MIRA INFORM REPORT

Report Date :

15.10.2007

IDENTIFICATION DETAILS

Name :	METSO MINERALS (SINGAPORE) PTE LTD
Registered Office :	^238a Thompson Road, #25-09, Novena Square, Tower Ca, Singapore – 307684
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^02/07/1983
Com. Reg. No.:	^198303078N
Legal Form :	^Pte Ltd
Line of Business :	Supplier of Abrasion Resistant, Rubber Lining, Grinding Mill Rubber Lining, Rubber Screens, Wear Rubber Components, Belt Scraper, Pulley Bars, Low Friction Lining

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

METSO MINERALS (SINGAPORE) PTE LTD

Line Of Business 

SUPPLIER OF ABRASION RESISTANT, RUBBER LINING, GRINDING MILL RUBBER LINING, RUBBER SCREENS, WEAR RUBBER COMPONENTS, BELT SCRAPER, PULLEY BARS, LOW FRICTION LINING

Parent Company

METSO MINERALS (ASIA-PACIFIC) PTE LTD

(PERCENTAGE OF SHAREHOLDINGS: 100%)

Financial Elements

FY 2006

COMPANY

Sales : S$ 56,548,000

Networth : S$ 7,291,000

Paid-Up Capital : S$ 2,500,000

Net result : S$ 4,084,000

Net Margin(%) : 7.22

Return on Equity(%) : 56.01

Leverage Ratio : 1.78

COMPANY IDENTIFICATION

^{Subject Company : METSO MINERALS (SINGAPORE) PTE LTD}

^{Former Name : NORDBERG SINGAPORE PTE LTD}

^{Business Address : 238A THOMPSON ROAD}

^#25-09

^{NOVENA SQUARE, TOWER CA}

^{Town : SINGAPORE}

^{Postcode : 307684}

^{Country : Singapore}

^{Telephone : 6511 1011}

^{Fax : 6250 0830}

^{ROC Number : 198303078N}

^{Reg. Town : -}

PREVIOUS IDENTIFICATION

^{NORDBERG SINGAPORE PTE LTD DATE OF CHANGE OF NAME: 28/03/2001}

SUMMARY

^{Legal Form : Pte Ltd}

^{Date Inc. : 02/07/1983}

^{Previous Legal Form : -}

^{Summary year : 31/12/2006}

^{Sales : 56,548,000}

^{Networth : 7,291,000}

^{Capital : -}

^{Paid-Up Capital : 2,500,000}

^{Employees : 2}

^{Net result : 4,084,000}

^{Share value : 1}

^{Auditor : RSM CHIO LIM}

REFERENCES

^{Litigation : YES}

^{Company status : TRADING}

^{Started : 02/07/1983}

PRINCIPAL(S)

^{GEA BAN PENG S2501252F Director}

DIRECTOR(S)

^{SUSAN MARY DE SILVA S2505139D Company Secretary}

^{Appointed on : 09/12/1991}

^{Street : 5 PANDAN VALLEY}

^#02-705

^{BAUHINIA TERRACE}

^{Town : SINGAPORE}

^{Postcode : 597629}

^{Country : Singapore}

^{SIDDHANT JAIN G2122786 Director}

^{Appointed on : 21/06/2007}

^{Street : M-310 VIJAY RATAN VIHAR}

^{SECTION-15-II, GURGAON}

^{Town : HARYANA-122001}

^{Postcode : -}

^{Country : India}

^{NEIL GRAEME HUGHES L8342312 Director}

^{Appointed on : 23/07/2004}

^{Street : 1/11 TULLY ROAD}

^{EAST PERTH}

^{Town : PERTH}

^{Postcode : -}

^{Country : Australia}

^{KANG CHOON HWEE ALBAN S1318801G Company Secretary}

^{Appointed on : 20/08/1999}

^{Street : 3 JALAN PANDAN}

^{Town : SINGAPORE}

^{Postcode : 288788}

^{Country : Singapore}

^{GEA BAN PENG S2501252F Director}

^{Appointed on : 23/08/2002}

^{Street : 96 BEDOK NORTH AVENUE 4}

^#23-1505

^{Town : SINGAPORE}

^{Postcode : 460096}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{PHILLIPS PETER S00078150}

