MIRA INFORM REPORT

Report Date :

27.09.2007

IDENTIFICATION DETAILS

Name :	DAIEI PAPERS (S.A.) PTE LTD
Registered Office :	^140 Cecil Street, # 09^-^02A, Pil Building, Singapore - 069540
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^31/03/2000
Com. Reg. No.:	^200002720W
Legal Form :	^Pte Ltd
Line of Business :	International Trading in Paper, Paper Board, Pulp and recovered Paper / Waste Paper.

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 :	Clear

Subject Company

DAIEI PAPERS (S.A.) PTE LTD

Line Of Business 

INTERNATIONAL TRADING IN PAPER, PAPER BOARD, PULP AND RECOVERED PAPER/WASTE PAPER

Parent Company

DAIEI PAPERS (S) PTE LTD

(PERCENTAGE OF SHAREHOLDING: 60%)

Financial Elements

FY 2006

COMPANY

Sales : US$46,376,075

Networth : US$920,843

Paid-Up Capital : US$285,191

Net result : US$219,561

Net Margin(%) : 0.47

Return on Equity(%) : 23.84

Leverage Ratio : 6.41

COMPANY IDENTIFICATION

^{Subject Company : DAIEI PAPERS (S.A.) PTE LTD}

^{Former Name : -}

^{Business Address: 140 CECIL STREET}

^#09-02A

^{PIL BUILDING}

^{Town: SINGAPORE}

^{Postcode: 069540}

^{County: -}

^{Country: Singapore}

^{Telephone: 6227 2737}

^{Fax: 6264 7336}

^{ROC Number: 200002720W}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 31/03/2000}

^{Previous Legal Form: -}

^{Summary year : 31/12/2006}

^{Sales: 46,376,075}

^{Networth : 920,843}

^{Capital: -}

^{Paid-Up Capital: 285,191}

^{Employees: 10}

^{Net result : 219,561}

^{Share value: -}

^{AUDITOR: KPMG}

^{BASED ON ACRA'S AS AT 24/09/2007}

^{NO. OF SHARES CURRENY AMOUNT}

^{ISSUED ORDINARY 500,000 SGD 500,000}

^{PAID-UP ORDINARY - SGD 500,000}

REFERENCES

^{Litigation: No}

^{Company status : TRADING}

^{Started : 31/03/2000}

PRINCIPAL(S)

^{CO DANIEL Y S2178228I Director}

DIRECTOR(S)

^{CO DANIEL Y S2178228I Director}

^{Appointed on : 31/03/2000}

^{Street : 16A QUEEN ASTRID PARK}

^{Town: SINGAPORE}

^{Postcode: 266809}

^{Country: Singapore}

^{VIJAY KUMAR GUPTA S2650264J Director}

^{Appointed on : 31/03/2000}

^{Street : 9 RHU CROSS}

^#12-05

^{COSTA RHU}

^{Town: SINGAPORE}

^{Postcode: 437436}

^{Country: Singapore}

^{LIM BEE ENG S1626446F Company Secretary}

^{Appointed on : 19/12/2005}

^{Street : 289 BISHAN STREET 24}

^#16-17

^{Town: SINGAPORE}

^{Postcode: 570289}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{YASUHIRO SUMI G5591545N}

^{LIM YEN LENG FLORENCE S1349403G}

ACTIVITY(IES)

^{PAPER MFRS Code:16000}

^{PAPER PRODUCTS Code:16020}

^{BASED ON ACRA'S RECORD AS AT 24/09/2007}

^{1) WHOLESALE OF PAPER AND PAPER PRODUCTS}

CHARGES

^{Date: 01/11/2002}

^{Comments : CHARGE NO: 200204858}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): SUMITOMO MITSUI BANKING CORPORATION}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{SUMITOMO MITSUI BANKING CORPORATION}

^{MIZUHO CORPORATE BANK, LTD}

SHAREHOLDERS(S)

^{DAIEI PAPERS (S) PTE LTD 300,000 Company}

^{Street : 140 CECIL STREET}

^#08-02

^{PIL BUILDING}

^{Town: SINGAPORE}

^{Postcode: 069540}

^{Country: Singapore}

^{VIJAY KUMAR GUPTA 100,000 Private Person}

^{Street : 9 RHU CROSS}

^#12-05

^{COSTA RHU}

^{Town: SINGAPORE}

^{Postcode: 437436}

^{Country: Singapore}

^{SUDHA GUPTA 100,000 Private Person}

^{Street : 9 RHU CROSS}

^#12-05

^{COSTA RHU}

^{Town: SINGAPORE}

^{Postcode: 437436}

^{Country: Singapore}

HOLDING COMPANY

^{DAIEI PAPERS (S) PTE LTD 199701663C % : 60.00}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

Liquidity : SUFFICIANT

Payments : REGULAR

Trend : UPWARD

Financial Situation: AVERAGE

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 04/04/2007}

^{Balance Sheet Date: 31/12/2006 31/12/2005 31/12/2004}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 9,881 8,412 16,786}

^{Total Fixed Assets: 9,881 8,412 16,786}

^{Inventories: 930,737 436,130 338,436}

^{Receivables: 5,099,083 2,512,552 3,675,099}

^{Cash,Banks, Securitis: 574,613 248,647 643,026}

^{Other current assets: 209,230 46,188 23,673}

^{Total Current Assets: 6,813,663 3,243,517 4,680,234}

^{TOTAL ASSETS: 6,823,544 3,251,929 4,697,020}

^{--- LIABILITIES}

^{Equity capital: 285,191 285,191 285,191}

^{Profit & loss Account: 635,652 416,091 440,742}

^{TOTAL EQUITY: 920,843 701,282 725,933}

^{Trade Creditors: 1,893,993 948,797 810,012}

^{Due to Bank: 3,766,555 1,539,516 2,947,022}

^{Provisions: 37,134 13,221 32,375}

^{Other Short term Liab.: 205,019 49,113 181,678}

^{Total short term Liab.: 5,902,701 2,550,647 3,971,087}

^{TOTAL LIABILITIES: 5,902,701 2,550,647 3,971,087}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 46,376,075 25,282,196 24,182,448}

^{Cost of Goods Sold: 44,816,614 24,397,649 23,397,261}

^{Gross Profit: 1,559,461 884,547 785,187}

^{Result of ordinary operations - - 246,893}

^{NET RESULT BEFORE TAX: 243,474 -34,134 89,739}

^{Tax : 23,913 - 17,948}

^{Net income/loss year: 219,561 -34,134 71,791}

^{Interest Paid: 641,090 356,589 157,154}

^{Depreciation: 7,512 9,292 10,914}

^{Wages and Salaries: 316,678 238,955 247,158}

^{Financial Income: 37,906 26,932 41,504}

RATIOS

^{31/12/2006 31/12/2005 31/12/2004}

^{Turnover per employee: 4637607.50 2528219.60 2418244.80}

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

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

^{Stock / Turnover(%): 0.02 0.02 0.01}

^{Net Margin(%): 0.47 -0.14 0.30}

^{Return on Equity(%): 23.84 -4.87 9.89}

^{Return on Assets(%): 3.22 -1.05 1.53}

^{Net Working capital: 910962.00 692870.00 709147.00}

^{Cash Ratio: 0.10 0.10 0.16}

^{Quick Ratio: 0.96 1.08 1.09}

^{Current ratio: 1.15 1.27 1.18}

^{Receivables Turnover: 39.58 35.78 54.71}

^{Leverage Ratio: 6.41 3.64 5.47}

^{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}

^{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 RISING BY 31.31% FROM US$701,282 IN FY 2005 TO US$920,843 IN FY 2006. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF US$635,652 (2005: US$416,091); A RISE OF 52.77% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY AMOUNT DUE TO BANKS WHICH MADE UP 63.81% (2005: 60.36%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$3,766,555 (2005: US$1,539,516). THE BREAKDOWN IS AS FOLLOWS:}

^{-SHORT TERM LOANS - 2006: US$1,825,343 (2005: US$300,000)}

^{-TRUST RECEIPTS - 2006: US$1,941,212 (2005: US$1,239,516)}

^{IN ALL, LEVERAGE RATIO ROSE FROM 3.64 TIMES TO 6.41 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 1.15 TIMES, DOWN FROM 1.27 TIMES AND QUICK RATIO FELL TO 0.96 TIMES FROM 1.08 TIMES IN FY 2005.}

^{NET WORKING CAPITAL ROSE BY 31.48% FROM US$692,870 IN FY 2005 TO US$910,962.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 83.43% FROM US$25,282,196 IN FY 2005 TO US$46,376,075 AND NET PROFIT ROSE BY 7.43 TIMES TO US$219,561 (2005: US$-34,134). HENCE, NET MARGIN ROSE TO 0.47% (2005: -0.14%).}

^REVENUE:

^{-SALES OF GOODS - 2006: US$46,224,925 (2005: US$25,244,920)}

^{-NET COMMISSION INCOME - 2006: US$151,150 (2005: US$37,276)}

^{DEBT SERVICING:}

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

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{INTEREST BEARING BORROWINGS (SHORT TERM)/TRUST RECEIPTS}

^{LOAN FROM THE BANK IS UNSECURED. INTEREST WAS CHARGED AT 1.13% TO 6.20% (2005: 2.98% TO 5.25%) PER ANNUM.}

^{TRUST RECEIPTS ARE SECURED AGAINST THE GOODS PURCHASED. INTEREST WAS CHARGED AT 5.20% TO 6.35% (2005: 2.99% TO 5.25%) PER ANNUM.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 31/03/2000 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "DAIEI PAPERS (S.A.) PTE LTD".}

