MIRA INFORM REPORT

Report Date :

20.11.2008

IDENTIFICATION DETAILS

Name :	NITREX CHEMICALS INDIA LIMITED

Registered Office :	D – 43, South Extension II, New Delhi 110 049

Country :	India

Financials (as on) :	31.03.2007

Date of Incorporation :	07.02.2001

Com. Reg. No.:	55-109548

CIN No.: [Company Identification No.]	U00000DL2001PLC109548

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer of Industrial Chemicals and Nitrocellulose.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1830000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Mr. Sumeer, Account Manger denied requires financial and business details. Subject is a well established company having satisfactory track. Trade relations are fair. Payments are usually correct and as per commitments. Nothing adverse reported. The company can be considered normal for business dealings at usual trade terms and conditions.

INFORMATION DENIED BY

Name :	Mr. Sumeer
Designation :	Account Manager
Date :	19.11.2008

LOCATIONS

Registered Office :	D – 43, South Extension II, New Delhi 110 049, India
E-Mail :	s-vijay@ici.com , s_soni@nitrexchemicals.com , m_kohli@nitrexchemicals.com
Website :	www.nitrexchemicals.com

Head Office :	Global Business Park, 6th Floor, Tower 'B', Mehrauli Gurgaon Road, Gurgaon 122002, Haryana, India
Tel. No.:	91-124-5065066-68
Fax No.:	91-124-2359843
E-Mail :	s-vijay@ici.com

Factory 1 :	Near Waterworks, Village Agrama, District Valsad 396 001, Gujarat, India
Tel. No.:	91-2632-254001
Fax No.:	91-2632-249564
E-Mail :	s-vijay@ici.com

Regional Offices :	Gurgaon Global Business Park, 6th Floor, Tower 'B', Mehrauli Gurgaon Road, Gurgaon 122002, Haryana, India Contact: S. P. Arora Tel: + 91 124 5065066/68 Fax: + 91 124 2359844 Email: sp_arora@nitrexchemicals.com Mumbai 2/24 Happy House, Vakola, Santa Cruz (East) , Mumbai 400 055, India Contact : S Sebastian Tel: + 91 22 26672261 Fax : + 91 22 26672233 Email: shilpas@bol.net.in Chennai E-15 HIG Flats, Adyar Apartments, Kottur Garden, Chennai 600 085, India Contact: T. A. Pathanjali Tel: + 91 44 24470265 Fax: + 91 44 24910740 E mail: pathanjali@vsnl.com

Consignment Agents :	Delhi KRS Chemical Co. 20-A Ansari Market, Daryaganj, New Delhi 110 002, India Contact: Kamal Kapor Tel: + 91 11 23275491 Fax: + 91 11 23280977 E mail: krskamal@bol.net.in Vishal Distributors (P) Ltd. A-17 Mansarovar Park, Shahdra, Delhi, India Contact : Sudhir Malik Tel: + 91 11 22134893 Fax: + 91 11 22282048 E mail: maliksudhir@hotmail.com Asia Chemicals Limited G.T. Road, Ghaziabad, Uttar Pradesh, India Contact: Srinagesh Tel: + 91 120 24702853 Fax: + 91 120 24700709 E mail: acl@cjnet4u.com Mumbai Pradip Corporation, D/3 Jeevan Jyoti, 18/20 Cawasji Patel Street, Fort, Mumbai 400 001, India Contact: Rajendra Mashru / Kunal Mashru Tel: + 91 22 28348518 /56311100 Fax: + 91 22 28228079 / 22871910 E mail: sales@pradipcorporation.com Chennai R N Iyer & Son 33 Brahmin Street, Old Pallavaram, Chennai 600 117, India Contact: Mr K Sundar Tel: + 91 44 22474910 Email: trendpoly@vsnl.com Kolkata Mohta Brothers (P) Ltd. Mohta House, 29 Strand Road, Kolkata 700 001, India Contact: M K Mohta Tel: + 91 33 22431251 Fax: + 91 33 22433252 E mail: aditi@cal.vsnl.net.in

