MIRA INFORM REPORT

Report Date :

06.12.2007

IDENTIFICATION DETAILS

Name :	PREMIUM ENERGY TRANSMISSION LIMITED
Formerly Known As :	EVEREST FOOD [INDIA] PRIVATE LIMITED
Registered Office :	Thapar House 124, Janpath, New Delhi – 110001
Country :	India
Financials (as on) :	30.06.2007
Date of Incorporation :	06.04.1983
Com. Reg. No.:	55-15615
CIN No.: [Company Identification No.]	U01119DL1983PLC015615
TAN No.: [Tax Deduction & Collection Account No.]	PNEP08128B / MUMP21911B
PAN No.: [Permanent Account No.]	ACDCP2916N
Legal Form :	A closely held public limited liability company
Line of Business :	Manufacturers of industrial gearboxes and fluid couplings

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 3600000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. It has taken over the power transmission business as a going concern from Greaves Cotton Limited w.e.f. 30^th June, 2004. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Payments are reported as usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Thapar House 124, Janpath, New Delhi – 110001, India
Tel. No.:	91-11-23368811
Fax No.:	91-11-23368729
E-Mail :	goei.r.t.@petltd.com
Website :	http://www.premiumtransmission.com
Head Office / Factory :	P.B. No. 5, Mumbai-Pune Road, Chinchwad, PUNE-411 019
Tel. No.:	91-20-27475141/42/43/44
Fax No.:	91-20-27450287 /27476601
E-Mail :	chugh.m.s.@petLimitedcom
Factory :	Unit II , B – 9 And B 10, Falta, Growth Centre, Sector – III, Flats 24 Pgs (South), Parganas – 743 604, West Bengal, India
Tel. No.:	91-3174-222230/31/32/33/37
Fax No.:	91-3174-222234
E-Mail :	sarkar.t.k@petLimitedcom
Factory :	G-56/57, MIDC Industrial Area, Chikalthana-431 210, P.B. No. 779, Aurangabad
Tel. No.:	91-240-2485521
Fax No.:	91-240-2485756
E-Mail :	Mohan.a.c@petLimitedcom
Factory :	31-P, MIDC Industrial Area, Chikalthana-431 210, Aurangabad
Tel. No.:	91-240-2482858
Fax No.:	91-240-2482857
Branches :	Located at : Ahmedabad Ranchi Nagpur Hyderabad Bangalore Kochi
Representative Offices :	Located at : Ludhiana Kanpur Indore Surat Raurkela Pune Vijayawada Coimbatore

