MIRA INFORM REPORT

Report Date :

03.04.2008

IDENTIFICATION DETAILS

Name :	SKIL INFRASTRUCTURE LIMITED
Formerly Known As :	SEA KING INFRASTRUCTURE LIMITED
Registered Office :	Skil House, 209 Bank Street Cross Lane, Fort, Mumbai- 400 023, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	20.02.1990
Com. Reg. No.:	11-55506
CIN No.: [Company Identification No.]	U29110MH1999PLC055506
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	To carry on the business as Importer, Exporter and Trader of Marine Spares, General Machinery Parts, economizer Steel Studded Tubes and Aluminium Guild Tubes. Subject is to carry on all types of infrastructure project, facilities, activities or works and to finance, build, construct, create, install, undertakes, lay down, commission, establish.

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

Maximum Credit Limit :	USD 19408428
Status :	Good
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well – established and reputed company having strong capital base. Available information indicates high financial responsibility of the company. Trade relations are fair. Payments are usually correct and as per commitments. . Nothing adverse reported. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Skill House, 209 Bank Street Cross Lane, Fort, Mumbai- 400 023, Maharashtra, India
Tel. No.:	91-22-22703031 / 23702766
Fax No.:	91-22-22696024 /23733509
E-Mail :	nilesh.mehta@skilgroup.co.in subodhcs@gmail.com
Website :	www.skilgroup.co.in
Head Office :	534/ 535, Vyapar Bhavan, 9 D’mello Road, Carnac Bunder, Mumbai- 400 009, Maharashtra, India
Tel. No.:	91-22-23702766
Fax No.:	91-22-23733509

DIRECTORS

Name :	Mr. Nikhil Prataprai Gandhi
Designation :	Chairman and Whole Time Director
Address :	Damodar Bhavan, 3^rd Floor, Sheetal Building Enclosure, Mahalaxmi Temple Road, Mahalaxmi, Mumbai- 400 026, Maharashtra, India
Date of Birth/Age :	25.04.1958
Date of Appointment :	08.10.1990
Name :	Mr. Bhavesh Prataprai Gandhi
Designation :	Director
Address :	D -4, New Breach Candy Apartment, 4^th Floor, Breach Candy, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	21.01.1966
Date of Appointment :	17.04.1999
Name :	Mr. Vasant Ganpatrao Honnavar (Commandar)
Designation :	Director
	14 Shantivan R M Road, Khar (West), Mumbai – 400 054, Maharashtra, India
Date of Birth/Age :	20.05.1934
Date of Appointment :	08.10.1990
Name :	Mr. N. Ravichandran
Designation :	Whole Time Director
Address :	1/13 Sanjeevani Dr. K A Subramaniam Road, Matunga (East), Mumbai – 400 019, Maharashtra, India
Date of Birth/Age :	28.05.1957
Date of Appointment :	24.04.1995
Name :	Mr. Sanjivi Krishnaswamy Sunder
Designation :	Director
Address:	10 Amaldas Marg, DLF Qutab Enclose Phase – I, Gurgaon, Haryana, India
Date of Birth/Age :	13.03.1939
Date of Appointment :	17.04.1999
Name :	Mr. Veerendra Rai Mehta
Designation :	Director
Date of Birth/Age :	12.01.1934
Date of Appointment :	17.04.1999
Date of Ceasing :	07.08.2003
Name :	Mr. Syed Ashfaq Peeran
Designation :	Director
Address:	No. 11 Morris Road, Richmond town, Bangalore -560 088, India
Date of Birth/Age :	14.02.1949
Date of Appointment :	17.04.1999
Name :	Mr. Chiravery V. Dikshit
Designation :	Director
Address:	Flat No. 33, Plot No. 81 Pamba Co-op Housing Society Sector -29 Vashi, New Mumbai , India
Date of Birth/Age :	22.12.1940
Date of Appointment :	21.02.2000
Name :	Mr. Anand Tandon (USA)
Designation :	Director
Address :	H/3, 8^th Floor, Breach Candy Apartment, Bhulabhai Deasi Road, Mumbai, India
Date of Birth/Age :	20.04.1999
Date of Appointment :	30.09.2003
Name :	Mr. Krishnamurthy Padmanbhan
Designation :	Director
Address :	1401/1402, Vinayak Angan, Old Prabhadevi Road, Worli Mumbai – 400025, Maharashtra, India
Date of Birth/Age :	28.10.1948
Date of Appointment :	29.12.2005
Name :	Mr. C. D. Srinivasan
Designation :	Director
Name :	Mr. S B N Singh
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Makarand Madhav Patwardhan
Designation :	Company Secretary
Address :	B/503, Prestige Park, Ganeshwadi, Panchpakhadi, Thane – 400601, India
Date of Birth/Age :	04.02.1961
Date of Appointment :	01.09.2001
Name :	Mrs. Sweta Shailesh Shah
Designation :	Company Secretary
Address :	48, New Mumbadevi Society, 3^rd Floor, Room No.23, Kakadwadi, Khadilkar Road, Mumbai – 400004, Maharashtra, India
Date of Birth/Age :	05.12.1981
Date of Appointment :	01.09.2007
Email :	skil@skilgroup.co.in

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 22.03.2007)

Names of Shareholders	No. of Shares
Mr Nikhil Gandhi	3663
Mr. Bhavesh Gsandhi	3663
Mr. Prataprai S Gandhi	333333
Mrs. Neha Gandhi	3663
Mrs. Rupali Gandhi	7326
Metropolitan Industries	105527367
Montana Valves and Compressors Limited	70128135
Ashwini Infrastructure Private Limited	736000

(As on 31.03.2007)

Category	Percentage
Bodies Corporate (Not mentioned above)	39.90
Directors or relatives of directors	60.10
Total	100.00

BUSINESS DETAILS

Line of Business :	To carry on the business as Importer, Exporter and Trader of Marine Spares, General Machinery Parts, Economizer Steel Studded Tubes and Aluminium Guild Tubes. Subject is to carry on all types of infrastructure project, facilities, activities or works and to finance, build, construct, create, install, undertakes, lay down, commission, establish.
Products :	Marine Spares General Machinery Parts Ecnomizer Steel Studded Tubes Aluminium Guild Tubes Product or Services: Infrastructure Development Company

GENERAL INFORMATION

Bankers :	· Union Bank of India Industrial Finance Branch, Nariman Point, Mumbai – 400 021, Maharashtra, India · HDFC Bank Limited HDFC Bank Houses Senapati Bapat Marg, Lower Parel (West), Mumbai– 400013, Maharashtra, India
Banking Relations :	Satisfactory
Auditors :
Name :	B. G. Shah and Associates Chartered Accountants
Address :	315, Garidas Street, 10, Lokhandwala Building, 1^st Floor, Mumbai- 400 003, Maharashtra, India
Tel. No.:	91-22-23733536
Name :	Bharat Shah and Associates Chartered Accountant
Address :	512, Vyapar Bhavan, 49 P D’mello Road, Carnac Bunder, Mumbai – 400009, Maharashtra, India
Subsidiaries :	Gujarat Positra Port Infrastructure Limited Grevek investment and Finance Private Limited Gujarat Positra Port Company Limited Pipavav Ship Dismantling and Engineering Limited Poseidon Infrastructure Limited (formerly Gujarat Pipavav LNG Company) Pipavav Railway Corporation Limited Sagar Inflatable Limited Donyi Polo Petrochemicals Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
260000000	Equity Shares	Rs. 10/- each	Rs.2600.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
252388130	Equity Shares	Rs. 10/- each	Rs.2523.881 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		2523.881	690.549	690.549
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2253.226	4085.279	4625.049
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4777.107	4775.828	5315.598
LOAN FUNDS
1] Secured Loans		602.248	51.414	2356.518
2] Unsecured Loans		229.303	229.304	59.805
TOTAL BORROWING		831.551	280.718	2416.323
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		5608.658	5056.546	7731.921
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		48.798	41.299	10.961
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		1406.439	411.788	3487.164
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3052.672	3879.930	4254.392
	Sundry Debtors	0.000	1984.445	0.000
	Cash & Bank Balances	4.940	101.873	3.270
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1633.152	638.849	508.692
Total Current Assets		4690.764	6605.097	4766.354
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	515.932	1939.534	483.256
	Provisions	21.411	62.104	49.318
Total Current Liabilities		537.343	2001.638	532.574
Net Current Assets		4153.421	4603.459	4233.780
MISCELLANEOUS EXPENSES		0.000	0.000	0.016
TOTAL		5608.658	5056.546	7731.921

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005
Sales Turnover		0.000	0.000
Other Income		66.265	80.860
Total Income		66.265	80.860
Profit/(Loss) Before Tax		23.788	21.723
Provision for Taxation		0.824	0.000
Profit/(Loss) After Tax		22.964	21.723
Expenditures :
	Salaries, Wages, Bonus, etc.	9.258	1.891
	Managerial Remuneration	0.000	0.000
	Payment to Auditors	0.257	0.257
	Interest	0.764	47.997
	Insurance Expenses	0.767	0.077
	Power & Fuel	0.000	0.000
	Depreciation & Amortization	3.348	2.382
	Other Expenditure	28.083	6.533
Total Expenditure		42.477	59.137

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	NA	34.65	26.86
Net Profit Margin (PBT/Sales)	(%)	NA	0.00	0.00
Return on Total Assets (PBT/Total Assets}	(%)	NA	0.36	0.45
Return on Investment (ROI) (PBT/Networth)		NA	0.00	0.00
Debt Equity Ratio (Total Liability/Networth)		0.29	0.48	0.55
Current Ratio (Current Asset/Current Liability)		8.73	3.30	8.95

