MIRA INFORM REPORT

Report Date :

10.10.2008

IDENTIFICATION DETAILS

Name :	DOZCO (INDIA) PRIVATE LIMITED
Registered Office :	6, Waterloo Street, 3^rd Floor, Room No. 309, Kolkata – 700069, West Bengal
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	30.03.1992
Com. Reg. No.:	21-54998
CIN No.: [Company Identification No.]	U29130WB1992PTC054998
IEC No.:	2189000271
TAN No.: [Tax Deduction & Collection Account No.]	CALD01356F / CAHD04029E
PAN No.: [Permanent Account No.]	AABCD0776E
Legal Form :	Private Limited Liability Company.
Line of Business :	Importer, Exporter and Distributors of all types of Heavy Earth Moving and Construction Machinery Spare Parts.

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 2000000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. General financial position is good. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings.

LOCATIONS

Registered Office :	6, Waterloo Street, Suite No. 309, 3^rd Floor, Kolkata – 700069, West Bengal, India
Tel. No.:	91-33-22489809/ 2082/ 22101930 / 22482082
Fax No.:	91-33-22480604
E-Mail :	kolkata@dozco.com opbangur@dozco.com mailto:dozkkbms@md3.vsnl.net.in mailto:ngbdozco@cal3.vsnl.net.in
Website :	http://www.dozco.com
Area :	1000 sq.fts
Location :	(Owned) Industrial area
Head Office :	Plot No. 243, Block D, Industrial Development Area, Auto Nagar, Visakhapatnam – 530012, Andhra Pradesh, India
Tel. No.:	91-891-2769681
Fax No.:	91-891-2769687
E-Mail :	vizag@dozco.com
Area :	11150 sq. Mtr. – Owned
Factory :	1, Rajhans Mansion, Bank More, Dhanbad - 826001, Bihar
Area :	5000 sq.fts
Location :	(Owned) Industrial area
Branches :-	Ahmedabad 1,Shakti Estate, Behind Milan Complex, Gandhinagar-Bavala Highway, Near Sanand Chokadi, Sarkhej, Ahmedabad – 382 210 (Gujarat) Tel: 91-79-26891915 Fax: 91-79-26891934 E-Mail : Ahmedabad@Dozco.Com Mumbai Arunodaya, Building No 1281, Plot No 28,Sector No 24, Turbhe Village , Behind Gupta Weigh Bridge and Krishna Govinda Building, Opposite. Sanpada Rly Station (E) Turbhe, Navi Mumbai 400705 Telephone : -91-22 – 27842481 Fax : 91-22-27842482 022 – 65282815 Email Id : Mumbai@Dozco.Com Bangalore No.765, "Shyamal" 1st Main Road, Kengeri Satellite Town, Bangalore - 560 060 Karnataka Phone : 91-80 -28486912, 28486913, 28486914 E-Mail : Bangalore@Dozco.Com Barbil Opposite. Utkal Automobiles Barbil – Joda Highway P.O.Barbil- 758035, Orissa Tel No – 91-6767-277645 Fax No – 91-6767-277646 Email Id- Barbil@Dozco.Com Bilaspur  Opposite. Lic Building, Magarpara Road, Bilaspur – 495 001 (Chattisgarh). Tel: 91-7752-223988/403707 Fax: 91-7752-221707. Email Id- Barbil@Dozco.Com Bhubaneshwar Shed No.S-1/110, New Mancheshwar Industrial Estate, Rasulgarh, Bhubaneshwar – 751 010. Tel: 91-674-2587283 Fax: 91-674-2587284 E-Mail: Bhubaneshwar@Dozco.Com Chennai  No.4/251a,Poonamallee High Road, Kumananchavadi, Goparasanallur Village, (Near Savitha Dental College), Chennai – 600 056. Tel: 91-44-26493110 (5 Lines),044-65872900 Fax: 91-44-26493111. E-Mail : Chennai@Dozco.Com Dhanbad Urmila Tower “B” Block, 2nd Floor, Bank More, Dhanbad – 826 001 (Jharkhand). Tel: 91-326-2303800/2302499 Fax: 91-326-2303266 E-Mail: Dhanbad@Dozco.Com Nagpur 35/A, Midc Road, Off Wadi ’T’ Point, Opposite. Hotel Rahul, P.O. Wadi - 440 023. Dist: Nagpur, Tel: 91-7104-222538/222539, Fax: 91-7104-222536. E-Mail : Nagpur@Dozco.Com New Delhi B-Ii/6, Mohan Co-Operative Industrial Estate, Mathura Road, Badarpur Border, New Delhi – 110 044. Tel: 91-11-41677301(3 Lines). Fax: 91-11-41677304. E-Mail : Delhi@Dozco.Com Secunderabad Sripathi Venkat Rao Mansion, Survey No.176/2,176/3, Tarbund Cross Road, Bowenpally, Near Link Well Building, Secunderabad – 500 009(A.P) Tel: 91-40-27892571/72, Fax: 91-40-27892573. E-Mail : Hyderabad@Dozco.Com Satna Radhaswami Farm House- 5, Kothi Road, Civil Line, Satna- 485 001(M.P). Tel: 91-7672-224179, Fax: 91-7672-409509. E-Mail : Satna@Dozco.Com Guwahati N-H Road, Lakhara Road, Lakhara Charlie, Opposite. Krishna Kanta, P.O. Guwahati - 781 034. Ph: 91-361 - 2236734, Fax: 91-361 – 2236735 E-Mauk L Guwahati@Dozco.Com Udaipur  N.H-8,Amberi, Near Madhusudan Marble, Udaipur- 313 004.(Rajasthan). Tel: 91-294-2442801/02/03. Fax: 91-294-2442804. E-Mail: Udaipur@Dozco.Com
Representative Office :	Located at : Jaipur, Rajasthan Kolhapur, Maharashtra Kota, Rajasthan Salem, Tamilnadu

