MIRA INFORM REPORT

Report Date :

1^st March, 2007

IDENTIFICATION DETAILS

Name :	RAMATEX TEXTILES INDUSTRIAL SDN BHD

Registered Office :	6a, Jalan Merah, Taman Bukit Pasir, 83000 Batu Pahat, Malaysia.

Country :	Malaysia

Financials (as on) :	31.12.2005

Date of Incorporation :	06.01.1990

Legal Form :	Private Limited Company

Line of Business :	Manufacturer of Yarn & Fabrics.

RATING & COMMENTS

MIRA’s Rating :

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

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

EXECUTIVE SUMMARY

LOCAL NO : 191854-P

COMPANY NAME : RAMATEX TEXTILES INDUSTRIAL SDN BHD

FORMER NAME : N/A

INCORPORATION DATE : 06/01/1990

COMPANY STATUS : EXIST

LEGAL STATUS : PRIVATE LIMITED COMPANY

LISTED STATUS : NO

REGISTERED ADDRESS : 6A, JALAN MERAH, TAMAN BUKIT PASIR, 83000 BATU PAHAT,

MALAYSIA.

BUSINESS ADDRESS : SRI GADING INDUSTRIAL ESTATE, 83000 BATU PAHAT,

JOHOR, MALAYSIA.

TEL NO : 07 - 4551225

FAX NO : 07 - 4559386

CONTACT PERSON : ALBERT LIM POH BOON (EXECUTIVE DIRECTOR)

INDUSTRY CODE : 17121

PRINCIPAL ACTIVITY : MANUFACTURING OF YARN, KNITTING, PRINTING & DYEING

OF FABRICS

AUTHORISED CAPITAL : MYR600,000,000.00 DIVIDED INTO

ORDINARY SHARE 600,000,000 OF MYR1.00 EACH.

ISSUED & PAID UP CAPITAL : MYR120,000,000.00 DIVIDED INTO

ORDINARY SHARE 80,000,000 CASH AND 40,000,000

OTHERWISE OF MYR1.00 EACH.

SALES : MYR352,083,237 [2005]

NET WORTH : MYR578,163,058 [2005]

M1000 OVERALL RANKING : 610 [2005]

M1000 INDUSTRY RANKING : 4 [2005]

STAFF STRENGTH : 1,820 [2007]

BANKER (S) : MALAYAN BANKING BHD

LITIGATION : CLEAR

FINANCIAL CONDITION : LIMITED

PAYMENT : AVERAGE

MANAGEMENT CAPABILITY : AVERAGE

COMMERCIAL RISK : LOW

CURRENCY EXPOSURE : HIGH

GENERAL REPUTATION : GOOD

INDUSTRY OUTLOOK : MARGINAL GROWTH

CREDIT RATING : A (please refer to appendix)

HISTORY / BACKGROUND

The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The SC is principally engaged in the (as a / as an) manufacturing of yarn, knitting, printing & dyeing of fabrics.

The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).

The SC is one of the Top Corporate Performers in the Malaysia 1000 (M1000) publication, a directory jointly published by Companies Commission of Malaysia (The Registrar Office), Minister of Domestic Trade and Consumer Affairs and our publication arm, BASIS Publications House Sdn Bhd.

According to the Malaysia 1000 publication, the SC's ranking are as follows :

YEAR 2005 2004

OVERALL RANKING 610 487

INDUSTRY RANKING 4 4

The ultimate holding company of the SC is RAMATEX BERHAD, a company incorporated in MALAYSIA.

The major shareholder(s) of the SC are shown as follows :

Name	Address	IC/PP/Loc No:	Shareholding
RAMATEX BHD	SRI GADING INDUSTRIAL ESTATE, 83000 BATU PAHAT, JOHOR, MALAYSIA.	372672	120,000,000
			120,000,000

+ Also Director

The SC interest in other companies (Subsidiaries/Associates) are shown as follows:

Local No.	Name	Percentage	As At:
202462	TAI WAH GARMENTS INDUSTRY SDN BHD	100.00	06/05/06

DIRECTORS

DIRECTOR 1

Name of Subject : MR. MA WONG CHING

Address : 15, JALAN MAHANG, TAMAN BATU PAHAT, 83000 BATU PAHAT,

JOHOR, MALAYSIA.

IC / PP No : 3861881

New IC No : 510426-01-5825

Date of Birth : 26/04/1951

Nationality : MALAYSIAN CHINESE

Date of Appointment : 06/01/1990

Qualification : GRADUATED IN 1971 MAJORING IN TEXTILE ENGINEERING FROM

FONG CHIA UNIVERSITY.

