MIRA INFORM REPORT

Report Date :

12.03.2007

IDENTIFICATION DETAILS

Name :	D S CONSTRUCTIONS LIMITED
Registered Office :	C-66, South Extension Part – II, New Delhi – 110049
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	30.10.1978
Com. Reg. No.:	55-9287
CIN No.: [Company Identification No.]	U74899DL1978PLC009287
TAN No.: [Tax Deduction & Collection Account No.]	DELD00221E
Legal Form :	A closely held public limited liability company.
Line of Business :	Construction and Allied Activities

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 8000000
Status :	Good
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. 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.

LOCATIONS

Registered Office :	C-66, South Extension Part – II, New Delhi – 110049, India
Tel. No.:	91-11-28255835 / 5837 / 26252753
Fax No.:	91-11-26262386 / 26252248
E-Mail :	dsconstruction2000@yahoo.co.in, ms.narula@dsconstructions.com
Website :	http://www.dsconstructions.com
North American Head Office :	1712, North Aurora Road ,Naperville, IL 60563, USA
Tel. No.:	001-8479213765
Fax No.:	001-6303691300
United Kingdom Head Office :	Hyver Hall, Barnet Gate, Arkley, Hertfordshire, EN53JA, London.
Tel. No.:	0044-181-9598877
Fax No.:	0044-181-9063944
North African Head Office :	P.O. Box.92091, Swani, Libya.
Tel. No.:	00218-204-622464
Fax No.:	00218-204-622483
Indian Subcontinent Head Office :	C-66, South Extension Part II, New Delhi -110049. Phone
Tel. No.:	0091-11-26446835,26446837
Fax No.:	0091-11-26212386
Email :	marketing@dsconstructions.com dscl@dsconstructions.com

DIRECTORS

Name :	Mr . Balbir Singh Narula
Designation :	Director
Address :	3, GOLF Links, New Delhi – 110003
Date of Birth/Age :	17.08.1936
Date of Appointment :	30.10.1978
Name :	Mr. Virender Singh Narula
Designation :	Director
Address :	3, GOLF Links, New Delhi – 110003
Date of Birth/Age :	01.12.1940
Date of Appointment :	30.10.1978
Name :	Mr. Narinder Singh Narula
Designation :	Director
Address :	3, GOLF Links, New Delhi – 110003
Date of Birth/Age :	01.10.1942
Date of Appointment :	31.10.1978
Name :	Mr. Moninder Singh Narula
Designation :	Managing Director
Address :	3, GOLF Links, New Delhi – 110003
Date of Birth/Age :	09.04.1952
Date of Appointment :	01.11.2002
Name :	Mr. Ramneek Bawa
Designation :	Director and COO
Address :	3, Avlon Apartments, New Manga Puri, New Delhi
Date of Birth/Age :	10.11.1952
Date of casing :	02.02.2005
Date of Appointment :	01.11.2002
Name :	Mr. Shailendeer Kant Dixit
Designation :	Director (Construction)
Address :	95, Navjeevan Vihar, New Delhi
Date of Birth/Age :	15.04.1956
Date of Appointment :	01.11.2002
Date of casing :	15.03.2005
Name :	Nam Dhani Mehra
Designation :	Director (Commercial and Legal)
Address :	B – 3 68, Alaknanda, Gangotri Enclave, New Delhi
Date of Birth/Age :	31.07.1958
Date of Appointment :	01.11.2002
Name :	Mr. Harvinder Singh Kohli
Designation :	Director
Address :	Apartment No. 10, 1, Link Road, Jangpur, New Delhi
Date of Birth/Age :	06.07.1961
Date of Appointment :	02.02.2005
Name :	Mr. Hari Kishan Mehra
Designation :	Director

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr . Balbir Singh Narula	12359
Mr. Virender Singh Narula	2944
Mr. Narinder Singh Narula	1704
Mr. Harpinder Singh Narula	501204
Mr. Devinder Kaur Narula	4630
Satvinder Kaur Narula	3796
Surina Narula	12383
D. S. Exports Private Limited	3000
Rajindeer Kaur Narula	3625
Mr. Moninder Singh Narula	150000