DIRECTORS

Name :	Mr. Radhe Shyam Bangur
Designation :	Director
Address :	Minocha colony, Mungeli Road, Bilaspur-495001, Chattisgarh, India
Date of Birth/Age :	20.01.1952
Date of Appointment :	30.03.1992
Name :	Mr. Ramesh Kumar Bangur
Designation :	Director
Address :	Nagpur – 12
Date of Birth/Age :	10.12.1958
Qualification :	B. COM.
Date of Appointment :	03.03.1992
Name :	Mr. Nand Gopal Bangur
Designation :	Director
Address :	Santi Bhavan, Bank More, Dhanbad-826001, Jharkhand, India
Date of Birth/Age :	06.05.1964
Qualification :	M. Tech.
Date of Appointment :	03.03.1992
Name :	Mr. Shiv Kumar Bangur
Designation :	Director
Address :	Amarjyoti Palace, Lokmat Square, Nagpur-440012, Maharashtra, India
Date of Birth/Age :	19.02.1954
Date of Appointment :	01.04.1994
Name :	Mr. Kamal Kishore Bangur
Designation :	Director
Address :	E-44, Anna Nagar (East), 3^rd Floor, Chennai-600084, Tamilnadu, India
Date of Birth/Age :	05.06.1968
Date of Appointment :	01.04.1994
Name :	Mr. Om Prakash Bangur
Designation :	Whole time Director
Address :	50-A, Purna Das Road, 3^rd Floor, Kolkata – 700029, West Bengal, India
Year of Birth :	14.02.1957
Qualification :	B. Com, ACA
Experience :	26 years
Date of Appointment :	03.03.1992
Other Directorship :	GCB Finvest Private Limited

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Galaxy Merchants Private Limited	214800
MGB Commercial Private Limited	197600
Cherry Business Private Limited	120000
Revival Business Private Limited	119200
GCB Fivest Private Limited	90000
Mr. Om Prakash Bangur	63000
Mr. Ramesh Kumar Bangur	63000
Mr. Nanda Gopal Bangur	58000
Radiant Project Private Limited	54900
Mr. Shiv Kumar Bangur	53000
Mr. Radhey Shyam Bangur	50000
Mr. Kamal Kishore Bangur	43000
Kamdhenu Lefins Private Limited	35600
Mrs. Bhagwani Devi Bangur	35000
Mrs. Tara Bangur	33000
Mrs. Leela Bangur	26000
Honourable Business Private Limited	20000
Shiv Kumar Bangur and Family [HUF]	15000
Paridhi Agencies Private Limited	12500
Ramesh Kumar Bangur and Family [HUF]	10000
Nanda Gopal Bangur and Family [HUF]	10000
Chelsea Traders Private Limited	7500
Mrs. Usha Bangur	6500
Mrs. Poonam Bangur	7400
Mrs. Manju Bangur	7400
Mrs. Vibha Bangur	7400
Mayborn Investment Private Limited	5000
Mr. Sandeep bangur	3000
Gama Business Private Limited	2500
Mr. Om Prakash Bangur [HUF]	1500
Total	1371800

