MIRA INFORM REPORT

Report Date :

02.10.2007

IDENTIFICATION DETAILS

Name :	FRP SERVICES (ASIA) PTE LTD
Registered Office :	^438 Alexandra Road, #05-02^, Alexandra Point, Singapore – 119958
Country :	Singapore
Financials (as on) :	30.09.2006
Date of Incorporation :	^25/09/1997
Com. Reg. No.:	^199706716G
Legal Form :	^Pte Ltd
Line of Business :	An Agent and Dealer in all Types of Fibre Reinforced Products and related Chemicals for these products

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Exists

Subject Company

FRP SERVICES (ASIA) PTE LTD

Line Of Business 

AN AGENT AND DEALER IN ALL TYPES OF FIBRE REINFORCED PRODUCTS AND RELATED CHEMICALS FOR THESE PRODUCTS

Parent Company

FRP SERVICES & COMPANY

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2006

COMPANY

Sales : S$24,437,544

Networth : S$1,013,642

Paid-Up Capital : S$300,000

Net result : S$101,728

Net Margin(%) : 0.42

Return on Equity(%) : 10.04

Leverage Ratio : 4.01

COMPANY IDENTIFICATION

^{Subject Company : FRP SERVICES (ASIA) PTE LTD}

^{Former Name : -}

^{Business Address: 438 ALEXANDRA ROAD}

^#05-02

^{ALEXANDRA POINT}

^{Town: SINGAPORE}

^{Postcode: 119958}

^{County: -}

^{Country: Singapore}

^{Telephone: 6270 5001}

^{Fax: 6275 5746}

^{ROC Number: 199706716G}

^{Reg. Town: -}

SUMMARY

^{All amounts in this report are in: SGD unless otherwise stated}

^{Legal Form: Pte Ltd}

^{Date Inc.: 25/09/1997}

^{Previous Legal Form: -}

^{Summary year : 30/09/2006}

^{Sales: 24,437,544}

^{Networth : 1,013,642}

^{Capital: -}

^{Paid-Up Capital: 300,000}

^{Employees: 9}

^{Net result : 101,728}

^{Share value: -}

^{AUDITOR: NG, LEE & ASSOCIATES – DFK}

REFERENCES

^{Litigation: Yes}

^{Company status : TRADING}

^{Started : 25/09/1997}

PRINCIPAL(S)

^{NAKAMURA NOBUYUKI S2719462A Director}

DIRECTOR(S)

^{JOHANN CARL COOKE M1974498 Director}

^{Appointed on : 20/10/1997}

^{Street : 3-6-25 IMAMIYA MINOH CITY}

^{Town: OSAKA}

^Postcode:

^{Country: Japan}

^{NAKAMURA NOBUYUKI S2719462A Director}

^{Appointed on : 25/09/1997}

^{Street : 612 TELOK BLANGAH ROAD}

^#02-03

^FAIRWAYS

^{Town: SINGAPORE}

^{Postcode: 109026}

^{Country: Singapore}

^{ANNE SKADING S1426735B Company Secretary}

^{Appointed on : 15/01/2000}

^{Street : 209 BUKIT BATOK STREET 21}

^#13-186

^{Town: SINGAPORE}

^{Postcode: 650209}

^{Country: Singapore}

^{ALISON SEE LAY ENG S2092542F Company Secretary}

^{Appointed on : 15/01/2000}

^{Street : 218 ANG MO KIO AVENUE 1}

^#08-909

^{Town: SINGAPORE}

^{Postcode: 560218}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{HELEN CAMPOS THOMAS S1318008C}

^{JULIANA LOH JOO HUI S2558149J}

^{RYUJI INOUE F2430786R}

ACTIVITY(IES)

^{MACHINERY Code:13260}

^{COMMODITY TRADERS Code:5010}

^{BASED ON ACRA'S RECORD AS AT 16/07/2007}

^{1) WHOLESALE OF OTHER SPECIFIC COMMODITIES NEC}

^{2) WHOLESALE OF INDUSTRIAL MACHINERY & EQUIPMENT}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{UFJ BANK LIMITED}