^{FOX JAMES FREDERICK S00369244}

^{LOKE YAT KUEN ARTHUR S1095836I}

^{HOONG SENG LEI VINCENT S1234442B}

^{FRANCOIS DENIS MARIE 14095}

^{YODER DANIEL WAYNE S20350088}

^{WHELAN DONALD H S20463095}

^{PLATT GEORGE WILSON S21352033}

^{TOOKEY PAUL ROGER S74004710}

^{CALHOUN JOHN P SA2634421}

^{RAILTON DAVID HARVEY B072228}

^{TOOKEY APUL ROGER B262375}

^{ERLYNNE PETER MICHAEL B325010}

^{SCHANUER WILBERT E B575944}

^{GREGORY LOUIS ALBERT SE5150738}

^{ALBERT GREGORY LOUIS SE6322234}

^{CAMPBELL-PITT WILLIAM I I769242}

^{WHEALS RAYMOND ALVAR SN076898C}

^{ARMESY THOMAS W SZ3056778}

ACTIVITY(IES)

^{MACHINERY Code: 13260}

^{MACHINERY REBUILDING And REPAIRING Code: 13290}

^{BASED ON ACRA'S RECORD AS AT 09/10/2007}

^{1) MANUFACTURE AND REPAIR OF CONSTRUCTION MACHINERY AND PARTS}

^{2) MANUFACTURE AND REPAIR OF MACHINERY FOR FOOD PRODUCTS PROCESSING}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

SHAREHOLDERS(S)

^{METSO MINERALS (ASIA-PACIFIC) PTE 2,500,000 Company}

^{Street : 39 ROBINSON ROAD}

^#07-01

^{ROBINSON POINT}

^{Town : SINGAPORE}

^{Postcode : 068911}

^{Country : Singapore}

FORMER SHAREHOLDER(S)

^{NORDBERG U K LTD 1}

^{RAUMA-REPOLA HOLDINGS LUXEMBOURG SA 2,499,999}

^{REXNORD INC 2,499,999}

^{SCHANUER WILBERT E 1}

HOLDING COMPANY

^{METSO MINERALS (ASIA-PACIFIC) PTE LTD 199104014H %: 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation : AVERAGE}

LITIGATION(S)

^{Type Of Case : High Court - W/S}

^{Case Number : HWS01219/96}

Defendant METSO MINERALS (SINGAPORE) PTE LT ROC #: 198303078N

^{Type Of Case : Magistrate Court - W/S}

^{Case Number : MWS08140/91}

Defendant METSO MINERALS (SINGAPORE) PTE LT ROC #: 198303078N

Plaintiff CHENG U WEN LENA ROC #: S0888535D

FINANCIAL ELEMENTS

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

^{Date Account Lodged : 17/07/2007}

^{Balance Sheet Date : 31/12/2006 31/12/2005}

^{Number of weeks : 52 52}

^{Consolidation Code : COMPANY COMPANY}

^{--- ASSETS ---}

^{Preliminary Exp 289,000 202,000}

^{Total Fixed Assets : 289,000 202,000}

^{Inventories : 1,718,000 3,978,000}

^{Receivables : 14,096,000 7,875,000}

^{Cash, Banks, Securities : 3,999,000 3,530,000}

^{Other current assets : 192,000 194,000}

^{Total Current Assets : 20,005,000 15,577,000}

^{TOTAL ASSETS : 20,294,000 15,779,000}

^{--- LIABILITIES ---}

^{Equity capital : 2,500,000 2,500,000}

^{Profit & lost Account : 4,791,000 707,000}

^{Total Equity : 7,291,000 3,207,000}

^{Trade Creditors : 10,282,000 11,060,000}

^{Advanced payments : 177,000 418,000}

^{Provisions : 2,544,000 1,094,000}

^{Total short term Liab. : 13,003,000 12,572,000}

^{TOTAL LIABILITIES : 13,003,000 12,572,000}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 56,548,000 34,567,000}

^{Purchases,Sces & Other Goods: 47,460,000 30,155,000}

^{Gross Profit : 9,088,000 4,412,000}

^{NET RESULT BEFORE TAX : 5,118,000 1,693,000}

^{Tax : 1,034,000 -116,000}

^{Net income/loss year : 4,084,000 1,809,000}

^{Interest Paid : 128,000 204,000}

^{Financial Income : 140,000 154,000}

RATIOS

^{31/12/2006 31/12/2005}

^{Net result / Turnover(%) : 0.07 0.05}

^{Fin. Charges / Turnover(%) : 0.00 0.01}

^{Stock / Turnover(%) : 0.03 0.12}

^{Net Margin(%) : 7.22 5.23}

^{Return on Equity(%) : 56.01 56.41}

^{Return on Assets(%) : 20.12 11.46}

^{Net Working capital : 7002000.00 3005000.00}

^{Cash Ratio : 0.31 0.28}

^{Quick Ratio : 1.39 0.91}

^{Current ratio : 1.54 1.24}

^{Receivables Turnover : 89.74 82.01}

^{Leverage Ratio : 1.78 3.92}

^{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)/1000}

^{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 TO BE PASSABLE WITH AN INCREASE OF NET WORTH BY 127.35% FROM S$3,207,000 IN 2005 TO S$7,291,000 IN 2006. THIS WAS DUE TO HIGHER RETAINED EARNINGS OF S$4,791,000 (2005: S$707,000); A RISE OF 577.65% FROM THE PRIOR YEAR.}

^LEVERAGE:

^{IN THE SHORT TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 79.07% (2005: 87.97%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$10,282,000 (2005: S$11,060,000). THE BREAKDOWN IS AS FOLLOWS:}

^{ULTIMATE PARENT COMPANY - 2006: S$58,000 (2005: NIL)}

^{RELATED COMPANIES - 2006: S$9,312,000 (2005: S$10,632,000)}

^{OUTSIDE PARTIES AND ACCRUED LIABILITES - 2006: S$378,000 (2005: S$428,000)}

^{CONTRACT PAYABLES - 2006: S$534,000 (2005: NIL)}

^{IN ALL, LEVERAGE RATIO FELL FROM 3.92 TIMES IN 2005 TO 1.78 TIMES IN 2006 AS A RESULT OF A GREATER RISE OF TOTAL EQUITY THAN TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO ROSE TO 1.54 TIMES, UP FROM 1.24 TIMES AND QUICK RATIO IMPROVED TO 1.39 TIMES FROM 0.91 TIMES IN 2005.}

^{SIMILARLY, NET WORKING CAPITAL IMPROVED BY 133.01% FROM S$3,005,000 IN 2005 TO S$7,002,000 IN 2006.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 63.59% FROM S$34,567,000 IN 2005 TO S$56,548,000 IN 2006 AND NET PROFIT ROSE BY 125.76% TO S$4,084,000 (2005: S$1,809,000). HENCE, NET MARGIN ROSE TO 7.22% (2005: 5.23%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IN ADDITION, ITS INTEREST COVERAGE WAS HEALTHY CONSIDERING THAT ITS INTEREST EXPENSES WERE LOWER AT S$128,000 IN 2006 (2005: S$204,000).}

^{THIS WAS SHOWN BY SUBJECT'S HEALTHY INTEREST COVERAGE RATIO OF 10.89 TIMES IN 2006.}

^{NON-CURRENT ASSETS:}

^{DEFERRED TAX ASSET OF 2006:S$289,000 (2005: S$202,000) WAS CLASSIFIED AS PRELIMINARY.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 02/07/1983 AS A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF "REXNORD SINGAPORE PTE LTD". ON 03/11/1987, SUBJECT CHANGED TO THE NAMESTYLE OF "NORDBERG SINGAPORE PTE LTD".}

^{SUBSEQUENTLY ON 28/03/2001, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE OF "METSO MINERALS (SINGAPORE) PTE LTD".}

^{AS AT 09/10/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 2,500,000 SHARES, OF A VALUE OF S$2,500,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{(1) MANUFACTURE AND REPAIR OF CONSTRUCTION MACHINERY AND PARTS}

^{(2) MANUFACTURE AND REPAIR OF MACHINERY FOR FOOD PRODUCTS PROCESSING}

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

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* SUPPLIER OF ABRASION RESISTANT, RUBBER LINING, GRINDING MILL RUBBER LINING, RUBBER SCREENS, WEAR RUBBER COMPONENTS, BELT SCRAPER, PULLEY BARS, LOW FRICTION LINING}