Working Experience : FOUNDER OF RAMATEX GROUP OF CO & IS CURRENTLY THE

MANAGING DIRECTOR. HAS MORE THAN 22 YEARS EDPERIENCE IN

THE TEXTILE INDUSTRY.

DIRECTOR 2

Name of Subject : MS. MA ON MAY

Address : 5, SIGLAP ROAD, #09-34 MANDARING GARDENS, 448908,

SINGAPORE.

IC / PP No : S2539365A

Nationality : SINGAPOREAN

Date of Appointment : 10/04/1991

DIRECTOR 3

Name of Subject : MR. LEE YAN MIN @ LIOW YOK MIN

Address : 70D, JALAN MERDEKA, 86500 BEKOK, JOHOR, MALAYSIA.

IC / PP No : 7635818

New IC No : 480724-01-5407

Nationality : MALAYSIAN CHINESE

Date of Appointment : 10/04/1991

Qualification : TEXTILE ENGINEER GRADUATED FROM FONG CHIA UNIVERSITY,

TAIWAN IN 1968 & TEXTILE MANUFACTURING FROM BRITISH

INSTITUTE OF ENGINEERING TECHNOLOGY IN 1972.

Working Experience : MORE THAN 26 YEARS EXPERIENCE IN YARN SPINNING.

RESPONSIBLE IN PLANNING & FORMULATING MANUFACTURING

RESOURCES WITH PRODUCTION TECHNOLOGY & QUALITY CONTROL

PROGRAMME FOR THE GROUP. INVOLVED IN THE MANAGING OF

YARN PRODUCTION & MARKETING OPERATIONS OF THE GROUP.

DIRECTOR 4

Name of Subject : MR. MA ONG KEE

Address : 15, JALAN MAHANG, TAMAN BATU PAHAT, 83000 BATU PAHAT,

JOHOR, MALAYSIA.

IC / PP No : A0013823

New IC No : 650302-01-6257

Nationality : MALAYSIAN CHINESE

Date of Appointment : 29/01/1996

Qualification : B.SC (BUSINESS) SOUTHERN ILLINOIS UNIVERSITY IN 1988.

Working Experience : FROM 1976 TO 1981 WORKED FOR YUNG WAH INDUSTRIAL CO PTE

LTD, A KNITTING, DYEING & GARMENT CO IN S'PORE AS MANAGER IN

THE KNITTING DEPT. ONE OF THE FOUNDER OF GIMMILL INDUSTRIAL

(M) SDN BHD. RESPONSIBLE FOR THE GROUP'S FINANCIAL & ADMIN

AFFAIRS & ASSIST THE BOARD IN FORMULATING & IMPLEMENTING

SPECIAL PROJECTS.

DIRECTOR 5

Name of Subject : MR. LIM POH BOON

Address : 1, JALAN JINGGA, TAMAN BUKIT PASIR, 83000 BATU PAHAT,

JOHOR, MALAYSIA.

IC / PP No : 4610277

New IC No : 540201-01-6015

Nationality : MALAYSIAN CHINESE

Date of Appointment : 28/10/1998

Qualification : B.CHEM (USM) IN 1977. MEMBER OF MALAYSIA INSTITUTE OF

CHEMISTRY SINCE 1982 & AUSTRALIA INSTITUTE OF INSURANCE

SINCE 1985. MEMBER OF THE TEXTILE INSTITUTE (UK) SINCE 1984.

Working Experience : SERVED 8 YEARS AS EXECUTIVE COMMITTEE MEMBER OF MTMA

FROM 1987 TO 1994. HE IS INVOLVED IN THE GROUP OVERALL DAILY

OPERATIONS, HUMAN RESOURCES DEVELOPMENT, R & D,

ADMINISTRATION. HAS MORE THAN 15 YEARS EXPERIENCE IN

PRODUCTION & MANAGEMENT OF THE GROUP.

DIRECTOR 6

Name of Subject : MR. MA OON KWONG

Address : 12, JALAN KERIS NAGA, TAMAN PASIFIK SELATAN, 83000 BATU

PAHAT, JOHOR, MALAYSIA.

IC / PP No : 6154889

New IC No : 610717-01-5487

Nationality : MALAYSIAN CHINESE

Date of Appointment : 26/04/2002

Qualification : DIP OF AGRICULTURAL MGTE IN 1980 FROM A TAIWANESE INSTITUTE

OF AGRICULTURE.

Working Experience : JOINED GIMMILL IN 1982 AS A SUPERVISOR & A MERCHANDISER

CHIEF IN GIMMILL GARMENT DIVISIION BETWEEN 1983 & 1984.