SHAREHOLDERS(S)

^{FRP SERVICES & COMPANY 300,000 Company}

^{Street : FRP BUILDING}

^{1-15-9 AWAZA NISHI-KU}

^{Town: OSAKA}

^Postcode:

^{Country: Japan}

FORMER SHAREHOLDER(S)

^{RYUJI INOUE 1}

^{NAKAMURA NOBUYUKI 1}

HOLDING COMPANY

^{FRP SERVICES & COMPANY UF21360M % : 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

Liquidity : SUFFICIANT

Payments : REGULAR

Trend : LEVEL

Financial Situation: AVERAGE

LITIGATION(S)

Type Of Case: District Court - W/S

Case Number: DCS051112/1999

Defendant FRP SERVICES (ASIA) PTE LTD ROC # : 199706716G

Type Of Case: High Court - W/S

Case Number: HWS600151/2000

Plaintiff IMPERIAL PLASTIC CORPORATION PTE ROC # : 199408937N

Defendant FRP SERVICES (ASIA) PTE LTD ROC # : 199706716G

FINANCIAL ELEMENTS

^{All amounts in this report are in : SGD}

^{Audit Qualification: UNQUALIFIED (CLEAN) UNQUALIFIED (CLEAN) UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 30/03/2007}

^{Balance Sheet Date: 30/09/2006 30/09/2005 30/09/2004}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 29,673 3,332 7,480}

^{Total Fixed Assets: 29,673 3,332 7,480}

^{Inventories: 125,062 76,047 43,850}

^{Receivables: 3,808,394 2,362,677 2,120,692}

^{Cash,Banks, Securitis: 137,513 215,170 343,445}

^{Other current assets: 980,677 13,144 101,276}

^{Total Current Assets: 5,051,646 2,667,038 2,609,263}

^{TOTAL ASSETS: 5,081,319 2,670,370 2,616,743}

^{--- LIABILITIES}

^{Equity capital: 300,000 300,000 300,000}

^{Profit & loss Account: 713,642 611,914 635,867}

^{TOTAL EQUITY: 1,013,642 911,914 935,867}

^{Other long term Liab.: 9,153 - -}

^{Total L/T Liabilities: 9,153 - -}

^{Trade Creditors: 1,485,977 1,264,200 1,485,568}

^{Prepay. & Def. charges: 62,356 79,016 77,004}

^{Short term liabilities: 15,454 - -}

^{Due to Bank: 2,371,150 382,508 -}

^{Provisions: 31,374 22,887 42,893}

^{Other Short term Liab.: 92,213 9,845 75,411}

^{Total short term Liab.: 4,058,524 1,758,456 1,680,876}

^{TOTAL LIABILITIES: 4,067,677 1,758,456 1,680,876}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 24,437,544 12,120,223 12,078,757}

