MIRA INFORM REPORT

Report Date :

03.10.2008

IDENTIFICATION DETAILS

Name :	UNION BATTERIES PRIVATE LIMITED
Registered Office :	Universal House, 426/1, Gokhale Road, Shivaji Nagar, Pune – 411 016, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	06.11.1996
Com. Reg. No.:	25 – 13587
CIN No.: [Company Identification No.]	U31402PN1996PTC013587
TAN No.: [Tax Deduction & Collection Account No.]	PNEU00440G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Lead Traction Industrial Battery.

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 144000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established company having satisfactory track. Directors are reported as experienced, respectable and having satisfactory means of their own. Their trade relations are fair. Financial position is satisfactory. Payments are correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Vishwas Butkar
Designation :	Accounts Manager
Contact No.:	91-9850198999
Date :	02.10.2008

LOCATIONS

Registered Office :	Universal House, 426/1, Gokhale Road, Shivaji Nagar, Pune – 411 016, Maharashtra, India
Tel. No.:	91-20-27110956 / 25657229 / 27470415 / 25655264 / 25650777
Mobile No.:	91-9850198999 (Mr. Vishwas Butkar)
Fax No.:	91-20-25650777
E-Mail :	bui@vsnl.com
Websites:	www.buiindia.com
Area :	10000 Sq.fts (3 Storeyed Building)
Location :	Owned
Factory :	T -126 MIDC, Bhosari, Pune – 400 026, Maharashtra, India
Tel No.:	91-20-5657229
Fax No.:	91-20-5650777
E-Mail :	bui@vsnl.com

DIRECTORS

Name :	Mr. Chandrashekhar Dattatraya Paranjpe
Designation :	Chairman
Address :	9 – Garima Apartment, Kanchangalli, Erandwane, Pune – 411 004, Maharashtra, India
Date of Birth/Age :	25.11.1936
Date of Appointment :	06.11.1996
Name :	Mr. Gagan Madhavrao Pathwardhan
Designation :	Director
Address :	97 – National Cooperative Housing Socity, Baner Road, Aundh, Pune – 411 007, Maharashtra, India
Date of Birth/Age :	15.09.1951
Qualification :	Engineer
Date of Appointment :	06.11.1996
Name :	Mr. Nachiket C Paranjpe
Designation :	Director
Address :	4, Sharad Vaibhav, Off Gokhale Cross Road, Shivajinagar, Pune – 411 016, Maharashtra, India
Date of Birth/Age :	26.09.1973
Qualification :	M.S.
Date of Appointment :	01.04.2002

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Chandrashekhar D Paranjpe	34627
Mr. Gagan M Pathwardhan	49999
Mr. Nachiket C Paranjpe	15374
Mr. A. Chernov and S. Murazov	18500

Names of Shareholders	Percentage of Holding
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	15.61
Directors or Relatives of Directors	84.39
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Lead Traction Industrial Battery.
Products :	Lead Traction Industrial Battery
Exports :
Products :	All Products
Countries :	Italy, United Kingdom, South Africa, Australia, Russian, Federation, Malaysia, Singapore, Thailand, Taiwan
Imports :
Products :	Raw Materials and Machinery
Countries :	Australia, Italy, United Kingdom
Terms :
Selling :	L/C, Cash
Purchasing :	L/C

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Lead Traction Industrial Battery	VAH	388.80	352.39

GENERAL INFORMATION

Customers :

Manufacturer of Power Store, Golf Cart

No. of Employees :

80 (20 in Office and 60 in Factory)

Bankers :

· Export Import Bank of India, Center One Building, 21^st Floor, World Trade Center, Cuffe Parade, Mumbai 400 005, Maharashtra, India

· Bank of India, Pune Corporate Banking Branch, 1162/6, Ground Floor, Near Observatory University Road, Shivajinagar, Pune 411 005, Maharashtra, India

Facilities :

Secured Loan

(Rs. in millions)

	31.03.2006
Bank of India / EXIM Bank n Packing Credit n Foreign Bills Purchased n Term Loan / HP Loan n Buyer’s Credit – BOI	50.026 14.756 6.245 --
Total	71.028

Unsecured Loan

(Rs. in millions)

	31.03.2006
Deposits from Shareholders / Bills Payable	2.326
Total	2.326

Exim Bank

Cash Credit – Rs. 25.000 millions

Banking Relations :

Satisfactory

Auditors :

Name :

M. M. Joshi and Company

Chartered Accountant

Address :