TRANSFERRED TO FULONG IN 1985 AS A FACTORY MANAGER.

RESPONSIBILITY INCLUDE ADMIN & MGTE OF FULONG.

MANAGEMENT

1) Name of Subject : ALBERT LIM POH BOON

Position : EXECUTIVE DIRECTOR

2) Name of Subject : MA WONG CHING

Position : MANAGING DIRECTOR

3) Name of Subject : LIM TECK SWEE

Position : ACCOUNT MANAGER

4) Name of Subject : CHENG HONG HUE

Position : HUMAN RESOURCE MANAGER

5) Name of Subject : ONG HAI PENG

Position : PRODUCTION MANAGER

AUDITOR

Auditor : ERNST & YOUNG

Auditors' Address : LOT 1, MENARA PERTAM, JALAN BBP 2, TAMAN BATU BERENDAM

PUTRA, 6TH FLOOR, 75350 BATU BERENDAM, MELAKA, MALAYSIA.

COMPANY SECRETARY

1) Company Secretary : MS. LEE CHAI KIEN

IC / PP No. : 4758347

New IC No. : 550318-01-5672

Address : 1, JALAN JINGGA, TAMAN BUKIT PASIR, 83000 BATU PAHAT,

JOHOR, MALAYSIA.

Date of Appointment : 06/01/1990

2) Company Secretary : MR. TAN KIAN HONG

IC / PP No. : 8186368

New IC No. : 550701-01-5229

Address : 15, JALAN BINTANG 14, TAMAN KOPERASI BAHAGIA, 83000

BATU PAHAT, JOHOR, MALAYSIA.

Date of Appointment : 06/01/1990

BANKING

Banking relations are maintained principally with :

1) Banker Name : MALAYAN BANKING BHD

The SC enjoys normal banking routine with above mentioned banker(s).

No adverse record was found during our investigation.

ENCUMBRANCE (S)

No encumbrance was found in our databank at the time of investigation.

LEGAL CHECK AGAINST THE SC

*A check has been conducted in our databank against the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia back dated since 1900. No legal action was found in our databank.

No winding up petition was found in our data bank

PAYMENT RECORD

SOURCES OF RAW MATERIALS :

Local : YES

Overseas : YES

Import Countries : JAPAN.

The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt [ ] Good [ ] Average [ X ]

Fair [ ] Poor [ ]

CLIENTELE

Local : YES

Domestic Markets : MALAYSIA.

Overseas : YES

Export Market : HONG KONG , GERMANY , AUSTRALIA , SOUTH AFRICA , CAMBODIA ,

SINGAPORE , MAURITIUS , UNITED STATES , NEW ZEALAND.

Credit Term : 30 DAYS.

Payment Mode : CHEQUES , LETTER OF CREDIT (LC) , TELEGRAPHIC TRANSFER (TT).

Type of Customer : TEXTILES AND GARMENT INDUSTRIES .

OPERATIONS

Products Manufactured : YARN & FABRICS

Competitor(s) : AMDB BHD

PENFABRIC SDN BHD

CNLT (FAR EAST) BHD

KAMUNTING TEXTILE INDUSTRIES SDN BHD

KANEBO MALAYSIA SPINNING MILLS SDN BHD

Ownership of premises : OWNED

Factory Size : 37.5 ACRES

Total Number of Employees :

YEAR 2007 2006 2005 2004

GROUP N/A N/A N/A N/A

COMPANY 1,820 1,800 1,796 1,825

Branch : NO

Other Information :

The SC is principally engaged in the (as a / as an) manufacturing of yarn, knitting, printing & dyeing of fabrics.

RECENT DEVELOPMENT

We have checked with the Malaysian National News Agency's (BERNAMA)database, but no latest development was noted in our investigation.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client : N/A

Current Telephone Number : 07-4551225

Match : N/A

Address Provided By Client : N/A

Current Address : SRI GADING INDUSTRIAL ESTATE, 83000 BATU

PAHAT, JOHOR, MALAYSIA.

Match : N/A

Latest Financial Accounts : YES

Other Investigations

On 26th February 2007, we conducted an interview with Mr Mohammad from he SC's Admin Department. He revealed some information pertaining to the SC.

FINANCIAL COMMENTS

Profitability :

Turnover : Erratic [ 2002-2005 ]

Profit / ( Loss ) before tax : Decreased [ 2002-2005 ]

Return on Shareholder Funds : Unfavourable [ 2.03% ]

Return on Net Assets : Unfavourable [ 4.18% ]

The fluctuating turnover reflects the fierce competition among the existing and new market players. The SC's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds and net assets could indicate that the SC's management was inefficient in utilizing its assets to generate returns.