^{PRODUCTS DEALINGS:}

^{* CRUSHING}

^{* SCREENING}

^{* CONVEYING}

^{* FEEDING}

^{* GRINDING}

^{* SEPARATION}

^{* SLURRY PUMPING}

^{* PYRO PROCESSING}

^{* BULK MATERIALS HANDLING}

^{* RECYCLING}

^{* WEAR DUST AND NOISE}

^{* PROCESS TECHNOLOGY}

^{SUBJECT'S CORE CUSTOMER SEGMENTS:}

^{* QUARRYING AND AGGREGATES PRODUCTION}

^{* MINING AND MINERALS PROCESSING}

^{* RECYCLING}

^{INDUSTRIES SERVED:}

^{* CONSTRUCTION CONTRACTORS}

^{* CIVIL ENGINEERING}

^{* WASTE HANDLING}

^{* POWER}

^{* PULP AND PAPER}

^{* PORTS}

^{* TERMINALS}

^{TERMS OF PAYMENT:}

^{* TRADE AND OTHER RECEIVABLES: 0 TO 180 DAYS TERMS (FOR NON-TRADE CREDITORS)}

^{NUMBER OF EMPLOYEES:}

^{* 2 (AS OF 2006)}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 15/10/2007, SUBJECT WAS ONLY WILLING TO CONFIRM THEIR REGISTERED AND BUSINESS ADDRESS, CONTACT NUMBER AND LINE OF BUSINESS. THE FOLLOWING WAS GATHERED:}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* SUPPLIER OF ABRASION RESISTANT, RUBBER LINING, GRINDING MILL RUBBER LINING, RUBBER SCREENS, WEAR RUBBER COMPONENTS, BELT SCRAPER, PULLEY BARS, LOW FRICTION LINING}

^{NO OTHER TRADE INFORMATION WAS AVAILABLE ON 15/10/2007 AS SUBJECT REFUSED TO PROVIDE FURTHER INFORMATION.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{238A THOMPSON ROAD}

^#25-09

^{NOVENA SQUARE, TOWER CA}

^{SINGAPORE 037684}

^{- PROPERTY RECORD WAS NOT AVAILABLE}

^{OLD REGISTERED AND BUSINESS ADDRESS:}

^{39 ROBINSON ROAD}

^#07-01

^{ROBINSON POINT}

^{SINGAPORE 068911}

^{DATE OF CHANGE OF ADDRESS: 09/01/1998}

^{WEBSITE: http://www.metsominerals.com}

^{EMAIL : -}

MANAGEMENT

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

^{1) SIDDHANT JAIN, AN INDIAN}

^{- BASED IN INDIA.}

^{2) NEIL GRAEME HUGHES, AN AUSTRALIAN}

^{- BASED IN AUSTRALIA.}

^{3) GEA BAN PENG, A SINGAPORE PERMANENT RESIDENT}

^{- HOLDS OTHER DIRECTORSHIP(S) AS RECORDED IN OUR DATABASE:}

^{YAMAGATA (SINGAPORE) PTE. LTD.}

^{W.L. GORE & ASSOCIATES (PACIFIC) PTE LTD}

^{DOWELL AVIATION PTE LTD}

^{PPD DEVELOPMENT (S) PTE. LTD.}

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.

Manufacturing sector

PAST PERFORMANCE

THE MANUFACTURING SECTOR GREW BY 18.8% COMPARED TO Q2 OF 2006, RIDING ON STRONG GROWTH FROM THE BIOMEDICAL MANUFACTURING AND TRANSPORT ENGINEERING CLUSTERS. TOTAL MANUFACTURING OUTPUT GREW BY 7.8% COMPARED TO OUTPUT IN THE SAME PERIOD LAST YEAR.

THE GENERAL MANUFACTURING INDUSTRIES GREW 11.3% YEAR-ON-YEAR IN Q2 2007. THE FOOD, BEVERAGES AND TOBACCO INDUSTRIES CONTRIBUTED LARGELY TO THE GROWTH WITH OUTPUT INCREASES OF 18.3%. THE MISCELLANEOUS INDUSTRIES ALSO GREW 14.9%. CUMULATIVE OUTPUT FOR THIS GROUP OF INDUSTRIES GREW 9.8% IN THE FIRST FOUR MONTHS OF THIS YEAR COMPARED TO THE SAME PERIOD IN 2006.

OUTLOOK

THE MANUFACTURING SECTOR IS MORE OPTIMISTIC IN THE NEXT SIX MONTHS ENDING SEPTEMBER 2007, COMPARED TO THE FIRST QUARTER OF THE YEAR. OVERALL, A WEIGHTED 30% OF MANUFACTURERS FORESEE AN IMPROVED OUTLOOK, WHILE 4% PREDICT DETERIORATION. THIS RESULTS IN A NET WEIGHTED BALANCE OF 26% OF MANUFACTURERS EXPECTING BUSINESS CONDITIONS TO IMPROVE, WHICH IS HIGHER THAN THE 7% RECORDED A QUARTER AGO. THE POSITIVE BUSINESS SENTIMENT IS LED BY THE ELECTRONICS CLUSTER.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

economic development board

CONTACT SINGAPORE

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