LOCAL AGENCY FURTHER INFORMATION

FORM 8:-

Corporation identity number or foreign company registrations number of the company	U29110MH1990PLC055506
Name of the company	SKIL INFRASTRUCTURE LIMITED
Address	Skil House, 209 Bank Street Cross Lane, Fort, Mumbai- 400 023, Maharashtra, India
This Form is for	Creation of charge
Type of Charges	· Book debts · Movable property · Floating charge
Particular of the charge holder	HDFC Bank Limited Address: HDFC Bank Houses Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India Email: siva.subramanian@hdfcbank.com
Nature or description of the instrument creating charge	Letter of hypothecation
Date of the instrument creating charge	02.11.2006
Amount Secure by the charge	Rs.100.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest : Interest at the rate as may be communicate by the bank from time to time Terms of repayment: On Demand Margin: as may be stipulated by the bank from time to time Extent and operation of the charge Hypothecation by way of first charge stocks, book debts, etc to secure as a continuing security fro repayment of monies due and payable by the company to the bank. Others Nil
Short particulars of the Property charged	Hypothecation by way first charge on: All stock in trade both present and future consisting of raw materials, finished goods, good in process of manufacturing and other merchandise, fixed assets and whatsoever being movable properties now or at any time hereafter belonging to us or at our disposal and now or at any time and from time to time hereafter stored or to be stored or brought into or upon nor in course of transit.

Name of the company	SKIL INFRASTRUCTURE LIMITED (Formerly Known as Sea King Infrastructure Limited)
Presented By	SKIL INFRASTRUCTURE LIMITED (Formerly Known as Sea King Infrastructure Limited)
1) Date and description of instrument creating the change	Term Loan and hypothecation of book debts and receivables agreement dated 05.05.2004
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 250.000 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	All the borrowers (Company) present and future book debts, outstanding monies, deposits, receivables claims, bills, contract securities, investment, rights and assets which include US $70 million from British GM /PC towards LNG project and other receivables on disinvestment of Gujarat Pipavav Port Limited, Pipavav Ship Dismantling and Engineering Limited, and Pipavav Railway and Corporation Limited, by way of first charge on pari passu basis with existing lenders.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest on Term Loan 13.50% p.a with monthly rests. The term Loan shall be repayable in five half yearly installments starting from 12 months after first disbursement as stipulated in the said agreement annexed hereto.
5) Name and Address and description of the person entitled to the charge.	Union Bank of India Industrial Finance Branch Nariman Point, Mumbai – 400 021, Maharashtra , India
6) Date and brief description of instrument modifying the charge	NA
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.	NA

Fixed Assets

• Furniture and Fixture
• Office Equipment
• Vehicle
• Plant and Machinery

Profile:

A privately held company, Subject (formerly Sea King Infrastructure Ltd.), has since the early 1990s, established a tradition of initiating and implementing unique projects. The core strength of the company lies in taking abstract ideas and conceptualizing a project on a grand scale.

Over the last 15 years, the company has been at the forefront of implementation of various projects in key strategic areas such as port, shipyard, railway lines, expressway and urban infrastructure, such as Special Economic Zones, etc. Each of these projects is "first-of-its-kind" in its respective category, whether it is in terms of private sector initiative, private capital and management involvement, or because of the concept and policy initiatives underlying each of such projects.  

SKIL's philosophy is to identify growth-oriented green field projects in the arena of infrastructure, implement them on a time-bound basis and through strategic association with world-class entities, create wealth for all stakeholders.  

In each project that it undertakes, SKIL conceptualizes the project and bears the initial risks. SKIL spearheads the development of these projects, and at each stage, be it design or engineering, or involvement of EPC contractors, SKIL endeavours to work with the best in the world to bring about international standards of quality and delivery.

News:

SKIL may sell 50 pc in Pipavav Shipyard

Vinod Mathew

Mumbai , Nov. 17

THE Nikhil Gandhi-promoted SKIL Infrastructure Ltd is at advanced stage of negotiations with a couple of global players to offload up to 50 per cent equity in the Rs 8000.000 million Pipavav Shipyard Engineering Ltd (PSEL).

SKIL, the founder promoter of Gujarat Pipavav Port Ltd, is understood to be close to clinching a deal that may net them Rs 2000.000 million.

Pipavav Shipyard, which has an equity portion of Rs 2900.000 million and a debt component of Rs 5100.000 million, is eyeing a 30 per cent premium for its investment in the project that has been close to six years in the making. The debt portion has participation from the Japanese government and a consortium of Indian banks.

