MIRA INFORM REPORT

Report Date :

20.12.2007

IDENTIFICATION DETAILS

Name :	LUBRIZOL INDIA PRIVATE LIMITED
Registered Office :	VIP House, 2^nd Floor, 88-C, Old Prabhadevi Road, Mumbai – 400025, Maharashtra
Country :	India
Financials (as on) :	31.12.2006
Date of Incorporation :	20.07.1966
Com. Reg. No.:	11-13538
CIN No.: [Company Identification No.]	U23201MH1966GOI013538
TAN No.: [Tax Deduction & Collection Account No.]	MUML04740B
PAN No.: [Permanent Account No.]	AAACL0126H
Legal Form :	Subject is a Private Limited Liability Company
Line of Business :	Manufacturing, Developing and Marketing of Chemical Additives systems for automotive and industrial Lubricants and Fuels.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 9000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	The company is no more a Government of India company due to disinvestment. Subject is a well-established company. Available information indicates high financial responsibility of the company. Payments are always correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office / Marketing Division :	VIP House, 2^nd Floor, 88-C, Old Prabhadevi Road, Mumbai – 400025, Maharashtra, India
Tel. No.:	91-22-24300672/0784/1856/2315/24222062/24302315
Fax No.:	91-22-24300251/24370994/24366097
E-Mail :	pvs@lubrizol.com indulekha.goods@lubrizol.com
Website :	1. http://www.petroleum.nic.in/lil.htm 2. http://www.lubrizolindia.com
Regional Office :	NEW DELHI: 524/525, 5^th Floor, Core - 6, Scope Complex, Lodhi Road, New Delhi – 110 003, India Tel No: 91-11-24361317 Fax No: 91-11-24362879 / 24361629 MADRAS/CHENNAI : Apeejay Business Center, Apeejay House, 12, Haddows Road, Nungambakkam, Chennai – 600 006 Tel: 044-2822 4949 CALCUTTA : Room no.-7, 6th floor Shantiniketan, 8, Carnac Street, Calcutta-700017. Tel : 91-33-22824063. Fax : 91-33-22825782
Factory 1 / Manufacturing Plant / Technical Support Facility:	9/3, Thane Belapur Road, Turbhe, District Thane, Navi Mumbai – 400 705, Maharashtra, India
Tel. No.:	91-22-27672568
Fax No.:	91-22-27672155
Factory 2 :	T-6, MIDC, Industrial Area, Taloja, District Raigad, Maharashtra, India
Tel. No.:	91-22-27410813
Fax No.:	91-22-27410910
Branches :	Y Apeejay Business Center, Apeejay House, 12, Haddows Road, Nungambakkam, Chennai – 600 006 Tel: 91-44-28224949 Y Temple Tower, 2^nd Floor, Nandanam, 476, Anna Salai, Chennai – 600 035, Tamilnadu Tel. 91-44-24346451 Fax. 91-44-24330943 Y Room No. 7, 6^th Floor, Shantiniketan, 8, Carnac Street, Kolkata – 700 017, West Bengal Tel. 91-33-22824063 Fax. 91-33-22825782