BUSINESS DETAILS

Line of Business :

Construction and Allied Activities

GENERAL INFORMATION

No. of Employees :

2000

Bankers :

v Canara Bank

v ICICI Bank limited

v Lord Krishna Bank Limited

v Punjab National Bank

v ABN Amro Bank limited

v American Express Bank Limited

v HDFC Bank

v Centurion Bank

v State Bank of Patiala

v Lord Krishna Bank Limited

v Oriental Bank of Commerce, M-1/2/3, Connaught Place, New Delhi—110001, Delhi, India

v SREI Infrastructure Finance Limited, 86C, Vishwakarma, Topisa Road, Kolkata-700046, West Bengal, India

Facilities :

Secured Loan	Rs in millions
Associates India Finance Services Private Limited	0.000
ABN Amro Bank limited (Car)	2.867
American Express Bank Limited – Vehicles	0.000
Canara Bank Term Loan Equipments	0.000
Cholamandalam Investment and Finance Company Limited – Dumpers	0.000
HDFC Bank – car	57.679
ICICI Bank – Equipment	51.903
Centurion Bank – Equipments	14.570
Srei Industrial Finance Limited – hire Purchase of Equipments	81.951
Punjab National Bank	142.935
State Bank of Patiala – LC Discounting	85.400
Total	437.305

Unsecured Loans :

NAFED : Rs.265.000 millions

Banking Relations :	Satisfactory
Auditors :	Kanwal Chanana and Associates Chartered Accountants
Address :	5, Babar Road, New Delhi-110001, Delhi, India
Subsidiaries :	v Regal Properties Private Limited v Season Implex Private Limited v Savera Implex Private Limited v Devkusha Buildcon Private Limited v Select Promoters Private Limited v Jaypee DSC Venture Limited v Viramgam Mahesana Projects Limited v Ashoka Kanti Bypass Private Limited v Delhi-Gurgaon Super Connectivity Limited v DSC Ventures Private Limited (Formerly DSC Vicon Ventures Private Limited)
Associates :	v Variety Properties Private Limited v Faith Real Estate Private Limited v D.S. Promoter and Developers Private Limited v D. S. Ficap Private Limited v Grand Real Estate Private Limited v D.S. Infrastructure Private Limited v Ebony Retail Holding Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
65000000	Equity Shares	Rs. 100/- each	Rs. 650.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
49455971	Equity Shares	Rs. 100/- each	Rs.494.560 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		494.559	54.564	493.469
2] Share Application Money		0.000	438.905	0.000
3] Reserves & Surplus		1602.659	1232.446	928.533
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2097.218	1725.915	1422.002
LOAN FUNDS
1] Secured Loans		3587.193	1105.580	437.307
2] Unsecured Loans		0.000	0.000	265.000
TOTAL BORROWING		3587.193	1105.580	702.307
DEFERRED TAX LIABILITIES		26.430	33.416	0.000
TOTAL		5710.841	2864.911	2124.309
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		714.626	536.703	524.736
Capital work-in-progress		0.000	0.000	8.208
INVESTMENT		2968.764	1726.842	1541.270
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	480.823	486.307	49.710
	Sundry Debtors	1385.634	337.069	793.796
	Cash & Bank Balances	882.506	958.898	210.214
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	471.364	67.416	260.439
Total Current Assets		3220.327	1849.690	1314.159
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	1181.088	1241.468	1242.487
	Provisions	14.377	9.768	23.982
Total Current Liabilities		1195.465	1251.236	1266.469
Net Current Assets		2024.862	598.454	47.690
MISCELLANEOUS EXPENSES		2.589	2.912	2.405
TOTAL		5710.841	2864.911	2124.309

