MIRA INFORM REPORT

Report Date :

03.10.2008

IDENTIFICATION DETAILS

Name :	HAZIRA LNG PRIVATE LIMITED
Registered Office :	101/ 103, Abhijeet- II, Mithakhali, Circle, Ahmedabad-380006, Gujarat
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	11.10.2000
Com. Reg. No.:	04-38780
CIN No.: [Company Identification No.]	U40100GJ200PTC038780
TAN No.: [Tax Deduction & Collection Account No.]	AHMH00868A
PAN No.: [Permanent Account No.]	AAACH9143C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of LNG

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 27000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of Sheel Group Worldwide. The company has a strong capital base. Trade relations are fair. It has some accumulated losses, but it does not seem to have a effect on its operations. Payments are reported as usually made as per commitments. The company can be considered good for normal business dealilngs.

LOCATIONS

Registered Office/ Head Office:	101/ 103, Abhijeet- II, Mithakhali, Circle, Ahmedabad-380006, Gujarat
Tel. No.:	91-79-30011100
Fax No.:	91-79-30011101
E-Mail :	Surat.mitra@shell.cpm
Website :	http://www.haziralng.com
Area :	Owned
International Head Office :	Shell Gas & Power (Shell International Gas Limited) Shell Centre, London SE1 7NA, United Kingdom.
Tel. No.:	+44-20-79342366
Fax No.:	+44-20-79347846
E-Mail :	www.shell.com
Projected Office :	Hazira, District : Surat. In Gujarat State (Construction under progress)
Branches :	1001-1005, Ansal Tower, Nehru Place, New Delhi – 110019
Tel. No.:	91-11-26483003/26429249/26483004
Fax No.:	91-11-26472341

DIRECTORS

Name :	Mr. Virkam Singh Mehta
Designation :	Director
Address :	18, New Friends Colony, New Delhi, India
Date of Birth/Age :	30-10-1952
Date of Appointment :	11-10-2003
Name :	Mr. Marc Den Hartog
Designation :	Director
Address :	Gupta Farms No. 1, Jhandewala Behind-D3, Mall Road, Kishangarh, Vasant Kunj, New Delhi
Date of Birth/Age :	08-05-1960
Date of Appointment :	22-03-2002
Name :	Mr. Nitin C Shukla
Designation :	Director
Address :	13, Basant Bahar, Bhopal, Ahmedabad-380058, Gujarat
Date of Birth/Age :	14-04-1952
Date of Appointment :	25-03-2002
Name :	Mr. Jacques Chambert – Loir
Designation :	Director
Date of Birth/Age :	22.03.1949
Date of Appointment :	22.03.2005
Name :	Mr. Christophe Miaux
Designation :	Director
Date of Birth/Age :	28.04.1956
Date of Appointment :	11.06.2007
Name :	Mr. Stephen Vernon Twilley
Designation :	Director
Address :	2, Green Way Close, West Byfleet Surrey KT14 6Q2
Date of Birth/Age :	29-12-1947
Date of Appointment :	11-10-2003
Name :	Mr. Martin Andrew Foley
Designation :	Director
Address :	3/11, Shantiniketan, New Delhi
Date of Birth/Age :	11-06-1967
Date of Appointment :	11-10-2003
Name :	Mr. Ratan Dayal
Designation :	Director
Address :	4, Vasant Marg, Vasant Vihar, New Delhi
Date of Birth/Age :	17-03-1931
Date of Appointment :	11-10-2003
Name :	Mr. Danial Fobelets
Designation :	Director
Address :	21, Martin Syde Woking GU22 8HT, United Kingdom
Date of Birth/Age :	22-06-1966
Date of Appointment :	22-06-2001
Name :	Mr. Vipul Agarwal
Designation :	Director
Address :	D-132, Sector-41, Noida, Uttar Pradesh
Date of Birth/Age :	28-08-1970
Date of Appointment :	04-02-2002
Name :	Mr, Paulides B Gerardus
Designation :	Director
Address :	Randor HouseWood, Riding Pyrford Woods, Pyrford , Surrey GU22 8RH, United Kingdom
Date of Birth/Age :	14-09-1961
Date of Appointment :	22-03-2002
Name :	Mr. Gerald Wouter Kok
Designation :	Director
Address :	3-11, Shanti Niketan, New Delhi
Date of Birth/Age :	14-09-1961
Date of Appointment :	22-03-2002
Name :	Mr. Denis Giorni
Designation :	Director
Address :	14, Allee Sisley, 78560 Le Port, Marly, France
Date of Birth/Age :	15-01-1951
Date of Appointment :	19-03-2004
Name :	Mrs Jean Pierre janqua
Designation :	Director
Address :	6B, 6^th Floor, Berjay House, Community Centre, New friends Colony, New Delhi
Date of Birth/Age :	26-02-1959
Date of Appointment :	19-03-2004
Name :	Mrs. Bellinga Harm Cornelis
Designation :	Director
Address :	Flat 48, Country Hall, North Block, London, SE1PJ, United Kingdom
Date of Birth/Age :	12-08-1952
Date of Appointment :	16-05-2003
Name :	Mr. Hiten B Kapasi
Designation :	Director
Address :	86-B, Abhinandan Swami Soc, Memnagar, Ahmedabad
Date of Birth/Age :	08-04-1976
Date of Appointment :	10-03-2003