BUSINESS DETAILS

Line of Business :	Importer, Exporter and Distributors of all types of Heavy Earth Moving and Construction Machinery Spare Parts
Products :	v Daewoo Hydraulic Excavator v Rock Breakers v Hydraulic Pump Components v Hallite Seals and Seal Kits
Agencies Held :	v Ajax, Australia v Itm Itraltractor, Italy v Italricambi srl, Italy v Nok Corporation, Japan v Commercial Intertake, USA v Federal Mogul, USA v G N L, Italy v Heavy Equipment Parts Company, USA v Donaldson v Freudenberg, Germany v Hallite
Exports :
Products:	Excavators and Dozers
Countries :	Kazakasthan and Dubai
Imports :
Products:	Machinery and parts
Countries :	Australia, Italy, Japan, Singapore, UK and USA
Terms :
Selling :	L/C, Credit (30 Days)
Purchasing :	L/C, Credit (30 Days)

GENERAL INFORMATION

Suppliers :

v Commercial Intertake, USA

v Nok, Singapore

v Yanmar Construction Equipment Company Limited, Japan

v Shantui Construction Machinery Company Limited, China

v Daechang Forging Company Limited, Korea

v Thiheiyo Sieki K. K., Japan

v Soosan Heavy Industries Company Limited, Korea

v Tongmyung Heavy Industries Company Limited, Korea

v Halite Sales International Limited, UK

v Solideal International S. A.

v Ajax, Australia

v Itm Itraltractor ITM S.p.A., Italy

v Italricambi srl, Italy

v Heavy Equipment Parts Company, USA

Customers :

v The Associated Cement Companies Limited

v Coal India Limited and Its Subsidiary Companies

v Durgapur Cement Limited

v Hindustan Copper Limited

v Raymonds Cement Works

v The Tata Iron and Steel Company Limited and Other major mining, cement and construction companies.

v Retailers

v Others

No. of Employees :

375 [In office : 150 and In Branch 225]

Bankers :

v Canara Bank

2, Brabourne Road, Calcutta - 700 001, West Bengal

v State Bank of India

Overseas Branch,9-1-571 GNT Road, Visakhapatnam

v Canara Bank

New Market, Bank More, Dhanbad - 826001

Facilities :

Secured Loan	Rs in Millions
From State Bank of India	96.237
From Others [Against Hypothecation of Vehicles]	4.556

Banking Relations :	Good
Auditors :
Name :	R. K. Periwal and Associates Chartered Accountants
Address :	Hind Motor - 712 233, Hooghly, West Bengal, India
Mobile No.:	91-9830201678
Parent Company :	Bangur Group Company
Associates/Subsidiaries :	v Bangur Rubber Works v GCB Finvest Private Limited

CAPITAL STRUCTURE

AS ON 29.09.2007:-

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs. 10/-each	Rs. 25.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1371800	Equity Shares	Rs. 10/-each	Rs. 13.718 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		13.718	8.714	7.522
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		203.951	63.183	39.610
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		217.669	71.897	47.132
LOAN FUNDS
1] Secured Loans		100.794	47.724	38.405
2] Unsecured Loans		46.415	54.765	53.216
TOTAL BORROWING		147.209	102.489	91.621
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		364.878	174.386	138.753
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		79.815	43.682	25.190
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.170	0.170	0.168
CURRENT ASSETS, LOANS & ADVANCES
	Inventories		358.803	151.935
	Sundry Debtors		147.078	148.153
	Cash & Bank Balances	689.937	69.163	73.047
	Other Current Assets		0.000	0.000
	Loans & Advances		44.742	17.582
Total Current Assets		689.937	619.786	390.717
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	405.044	469.625	265.548
	Provisions		19.627	11.774
	Total Current Liabilities	405.044	489.252	277.322
Net Current Assets		284.893	130.534	113.395
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		364.878	174.386	138.753