^{AS AT 24/09/2007, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 500,000 SHARES OF A VALUE OF S$500,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) WHOLESALE OF PAPER AND PAPER PRODUCTS}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF A TRADER AND COMMISSION AGENT OF PAPER PRODUCTS.}

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

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* INTERNATIONAL TRADING IN PAPER, PAPER BOARD, PULP AND RECOVERED PAPER/WASTE PAPER.}

^{PRODUCTS AND SERVICES:}

^{* WRITING & PRINTING PAPER, COATED PAPER & BOARDS, NEWSPRINT, KRAFT LINER BOARD, TEST LINER, DUPLEX, FBB, MEDIUM, PE BOARD.}

^{* BLEACHED & UNBLEACHED PULP}

^{* RECOVERED PAPER/WASTE PAPER FROM USA, EUROPE, JAPAN, SINGAPORE}

^{* SHEETING & REWINDING EQUIPMENT}

^{EXPORT MARKETS:}

^{* MALAYSIA}

^{* INDONESIA}

^{* PHILIPPINES}

^{* INDIA}

^{* AUSTRALIA}

^{* MIDDLE EAST}

^{* EUROPE}

^{* UNITED STATES OF AMERICA}

^{* AFRICA}

^{ASSOCIATE OFFICES:}

^{* MALAYSIA}

^{* THAILAND}

^{* PHILIPPINES}

^{* INDONESIA}

^{* HONG KONG}

^{* TAIWAN}

^{* CHINA}

^{* JAPAN}

^{* SOUTH KOREA}

^{* AUSTRALIA}

^{* NEW ZEALAND}

^{* NETHERLANDS}

^{* FINLAND}

^{* UNITED STATES OF AMERICA}

^{* BRAZIL}

^{* MEXICO}

^{* SOUTH AFRICA}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 27/09/2007, THE FOLLOWING WAS GATHERED:}

^{NUMBER OF EMPLOYEES:}

^{* COMPANY - 2007: 10}

^{NO OTHER TRADE INFORMATION IS AVAILABLE ON 27/09/2007.}

^{THE IMMEDIATE HOLDING COMPANY IS DAIEI PAPERS (S) PTE LTD, INCORPORATED IN THE REPUBLIC OF SINGAPORE AND THE ULTIMATE HOLDING CORPORATION IS KOKUSAI PULP & PAPER CO., INCORPORATED IN JAPAN.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2006: NOT AVAILABLE (2005: NOT AVAILABLE; 2004: 9; 2003: 9)}

^{REGISTERED ADDRESS:}

^{140 CECIL STREET}

^{#08-02 PIL BUILDING}

^{SINGAPORE 069540}

^{- DATE OF CHANGE OF ADDRESS: -}

^{BUSINESS ADDRESS:}

^{140 CECIL STREET}

^{#09-02A PIL BUILDING}

^{SINGAPORE 069540}

^{- RENTED PREMISE}

^{- OWNED BY PIL REALTY (PRIVATE) LIMITED}

^{OVERSEAS OFFICE:}

^{DAIEI PAPERS (S.A.) PTE LTD}

^{7 GANDHI BAZAAR, 10 BEHRU}

^{MANSIONBASAVANAGUDI,}

^{BANGALORE-560004}

^{KARNATAKA STATE, INDIA}

^{YOUR PROVIDED ADDRESS:}

^{A-02A PIL BUILDING}

^{140 CECIL STREET}

⁰⁶⁹⁵⁴⁰

^{- INCORRECT}

^WEBSITE:

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

^EMAIL:

^{spore@daiei.com.sg}

MANAGEMENT

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

^{1) CO Y DANIEL, A SINGAPOREAN}

^{- OTHER DIRECTORSHIPS IN OUR DATABASE:}

^{DAIEI PAPERS (S) PTE LTD}

^{2) VIJAY KUMAR GUPTA, A SINGAPOREAN}

^{- OTHER DIRECTORSHIPS IN OUR DATABASE:}

^{INTERNATIONAL FIBER & PAPER PTE LTD}

^{W P 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.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE DECLINED BY 7.5% IN Q1 2007. EXCLUDING PETROLEUM, DOMESTIC SALES FELL BY 7.4%. SECTORS OF ELECTRONIC COMPONENTS, SHIP CHANDLERS AND BUNKERING, INDUSTRIAL AND CONSTRUCTION MACHINERY REPORTED DECLINES OF 11.6% TO 23.8%.

HOWEVER, WHOLESALERS OF FOOD, BEVERAGES AND TOBACCO REGISTERED HIGHER TURNOVER OF 5.4%.

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