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		4108.413	3622.995	2571.602
Other Income		39.347	42.551	10.582
Total Income		4147.760	3665.546	2582.184
Profit/(Loss) Before Tax		522.140	492.558	386.147
Provision for Taxation		149.825	182.476	136.200
Profit/(Loss) After Tax		372.315	310.082	262.387
Total Imports		NA	NA	187.033
Expenditures :
	Raw Material Consumed	2664.285	1082.731	1196.230
	Increase/(Decrease) in Finished Goods	(140.909)	NA	NA
	Salaries, Wages, Bonus, etc.	116.670	313.562	144.195
	Managerial Remuneration	4.888	5.889	3.988
	Payment to Auditors	1.487	1.251	1.050
	Interest	364.583	85.053	40.659
	Insurance Expenses	NA	5.221	7.366
	Power & Fuel	NA	266.121	20.440
	Depreciation & Amortization	113.276	NA	NA
	Other Expenditure	501.340	1413.160	782.109
Total Expenditure		3625.620	1413.160	2196.038

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	8.97	8.46	10.16
Net Profit Margin (PBT/Sales)	(%)	12.59	13.44	14.95
Return on Total Assets (PBT/Total Assets}	(%)	13.27	20.64	30.00
Return on Investment (ROI) (PBT/Networth)		0.25	0.28	0.15
Debt Equity Ratio (Total Liability/Networth)		2.28	1.36	1.38
Current Ratio (Current Asset/Current Liability)		2.69	1.48	1.04

LOCAL AGENCY FURTHER INFORMATION

Form 8 Particular for creation or modification of charges

Name of the company	D.S. CONSTRUCTION LIMITED
Presented By	Rajiv Gilani, Centurion Bank Limited
1) Date and description of instrument creating the change	Hypothecation agreement No.G-01841 Referencer No.CEO1050824001887 Dated 24.08.2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs.2.580 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	One No. Ingersoll Rand PTR Model RTR-220 Serial No.05 4007194 covered by Invoice No.PA0178
4) Gist of the terms and conditions and extent and operation of the charge.	29 monthly instalments of Rs.0.096 millions each Rate of Interest : 6.98%
5) Name and Address and description of the person entitled to the charge.	Centurion Bank Limited, Connaught Place, New Delhi
6) Date and brief description of instrument modifying the charge	N.A.
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.	N.A.

Name of the company	D.S. CONSTRUCTION LIMITED
Presented By	Rajiv Gilani, Centurion Bank Limited
1) Date and description of instrument creating the change	Hypothecation agreement No.G-01837 Reference No.CEO1050822001087 Dated 22.08.2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs.3.300 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	One No. Schwing Stetter Balching Plant Model CPL CP 30 bearing Serial No.80200405/395
4) Gist of the terms and conditions and extent and operation of the charge.	29 monthly instalments of Rs.0.124 millions each Rate of Interest : 7.53%
5) Name and Address and description of the person entitled to the charge.	Centurion Bank Limited, Connaught Place, New Delhi
6) Date and brief description of instrument modifying the charge	N.A.
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.	N.A.

Fixed Assets

v Vehicles

v Trucks and Buses

v Construction Equipments

v Testing Equipments

v Air Conditioner

v Petrol Pump Station

v Generators

v Office Equipments

v Mobile Phone

v Furniture and Fixture

v Computer

Dividend

The directors recommend a Final Dividend of Rs. 10/- per share on the Equity Shares capital of the company entailing a total payout of Rs. 1.655 millions (including corporate dividend tax) . The dividend shall be paid to all those Equity shareholders whose names appear in the Register of Members as on the date of the Annual General Meeting i.e. 28^th September, 2004.

Operations

This year was first full year of Indian operations and with the strong order book position they have achieved a turnover of Rs. 2571.603 millions in 2003-04 as against Rs. 592.195 millions in 2002-03. the overseas contribution is Rs. 298.231 millions as against previous year figure of Rs. 467.220 millions. Consequently the Net profit earned also increased to Rs. 262.387 millions as against previous year figure of Rs. 38.047 millions. These figure are after providing foreign project reserve to the extent of Rs. 3.176 millions during the current year as against Rs. 13.700 Millions during year. As a result of plough bask of profit from operations and infusion of fresh funds, the Networth of the company stood at Rs. 1419.600 Millions as at 31.03.2004 as against Rs. 831.164 Millions as at 31.03.2003. Few of the project undertaken / to be undertaken by the company are as follows :

Road Projects

Meerut – Bijnor – Najibabad Project

The world Bank funded project in U.P. has been successfully completed on time. The completion certification for the completion of the same is expected shortly.