DIRECTORS

Name :	Mr. M R Rajaram
Designation :	Director
Address :	C-12/9, DLF City, Phase I, Gurgaon 122 002, Haryana, India
Date of Birth/Age :	15.03.1946
Date of Appointment :	07.02.2001

Name :	Mr. Pankaj H Shah
Designation :	Chairman
Address :	17/338, Satyagrah Chayani, Satellite Road, Ahmedabad 380 015, Gujarat, India
Date of Birth/Age :	02.05.1947
Date of Appointment :	29.10.2004

Name :	Mr. Ganapati Rathinam
Designation :	Director
Address :	U26A/ 6, Ground Floor, DLF City, Phase III, Gurgaon 122 002, Haryana, India
Date of Birth/Age :	16.09.1967
Date of Appointment :	12.01.2004

Name :	Mr. Steven Enderly
Designation :	Director
Address :	E-2, Pushpanjali Farms, Village Bijwasan, New Delhi 110 061, India
Date of Birth/Age :	22.07.1962
Date of Appointment :	12.01.2004

Name :	Mr. Pallipuram Mathai Thampi
Designation :	Director
Address :	2B, Marthas Place, 5^th Cross, 58 Lavelle Road, Bangalore 560 001, Karnataka, India
Date of Birth/Age :	29.08.1934
Date of Appointment :	29.10.2004

Name :	Mr. Atanu Sarkar
Designation :	Director
Address :	G-201, Yamuna Apartments, Alaknanda, New Delhi 110 019, India
Date of Birth/Age :	01.09.1960
Date of Appointment :	07.02.2001
Date of Ceasing :	11.03.2004

Name :	Mr. Guha Rajasekaran
Designation :	Director
Address :	E-075, Richmond Park, DLF City, Phase 4, Gurgaon 122 002, Haryana, India
Date of Birth/Age :	17.04.1959
Date of Appointment :	07.02.2001
Date of Ceasing :	11.03.2004

Name :	Mr. Vani Chandrashekhar
Designation :	Director
Address :	G-201, Yamuna Apartments, Alaknanda, New Delhi 110 019, India
Date of Birth/Age :	01.09.1960
Date of Appointment :	07.02.2001
Date of Ceasing :	26.06.2002

Name :	Mr. Dinesh Kumar Tiwari
Designation :	Director
Address :	1207, Millenium Apartments, Plot – 2, Sector 9, Dwarka, New Delhi 110 045, India
Date of Birth/Age :	14.01.1970
Date of Appointment :	12.01.2001
Date of Ceasing :	13.05.2005

Name :	Mr. Pankaj Chadha
Designation :	Director
Address :	B-19/1, DLF City, Phase I, Gurgaon 122 002, Haryana, India
Date of Birth/Age :	17.10.1960
Date of Appointment :	09.03.2004
Date of Ceasing :	16.10.2007

Name :	Mr. Bipin Charanjit Lal
Designation :	Managing Director
Address :	S-258, Greater Kailash Part II, New Delhi 110 048, India
Date of Birth/Age :	01.02.1955
Date of Appointment :	16.10.2007

Name :	Mr. Sharat Tripathi
Designation :	Wholetime Director
Address :	1 Tapovan Society, Vassler, Valsad 396 001, Gujarat, India
Date of Birth/Age :	27.10.1958
Date of Appointment :	24.04.2007
Date of Ceasing :	01.10.2007

KEY EXECUTIVES

Name :	Ms. Anumeha Soni
Designation :	Company Secretary
Address :	AD-66A, Power Apartments, Outer Ring Road, Pitampura, New Delhi 110 034, India
Date of Birth/Age :	22.01.1978
Date of Appointment :	15.07.2004

Name :	Ms. Mridula Kohli
Designation :	Company Secretary
Address :	L-4/3, DLF Qutab Enclave, Phase II, Gurgaon 122 002, Haryana, India
Date of Birth/Age :	09.02.1977
Date of Appointment :	13.08.2007

Name :	Mr. Mahendra Gumanmal Lodha
Designation :	Additional Director
Address :	85, Sunrise Park, Opp Drive-in-Road, Thaltej, Ahmedabad 380 054, Gujarat, India
Date of Birth/Age :	04.08.1956
Date of Appointment :	11.08.2008