DIRECTORS

Name		Dr. John Battersby
Designation		Chairman & Managing Director
Date of Birth		11.03.1945
Name		Mr. John A. Thomas
Designation		Director
Date of Birth		02.07.1938
Name		Mr. Jawahar L. Zutshi
Designation		Director
Address		K -33, Green Park, New Delhi – 110016
Date of Birth		04.01.1937
Date of Appointment		31.03.2000
Name		Mr. James Hambrick
Designation		Director
Date of Birth		06.02.1955
Name		Mr. Ramchandra Seshamani
Designation		Director
Date of Birth		26.02.1945
Name		Mr. Banshi D. Soni
Designation		Whole Time Director
Address		A- 172, Twin Towers, Veer Savarkar Marg, Mumbai – 400025, Maharashtra, India
Date of Birth		26.06.1945
Date of Appointment		03.04.2001
Date of Ceasing		30.06.2005
Election Commission Identity Card No. :		DL/03/031/027011
Name		Mr. Dilip Ramchandra Teredesai
Designation		Managing Director
Address		301, Royal Accord, 15, Gokhale Road [North], Dadar, Mumbai – 400028, Maharashtra, India
Date of Birth		18.05.1947
Date of Appointment		01.04.2002
Name		Mr. Madhukar Ramniklal Jethalal Kumbhani
Designation		Whole Time Director
Address		Mumbai – 400049, Maharashtra, India
Date of Birth		04.02.1950
Date of Appointment		01.04.2002
Name		Mr. Darius C. Shroff
Designation		Director
Address		Moonlight, Flat No. 8, 158, M. Karve Road, Churchgate, Mumbai – 400020, Maharashtra, India
Date of Birth		08.08.1944
Date of Appointment		01.04.2002
Election Commission Identity Card No.		MT/04/019/261274
Name		Mr. Sugavanam Padmanabhan
Designation		Director
Address		C – 370, Defence Colony, New Delhi – 110026
Date of Birth		03.06.1945
Date of Appointment		08.04.2002
Name		Mr. Gregory R. Lewis
Designation		Director
Name		Mr. Nirmalendu Kshetra Mohon Biswas
Designation		Whole Time Director
Address		42, Vikas Finlay Tower, Lower Parel, Mumbai – 400033, Maharashtra, India
Date of Birth		14.02.1947
Date of Appointment		01.07.2005
Name		Mr. Narasimhan Varadarajan Serangulam
Designation		Director
Address		835, Asiad Village, New Delhi – 110016
Date of Birth		07.04.1951
Name		Mr. Brij Mohan Shyam Sunder Bansal
Designation		Director
Address		837, Asiad Village, New Delhi – 110049, India
Date of Birth		04.01.1951
Date of Appointment		25.10.2005
Name		Mr. David James Fries
Designation		Director
Address		The Lubrizol Corporation, 29400 Lakeland Boulevard Wickliffe, Ohio, U.S.A.
Date of Birth		14.02.1959
Date of Appointment		22.07.2004
Name		Mr. Biswas Kshetramohon Nirmalendu
Designation		Whole Time Director
Address		42, Vikas Finlay Tower, Lower Parel, Mumbai – 400033, Maharashtra, India
PAN No.		00237378
Name		Mr. Vinod Ram Sharma
Designation		Director
Address		Flat No. 7 [South Block], B. K. Apartment, B – 17 C, Nichols Road, Chetpet, Chennai – 600031, Tamilnadu, India
PAN No.		00399310
Name :	Mr. Anand Kumar
Designation :	director
Address :	83 Institutional AREA , Indian Oil Institute Of Petroleum Management Sector 18, Gurgaon – 122 001, Haryana, India
Date of Birth/Age :	28.06.1950
Date of Appointment :	03.09.2007
Name :	Mr. Ratanla Tikaram Goel
Designation :	Director
Address :	Shanti Sadan, 151, Mukund Nagar, Pune – 411 037, Maharashtra, India
Date Of Birth/Age :	09.02.1962
Date Of Appointment :	30.09.2003

KEY EXECUTIVES

Name	Mr. R. T. Goel
Designation	Company Secretary
Name	Ms. Indulekha Nitin Godse
Designation	Secretary
Address	JN – 4/10/14, Blue Haven, Sector 10, Vashi, Navi Mumbai – 400703, Maharashtra, India
Date of Birth	02.09.1963
Date of Appointment	01.12.2004

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Indian Oil Corporation Limited	960000

Equity Shares Breakup (Percentage of Total Equity):

Sr No.	Category	Percentage
1	Government Companies	50.00
2	Foreign holdings (Foreign institutional investor, Foreign companies, Foreign financial institution, Non – resident Indian or Overseas corporate bodies or Others.	50.00

BUSINESS DETAILS

Line of Business :	Manufacturing, Developing and Marketing of Chemical Additives systems for automotive and industrial Lubricants and Fuels.
Products :	· Engine Oil – Additives · Viscosity Index- Improvers and Pour Point Depressant · Industrial Oil – Additives Product Code No. 38.1100
Brand Names :	“ Lubrizol”

PRODUCTION STATUS as on 31.12.2004:

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Chemical additives inclusive of : Dispersant Additives, Extreme	MTPA	47000	60000	31796
Raw materials (Isobutylene)	ML	3000	3000	--

GENERAL INFORMATION

No. of Employees :	Around 699
Bankers :	· State Bank of India Commercial Branch, Justice B N Vaidya Marg, Mumbai – 400 023, Maharashtra, India · Bank of India Mumbai, Maharashtra · ICICI Bank Limited Mumbai, Maharashtra
Banking Relations :	Good
Auditors :	Deloitte Haskins & Sells Chartered Accountants Plot No. 12, Dr. Annie Besant Road, Opp Shivsagar Estate, Worli, Mumbai-400018, Maharashtra, India
Parent Company / Joint Venture:	Lubrizol Corporation, U.S.A. Indian Oil Corporation Limited
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1920000	Equity Shares	Rs. 100/- Each	Rs.192.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value		Amount
1920000	Equity Shares	Rs. 100/- Each	Rs.192.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2006	31.12.2005	31.12.2004
SHAREHOLDERS FUNDS
1] Share Capital		192.000	192.000	192.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1913.023	1896.789	1861.645
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2105.023	2088.789	2053.645
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.044	0.045	0.044
TOTAL BORROWING		0.044	0.045	0.044
DEFERRED TAX LIABILITIES		100.818	100.635	124.431
TOTAL		2205.885	2189.469	2178.120
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		736.925	758.014	776.985
Capital work-in-progress		57.275	25.608	42.585
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1158.855	1045.121	809.232
	Sundry Debtors	595.934	380.898	481.996
	Cash & Bank Balances	88.570	285.635	383.947
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	310.864	201.269	197.225
Total Current Assets		2154.223	1912.923	1872.400
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	598.609	428.910	295.669
	Provisions	167.092	117.556	280.480
Total Current Liabilities		765.701	546.466	576.149
Net Current Assets		1388.522	1366.457	1296.251
MISCELLANEOUS EXPENSES		23.163	39.390	62.299
TOTAL		2205.885	2189.469	2178.120

PROFIT & LOSS ACCOUNT

PARTICULARS		31.12.2006	31.12.2005	31.12.2004
Sales Turnover		4254.075	3565.271	2751.460
Other Income		0.000	0.000	0.000
Total Income		4254.075	3565.271	2751.460
Profit/(Loss) Before Tax		197.135	465.265	380.105
Provision for Taxation		0.000	0.000	137.981
Profit/(Loss) After Tax		197.135	465.265	242.124
Export Value		NA	NA	130.244
Import Value		NA	NA	641.343
Expenditures :
	Interest	0.213	0.374	2371.355
	Depreciation & Amortization	90.664	86.601
	Other Expenditure	3966.063	3013.031
Total Expenditure		4056.940	3100.006	2371.355

KEY RATIOS

PARTICULARS		31.12.2006	31.12.2005	31.12.2004
PAT / Total Income	(%)	4.63	13.04	8.79
Net Profit Margin (PBT/Sales)	(%)	4.63	13.04	13.81
Return on Total Assets (PBT/Total Assets}	(%)	6.68	17.25	14.34
Return on Investment (ROI) (PBT/Networth)		0.09	0.22	0.18
Debt Equity Ratio (Total Liability/Networth)		0.38	0.26	0.28
Current Ratio (Current Asset/Current Liability)		2.81	3.50	3.24

LOCAL AGENCY FURTHER INFORMATION

FIXED ASSETS

· Leasehold Land,

· Buildings,

· Plant And Machinery,

· Electrical Installations,

· Furniture And Fixtures,

· Office Appliance,

· Canteen And Other Equipment,

· Vehicles

FORM 8:-

Name of the company	LUBRIZOL INDIA LIMITED
Presented By	The Manager (Credit), State Bank of India, commercial Branch, Justice GN Vaidya Marg, Mumbai 0 400 023m, Maharashtra ,India
1) Date and description of instrument creating the change	Agreement for Cash Credit , hypothecation of goods, debts and asset (Form K Special)
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 100.000 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	The whole of the borrowers stocks of raw materials , finished goods, stock in process , stores, spares which now or hereafter from time to time during this security shall be brought into stored or be in or about the borrowers godowns or premises at Bombay or wherever else the same may be including any such goods in course of transit or delivery (hereinafter called ‘the said goods’) and secondly all the borrowers present and future book debts, outstanding monies, receivables , claims bills, contracts , engagements, securities , Investment, rights and assets (hereinafter called the said debts and assets’)
4) Gist of the terms and conditions and extent and operation of the charge.	The borrowers goods debts and assets as detailed in Items No. 3 hereof are hereby hypothecated to the bank and its assigns by way of first charge subject however to the security constituted by form K dated 30.06.1976 for Rs. 2.500 millions in respect of guarantee limit (subsequently enhanced to Rs. 5.000 millions by supplemental agreement dated 09.10.1985 2) Form K (Spl ) dated 09.05.1978 for Rs. 40.000 millions in respect of letters of credit limit (subsequently enhanced to Rs. 60.000 millions by supplemental agreement dated 09.10.1985) as security for the payment by the borrower to the bank on demand of all moneys at any time payable by the borrowers to the bank in respect of the said cash credit account and also as security for the payment and discharge of all indebtedness or liability of the borrowers to the ban kin respect of any bills of exchange , promissory note or instrument at any time drawn, made , accepted or endorsed by the borrowers solely or jointly with others which the bank may discount or become interested in together with all interest , discoputn , commission charges , costs (as between Attorney and Client) and expenses payable to or incurred by the bank in relation thereto. The borrower agrees that interest at the rate of one half per cent below state Bank Advance Rate with a minium of Sixteen percent per annum shall be calculated on the daily balance payable by7 the borrowers to the bank and charges in account quarterly in accordance with the practice of the bank. The borrower further agreesa that the bank shall not be required to make or continue advances on the said cash credit account otherwiswe than at the bank discretion and in no circumstances to an amount at any one time exceeding with interest thereon the suym of rs. 100.000 millions or a sum equal to 70% of the normal current markety value of imported and indigenous raw materials, finished goods, stock in process, stores and spares , 65% of the value of book debts due from Governemtn parties 55% of the value of book debts due from the private parties which ever is less. The borrower undertake not to create any mortgage , charge, liebn or encumbrance upon or over the same or any part thereof except to the bank nor suffer any such mortgage , charge, lien or encumbrance to affect the same or any part thereof nor do or allow anything that may prejudice this security. The borrower affirms that all present goods, debts and assets presently hypothecated as aforesaid are the absolute property of the borrower at the sole disposal of the borrower and free from any prior charge or encumbrance except the security constituted by the aforesaid agreement and that all future goods, debts and assets hereunder shall be likewise the unencumbered absolute and disposal property of the borrower except for the said charges created as aforesaid entitled to charge.
5) Name and Address and description of the person entitled to the charge.	State Bank of India Address: Commercial Branch, Justice G N Vaidya Marg, Mumbai – 400 023, Maharashtra, India

Name of the company

LUBRIZOL INDIA PRIVATE LIMITED

Presented By

The Chief Manager (Credit), State Bank of India, commercial Branch, Justice GN Vaidya Marg, Mumbai - 400 023, Maharashtra ,India

1) Date and description of instrument creating the change

agreement of hypothecation of goods , and assets dated 03.05.1992

Letter regarding the grant of individual limit within the overall limit dated 13.05.1992

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

Rs. 332.500 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

Hypothecation of all present and future goods book debts and all other movable assets of the borrower including documents of title to the goods outstanding moneys receivables including receivable4s by \way of cash assistance and / or cash incentives under the cash incentives scheme or any other customs / excise duties under the duty drawback credit scheme or any other scheme, bill, invoices, documents, contracts, insurance policies, guarantee, engagement, securities, investments and rights and the present machinery and lal future machinery belonging to or in the possession or under the control of the borrower wherever lying stored and kept and whether in possession of the borrower or of the bank or of any third party whether in India or elsewhere throughout the world (including all such goods, other movable assets as may be in course of shipment transit or delivery) (hereinafter referred to as “the said goods and assets”)

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

Interest at such rate as may be determined by the bank from time to time at the bank sole discretion on the basis of any internal credit rating accorded to the borrower or otherwise provided that the rate shall be subject to changes in the State Bank Advance Rate and / or changes in Interest rates prescribed by the Reserve Bank of India from time to time.

Nature of facility	Limit (Rs. in millions)	Rate of interest / Discount / Commission
Cash Credit	197.500	21.25% p.a
Letter Of Credit	120.000	N/A
Guarantee	15.000	N/A
Total	332.500

Margin:

Particulars of the item	Margin
Imported and indigenous raw materials , finished goods, Stock in process, stores and spares	35%
Book debts due from government parties	35%
Book debts due from private parties	45%

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

State Bank of India

Address: Commercial Branch, Justice B N Vaidya Marg, Mumbai – 400 023, Maharashtra, India

WEBSITE DETAILS:

The company was incorporated in 1966 in collaboration with The Lubrizol Corporation, U .S.A. (LC), world leaders in the additive business. At that time 60% of the subscribed equity capital of the company was held by the Government of India and the balance 40% was held by LC. On 31^st March 2000, the company was restructured with 50% of the shares held by LC and the balance of the shares being held by Indian Oil Corporation Limited.

Additives are complex synthetic chemicals which are added to petroleum fuels and lubricants to achieve the desired end use applications. Present day automotive and industrial oils owe their performance mainly to the chemical additive system added to them. The additive packages have components which perform certain distinctive functions such as detergency, dispersancy, oxidation stability, anti wear property, rust and corrosion inhibition, viscosity index improvement, etc. For each of these basic functions, there are many different approaches requiring different chemicals or combination of chemicals that may provide the necessary performance characteristics. Chemical additives are also used for improving the flow characteristics of crude oil and petroleum products.

Subject develops, manufactures and markets Additive Systems for Automotive and Industrial Lubricants and for the treatment of Fuels. Subject's main production unit is situated at Trans Thane-Belapur Industrial Complex near Navi Mumbai. The manufacturing operations of the company have received ISO-9002 and ISO 9001-2000 Certification from the Bureau Veritas Quality International as well as ISO-14001 and accreditation by implementing a comprehensive Environmental Management System.

The company was initially incorporated as a 'Private Limited' Company. By virtue of Section 43-A of the Companies Act, it became a Deemed Public Limited Company with effect from 27th December 1966. The Companies (Amendment) Act, 2000 (effective 13th December 2000), abolished the concept of 'Deemed Public Company', and accordingly, Subject reverted to a 'Private Limited Company' with effect from 13th March 2001.

Subject is one of the very few companies outside U.S.A. and Europe with comprehensive manufacturing infrastructure for the development and production of fuel and lubricant additives.

The management control of the company with The Lubrizol Corporation (NYSE:LZ) who is a global provider of speciality additives and fluid technologies. These high performance technologies focus on chemicals, systems and services for transportation and industry .The company's customers use its technology to enhance a wide variety of end use products, including engine lubricants and fuel; gear oil and other vehicle related fluids; haudralic fluids and emission control systems; greases and industrial fluids; personal care products and industrial cleaners; paints, coating and inks; and mining chemicals. Lubrizol was founded in 1928 and owns and operates 34 manufacturing plants in 15 countries. The Wickliffe, Ohio based company has 50 Sales and Technical offices and more than 5000 employees work-wide. Its three research centres are located in Wickliffe, Ohio, Hazelwood, England and Kinuuva, Japan.

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 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.39.49
UK Pound	1	Rs.78.33
Euro	1	Rs.56.78

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		62

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