 2006: S$2,754,486 (2005: S$2,834,403)}

^{SUBJECT DID NOT INCUR ANY LONG TERM LIABILITIES DURING THE FINANCIAL}

^{YEAR UNDER REVIEW.}

^{IN ALL, LEVERAGE RATIO FELL FROM 12.36 TIMES TO 9.42 TIMES AS A RESULT OF A RISE IN TOTAL EQUITY AND A FALL IN TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL BY 17.77% TO S$255,230 (2005: S$216,719).}

^{CURRENT RATIO ROSE TO 1.08 TIMES, UP FROM 1.05 TIMES AND QUICK RATIO IMPROVED TO 0.90 TIMES FROM 0.82 TIMES IN 2005.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 69.55% FROM S$12,393,799 IN 2005 TO S$21,014,057 BUT NET PROFIT DROPPED BY 86.85% TO S$7,841 (2005: S$59,615).}

^{THIS COULD BE DUE TO LOWER GROSS MARGIN OF 5.52% IN 2006 (2005: 5.83%).}

^{HENCE, NET MARGIN FELL TO 0.04% (2005: 0.48%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IN ADDITION, SUBJECT DID NOT INCUR ANY INTEREST EXPENSES DURING THE FINANCIAL YEAR UNDER REIVEW.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 25/07/1995 AS A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF "ALUCOBOND (FAR EAST) PTE LTD".}

^{SUBSEQUENTLY ON 18/07/2001, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE OF "ALCAN ALUCOBOND (FAR EAST) PTE LTD".}

^{AS AT 17/08/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 100,000 SHARES, OF A VALUE OF S$100,000.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED WITH THE ACCOUNTING AND CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

^{1) WHOLESALE OF METALS AND FABRICATED METALS EXP GENERAL HARDWARE (EG STEEL PIPES); IMPORT EXPORT & WHOLES ALUMINIUM PRODUCTS}

^{2) CURTAIN WALLING/CLADDING WORKS; DESIGN AND ENGINEERING OF COMPOSITE PANEL COMPONENTS}

^{DURING THE FINANCIAL YEAR (S) UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY ARE THOSE RELATING TO MARKETING, PROVIDING PRODUCT SUPPORT, DISTRIBUTION AND SALE OF ALUMINIUM PRODUCTS AND COMPOSITE PANELS AND PROVISION OF MARKETING SERVICES TO A RELATED CORPORATION.}

^{FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:}

^ACTIVITIES

^{- FAR EAST SUPPORT CENTRE FOR ALUCOBOND, DIBOND AND ALUCORE ALUMINIUM COMPOSITE}

^PANELS

^{NUMBER OF EMPLOYEES}

^{- 8}

^{PRODUCTS AND SERVICES}

^{- MARKETING AND SALES OF ALUCOBOND, ALUCORE AND DIBOND ALUMINIUM COMPOSITE PANELS}

^{FOR ARCHITECTURAL, DISPLAY, INDUSTRIAL AND TRANSPORT APPLICATIONS AND FOR}

^{CORPORATE IDENTITY PROGRAMMES}

^{- PROVIDING APPLICATION KNOW-HOW, SALES AND AFTER-SALES SUPPORT}

^{- REGIONAL STOCKIST OF ALUCOBOND, DIBOND AND ALUCORE PANELS}

^{- DISTRIBUTOR OF MACHINERY AND EQUIPMENT REQUIRED FOR FABRICATION OF ALUMINIUM}

^{COMPOSITE PANELS}

^{TRADE NAMES / PRODUCTS}

^{- ALUCOBOND -- ALUMINIUM COMPOSITE PANEL FOR ARCHITECTURAL, TRANSPORT}

^{AND INDUSTRIAL APPLICATIONS}

^{- ALUCORE -- ALUMINIUM HONEYCOMB COMPOSITE PANEL}

^{- DIBOND -- ALUMINIUM COMPOSITE PANEL FOR DISPLAY APPLICATIONS}

^{INDUSTRIES SERVED}

^{- ARCHITECTURAL, DISPLAY, INDUSTRY AND TRANSPORT}

^{SUBJECT IS A MEMBER OF THE FOLLOWING ENTITIES}

^{- SWISS BUSINESS ASSOCIATION}

^{- SINGAPORE GERMAN CHAMBER}

^{ACCORDING TO THE TELE-INTERVIEW CONDUCTED ON 22/08/2007, THE FOLLOWING INFORMATION WAS GATHERED:}

^{SUBJECT'S PERSONNEL CONFIRMED THE BUSINESS ADDRESS AND CONTACT NUMBERS OF THE COMPANY, BUT DECLINED TO PROVIDE MORE INFORMATION, HENCE NO OTHER TRADE INFORMATION WAS MADE AVAILABLE VIA THE TELE-INTERVIEW.}

^{THE COMPANY'S IMMEDIATE HOLDING CORPORATION IS ALCAN HOLDINGS SWITZERLAND AG, INCORPORATED IN SWITZERLAND. THE COMPANY'S ULTIMATE HOLDING CORPORATION IS ALCAN INC., INCORPORATED IN CANADA.}