1072 – Nivant, Shukrawarpeth, Subhash Nagar, Lane No. 9, Pune – 411002, Maharashtra, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs. 100/- each	Rs. 50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
237000	Equity Shares	Rs. 100/- each	Rs. 23.700 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		23.700	15.565	5.638
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		12.162	12.179	12.507
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		35.862	27.744	18.145
LOAN FUNDS
1] Secured Loans		84.701	71.028	42.354
2] Unsecured Loans		8.719	2.326	0.350
TOTAL BORROWING		93.420	73.354	42.704
DEFERRED TAX LIABILITIES		1.239	0.921	0.797
TOTAL		130.521	102.019	61.646
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		34.452	15.502	11.472
Capital work-in-progress		0.255	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	79.675	34.206	20.495
	Sundry Debtors	135.841	108.096	61.047
	Cash & Bank Balances	2.238	12.673	2.343
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	5.526	5.477	5.024
Total Current Assets		223.280	160.452	88.909
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	121.820	71.461	37.047
	Provisions	5.646	2.474	1.688
Total Current Liabilities		127.466	73.935	38.735
Net Current Assets		95.814	86.517	50.174
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		130.521	102.019	61.646

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		281.271	160.198	117.104
Other Income		0.000	0.465	0.394
Total Income		281.271	160.663	117.498
Profit/(Loss) Before Tax		11.155	5.615	5.016
Provision for Taxation		0.000	0.581	0.625
Profit/(Loss) After Tax		11.155	5.034	4.391
Earnings in Foreign Currency :
	Export Earnings	NA	142.214	NA
Total Earnings		NA	142.214	NA
Imports :
	Raw Materials	NA	69.971	44.798
Total Imports		NA	69.971	44.798
Expenditures :
	Interest	7.454	3.560	0.000
	Depreciation & Amortization	0.794	0.512	8.282
	Other Expenditure	261.868	150.976	104.200
Total Expenditure		270.116	155.048	112.482

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	3.96	3.13	3.68
Net Profit Margin (PBT/Sales)	(%)	3.96	3.49	4.20
Return on Total Assets (PBT/Total Assets}	(%)	4.32	3.19	4.99
Return on Investment (ROI) (PBT/Networth)		0.31	0.20	0.27
Debt Equity Ratio (Total Liability/Networth)		7.19	6.34	4.48
Current Ratio (Current Asset/Current Liability)		1.75	2.17	2.29

LOCAL AGENCY FURTHER INFORMATION

TRADE References:-

· Godrej and Boyce

· L and T Jondar, Chakan

· Warren and Logistics, Singapore

· Universal Batteries, UK

Fixed Assets

· Factory Land

· Factory Building

· Plant and Machinery

· Electrical Installation

· Factory Equipments

· Computers and Software

· Furniture and Fixtures

· Vehicle – Palio and DIO

· Telephone and Telex

FORM 8:-

This form is for	Modification of charge
Whether charge is modified in favour of asset reconstruction company (ARC) of assignee	No
Charge Identification (ID) number of the charge to be modified	80002030
Corporation identity number (CIN) or foreign company registrations number of the company	U31402PN1996PTC013587
Name of the company	UNION BATTERIES PRIVATE LIMITED
Address	Universal House, 426/1, Gokhale Road, Shivaji Nagar, Pune – 411 016, Maharashtra, India
Type of Charges	Book Debts, Movable Property, Floating charge
Whether consortium finance is involved	No
Whether joint charge involved	No
Number of charge holder(s)	1
Particular of the charge holder	Export Import Bank of India Center One Building, 21^st Floor, World Trade Center, Cuffe Parade, Mumbai 400 005, Maharashtra, India
Nature or description of the instrument creating or modifying the charge	Unattested second supplement deed of hypothecation dated 12.09.2007 of movable assets executed by Union Batteries Limited (“The Company”) in favour of Export Import Bank of India (“EXIM Bank”)
Date of the instrument creating charge	12.09.2007
Whether charge created or modified outside India	No
Amount Secure by the charge	Rs. 80.000 millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest: Pre-Shipment Credit: LIBOR plus margin of 200 bps (all inclusive), p.a. payable with quarterly rests. Pre-Shipment Credit: LIBOR plus margin of 225 bps (all inclusive), p.a. payable with quarterly rests. Terms of repayment: Pre-Shipment Credit shall be repaid within 270 days from the date of each disbursement or out of export proceeds or out of post-shipment credit, whichever is earlier. Post-Shipment Credit will be paid within 270 days from the date of each disbursement or out of export proceeds, whichever is earlier. Total credit period under pre and post shipment credit shall not exceed 360 days. Margin: minimum 10% of the export order value. Extent and operation of the charge: The charge constituting security shall operates as a continuing security by way of a first pari passu charge over the entire fixed assets and current assets of the company, both present and future
Short particulars of the Property charged	The whole of the company’s movable assets and current assets, both present and future, briefly described in schedule II-A to the second supplemental deed of hypothecation attached hereto, including its movable plant and machinery, and current assets, both present and future.
Whether any of the property or interest therein under reference is not registered in the name of the company	No
Date of latest modification prior to the present modification	07.12.2006
Particulars of the present modification	The security created under the deed of hypothecation dated 15.06.2005 in favour of Exim Bank for the loan of USD 1.000 million over the company movable fixed assets and current assets as modified vide mortgage created on 05.04.2006 further modified by supplemental deed of hypothecation dated 18.09.2006 for the enhanced loan of USD 1.800 million and further modified by mortgage created on 07.12.2006, shall stand modified so as be now available for the enhanced loan of USD 2.000 million, together with interest and all other monies.

Name of the company

UNION BATTERIES PRIVATE LIMITED

Presented By

Bank of India, Corporate Banking Branch, Pune, Maharashtra, India

1) Date and description of instrument creating the

change

Dated 16.08.2000

Agreement of hypothecation of plant and machinery, stock and book debts,

2) Amount secured by the charge/amount owing on

the securities of charge

Rs. 6.000 millions Export Packing Credit

Rs. 6.000 millions Foreign Bills Purchased / Negotiated

Rs. 6.000 millions maximum of EPC/ FBP

Rs. 5.000 millions Term Loan

Rs. 5.000 millions Letter of Credit

Rs. 2.500 millions Bank Guarantee

Total Rs. 18.500 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

All tangible movable machinery and plant both present and future and in possession of the company as per the schedule to the agreement, situated at godowns in Pimpri Industrial Area, stock of raw material such as lead, finished goods, batteries, semi-finished goods, spare parts and stores relating to plant and machinery, situated at Bhosari, Pune and all present and future book debts, coutstandings, monies, receivables, claims, bills and payable during the continuance of the security.

4) Gist of the terms and conditions and extent and

operation of the charge.

Facility	Interest	Repayment
Export Packing Credit	Upto 180 days 10%, above 100 days 13% quarterly	--
Foreign Bills Purchased, Negotiated	Upto 45 days 9.5%, 45 to 90 days 10%, above 90 days 12% quarterly	--
Term Loan	3.5% over BOIPTLR quarterly	20 EOI of Rs. 0.250 million w.e.f. 6 months after disbursement.
Letter of Credit	Charges costs as applicable as per Bank norms	--
Bank Guarantee	As per bank norms presently Rs. 100/- + 3% for performing guarantee & 2% for other guarantee	--

5) Name and Address and description of the

person entitled to the charge.

Bank of India

Pune Corporate Banking Branch, 1162/6, Ground Floor, Near Observatory University Road, Shivajinagar, Pune 411 005, Maharashtra, India

6) Date and brief description of instrument

modifying the charge

Dated 15.01.2005

Supplemental deed of hypothecation

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.

First modification dated 16.08.2000 vide equitable mortgage by deposit of title deeds by oral assent: by extension of security of immovable property consisting of land at T-126, Pimpri Industrial Area, within the village limits of Bhosari, Pimpri Chinchwad Municipal Corporation, Taluka and Registered Sub District Pune admeasuring 2345 sq. meters or thereabouts, together with building and structures admeasuring 410.64 sq. meters with AC sheet roofbrick masonry walls with steel doors and windows constructed on the said plot of land .

(Regd. on 15.09.2000 Sr. No. 7)

Second modification dated 31.08.2001 by supplemental deed of hypothecation: by this second modification the bank has enhanced the limits of the current facilities. In addition the bank has granted additional facilities. The total limit increased from Rs. 18.500 millions to Rs. 30.600 millions as per annexure.

(Regd. on 08.01.2002 Sr. No. 13)

Third modification dated 08.11.2001 by memorandum of deposit of title deeds: by this modification the company has extended security of immovable property consisting of land at T-126, Pimpri Industrial Area, within the village limits of Bhosari, Pimpri Chinchwad Municipal Corporation, Taluka and Registration Sub District Pune, admeasuring 2345.00 sq. meters or thereabouts, together with building and structure admeasuring 410.64 sq. meters with AC sheet roof brock masonry walls with steel doors and windows constructed on the said plot of land to cover the additional fund based limits of Rs. 11.000 millions and non fund based limits of Rs. 2.500 millions.

(Regd. on 08.01.2002 Sr. No. 15)

Fourth modification dated 19.02.2002 by supplemental deed of hypothecation: by this modification the bank has enhanced the limits. The total limit increased from Rs. 30.600 millions to Rs. 33.100 millions.

Fifth modification dated 01.11.2002 vide supplemental deed of hypothecation by which the bank has enhanced the limits to Rs. 34.454 millions, inter alia against the security of the hypothecated assets by extending the charge created thereon earlier under the Principal deed of hypothecation to secure the enhanced / additional facilities granted by the bank.

(Regd. on 26.11.2002 Sr. No. 31)

Sixth modification dated 01.11.2002 vide equitable mortgage by deposit of title deeds by way of oral assent: by this sixth modification the mortgagors have given oral assent to the bank to continue to hold and retain the said title deeds in respect of the said property as and by way of further mortgage by deposit of title deeds by way of constructive delivery as security for the due repayment of the said facility of Rs. 34.454 millions.

Details of property as under:

All that piece and parcel of land known as Plot No. T-126 in the Pimpri Industrial Area within the village limits of Bhosari and within the limits of Pimpri Chinchwad Municipal Corporation, Taluka and Registration Sub District Haveli District and Registration Pune District containing by admeasuring 2345 sq. meters of thereabouts 410.64 sq. meters for the use of industrial factory having RCC foundation and Truss with AC sheet roof and brick masonry walls with steel doors and windows constructed on the above said plot of land and bounded as under:

On or towards East: by road

On or towards South: by Plot No. T-125

On or towards West: by Plot No. T-105

On or towards North: by Plot No. T-127

(Regd. on 26.11.2002 Sr. No. 33)

Seventh modification dated 27.02.2004 by this modification, the bank has agreed to enhanced the limits under the said facilities as also granted additional facilities with new aggregate limits of Rs. 43.550 millions repayable with interest/ commission on the terms and conditions set out in the Letter No. PCBB:AKM:2105 dated 08.01.2004 and interalia against the security of the hypothecated assets by extending the charge created thereon earlier under the Principal deed of hypothecation to secure the enhanced/ additional facilities granted by the bank. The bank is having first charge on the assets hypothecated and mortgage to it. The credit facilities granted by the bank shall carry applicable rates of interest with monthly rests.

Security: hypothecation of all tangible movable machinery including in particular heat sealing machine, hot air generator welding machine, stretch wrapping machine, forklift, constant current rectifier, vacuum dry charge plant, pressure die casting machine, grid casting machine, mould of various sizes and all stock of raw material, indigenous/ imported such as all types of chemicals including in particular pure lead, polypropylene, antimony metal, lead, alloy grey oxide, barium sulphate, carbon, tin, tubular bags. Separate plugs, welding rods, connector shroud, HRB container, thermocole, brass, copper, sulphuric acid, wooden boxes, copper leaves, MS crates bitumen, positive / negative grid, etc.

As security for the due repayment of the said facilities of Rs. 43.550 millions the company has given additional security by way of equitable mortgage by deposit of title deeds by oral assent in respect of immovable properties of the mortgagor situated at T-126 Pimpri Industrial Area, Pune detailed as under:

All that piece and parcel of land known as Plot No. T-126, in the Pimpri Industrial Area, within the village limits of Bhosari and within the limits of Pimpri Chinchwad Municipal Corporation, Taluka and Registration Sub District Haveli District and Registration Pune District containing by admeasuring 2345 sq. meters of thereabouts 410.64 sq. meters for the use of industrial factory having RCC foundation and Truss with AC sheet roof and brick masonry walls with steel doors and windows constructed on the above said plot of land.

By the present modification the bank has enhanced the limits to Rs. 62.048 millions. The new limits and the rates of interest/ commission at the rates and in the manner set out in the schedule III of the supplemental deed of hypothecation dated 15.01.2005.

Facilities	Limits
Fund Based n Term Loan I n Term Loan II n EPC n FBP/ FBD/ FBN (DP/DA 180 days)	Rs. 1.048 millions Rs. 6.000 millions Rs. 35.000 millions Rs. 35.000 millions
Maximum 3 + 4	Rs. 35.000 millions
Non Fund Based n Bank Guarantee n LC (Inland/Foreign Sub Limit of LC) n Clean Inland	Rs. 5.000 millions Rs. 20.000 millions Rs. (2.500) millions
Maximum 5 + 6 NFBL	Rs. 20.000 millions
Aggregate	Rs. 62.000 millions

The security of hypothecated assets under the previous deed of hypothecation shall also constitute aggregate limit of Rs. 62.048 millions. Interest will be charge with monthly rests.

Security mentioned in schedule II of the supplemental deed of hypothecation dated 15.01.2005

Hypothecation of all tangible movable machinery including in particular heat stealing machine, moulds and accessories, hot air generator, welding machine, stretch wrapping machine, forklift, constant current rectifier, vacuum dry charge plant battery charging station, pressure die casting machine cables and wire connection etc.

All stock of raw material indigenous/ imported such as all types of chemicals including in particular pure lead, polypropylene, antimony metal, lead, alloy grey oxide, barium sulphate, carbon, tin, tubular bags. Separate plugs, welding rods, connector shroud, HRB container, thermocole, brass, copper, sulphuric acid, wooden boxes, copper leaves, MS crates bitumen, positive / negative grid, etc.

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.46.96
UK Pound	1	Rs.83.91
Euro	1	Rs.66.36

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	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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		50

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