Working Capital Control :

Stocks Ratio : Unfavourable [ 346 Days ]

Debtors Ratio : Favourable [ 33 Days ]

Creditors Ratio : Favourable [ 22 Days ]

The SC could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The favourable debtors' days could be due to the good credit control measures implemented by the SC. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. The SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity :

Liquid Ratio : Favourable [ 1.13 Times ]

Current Ratio : Favourable [ 2.02 Times ]

A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.

Solvency :

Interest Cover : Unfavourable [ 1.84 Times ]

Gearing Ratio : Favourable [ 0.60 Times ]

The SC's interest cover was low. If its profits fall or when interest rate rises, it may not be able to meet all its interest payment. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

Overall Assessment

The SC recorded lower profits as its turnover showed a erratic trend. The SC's management was unable to control its costs efficiently as its profit showed a downward trend.The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations.If there is a fall in the SC's profit or any increase in interest rate, the SC may not be able to generate sufficient cash-flow to service its interest.The SC, as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations. Overall financial condition of the SC: LIMITED

COMMENTS

Incorporated in 1990, the SC as a private limited company engaged in manufacturing of yarn, knitting, printing and dyeing of fabrics. Its long presence in the industry coupled with its good reputation has enabled the SC to built up an extensive clientele base both locally and internationally. Presently, the SC's paid up capital stands at RM120 million. In addition, we noted that the SC is backed by its well established ultimate holding company therefore the SC is expected to enjoy timely financial and technical assistance should the needs arise.

The SC is regarded as a large organisation with a manpower strength of 1,820 and its business operation is managed by Executive Director Albert Lim. Its management capability is considered average. The SC supplies its products to local market and also overseas market. The SC exports its products to overseas countries like Hong Kong, Germany, Australia, Singapore and etc. The wider range of its market segments has benefited the SC in terms of higher earnings and minimised its business risk.

Referring to the SC's financial account for the year 2005, the SC recorded a turnover and pre-tax profit of RM352,083,237 and RM13,948,287 respectively. The SC has generated a relatively low return on shareholders' funds indicating that the SC was inefficient in utilising its shareholders' funds to generate returns. However, the SC possesses an adequate liquidity position with its total current liabilities well covered by its total current assets. With its net current assets, the SC should be able to repay its short term obligations. Moreover, being a lowly geared company has minimised its financial risk. Overall the financial condition of the SC is Limited.

Apart from sourcing its raw materials from the local market, the SC also imports its raw material from overseas countries such as Japan. As a result, the SC is exposed to foreign currency fluctuation risk.

Investigation revealed that the SC currently is clear from any litigation case and based on the financial historical data, the SC's payment record is regarded as average.

The industry remains robust with continuing strong global demand for its products. However, there are many competitors involved in the textile and apparel industry and it is highly dependent on the SC’s ability to . deliver good quality products in order to further enhance its competitiveness and thus increased its profitability.

In view of the above, we recommend credit be granted to the SC promptly.

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.

PROFIT AND LOSS ACCOUNT

For The Year Ended 31-December-2005

2005 2004

MYR MYR

TURNOVER 352,083,237 374,939,619

=========== ===========

PROFIT/(LOSS) FROM OPERATIONS 13,948,287 73,114,830

SHARE OF PROFITS/(LOSSES) OF ASSOCIATED

------------------- -------------------

PROFIT/(LOSS) BEFORE TAXATION 13,948,287 73,114,830

Taxation <2,203,000> <9,304,370>

------------------- -------------------

PROFIT/(LOSS) AFTER TAXATION 11,745,287 63,810,460

------------------- -------------------

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS 11,745,287 63,810,460

------------------- -------------------

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS 11,745,287 63,810,460

RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT

FORWARD

As previously reported 476,777,771 434,959,477

------------------- -------------------

As restated 476,777,771 434,959,477

------------------- -------------------

PROFIT AVAILABLE FOR APPROPRIATIONS 488,523,058 498,769,937

DIVIDENDS - Ordinary (paid & proposed) <30,360,000> <21,992,166>

------------------- -------------------

RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED

FORWARD 458,163,058 476,777,771

=========== ===========

RETAINED BY: The Company 458,163,058 476,777,771

------------------- -------------------

458,163,058 476,777,771

=========== ===========

INTEREST EXPENSE (as per notes to P&L)