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		1453.921	923.695	595.863
Other Income		20.737	15.819	0.000
Total Income		1474.658	939.514	595.863
Profit/(Loss) Before Tax		38.571	19.976	14.021
Provision for Taxation		14.690	8.123	0.000
Profit/(Loss) After Tax		23.881	11.853	14.021
Earnings in Foreign Currency :
	Export Earnings	46.524	10.395
	Other Earnings	20.737	15.819
Total Earnings		67.261	26.214	4.679
Expenditures :
	Materials Value	1189.251	759.341
	Establishment Cost	29.163	17.565	581.842
	Selling, Operating and Administrative Cost	209.732	137.580
	Depreciation	7.941	5.052
Total Expenditure		1436.087	919.538	581.842

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	1.62	1.26	2.35
Net Profit Margin (PBT/Sales)	(%)	2.65	2.16	2.35
Return on Total Assets (PBT/Total Assets}	(%)	5.01	3.01	3.37
Return on Investment (ROI) (PBT/Networth)		0.18	0.28	0.30
Debt Equity Ratio (Total Liability/Networth)		2.54	8.23	7.83
Current Ratio (Current Asset/Current Liability)		1.70	1.27	1.41

LOCAL AGENCY FURTHER INFORMATION

Trade References:

v Punjllyod Limited

v Coal India

v SAIL

v Port Trust

v IOL

As Per Website:

The venture started in the year 1983 as a trading concern dealing in General Engineering items with a focus on Mining Machinery Spare Parts by the determined BANGUR brothers at Dhanbad followed by an establishment at Bilaspur, places with high concentration of mines, grew momentously within a couple of decades both in shape and size.

In the course of two decades the company grew with its branches and warehouses at strategically located places, and presently have 14 (Fourteen) branch offices across the country and still counting. It also has unique training centres for Sales and Service Engineers at Dhanbad and Vishakapatnam, Branch/warehouses already in operation are at Ahemedabad, Bangalore, Bhubaneswar, Bilaspur, Chennai, Dhanbad, Guwahati, Kolkata, Nagpur, New Delhi, Santa, Singrouli, Udaipur and Visakhapatnam.

With a wide branch network and the sourcing of all most exclusive range of spare parts from manufacturers, who are worldwide leaders in respective fields besides being OEM suppliers of world renowned brands of HEMM, subject became a vital name in the mining and infrastructure sector where use of HEMM are crucial. Visualizing the high potential, the company enlarged the scope by engaging in sales and services of complete HEMM viz., Bull Dozer, Excavators, Pay Loaders of international repute since 2003 and unfolded a new chapter towards achieving reality of its dream.

Being in the field for over two decades with a comprehensive range of Spare Parts for HEMM and source of internationally acclaimed complete machinery; subject has a commendable market presence and enjoys a dedicated client base for its accessibility, service quality and sense of commitment.

Spirited by undaunted entrepreneurship, rich with dedication and in-depth experience in the field, aided by technical expertise of next generation family members, subject, in tandem with the technically knowledgeable, experienced and dedicated team of personnel is heading towards market leadership in Earthmoving machinery and spare parts.

Subject has been distributing parts for Heavy Earth Moving Machinery for past the two decades. The Company has experienced steady growth since its inception and today they have offices at Ahemedabad, Bilaspur, Chennai, Dhanbad, Kolkata, Nagpur, Satna, Udaipur, Vishakhapatnam and liaison office at Bangalore.

They serve their valued customers scattered nationwide. Their customers come from every field i.e. Mining Industry, Construction and Infrastructure Sectors. Their growth test amounts to their working relationship with their customers scattered all over country and suppliers throughout the world. This relationship form strength, stability and expansion has led to reputation for success. This success is passed on with a great saving to their customers.

The recent advances in communications has again strengthen their role in the trade. All offices of Company are connected to instant informative Computer Networking, hence the benefit goes directly to the customers about availability of parts etc., this is again reflected while servicing the customers quickly and efficiently.

Commitment to quality, prompt deliveries and effective service is the motto of subject.