KEY EXECUTIVES

Name :	Mr. Surit Mitra
Designation :	Company Sercretay
Date of Birth/Age :	17.04.1964
Date of Appointment :	09.12.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS on 29.06.2006

Names of Shareholders	No. of Shares
Shell Gas BV, The Hague, Netherlands	533054935
Total Gaz Electricite Holdings, France	187289571
Total	720344506

As on 29.06.2006

List of Allottees	No. of Shares Allotted
Shell Gas BV, The Hague, Netherlands	112970076
Total Gaz Electricite Holdings, France	3969423
Total	116939499

Equity Share Breakup (Percentage of Total Equity)

As on 28.09.2007

Category	Percentage
Foreign holdings (Foreign institutional investor(s), Foreign Compnie(s), Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or others	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of LNG

GENERAL INFORMATION

No. of Employees :	Office – 25, Project site – 100. Total - 125
Bankers :	v Citibank v Bank of America v HDFC Bank, Ahmedabad

Banking Relations :	Satisfactory
Auditors :
Name :	Price Waterhouse Chartered Accountant
Address :	P-1, Aditya Vihar Saidulajab, Opposite D Block, Saket Mehrauli, Badarpur, Road, New Delhi-110030, India
Holding Company :	Shell Gas BV, The Hague, Netherlands Shell Centre, London SEI 7NA, United Kingdom. Tel No. : +44(0)20-79342366 Fax No.: +44(0)20-79347846
Company Holding Substantial Interest:	Total Gaz Electricite Holdings, France
Associates/Subsidiaries :	· Hazira Gas Private Limited · Hazira Port Private Limited · Brunei LNG Sendirianh Herhad · Shell International Petroleum Company

CAPITAL STRUCTURE

As on 24.09.2007

Authorised Capital :

No. of Shares	Type	Value	Amount
870000000	Equity Shares	Rs. 10/- each	Rs. 8700.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
720344506	Equity Shares	Rs. 10/- each	Rs. 7203.445 Milllions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		7203.445	5676.840
2] Share Application Money		0.067	196.847
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		[1784.573]	[1389.659]
NETWORTH		5418.939	4484.028
LOAN FUNDS
1] Secured Loans		0.000	0.000
2] Unsecured Loans		12345.477	12682.017
TOTAL BORROWING		12345.477	12682.017
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		17764.416	17166.045
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15877.262	16878.835
Capital work-in-progress		36.295	122.327
INVESTMENT		394.100	50.067
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2317.830	146.899
	Sundry Debtors	1221.312	0.000
	Cash & Bank Balances	3.932	5.444
	Other Current Assets	316.840	349.124
	Loans & Advances	89.142	132.818
Total Current Assets		3949.056	634.285
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2505.907	537.281
	Provisions	3.865	1.714
Total Current Liabilities		2509.772	538.995
Net Current Assets		1439.284	95.290
MISCELLANEOUS EXPENSES		17.475	19.526
TOTAL		17764.416	17166.045

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		47948.450	22342.434	302.577
Other Income		80.499	29.454	1.704
Total Income		48028.949	22371.888	304.281
Profit/(Loss) Before Tax		301.825	[390.677]	[1384.804]
Provision for Taxation		4.210	4.237	4.888
Profit/(Loss) After Tax		297.615	[394.914]	[1389.659]
Expenditures :
	Cost of Goods Sold	43576.235	20233.609	338.894
	Operating Expenses	2047.562	1420.323	106.537
	Personnel Expenses	197.745	218.922	104.260
	Administrative Expenses	502.627	146.086	67.769
	Expenses incurred during construction period	0.000	0.000	209.482
	Miscellaneous Expenses	2.050	2.050	0.977
	Financial Charges	28.175	54.363	0.000
	Depreciation & Amortization	2681.618	1025.503	524.460
	Gain on Foreign Exchange Fluctuations	[1308.888]	[338.291]	336.706
Total Expenditure		47727.124	22762.565	1689.085

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	6.19	[1.77]	[456.70]
Net Profit Margin (PBT/Sales)	(%)	0.62	[1.75]	[457.67]
Return on Total Assets (PBT/Total Assets}	(%)	NA	[1.97]	[7.91]
Return on Investment (ROI) (PBT/Networth)		NA	[0.07]	[0.31]
Debt Equity Ratio (Total Liability/Networth)		NA	2.74	2.95
Current Ratio (Current Asset/Current Liability)		NA	1.57	1.18

LOCAL AGENCY FURTHER INFORMATION

AS PER WEBSITE

Profile:

Liquefied Natural Gas, or LNG, is a clear, colourless liquid that forms when natural gas has been cooled to -162C. It is odourless, non-toxic and non-corrosive. In its liquid form, natural gas is more efficiently stored and is economic to transport in dedicated LNG carriers overseas to receiving terminals. Indeed, converting natural gas into LNG is the only viable way to transport natural gas to places that are beyond the reach of pipeline systems. In liquid form, natural gas takes up 600 times less space than it does as a gas. It is like shrinking the volume of a beach ball to that of a ping-pong ball.

LNG is warmed into a gas again where needed (known as regassification) and introduced into the existing natural gas pipelines. From there it has residential uses (e.g. heating homes, cooking); commercial uses (e.g. heating buildings, providing fuel for natural gas transport); and industrial uses (e.g. as a fuel for turbines that produce electricity).

As the world searches for greener forms of energy, demand for natural gas – the cleanest-burning hydrocarbon – is expected to double over the next two decades. Power made from natural gas transported as LNG typically emits about half as much carbon as coal, even with the extra energy needed for liquefying and shipping.

Natural gas liquefaction dates back to the 19th century when the first practical compressor and refrigeration machine was built in Germany in 1873. Although the first LNG plant began operation in 1917 in the USA, significant commercialization did not get underway before 1941, when the first commercial liquefaction plant was built

LNG is already a growing part of the world’s energy supply and is produced in many countries that have abundant natural gas reserves and facilities to produce LNG for export. These facilities include:

· Storage facilities: used for keeping a reliable supply of natural gas close to consumers

· Export terminals: used for liquefying and transporting LNG from production regions

· Receiving Terminals: used to regasify natural gas for delivery to consumers.

THE PORT

Hazira (Surat) Port, is a deep-water, all-weather, multi-cargo port, which will be a significant infrastructure asset to the state of Gujarat.

Hazira ( Surat) Port is designed as a deepwater, all weather and direct berthing port. It is situated in the state of Gujarat on the west coast of India, is about 25 km from Surat and 120 nautical miles north of Mumbai. It is built with a harbour design with additional waterfront for development of non-LNG cargo handling terminals.

Hazira (Surat) Port is planned as a ‘Gateway Port’ to serve the hinterlands of North, West & Central India. It has the added advantage of possessing a highly industrialized immediate hinterland, where the container traffic is expected to grow at over 13%

Hazira (Surat) Port has an approach channel of about 1000 m, turning radius of 600 m and dredged depth of (-12) m chart datum with a capacity to accommodate larger vessels using tidal variance.

