MIRA INFORM REPORT

Report Date :

24.01.2008

IDENTIFICATION DETAILS

Name :	BPL MOBILE COMMUNICATIONS LIMITED
Registered Office :	XL-5115 Ashish Building, Shanmugham Road, Cochin – 682031, Kerala
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	30.12.1975
Com. Reg. No.:	09-2757
CIN No.: [Company Identification No.]	U29299KL1975PLC002757
TAN No.: [Tax Deduction & Collection Account No.]	MUMB06449C
Legal Form :	A Closely Held Public Limited liability company.
Line of Business :	The Company is engaged in the business of providing Cellular Mobile Telephone service in Mumbai, Navi Mumbai and Kalyan Telecom Districts.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 3100000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a well established company in Indian Mobile Industry, but face fierce and cut-throat competition from fellow players, such as Vodafone, Airtel, Tata, Reliance, etc. Company’s profitability is under severer pressure. It has huge accumulated losses. Payments are reported as slow and delayed. The company can be considered for small to mediocre business dealings with slight caution, initially.

LOCATIONS

Registered Office :	XL-5115 Ashish Building, Shanmugham Road, Cochin – 682031, Kerala, India
Tel. No.:	91-491-534968
Fax No.:	91-484-382282
E-Mail :	durgesh.dingankar@bplmail.com
Website :	http://www.bplmobile.com
Corporate Office :	127, Manmala Tank Road, Talkai Wadi, Mahim, Mumbai – 400016, Maharashtra, India
Gallery :	Located at : Andheri Borivali Chembur Churchgate Dombivali Fort Ghatkopar IRLA Kandivali Lokhandwala Mahim Malad Mira-Bhayander Mohammed Ali Road Mulund Opera House Panvel Santacruz Thane Vashi Vile Parle

DIRECTORS

Name :	Mr. Jayabharath Reddy K
Designation :	Director
Address :	Prashanti 6-3-1186/6, Begumpet Road, Hyderabad – 500016, Andhra Pradesh, India
Date of Birth/Age :	12.04.1937
Date of Appointment :	23.12.2005
Name :	Mr. Vikash Saraf
Designation :	Director
Address :	2 B, Saker Apartments, 71 Pochkhanawals Road, Worli, Mumbai – 400025, Maharashtra, India
Date of Birth/Age :	18.12.1968
Date of Appointment :	03.12.2004
Name :	Mr. Prem Rajani
Designation :	Director
Address :	11, Palekar Chambers, 4^th Floor Dhobi Taleo, Mumbai, Maharashtra
Date of Birth/Age :	30.01.1967
Date of Appointment :	03.12.2004
Name :	Mr. Mukhopadyay Kumar Tapan
Designation :	Director
Address :	Flat No. 10 C, Rajhans Hasting Park Road, Alipore Kolkata – 700017, West Bengal, India
Date of Birth/Age :	03.09.1949
Date of Appointment :	18.12.2002
Name :	Ms. Ruia Anushuman
Designation :	Director
Address :	67 Walkeswar Road, Opposite Birla School Walkeshwar, Mumbai – 4000006, Maharashtra, India
Date of Birth/Age :	11.03.1971
Date of Appointment :	21.07.2005
Name :	Ms. Bindu Saxena
Designation :	Director
Address :	M 233, Greater Kailash – II, New Delhi
Date of Birth/Age :	20.05.1958
Date of Appointment :	21.07.2005
Name :	Mr. Vijay Chandok
Designation :	Director
Address :	501, ICICI Bank Apartments, Near Kirti College, Prabhadevi Dadar, Mumbai – 400028, Maharashtra, India
Date of Birth/Age :	23.02.1968
Date of Appointment :	06.06.2003
Name :	Mr. Satish Sitaram Rao
Designation :	Director
Address :	Kalpataru Gardens Tower, 2 B Flat No 41, Swayambhu Ganesh Mandir Marg, Off Ashok, Chakravorty Road, Kandivali - 400101, Maharashtra, India
Date of Birth/Age :	24.10.1957
Date of Appointment :	20.06.1997
Name :	Mr. S Subramaniam
Designation :	Additional Director
Address :	B-21, Hindu Colony, Nanganallur, Chennai – 600061, Tamilnadu, India s.subramaniam@bplmail.com
Date of Birth/Age :	28.11.1960
Date of Appointment :	02.04.2007
Name :	Mrs. Sangeeta Lakhi
Designation :	Director
Address :	7/709 Supriya Apartments, 4^th Road, Parsee Colony, Mumbai – 400014, Maharashtra, India sangeeta@rajaniassociates.net
Date of Birth/Age :	18.01.1969
Date of Appointment :	15.12.2006
Name :	Mr. Tapan Kumar Mukhopadhyay
Designation :	Nominee Director
Address :	224-B, Twin Towers, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025, Maharashtra, India Tk.mukhopadhyay@idbi.co.in
Date of Birth/Age :	03.09.1949
Date of Appointment :	17.12.2002