^{NUMBER OF EMPLOYEES (31 DECEMBER)}

^{- COMPANY - 2006: NOT AVAILABLE (2005: NOT AVAILABLE)}

^{REGISTERED ADDRESS:}

^{25 INTERNATIONAL BUSINESS PARK}

^#03-56

^{GERMAN CENTRE}

^{SINGAPORE 601916}

^{DATE OF CHANGE OF ADDRESS: 01/10/2005}

^{- RENTED PREMISE}

^{- OWNED BY: GERMAN CENTRE FOR INDUSTRY AND TRADE PTE LTD}

^WEBSITE:

^{http://www.alucobond.com.sg}

^EMAIL:

^{aafe@alcan.com}

MANAGEMENT

^{THE DIRECTORS AT THE TIME OF THIS REPORT ARE:}

^{1) LEYTING CLAUS, A GERMAN}

^{- BASED IN GERMANY}

^{2) GEORG RUDOLF PETER REIF, A SWISS}

^{- BASED IN SWITZERLAND}

^{3) SCHNEIDER ERICH, A SINGAPORE PERMANENT RESIDENT}

^{- HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.}

SINGAPORE’S COUNTRY RATING 2007

^{INVESTMENT GRADE}

^{IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.}

^{SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.}

^{EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO REPATRIATION OF PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO CONTRIBUTED TO THE LARGE CURRENT ACCOUNT SURPLUS.}

^{SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND PHARMACEUTICAL SECTORS.}

^{THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP PRIORITY SECTORS (ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE THE GROWTH OF HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A REGIONAL HUB FOR FOREIGN INVESTORS INTERESTED IN ASIA.}

^{CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE HOWEVER ONLY PARTIALLY OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP, BUT THE PROGRESS IS SLOW. AFTER HIGH GROWTH IN 2006, BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD CONSUMPTION, A SLOWDOWN IS EXPECTED IN 2007.}

^ASSETS

^{" MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING}

^COMPANY.

^{" HIGH QUALITY COMPETITIVENESS IN ASIA}

^{" EXCELLENT BUSINESS CLIMATE}

^{" POLITICAL STABILITY.}

^WEAKNESSES

^{" SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR DEVELOPMENT.}

^{" AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.}

^{" GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST}

^{SKILLED COULD GENERATE SOCIAL TENSIONS.}

^{" BEING THE WORLD'S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD ECONOMIC}

^DOWNTURNS.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE DECLINED BY 7.5% IN Q1 2007. EXCLUDING PETROLEUM, DOMESTIC SALES FELL BY 7.4%. SECTORS OF ELECTRONIC COMPONENTS, SHIP CHANDLERS AND BUNKERING, INDUSTRIAL AND CONSTRUCTION MACHINERY REPORTED DECLINES OF 11.6% TO 23.8%.

HOWEVER, WHOLESALERS OF FOOD, BEVERAGES AND TOBACCO REGISTERED HIGHER TURNOVER OF 5.4%.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE IN QUARTER 1 2007 FELL BY 7.6%. EXCLUDING PETROLEUM, FOREIGN SALES DECLINED BY 8.0%. MOST WHOLESALE SECTORS REPORTED LOWER OVERSEAS RECEIPTS IN QUARTER 1 2007 COMPARED TO THE PREVIOUS QUARTER, EXCEPT HOUSEHOLD EQUIPMENT AND FURNITURE SECTOR. SHIP CHANDLERS & BUNKERING REPORTED THE LARGEST DECLINE OF 18.3% IN QUARTER 1 2007, FOLLOWED BY FOOD BEVERAGES & TOBACCO SECTOR OF 17.7%.

RETAIL TRADE

THE OVERALL RETAIL SALES ROSE MARGINALLY BY 0.7% IN QUARTER 2 2007, COMPARED TO QUARTER 2 2006. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.1%. SALES OF OPTICAL GOODS & BOOKS, FURNITURE & HOUSEHOLD EQUIPMENT AND SUPERMARKETS ENJOYED STRONG GROWTHS OVER A YEAR AGO. PROVISION & SUNDRY SHOPS, WATCHES AND JEWELLERY, DEPARTMENT STORES AND WEARING APPAREL & FOOTWEAR SECTORS ALSO REPORTED HIGHER SALES OF 4.35 TO 5.9% RESPECTIVELY.

HOWEVER, RETAILERS OF MOTOR VEHICLES, FOOD & BEVERAGES, TELECOMMUNICATIONS APPARATUS & COMPUTERS AND PETROL SERVICES STATIONS REPORTED LOWER SALES.

OUTLOOK

GENERALLY, WHOLESALERS EXPECT TO DO WELL FOR THE NEXT 6 MONTHS, WITH A POSITIVE NET WEIGHTED BALANCE OF 17%. DEALERS OF FOOD & BEVERAGES, TROPICAL PRODUCE, TEXTILES & LEATHER GOODS AND HOUSEHOLD ELECTRICAL APPLIANCE & EQUIPMENT ARE AMONG THOSE WHO ARE OPTIMISTIC.

RETAIL TRADE FIRMS ANTICIPATE BUSINESS TO BE LESS BRISK FOR THE NEXT 6 MONTHS. IN PARTICULAR, DEPARTMENT STORES, SUPERMARKETS AND RETAILERS OF MOTOR VEHICLES EXPECT SLOWER BUSINESS IN THE COMING MONTHS.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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%)

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