Subject offers a wide range of products and parts for Komatsu, Caterpillar, Poclain, Hitachi, Terex, Wabco, Samsung, Daewoo, Hyundai, Allison, Twin-Disc, ZF etc. They have inventory of very large selected varieties of parts for almost all equipments working in the country.

Ø Now, they have become authorized distributor for Daewoo Hydraulic Excavators. They can provide Service support also for all types of existing Daewoo population as well as for the new machines sold by them.

The Market they serve:

Getting the Mining Done

Mining and Quarrying such as Coal, Lignite, Limestone, Copper, Granite, Iron-Ore. Subject helps to produce mining faster and at lower cost. They specialize in OE genuine and replacement parts such as under-carriage parts, Hydraulic Seal, Seal Kits, Wear-Parts, Bearings, Chassis Parts and many more.

Infrastructure Development 

India is emerging as one of the biggest site for Infrastructure Development such as construction of Big Highways, Bridge, Canal, Harbours, Docks etc.    

On the Global Scene

Wherever large equipment is at work subject is the supplier for all the needs. Their many products coupled with their dedicated service and fast response have helped them become the dominant source for parts in many countries.

Moving the Big Ones 

When it comes to Under Carriage subject has supplied almost everyone. Their business boosted with under carriage parts. Their range of products & resources enables them to meet particularly any challenges.

Equipment Works

Minimum Equipment Downtime, because they serve the parts off the shelf at various locations, where the above activities are going in India.

Products:

Importers and Distributors of all types of Heavy Earthmoving and Construction Machinery Spare Parts and Daewoo Construction Equipments

Wide Range of Genuine / Replacement Parts are Available for following equipments:

Ø Loaders Front-End/ Backhoe

Ø Excavators Backhoe/ Loader

Ø Dumpers (Off the road truck)

Ø Bulldozers/ Tractors

Ø Motor Graders

Ø Diesel Engine

Ø Transmission

Wide Range of Genuine / Replacement Major Parts / assembly available for all equipments:

Ø Hydraulic Rock Breakers

Ø Swing Bearings

Ø Heavy Duty Rock Buckets

Ø Heavy Duty Rippers

Ø Hydraulic Pumps and Motors

Ø Under Carriage

Specials:

Importers and Distributors of all the types of Heavy Earthmoving and Construction Machinery spare parts and Daewoo Construction Equipments

Ø ITM - Italitractor, S.P.A., Italy

Ø Italricambi S.R. Italy

Ø Donaldson Company inc. USA.

Ø Hallite Seals International Limited, UK

Ø Tong Myung Heavy Industries Company, Limited Korea

Ø Ajax Engineered Fasterners, Australia

Ø G.N.L., S.P.A., Italy

Ø Soosan, Korea

Ø Federal Mougul Inc., U.S.A.

Ø Pewag - Weissenfels, Austria.

Ø Fenner India Limited

Ø Daewoo Heavy Industries and Machinery Limited

Import / Export

Imports:

Subject imports regularly various genuine / replacement parts applicable to Excavators, Dozers, Loaders, Dump Trucks, Diesel Engines and Transmissions applicable to various Earthmoving Equipments. Being of any make such as Komatsu, Caterpillar, Hitachi, Terex, Wabco, Case-Poclain, Samsung, Hyundai, Daewoo, Italtricambi, FMG, Hallite, Ajax, Freudenberg, Donaldson etc. Their strength in Indian market is good network in marketing. Hence they become largest Importers of Earthmoving parts in India. The above imports illustrated are apart from their authorized distribution line such As Italitractor Itm, Nok, Italtricambi, Fmg, Ajax Fasterners, Freudenberg, Gnl and Donaldson. They feel that still they can add more products in their distribution lines.

Exports:

Subject has sourced many OE/GENUINE parts such as Hydraulic parts, Chassis Parts, Transmission parts, etc. For Equipments manufactured in India with Foreign Collaboration such as Komatsu-Beml, Terex-Hm, Hitachi-Telco, Poclain- L and T etc. So, they are looking for the export requirement of parts manufactured in India for the following Equipments.

• Loaders Front-End/Backhoe
• Excavators Backhoe/Loader
• Dumpers  (Of The Road Truck)
• Bulldozers/Tractors
• Transmission

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.48.72
UK Pound	1	Rs. 82.17
Euro	1	Rs. 65.90

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	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions