MIRA INFORM REPORT

Report Date :

01.01.2007

IDENTIFICATION DETAILS

Name :	GARWARE ELASTOMERICS LIMITED
Registered Office :	Plot No. 11, Block D1, MIDC, Chinchwad, Pune – 411 019, Maharashtra, India.
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	25.10.1975
Com. Reg. No.:	11-18620
CIN No.: [Company Identification No.]	U17113MH1975PLC018620
TAN No.: [Tax Deduction & Collection Account No.]	PNEB02887D
PAN No.: [Permanent Account No.]	AABCG0362P
Legal Form :	A closely held public limited liability company
Line of Business :	Manufacturer, trader, importer, exporter and dealer of heat resistance rubber elastic tapes.

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 900000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of Garware Group, a well know industrial house having fine track. Their trade relations are fair. Financial position is good. Payments are correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions. It can be regarded as a promising business partner in a medium to long – run.

LOCATIONS

Registered Office :	Plot No. 11, Block D1, MIDC, Chinchwad, Pune – 411 019, Maharashtra, India.
Tel. No.:	91-20-27473931 / 27473932
Fax No.:	91-20-27473645
E-Mail :	gelpune@vsnl.com
Website :	http://www.gelindia.com
Mumbai Office :	Chowpatty Chambers, ground Floor, Sandhurst Brige, Mumbai-400007
Factory 1 :	Plot No. C-2, MIDC, Wai District Satara – 412 803, Maharashtra
Tel. No.:	91-2167-265107 / 8
Fax No.:	91-2167-265106
E-Mail :	gelpune@vsnl.com
Distributors & Agents	Located at : Argentina, Austria, Bangladesh, Canada, Chile, Mauritius, Morocco, Singapore, South Africa, Sri Lanka, Thailand, Tunisia, UK and USA.

DIRECTORS

Name :	Mr. Ramesh B. Garware
Designation :	Chairman
Address :	Ramesh Garware Form, NDA Road, Khadakwasala, Pune – 411 003, Maharashtra
Date of Birth/Age :	14^TH October, 1940
Date of Appointment :	25^th October, 1975
Name :	Mr. Shripad M. Kuvelkar
Designation :	Vice – Chairman
Address :	111-B, Paradise Apartments, 44, Nepean Sea Road, Mumbai – 400 036
Date of Birth/Age :	15^th February, 1935
Date of Appointment :	25^th October, 1975
Name :	Mr. Ramesh M. Telang
Designation :	Director
Address :	122/2. OM Radha Kunj, Opp. Kamla Nehru Park, Pune – 411 004, Maharashtra
Date of Birth/Age :	04^th April, 1942
Date of Appointment :	30^th March, 1975
Name :	Ms. G. P. Jategaonkar
Designation :	Director
Address :	4, Gulmohar Villa I, 16, Gulmohar Park, Aundh, Pune – 411 004, Maharashtra
Date of Birth/Age :	17^th August, 1934
Date of Appointment :	26^th June, 1997
Name :	Mr. S. P. Kulkarni
Designation :	Director
Address :	“Swapna”, 4, Vijaynagar Colony, Pune – 411 030, Maharashtra
Date of Birth/Age :	14^th August, 1949
Date of Appointment :	22^nd September, 2001

Name :	Mr. Ibanez Garware
Designation :	Director
Address :	Ramesh Garware, P Box No. 3 NDA Road, Khadakwasla, Pune-411023
Date of Birth/Age :	25^th September, 1970
Date of Appointment :	30^th May, 2003
Name :	Diya Garware Ibanez
Designation :	Director
Address :	Ramesh Garware, P Box No. 3 NDA Road, Khadakwasla, Pune-411023
Name :	S P Raykar
Designation :	Chief Financial Officer and Company Secretary

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
RSDV Investments	1471801
Suramex EXIM Private Limited	26168
RSDV Finance Company Private Limited	287000
CEE BEE GEE Investment Company Private Limited	240000
Garware Wall Ropes	1478300
LELE B Vinayak	350000
Countour Ventures	1410000
Garware Capital Market Limited	356000
Ramesh B Garware	1065531
Ramesh B Garware	400000
Total	7084800

BUSINESS DETAILS

Line of Business :	Manufacturer, trader, importer, exporter and dealer of heat resistance rubber elastic tapes.
Products :	v Heat resistant v Tension tapes v Sheets and threads v Pneumatic v Electronic Gauges v Gauging Fixtures and Accessories

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Heat resistant, Tension tapes, Sheet and threads	MT	2550	2848
Tiles, Rubbers	MT		249

GENERAL INFORMATION

No. of Employees :

