MIRA INFORM REPORT

Report Date :

14.10.2008

IDENTIFICATION DETAILS

Name :	KRISHNA MARUTI LIMITED
Registered Office :	40 KM, NH - 8, Delhi Jaipur Highway, Village Narsinghpur, Gurgaon - 122 001, Haryana
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	25.06.1991
Com. Reg. No.:	05-32012
CIN No.: [Company Identification No.]	U34300HR1991PLC032012
TAN No.: [Tax Deduction & Collection Account No.]	DELK06895A
PAN No.: [Permanent Account No.]	AAACK1316N
Legal Form :	A closely held public limited liability company.
Line of Business :	Manufacturing and Exporting of car seats, covers and assemblies for motor vehicles and their engines.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 2934000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Trade relations are fair. Financial position is good. Payments are correct and as per commitments. The company is doing well. It can be considered good for any normal business dealings at usual trade terms and conditions. The company can be regarded as a promising business partner in a medium to long-run.

INFORMATION PARTED BY

Name :	Mr. Ashok Kapur
Designation :	Chairman and Managing Director
Date :	13.10.2008

LOCATIONS

Registered Office :	40 KM, NH - 8, Delhi Jaipur Highway, Village Narsinghpur, Gurgaon - 122 001, Haryana, India
Tel. No.:	91-124-637 1650 / 461 / 631
Fax No.:	91-124-637 1618
E-Mail :	1. 1. kmlworks@ndf.vsnl.net.in 2. 2. krishna.vend@maruti.sprintrpg.ems.vsnl.net.in
Website :	http://www.autoexpo98.com/kml http://www.krishnamaruti.com
Factory 1 :	· 903, Sector-17, IFFCO Road, Gurgaon-122001, Haryana · 40 KM, NH - 8, Delhi Jaipur Highway, Village Narsinghpur, Gurgaon - 122 001, Haryana Tel. 91-124-637 1650 / 461 / 631 Fax. 91-124-637 1618 E Mail. 1) kmlworks@ndf.vsnl.net.in 2) krishna.vend@maruti.sprintrpg.ems.vsnl.net.in Website : http://www.autoexpo98.com/kml
Door trim division :	Plot No. 48, Sector 3, IMT Manesar, Gurgaon, Haryana

DIRECTORS

Name :	Mr. Ashok Kapur
Designation :	Chairman and Managing Director
Address :	B-5, Chirag Enclave, New Delhi – 110 048
Date of Birth/Age :	24.06.1946
Date of Appointment :	25.06.1991
Name :	Mr. K. Kumar
Designation :	Director
Name :	Mr. Rajan Nanda
Designation :	Director
Address :	2, Friends Colony, New Delhi
Name :	Mr. Sanjay Labroo
Designation :	Director
Address :	Acacia lane, Green Avenue, Kishangarh, behind D – L, Vasant Kunj, New Delhi - 110070
Date of Birth/Age :	05.10.1961
Date of Appointment :	27.09.1996
Name :	Mr. T. Kobayashi
Designation :	Director
Address :	Maruti Udyog Limited, Gurgaon, Haryana
Name :	Mr. Sanjiv Malhotra
Designation :	Company Secretary
Name :	Mr. Sunandan Kapur
Designation :	Joint Managing Director
Address :	B-5, Chirag Enclave, New Delhi – 110 048
Date of Birth/Age :	21.08.1974
Date of Appointment :	01.04.2000
Name :	Mr. Masayuki Osada, Japanese
Designation :	Director
Address :	B-151, SFS Flates, Shaikh Sarai, New Delhi
Date of Birth/Age :	06.03.1950
Date of Appointment :	04.07.2003
Name :	Mr. Arminder Sawhney
Designation :	Director
Address :	C-1/12, Vasant Vihar, New Delhi
Date of Birth/Age :	16.08.1948
Date of Appointment :	24.03.2000
Name :	Mr. C. K. Dave
Designation :	Director
Address :	F – 15, Richmond Park, DLF Phase - IV, Gurgaon
Date of Birth/Age :	19.07.1950
Date of Appointment :	22.02.2005
Name :	Mr. Anil Sharma
Designation :	Director
Address :	1056, Maruti Kunj, Gurgaon
Date of Birth/Age :	27.11.1973
Date of Appointment :	05.05.2004
Date of Ceasing :	24.11.2004
Name :	Mr. Vineet Bhandari
Designation :	Director
Address :	804, Sector 10, Gurgaon
Date of Birth/Age :	04.07.2003
Date of Appointment :	24.10.2003
Name :	Mr. Keiichi Asai
Designation :	Director
Address :	Room No.533, Ashok Hotel, Diplomatic Enclave, Chankyapuri, New Delhi – 110 021, Delhi,India
Date of Birth/Age :	16.10.1955
Date of Appointment :	14.05.2008

MAJOR SHAREHOLDERS

(As On 28.09.2007)

Names of Shareholders	No. of Shares
Mr. Ashok Kapur	1271850
Mrs. Arti Kapur	14000
Ashok Kapur - HUF	15150
Sharsh Finance and Investments Company Private Limited	830000
Suzuki Motor Corporation, Japan	1240000
Maruti Udyog Limited	670000
Mr. Philip Litanzious	100000
Total	4141000

Equity share breakup (percentage of total equity)

Category	Percentage
Foreign Holdings (Foreign institutional investor(s), Foreign Companie(s), Foreign financial institution, Non-resident indian or overseas corporate bodies or Others)	29.24
Bodies Corporate (not mentioned above)	35.36
Directors or relatives of directors	33.04
Other top fifty (50) shareholders (other than listed above)	2.36
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Exporting of car seats, covers and assemblies for motor vehicles and their engines.

Products :

v Seating Systems

v Rear View Mirrors

v Head Rest Assemblies

v Arm Rest Assemblies

v Seat Tirms (Covers)

v Injection Moulded Door Trims

v Roofliners

v Moulded Carpets

Product Decription	Item Code No.
Seat Sets	94012000
Door Trims	87082900

Imports from :

Japan

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Seats	Nos.	--	400,000	319343
Door Trims of Automotive Vehicle	Nos.	--	1250000	1206144
Honda Scooter Components	Nos.	--	820000	794590
Roof Head Liner of Automotive Vehicle	Nos.	--	225400	62820

GENERAL INFORMATION

Customers :

v Maruti Udyog Limited

v Honda Siel Cars India Limited

No. of Employees :

3000

Bankers :

Ø The Bank of Tokyo Mitsubishi Limited, 3, Parliament Street, New

Delhi - 110 001

Ø The Lord Krishna Bank Limited, K-2, Chaudhary Building, Middle

Circle, Connaught Circus, New Delhi - 110 001

Ø The ICICI Bank Limited, 9A, Connaught Place, New Delhi- 110 001

Ø State Bank of Hyderabad, Narsinghpur, Gurgaon

Ø Citi Bank

Facilities :

Particular	31.03.2005
Secured Loan	Rs In millions
Vehicle loan form Banks	5.783
Working capital limits form banks	12.930
Sales tax Deferral loan interest free	11.985
Tooling Advances from Integra Overseas Private Limtied	5.495
Total	36.193
Vehicles Loan are secured against hypothecation of respective vehicles
Working capital from Bank is secured by way of hypothecation of inventories, book dents and other current asses in respect of bank of Toyko Mitsubishi Limited and Citi Bank. The facilities from Citi Bank are further secured by a second charge on fixed.
The sales Tax deferral is secured by bank guarantee issued in favour of GM, DIC Gurgaon
Tooling advance is secured against bank guarantee and personal guarantee of Director

Banking Relations :	Satisfactory
Auditors :	ASG and Associates Chartered Accountants 74, Hemkunt Colony, New Delhi - 110 048
Tel. No.:	91-11-2641 8183 / 26476825 / 6877
Fax No.:	91-11-2622 1834 / 26476825
E-Mail :	gsjco@nda.vsnl.net.in
Associates/Subsidiaries :	v Krishna Pads Private Limited, Gurgaon, Haryana v Krishna Trims Limited v Flair Infrastructure Private Limtied v Krishna Pads Limited v SKH Auto Components Limited v Krishna Toyo Limited v Roz-Ka-Meo Components Private Limited v Sharsh Finance and Investment Company Private Limited v Krishna Interior Private Limited v Swapn Farms Private Limited v ABR Auto Private Limited v Krishna Bozzalla Limited v Kapur Furnishing Private Limited v Gladodolia Farms v Kapur Fabrics v Munradtech Exports Private Limited v Munradtech Air Filteration Private Limited v Munradtech Investment Private Limited v Rishi Investment Private Limited v S Mehta investment Private Limited v Himanshu Enterprises Private Limited v AKPS Infrastructure Private Limited v Krishna Quinette Seats Private Limited v Pluto Automobiles Private Limited
Membership :	Confederation of Indian Industry

CAPITAL STRUCTURE

(As On 28.09.2007)

Authorised Capital :

No. of Shares	Type	Value	Amount
5,500,000	Equity shares	Rs.10/- each	Rs.55.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4241000	Equity shares	Rs.10/- each	Rs.42.410 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		42.410	42.410	42.410
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		544.582	463.459	369.173
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		586.992	505.869	411.583
LOAN FUNDS
1] Secured Loans		242.433	126.325	36.193
2] Unsecured Loans		8.507	10.411	121.999
TOTAL BORROWING		250.940	136.736	158.192
DEFERRED TAX LIABILITIES		19.410	39.123	39.010
TOTAL		857.342	681.728	608.785
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		484.112	428.459	421.632
Capital work-in-progress		25.790	30.530	13.192
INVESTMENT		13.932	252.568	170.403
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	115.262	156.346	91.857
	Sundry Debtors	346.455	183.763	69.587
	Cash & Bank Balances	123.243	8.217	2.701
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	556.401	294.106	310.501
Total Current Assets		1141.361	642.432	474.646
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	789.123	625.247	471.088
	Provisions	18.730	47.014	0.000
Total Current Liabilities		807.853	672.261	471.088
Net Current Assets		333.508	(29.829)	3.558
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		857.342	681.728	608.785

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Sales Turnover	4616.523	3919.344	3029.940
Other Income	69.392	62.113	56.506
Total Income	4685.915	3981.457	3086.446
Profit/(Loss) Before Tax	147.087	181.993	160.762
Provision for Taxation	37.016	69.446	41.581
Profit/(Loss) After Tax	110.071	112.547	119.181
Expenditure:
Raw Material Consumed	3310.710	2684.445	2041.044
Purchases made for re-sale	0.000	0.296	0.000
Consumption of stores and spares parts	0.000	0.000	0.000
Increase/(Decrease) in Finished Goods	(0.651)	6.868	0.000
Salaries, Wages, Bonus, etc.	69.687	52.340	53.885
Managerial Remuneration	6.897	12.031	10.500
Payment to Auditors	1.150	0.698	0.719
Interest	23.840	11.144	2.323
Insurance Expenses	6.082	6.060	4.938
Power & Fuel	66.524	45.686	39.472
Depreciation & Amortization	132.397	128.727	64.615
Other Expenditure	922.192	851.169	708.188
Total Expenditure	4538.828	3799.464	2925.684

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	2.34	2.82	3.86
Net Profit Margin (PBT/Sales)	(%)	3.18	4.64	5.30
Return on Total Assets (PBT/Total Assets}	(%)	9.04	16.99	0.17
Return on Investment (ROI) (PBT/Networth)		0.25	0.35	0.39
Debt Equity Ratio (Total Liability/Networth)		1.80	1.59	1.52
Current Ratio (Current Asset/Current Liability)		1.41	0.95	1.00

LOCAL AGENCY FURTHER INFORMATION

HISTORY

The company was incorporated on 25^th June, 1991 at Gurgaon in Haryana having Company Registration Number 32012.

The company was incorporated under name “Sona Cas Seat Limited” for manufacturing car seats. In 1994 the name of the company was changed to Krishna Maruti Limited, following acquisition of 24.3% shareholding by Suzuki Motor Corporation, Japan (SMC) and 13.1% by Maruti Udyod Limited (MUL). The subject was originally promoted as a second vendor for the seating requirement for Maruti Udyog Limited’s passenger cars. Post 1999-00, the subject diversified its operations to manufacture door trims and roof headlines for Maruti Udyog Limited, B-segments models.