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Kerala State Industrial Development Corporation	2000
S Sankaranarayanan	01
Sathe Kamlakar Girish	01
Vyas Babulal Narottam	01
Nucent Technologies Private Limited	01
BPL Communications Limited	63740931
Asia Pacific Systems Limited	13790882
Essar Teleholdings Limited	8605360
ICICI Bank Limited	1500
Industrial Development Bank of India	25000000
Infrastructure Development Finance Corporation Limited	50
Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	16.00
Bodies corporate	84.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The Company is engaged in the business of providing Cellular Mobile Telephone service in Mumbai, Navi Mumbai and Kalyan Telecom Districts.

GENERAL INFORMATION

Suppliers :	Vishwakarma Furniture Works Indo Flexi Pack Nikeda Art Printers Private Limited
Bankers :	Axis Bank Limited Fort Branch, Sir, P. M. Road, Fort, Mumbai – 400001 Deutsche Bank Bank of America Corporation Bank CITI Bank Indusind Bank Vysya Bank

Banking Relations :	Satisfactory
Financial Institution :	Srei Infrastructure Finance Limited, Vishwa Karma, 86C, Topsia Road, P. S. Beniapukur, Kolkata – 700046, West Bengal, India Infrastructure Development Finance Company Limited, ITC Centre, 3^rd Floor, 760, Anna Salai, Chennai – 600002, Tamilnadu, India
Auditors :
Name :	A. F. Ferguson and Company Chartered Accountants
Address :	Maker Towers “E”, Cuffe Parade, Mumbai – 400005, Maharashtra, India
Associates/Subsidiaries :	BPL Communications Limited CIN No.: U85110KA1993PLC015093 Birla AT & T Communication Limited Tata Cellular Limited BPL Limited
Holding Company :	BPL Mobile Cellular Limited [BCL] BPL Broadband Networks Limited [BBNL] BPL Net.Com Limited BPL AFX Information Service s Private Limited [BPL AFX] Oye India Internetworks Limited Vechtra Stocks and Securities Private Limited Maharashtra Broadband Networks Limited [MBNL] India Netexchange Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
136000000	Equity Shares	Rs. 10/- each	Rs. 1360.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
86139177	Equity Shares	Rs. 10/- each	Rs. 861.392 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		01.01.2006 to 31.03.2007	01.04.2005 to 31.12.2005	01.04.2004 to 31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		861.392	861.392	861.392
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3433.099	2876.369	2876.369
4] (Accumulated Losses)		[3522.305]	[3522.305]	[3276.634]
NETWORTH		772.186	215.456	461.127
LOAN FUNDS
1] Secured Loans		6426.482	6931.036	6733.774
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		6426.482	6931.036	6733.774
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		7198.668	7146.492	7194.901
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5693.051	6012.727	6150.439
Capital work-in-progress		561.318	407.574	282.526
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.164	3.777	9.650
	Sundry Debtors	614.071	637.153	675.319
	Cash & Bank Balances	393.377	423.789	217.650
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1625.431	2269.174	1750.591
Total Current Assets		2637.043	3333.893	2653.210
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	1690.476	2664.173	1904.124
	Provisions	11.660	14.022	10.996
Total Current Liabilities		1702.136	2678.195	1915.120
Net Current Assets		934.907	655.698	738.090
MISCELLANEOUS EXPENSES		0.000	5.962	23.846
Advance for Capital Expenditure		9.392	64.531	0.000
TOTAL		7198.668	7146.492	7194.901

PROFIT & LOSS ACCOUNT

PARTICULARS		01.01.2006 to 31.03.2007	01.04.2005 to 31.12.2005	01.04.2004 to 31.03.2005
Sales Turnover		7290.917	4393.562	5354.255
Other Income		63.044	19.677	28.537
Total Income		7353.961	4413.239	5382.792
Profit/(Loss) Before Tax		561.643	4652.971	525.928
Provision for Taxation		4.914	[239.731]	1.650
Profit/(Loss) After Tax		556.729	4892.702	524.278
Earnings in Foreign Currency :
	Roaming Income	769.579	427.251	408.360
	Other Earnings			35.659
Total Earnings		769.579	427.251	444.019
Imports :
Total Imports		NA	NA	314.638
Expenditures :
	SIM Cards and Accessories	0.000	0.000	49.236
	Operating Expenses	0.000	0.000	2490.980
	Marketing Expenses	0.000	0.000	377.717
	Purchases made for re-sale	37.115	30.003	0.000
	Salaries, Wages, Bonus, etc.	238.026	189.311	0.000
	Interest	766.459	471.738	758.295
	Insurance Expenses	5.950	4.216	0.000
	Power & Fuel	163.461	74.536	0.000
	Depreciation & Amortization	1354.749	926.973	1151.171
	Other Expenditure	4226.557	2956.194	29.464
Total Expenditure		6792.317	4652.971	4856.863

KEY RATIOS

PARTICULARS		01.01.2006 to 31.03.2007	01.04.2005 to 31.12.2005	01.04.2004 to 31.03.2005
PAT / Total Income	(%)	7.57	110.86	9.74
Net Profit Margin (PBT/Sales)	(%)	7.70	105.90	9.82
Return on Total Assets (PBT/Total Assets}	(%)	6.74	49.78	5.97
Return on Investment (ROI) (PBT/Networth)		0.73	21.60	1.14
Debt Equity Ratio (Total Liability/Networth)		10.53	44.60	18.76
Current Ratio (Current Asset/Current Liability)		1.55	1.24	1.39

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Subject was incorporated on 30^th December, 1975 under the name of “BPL Systems and Projects Limited”.

Its name was changed to “Power Systems and Project Private Limited” on 9^th June 1982.

Again its name was changed to present from 12^th March 1996.

FIXED ASSETS

• Land
• Building
• Network Equipment
• Furniture and Fixture
• Vehicles

BANKERS CHARGES REPORT AS PER REGISTRY

Name of the company

BPL MOBILE COMMUNICATIONS LIMITED

Presented By

Axis Bank Limited, p. m. Road, Fort, Mumbai – 400001

1) Date and description of instrument creating the change

Composite Hypothecation deed dated 04.08.2005

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

Rs. 312.000 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

Hypothecation by way of Pari Pass second charge on entire present and future current assets viz;

Plant and Machinery comprising of tangible movable machineries, fixtures, fittings, other accessories, vehicles together with spares, tools and accessories and all other articles lying on the premises at Mumbai or elsewhere or in the godowns, or held by any party anywhere to order and disposition of the Company or in the course of transit.

Movable goods and assets, stocks or raw materials, work in progress semi finished goods and finished goods, packing materials, consumable stores and spares etc. whatsoever situate and or in transit.

Book debts, outstanding monies, receivables, claims, bills, contracts, securities, investments, rights and assets due and owing to the company in the course of its business.