Delhi – Gurgaon Expressway Project

The company is executing the EPC contract for executing the 8/6 lane Expressway between Delhi and Gurgaon awarded by Jaypee DSC Venture Limited, a special purpose Vehicles company co-promoted by the company. The execution of the Delhi – Gurgaon expressway project is in full swing and progress in satisfactory.

This project forms part of he Golden Quadrilateral scheme of the National Highway Development program and its progress is directly monitored by NHAI. This prestigious project is one of the busiest condors carrying more than 150000 pcu per day with all important links to the Indira Gandhi International and Domestic Airport of the Capital City and connecting the national capital to the industrial satellite city of Gurgaon if Jaipur on National Highway – 8. they are using best of the brains coupled with latest technology in execution of this project and has already invested required funds from the resources as Promoters of the SPV.

NHAI has recently made some amendment in the original scope of work resulting in change / extra scope of work. The additional work of two under passes at Kapashera and at Sector 31, Gurgaon and the increase of height of underpasses during the year.

NHAI has recently made some amendment in the original plan of the Project and it will have a single 1.6 km long 6 to 8 lane flyover from Rao Tula Ram Marg till Palam Crossing and another 6 lane flyover at Hero Honda Chowk. The above work shall also be executed by them.

Raipur – Durg Highway

The execution of Raipur – Durg Highway Project is also in full swing and they expect to complete it much ahead of the scheduled completion date of May, 2006-09-06

Kanti Bypass BOT project

The work on another road project i.e. Kanti Bypass BOT Project shall be stared soon.

Railway Poject

Viramgam Mahesana Gauge Conversions

The first Railway project on BOT basis awarded to namely Viramgam Mahesana Gauge Conversions in nearing completion. More than 95 % of the construction work on the project has already been completed and presently the signalling work is in progress which is expected to be completed Mid September, 2004. testing of various works are in progress and the completion certificate will be issued after the inspection of Commissioner of Railways. They expect to get the completion certificate in October, 2004.

Projects in the Pipeline

A number of project are at various stage of implementation and shall be taken up by the Government. NHAI had invited tenders for 6 projects under International Competitive Bidding in LOT 1 on BOT basis and they have been declared lowest for the Raipur- Aurang Section of NH- 6 in the State of Chhatisgarh, and the letter of award is expected shortly. The approximate cost of the project is Rs. 1900 Millions.

Based on the overwhelming response for LOT – 1 project, NHAI has now invited bids for 12 more projects on BOT basis for approx 650 km. Having aggregate project cost of in excess of Rs. 30000 millions. They participating in the bidding for the selected project based on its credential. They are confident that in view of ample opportunities available in this sector, they endeavour to add some prestigious projects to kitty to further strengthen order book resulting in improved bottom line.

The Economic Opportunities

The scenario for infrastructure sector is quite favourer. The infrastructure sector includes the services of the transportation telecommunications, power and other services such as oil, gas and water supply, sanitation, Urban transport and development, etc. the lack of adequate infrastructure has been a key constraint in the common man and now opening the above sectors for the private participation. A number of initiatives have also been taken by the government in this regard. They constantly keep an eye on the opportunities being offered and shall gear up ourselves to grab the best out of it.

Corporate Identity number

U74899DL1978PLC009287

Name of the Company

D S CONSTRUCTIONS LIMITED

Address of registered of the principal place of business in India of the company

C-66, South Extension Part – II, New Delhi – 110049

This form is for

Modification of charges

Type of charge

Other

Particular of the charge holder

Lord Krishna Bank Limited

K-2, Chaudhary Building, Middle Circle, Connaught Circus, New Delhi – 11001, India

Amount secured by the charge

Rs. 300.000 Millions

Particular of the property charged

Hypothecation of movable fixed assets and machinery erected or installed or stored at the premises at C-66, South Extension Part – II, New Delhi – 110049 or various sites and any other machinery or plant and machinery mortgage by deposit of title deed relating to property situated at Plot No. 3, Block No. 10, GOLF Links, New Delhi

Charge identification number of the charge to be modified

90054458

Brief description of the instrument modifying the charge under sanction 135

Agreement of hypothecation of plant and machinery, current assets, OD agreement and letter of Equipment

Date of instrument modifying the charge

17.03.2006

Corporate Identity number

U74899DL1978PLC009287

Name of the Company

D S CONSTRUCTIONS LIMITED

Address of registered of the principal place of business in India of the company

C-66, South Extension Part – II, New Delhi – 110049

This form is for

Modification of charges

Type of charge

Hypothecation

Particular of the charge holder

Oriental Bank of Commerce

M- 1/2/3, Cannaught Place, New Delhi- 110001, India

kpco@vsnl.com

Nature of description of the instrument creating charge

Hypothecation agreement

Description of the property charged indicating whether it is a charge on

Stock in trade and Book debts

Amount secured by the charge

Rs. 400.000 Millions

Particular of the property charged

First charge by way of hypothecation of the company’s entire stock of raw material such as steel, cement, aggregates, bearing etc, work in progress and finished goods consumable stores and spares and such movable including book dents, bill whether documentary or clean, outstanding monies, receivable – both present and future and in a form and manner satisfactory to the bank.

Brief description of the instrument modifying the charge under sanction 135

Nature of facility	Amount in Millions
Latter of credit (Inland / Foreign)	100.000
Bank Guarantee	400.000
Maximum	400.000

Date of instrument modifying the charge

07.01.2005

Charge identification number of the charge to be modified

90055572

Brief description of the instrument modifying the charge under sanction 135

Supplemental agreement to secure credit / loan facilities

Counter guarantee agreement

Particular of the present modification

Nature of facility	Amount in Millions
Latter of credit (Inland / Foreign)	100.000
Bank Guarantee	400.000
Total	400.000

Other terms and condensation remain are same.

AS PER WEBSITE

At DSC, they have always believed in planning for tomorrow before today. The construction industry has been experiencing revolutionary changes and advances over the years in the way projects are planned, financed and executed. It has been DSC's constant endeavor to not only anticipate these changes but also to incorporate them in their culture and construction philosophy.

This belief is reflected in their rapid growth ad development, starting as a small civil contracting firm nearly sixty years ago, today, not only are they one of the leading construction conglomerates but also one of the largest private infrastructure developers in India and abroad.

This journey from a contractor to a developer has been conscious and deliberate and has been based on their strong commitment of turning their experience and knowledge into value for their clients. It is with this belief and value that they expectantly look at the evolving infrastructure sector and its challenges, and their place in it, as that of the leader.

Constant Endeavour to Innovate and Incorporate

Since its first contract DSC has evolved into a global construction firm with an extensive experience of every face of project evolution. Professionalism and a strong commitment to Quality have become a hallmark of DSC's projects.

The corner stone of this hallmark is a constant endeavor to innovate and incorporate the latest in construction technology, knowledge Management and Systems.

Their rapid growth, which is based on competitive culture of risk taking has made DSC one of the largest players in Private Finance Initiative (PFI) Projects. DSC's experience as an investor has also developed its culture further to incorporate the Importance of Time during construction for clients

Partners in Progress

DSC, in its path-breaking effort to build a business, which reflects its ethos has partnered with many companies and government departments worldwide.

These relationships aimed at building the required resources to complete the infrastructure projects in each of the countries where DSC operates. However, with the progress of time and understanding some of these relationships now are on a global level.

Relationship management, whether with a client, partner or a vendor is a very important part of everyday life of any member in the DSC family

Standalone Business unit

The shear number and size of projects handled by DSC requires an almost limitless supply of all types of equipment. Through their company's evolution they have realized the importance of effectively and efficiently managing this asset.

In the late 90's DSC took a major step in this endeavour by forming an equipment rental and trading bank. The bank is fully responsible for all maintenance, operations and ownership of all equipment and functions as a standalone business unit. As a result all DSC equipment is now traded or managed at market competitive rates and prices.

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.44.22
UK Pound	1	Rs.85.51
Euro	1	Rs.58.47

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	NO
--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 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