300

Bankers :

v Bank of India, Corporate Banking Branch, University road, Pune-411005

v Bank of Maharashtra, Industrial Finance Branch, S Nagar, Pune-411005

v UTI Bank Limited

v The Vysya Bank Limited, Corporate Banking Branch, Mantri Court, Pune – 411 004, Maharashtra

v Bank of Baroda

Facilities :

SECURED LOAN	Rs in millions
Bank of India	21.872
ICICI Bank	1.364
Citicorp Maruti finance Limited	0.408
ABN Amro Bank	0.000
Working capital limits
Bank of India	(0.364)
Bank of Maharashtra	(0.236)
UTI Bank Limited	6.502
Bank of Baroda	(0.123)

Banking Relations :	Satisfactory
Auditors :	Gokhale Tanksale & Ghatpande Chartered Accountants
Address:	Madhukosh, HAE Co-operative Society, Karve Road, Pune – 411 038, Maharashtra
Tel. No.:	91-20-5383004
Mobile No.:	91-20-5380074
E-Mail :	suneel@pnz.vsnl.net.in
Associates/Subsidiaries :	RBG Group of Companies

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
9000000	Equity shares	Rs. 10 each	Rs. 90.000 millions
1000000	Unclassified shares	Rs. 10 each	Rs. 10.000 millions
	Total		Rs. 100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7084800	Equity shares	Rs. 10 each	Rs. 70.848 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		70.848	70.848	78.688
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		149.621	146.459	143.139
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		220.469	217.307	221.827
LOAN FUNDS
1] Secured Loans		29.423	115.625	113.849
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		29.423	115.625	113.849
DEFERRED TAX LIABILITIES		9.915	7.847	7.486
TOTAL		259.807	340.779	343.162
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		87.701	88.910	102.820
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		13.086	13.086	13.086
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories			117.735
	Sundry Debtors			92.827
	Cash & Bank Balances	182.301	336.049	4.523
	Other Current Assets			0.000
	Loans & Advances			105.242
Total Current Assets		182.301	336.049	320.327
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	23.281	97.266	72.528
	Provisions			20.543
Total Current Liabilities		23.281	97.266	93.071
Net Current Assets		159.020	238.783	227.256
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		259.807	340.779	343.162

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	341.503	478.882	461.769
Profit/(Loss) Before Tax	15.511	31.749	67.806
Provision for Taxation	4.339	0.648	14.612
Profit/(Loss) After Tax	11.172	31.101	53.194
Export Value	NA	NA	306.991
Import Value	NA	NA	101.213
Total Expenditure	325.991	447.133	393.961

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004	31.03.2003
PAT / Total Income	(%)	3.27	6.49	11.51
Net Profit Margin (PBT/Sales)	(%)	4.54	6.62	14.68
Return on Total Assets (PBT/Total Assets}	(%)	5.74	7.47	16.02
Return on Investment (ROI) (PBT/Networth)		0.07	0.14	0.30
Debt Equity Ratio (Total Liability/Networth)		0.23	0.97	0.93
Current Ratio (Current Asset/Current Liability)		7.83	3.45	3.44

LOCAL AGENCY FURTHER INFORMATION

Fixed assets :

v Land

v Building / Premises

v Plant and Machinery

v Furniture an fixture

v Vehicles

Product description : Heat Resistant Tension Tapes and Threads

ITC Code : 4008.21

The year under Review :

During the year under review, the company’s total revenue amounted to Rs. 341.500 millions resulting in a Net Profit of Rs. 15.500 millions (Previous Years Rs. 31.700 millions) after providing for depreciation of Rs. 11.100 millions (Previous Years Rs. 19.500 millions) interest of Rs. 5.800 millions (Previous years Rs. 10.500 millions) Loss of Rs. 3.300 millions (Previous Years Rs. 11.200 millions) on account of sale / impairment of Fixed Assets.

Interim Dividend :

The Board of Director at its meeting held on 21^st March, 2005, declared an interim dividend @ Rs. 1/- per share (i.e. 10 %) on 7084800 Equity Shares of Rs. 10/- each fully paid up amounting to Rs. 7.084 millions and the entire amount of interim dividend and the tax thereon was paid by 31^st March, 2005. the director do not recommend any final dividend share am outing to Rs. 14.169 millions the shareholders are requested to confirm the payments of interim dividend.

GEL, an ISO 9001 : 2000 Company is the second largest manufacturer of Heat Resistant Rubber Elastic Tapes in the world, offering products as per international standards and keen to serve major manufacturers and dealers all over the world.

Experiences:

Their state of the art facilities set on 13 acres of land enable us to manufacture quality Elastic Rubber Tapes of various widths, thickness, surface finishes, colours and elasticity to meet customer specifications and to suit various applications.

Their In house Research and Development facilities, with world class equipments allow us to deliver consistent quality products to their customers time and again.