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

The aforesaid assets are given to secure the following limits granted by the Bank with Commission as under :

Nature of facility	Limit Rs In millions	Commission
Bank Guarantee Limit on behalf of BPL Mobile favour DOT	256.000	3.00 % p.a. plus Service Tax
Bank Guarantee Limit on behalf of BPL Mobile Favoring BSNL	56.000	3.50 % plus Service Tax

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

Axis Bank Limited

Fort Branch, Sir, P. M. Road, Fort, Mumbai – 400001

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

This form is for	Creation of charge
Corporate identity number of the company	U29299KL1975PLC002757
Name of the company	BPL MOBILE COMMUNICATIONS LIMITED
Address of the registered office or of the principal place of business in India of the company	XL-5115 Ashish Building, Shanmugham Road, Kochin – 682031, Kerala, India
Type of charge	Book Debts Movable Property
Particular of charge holder	Infrastructure Development Finance Company Limited ITC Centre, 3^rd Floor, 760, Anna Salai, Chennai – 600002, Tamilnadu, India santosh@idfc.com
Nature of description of the instrument creating or modifying the charge	Unattested Deed of Hypothecation dated June 12, 2007 executed in favour of IDFC
Date of instrument Creating the charge	12.06.2007
Amount secured by the charge	Rs. 400.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest : Interest on the principal amount of the Rupee Loan outstanding from time to time, on the 15^th day of each month in arrears. The applicable interest ate for each disbursed tranche shall be at a rate equal to 2.75 % p.a. over and above year IDFC Benchmark Rate, Prevailing on the date of such disbursement. Terms of repayment : The Company shall repay the Rupee Loan in 12 equal monthly installments commencing from the expiry of 24 months from the date of first disbursement of the Rupee Loan. Extent and operation of the charge : - A second charge by way of hypothecation of all the company’s moveable assets, including moveable machinery, spares, tools, book debts, operating cash flows, receivables, commissions, revenue whatsoever nature and wherever arising present and future relating to the project - An Exclusive charge on all the assets to be procured from the proceeds of the loan - First charge on all insurance contracts / insurance proceeds relating to the expansion project.
Short particulars of the property charged	A pari-passu second charge by way of hypothecation of all the company’s moveable assets, including moveable machinery, spares, tools, book debts, operating cash flows, receivables, commissions, revenue whatsoever nature and wherever arising present and future.

Contingent Liabilities not provided for :

Rs in Millions

Counter guarantees given to bankers against guarantees issued by them	265.224
Demand on account of service tax on value of SIM Cards sold, made by the Commissioner of Central Excise, Mumbai on which sales tax has already been paid	15.369
Demand on account of penalty in respect of Central Sales Tax, made by the Asst. Commissioner of Sales Tax, Mumbai	---
Demand on account of Excise Duty in respect of the erection of base transceiver station sites, made by the Commissioner of Central Excise, Mumbai	152.740
Notes : The Company is in further appeal in these matters.

The company provides following services :-

· Prepaid Connection

· Post Paid Connection

· Recharge Coupons

· Bill Payments

· Value Added Services (VAS)

· Enquiries

· Selling Handsets

· SIM Replacement

AS PER WEBSITE

Profile

Having started its services in 1995, BPL Mobile currently operates in Mumbai city with more than 1 million happy and satisfied subscribers.

In the latest TRAI (Telecom Regulatory Authority of India) benchmark study on quality of service of mobile phone service providers across all GSM & CDMA operators places BPL Mobile amongst the top in Mumbai in December, 2006. BPL Mobile topped in satisfaction scores on critical parameters of overall customer satisfaction with a score of 99%, billing performance scoring 99% on post paid and 98.5% of connections with good voice quality.

This achievement is a result of BPL Mobile's philosophy to give the consumer a truly world class experience through technology, services and a network that gives Superior Coverage and Amazing Clarity. BPL Mobile has revolutionized the mobile communications industry in India with its state of the art technology, which includes the unique network design, the Qualnet, Camel Phase 2 Intelligent Network (IN) platform and GPRS providing cutting edge services like Multimedia Messaging (MMS), mobile browsing, Java based mobile games amongst others.

Press Releases

BPL Mobile slashes pre-paid rates; Now call and SMS anywhere in India at Re. 1/-

Focus shifts to the large base of pre-paid subscribers with reduction in call rates by nearly 50%

BPL Mobile first to offer All Calls and SMS, both local and STD @ Re. 1/-for prepaid users

Mumbai, January 10^th, 2008: Having significantly enhanced network bandwidth, BPL Mobile - Mumbai’s leading cellular service provider now equipped to play the volume game, announced a further slash in pre-paid call rates. Subscribers will now enjoy all local and STD calls any where in India from BPL Mobile to any mobile service and landline for a flat Re. 1/- per minute. This reduction sees call rates drop by nearly 50%. Short Message Service or SMS across India will also be at Re. 1/-. This makes BPL Mobile the first cellular service provider to offer all Calls and SMS, both local and STD @ Re. 1/-for prepaid users

Subscribers to this special offering will be able to avail the same for a daily rental of Re. 1/-. (Rs 30 would be deducted as advance rental. After 30 days, Rs 1/day rental would be applicable). Subscribers will need to SMS India to 50505 (toll-free), which would give them more details on One India Prepaid. Recharge vouchers are also available.

Announcing this Mr. S. Subramaniam, CEO & Director, BPL Mobile said, “The pre-paid market, which is a highly price-sensitive market, constitutes more then 70% of our subscriber base. In a way this significant reduction in call rates is our new year’s gift to our loyal customers. We continuously look at adding value to our subscribers, this new offering is another step in that direction”.

BPL Mobile has strengthened its network capacity taking the no. of cell sites to nearly 1,100. BPL Mobile a few months back revolutionized the pre-paid market by offering the lowest lifetime pre-paid at Rs. 444/-. This was followed by ‘Mini Validity’, a path breaking product that provided the subscriber unmatched value, flexibility and convenience of staying mobile at the lowest possible cost.

BPL Mobile doubles its network strength; announces ‘Network Trial’ Offer

To offer new pre-paid subscribers ‘free talktime’ to experience superior network quality!

Mumbai, October 28th 2007:In an initiative that would take the mobile service offering in the country to a new level, BPL Mobile, Mumbai’s leading mobile service provider, today announced ‘Network Trial’ – a first ever campaign inviting new subscribers to try and experience BPL Mobile’s top quality network strength. This attractive offer will function as a tool to gauge the company’s confidence in their network capacity, which has doubled in the last one year.

BPL Mobile is launching ‘Network Trial Packs’ for this activity wherein, any new user who wants to take the ‘Network Trial’ can buy this pre-paid pack at Rs.150 and get 5 minutes of free local talktime daily for 120 days to experience the best quality network and try finding fault in the same. The five minutes if unused, lapses at the end of every day and next day starts afresh!

This makes BPL Mobile the only mobile service provider to offer Rs.1200 worth talktime to every person who is accepting the ‘Network Trial’ in a reiteration of their network strength. The company recently rejuvenated and refreshed the BPL Mobile brand following substantial investment of Rs.2000 millions in major network expansion and technology up-gradation. BPL Mobile has over 1000 cell sites currently and aims to add another 300 cell sites by the fiscal year end.

Commenting on this unique ‘Network Trial’ campaign, Mr. S. Subramaniam, CEO - BPL Mobile said, “We are confident that we provide seamless coverage and to pass on this assurance to our subscribers, we have announced the ‘Network Trial’ offer. We are inviting new subscribers to try us out and experience the best quality network themselves. Today, the biggest challenge for any mobile service provider is managing network quality. Offering an open challenge to test our network quality in a metro like Mumbai, where the tele density is about 60-65%, is a proof enough to confirm our conviction in our commitment towards providing our subscribers quality network and best services.”

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.39.56
UK Pound	1	Rs.77.45
Euro	1	Rs.57.89

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		40

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 prince pal 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