MIRA INFORM REPORT

Report Date :

28.08.2008

IDENTIFICATION DETAILS

Name :	LGW LIMITED
Registered Office :	Narayanpur, P.O. – Rajarhat – Gopalpur, 24 Parganas (North), Kolkata – 700136, West Bengal.
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	03.08.1984
Com. Reg. No.:	037792
CIN No.: [Company Identification No.]	U26101WB1984PLC037792
IEC No.:	0288011048
TAN No.: [Tax Deduction & Collection Account No.]	CALL00387C
PAN No.: [Permanent Account No.]	AAACL4610N
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Wholesaler of various types of Glassware’s, Glass based Decorating items and Imitation Jewelry.

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 784580
Status :	Good
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Mr. Arman of the company denied business and financial details. Hence this report is based on secondary sources. Subject is a well established and progressive company having satisfactory track. Trade relations are fair. Financial position is satisfactory. Payments are reported as slow but correct. The company can be considered good for normal business dealings at usual trade terms and conditions.

INFORMATION DECLINED BY

Name :	Mr. Arman
Designation :	Sr. Executive
Contact No.:	91-9874595514
Date :	26.08.2008

LOCATIONS

Registered Office :	Narayanpur, P.O. – Rajarhat – Gopalpur, 24 Parganas (North), Kolkata – 700136, West Bengal, India
Tel. No.:	91-33-25733423 / 2573313
Mobile No.:	91-9444062850 / 9830254841 / 9874595514
Fax No.:	91-33-25733990
E-Mail :	lgwltd@vsnl.com akg@lgwltd.com
Website :	www.lgwltd.com

DIRECTORS

Name :	Mr. Sanjay Kumar Gupta
Designation :	Director
Address :	AE – 588, Salt Lake City, Kolkata – 700064, West Bengal, India
Date of Birth/Age :	11.03.1960
Date of Appointment :	01.04.2002
Name :	Mr. Amit Kumar Gupta
Designation :	Director
Address :	AE – 588, Salt Lake City, Kolkata – 700064, West Bengal, India
Date of Birth/Age :	06.10.1962
Date of Appointment :	03.08.1984
Name :	Mrs. Rekha Gupta
Designation :	Director
Address :	AE – 588, Salt Lake City, Kolkata – 700064, West Bengal, India
Date of Appointment :	18.04.2003

KEY EXECUTIVES

Name :	Mr. Abhay Kumar Gupta
Designation :	Principle Advisor
Name :	Mr. Pankaj Kumar Gupta
Designation :	President (Marketing)
Name :	Mr. Nitin Gupta
Designation :	President (Project and development)
Name :	Mrs. Roopal Gupta
Designation :	President (Business Promotion)
Name :	Mr. Manabendra Guha
Designation :	Advisor
Name :	Mr. Venkateshan Mohan
Designation :	Vice President (International Marketing)
Name :	Mr. Prodiptamoy Mukhopadhyay
Designation :	General Manager and Company Secretary
Address :	Anupama Housing Complex, Phase 2, 74CC/3, Kolkata – 700052, West Bengal, India
Date of Birth :	21.08.1952
Date of Appointment :	12.09.2007
Phone No.:	25005767
Email :	prodiptam@lgwltd.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2006

Names of Shareholders	No. of Shares
Mr. Sanjay Kumar Gupta	3666024
Mr. Amit Kumar Gupta	878946
Mr. Abhay Kumar Gupta	30
Mr. Pankaj Kumar Gupta	150
Mrs. Seema Gupta	150
Mrs. Rekha Gupta	44550
Mr. Nitin Gupta	150
Total	4590000

AS ON 30.09.2006

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Wholesaler of various types of Glassware’s, Glass based Decorating items and Imitation Jewelry.
Products :	· Glassware’s · Glass based Decorating items · Imitation Jewelry.
Exports :
Products :	Raw Cotton Textile Yarns Textile Fabrics Gem and Jewellery Iron and Steel Product Handicraft Capital Machineries Chemicals
Imports :
Products :	Machineries Electronic Items Office Furniture

GENERAL INFORMATION

No. of Employees :	About 100
Bankers :	State Bank of India, Commercial Branch, N.S. Road, 8 N.S. Road, Kolkata – 700001, West Bengal, India

Banking Relations :	Satisfactory
Auditors :
Name :	Sanjay Dixit Chartered Accountant
Address :	408, Kamalalaya Center, 156A, Lenin Sarani, Kolkata – 700013, West Bengal, India

CAPITAL STRUCTURE

AS ON 30.09.2006

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs. 10/- Each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4590000	Equity Shares	Rs. 10/- Each	Rs.45.900 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		45.900	45.900	45.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		111.016	108.824	97.937
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		156.916	154.724	143.837
LOAN FUNDS
1] Secured Loans		120.728	58.749	55.078
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		120.728	58.749	55.078
DEFERRED TAX LIABILITIES		1.424	0.000	0.000
TOTAL		279.069	213.474	198.716
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		74.388	37.014	38.303
Capital work-in-progress		11.758	31.827	29.607
				0.000
INVESTMENT		21.906	10.930	22.502
DEFERREX TAX ASSETS		0.000	0.000	0.000
				90.412
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	185.147	92.205	50.208
	Sundry Debtors	40.151	40.504	32.926
	Cash & Bank Balances	6.834	13.047	4.494
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	82.707	31.190	25.384
Total Current Assets		314.839	176.946	113.012
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	142.951	42.932	4.711
	Provisions	0.873	0.314	0.000
Total Current Liabilities		143.824	43.246	4.711
Net Current Assets		171.015	133.701	108.302
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		279.069	213.474	198.716

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		1132.113	275.398	496.052
Other Income		24.674	15.341	33.326
Total Income		1156.787	290.739	529.378
Profit/(Loss) Before Tax		3.338	12.689	0.100
Provision for Taxation		0.000	0.000	0.000
Profit/(Loss) After Tax		3.338	12.689	0.100
Expenditures :
	Raw Material Consume	14.058	0.000	0.0000
	Purchases made for re-sale	1159.370	254.522	511.859
	Consumption of stores and spares parts	0.000	0.000	0.000
	Increase/(Decrease) in Finished Goods	(86.917)	0.000	0.000
	Salaries, Wages, Bonus, etc.	1.724	1.036	0.516
	Managerial Remuneration	0.732	0.672	0.546
	Payment to Auditors	0.106	0.078	0.077
	Interest	15.688	5.950	4.917
	Insurance Expenses	0.503	0.420	0.307
	Power & Fuel	1.066	0.000	0.000
	Depreciation & Amortization	4.312	2.333	2.188
	Other Expenditure	42.807	13.039	8.869
Total Expenditure		1153.449	278.050	529.279

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	00.28	04.36	00.01
Net Profit Margin (PBT/Sales)	(%)	00.29	04.60	00.02
Return on Total Assets (PBT/Total Assets}	(%)	00.78	04.94	00.04
Return on Investment (ROI) (PBT/Networth)		02.12	08.20	00.06
Debt Equity Ratio (Total Liability/Networth)		1.68	0.65	0.41
Current Ratio (Current Asset/Current Liability)		2.94	4.09	23.98

LOCAL AGENCY FURTHER INFORMATION

Trustseal Acceptance Chart

Existence Verification
Name	CGW LIMITED
Statutory Approvals
Income Tax Registration	AAACL4670N
Import Export Code	0288011048
Credibility Factors
IndiaMART Client Since	8 Years

Form No.8

This form is for

Modification of charge

Charge identification number of the modified

80018899

Corporate identity number of the company

U26101WB1984PLC037792

Name of the company

LGW LIMITED

Address of the registered office or of the principal place of business in India of the company

Narayanpur, P.O. – Rajarhat – Gopalpur, 24 Parganas (North), Kolkata – 700136, West Bengal, India

Type of charge

Immovable Property

Particular of charge holder

Name :	State Bank of India
Address :	Commercial Branch, N.S. Road, 8 N.S. Road, Kolkata – 700001, West Bengal, India
Email :	Sbi.04125@sbi.co.in

Nature of description of the instrument creating or modifying the charge

Memorandum of deposit for creation of further charge for term loan / overall limit where the initial charge is created by way of mortgage by deposit of title deeds.

Date of instrument Creating the charge

07.07.2007

Amount secured by the charge

Rs.280.000 Millions

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

Rate of Interest

As stipulated by the bank from time to time as per the banking norms and rbi guidelines.

Terms of Repayment

As may be stipulated by the bank from time to time

Margin

As stipulated by the bank for the respective assets from time to time

Extent and Operation of the charge

First charge on the whole of the mortgage properties

Short particulars of the property charged

1) Title deed no. l 795 dated 12.02.1996

2) Title deed no. l 814 dated 30.11.1994

3) Title deed no. l 791 dated 30.11.1994

4) Title deed no. l 792 dated 30.11.1994

5) Title deed no. l 1595 dated 20.01.1995

All are situated at Mouza Gopalpur, Sub Registry Office Bihan Nagar, 24 Praganas (N)

Date of latest modification prior to the present modification

07.12.2006

Particulars of the present modification

By this modification the overall limit is enhanced by rs.130.000 millions from rs.150.000 millions to rs.280.000 millions. Particulars of immovable properties and all other terms and conditions continue to remain as before in full force and effect

Web Details Attached

Index

Since the day Laxmi Glass Works (Subject from 1984) was formed in 1933 Their way of working towards and achieving their goals has been designed to get the best out of their people. Today, they've achieved significant results in everything they do, be it improved productivity or stringent quality control. It has only been possible through commitment to technology, to innovative approach of doing business, to their people and to the entire world . They are exporters and wholesale suppliers of Cotton Yarn from India.

Profile

Their Brief History

Subject Group came into existence way back in the year 1933, when Mr. Pragdas Gupta, a young man from Firozabad in Uttar Pradesh came to then Calcutta and made a humble beginning with his savings. He started the business as a wholesaler of various types of Glasswares, Glass based decorating items and Imitation Jewellery with a handful of clients under the name and style "Laxmi Glass Works."

As the time progressed, Mr. Gupta expanded his business in diversified fields and started trading activities in plastic products of different kinds and variety.

To give effect to his well thought of succession plan, Mr. Gupta, in a gradual process, passed on the management of the business activities to his only son, Mr. Kali Charan Gupta.

Mr. Kali Charan Gupta was managing the business effectively well and was able to expand the business both in terms of volume and value. His physique started creating troubles in his effective functioning to manage the business. He was not keeping good health and was facing all the problems in handling the business activities effective and efficiently.

Left with no other alternatives, Mr. Sanjay Kumar Gupta, the eldest son of Mr. Kali Charan Gupta, at his early stage of adolescence at the age of 11 years had to shoulder the responsibilities of managing the business operations and joined hand with his father to extend all the support and assistance required to take forward the business further.

Mr. Sanjay Kumar Gupta had a strong and wide vision and the Company made a march forward in right direction with required perspective.

After the demise of Mr. Kali Charan Gupta, all other three sons gradually joined the family business, Mr. Sanjay Kumar Gupta assumed the leading role. Backed with able manpower, collective wisdom, sustained effort of the promoters, mixed with visions, Organisational framework was established and the Company within a very short span of time graduated to the status of a Limited Company in stages from the Trading concern to proprietorship Company to Private Limited Company to Limited Company on 3rd August,1984 to keep pace with the economic and business scenario of the country. To meet increased business opportunities and commitments, especially with Bangladesh, Infrastructural facilities were developed to accommodate increased business initiatives for export of various other items like Chemicals, Minerals, Engineering goods, Food grains, Textile goods, etc.

In the mean time Bangladesh become a major exporter of readymade garments and knitted fabrics to the European and American markets by virtue of being a non-quota Country. In the process it started generating huge demand for Indian Cotton yarn and fabrics which in turn created huge demand for various types of Indian Raw Cotton as raw materials. Subject exploited this opportunity to the maximum extent and became the number one Merchant Exporter in India for Cotton yarn. Gradually the horizon was expanded further and it started exporting Raw Cotton, Textile machinery and enlarged the export destinations from Bangladesh to several other countries like China, Egypt, Italy, USA & several other European Countries.

Subject as the company made a very conscious effort to build the brand "Subject" and Subject Group today has made a distinct identification for itself in the world market with annual turnover crossing US$ 60 Million mark. Constant endeavour for enhancement of infrastructure as the ongoing practice the Company developed additionally a fully modern new warehouse measuring about 60000 Sq. ft. Thus total area of Warehouse reached to the level of 120000 Sq. Ft.

BUSINESS HISTORY PRESENT TREND, GROWTH PROSPECT AND FUTURE PLANNING OF THEIR COMPANY

Prior to partition of Bengal during British rule the firm was having regular business links with the erstwhile East Bengal in undivided India as a domestic supplier from 1933-1947. The original business of the firm was in the area of jewellery various types of plastic goods including imitation jewellery etc in which the firm was a market leader in Calcutta. After birth of Bangladesh as an independent country, the firm started exporting its items to that country since 1973 and gradually made strong foothold in the Bangladesh market and also started export of various other items like Chemicals, minerals, engineering goods, and textile goods as merchant exporter. In the meantime Bangladesh become a major exporter of readymade garments and knitted fabrics to the European and American Markets by virtue of being a non quota country .In the process large scale modern production units for readymade garments/knitted fabrics came up in Bangladesh who started generating huge demand for Indian Cotton yarn and Fabrics as Raw materials for ultimate export of finished goods (Readymade garments) from Bangladesh to European & American Markets.

The Directors of the Co visualized the enormous opportunities for export of Cotton yarn from India and slowly started export of Cotton yarn since 1988 to Bangladesh .By 1990 the Co established its presence as a major supplier of Cotton yarn to all the reputed manufacturers/exporters of garments in Bangladesh.

The experience gained by its directors in textile items prompted them to plan for taking up manufacturing of yarn by setting up of a compact Spinning Mill in West Bengal so as to market the SUBJECT brand in the ever going cotton textile market in the world. With this end in view "Subject Industries " was established in the year 1998 with the ultimate objective of setting up a compact Spinning Mill in West Bengal. To activate the new company, a major portion of the yam export port folio was passed on to them so that it can shape up its own identify under the leadership of Shri Abhay Kumar Gupta who as director of Subject developed the cotton yarn and raw cotton export business and made SUBJECT a top merchant exporter of cotton yam in India and received the following prestigious awards.

• TEXPROCIL “GOLD TROPHY” for securing the position of "Top Indian Exporter" in yarn (Merchant Exporter Category) for the year 2000-2001
• TEXPROCIL “SILVER TROPHY” for securing the "Second Best Indian Exporter" position in yarn (Export to non-quota countries category) for the year 2000-2001
• TEXPROCIL “GOLD TROPHY” for securing the position of "Top Indian Exporter" in yarn (Merchant Exporter Category) for the year 2001-2002
• TEXPROCIL “BRONZE TROPHY” for securing the "Third Best Indian Exporter" position in yarn (Export to non-quota countries category) for the year 2001-2002

The company, besides exporting textile yarn to Bangladesh is also exporting bulk chemicals like chemicals for garments, Liquid Chlorine Gas, Hydrochloric acid, Bleaching powder, Iron and steel products lie hot and cold rolled sheets, coils, rods, electric generating sets and other machineries to Bangladesh, Myanmar and also exporting textile fabrics to Myanmar and Thailand. The company has recently setup its Handicraft Division and already started exporting various types of handcrafted metallic and nonmetallic Jewellery items like bangles, earrings, necklace etc. of unique design with precious and semiprecious stones, normal woodcraft items, sandalwood items, fancy leather bags, purses etc.

The company has also taken up import business in a big way and regularly importing various types of consumer items, sophisticated office furnitures, toilet fittings etc.

DIRECTOR'S PROFILES

The Directors of the Company possess very rich and wide range of business experience through their long association with international trade and marketing. Besides, they have acquired vast experience in wholesale domestic trade of different products and in international trade. They have also acquired vast knowledge about trade and commerce through their visit to several European, South East and Far East and Middle East Countries.

Mr.Sanjay Kumar Gupta

Mr.Sanjay Kumar Gupta, 48 years of age, Chairman, SUBJECT , has been a resident of Kolkata,W.B. since birth. His milestone achievement in business has become the road map for the new comers and the Company's overall growth. He has very vast experience in the export business and is looking after the overall strategic decisions of the company. He has rich business knowledge and experience of 37 years which is an asset for the company in taking it to a much loftier heights.

Mr. Amit Kumar Gupta

Mr. Amit Kumar Gupta, 46 years of age,Managing Director, Subject has been a resident of Kolkata, W.B, since birth. He has completed his education from Calcutta and joined his family business. He has vast experience in the merchandise export line. He has almost 23 years business experience and his strong presence has contributed for the growth a lot for the growth of the Company. His relentless efforts has helped the company to earn various prestigious awards from the Government of India.

Mrs. Rekha Gupta

Mrs. Rekha Gupta, 42 years of age, Director, Subject, W/o of Mr. Sanjay Kumar Gupta has completed her education from Kolkata and joined the business and is constantly involved with the business. She has rich and strong business knowledge and is overseeing the HR and Administrative function of the company.

Corporate Mission and Vision Statement

The Board has set a value system which is embedded in the Corporate framework and working cultures for fulfilling its corporate business objectives as narrated below in line of the Corporate Mission and Vision Statement:-

• To manage the business and achieve excellence in performance at all levels most ethically, with all sincerity and honesty.
• To attach top-most importance to customer satisfaction through maintaining the quality standard of its Products and Services in conformity with the customer's specific needs, specifications.
• Employees satisfaction by providing them eco friendly working environment and self-development opportunities.
• Service to the Nation at large by participation in socio-economic development programmes and creating awareness for maintaining ecologically balanced working environment.

VISION STATEMENT

Through a process of Co-Ordination, Communication and both Forward and Backward integration of resources and opportunities, SUBJECT is set to make the most effective contribution to National Economy following the quality, innovative and creative route with perspective with distinctive identity of a mega Star Export House in India.

MISSION STATEMENT

The Company's mission is to improve the quality of life of the members, staff members and the overall society through a sustained effort following the quality, innovative and creative route applying the knowledge and wisdom of the promoters and dedicated effort of all associated with the company with specific focus on customer satisfaction and expectation on the backdrop of Company's vision statement with required synergy of all the input factors.

CORPORATE GOAL

The strategic decision makers of the company has set a 'goal' to make a big leap and double its export volume by another three years. The Company has also set a target to set up manufacturing facility for converting cotton to yarn apart from other business initiatives.

The company believes in the fact that "Growth must come from within". To ensure that organic growth, the Company has also set a goal to uplift the quality of performance of the individuals through training and exposures to different situations.

WORKING ENVIRONMENT

The corporate and registered office of SUBJECT is situated at Narayanpur in Rajarhat-Gopalpur Municipal area nearby to NSC Bose International Airport at Kolkata.

The office premise is surrounded by natural beauty and working environment is eco friendly. Adhering to universal standards, office of Subject is fully equipped with latest version of computers, air-conditioners and other necessary office equipments. This has largely contributed for a very congenial work environment.

WAREHOUSE

SUBJECT being the Export House require sufficient space for warehousing of the products and goods. In view of the requirement of space, the company has set up large warehousing facilities at Narayanpur, Rajarhat within its office compound. The Warehouse is designed with sufficient open space to support movement of goods for loading and unloading. The Warehouse is well connected by road.

Having Company's own fully secured Warehouse measuring about 120,000 sq. ft. with average height of 30 ft. The Warehouse Complex also has fully walled up open land and metal roads to accommodate about 50 trucks at a time. The Warehouse is self contained and its workers are fully trained for damage/waste free loading and unloading operations.

INFRASTRUCTURE AND TECHNOLOGY

The registered and corporate office of the company is hosted in a spacious and beautifully designed building owned by the Company. The entire office is computerized and supported by highly skilled personnel. The company is having its own in-house "Clearing and forwarding" division for taking care of the Customs Clearance functions in respect of all export and import consignments through land customs stations in West Bengal as per the permission granted in favour of the Company by the Customs Authority. Company is going to install Oracle E-suite for its business application software requirement recently. It is based on Oracle platform and by this application, company shall be able to harness the maximum benefit in the systems, Inventory Management, Planning and control.

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.43.73
UK Pound	1	Rs.80.57
Euro	1	Rs.64.29

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	YES
--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