MIRA INFORM REPORT

Report Date :

05.04.2008

IDENTIFICATION DETAILS

Name :	PERFECT BORING PRIVATE LIMITED
Registered Office :	Plot No. 3822/A, Phase IV B / Hindo – Erman Tool Room GIDC, Vatva, Ahmedabad – 382 445, Gujarat
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	18.05.2001
Com. Reg. No.:	04-39563
CIN No.: [Company Identification No.]	U29222GJ2001PTC039563
TAN No.: [Tax Deduction & Collection Account No.]	AHMP02974G
PAN No.: [Permanent Account No.]	AACCP7040E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Parts of Injection Moulding machines, Road Construction Machinery Parts, Parts of Heavy Steel Plants, CNG Gas Compressor Parts, Pharmaceutical Machinery Parts , Heavy Gear Boxes, etc.

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 62000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established and reputed company having satisfactory track. Trade relations are fair. Business is active. Payments are reported as usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office / Factory :	Plot No. 3822/A, Phase IV B / Hindo – Erman Tool Room GIDC, Vatva, Ahmedabad – 382 445, Gujarat, India
Tel. No.:	91-79-25841920 / 25841921
Mobile No.:	91-9879615921 / 9825411450 / 9825605456
Fax No.:	91-79-25841920
E-Mail :	robaj@rediffmail.com perfact1@sify.com
Website :	www.tradeindia.perfectboring.com
Area :	2262 Sq.mtrs
Location :	Leased
Branches 1 :	Plot No. 3753/ B, Phase IV, GIDC, Vatva, Ahmedabad – 382 445, Gujarat, India
Area :	1650 Sq.mtrs
Location :	Leased
Branches 2:	C -1/ B, Plot No. 4622, Phase IV, GIDC, Vatva, Ahmedabad – 382 445, Gujarta, India
Area :	704 Sq.mtrs
Location :	Leased

DIRECTORS

Name :	Mr. Vasant Modi
Designation :	Director
Address :	Jaykrishna Bunglows, Jaygurudevnagar, JK Steel Galli, Amraivadi, Ahmedabad – 26, Gujarat, India
Date of Birth/Age :	29 years / 12.06.1957
Qualification :	Mechanical Engineer
Date of Appointment :	10.05.2001
Name :	Mr. Manoj Modi
Designation :	Director
Address :	Jaykrishna Bunglows, Jaygurudevnagar, JK Steel Galli, Amraivadi, Ahmedabad – 26, Gujarat, India
Date of Birth/Age :	45 years / 27.06.1962
Qualification :	B Sc
Date of Appointment :	18.05.2001
Name :	Mrs. Kusum V modi
Designation :	Director
Address :	Jaykrishna Bunglows, Jaygurudevnagar, JK Steel Galli, Amraivadi, Ahmedabad – 26, Gujarat, India
Date of Birth/Age :	49 years / 19.09.1956
Qualification :	BA
Date of Appointment :	16.08.2001
Name :	Mr. Vinod Mewada
Designation :	Director
Address :	Madavpark Society, B / H, Swaminarayn Gurukul, Vsastral Road, Ahmedabad - , Gujarat, India
Date of Birth/Age :	39 years / 07.09.1968
Qualification :	Diploma Mechanical
Date of Appointment :	16.08.2001

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders (as on 31.03.2007)	No. of Shares
Mr. Vasant Modi	130000
Mr. Manoj Modi	23000
Mrs. Kusum Modi	2000

Equity Shares Breakup (Percentage of Total Equity): (as on 31.03.2007):-

Sr No.	Category	Percentage
1	Directors or relative of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Parts of Injection Moulding machines, Road Construction Machinery Parts, Parts of Heavy Steel Plants, CNG Gas Compressor Parts, Pharmaceutical Machinery Parts , Heavy Gear Boxes, etc.
Products :	Ø Parts of Injection Moulding machines, Road Construction Machinery Parts Ø Parts of Heavy Steel Plants, CNG Gas Compressor Parts Ø Pharmaceutical Machinery Parts Ø Heavy Gear Boxes, etc. Ø And all other precision machinery works
Exports :
Countries :	Germany, Japan, Korea
Imports :
Products :	Machines
Countries :	Taiwan, Korea
Terms :
Selling :	Credit (30 – 90 Days)
Purchasing :	8 to 10 PDC (Advance payment)

GENERAL INFORMATION

Customers :	Exporters · Ferromatik Milacron (I) Limited. · The Indian Sugar General and Engg.Corp. (Isgec) · L And T Case Equipments Private Limited. · Karnavati Engineering Limited. · Premium Energy Transmission Limited. · Windsor Machines Limited. · Masta Machinery Stores Private Limited. · Dresser-Rand India Private Limited. · Sayaji Iron and Engineering Company Limited . · Ingersoll – Rand (India) Limited. · Rockwell Structurals (Essar Group
No. of Employees :	100
Bankers :	Bank of India Ahmedabad Main Branch, Mazzainine Floor, BOI Building, Bhadra, Ahmedabad – 380 0001, Gujarat, India
Facilities :	CC - Rs. 12.000 millions
Banking Relations :	Satisfactory
Auditors :
Name :	RRS and Associates Chartered Accountants
Address :	211 Kamal Complex, Near Stadium Circle, Opposite State Bank of Saurashtra, Ahmedabad – 380 009, Gujarat, India
Tel No.:	91-79-26561202
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
350000	Equity Shares	Rs. 10/- each	Rs. 3.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
350000	Equity Shares	Rs. 10/- each	Rs. 3.500 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		3.500	3.500	3.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		11.847	6.568	3.712
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		15.347	10.068	7.212
LOAN FUNDS
1] Secured Loans		13.963	8.736	9.070
2] Unsecured Loans		19.784	14.749	16.074
TOTAL BORROWING		33.747	23.485	25.144
DEFERRED TAX LIABILITIES		2.305	1.224	0.579
TOTAL		51.399	34.777	32.935
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		43.617	31.851	25.609
Capital work-in-progress		0.000	0.125	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1.679	2.511	1.864
	Sundry Debtors	12.211	7.781	8.133
	Cash & Bank Balances	0.291	0.183	0.247
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	4.813	1.110	2.665
Total Current Assets		18.994	11.585	12.909
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	5.189	0.829	4.155
	Provisions	2.868	2.780	1.428
Total Current Liabilities		8.057	3.609	5.583
Net Current Assets		10.937	7.976	7.326
Less: Creditors for capital goods		[3.155]	[5.175]	0.000
MISCELLANEOUS EXPENSES		0.000	0.000	0.002
TOTAL		51.399	34.777	32.935

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006
Sales Turnover		53.022	37.327
Other Income		0.027	0.036
Total Income		53.049	37.363
Profit/(Loss) Before Tax		7.183	4.451
Provision for Taxation		1.728	1.596
Profit/(Loss) After Tax		5.455	2.855
Expenditures :
	Cost of Goods Sold	34.125	23.207
	Administrative Expenses	3.360	1.888
	Financial Charges	1.892	1.530
	Selling and Distribution Expenses	2.134	2.411
	Salaries, Wages, Bonus, etc.	1.807	0.750
	Managerial Remuneration	0.796	1.508
	Payment to Auditors	0.056	0.035
	Depreciation & Amortization	1.695	1.577
	Other Expenditure	0.000	0.002
Total Expenditure		45.865	32.908

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	10.28	7.64	NA
Net Profit Margin (PBT/Sales)	(%)	13.54	11.92	NA
Return on Total Assets (PBT/Total Assets}	(%)	11.47	10.22	NA
Return on Investment (ROI) (PBT/Networth)		0.46	0.44	NA
Debt Equity Ratio (Total Liability/Networth)		2.72	2.69	4.26
Current Ratio (Current Asset/Current Liability)		2.35	3.21	2.31

LOCAL AGENCY FURTHER INFORMATION

FORM 8:-

Name of the company

PERFECT BORING PRIVATE LIMITED

Presented By

Mr. Vasantbhai J Modi , Director

1) Date and description of instrument creating the change

Agreement of loan cum hypothecation of plant and machinery, stock and book debt dated 07.10.2004 executed by M/s perfect Boring Private Limited (hereinafter called the company) in favour of bank of India, Ahmedabad Main Branch, Ahmedabad (hereinafter called the Bank)

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

Rs. 8.500 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

Fund Based	Rs. in millions
CC Stocks	1.000
CC book debts	2.500
IBP / BD / IBN	1.000
MAX 2+3	3.000
Term Loan	4.500
Total (MAX)	8.500

All tangible movable machineries and plant, both present and future and whether installed or not and whether lying loose or in cases at site or in transit a short particulars which are disclosed in Part A of the Schedule II of Agreement of hypothecation , hereunder annexed or which may at any time during the continuance of this security being in or upon or about the company premises, godowns at Plot No. No. 3822/A , GIDC Estate, Phase IV, B /H Indo German Tools Limited, Vatva , Ahmedabad or wherever else the same may be or be held by any party anywhere to the order and disposition of the borrower or in the course of transit to the company.

All tangible movable properties and assets of whatsoever nature of the company (both present and future) and including but without prejudice to the generality of the foregoing , all stocks of raw materials such as MS plates, Ms round Bars, CI Castings, SG iron castings, Welding Rods, etc and spares parts, Components (including spare parts and stores relating to Plant and Machineries both present and future ) stock in process of the company wheresoever situates at Plot No. 3822/A GIDC Estate, Phase IV, B/H Indo German Tool Limited Vatva, Ahmedabad , a short particulars where of are described in Part B of Schedule II annexed of agreement of hypothecation , and / or in transit now belonging to or that may at any time to the order and disposition of the company .

All the present and future book debts outstanding , money receivables , claims, bills which are now due book debts and owing or which may at any time hereafter during the continuance of this security become due and owing to the company in the course of its business by any persons , firm , company or body corporate or by central government or any state government, or any government department or office or any municipal or local or public or semi government or authority or any body corporate or undertaking or project whatsoever.

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

First charge by way of hypothecation on all the machineries , stocks, and book debts as mentioned in item No. 3 above as are or may at any time be in the possession or power of the company to secure non fund facilities of Term Loan and working capital facilities aggregating Rs. 8.500 millions and for due payments of all money whatsoever due owing and payable by the company to the bank, under or in respect of or in connection with or in anywise concerning or relating to the aforesaid facilities agreed to be granted and / or granted by the bank to the company and also for due repayment of all present and future indebtedness and liabilities of the company accrued or accruing with all relative whether solely or jointly primary or collateral accrued or accruing with all relative interest / commission , charges and expenses and on the terms and conditions as per written hereto with a power to seize and realize.

Cash credit - Stocks

Rate of Interest – 1.00% over BPLR p0resently 11.75% p.a with monthly

Repayment – on Demand / Annual Review

Cash credit – Book debts

Rate of Interest – 1.00% over BPLR 11.75% p.a with monthly rests

Repayment – On Demand / Annual review

IBP / BD / IBN (DP / DA -120 days)

Rate of Interest – 1.010% over BPLR presently 11.75% p.a with monthly rest.

Commission – As per Bank rules

Repayment – On Demand / Annual Review

Tem Loan

Rate of Interest – 1.00% over BPLR presently 11.75% p.a with monthly rest.

Repayment: Repayable in 120 quarterly installments of Rs. 0.225 millions each commencing after 6 months from the first disbursement.

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

Bank of India, Ahmedabad Branch, BOI Building, Bhadra, Ahmedabad – 380 001, Gujarat, India

6) Date and brief description of instrument modifying the charge

Supplemental deed of hypothecation dated 15.03.2005 covering the additional working capital limits of Rs. 0.875 millions

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.

The bank has granted the additional CC stock limit of Rs. 0.250 millions (against hypothecation of stocks ) CC Book debts limit of Rs. 0.625 millions (against hypothecation of book debts) making aggregate limits of Rs. 9.375 millions and that the securities being the said movable properties hypothecated and charged to the bank by the Principal agreement of hypothecation of plant and Machinery , stocks and book debts shall w.e.f 15.03.2005 shall constitute the security to the bank not only for existing limit of Rs. 8.500 millions , gut also for the additional limits of Rs. 0.875 millions making the total of Rs. 9.375 millions ,. Thus the charge of hypothecation of Plant and Machinery, Stocks and book debts will operate for Rs. 9.375 millions.

Facility	Existing	Additional	Total
	(Rs. in millions)
CC Stock	1.000	0.250	1.250
CC Book Debts	2.500	0.625	3.125
IBP / BD / IBN (DP – DA 120 Days)	1.000	0.000	1.000
Max 2 and 3	3.000	0.625	3.625
Term Loan	4.500	0.000	4.500
Aggregate (Max)	8.500	0.875	9.375

Corporation identity number or foreign company registrations number of the company

U29222GJ2001PTC039563

Name of the company

PERFECT BORING PRIVATE LIMITED

Address

Plot No. 3822/A, Phase IV B / Hindo – Erman Tool Room GIDC, Vatva, Ahmedabad – 382 445, Gujarat, India

This Form is for

Modification of charge

Type of Charges

Book Debts

Movable property

Particular of the charge holder

Bank of India

Address: Ahmedabad Main Branch, Mazzaine Floor, BOI Building, Bhadra,. Ahmedabad – 380 001, Gujarat, India

Email : boiahmedabadr@satyam.net.in

Nature or description of the instrument creating charge

Supplemental deed of hypothecation executed by the company in favour of Bank of India Ahmedabad Main Branch to secure the modified and increased limits of Rs. 66.609 millions

Date of the instrument creating charge

26.02.2008

Amount Secure by the charge

Rs. 66.609 millions

Brief of the principal terms and conditions and extent and operation of the charge

Rate of Interest :

CC stocks / CC Book Debts / IBP / BD – 0.50% below BPLR presently 12.75% p.a with monthly rests or such other rate as may be prescribed by the bank from time to time term Loan - 0.50% below BPLR presently 12.75% p. a with monthly rests or such other rate as may be prescribed by the bank from time to time

Guarantee – commission as per bank rule.

Terms of Repayment:

Cash credit stock / Book debts IBP / BD – On Demand / Annual review

Term Loan I – 20 Quarterly installments of Rs. 0.225 millions each

Term Loan II 20 Quarterly installments of Rs. 0.500 millions each commencing 3 months after first disbursement and Interest as and when applied on monthly basis

Term Loan III 16 Quarterly installments of Rs. 2.344 millions each commencing from Rs. 31.01.2010 and Interest as and when applied on monthly basis

Guarantee – on Demand / annual review.

Margin:

CC stocks – 25% , CC book debts -40 % , IBP / BD -15%

Term Loan I -25% , Term Loan II -35% , Term Loan III -25%

Guarantee – 20%

Extent and operation of the Charge:

First and exclusive hypothecation charge on all the tangible movable properties like plant and machinery, stocks of materials, book debts and all other movable assets of the company to secure the fund based and on fund based aggregate limits of Rs. 66.609 millions alongwith Interest, additional limit, penal tint, costs, charges and commission and all such other amount due to the bank of what so ever nature.

Others:

Limits are	Ext	Addl	Total Rs in millions
CC Stock	3.750	0.750	3.000
CC BK Dts	6.250	8.250	14.500
IBP / BD	2.000	Nil	2.000 MAX BKDT +IBP /BD -14.500 Max WC -17.500
Term Loan I	2.736	[0.651]	2.085
Term Loan II	10.000	[0.976]	9.024
Term Loan III	Nil	37.500	37.500 Total Fund Based Max – Rs. 66.109 millions
NF Based- GUA	0.500	Nil	0.500
Aggate Max	23.236	43.373	66.609

Short particulars of the Property charged

All movable plant and machinery both present and future and whether installed or not and whether lying loose or in case at site or in transit at factory premises of the company at Plot No. 3822 / A, 3753/ B and 4622/B /1, GIDC PH IV Vatva Ahmedabad

All stock of material raw semi finished goods and finished both present and future where so ever situate at company factory premises and or elsewhere

All book debts both present and future, bills, outstanding, money receivables, claims which are now due or become due as per annexure.

Particulars of the present modification

Bank has cancelled Adhoc CC stock and book debts , realigned term loan I and II granted additional CC book debts limit of Rs. 9.500 millions , new term loan of Rs. 37.500 millions thus modifying and increasing the total aggregate limits from Rs. 23.236 millions to Rs. 66.609 millions . thus the first and exclusive hypothecation charge on all the movable assets like plant and machinery , stocks and book debts and other assets will operate for Rs. 66.609 millions w.e.f 26.02.2008, details as per annexure.

TRADE REFERENCES:

· Ferromatik Milacron (I) Limited. Ahmedabad, Gujarat, India

· The Indian Sugar General And Engineering Corp (ISGEC), Yamuna Nagar, Haryana, India

· L And T Case Equipments Private Limited, Pithampur, Madhya Pradesh, India

· Karnavati Engineering Limited, Mehsana, Gujarat, India

WEBSITE DETAILS:

The Company is a manufacturer of precision machining job as per sample/drawing in mild steel, brass, steel, aluminum catering to heavy industries like cement, pharmaceuticals, textile, and engineering units.

They provide a package of services to support the schedules and/or emergency equipment needs. They operate two full-time shifts and 24/7 paging for scheduled and emergency service.

They conduct a detailed study of the latest technology in precision machining and boring works in order to combine all the beneficial technology and to produce products, which are impeccable and faultless.

Services

Machining of precision tolerance components on HMC and DCMC and Heavy Duty Components on CNC/Conventional Horizontal Boring Machines, Floor Boring Machines, Heavy Duty Lathes and Radial Drill Machines and Fabrication Works.

Benefits and Advantages

Their services are very favorable for their customers. They are designed and developed according to the customer’s requirements. Therefore, the company has modified the definition of precision machining. The goal, which they chase, is 100% customer satisfaction and they are committed to achieve that with a combination of quality, efficiency, and durability, which they offer in their products/services. Thus, the company strives to be the best and achieve the pinnacle of success within a short period of time.

Why Them?

· Global quality products from appropriate source across the world at very competitive price

· Customized products available

· Offer complete technical help for our products and job work for CNC Milling and Boring

· Competitive pricing since they deal directly through plants

· Quick customer feedback.

Inspection Facilities

Inspection facility with qualified inspectors (Mechanical Engineers) and all types of precision measuring instruments are available with them. Quality is the most important element of their business policy. They are fully committed to quality of their products and services that is achieved through:

· Every finished product is checked in their workshop after processing and rechecked by a special team prior to delivery

· Satisfactory completion of Job Work: Quality of their services is determined by the satisfaction of clients. They keep on giving repeat services till their clients are satisfied

· Complete Testing and Alteration of Imported Machinery: Prior to delivery, they thoroughly check imported machinery and repair/alter it in case of any discrepancy and meet customer specifications.

Client List:-

Clients Name	Products
Ferromatik Milacron (I) Limited Ahmedabad, Gujarat	All Types of Plastic Injection Moulding Machines. (Hydrallics and Mechanicals)
The Indian Sugar General And Engg.Corp. (ISGEC) Ymunanagar, HARYANA	Mechanical and Hydraulics Heavy Presses
L And T Case Equipments Private Limited Dhar, Madhya Pradesh	Road Constructions Equipments Like Loaer Machines, Vibrators
Karnavati Engineering Limited Mehsana, Gujarat	Pharmaceutical Machinery
Premium Energy Transmission Limited Chinchwad, Pune	Heavy Gear Boxes
Windsor Machines Limited Ghandhinagar, Gujarat	All Types of Plastic Injection  Moulding Machines. (Hydrallics and Mechanicals)
Masta Machinery Stores Private Limited Kathwada, Ahmedabad	Manufacutring Of Bearing Housings
Dresser-Rand India Private Limited. Ahmedabad, Gujarat	Heavy Air/Gas Compressors
Sayaji Iron And Engineering Company Limited Baroda, Gujarat	Manufacutring of Jaw Crushers
Ingersoll – Rand (India) Limited Ahmedabad, Gujarat	Manufacturing of Compressor Machine
Rockwell Structurals (Essar Group) Surat Gujarat	Steel Plant Machinery

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.40.02
UK Pound	1	Rs.79.44
Euro	1	Rs.62.94

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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