^{NET RESULT BEFORE TAX: 133,102 159,734 247,064}

^{Tax : 31,374 22,887 42,893}

^{Net income/loss year: 101,728 136,847 204,171}

^{Interest Paid: 30,005 - -}

^{Depreciation: 15,950 4,148 5,150}

^{Dividends: - - 160,800}

^{Directors Emoluments: 198,479 203,832 206,916}

^{Wages and Salaries: 298,703 142,741 143,167}

RATIOS

^{30/09/2006 30/09/2005 30/09/2004}

^{Turnover per employee: 2715282.67 1346691.44 1342084.11}

^{Net result / Turnover(%): 0.00 0.01 0.02}

^{Stock / Turnover(%): 0.01 0.01 0.00}

^{Net Margin(%): 0.42 1.13 1.69}

^{Return on Equity(%): 10.04 15.01 21.82}

^{Return on Assets(%): 2.00 5.12 7.80}

^{Dividends Coverage: 1.27}

^{Net Working capital: 993122.00 908582.00 928387.00}

^{Cash Ratio: 0.03 0.12 0.20}

^{Quick Ratio: 0.97 1.47 1.47}

^{Current ratio: 1.24 1.52 1.55}

^{Receivables Turnover: 56.10 70.18 63.21}

^{Leverage Ratio: 4.01 1.93 1.80}

^{Net Margin : (100*Net income loss year)/Net sales}

^{Return on Equity : (100*Net income loss year)/Total equity}

^{Return on Assets : (100*Net income loss year)/Total fixed assets}

^{Dividends Coverage : Net income loss year/Dividends}

^{Net Working capital : Total current assets - Total short term liabilities}

^{Cash Ratio : Cash Bank securities/Total short term liabilities}

^{Quick Ratio : (Cash Bank securities+Receivables)/Total Short term liabilities}

^{Current ratio : Total current assets/Total short term liabilities}

^{Inventory Turnover : (360*Inventories)/Net sales}

^{Receivables Turnover : (Receivable*360)/Net sales}

^{Leverage Ratio : Total liabilities/(Total equity-Intangible assets)}

FINANCIAL COMMENTS

^{THE FINANCIAL CONDITION OF THE COMPANY WAS SEEN TO BE FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH ROSE BY 11.16% FROM S$911,914 IN FY 2005 TO S$1,013,642 IN FY 2006. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF S$713,642 (2005: S$611,914); A RISE OF 16.62% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY AMOUNT DUE TO BANKS WHICH MADE UP 58.42% (2005: 21.75%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$2,371,150 (2005: S$382,508). THE BREAKDOWN IS AS FOLLOWS:}

^{-SHORT-TERM LOANS - 2006: S$2,371,150 (2005: -)}

^{-ACCOUNTS RECEIVABLES FINANCING (UNSECURED) - 2006: - (2005: S$382,508)}

^{IN ALL, LEVERAGE RATIO ROSE FROM 1.93 TIMES TO 4.01 TIMES AS A RESULT OF A GREATER RISE IN TOTAL LIABILITIES THAN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE CHANGES IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO FELL TO 1.24 TIMES, DOWN FROM 1.52 TIMES AND QUICK RATIO FELL TO 0.97 TIMES (2005: 1.47 TIMES).}

^{NET WORKING CAPITAL ROSE BY 9.30% FROM S$908,582 IN FY 2005 TO S$993,122.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 1.02 TIMES FROM S$12,120,223 IN FY 2005 TO S$24,437,544 BUT NET PROFIT DROPPED BY 25.67% TO S$101,728 (2005: S$136,847). THIS COULD BE DUE TO HIGHER STAFF COSTS OF S$298,703 IN FY 2006 (2005: S$142,741). HENCE, NET MARGIN FELL TO 0.42% (2005: 1.13%).}

^REVENUE:

^{-SALES OF GOODS - 2006: S$24,382,352 (2005: S$12,109,928)}

^{-COMMISSION INCOME - 2006: S$55,192 (2005: S$10,295)}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING.}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{BANK BORROWINGS}

^{A) THE SHORT-TERM LOANS ARE SECURED BY A LETTER OF GUARANTEE FROM FRP SERVICES & COMPANY, THE HOLDING COMPANY}

^{B) THE SHORT-TERM LOANS BEAR INTEREST AT BETWEEN 4.01%-6.14% PER ANNUM}

^{C) THE ACCOUNTS RECEIVABLE FINANCING FACILITY BEARS INTEREST AT BETWEEN 4.13%-4.67% (2005: 2.82%-4.67%) PER ANNUM}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 25/09/1997 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "FRP SERVICES (ASIA) PTE LTD".}

^{AS AT 16/07/2007, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 300,000 SHARES OF A VALUE OF S$300,000.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