Other interest expenses 16,550,354 13,801,457

------------------- -------------------

16,550,354 13,801,457

=========== ===========

BALANCE SHEET

As At 31-December-2005

2005 2004

MYR MYR

ASSETS EMPLOYED:

FIXED ASSETS 345,085,255 359,025,536

LONG TERM INVESTMENTS/OTHER ASSETS

Subsidiary companies 2,293,859 2,293,859

------------------- -------------------

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS 2,293,859 2,293,859

INTANGIBLE ASSETS

------------------- -------------------

TOTAL LONG TERM ASSETS 347,379,114 361,319,395

CURRENT ASSETS

Stocks 333,901,534 252,288,485

Trade debtors 32,240,680 59,855,337

Other debtors, deposits & prepayments 2,178,968 2,373,599

Short term deposits 8,956,430 4,600,000

Items in transit between head office & branches

Amount due from holding company 139,033,976 163,246,880

Amount due from subsidiary companies 223,811,456 284,285,656

Cash & bank balances 11,677,951 2,527,310

Marketable securities 6,515,162 6,602,912

Tax refundable 938,254 -

------------------- -------------------

TOTAL CURRENT ASSETS 759,254,411 775,780,179

CURRENT LIABILITIES

Trade creditors 20,947,301 7,575,433

Other creditors & accruals 71,860,863 17,072,151

Bank overdraft 43,153,344 45,148,207

Short term borrowings/Term loans 200,850,688 236,610,764

Other borrowings 24,000,000 25,000,000

Bill & acceptances payable 15,806,859 -

Provision for taxation - 2,926,950

------------------- -------------------

TOTAL CURRENT LIABILITIES 376,619,055 334,333,505

------------------- -------------------

NET CURRENT ASSETS/(LIABILITIES) 382,635,356 441,446,674

------------------- -------------------

TOTAL NET ASSETS 730,014,470 802,766,069

=========== ===========

FINANCED BY:

SHARE CAPITAL

Ordinary share capital 120,000,000 120,000,000

------------------- -------------------

TOTAL SHARE CAPITAL 120,000,000 120,000,000

RESERVES

Retained profit/(Accumulated loss) carried

forward 458,163,058 476,777,771

------------------- -------------------

TOTAL RESERVES 458,163,058 476,777,771

------------------- -------------------

SHAREHOLDERS' FUNDS/EQUITY 578,163,058 596,777,771

LONG TERM & DEFERRED LIABILITIES & PROVISIONS

Long term loans 79,425,114 133,000,000

Deferred taxation 72,426,298 72,988,298

------------------- -------------------

TOTAL LONG TERM & DEFERRED LIABILITIES &

PROVISIONS 151,851,412 205,988,298

------------------- -------------------

730,014,470 802,766,069

=========== ===========

FINANCIAL RATIOS

As At 31-December-2005

2005 2004

MYR MYR

TYPES OF FUNDS

Cash 20,634,381 7,127,310

Net Liquid Funds <223,369,651> <274,631,661>

Net Liquid Assets 48,733,822 189,158,189

Net Current Assets/(Liabilities) 382,635,356 441,446,674

Net Tangible Assets 730,014,470 802,766,069

Net Monetary Assets <103,117,590> <16,830,109>

BALANCE SHEET ITEMS

Total Borrowings 347,429,146 439,758,971

Total Liabilities 528,470,467 540,321,803

Total Assets 1,106,633,525 1,137,099,574

Net Assets 730,014,470 802,766,069

Net Assets Backing 578,163,058 596,777,771

Shareholders'' Funds 578,163,058 596,777,771

Total Share Capital 120,000,000 120,000,000

Total Reserves 458,163,058 476,777,771

LIQUIDITY (Times)

Cash Ratio 0.05 0.02

Liquid Ratio 1.13 1.57

Current Ratio 2.02 2.32

WORKING CAPITAL CONTROL (Days)

Stock Ratio 346 246

Debtors Ratio 33 58

Creditors Ratio 22 7

SOLVENCY RATIOS (Times)

Gearing Ratio 0.60 0.74

Liabilities Ratio 0.91 0.91

Times Interest Earned Ratio 1.84 6.30

PERFORMANCE RATIO (%)

Operating Profit Margin 3.96 19.50

Net Profit Margin 3.34 17.02

Return On Net Assets 4.18 10.83

Return On Capital Employed 3.13 8.01

Return On Shareholders'' Funds/Equity 2.03 10.69

Dividend Pay Out Ratio (Times) 2.58 0.34

NOTES TO ACCOUNTS

Contingent Liabilities 294,935,738 187,450,443

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

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