DIRECTORS

Name :	Mr. Sunil Nawal Phatarphekar
Designation :	Director
Address :	A 64, Queen Apartments, 59, Pali Hill Bandra [West], Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	02.10.1963
Date of Appointment :	08.06.2004
Name :	Mr. B. Hariharan
Designation :	Director
Address :	F 201, 202 Polaris, Satelite Tower, Koregaon Park, Pune – 411036, Maharashtra, India
Date of Birth/Age :	18.04.1957
Date of Appointment :	20.07.2000
Name :	Mr. Mohan Brij Thapar
Designation :	Director
Address :	Gangotri 60 Avdhoot lane, Rasnenagar, Savedi – 414003, Ahmednagar, Maharashtra, India
Date of Birth/Age :	08.10.1922
Date of Appointment :	06.05.2004
Name :	Mr. Kumar Ramesh Daivamoney
Designation :	Managing Director
Address :	Flat 7 Building No. 2, River Crest Apartment, 14 A Boat Club Road, Pune – 411001, Maharashtra, India
Date of Birth/Age :	29.04.1947
Date of Appointment :	06.05.2004
Name :	Mr. Chandraprakash Badrilal Dusad
Designation :	Director
Address :	Gangotri , 60 Avdhoot Lane, sasane Nagar, savedi – 414 003, Ahmednagar, Maharashtra
Date of Birth/Age :	28.12.1937
Date of Appointment :	08.06.2004
Name :	Mr. Bimalendrarun Kumar Mukherjee
Designation :	Director
Address :	E 16 Pushpanjali Farm Bijwasan, New Delhi – 110061, India
Date of Birth/Age :	26.09.1937
Date of Appointment :	08.06.2004
Name :	Mr. Suresh Kumar Jain
Designation :	Director
Address :	159, Siddharth Enclave, Ashram Chowk, Ring Road, New Delhi – 110014, India
Date of Birth/Age :	12.03.1957
Date of Appointment :	09.11.2006
Other Directorship :	Deoria Sugar Mills Limited U15421WB1936PLC008512 Tula Traders Private Limited U51900MH2004PTC076764 Bharat Projects Private Limited U74899DL1995PTC066073 Pembril Industrial and Engineering Company Private Limited U29291MH1973PTC016361
Name :	Mr. Tarun Kumar Mukharjee
Designation :	Director
Address :	C/o CG Coreel Logic Systems Limited, Surya Bhavan, 2nd Floor, 1181, Fergusson College Road, Pune – 400026
Date of Birth/Age :	26.09.1937
Date of Appointment :	08.06.2004
Name :	Mr. Sachin Gupta
Designation :	Director
Address :	RU – 462, Pitampura, Delhi – 110088, Maharashtra, India
Date of Birth/Age :	08.06.2004
Name :	Mr. Tapankumar Chattopadhyay
Designation :	Director
Address :	Flat No. 902, Building No. C -1, mont Vert Pristni off, Aundh road, Pune – 411 020, Maharashtra
Date of Birth/Age :	09.12.1938
Date of Appointment :	03.05.2007
Directorship in other companies:	CIN of the company: U29299MH1985PLC011250 Name of the company: Greaves Leasing Finance limited Designation: director CIN of the company: U2291MH1973PTC016361 Name of the company: Pembril Industrial And Engineering Company Private Limited Designation: Director.
Name :	Mr. Ratanlal Tikaram Goel
Designation :	Director
Address :	Shnati Sadan 151, mukund Nagar, Pune – 411 037, Maharashtra
Date of Birth/Age :	09.02.1962
Date of Appointment :	05.06.2004

KEY EXECUTIVES

Name :	Mr. Ratanlal Tikaram Goel
Designation :	Secretary
Address :	Shanti Sadan 151, Mukund Nagar, Pune – 411037, Maharashtra, India
Date of Birth/Age :	09.02.1962
Date of Appointment :	08.06.2004

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
DBH International Limited	2880000
Khandelwal S K	5
V Santhi Kumar	2
Bhudiraja Sandeep	2
Gulati Poonam	2
Hariharan B	2
Sharma Neerja	5
Aurora Vijay	2
Solaris Holding Private Limited	12896294
Marble Arch Investments PCC Limited	10000000
Total	25776314
Equity Share Breakup
Category	Percentage of Holding
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	38.79
Bodies corporate	61.20
Other top fifty shareholders	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of industrial gearboxes and fluid couplings

Item code	Product description
84839000	Industrial Gear
85013119	Geared Motors
84836020	Fluid Coupling
87081090	Auto Components

Export :

Countries:

Australia, China, Germany, Gulf countries, Indonesia, Malaysia, SAARC Countries, Singapore, South Africa, South Korea, USA, UK, Zambia

PRODUCTION STATUS

Particulars	Unit	Installed Capacity
AAC	Cum		--
Gear Boxes	Nos.		40000
Fluid Couplings	Nos.		2000
Geared Motors	Nos.		3600
Auto Components	Sets		40000

GENERAL INFORMATION

Bankers :	State Bank of India, Pune ICICI Bank, Pune Axis Bank Limited, 1262 / B, Sterling Plaza, Jangli Maharaj Road, Deccan Gymkhana, Pune – 411004, Maharashtra, India
Financial Institution:	Rabo India Finance Limited Address: 1-A, Janpath , New Delhi – 110 001 and corporate Office at forbes building , 2^nd Floor, Charanjit Rai Marg, Fort , Mumbai – 400 001, Maharashtra
Banking Relations :	Satisfactory
Auditors :
Name :	Sharp and Tannan Chartered Accountants
Address :	Ravindra Annexe, 194, Church gate Reclamation, Dinshaw Vachha Road, Mumbai – 400020, Maharashtra, India
Associates/Subsidiaries :	Deoria Sugar Mills Limited U15421WB1936PLC008512 Tula Traders Private Limited U51900MH2004PTC076764 Bharat Projects Private Limited U74899DL1995PTC066073 Pembril Industrial and Engineering Company Private Limited U29291MH1973PTC016361 D B H International Private Limited U74899DL1950PTC057209

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
26000000	Equity Shares	Rs. 10/- each	Rs.260.000 millions
3450000	Equity shares	Rs. 100/- each	Rs.345.000 millions
		Total	Rs.605.000millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
25776314	Equity Shares	Rs. 10/- each	Rs.257.763 millions
3408034	Equity shares	Rs. 100/- each	Rs.340.803 millions
		Total	Rs.598.566 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		30.06.2007 [ 12 months]	30.06.2006 [12 months]	30.06.2005 [12 months]
SHAREHOLDERS FUNDS
1] Share Capital		598.567	257.763	257.763
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		294.003	125.228	17.941
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		892.570	382.991	275.704
LOAN FUNDS
1] Secured Loans		355.305	345.814	355.556
2] Unsecured Loans		46.708	0.000	0.000
TOTAL BORROWING		402.013	345.814	355.556
DEFERRED TAX LIABILITIES		39.011	32.679	27.344
TOTAL		1333.594	761.484	658.604
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		692.685	489.771	452.718
Capital work-in-progress		10.399	3.754	2.671
INVESTMENT		340.803	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	316.874	259.215	247.991
	Sundry Debtors	517.962	391.887	247.447
	Cash & Bank Balances	57.917	83.881	113.661
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	49.978	56.982	52.166
Total Current Assets		942.731	791.965	661.265
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	541.828	430.763	338.798
	Provisions	111.196	93.243	119.252
Total Current Liabilities		653.024	524.006	458.050
Net Current Assets		289.707	267.959	203.215
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1333.594	761.484	658.604

PROFIT & LOSS ACCOUNT

PARTICULARS		30.06.2007 [ 12 months]	30.06.2006 [12 months]	30.06.2005 [12 months]
Sales Turnover		2129.024	1630.914	1181.062
Other Income		17.012	11.687	12.014
Total Income		2146.036	1642.601	1193.076
Profit/(Loss) Before Tax		408.315	317.810	187.863
Provision for Taxation		137.932	116.470	82.968
Profit/(Loss) After Tax		270.383	201.340	104.895
Export value		114.268	61.314	NA
Expenditures :
	Raw Material Consumed	1070.230	753.972	483.588
	Consumption of stores and spares parts	94.420	54.350	0.000
	Increase/(Decrease) in Finished Goods	[38.719]	1.098	0.000
	Salaries, Wages, Bonus, etc.	264.944	208.124	163.699
	Managerial Remuneration	5.260	3.351	3.289
	Payment to Auditors	0.805	0.667	0.739
	Interest	28.490	28.767	38.684
	Insurance Expenses	4.527	4.394	3.798
	Power & Fuel	40.915	31.978	133.999
	Depreciation & Amortization	52.113	36.539	0.000
	Other Expenditure	329.004	262.865	178.415
Total Expenditure		1851.989	1386.105	1006.211

KEY RATIOS

PARTICULARS		30.06.2007 [12 months]	30.06.2006 [12 months]	30.06.2005 [12 months]
PAT / Total Income	(%)	12.59	11.82	8.79
Net Profit Margin (PBT/Sales)	(%)	19.17	18.78	15.91
Return on Total Assets (PBT/Total Assets}	(%)	24.80	24.80	16.86
Return on Investment (ROI) (PBT/Networth)		0.45	0.83	0.68
Debt Equity Ratio (Total Liability/Networth)		1.18	2.27	2.95
Current Ratio (Current Asset/Current Liability)		1.44	1.51	1.44

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U01119DL1983PLC015615
Name of the company	PREMIUM ENERGY TRANSMISSION LIMITED
Address of the registered office or of the principal place of business in India of the company	Thapar House 124, Janpath, New Delhi – 110001, India
Type of charge	Movable Property
Particular of charge holder	Axis Bank Limited 1262 / B, Sterling Plaza, Jangli Maharaj Road, Deccan Gymkhana, Pune – 411004, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation of machinery an other movable fixed assets
Date of instrument Creating the charge	28.12.2006
Amount secured by the charge	Rs. 100.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest at the rate as may be communicated by the bank to the company from time to time with monthly rests on daily balances. Terms of repayment Repayment on demand Margin Margin of security as 1.3 times of loan amount or as may be agreed mutually by the company and the bank. Extent operation of the charge First charge on assets hypothecated
Short particulars of the property charged	Hypothecation in favour of the bank, the specific movable plant and machinery, both present and future viz. Hanel – Leanlift bearing storage system, victor CNC turing lathe, Emuk Gear shaping machine and gear grinding machine.

Corporation identity number or foreign company registrations number of the company	U01119DL1983PLC015615
Name of the company	PREMIUM ENERGY TRANSMISSION LIMITED
Address	Thapar House , 124, Janapathn, Delhi, India
This Form is for	Creation of charge
Type of Charges	Immovable property Movable property Book debts
Particular of the charge holder	Axis Bank Limited 1262 / B, Sterling Plaza, Jangli Maharaj Road, Deccan Gymkhana, Pune – 411004, Maharashtra, India Email ID: geetu.kalra@utibank.co.in
Nature or description of the instrument creating charge	Term loan agreement and general undertaking, indemnity for letter o0f credit
Date of the instrument creating charge	25.07.2007
Amount Secure by the charge	Rs. 150.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of interests: Interest to be charge PLR 3.50% presently at 11.50% p.a payable at monthly Term of repayment: Repayment to been made in quarterly installments. Repayment to being after one year from the dated of first disbursement. Margin: 25% commission on LC 50% Extent and operation of the charge: Term loan of Rs. 150.000 millions and letter of credit (inland import) for purchase / import of capital goods Rs. 100.000 millions sub limit of term loan of Rs. 150.000 millions Secured by capital goods purchase / imported under LC.
Shorts particulars of the Property charged	Extension of the first charge on fixed assets (present and future) including plant and machinery but excluding land building to provide a security cover at least 1.3 negative lien on land and building . The company shall route its receipts through our branch proportionate to our share in the company’s debts exposure. The bank shall have the right to adjust the cash flows towards debts servicing and capital goods purchase / imported under LC.

Name of the company	PREMIUM ENERGY TRANSMISSION LIMITED
Presented By	R T Goel, Company secretary
1) Date and description of instrument creating the change	Hypothecation deed dated 21.09.2004
2) Amount secured by the charge/amount owing on the securities of charge	Amount of Rs. 400.000 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	Description of fixed assets: The fixed movable assets of the borrower comprising plant and machinery, store, spares, parts, etc, both present and future whether lying or stored in or about or shall hereinafter from time to time during of the security of these present be brought in to or upon or be stored or be in or about of the borrower’s factories premises and godown situated at Chinchwad and Aurangabad, both in Maharashtra and Falta in west Bengal or wherever else the same may be held by any party to the order or disposition of the borrower or in the course of transit or on high seas or on order or delivery , howsoever or wheresoever in the possession of the borrower and either by way of substitution or addition. Description of current assets: The whole of the current assets of the borrower stock of raw materials , semi finished goods and finished goods., stores and spares not relating to plant and machinery (consumable stores spares), bills receivables, and book debts and all other movables , both present and future whether lying or stored or in about or shall hereinafter from time to time during of the security of these present be brought into or upon or be stored or be in or about of the borrower factories, premises godown situated at Chinchwad and Aurangabad, both in Maharashtra and falta in west Bengal or wherever else the same may be held by any party to the order or disposition of the borrower or in the course of transit or on high seas or on order or delivery , howsoever or wheresoever in the possession of the borrower and either by way of substitution or addition.
4) Gist of the terms and conditions and extent and operation of the charge.	Term loan tenor: door to door maturity of 5 years Interest Rate: @ 9 % p.a the interest will be reset at the end of every 12 months from the date of draw down based on RIF reference rate. Processing fees: 1% of the facility amount (one time) Principal Repayment: repayment in 18 (eighteen equal quarterly installments commencing 25^th March 2005) Prepayment: the facility has a lock in period of 2 years and subsequently prepayment shall be allowed only on interest dates Exclusive first charge on all assets of the power transmission division proposed to be acquired from greaves cotton limited. On occurrence of any event of default or potential event of default , the borrower undertake to provide or arrange for any additional security / protection / credit enhancement as deemed appropriate by the lender.
5) Name and Address and description of the person entitled to the charge.	Rabo India Finance Limited having registered office at 1-A, Janpath , New Delhi – 110 001 and corporate Office at forbes building , 2^nd Floor, Charanjit Rai Marg, Fort , Mumbai – 400 001, Maharashtra
6) Date and brief description of instrument modifying the charge	May 28, 2005, No instrument was executed. Mortgage was crested by the company in favour of Rabo India finance Private limited (Rabo) as and by way of constructive delivery of the title deeds with rabo in respect of borrower immovable properties / fixed assets situated at Aurangabad Unit III, Aurangabad Unit IV, plot No. 89 and B 10 and plot No. H1 and H2 at Falta and more particularly described in attached annexure I as and by way mortgage by deposit of title deed to secure the aforesaid term loan of Rs. 400.000 millions from rabo to the company with interest, compound interest, additional interest liquidated damages, premia on prepayment, cost, charges, expenses and other monies payable by the company to the Rabo.
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.	Rabo’s term Loan of Rs. 400.000 millions together with interest, additional interest liquidated damages, premia on prepayment, cost, charges, expenses and other monies payable by the company to the Rabo in terms of the earlier hypothecation deed the original charge is now also secured by the said mortgage by the deposit of title deed created by the company on the day on may 2005 in favour of Rabo.

FIXED ASSTES:

· Land And Buildings,

· Plant And Equipments,

· Furniture And Fixtures,

· Vehicles

· Computer And

· Office Equipments.

AS PER WEBSITE

Subject is a part of a large industrial conglomerate The Thapars. Major group of companies include Grompton Greaves, Greaves Cotton Limited, Ballarpur Industries etc.

Subject pioneered the manufacturing of gearboxes in India. The first unit under the name David Brown Greaves (India), to manufacture gearboxes in India was commissioned in the year 1960 at Pune (Near Mumbai) in India. It was a joint venture company between Greaves Cotton and Company limited and M/s David Brown U K. M/s Greaves Cotton and Company in the year bought over M/s David Brown Greaves (India) in the year 1993.

The second unit started its operation in the year 1993 at Falta - near kolkata (India). This unit manufactures worm/helical and application specific gear units.

The third unit at Aurangabad to manufacture PEMBRIL fluid couplings and geared motor started in the year 1978 as a joint venture with M/s Fluidrive UK. Greaves Cotton and Company then bought over this company in the year 2003.

The fourth unit at Aurangabad to manufacture auto components started in the year 1960. Greaves Cotton and Company bought over this company in the year 2003.

Units manufacturing gearboxes and fluid couplings are ISO 9001 certified for many years, supplying quality power transmission products to various developed countries like Australia, China, Germany, Gulf countries, Indonesia, Malaysia, SAARC Countries, Singapore, South Africa, South Korea, USA, UK, Zambia.

Subject bought over all the four units in the year 2004 from M/s Greaves Cotton and Company limited.

Subject has sales and service offices all over India and caters to the overseas requirements through their
dealer network. Qualified and experienced application engineers deployed all over India to provide Total power transmission solution.

CMT REPORT (Corruption, Money Laundering and 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.39.38
UK Pound	1	Rs.80.96
Euro	1	Rs.56.81

SCORE and 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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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 and 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 and 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

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