Elastic Rubber Tapes are festooned in 7.5 kg (16 lbs) boxes in continuous length to avoid tangling and breaking during sewing.

These Boxes are mounted on wodden pallets, edge boards are put from all sides to make it a unitized mass.

Company:

Garware Elastomerics Limited is a part of the multimillion-dollar RBG Group of companies that has interests in synthetic ropes, twines, nets, elastic rubber tapes, software, financial services and infrastructure building.

Established in 1995, Garware Elastomerics has quickly risen to a commanding global position in the manufacture of Elastic Rubber Tapes for a variety of applications. Garware Elastomerics delivers significant volumes of high quality Elastic Rubber Tapes to customers across the world, including some of the biggest names in the apparel, home textiles, medical disposables and sports industries.

Awards & Accreditations:

ISO 9001 : 2000

OEKO-TEX

Distributors and Agents:

• Argentina
• Australia
• Bangladesh
• Canada
• Chile
• Costa Rica
• Dominican Republic
• France
• Honduras
• India
• Israel
• Mauritius
• Morocco
• Singapore
• South Africa
• Sri Lanka
• Thailand
• Tunisia
• Turkey
• UK
• USA

1) Date and description of instrument creating the change

26^th March, 1996

Hypothecation of tangible moveable property

Charge and Hypothecation of Book Debts.

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

Rs. 13.500 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

All tangible moveable assets, including

Raw Material – Natural rubber

Various chemicals

Finished goods tension tapes and square rubber threads

Work- in- progress

Stock and consumables on pari passu basis.

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

Repayment on demand by Bank

Rate of interest 20.25 % p. a.

In case of default, Bank authorized to take possession of the goods

Hypothecation applicable to future movable assets also

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

Bank of India

Industrial finance Branch, LIC building, 6/7 Shivajinagar, Pune-411005

Date and brief description of instrument modifying the charge

Not Applicable

Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Not Applicable

1) Date and description of instrument creating the change

6^th July, 1998

Agreement relating to opening of an irrevocable without recourse letter of credit

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

Rs. 10.400 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 upon all goods and documents of title to good and other documents covered undser the credit which may have been already delivered or shall be hereafter delivered into Bank’s possession or into the possession of its agents by the Borrowers or by any person, firm or company on the borrowers behalf as result of Bank opening the credit or in connection with the transaction hereunder.

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

1. Interest shall be charged on the outstanding(s) in the accounts opened in respect of aforesaid credit facility at such rate(s) as may be determined by the bank from time to time on the basis of internal credit rating accorded to the borrower.
2. . The borrower shall deposit sufficient cash or other security as may be acceptable to the bank as margin money as stipulated by the bank
3. The borrower shall repay to the bank forthwith, on demand, the balance or balances then outstanding and owing to the bank under the borrowers accounts or accounts in the respect of all or such facilities, as may be indicated by the bank, together with interest, costs, charges, and expenses due in respect of thereof.

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

Bank of Maharashtra

Industrial Finance Branch

F C Road

Pune – 411005

Date and brief description of instrument modifying the charge

Not Applicable

Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Not Applicable

1) Date and description of instrument creating the change

13^th August, 1996

Joint deed of Hypothecation Between Garware Elastomerics Limited and Bank of India, Vysya Bank, bank of Maharashtra and Cosmos Co-operative Bank (Collectively the said bank of bank of India consortium)

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

Funded Cash Credit	Rs. 45.000 millions
Non-funded	Rs. 30.000 millions
Guarantees	Rs. 9.600 millions
Total Limits	Rs. 75.000 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 Current Assets of the Borrower, Namely Stocks of Raw Materials, Stocks in possess, Semi finished and finished goods, stores and soars not relating to plant an machinery, Bills receivable and book debts and all other moveable, both present and future whether now lying lose or in cases or which are now3 lying of stored in of about of from time to time during the connivance on the security of these presents be brought into or upon or be stored or be in or about of borrowers factories premises and godowns situate at C-2, MIDC, Wai, satara in the Stare of Maharashtra of whether else the same may be or be held by any party to the order or disposition of the borrower or in the course of transit or on high seas or an order or delivery howsoever and whosesoever in the possession of Borrower and either by way of substitution of addition.

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

Interest shall be charged on the outstanding(s) in the accounts opened in respect of aforesaid credit facility at such rate(s) as may be determined by the bank.

The borrower shall repay to the bank a first charge on all the current assets.

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

Bank of Maharashtra

Industrial Finance Branch

F C Road

Pune – 411005

Bank of India

Industrial finance Branch, LIC building, 6/7 Shivajinagar, Pune-411005

The Vysya Bank Limited

Industrial Finance Branch

Maruti Court

Pune-411004

Cosmos Co-Operative Bank Limited

Chinchwad Branch

Chinchwad

Pune-411019

Date and brief description of instrument modifying the charge

Joint deed of Hypothecation dated 26^th February, 2001 to meet company’s working capital requirement of existing facilities and replacement of cretin earlier banks facilities in favour of

Bank of Maharashtra

Industrial Finance Branch

F C Road

Pune – 411005

Bank of India

Industrial finance Branch, LIC building, 6/7 Shivajinagar, Pune-411005

Bank of Baroda

Mantri Court, 1^st Floor, 39, Dr. Ambedkar Road, P B No. 220, Pune-411001

UTI Bank Limited

J M Road, Pune

Hereafter refereed to as the Bank of India Consortium as per details set as under

Facility	BOI	BOB	BOM	UTI	Total
Fund Based
C/C stocks/ BD	30.000	0.500	20.000	--	50.000
Export Packing Credit	30.000	20.000	20.000	20.000	20.000
FBP/FB /N/FBD	30.000	20.000	20.000	20.000	20.000
Max. fund Based	30.000	20.000	20.000	20.000	20.000
Fund Based
Letter of Credit	24.000	11.500	10.400	17.500	63.400
Guarant (I/F)	29.500	8.500	8.100	17.500	63.600
Max. fund Based	29.500	20.000	18.500	17.500	85.500
Fund Based

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.

No Instrument executed on 17^th June, 1997 a joint mortgage of title deeds credited by the company by way of 2^nd charge as additional security in favoure of Bank of India’s consortium comprising Bank of India, Bank of Maharashtra and the Vyasa Bank Limited, The cosmos Co-operative bank Limited in respect of companie’s lands and other immovable property situate at C-2 Wai Industrial area within the Village limits of Wai Taluka and registration sub district satara with the Industrial credit and Investment corporation of India Limited acting as agent of bank of India and others, with an intent to create security by 2^nd charge in favoure of the said Banks on the said lands and building and structure thereon fixed plant and machinery fixtures and fittings, permantaly fastened to the earth or fasten ed to anything attached to earth both present and future.

Further modified on 17^th June, 1998 by One time Guarantee limit by the bank of India vide letter dated 1^st July, 1996 Rs. 4.000 Millions/-

The Gurateed limite issued by Bank od India ton be also secured by 2^nd charge on fixed assets.

Further modified on 26^th February, 2001 by joint deed of Hypothecation for availking of the facilities max. of rs. 1755 lacs (inclusive of both fond based and non-fund based) as per the details given above. Joint deed of Hypothecation is to cover the whole of the current assets of the company more particularly desribed in the Third schedule to the aforesaid Joint deed of Hypothecation dated 26^th February, 2001

The rate of interest shall be as stiputed by respective banks in respect of the facilities mentioned therein.

The company shall so long as the said facilities or any portion thereof will remain outstanding or unpaid the borrower will pay each of the said banks interest sand commission at the rated per annum as indicated in the consortium agreement.

All the above advances made and the balances due to the said Banks there under shall be repayable to the said Banks on demand including principal, interest and other money.

1) Date and description of instrument creating the change

1.Agreement of loan for overall limit

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

2. Agreement of Hypothecation of goods and Assets both dated 10^th December, 1999 and constituting a single charge Rs. 28.700 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

3. All parties and futures goods, book debts and all other movable assets including documents of title to the goods, outstanding moneys, receivables including by b way of cash assistance and or cash incentives scheme or any other scheme. Claims including claims by way of refund of customs/excise duties under Duty drawback credit scheme or any other scheme, billed invoice documents, contracts, insurance policies, guarantees , engagements, securities, Investments and rights and the present machinery in the Hypothecation Agreement and future machinery belongings to or in the possession or under the control of the borrower.

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

4. Interest shall be charged on the outstanding(s) in the accounts opened in respect of aforesaid credit facility at such rate(s) as may be determined by the bank from time to time on the basis of internal credit rating accorded to the borrower.
5. . The borrower shall deposit sufficient cash or other security as may be acceptable to the bank as margin money as stipulated by the bank
6. The borrower shall repay to the bank forthwith, on demand, the balance or balances then outstanding and owing to the bank under the borrowers accounts or accounts in the respect of all or such facilities, as may be indicated by the bank, together with interest, costs, charges, and expenses due in respect of thereof.

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

UTI Bank Limited

Sterling Plaza, Plot No. 126/B, Jangli Maharaj Road, Near Deccan Gymkhana, Pune 411 004

Date and brief description of instrument modifying the charge

Not Applicable

Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Not Applicable

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.44.23
UK Pound	1	Rs.86.91
Euro	1	Rs.58.26

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		63

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions