MIRA INFORM REPORT

Report Date :

12.11.2007

IDENTIFICATION DETAILS

Name :	JEWELEX INDIA PRIVATE LIMITED
Formerly Known As :	JEWELEX BOMBAY PRIVATE LIMITED
Registered Office :	124 / C, Mittal Court, Nariman Point, Mumbai 400 021, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	22.03.1993
Com. Reg. No.:	11-71263
CIN No.: [Company Identification No.]	U36910MH2004PTC148938
TAN No.: [Tax Deduction & Collection Account No.]	MUMJ11921A
PAN No.: [Permanent Account No.]	AABCJ4523H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporters of all kinds of diamond studded gold jewellery.

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 6470132
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having fine track. Directors are reported as experienced, respectable and resourceful businessmen. It is a 100% export oriented unit. Financial position is good. Payments are correct and as per commitments. The company can be considered for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	124 / C, Mittal Court, Nariman Point, Mumbai 400 021, Maharashtra, India
Tel. No.:	91-22-2874155
Fax No.:	91-22-2048488
E-Mail :	diamonds@jewelexindia.com shabana@jewelexindia.com
Corporate Office :	Plot No. 56-B, First Floor, Seepz, Andheri [East], Mumbai – 400096, Maharashtra, India
Tel. No.:	91-22-56938505
Fax No.:	91-22-56938506
E-Mail :	jewelex@bom2.vsnl.net.in
Head Office / Factory:	G-29, G & J Complex III, Seepz, Andheri (East), Mumbai – 400096, Maharashtra, India
Tel. No.:	91-22-56938500 / 8501 / 8502
Fax No.:	91-22-28290460
E-Mail :	jewelex@bom2.vsnl.net.in
Factory 2 :	Unit III, G – 33, G & J Complex No. III, Seepz, Andheri [East], Mumbai – 400096, Maharashtra, India

DIRECTORS

Name :	Mr. Piyush S. Kothari
Designation :	Director
Address :	705 - 8, Mangal Kunj, 2 – B, Mount Pleasant Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	10/01/1943
Date of Appointment :	01.10.2004
Name :	Mr. Nilesh P. Kothari
Designation :	Director
Address :	10, Ayarvarta, 20, N. D. Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	11/02/1961
Date of Appointment :	01.10.2004
Name :	Mr. Ashish S. Kothari
Designation :	Director
Address :	705, Mangal Kunj – B, 2 Mount Pleasant Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	21/05/1973
Date of Appointment :	10.05.2005
Name :	Mr. Ketan R. Shah
Designation :	Director
Address :	146/8, Jawahar Nagar, Road No. 9, 1^st Floor, Goregaon (West), Mumbai – 400062, Maharashtra, India
Date of Birth/Age :	24.02.1972
Date of Appointment :	01/04/2003
Name :	Mrs. Afshan Adlakha
Designation :	Director
Address :	A / 702, Jalvayu Vihar, Powai, Andheri [East], Mumbai – 400076, Maharashtra, India
Date of Birth/Age :	02.04.1976
Date of Appointment :	01.07.2004
Name :	Mr. Anish P Kothari
Designation :	Director
Address :	102, Elcid, 13 – A, Ridge Road, Mumbai 400 006, Maharashtra, India
Date of Birth/Age :	19.11.1965
Date of Appointment :	01.10.2004

MAJOR SHAREHOLDERS

Names Of Shareholders	No. of Shares
Mr. Piyush S Kothari	682500
Mr. Anish P Kothari	682500
Mr. Nilesh P Kothari	682500
Mrs. Saryu P Kothari	682500
Mrs. Chandra P Kothari	682500
Mrs. Gopika A Kothari	568750
Mrs. Nisha N Kothari	568750
D J Finance Limited	450000
Mr. Piyush S Kothari	37500
Mr. Anish P Kothari	37500
Mr. Nilesh P Kothari	37500
Mrs. Saryu P Kothari	37500
Mrs. Chandra P Kothari	37500
Mrs. Gopika A Kothari	31250
Mrs. Nisha N Kothari	31250

