MIRA INFORM REPORT

Report Date :

14.01.2008

IDENTIFICATION DETAILS

Name :	MSPL LIMITED
Registered Office :	No.117, Baldola Bhavan, Maharshi Karve Road, Mumbai-400020, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	18.10.1961
Com. Reg. No.:	11-12160
CIN No.: [Company Identification No.]	U13100MH1961PLC012160
TAN No.: [Tax Deduction & Collection Account No.]	BLRM10132D
PAN No.: [Permanent Account No.]	AABCM1040N
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Iron Ore Mining, Processing and Exporting Company

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 14170000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an old established and reputed company having fine track. Financial position is excellent. Trade relations are fair. Payments are usually correct and as per commitments. The company is doing well. Nothing adverse reported. It can be regarded as a promising business partner in a medium to long-run.

LOCATIONS

Registered Office :	No.117, Baldola Bhavan, Maharshi Karve Road, Mumbai-400020, Maharashtra, India
Tel. No.:	91-22-22030989
Fax No.:	91-22-24133766
E-Mail :	email@mspllimited.com, mspl.mum@mspllimited.com
Website :	http://www.mspllimited.com
Corporate Office :	Baldota Enclave, Abheraj Baldota Road, Hospet- 583203, Karnataka. India.
Tel. No.:	91-8394-232002/3/4 Mines: 91-8394-244158
Fax No.:	91-8394-232333
E-Mail :	email@mspllimited.com
Factory 1 :	Mines and Export Oriented Unit Vyasanakere Village, Hospet
Area :	347.2 hecrates
Location :	Leased
Factory 2 :	Hosahalli Village, Munirabad-583233
Windmill :	Vankusawade, Satara, Maharashtra, India
Branches :	Bangalore Office: Baldota Villa, No.368, 12th Cross, R.M.V. Hig House, Dollars Colony, New BEL Road, Devasandra, Bangalore 560094, Karnataka. India.
Telefax No.:	91-80-23511988/9
E-Mail :	mspl.blr@mspllimited.com
Branch 2 :	Chennai Office: Door No.10, Plot No.56, Sriram Nagar, 1st Cross Street, Opp. L.I.C.Colony, Thiruvanmiyur, Chennai 600041, Tamilnadu, India
Tel. No.:	91-44-24911875
E-Mail :	mspl.chennai@mspllimited.com

DIRECTORS

Name :	Mr. Abheraj Hirachand Baldota
Designation :	Chairman
Address :	No. 194, Narendra Bhavan, Station Road, Wadala, Mumbai, Maharashtra, India
Date of Birth/Age :	01.08.1916
Date of Appointment :	18.10.1961
Name :	Mr. Narendrakumar A. Baldota
Designation :	Managing Director
Address :	Chinar, Baldota Colony, Dam Road, Hospet 583203, Karnataka, India
Date of Birth/Age :	27.12.1940
Date of Appointment :	11.06.1966
Name :	Mr. Rahul Kumar N. Baldota
Designation :	Director
Address :	Chinar, Baldota Colony, Dam Raod, Hospet 583203, Karnataka, India
Date of Birth/Age :	26.12.1967
Date of Appointment :	16.12.1995
Name :	Mr. Shrenik Kumar N. Baldota
Designation :	Director
Address :	Chinar, Baldota Colony, Dam Raod, Hospet 583203, Karnataka, India
Date of Birth/Age :	27.11.1971
Date of Appointment :	21.09.1998
Name :	Mr. Vasanti Abheraj Baldota
Designation :	Director
Address :	No. 194, Station Road, Wadala, Mumbai 400031, Maharashtra, India
Date of Birth/Age :	02.02.1918
Date of Appointment :	18.10.1961
Name :	Mr. Ramakrishna H. Sawkar
Designation :	Director
Address :	292, 5^th Block, 38^th A cross. Jayanagar, Bangalore 560041, Karnataka, India
Date of Birth/Age :	29.03.1935
Date of Appointment :	21.09.1998
Name :	Mr. Madhava Ravindra
Designation :	Director
Address :	1-B, P G P Manor, 29, Bamaby Road, Kilpauk, Chennai 600010, Tamilnadu, India
Date of Birth/Age :	08.12.1939
Date of Appointment :	01.11.2005
Name :	Mr. Anirudha R. Barwe
Designation :	Independent Director
Address :	B-1, Bageshree Shankar Ghanekar Marg, Prabhadevi, Mumbai 400025, Maharashtra, India
Date of Birth/Age :	06.10.1938
Date of Appointment :	04.01.2006
OTHER DIRECTORSHIP	Ø Sowil Limited CIN No. : U45202MH1996PLC102855 Ø IL AND FS Investment Limited CIN No. : L67120MH1997PLC110386 Ø Jain Irrigation Systems Limited CIN No. : L29120MH1986PLC042028 Ø IFCI Financial Services Limited CIN No. : U74899DL1995PLC064034 Ø Kotak Mahindra Trustee Company Limited CIN No. : L65990MH1995PLC090279 Ø Zenith Birla [India] Limited CIN No. : U85195MH1987PLC043007 Ø Sigma Laboratories Limited CIN No. : U85195MH1987PLC043007

KEY EXECUTIVES

Name :	Mr. A. T. Shaymsundar
Designation :	Company Secretary
Address :	Sri Nivasa Lakshmi Vilas Compound, Hospet 583203, Bellary, Karnataka, India
Date of Birth/Age :	09.12.1934
Date of Appointment :	01.07.2004
Name :	Mr. Shrikar Bhatt
Designation :	Company Secretary
Address :	No. 3, Aaress Complex, Near Reliance Petrol Bunk, Dam Road, Hospet 583203, Karnataka, India
Date of Appointment :	22.05.2006
Name :	Mr. Meda. Venkataiah
Designation :	Executive Director (Mines)
Name :	Mr. G. V. S. B. Reddy
Designation :	General Manager (Corporate)
Name :	Mr. Kishore Kumar Kamisetti
Designation :	General Manager (Marketing & Logistics)
Name :	Mr. S. Raghunathan
Designation :	General Manager (Finance & Accounts)
Name :	Mr. K. R. M. Reddy
Designation :	General Manager (Public Relations)
Name :	Mr. K. V. S. Subrahmanyam
Designation :	General Manager (Power)
Name :	Mr. Arun Solomon
Designation :	General Manager (HR)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Abheraj Hirachand Baldota	825600
Vasanti Abheraj Baldota	3358080
Narendrakumar A. Baldota	4512000
Rahul Kumar N. Baldota	9676800
Lavina Baldota	4800000
Shrenik Kumar Baldota	15225600
Rashmi Baldota	1920
Equity Share Break-up	Percentage of Holding
Directors or relatives of the Directors	100.00

BUSINESS DETAILS

Line of Business :

Iron Ore Mining, Processing and Exporting Company

PRODUCTION STATUS [as on 31.03.2005]

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Iron Ore (Lumps SHG, Fines, Concentrate and Aggregates)	MT	NA	NA	1978568
Industrial Gases (Oxygen, Liquid Oxygen, Medical Oxygen, Nitrogen, Argon and Compressed Air)	CUM	NA	5400000	2385485
Wind Power Generation	KW	NA	387875000	66958462

GENERAL INFORMATION

No. of Employees :	844
Bankers :	Ø State Bank of India Ø The Greater Bombay Co-operative Bank Limited GBCB House, 89, Bhuleshwar, Mumbai 400 002, Maharashtra, India

Banking Relations :	Good
Auditors :
Name :	Mr. S.B. Chhajed & Company Chartered Accountants
Address :	Flat No. 202, Inder Tower, Kakasaheb Gadgil Marg, Off Zandu Pharmaceuticals, Mumbai 400025, Maharashtra, India
Name :	Deloittee Haskins and Sells Chartered Accountants
Address :	Maker Towers [E] Block, 4^th floor, Cuffe Parade, Mumbai 400005, Maharashtra, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
100000000	Equity Shares	Rs.5/- each	Rs.500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
76800000	Equity Shares	Rs.5/- each	Rs. 384.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		384.000	96.000	96.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3159.215	1931.345	893.198
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3543.215	2027.345	989.198
LOAN FUNDS
1] Secured Loans		3373.116	1618.304	450.974
2] Unsecured Loans		352.400	167.800	0.000
TOTAL BORROWING		3725.516	1786.104	450.974
DEFERRED TAX LIABILITIES		1007.917	620.918	118.760
Deferred Government Grants		1.142	1.474	0.000
TOTAL		8277.790	4435.841	1558.932
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4628.188	3932.891	1019.773
Capital work-in-progress		1128.344	168.875	16.454
INVESTMENT		1786.015	809.252	156.436
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	215.523	348.409	226.531
	Sundry Debtors	806.538	381.962	304.178
	Cash & Bank Balances	485.043	277.103	385.285
	Other Current Assets	35.549	21.252	18.519
	Loans & Advances	765.541	296.777	203.601
Total Current Assets		2308.194	1325.503	1138.114
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	1567.503	1603.637	469.071
	Provisions	7.586	198.068	303.946
Total Current Liabilities		1575.089	1801.705	773.017
Net Current Assets		733.105	(476.202)	365.097
MISCELLANEOUS EXPENSES		2.139	1.025	1.172
TOTAL		8277.790	4435.841	1558.932

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		6922.455	6026.009	3121.980
Other Income		821.938	323.724	110.694
Total Income		7744.393	6349.733	3232.674
Profit/(Loss) Before Tax		2665.680	2129.827	1047.399
Provision for Taxation		475.770	721.626	299.419
Profit/(Loss) After Tax		2189.910	1408.201	747.980
Earnings in Foreign Currency :
	Export Earnings	4785.019	5512.503	2928.950
	Other Earnings	0.000	6.019	0.023
Total Earnings		4785.019	5518.522	2928.973
Imports :
	Stores & Spares	NA	5.383	2.267
	Capital Goods	NA	108.197	12.134
Total Imports		NA	113.580	14.401
Expenditures :
	Manufacturing Expenses	0.000	0.000	2077.022
	Purchase made fore resale	378.019	280.881	0.000
	Increase or decrease in finished goods	132.885	[121.877]	0.000
	Salaries, wages	113.872	229.779	0.000
	Managerial Remuneration	30.000	130.304	0.000
	Payment of Auditors	6.872	4.490	0.000
	Interest	160.644	57.574	15.389
	Insurance Expenses	12.234	5.317	0.000
	Power and Fuel	146.033	96.841	0.000
	Depreciation	727.628	334.880	92.997
	Other Expenditure	3370.526	3201.717	0.146
	Total Expenditure	5078.713	4219.906	2185.554

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	28.27	22.17	23.13
Net Profit Margin (PBT/Sales)	(%)	38.50	35.34	33.54
Return on Total Assets (PBT/Total Assets}	(%)	38.43	40.50	48.53
Return on Investment (ROI) (PBT/Networth)		0.75	1.05	1.05
Debt Equity Ratio (Total Liability/Networth)		1.49	1.76	1.23
Current Ratio (Current Asset/Current Liability)		1.46	0.73	1.32

LOCAL AGENCY FURTHER INFORMATION

Company’s fixed assets include Freehold Land, Buildings, Leasehold Land, Mining Lease Rights, Plant and Machinery, Equipments, Furniture and Fixtures, Office Equipments, Vehicles and Barges and Air Craft.

SHARE CAPITAL

During June 2005 the company with the approval of Members in their Extraordinary General Meeting held on 30tfl June, 2005 increased the Authorised Capital to Rs.500 millions.

The company with the approval of members in their Extraordinary General Meeting held on 30l July, 2005 split the face value of Equity Shares from Rs. 100 to Rs. 10).

Further the company with the approval of Members in their Extraordinary General Meeting held on 30th July, 2005 issued bonus shares in the ratio of three shares for every equity share of Rs. 10/- each held.

As on the date of this report the paid up capital of the company stands at Rs. 384 Millions consisting of 38.4 Million equity shares of Rs. 10 each.

STATUS

The Ministry of Commerce, Government of India has awarded "Three Star Export House" status to the company. The Status certificate is issued as per Foreign Trade Policy 2004-09. This certificate is valid for a period of five years, and underscores their substantial Foreign exchange contribution to the country's exchequer.

Power Division

The company's Power Division has the unique distinction of having windmill with a generating capacity of 81.85 MW which generated 66.958 Millions units and an income of R£ 207.244 millions.

The Company is the recipient of the prestigious award for "Highest Productivity and Highest investment in the field of Renewable Energy** in the State of Kamataka for the year 2004 - 2005. The Kamataka Renewable Energy Development Limited and the Energy Department, Government of Karnataka instituted this award.

The company's Unit - II of Mining Division has .been licensed as 100% Export Oriented Unit and the benefits of this license will accrue to the company during 2005-06. The company has achieved a turnover of Rs. 2680 millions as on 31 * August, 2005.

FORM 8

Bankers Charges Report as per Registry

Name of the company	MINERAL SALES PRIVATE LIMITED
Presented By	Mr. Narendra A. Baldota [Director]
1) Date and description of instrument creating the change	Agreement for cash credit dated 27.10.1997
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 22.500 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	Against collection of bills, accepted Hundies and collateral security of title deed of immovable property.
4) Gist of the terms and conditions and extent and operation of the charge.	19.5% period upto 31.12.1998
5) Name and Address and description of the person entitled to the charge.	Ø The Greater Bombay Co-operative Bank Limited GBCB House, 89, Bhuleshwar, Mumbai 400 002, 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

WEBSITE DETAILS:

AN OVERVIEW

Subject was originally founded by the late Mr. Abheraj H. Baldota in 1961. Prior to their incorporation, Mr. Abheraj Baldota was a trader in non-ferrous metals. He was the President of the Bombay Metal Exchange in the year 1960. Their business and operations are currently headed by the son of late Mr. Abheraj H. Baldota, Mr. Narendrakumar A. Baldota and his sons, Mr. Rahulkumar N. Baldota and Mr. Shrenikkumar N. Baldota, all of whom are on their Board.

They have a strong & experienced management, with people who have a vast experience in the mining and natural resource industry. Their management team combines extensive operations, management and technical skills with strong marketing and sales capability.

Their quantity-wise sales during the year ended on March 31, 2005 amounted to 2.23 million metric tons of iron ore products comprising 1.18 million metric tons of high grade fines, 0.32 million metric tons of medium grade fines, 0.45 million metric tons of calibrated lump ore and 0.28 million metric tons of concentrates.

They are also actively expanding their mining business by seeking to acquire additional mining assets and by reorganizing their Group in an effort to capture the value of the Group’s Iron Ore business in their Company.

They also own and operate wind farms with a current installed capacity of 85.6 MW. Their wind farms are situated in Harpanahalli, with a capacity of 46.25 MW, Chitradurga, with a capacity of 38.35 MW, in the State of Karnataka, and Satara, with a capacity of 1 MW, in the State of Maharashtra. They are also in process of investing in additional 16 turbines of 1.25 MW capacity each at Dhule in Maharashtra and 9 turbines of 600KW capacity each in Harihar in Karnataka.

MILESTONES

Key Events and Milestones

2006
Restructuring agreements executed for the slump sale of the gas division and the acquisition of the assets and liabilities of MSPL Exports.

2005 - 2006
Established one 100% EOU.

2003
Diversified into harnessing of wind energy.

1998
Acquired PVS Mines.

1996
500 mt. slurry system commissioned.

1993
Beneficiation plant becomes operational.

1991
Installation of 180 tons/hour Down Hill Conveyer System with crushing and screening facilities.

1983
Gas plant established.

1962
Mining operations started.

Awards and Certifications

2005
Karnataka Renewable Energy Development Limited award for highest investment in the field of renewable energy in the financial year 2004-05.

1999 - 2005
Special export award from CAPEXIL.

2004
Awarded the Indira Priyadarshini Vrikshamitra Award for innovative and outstanding work done in afforestation.

2003
Accredited for OHSAS 18001: 1999 for occupational health and safety.

2001
Tata Energy Research Institute Corporate Environment Award.

2000
ISO 9001:2000 certification received for production and marketing systems.

1999
ISO 14001: 1996 certification received for environment management system.

1997
ISO 9002: 1994 certification received for quality system.

1996 - 2000

State award for “excellence in exports” instituted by the Visvesaraya Industrial Trade Centre – an arm of the Government of Karnataka.

1987

National Safety Award from the President of India.

HIGHLIGHTS 04-05

Subject's performance for the year ended March 31, 2005 is given below:

v The total income of the company increased by Rs. 3117.06 million, or 96.4%, from Rs. 3232.67 million in fiscal 2004 to Rs. 6349.73 in fiscal 2005.

v Iron Ore direct exports increased by Rs. 2728.22 million, or 93.1% from Rs. 2928.95 million in fiscal 2004 to Rs. 5657.17 million fiscal 2005.

v Increased sale of products from their wind division of Rs. 185.63 million, or 859.0% from Rs. 21.61 million in fiscal 2004 to Rs. 207.24 million in fiscal 2005

v Revenue from manufactured product sales increased by Rs. 2875.61 million, or 106.2%, from Rs. 2,707.34 million in fiscal 2004 to Rs. 5582.95 million in fiscal 2005.

v Manufacturing related expenses decreased by Rs. 14.69 million, or 3.3%, from Rs. 446.97 million in fiscal 2004 to Rs. 432.28 million in fiscal 2005.

v Costs for royalties on mining iron ore increased by Rs. 4.97 million, or 13.6%, from Rs. 36.45 million in fiscal 2004 to Rs. 41.42 million in fiscal 2005.

MANAGEMENT TEAM

Board of Directors

Mr. Narendrakumar A. Baldota – Chairman & Managing Director

Mr. Rahulkumar N. Baldota – Whole Time Director

Mr. Shrenikkumar N. Baldota – Whole Time Director

Mr. R. H. Sawkar – Independent Director

Mr. M. Ravindra – Independent Director

Mr. Anirudha R. Barwe - Independent Director

Company Secretary

Mr. A.T. Shymasundar

Key Executives

Mr. Meda. Venkataiah - Executive Director (Mines)

Mr. G. V. S. B. Reddy - General Manager (Corporate)

Mr. Kishore Kumar Kamisetti - General Manager (Marketing & Logistics)

Mr. S. Raghunathan - General Manager (Finance & Accounts)

Mr. K. R. M. Reddy - General Manager (Public Relations)

Mr. K. V. S. Subrahmanyam - General Manager (Power)

Mr. Arun Solomon - General Manager (HR)

Auditors

S. B. Chhajed & Co , Mumbai- Joint Auditors

Deloitte Haskins & Sells , Mumbai - Joint Auditors

Press Release :

India's largest wind energy producer receives 'highest investor award'

Their Corporate Bureau

23 August 2005

New Delhi: MSPL Limited, the flagship company of Baldota Group, and the leading private sector company in iron ore mining and exports and gases establishments in India, has been awarded the "highest investor award in renewable energy for 2004-05.

Rahul N. Baldota, director, Baldota Group, received the award at the Rajiv Gandhi Akshay Urja Diwas function organised by Karnataka Renewable Energy Development Limited (KREDL) on Saturday.

MSPL has a total installed capacity of 140mw of wind energy at an investment of about Rs650 crores. MSPL Limited along with group companies exports about 385 million units of energy to the Karnataka State grid per annum.

MSPL also plans to diversify into hydro power generation projects in the Nethravathy basin and also in Tunga basin in Karnataka and enter into power trading and power distribution

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.39.29
UK Pound	1	Rs.77.02
Euro	1	Rs.58.16

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		77

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/normal.	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