The Pipavav facility is rated to be among the six largest shipyards in the world, the others being Hyundai and Samsung (Korea), Aker Masa (Norway/Finland), Izhar (Spain) and Damen (Holland). According to industry sources, SKIL is currently negotiating with at least two of the big global players in the shipyard business for divesting stake by the time its four docks get commissioned in a few months' time.

Getting ready at the 200-acre developed property at Pipavav are four docks of 350-metre by 65-metre size, which has seen equipment and design from Sumitomo and OSCC, Japan. The docks would be in a position to build, repair and dry dock VLCCs, ULCCs, LNG carriers, offshore platforms, rigs and large container ships.

The Pipavav shipyard assumes significance in the context of the $84-billion outlay that is expected to come through during the 2007-15 period in the industry. The requirement during these eight years would be to either build anew or replace 700 new VLCCs and ULCCs aggregating to meet with the IMO regulations.

China, which has emerged as a manufacturing hub in the last one decade, is now understood to be keen to move head into more high technology segments. And it is this vacuum that greenfield projects such as PSEL is expected to move into. The last shipyard to be built in India was way back in 1972 at Kochi, underlining the need for adding new infrastructure.

Prepared to shed more

SKIL is also probing options to divest stake to some of the Indian corporates that are trying to enter the shipbuilding sector. If this materialises, the SKIL holding in the shipbuilding yard could come down further, thus rendering whosoever picks up 50 per cent stake the majority partner in PSEL. Coming close on heels to the company's decision to offload 32 per cent equity in GPPL in favour of Maersk Sealand, the industry watchers are left in doubt about SKIL's intentions of shifting its area of operation out of Gujarat.

The draw for the big ticket Indian corporates, as far as the shipbuilding yard is concerned, is the Rs 13,000-crore-per-annum pie of the Ministry of Defence, which is planning to source about 70 per cent of its requirement from public and private sector firms by 2005.

The likes of Tatas, Mahindra & Mahindra and L&T have won contracts that include unattended ground sensors, warships and tanks and light armoured multi-role vehicles. However, it is the breakthrough by L&T, first for making parts of a submarine and now to build a full-fledged submarine, that seems to be putting the Pipavav Shipyard under the limelight.

JNP project: Seaking keen on stake in consortium

P. Manoj

New Delhi , Dec. 27

SEAKING Infrastructure Ltd is keen to pick up a 10 per cent stake in the consortium, which succeeds in bagging the deal for developing and operating a new container terminal at the Jawaharlal Nehru Port (JN Port).

"Whoever wins the contract for running the new terminal, we will be interested in picking up a 10 per cent stake in that consortium," Mr Nikhil Gandhi, Chairman, Seaking Infrastructure Ltd, told Business Line.

Seaking had initially expressed interest in developing the new container terminal at JN Port when the port trust had floated the tender, but later decided against pursuing the project on its own. Instead, Seaking aligned with the French container shipping line, CMA-CGM to bid for the project. But, Seaking withdrew from this consortium before the technical and financial bids were submitted by the short-listed entities on December 1. The French consortium had submitted a non-responsive bid without the bid bond of Rs 4.5 crore and is facing disqualification from the bidding process.

Mr Gandhi said that the main interest behind his desire to pick up a 10 per cent stake in the container terminal facility at JN Port was to provide support to the users of the Special Economic Zone (SEZ) being promoted by Seaking at Navi Mumbai.

"The Navi Mumbai SEZ will generate huge export-import cargo which can be shipped by the users through the new container terminal at JN Port. Besides, raw materials required during the construction stage itself will provide substantial business to the JN Port terminal," said Mr Gandhi. From this point of view, Seaking will be keen to take a 10 per cent stake in the consortium winning the rights to run the new terminal at JN Port, he added.

Maersk-Concor, PSA Corp-Bombay Dyeing Group and Marubeni Corp-Evergreen Marine Corp are the main contenders for operating a new container terminal at JN Port. The Government is likely to announce the name of the private operator by January 15, 2004.

Mr Gandhi also disclosed that Seaking is close to exiting completely from India's first private sector port at Pipavav in Gujarat by selling its 38 per cent stake in Gujarat Pipavav Port Ltd (GPPL) to other consortium partners. PSA Corporation Ltd, Maersk-Sealand, IDBI, New York Life Insurance, CDC Group of U.K. and AMP, Australia holds equity in GPPL.

Seaking has also decided to sell its holding in Pipavav Railways Corporation Ltd (PRCL), a 50:50 joint venture set up between Seaking and the Ministry of Railways to construct, operate and maintain the 270 km-long broad gauge rail line from Surendranagar to Pipavav Port.

"Seaking will sell its 50 per cent equity in PRCL to GPPL, enabling GPPL to become a predominant port and railway company," he said.

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 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.39.98
UK Pound	1	Rs.79.09
Euro	1	Rs.62.25

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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.	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