The expansion of the functionality of the port to handle Containers as well as bulk cargo will involve additional investments potentially up to another Rs 30000.000 Millions

News:

SHELL-TOTAL PARTNERSHIP COMMISSIONS HAZIRA LNG TERMINAL

HAZIRA LNG TERMINAL AND PORT DEDICATED TO NATION

Commercial operations in Q2 2005

First LNG Carrier Gemmata docks and discharges cargo

First supplies from Australia

Hazira first merchant LNG terminal

First customers in Gujarat

Investment in excess of Rs 30000.000 Millions in LNG Receiving Terminal & Port

Capacity of 5 million tonnes per annum with initial throughput capacity of 2.5 million tonnes per annum
Multi-cargo all-weather port at Hazira

New Delhi, April 21, 2005: Royal Dutch/Shell Group (“The Shell Group”) and Total Gaz Electricité Holdings France, two of the largest private LNG providers in the world, formally announced the inauguration today of the Hazira LNG Terminal & Port at Hazira (Surat) in Gujarat with the unloading of the first cargo of LNG from the ship Gemmata. The Hazira LNG Terminal & Port was dedicated to the Nation this afternoon by Shri Mani Shankar Aiyar, Union Minister for Petroleum and Natural Gas and Shri Narendra Modi, Chief Minister of Gujarat at simultaneous ceremonies at New Delhi, Gandhinagar and Hazira. The first cargo of LNG originated from the North-West Shelf liquefaction project in Australia.

Representing an investment in excess of Rs 30000.000 Millions, the Hazira LNG terminal project is one of the largest greenfield international direct investments in India. The functionality of the deep-water, all-weather Hazira port will be expanded in partnership with other parties with specialized port experience and/or with an interest in port usage.

Capacity of 5 million tonnes

The Hazira Project is the largest of Shell’s and of Total’s ventures in India and includes an LNG receiving and storage terminal within a newly built protected harbour. The world-scale LNG terminal together with infrastructure is laid out for a capacity of 5 million tonnes per annum (“mtpa”) of LNG. Though the initial throughput capacity is of the order of 2.5 mtpa, marginal incremental investments in equipment will enhance the capacity to 5 mtpa. In line with market expansion, the terminal is expected to subsequently achieve a throughput capacity of 10 mtpa.

Speaking at the event from The Hague, Ms Linda Cook, Executive Director, Gas & Power, Royal Dutch / Shell Group of Companies, said, “Our investment in Hazira marks Shell’s firm, long term commitment to our customers and stakeholders to make available a new, reliable and competitive energy source to fuel India’s growing economy.”

On his side, Mr. Yves-Louis Darricarrere, President of Total Gas and Power said: “Hazira is just one of the many steps Total is taking as we grow and strengthen our activities in the LNG industry. With the inauguration of this terminal we further secure access to a fast growing market for the benefit of our upstream LNG projects. This project illustrates how Total’s commitment to develop its activities in all segments of the gas industry makes us a preferred partner for large gas projects worldwide.”

Mr. Vikram Singh Mehta, Chairman Shell Group of companies in India said: “The Shell Group’s vision is to establish the most successful new energy ventures in India in terms of business success and reputation. The Hazira partners will strive to augment energy supplies to India and thus become the “partners of first choice” for Indian commerce and industry.”

A Global first in LNG industry: Flexible Contracts

“Hazira is a global first for the LNG industry. The traditional model for gas import calls for long-term contracts (often 20 years or more) with rigid contractual terms. In contrast, Hazira aims to offer flexibility in contract duration and to match fluctuations in customer demand profile. By virtue of their presence across a number of LNG supply projects around the globe, Shell and Total are well positioned to organize LNG supply in a tight market,” said Mr. Marc den Hartog, Director (Gas & Power), Shell India.

"Hazira location is strategic due to its proximity to the LNG supply sources located in the Middle East, where the Total Group holds stakes in three existing LNG plants ( Abu Dhabi, Qatar and Oman) and is further strengthening this position by developing projects in the region. Thus the LNG import terminal at Hazira provides a natural outlet for these projects which will fuel the buoyant and fast growing markets in the north west of India, facilitating its economic growth,” said Mr. Jean Pierre Junqua, Managing Director (Gas & Power), Total India.

Circle of prosperity

Mr Nitin Shukla, Director and Group CEO of the Hazira venture companies, Hazira LNG Pvt. Ltd and Hazira Port Pvt. Ltd. said: “The large investment has created a long term asset in the state of Gujarat. The increased supply of LNG in the region as well as the construction of the port implies significant downstream development in sectors ranging from power and fertilizer to other energy intensive industries. Further, the construction of a multi-cargo port over a period of time will spawn a significant service industry ranging from freight forwarders to cargo handlers, transporters and supporting hospitality industry as well as localized service industry. There will, therefore, arise a circle of prosperity that will possibly exceed any such relationship in the region.”

Shell-Total Partnership

The Hazira LNG Terminal and Port is partnered by Shell Gas B.V., a member of the Royal Dutch/Shell Group of Companies and Total. Total has a shareholding of 26% in each of the companies that comprise the project.

Shell is a technology leader and has designed more LNG plants than any other company in the world. Shell is also one of the largest LNG vessel users in the world. With possibilities to ship LNG from Shell-partnered plants in Oman, Australia, Brunei and Malaysia as well as the new plant under construction in Sakhalin Island, the multiplicity and geographical spread of Shell’s LNG sourcing will support its aim to become India’s most consistent and reliable supplier of LNG.

Total is a world leader in natural gas production and marketing as well as power generation. It has Interests in five of the world’s largest liquefaction plants, which represent around 40% of global LNG production capacity, nearly one-quarter of the Group’s gas production is dedicated to the LNG industry. Total has LNG production in Indonesia, Qatar, Oman, Abu Dhabi, Nigeria, and, in the future, Northern Europe. This wide range of supply sources strengthens the ability of the Hazira terminal to suit the requirements of the Indian market.

Accessing markets

After the berthing and first cargo unloading, the Hazira terminal will complete commissioning activities and is expected to be supplying gas commercially later this quarter.

The Hazira LNG terminal is accessing existing pipeline infrastructure for transportation and delivery of gas to the customers. A 17 Km Pipeline from Hazira to Mora has been laid to connect to the Gujarat grid. A gas supply agreement with GSPC is in place

Subject to access to inter-state pipelines, the markets in Maharashtra, Rajasthan and other markets accessible by such pipelines will also be targeted. The customers for regassified LNG range across various sectors like power, fertilizer, petrochemicals, manufacturing and transport.

The Hazira Advantage

A combination of factors went into choosing Hazira as the site for the LNG Terminal and an all weather port. Hazira is situated in the midst of one of the most industrialized areas in the country and has a ready market for gas in the immediate vicinity. It is also well sited for connecting to the gas grid in Gujarat as well as both the HBJ pipeline and the prospective Dahej-Uran pipeline that can enable access to key markets in Maharashtra, Gujarat and Rajasthan as well as locations to the North along the HBJ pipeline.

About Shell in India

Shell’s presence in India goes back about 75 years, when it operated in the country as the pioneering oil distribution company, Burmah Shell. Since then, the Shell logo has remained one of the better-recognised international corporate symbols in India.

Shell in India currently has rapidly growing interests in retail fuel, natural gas (LNG), lubricants, bitumen, LPG and solar energy. Shell lubricants are available with over 20, 000 Shell distributors, dealers and other outlets. Shell LPG is marketed in the states of Maharashtra, Gujarat and Madhya Pradesh. Shell solar photovoltaic units are popular in Karnataka, Kerala and Andhra Pradesh. The retail fuel business, which has opened the first outlet in Bangalore, is all set to expand having a license for 2000 outlets and Rs 2500.000 Millions earmarked for it. Shell Group companies in India make their own contributions to Sustainable Development, a core Group value. In addition, the international Shell Foundation is an important vehicle for the Group to reach out and contribute to society, India being a focus country for such investments, which total USD 2.64 million to date.

About Total in India

Total has been present in India since 1970, when it started a long-term technical cooperation program with ONGC. Today, its strong willingness to develop in the Indian gas and power sector materializes through its partnership in Hazira.

The Group is one of the Indian market leaders in the lubricant sector (450 distributors and 35,000 dealers), Special Fluids and Solvents, and is pursuing research programs in refining process.
It also has LPG marketing activities through its 100% Total’s owned subsidiary Elf Gas India Limited and is developing a large storage facility in Andhra Pradesh in association with HPCL.
Total chemicals branch comprises 480 people and is present in India through six companies and one commercial branch.

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		66

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