The company's fixed assets of important value include land, building, plant & machinery, electrical equipments, furniture, fixtures & office equipments, EDP equipments, vehicles and air conditioners.

Name of the company	KRISHNA MARUTI LIMITED
Presented By	--
1) Date and description of instrument creating the change	Goods security agreement dated 08.07.2000 which was registered on dated 16.07.2002 and further modified by deed of modification dated 24.03.204 which was registered on dated 02.04.2004.
2) Amount secured by the charge/amount owing on the securities of charge	Total working capital facility : Rs.77 millions Fund Based facility Rs.43 millions Non fund Based facility Rs.34 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	First Pari Passu charge on all present and future Stock and Book debts of the company.
4) Gist of the terms and conditions and extent and operation of the charge.	Repayable on demand Cash credit / working capital demand loan / usance LCs 8.50 % Other interest rates as per RBI mandated rates specified from time to time.
5) Name and Address and description of the person entitled to the charge.	Citi Bank NA Jeevan Vihar 3, Sansad Marg, New Delhi – 110001
6) Date and brief description of instrument modifying the charge	Deed of modification 16.10.2005
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.	Total working capital facilities Rs.225 millions Rate of interest @ 8.5 % All other terms and conditions shall remain same.

Form 8 Particular for creation or modification of charges

This Form is for	Creation of Charge
Corporation identity number or foreign company registrations number of the company	U34300HR1991PLC032012
Name of the company	KRISHNA MARUTI LIMITED
Address	40 KM, NH - 8, Delhi Jaipur Highway, Village Narsinghpur, Gurgaon - 122 001, Haryana, India
Type of Charges	Movable Property Others
Particular of the charge holder	Citi Bank NA Jeevan Vihar 3, Sansad Marg, New Delhi – 110001 The Hongkong and Shanghai Banking Corporation Limited Birla House, 25 Barakhamba Road, New Delhi -110 001, Delhi, India
Nature or description of the instrument creating charge	Deed of Hypothecation
Date of the instrument creating charge	12.11.2007
Amount Secure by the charge	Rs.170.000 Millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest Interest shall be payable by the company on the banking facilities as per banks tariff, subject however that the bank shall have the right to change the rate of interest after giving notice to the company Terms of Payment In consideration of packing facilities sanctioned/ to be sanctioned by the Bank to the company, The company has hypothecated and charged to the bank by way of Second Pari Passu Charge as a continuing security, the assets mentioned in the Deed of Hypothecation to secure the repayments of the advances together with interest cost and all other charge Margin The Company shall maintain such margin as may be specified by the bank from time to time Extent and operation of the charge In case the Company fails to fulfil its obligation under the Deed of Hypothecation, the bank shall be entitle to take possession of the hypothecated properties and sell them by public auction or private contract and utilize the proceeds in full or part settlement of its claims.
Description of the property charge whether it is a charge on	Plant and Machinery
Shot particulars of the property charged	Second Pari Passu Charge Over The Company’s entire Fixed Assets (movable), Plant and machinery (fixed and movable), machinery spares, tools and accessories, both present and future

Profile

Subject is a Joint Venture Company of Suzuki Motor Corporation of Japan, Maruti Udyog Limited and Ashok Kapur and Associates. The company has a technical collaboration with SNIC of Japan. Subject is South Asia's Largest Manufacturer of Seating Systems for Automobiles

KML started its building operation in Dec 1993. The Rs.265 Million project was completed in a record time of 120 days! Since then they have already produced more that 2 Million Seat Sets. (3rd December '2004).

Subject is also India's first Company to use Robotic PU Plants. Both the PU Plants are Fully Automatic and Robotic and are capable of producing Dual hardness Pads for better orthopedic comfort.

Subject has in-house Welding Shop for manufacturing Frames for Seating System This weld shop is equipped with CNC machines and conventional welding machines like Mig Welding, Resistance Welding.

For painting of seat frames KML has fully automatic and conveyorised Pretreatment and Paint Plant. Water based paints are used in Shower Painting process.

Assembly is performed on Conveyorised lines using SNIC 's technology.

KML is capable of conducting test as per European Homologation and Japanese's Standards.

Krishna Maruti limited and its Group Companies are manufacturing auto interior components. The current Product Range consist of :-

v Seating Systems

v Rear View Mirrors

v Head & Arm Rests

v Seat Trims

v Auditorium Seat

v Injection Moulded Door Trims

v Roofliners

v Moulded Carpets

The company is engaged in manufacturing and exporting of car seats, covers and assemblies for motor vehicles and their engines (brakes, gear boxes, axles, road wheels, suspension shock absorbers, radiators, silencers, exhaust pipes, clutches, steering wheels, steering columns and steering boxes and other parts and accessories).

The company has technical tie up with Snic & Company Limited, Japan.

It imports raw materials, chemicals, sheet metal and spares.

The company imports polyol and isocyanate from Japan.

The company is in trade terms with the following :

Ø Colgate Palmolive India Limited

Ø Maruti Udyog Limited, Gurgaon, Haryana

Ø Suzuki Motor Corporation

Ø Krishna Groupo Antolin Private Limited

Subject does not export and sells in the domestic market.

Subject is capable of conducting test as per European Homologation and Japanese's Standards.

The company has been certified as ISO 9002 in year 1996 by TUV Bayran and QS 9000 in year 1997 by AV Vincotte, Belgium.

R & D Centre

The R & D Centre has been established with an investment of $ 1.5 Million. This centre is capable of conducting tests as per European Homologation (EEC/ECE/FMVSS) and Japanese Standards (JASO) on not only automotive seating systems but also on other components.

The test rigs are certified by Vehicle Certification Agency (VCA) of UK. The centre is recognised by the Department of Scientific & Industrial Research, Ministry of Science and Technology, Govt. of India. The set - up includes Vibration Test Rig, Free Flight Impact Test Rig and Static/Dynamic Strength Test Rig. The software used for these Rigs produces precise waveforms e.g. Sine, Triangular, Square and Ramps.

The subject has a Technical Tie-up with SNIC and Company Limited, SNIC Kasai Company Limited, Japan for manufacturing and designing of seats and door trims. The process of technical transfer is being continuously assimilated.

Subject is having joint venture with the following:

v Suzuki Motor Corporation

v Maruti Udyog Limited

v Kapur and Associates

Seat Division :

Krishna Maruti Limited is a Joint Venture Company of Suzuki Motor Corporation of Japan, Maruti Udyog Limited and Ashok Kapur & Associates. The company has a technical collaboration with SNIC of Japan. Krishna Maruti Limited is South Asia's Largest Manufacturer of Seating Systems for Automobiles. It started its building operation in December 1993. The subject produces 2 million seat sets.

Products :

The subject started its operations with only 1 model and a production capability of 40 sets/day. They manufacture 16 different models. Krishna Maruti Limited has a production capacity of 400,000 Seating Systems/ annum.

The subject produces 16 different Variants of seating systems for Maruti Passenger Cars and Vans of the following models:

v Baleno

v Esteem

v Wagon R

v Zen

v Omni

v Maruti 800cc

v Alto

Manufacturing Door Trims. This division has Technical Collaboration with OHTA SHEET of Japan

v Door Trims

v Roof Headlines

v Carpets

Door Trim Division

The subject is producing Injection Moulded Door Trims, the subject has Toshiba’s (Japan) 1300 Tonne Machines and for the Assembling of various plastic parts together.

KML Roof Liners Division

The division was set up in July 2000 & the machines for lamination & thermoforming was commission in December 2000. The commercial production started in Feb 2001.This plant can manufacture 2,00,000 Roof Headliners of various models per year.

Rear View Mirrors

Company produces a range of Outside and Inside Rear View Mirror Assemblies for with 35% OE market share, every fifth Indian Car has Rear View Mirror Assembly manufactured by Krishna Toyo Limited.

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.47.71
UK Pound	1	Rs.83.30
Euro	1	Rs.65.12

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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		72

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