Name :	Mr. Gautam Mithalal Jain
Designation :	Additional Director
Address :	7 Nandi Hill, Near Bhav Birjar Temple, Opp ISRO, Satellite, Ahmedabad 380 015, Gujarat, India
Date of Birth/Age :	18.06.1952
Date of Appointment :	11.08.2008

Name :	Mr. Sumeer
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.11.2007

Names of Shareholders		No. of Equity Shares
Mr. Ganapati Rathinam		2
Mrs. Aradhana Chatterjee		1
Mr. Sanjay Agarwal		1
Nitrex Mauritius Limited		2350000
ICI India Limited		750000
Mr. Pankaj Chadha		190000
Mr. Samir Ashta		120000
Mr. Bipin Lal		120000
Mr. Anand Thiyagarajan		32000
Mr. Sharat Tripathi		10000
Mr. Amul Niphadkar		4000
Nitrex Chemicals Employee Stock Option Trust		424000
Total		4000004

		No. of Preference Shares
Nitrex Mauritius Limited		1200000
Total		1200000

AS ON 30.11.2007

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]		83.50
Bodies corporate		7.50
Directors or relatives of directors		1.20
Other top fifty shareholders		7.80
Total		100.000

BUSINESS DETAILS

Line of Business :	Manufacturer of Industrial Chemicals and Nitrocellulose.

Products with ITC Code :	Nitrocellulose – 391220 Industrial Chemical

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production

Nitrocellulose	Dry Tonnes	6000.00	5352.55

GENERAL INFORMATION

No. of Employees :

Bankers :

Industrial Development Bank of India, IDBI Tower, W T C Complex, Cuffe Parade, Mumbai 400 005, Maharashtra, India

Standard Chartered Bank, Parliament Street, New Delhi, India

Facilities :

Secured Loans

(Rs. in millions)

	31.03.2007	31.03.2006
Short Term Loans from a Bank -- Working Capital Loan [secured by pari passu first charge in stocks and book debts]	155.379	20.000
Long Terms Loans – From Banks -- Rupee Term Loans (Amount payable within one year – Rs. 270.000, previous year Rs. 85.000) [Rs. 270.000 – secured by first charge over fixed assets] [Rs. 170.000 – secured by a corporate guarantee by CDC Group, PLC] [Rs. 135.000 – secured by pari passu first charge on assets of manufacturing facility at Jhagadia] -- External Commercial Borrowing (Amount payable within one year – Nil, previous year – Nil) [USD 3100.000 – secured by pari passu first charge on assets of manufacturing facility at Jhagadia]	575.000	440.000
TOTAL	864.857	460.000

Unsecured Loans

(Rs. in millions)

	31.03.2007	31.03.2006
Deferred payment liability – payable to ICI India Limited on account of balance purchase consideration (amount payable within one year Rs. 42.500 , previous year Rs. 42.500 )	42.500	42.500
Finance Lease Obligation (Repayable within onw year – Rs. 1.628, previous year - Nil)	13.223	0.000
Bank overdraft	13.544	0.000
TOTAL	69.268	42.500


Banking Relations :	Satisfactory

Auditors :
Name :	Price Waterhouse Chartered Accountants
Address 1 :	P-1, Aditya Nagar, Saidulajab, Opp D Block, Saket, Mehrauli Badarpur Road, New Delhi 110 030, India
Address 2 :	Price Waterhouse, Building 8, 7^th & 8^th Floor, Tower B, DLF Cyber City, Gurgaon 122002, Haryana, India

Holding :	Nitrex Mauritius Limited

Associates/Subsidiaries :	Excelex Biopolymers Private Limited CIN No.: U24119DL2006PTC153535

CAPITAL STRUCTURE

AS ON 31.03.2007

Authorised Capital :

No. of Shares	Type	Value	Amount

11000000	Equity Shares	Rs. 10/- Each	Rs. 110.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

10000004	Equity Shares	Rs. 10/- Each	Rs. 100.000 millions
	[Of the above 8350000 Equity Shares of Rs. 10/- each fully called and paid up are held by Nitrex Mauritius Limited, the holding company (previous year 8350000 Equity Shares)]

AS ON 30.11.2007

Authorised Capital :

No. of Shares	Type	Value	Amount

10100000	Equity Shares	Rs. 10/- Each	Rs. 101.000 millions
1250000	Preference Shares	Rs. 10/- Each	Rs. 12.500 millions
	Total		Rs. 113.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

10000004	Equity Shares	Rs. 10/- Each	Rs. 100.000 millions
1200000	Preference Shares	Rs. 10/- Each	Rs. 12.000 millions
	Total		Rs. 112.000 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		100.000	100.000	97.250
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		264.195	216.677	64.293
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		364.195	316.677	161.543
LOAN FUNDS
1] Secured Loans		864.857	460.000	452.367
2] Unsecured Loans		69.268	42.500	103.358
TOTAL BORROWING		934.125	502.500	555.725
DEFERRED TAX LIABILITIES		80.253	63.159	0.000

TOTAL		1378.573	882.336	717.268

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		900.600	548.939	588.997
Capital work-in-progress		115.297	92.452	23.070

INVESTMENT		10.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	67.533	91.695	77.774
	Sundry Debtors	126.190	118.102	143.572
	Cash & Bank Balances	25.891	134.822	0.677
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	289.145	51.800	36.339
Total Current Assets		508.759	396.419	258.362
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	144.542	146.464	146.039
	Provisions	11.541	9.009	7.123
Total Current Liabilities		156.083	155.473	153.162
Net Current Assets		352.676	240.946	105.200

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		1378.573	882.336	717.268

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		873.164	1028.320	978.636
Other Income		33.755	178.204	13.705
Total Income		906.919	1206.524	992.341

Profit/(Loss) Before Tax		70.159	260.959	99.195
Provision for Taxation		28.042	108.575	25.803
Profit/(Loss) After Tax		50.117	152.384	73.392

Earnings in Foreign Currency :
	Export Earnings	NA	272.374	290.835
	Commission Earnings	NA	0.000	19.113
	Other Earnings	NA	0.000	0.000
Total Earnings		NA	272.374	309.948

Imports :
	Raw Materials	NA	146.924	187.051
	Stores & Spares	NA	0.000	0.000
	Capital Goods	NA	0.000	0.000
	Others	NA	0.000	0.000
Total Imports		NA	146.924	187.051

Expenditures :
	Raw Material Consumed	405.176	381.248	351.834
	Purchases made for re-sale	0.000	0.000	0.000
	Consumption of stores and spares parts	10.001	6.804	6.331
	Increase/(Decrease) in Finished Goods	10.055	59.386	43.443
	Salaries, Wages, Bonus, etc.	60.988	64.779	64.164
	Managerial Remuneration	7.665	4.758	4.785
	Payment to Auditors	1.460	1.293	1.229
	Interest	39.326	35.569	31.838
	Insurance Expenses	8.203	5.382	6.190
	Power & Fuel	48.694	45.822	48.764
	Depreciation & Amortization	81.858	78.352	76.556
	Other Expenditure	163.333	262.172	258.011
Total Expenditure		836.759	945.565	893.145

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	5.52	12.63	7.40

Net Profit Margin (PBT/Sales)	(%)	7.73	21.68	9.99

Return on Total Assets (PBT/Total Assets}	(%)	4.57	25.14	11.39

Return on Investment (ROI) (PBT/Networth)		0.19	0.82	0.61

Debt Equity Ratio (Total Liability/Networth)		4.21	3.27	5.39

Current Ratio (Current Asset/Current Liability)		3.26	2.55	1.68

LOCAL AGENCY FURTHER INFORMATION

FORM 8

Name of the company

NITREX CHEMICALS INDIA LIMITED

Presented By

Standard Chartered Bank, New Delhi and Nitrex Chemicals India Limited

1) Date and description of instrument creating the change

Agreement of hypothecation of stock and book debts dt. 21.047.2005 Regd. On 25.04.2005

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

Rs. 100.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

All stocks in trade both present and future consisting of raw material, finished goods, goods in process of manufacturing and other merchandisc whatsoever and all present and future book debts, outstanding monies, receivables, claims and bills etc. shall be hypothecated to the bank by way of first charge on a pari passu basis.

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

Rate of interest as may be determined by the bank from time to time.

The charge for the following limits.

Limit 1	Letter of Credit	Rs. 100.000 millions
Inner Limit 1A	Overdraft / Short Term Loan	Rs. 60.000 millions
Inner Limit 1B	Postshipment in INR/ FCY	Rs. 60.000 millions
Inner Limit 1C	Preshipment in INR / FCY	Rs. 60.000 millions
Inner Limit 1D	Sales Bill Discounting	Rs. 60.000 millions

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

Standard Chartered Bank

Parliament Street, New Delhi

6) Date and brief description of instrument modifying the charge

Supplementary Hypothecation agreement of stock and book debts dated 01.09.2005

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.

Change in terms and conditions in proviso to clause 12 and clause 13 (m) of the principal hypothecation agreement of stock and book debts dated 21.04.2005 registered on 25.04.2005. Other conditions and facilities remain same.

This form is for	Modification of charge
Charge identification number of the modified	10091112
Corporate identity number of the company	U00000DL2001PLC109548
Name of the company	NITREX CHEMICALS INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	D – 43, South Extension II, New Delhi 110 049, India
Type of charge	Movable Property
Number of charge holder	1
Particular of charge holder	Industrial Development Bank of India IDBI Tower, W T C Complex, Cuffe Parade, Mumbai 400 005, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Amendatory agreement dated 20^th September, 2008.
Date of instrument Creating the charge	20.09.2008
Amount secured by the charge	Rs. 270.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest : FC: 350 bps over 6 months LIBOR for Japanese Yen INR: BPLR – 75 bps The interest is payable monthly Terms of Repayment : The converted of foreign currency loan of Rs. 150.000 millions shall stand converted into rupee term loan on January 1, 2009 and entire rupee term loan of Rs. 270.000 millions repayable in 12 equal quarterly commencing from October 1, 2009. Margin : minimum security margin of 25% to be maintained over tenure of assistance Extent and Operation of the charge : exclusive charge by way of hypothecation of entire movables (save and except book debts) including movable machinery, machinery spares, tools and accessories, present and future for the use at Valsad Unit only, located anywhere in India.
Short particulars of the property charged	Entire movables (save and except book debts) including movable machinery, machinery spares, tools and accessories, present and future for the use at Valsad Unit only, located anywhere in India.

Fixed Assets

Tangible Assets
Land – Freehold
Land – Leasehold
Buildings
Plant and Machinery
Furniture and Fixtures
D P Machine
Rolling Stock
Goodwill
Technical Know-How

Contingent Liabilities:

a) Claims not acknowledge as debts for Income Tax – Rs. 22.814 millions, previous year – Nil

b) Corporate Guarantee of Rs. 220.000 millions, Previous Year – Nil was given to Bank for term loan facilities sanctioned to the wholly owned subsidiary against which total amount utilized is Rs. 110.000 millions , Previous year – Nil.

WEBSITE DETAILS ATTACHED:

Profile

Subject was formed on 16th of march 2004 by taking over the Nitrocellulose (NC) & Trading Business of ICI India Limited on an ongoing basis. The Company has a manufacturing facility to manufacture Nitrocellulose at Valsad in the State of Gujarat. It is located approximately at a distance of 180 kms. to the north of the city of Mumbai.

The company apart from manufacturer of Nitrocellulose represents several globally renowned suppliers for promotion and marketing their products in India.

Press Releases

July 31st 2003

BERGERAC NC Steps Up Business Development in Asia.

10 March 2003

Better blotting with nitrocellulose membranes.

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.50.52
UK Pound	1	Rs.75.54
Euro	1	Rs.63.12

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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

MIRA INFORM REPORT

67.533

126.190

25.891

0.000

289.145

508.759

144.542

11.541

156.083

352.676

5.52

7.73

4.57

0.19

4.21

3.26

Unit