^{1) WHOLESALE OF OTHER SPECIFIC COMMODITIES NEC}

^{2) WHOLESALE OF INDUSTRIAL MACHINERY AND EQUIPMENT}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF AN AGENT AND DEALER IN ALL TYPES OF FIBRE REINFORCED PRODUCTS AND RELATED CHEMICALS FOR THESE PRODUCTS.}

^{FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:}

^{BACKGROUND OF FRP SERVICES GROUP:}

^{A SPECIALIST IN THE FIELD FOR 30 YEARS, FRP SERVICES BOASTS INFORMATION AND PRODUCT DISTRIBUTION NETWORKS THAT EXTEND ACROSS SOME 80 COUNTRIES. THE RANGE OF PRODUCTS AND SERVICES COVERS EVERY FACET OF FRP FROM BASIC TECHNOLOGY TO ADVANCED MATERIALS AND EQUIPMENT. THE GROUP HAS WARHOUSE IN U.S.A., EUROPE, JAPAN, AUSTRALIA.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* TRADING OF FRP (FIBERGLASS REINFORCED PLASTIC) RAW MATERIALS AND CHEMICALS}

^{PRODUCTS DEALINGS:}

^{FRP DIVISION}

^{* GLASS FIBER}

^{* ALKALI RESISTANT PRODUCTS}

^{* GLASS FLAKE}

^{* CARBON FIBER}

^{* CORE MATERIAL}

^{* POLYESTER RESINS}

^{* CHEMICALS FOR FRP}

^{* POLYESTER COLOUR PASTE}

^{* RELEASING AGENT}

^{* FILLERS & ADMIXTURES}

^{* TOOLS AND EQUIPMENT}

^{* ENGINEERING PLASTICS}

^{CHEMICAL DIVISION:}

^{* INORGANIC CHEMICALS}

^{* ORGANIC CHEMICALS}

^{* INTERMEDIATES & APIS}

^{* POLYMERS & RESINS}

^{HEAD OFFICE:}

^{* JAPAN}

^{OVERSEAS OFFICES:}

^{* HANOI, VIETNAM}

^{* TAIPEI, TAIWAN}

^{* SHANGHAI, CHINA}

^{* SRI LANKA}

^{* MUMBAI, INDIA}

^{* AUSTRALIA}

^{* DUBAI, UNITED ARAB EMIRATES}

^{* UKRAINE}

^{* MOSCOW, RUSSIA}

^{* FRANCE}

^{* UNITED STATES OF AMERICA}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 19/07/2007, THE FOLLOWING WAS GATHERED:}

^{IMPORT COUNTRIES:}

^{* JAPAN}

^{EXPORT COUNTRIES:}

^{* SOUTH EAST ASIA REGION}

^{THE SUBJECT ONLY EXPORTS AND DOES NOT SELL LOCALLY.}

^{NUMBER OF EMPLOYEES:}

^{* COMPANY - 2007: 9}

^{NO OTHER TRADE INFORMATION IS AVAILABLE ON 19/07/2007.}

^{THE COMPANY'S IMMEDIATE AND ULTIMATE HOLDING COMPANY IS FRP SERVICES & COMPANY, A COMPANY INCORPORATED IN JAPAN.}

^{NUMBER OF EMPLOYEES (30 SEPTEMBER):}

^{* COMPANY - 2006: NOT AVAILABLE (2005: 3; 2004: 3; 2003 : 3; 2002 : 4}

^{* GROUP - 2006: - (2005: -)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{438 ALEXANDRA ROAD}

^{#05-02 ALEXANDRA POINT}

^{SINGAPORE 119958}

^{- RENTED PREMISE}

^{- OWNED BY FCL ALEXANDRA POINT PTE. LTD.}

^{- DATE OF CHANGE OF ADDRESS: 16/01/2006}

^WEBSITE:

^{http://www.frpservices.com}

^EMAIL:

^{nnn@frps.com.sg}

^{info@frpservices.com}

MANAGEMENT

^{THE DIRECTORS AT THE TIME OF THE REPORT ARE:}

^{1) JOHANN CARL COOKE, A SRI LANKAN}

^{- BASED IN JAPAN.}

^{2) NAKAMURA NOBUYUKI, A SINGAPORE PERMANENT RESIDENT}

^{- HOLDS NO OTHER DIRECTORSHIP IN OUR DATABASE.}

Singapore’s Country Rating 2007

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.

SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.

EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO REPATRIATION OF PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO CONTRIBUTED TO THE LARGE CURRENT ACCOUNT SURPLUS.

SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND PHARMACEUTICAL SECTORS.

THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP PRIORITY SECTORS (ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE THE GROWTH OF HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A REGIONAL HUB FOR FOREIGN INVESTORS INTERESTED IN ASIA.

CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE HOWEVER ONLY PARTIALLY OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP, BUT THE PROGRESS IS SLOW.

AFTER HIGH GROWTH IN 2006, BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD CONSUMPTION, A SLOWDOWN IS EXPECTED IN 2007.

ASSETS

• MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING COMPANY.
• HIGH QUALITY COMPETITIVENESS IN ASIA
• EXCELLENT BUSINESS CLIMATE
• POLITICAL STABILITY.

WEAKNESSES

• SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR DEVELOPMENT.
• AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.
• GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.
• BEING THE WORLD’S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD ECONOMIC DOWNTURNS.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE IN QUARTER 1 2007 FELL BY 7.6%. EXCLUDING PETROLEUM, FOREIGN SALES DECLINED BY 8.0%. MOST WHOLESALE SECTORS REPORTED LOWER OVERSEAS RECEIPTS IN QUARTER 1 2007 COMPARED TO THE PREVIOUS QUARTER, EXCEPT HOUSEHOLD EQUIPMENT AND FURNITURE SECTOR. SHIP CHANDLERS & BUNKERING REPORTED THE LARGEST DECLINE OF 18.3% IN QUARTER 1 2007, FOLLOWED BY FOOD BEVERAGES & TOBACCO SECTOR OF 17.7%.

RETAIL TRADE

THE OVERALL RETAIL SALES ROSE MARGINALLY BY 0.7% IN QUARTER 2 2007, COMPARED TO QUARTER 2 2006. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.1%. SALES OF OPTICAL GOODS & BOOKS, FURNITURE & HOUSEHOLD EQUIPMENT AND SUPERMARKETS ENJOYED STRONG GROWTHS OVER A YEAR AGO. PROVISION & SUNDRY SHOPS, WATCHES AND JEWELLERY, DEPARTMENT STORES AND WEARING APPAREL & FOOTWEAR SECTORS ALSO REPORTED HIGHER SALES OF 4.35 TO 5.9% RESPECTIVELY.

HOWEVER, RETAILERS OF MOTOR VEHICLES, FOOD & BEVERAGES, TELECOMMUNICATIONS APPARATUS & COMPUTERS AND PETROL SERVICES STATIONS REPORTED LOWER SALES.

OUTLOOK

GENERALLY, WHOLESALERS EXPECT TO DO WELL FOR THE NEXT 6 MONTHS, WITH A POSITIVE NET WEIGHTED BALANCE OF 17%. DEALERS OF FOOD & BEVERAGES, TROPICAL PRODUCE, TEXTILES & LEATHER GOODS AND HOUSEHOLD ELECTRICAL APPLIANCE & EQUIPMENT ARE AMONG THOSE WHO ARE OPTIMISTIC.

RETAIL TRADE FIRMS ANTICIPATE BUSINESS TO BE LESS BRISK FOR THE NEXT 6 MONTHS. IN PARTICULAR, DEPARTMENT STORES, SUPERMARKETS AND RETAILERS OF MOTOR VEHICLES EXPECT SLOWER BUSINESS IN THE COMING MONTHS.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

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.	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