Equity share breakup (percentage of total equity)

S. No.	Category	Percentage
1	Bodies corporate (not mentioned above)	9.00
2	Directors or relatives of directors	91.00
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers and Exporters of all kinds of diamond studded gold jewellery.
Products :	Gold Rings Earrings Pendants Diamond Studded Gold and Platinum Jewellery

PRODUCTION STATUS

Particulars	Unit	Actual Production
Rings	Nos.	111044
Pendants	Nos.	51777
Earrings	Pairs	112732
Belts/Neckless/Bangles	Nos.	5431

GENERAL INFORMATION

No. of Employees :

About 2000

Bankers :

Ø Corporation Bank, Overseas Branch, Earnest House, Nariman Point, Mumbai 400 021 Ø ABN Amro Bank N V Brady House, 14, Veer Nariman Road, Mumbai 400 023 Ø Union Bank of India Overseas Branch, Union Bhavan, Ground Floor, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai 400 021 Ø Bank of Baroda International Business Branch, General Bhonsale Marg, Nariman Point, Mumbai 400 021 Ø United Western Bank Limited Overseas Branch, Mittal Court, C Wing, 16^th Floor, Naniman Point, Mumbai 400 021 Ø UTI Bank

Banking Relations :	Good
Auditors :	M. M. Nissim and Company Chartered Accountants,
Address:	Barodawala Mansion, B – Wing, 3^rd Floor, 81, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India
Tel. No.:	91-22-24949991
Fax No.:	91-22-24949995
Associates/Subsidiaries :	Ø Jewelex International Private Limited CIN No. U99999MH2000PTC124713 Ø Usha Industries Ø P. D. Kothari & Company Ø Jewelex Creations Private Limited Ø Spark Diamond Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs. 100/- each	Rs. 500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs. 100/- each	Rs. 500.000 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		50.000	50.000	20.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1567.533	51.834	889.860
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1617.533	101.834	909.860
LOAN FUNDS
1] Secured Loans		1583.669	1502.791	0.000
2] Unsecured Loans		903.100	699.4112	124.047
TOTAL BORROWING		2486.769	2202.2022	124.047
DEFERRED TAX LIABILITIES		20.551	0.000	5.453
TOTAL		4124.853	2304.036	1039.360
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		336.071	75.314	112.994
Capital work-in-progress		0.627	0.000	1.038
INVESTMENT		18.775	0.000	3.775
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2298.910	1248.129	478.937
	Sundry Debtors	1723.444	1010.465	368.734
	Cash & Bank Balances	138.846	158.059	26.572
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	407.636	240.260	189.546
Total Current Assets		4568.836	2656.913	1063.789
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	755.565	394.481	138.402
	Provisions	43.891	33.710	3.834
Total Current Liabilities		799.456	428.191	142.236
Net Current Assets		3769.380	2228.722	921.553
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4124.853	2304.036	1039.360

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	NA	NA	1940.865
Profit/(Loss) Before Tax	NA	NA	257.734
Provision for Taxation	NA	NA	514.206
Profit/(Loss) After Tax	NA	NA	256.472
Export Value	NA	NA	2007.223
Import Value	NA	NA	1544.168
Total Expenditure	NA	NA	1683.130

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	NA	NA	13.21
Net Profit Margin (PBT/Sales)	(%)	NA	NA	13.27
Return on Total Assets (PBT/Total Assets}	(%)	NA	NA	21.90
Return on Investment (ROI) (PBT/Networth)		NA	NA	0.28
Debt Equity Ratio (Total Liability/Networth)		2.03	25.83	0.29
Current Ratio (Current Asset/Current Liability)		1.21	1.19	7.47

LOCAL AGENCY FURTHER INFORMATION

Subject was incorporated on 22^nd March, 1993 under the name and style ‘Jewelex Bombay Private Limited’. The name was changed to the present w.e.f. 15.09.2004.

Fixed Assets

Building [Leasehold], Plant and Machinery, Electrical Fittings, Furniture & Fixtures, Office Equipments, Computers and Vehicles.

Form 8 Particular for creation or modification of charges

Corporation identity number or foreign company registrations number of the company	U51398MH2004PTC071263
Name of the company	JEWELEX [INDIA] PRIVATE LIMITED
Address	124-C, Mittal Court, Nariman Point, Mumbai – 400021, Maharashtra, India
This Form is for	Creation of charge
Type of Charges	Hypothecation
Particular of the charge holder	Corporation Bank Overseas Branch, Earnest House, Nariman Point, Mumbai – 400021, Maharashtra
Nature or description of the instrument creating charge	Unattested Deed of Hypothecation of movables
Date of the instrument creating charge	31.05.2006
Amount Secure by the charge	Rs. 87.500 millions
Brief of the principal terms and conditions and extent and operation of the charge	Interest rate 8.50% p.a. being 2% p.a. below the Bank COBAR PRIME LENDING RATE [PLR], which is 10.50% as at the present rising or failing with the banks prime lending rate or at such lending rate that the bank may determined to charge time to time
Description of the property charge whether it is a charge on	Others : Equipment
Particulars of the Property charged	Two wind mills and all other related equipment and systems and accessories having total Project Cost Rs. 125 millions

Name of the company

JEWELEX INDIA LIMITED

Presented By

Corporation Bank & Jewelex India Limited

1) Date and description of instrument creating the change

Dated : 7^th March, 2001

a. Working Capital Consortium Agreement ;

b. Joint Deed of Hypothecation; and Inter se Agreement

[Collectively a single charge for Rs. 305 millions]

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

a. Corporation Bank : Rs. 230.000 millions

b. Bank of India : Rs. 75.000 millions

Total : Rs. 305.000 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, stock in process, semi finished and finished goods, stores and spares not relating to plant and machinery [consumable stores and spares], bills receivable and book debts and all other movables, the whole of the non current assets, movables, fixed assets [except vehicles and lease hold factory premises of Unit I such as plant and machinery, furniture and fixtures, office equipments, computers etc. both present and future whether now lying loose or in cases or which are now lying or stored in or above or shall hereinafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about of the borrowers factories, premises and godowns situated at Unit No. I at G – 29, Seepz, G & J Complex III, Andheri [East], Mumbai – 400096 and Unit No. II at Plot 56 B, G & J Complex III, Seepz, Andheri [East], Mumbai – 400096 in the State of Maharashtra or wherever else the same may be or be held by any party to the order or disposition of the borrower in the course of transit or on high seas or disposition of the borrower in the course of transit or on high seas or on order or delivery, howsoever and wheresoever in the possession of the borrower and either by way of substitution of addition

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

Interest / commission to be charged at such rates as may be determined by the banks from time to time and the present rates of interest / commission are detailed hereunder :

Particulars of Interest and Commission :

	Rates
Export Packing Credit Interest	As per RBI Directives / sanction Terms of Banks from time to time
Bills Purchased / Discounting Limit Post Shipment Credit Interest	As per RBI Directives / sanction Terms of Banks from time to time
Inland / Import Letter of Credit cum Bank Guarantee	As per FEDAI Rules / Sanction terms of Banks from time to time

Interest / Commission rates as mentioned above are subject to revision from time to time

ii. The borrower agrees that the said facilities together with interest, compound interest, additional interest, liquidated damages, costs, charges, expenses and other moneys payable in respect thereof will be secured in favour of the said Banks by a First Charge

iii. The borrower shall maintain such security margin as may be stipulated by the said banks.

iv. The security shall be a continuing security for the balance from time to time due to the said Banks and each of them under the said accounts

V. All moneys resulting from the enforcement or realisation of the said securities by or on behalf of the said banks and the amounts realized from any policy or policies of insurance in respect of the said securities or by recourse to any special legislation for recovery of dues as may be applicable or otherwise howsoever shall be available for distribution amongst the said banks inter-se, in the same proportion to their respective outstandings in the said facilities, without any preferences or priority of one over the other or others for all purposes and to all intents.

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

Corporation Bank

Overseas Branch, Nariman Point, Mumbai – 21

Bank of India

Seepz Branch, Behind Seepz Service Centre Building, Marol Industrial Area, Andheri [East], Mumbai – 400006

6) Date and brief description of instrument modifying the charge

Dated : 14.01.2003

No instrument, but a joint mortgage was created by redeposit of title deeds with Corporation Bank and Corporation Bank acting for itself as well as agent of Bank of India, in respect of immovable properties of the company as security

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.

a. Past Modification :

The original charge created on 07.03.2001 for Rs. 305.000 millions was modified on 12.07.2001 against the security of equitable mortgage of company’s immovable properties.

b. Present Modification :

The company has now created a mortgage by deposit of title deeds [by way of constructive delivery] relating to the company’s immovable properties namely, building situated on the Plot No. 56B in the Santacruz Electronics Export Processing Zone, within the village limit of Vyarawali, Parjapur, Kondivita and Marol Taluka Andheri District Mumbai city in favour of the Consortium Banks to secure all monies upto a limit of Rs. 340 millions besides interest, costs, charges, etc. that may be found due and payable by the company to the consortium of banks or account of the said transactions.

Save and except creation of above mortgage there is therefore, no charge in the amount of charge which stands secured at Rs. 340 millions

Name of the company

JEWELEX INDIA PRIVATE LIMITED

Presented By

CORPORATION BANK AND JEWELEX INDIA PRIVATE LIMITED

1) Date and description of instrument creating the change

Dated: 01.10.2004

Certificate of incorporation bearing No. U 36910MH 2004 PTC 148938 and Memorandum and Articles of Association of the company incorporated under part IX of Companies Act, 1956

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

Corporation Bank	Rs. 345.500 Millions
Bank of Baroda	Rs. 265.800 Millions
ABN Amro Bank N V	Rs. 220.000 Millions
United Western Bank	Rs. 108.000 Millions
Union Bank of India	Rs. 86.000 Millions
UTI Bank	Rs. 54.000 Millions
Total	Rs. 1080.000 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

Assets of the firm (“the Borrower”)

i) The whole of the current assets of the borrower namely, stocks of raw materials, stock in process, semi finished and finished goods stores and spares not relating to plant and machinery (consumable stores and spares), bills receivable and book debts and all other current assets, both present and future whether now lying loose or in cases or which are now lying or stored in or about or shall hereinfafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about or borrower’s factories, premises and godowns situated at Mumbai, in the State of Maharashtra or wherever also 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 on order or delivery, howsoever and whersoever in the possession of the borrower and either by way of substituion or addition.

ii)

1. Premises no. 605, situated at 6^th floor, Aman Chambers premises Co-operative Society Limited, 113, Mama Parmanand Marg, (Formerly Queen’s Road), Mumbai – 400 004, standing in the name of P D Kothari and Company
2. Premises nos. 123,124 and 125 on th 12^th floor of ‘C’ Wing of Mittal Court Building situated at Nariman Point, Mumbai 400 021 standing in the name of P D Kothari and Company
3. Premises (Gala/Unit) No. 13 of Prbhadevi Industrial Estate on the 2^nd floor situated at Veer Savarkar Marg, Prabhadevi, Mumbai 400 025 standing in the name of P D Kothari and Company
4. Office Premises no. 2 – B, 3^rd floor, Aman Chambers, 113, Mama Parmanand Marg, Mumbai 400 004
5. Office Premises no 301 – A, Aman Chambers, 113, Mama Parmanand Marg, Mumbai 400 004

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

i) The aforesaid securities were created by way of first charge on part passu inter se the Bank for repaymene of monies due and payable by the Borrower to each of the Bank and/or Corporation Bank Consortium.

ii) Interest shall be charged on the outstanding in the accounts opened in respect of the aforesaid credit facilties at such rate(s) as may be determined by each of the Bank and/or Corporation Bank Consortium from time to time.

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

Ø Corporation Bank,

Overseas Branch, Earnest House, Nariman Point, Mumbai 400 021

Ø ABN Amro Bank N V

Brady House, 14, Veer Nariman Road, Mumbai 400 023

Ø Union Bank of India

Overseas Branch, Union Bhavan, Ground Floor, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai 400 021

Ø Bank of Baroda

International Business Branch, General Bhonsale Marg, Nariman Point, Mumbai 400 021

Ø United Western Bank Limited

Overseas Branch, Mittal Court, C Wing, 16^th Floor, Naniman Point, Mumbai 400 021

6) Date and brief description of instrument modifying the charge

Dated 10.03.2005

No Instrument, but mortage was created by deposit of title deeds in respect of company’s immovable properties as security.

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.

a) Post Modifications:

The original charge created on 01.10.2004 for Rs. 1080.000 millions was modified on 10.03.2005 for Rs. 1560.000 millions

b) Present Modification:

The company gave and accorded its consent to the Bank to hold and retain the title deeds in respect of its immovable properties namely:

1. Premises no. 605, situated at 6^th floor, Aman Chambers premises Co-operative Society Limited, 113, Mama Parmanand Marg, (Formerly Queen’s Road), Mumbai – 400 004

2. Premises nos. 123,124 and 125 on th 12^th floor of ‘C’ Wing of Mittal Court Building situated at Nariman Point, Mumbai 400 021

3. Premises (Gala/Unit) No. 13 of Prbhadevi Industrial Estate on the 2^nd floor situated at Veer Savarkar Marg, Prabhadevi, Mumbai 400

4. Office Premises no. 2 –B, admeasuring 20.25 sq. mtrs., on the 3^rd floor, in the building known as “Aman Chambers” of Aman Chambers Premises Co-Operative Society Limited, situated at 113, Mama Parmanand Marg, Mumbai 400 004, on the land bearing New survey No. 8032 (Pt) and survey no. 30/8007 and cadestral survey no. 16, admeasuring 1906 sq. yrds. Of Girgaum Division, Mumbai within the registration district sub –district of Mumbai city

5. Office premises no. 301-A, admeasuring 52 sq. mtrs. On the 3^rd floor, in the building known as “Aman Chembers” of Aman Chambers premises Co-Opeativer Society Limited, situate at 113, Mama Parmanand Marg, Mumbai 400 004, on the land bearing new survey no. 8032 (Pt) and survey no. 30/8007 and cadestral survey no. 16, admeasuring 1906 sq. yrds of Girgaum Division, Mumbai within the registraiton District sub-district of Mumbai city

And also created mortgage by deposit of title deeds in respect of company’s immovable property namely:

1. Office premises no. 602, admeasuring 77.7 sq. mtrs. On the 6thy floor in the building known as “Aman Chambers” of Aman Chambers Premises Co-Operative Society Limited, situate at 113, Mama Parmanand Marg, Mumbai 4100 004, on the land bearing new survey no. 8032 (Pt) and survey no. 30/8007 and cadestral survey no. 16, admeasuring 1906 sq. yrds. Of Girgaum Division, Mumbai within the registration district sub-district of Mumbai city

To secure the credit facilites upto Rs. 1560.000 millions, together with interest, costs, charges and expenses etc.

Save and except creation of above mortgage, there is therfore, no changes in the amount of charge which stands secured at Rs. 1560.000 millions..

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.39.34
UK Pound	1	Rs.82.66
Euro	1	Rs.57.57

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--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		81

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