MIRA INFORM REPORT

Report Date :

24.09.2008

IDENTIFICATION DETAILS

Name :	LABINDIA INSTRUMENTS PRIVATE LIMITED
Registered Office :	34/38,Bharat Kunj Society,No.II,Erandwane,Pune –411004,Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	10.08.1982
Com. Reg. No.:	027977
CIN No.: [Company Identification No.]	U33125MH1982PTC027977
Legal Form :	Private limited liability company
Line of Business :	The company is engaged in Designing and Manufacturing of Laboratory Equipments for Chemical Laboratories, R & D Units, Industries, etc. like Duel Ben UV-Spectrometer, Photometer, etc.

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 2575600
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. Financial position is good. Payments are correct and as per commitments. Trade relations are fair. The company is doing very well. It can be considered good for any normal business dealings. It can be regarded as a promising business partner in a medium to long – run.

LOCATIONS

Registered Office :	34/38, Bharatkunj Society II, Erandwana, Pune – 411 004, Maharashtra, India.
Tel. No.:	91-20-25410817
Fax No.:	91-20-25335940
E-Mail :	labindia@bom3.vsnl.net.in
Website :	http://www.labindia.com
Head Office :	P. B. No. 239, 201, Nand Chambers, 359, L. B. S. Marg, Near Vandana Cinema, Thane - 400 602, Maharashtra
Tel. No.:	91-22-2533 5389 / 1857 / 2536 9448/ 25534645
Fax No.:	91-22-2533 5940 / 25434775
Regional Office	20/2, 17th Cross Road, Malleswaram, Bangalore – 560055 Tel. No. 91-80-23449143/44/45/46 Fax. No. 91-80-23449147 E-mail – liplblr@vsnl.com Baroda 1, Mangalam Apartment, 52 Samptrao Colony, Alkapuri, Baroda – 390007 Tel. No. 91-265-2335748/2333291 Fax. No. 91-265-2335748 E-Mail. Lipl_brd@enfinet.net Kolkata 165-A, S P Mukherjee Road, Kolkata – 700026 Tel. No. 91-33-24661396/24663362 Fax. No. 91-33-24636726/24661352 E-Mail – liplcal@giascl01.vsnl.net.in Chennai B – 1, Alsa Regency, 165 Eldams Road, Chennai – 600018 Tel. No. 91-44-24352464/24354795 Fax. No. 91-44-24346328 E-Mail – liplchn@md3.vsnl.net.in Delhi G – 4, Pal Mohan Sadan, 26/32, East Patel Nagar, New Delhi – 110008 Tel. No. 91-11-25780400/25853822 Fax. No. 91-11-25851066 E-Mail- virender@del2.vsnl.net.in Gurgaon Plot No. 372, Udyog Vihar, Phase – II, Gurgaon – 122016 Tel. No. 91-124-2843000 Fax. No. 91-124-2843399 E-Mail- virender@del2.vsnl.net.in
Factory 1 :	359, Shastri Marg, Mulund (West) Branch, Mumbai – 400 080
Branches :	Located at : Chandigarh, Delhi, Lucknow, Baroda, Indore, Thane, Pune, Bangalore, Thiruvananthapuram, Chennai, Hyderabad, Kolkata and Guwahati.

DIRECTORS

Name :	Mr. Shriram G. Bhalerao
Designation :	Managing Director
Address :	603, Kasture Towers, LBS Road, Panchpakhadi, Thane – 400 602, Maharashtra
Date of Birth:	11.04.1951
Date of Appointment :	10.08.1982
Director Identification Number:	00495009
E-Mail :	bhaleraosg@labindia.com
Name :	Mr. Shrikant S. Bapat
Designation :	Director
Address :	S.No.849/1,Uma Apartments,Flat No.8,Opp.B.M.C.C.,Dr.Agarkar Road,Shivaji Nagar,Pune – 411 004 ,Haharashtra,India.
Date of Birth:	05.11.1944
Qualification :	B. E. (Electronics)
Date of Appointment :	10.08.1982
Director Identification Number:	00248221
E-Mail :	bapatss@labindia.com
Name :	Mr. Virendra S. Upadhya
Designation :	Director
Address :	45/16, Second Floor,East Patel Nagar,New Delhi – 110008,India.
Date of Birth:	09.03.1957
Date of Appointment :	10.08.1982
Director Identification Number:	00269965
E-Mail :	virusupadhye@gmail.com
Name :	Mr. Vijay M. Bibikar
Designation :	Director
Address :	3-B,Kalyani Apartments,106 – 107,Abirampuram,4^th Street,Abirampuram, Chennai – 600018,Tamil Nadu
Date of Birth:	14.08.1955
Date of Appointment :	10.08.1982
Director Identification Number:	00333007
E-Mail :	bibikarvm@labindia.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Shriram G. Bhalerao	4375
Mr. Shrikant S. Bapat	5625
Ms. Anjali S Bhalerao	4375
Ms. Kanchan Shrikant Bapat	5625
Mr. Vijay M. Bibikar	2500
Ms. Shubhada Vijay Bibikar	2500
Mr. Virendra S. Upadhya	3750
Mr. S G Bhalerao	4375
Ms. Asha G Bhalerao	5936
Mr. S S Bapat	3750
Mr. N V Bibikar	2500
Ms. Malatai M Bibikar	2500
Mr. V S Upadhye	1875
Ms. Sibhana S Upadhya	1875

AS ON 31.03.2007

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	The company is engaged in Designing and Manufacturing of Laboratory Equipments for Chemical Laboratories, R & D Units, Industries, etc. like Duel Ben UV-Spectrometer, Photometer, etc.
Products :	Analytical Instrument v Dissolution Test Apparatus v Auto Titrator v Karl Fisher Titrator v Visual Melting Range Apparatus v Melting Point Apparatus v Auto Stand for pH Analyzer v HPLC Column Oven v PH Meters v Ion Meters v Conductivity Meters v Histoplate v Histobath v Voltage Stabilizer
Brand Names :	“LABINDIA”.
Agencies Held :	v Applied Biosystems, U.S.A. for their complete range of biotechnology instruments v Bedenseewerk Perkin Elmer GmbH, Germany v Cannon Instruments Company, U.S.A. for their entire range of instruments Fax no. 91-22-570 1105 v Koehler & Cannon – Petroleum Testing Instrumentations v Koehler Instruments, U.S.A. for their petroleum testing equipments. v Leica Plc, Germany / Switzerland for their entire range of Microscopy and Histology Products v Orbital – Process Control Equipment v Pe Biosystems – Life Sciences Products v Perkin Elmer Inc., Los Angeles, USA v Perkin Elmer Limited, bucks, UK v PerkinElmer Instruments, U.S.A and their affiliates in UK and Germany for their entire range of analytical instruments. v Perkin-Elmer International Inc, 106, Gateway Plaza, Hiranandani Gardens, Powai, Mumbai – 400 076 v Philips N. V., Holland v Siemens AG, Germany v Solartron – Corrosion Monitoring Instruments Tel. No. 91-22-2570 1101 – 4
Imports from :	USA, UK, France, Germany, Singapore, Denmark and Holland
Terms :
Selling :	Contract (30 days) and Cash terms
Purchasing :	Contract (30 days), Cash and L/C terms

GENERAL INFORMATION

Suppliers :	v Perkin Elmer Corporation, Los Angeles, USA v BPL India Limited, Bangalore, Karnataka v Siemens India Limited
Customers :	Its’ major customers include hospitals, wholesalers and retailers. Some of its’ major customers include the following : v Glaxo Laboratories Limited, Mumbai v Bhabha Atomic Research Centre, Mumbai v Bharat Laboratories, Mumbai
No. of Employees :	400
Bankers :	v Indian Bank, Mulund West Branch, Mumbai - 400 080 v Bank of India, Panchpakhadi Branch, Vandana House, Bombay-Agra Raod, Near Vandana Cinema, Thane – 400 602 v New India Cooperative Bank Limited, Ghatkopar (East) Branch, Mumbai – 400077

Banking Relations :	Good
Auditors :
Name :	Yeravdekar and Ranade Chartered Accountants
Address :	96/16,Navi Peth,Rajendra Nagar,Near Sachin Tendulkar Jogging Track,Pune – 411030,Maharashtra,India. 1018, Shukrawar Peth, Tilak Road, Swargate Corner, Pune – 411 002, Maharashtra
Tel. No.:	91-20-24446429
Memberships :	Indo German Chamber of Commerce, Mumbai
Associates/Subsidiaries :	v Labindia Services Private Limited v Involved in offering service by way of service contracts for analytical instruments and microscopy products. v Lab-Tech Engineers Private Limited, Mumbai

CAPITAL STRUCTURE

AS ON 31.03.2007

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs. 10/- Each	Rs.0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs. 10/- Each	Rs.0.500 Million

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		0.500	0.500	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		514.620	379.565	305.929
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		515.120	380.065	306.429
LOAN FUNDS
1] Secured Loans		24.694	55.200	51.225
2] Unsecured Loans		7.922	10.579	7.001
TOTAL BORROWING		32.616	65.779	58.226
DEFERRED TAX LIABILITIES		4.350	3.570	5.431
TOTAL		552.086	449.414	370.086
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		142.168	188.450	172.686
Capital work-in-progress		7.088	0.000	0.000
INVESTMENT		45.514	17.783	14.960
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	57.777	43.078	24.419
	Sundry Debtors	155.484	128.256	123.496
	Cash & Bank Balances	171.322	99.913	53.809
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	382.642	257.155	180.943
Total Current Assets		767.225	528.402	382.667
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	172.841	120.867	88.085
	Provisions	237.068	164.354	112.142
Total Current Liabilities		409.909	285.221	200.227
Net Current Assets		357.316	243.181	182.440
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		552.086	449.414	370.086

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006
Sales Turnover		824.806	572.722
Other Income		0.000	0.000
Total Income		824.806	572.722
Profit/(Loss) Before Tax		239.410	131.828
Provision for Taxation		0.000	0.000
Profit/(Loss) After Tax		239.410	131.828
Export Turnover		2.357	0.671
Expenditures :
	Interest	3.695	0.000
	Depreciation & Amortization	27.575	29.255
	Other Expenditure	554.126	411.638
Total Expenditure		585.396	440.893

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	29.02	23.01	-
Net Profit Margin (PBT/Sales)	(%)	29.02	23.01	-
Return on Total Assets (PBT/Total Assets}	(%)	24.88	17.94	-
Return on Investment (ROI) (PBT/Networth)		0.46	0.34	-
Debt Equity Ratio (Total Liability/Networth)		0.85	0.92	0.84
Current Ratio (Current Asset/Current Liability)		1.87	1.85	1.91

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Subject was founded and promoted in 1982 by a group of visionary technocrats, engineers and professionals who foresaw the need for high-quality analytical instrumentation in India. The founders have since grown the company into a highly successful manufacturing, sales, marketing, service and support organization that is recognized all over India as a key supplier of these products for a variety of verticals including biotechnology and life sciences, petroleum testing, material science, scientific imaging etc.

Since 1995 Labindia has also been manufacturing dissolution apparatus, pH meters, conductivity meters, vial fillers, Karl Fischer titrators etc. which are widely used in the pharmaceutical and biotechnology industries.

2005 - Research activities in molecular biology

2004 -Labindia Technical Center opened in Gurgaon

2001 - Awarded Agency for Leica MEL Products

2000 -Started Genetic Analysis Laboratory in New Delhi

1999 - Awarded agency for Leica Microsystems

1998 -Started Technical Center in Mumbai

1997 - Awarded Export Contract

1995 - Awarded agency for Applied Biosystems

1995 - Started Manufacturing Activities

1992 - Awarded agency for Koehler and Cannon

1982 -Labindia was established as a service oriented organization with 20 employees

Board of Directors

Subject was founded and promoted in 1981 by a group of committed and visionary technocrats, engineers and professionals who foresaw the need for high-quality analytical instrumentation in India. The founders have since grown the company into a highly successful manufacturing, sales, marketing, service and support organization that is recognized all over India as a key supplier of these products for a variety of verticals including biotechnology and life sciences, petroleum testing, material science, nanotechnology etc.

The activities are controlled by a Board of Directors (BOD). The BOD includes all the founding members of Labindia

FORM 8

Name of the company	LABINDIA INSTRUMENTS PRIVATE LIMITED
Presented By	Bank of India, Panchpakkadi Branch, Thane (West), Mumbai
1) Date and description of instrument creating the change	Memorandum of Entry/ oral assent of flats dated 25.11.2003
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 2.500 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	Equitable mortgage by deposited of title deeds of company immovable properties comprising office No. 606 and 607, situated at germany plaza,
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of interest 1.25% over the boiptler minimum 12.75% or such as may be to them by the bank from time to time
5) Name and Address and description of the person entitled to the charge.	Bank of India, Panchpakkadi Branch, Thane (West), Mumbai
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable
Name of the company	LABINDIA INSTRUMENTS PRIVATE LIMITED
Presented By	New India Cooperative Bank Limited, Ghatkopar (East) Branch, Mumbai – 400077
1) Date and description of instrument creating the change	Deed of hypothecation dated 30.06.2004
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 52.432 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 that tangible movable property such as medical equipment and software more particularly described in the schedule attached alongwith agreement of the borrower
4) Gist of the terms and conditions and extent and operation of the charge.	To secure due repayment of medium term loan facility granted be the bank to the borrower Repayment by way of 60 monthly instalment of Rs. 1.288 Millions each commencing from 01.02.2005 and ending on or before 1-7-2009 Rate of Interest – 10.50% or at such other rates as may be fixed by the bank from time to time Margin – 20%
5) Name and Address and description of the person entitled to the charge.	New India Cooperative Bank Limited, Ghatkopar (East) Branch, Mumbai – 400077
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable
Name of the company	LABINDIA INSTRUMENTS PRIVATE LIMITED
Presented By	New India Cooperative Bank Limited, Ghatkopar (East) Branch, Mumbai – 400077
1) Date and description of instrument creating the change	Deed of hypothecation dated 30.06.2004
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 52.432 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 that tangible movable property such as medical equipment and software more particularly described in the schedule attached alongwith agreement of the borrower
4) Gist of the terms and conditions and extent and operation of the charge.	To secure due repayment of medium term loan facility granted be the bank to the borrower Repayment by way of 60 monthly instalment of Rs. 1.288 Millions each commencing from 01.02.2005 and ending on or before 1-7-2009 Rate of Interest – 10.50% or at such other rates as may be fixed by the bank from time to time Margin – 20%
5) Name and Address and description of the person entitled to the charge.	New India Cooperative Bank Limited, Ghatkopar (East) Branch, Mumbai – 400077
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable

This form is for	Modification of charge
Charge identification number of the modified	80034694
Corporate identity number of the company	U33125MH1982PTC027977
Name of the company	LABINDIA INSTRUMENTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	34/38 ,Bharat Kunj Society II ,Erandavana,Pune -411004,Maharashtra,India.
Type of charge	Immovable Property
Particular of charge holder	New India Co-Operative Bank Limited. V.C.Gurukul High School,Derasar Lane, Ghatkopar (east),Mumbai –400077, Maharashtra, India.
Nature of description of the instrument creating or modifying the charge	1) No instrument was executed.However the equitable Mortgage has been extended over the immoveable property (plot No.EL-72,Village Mahape,Electric Zone,TTC Industrial Area,Thane Belapur Road,New Bombay) 2) No instrument was executed.However the equitable Mortgage has been extended over the immoveable property (phase-II,Plot No.372,Udyog Vihar, Gurgaon of Haryana State Industrial Development Corporation Limited) (Both these documents together constitute a single modification)
Date of instrument Creating the charge	10.01.2008
Amount secured by the charge	Rs.155.400 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As may be decided, from time to time,by the bank. Margin As may be decided, from time to time,by the bank. Extent and operation of the charge To secure the due repayment of credit facilities of aggregating Rs.155.400 Millions granted by the bank to the company.
Short particulars of the property charged	All that piece and parcel of land known as plot No.EL-72,in the Trance Thane Creek Industrial Area,within the Village limits of Mahape and within limits of Navi Mumbai Municipal Corporation , District Thane, Adm.1000 Sq.mtrs. Belonging to the company. All that piece and parcel of land being situated at Phase II,Udyog Vihar, Gurgaon of Haryana State Industrial Development Corporation Limited and more particulary lying being and situated on plot No.372,Adm.1000 sq.mtrs.,belonging to the company.
Date of latest modification prior to the present modification	11.06.2007
Particulars of the present modification	By this modification,the immoveable properties as mentioned in the clause No.14,herein above shall now further hold good to secure the due repayment of credit facilities of aggregating Rs.155.400 Millions (Enhanced from Rs.60.900 Millions to Rs.155.400 Millions) on account of additional credit facility of Rs.94.500 Millions granted by the Bank to the Company.Therefore, the overall charge now stands at Rs.155.400 Millions.

Fixed Assets

v Leasehold Land

v Factory Building

v Premises

v Plant and Machinery

v Office Equipment

v Furniture and Fixture

v Vehicles

PRESS RELEASE

CCMB Invests in the SOLiD™ System, the World's Premier High-Throughput Sequencing Platform from Applied Biosystems

Dr. Lalji Singh, Director - CCMB, Hyderabad and his scientific group recently made the decision to purchase

SOLiD System! CCMB plans to use the SOLiD system primarily for applications like Whole Genome Sequencing,

Targeted Resequencing and ChIP analysis. CCMB also has a keen desire to leverage the capabilities of the SOLiD platform for miRNA discovery and Gene Expression studies which will be explored by other research groups in CCMB working in these areas.Setting the standard in next-generation technology, the SOLiD™ System is the only platform to provide the accuracy, throughput and scalability required to enable exciting new applications beyond the boundaries of traditional genetic analysis. The Applied Biosystems SOLiD™ System sets the standard in nextgeneration sequence analysis. This technology, based on sequential ligation with dye-labeled oligonucleotides, enables massively parallel sequencing of clonally amplified DNA fragments. For a detailed article about the capabilities of the SOLiD System, please go to page 2.

Applied Biosystems Launches a New Website with Rich Scientific Content

Applied Biosystems recently launched a completely redesigned website that makes it much easier for customers to obtain information about its products and learn more about the applications enabled on AB platforms. The new look and feel of the site improves customer experience with respect to navigation and flow. The new website features rich scientific content by providing extensive information in a dedicated applications and technologies section. Ten different application areas are featured - Animal Health, Biosecurity, Stem Cell Research, Environmental Analysis, Clinical Research andToxicology, Food and Beverage Testing, Forensics, Genomics, Pharmaceutical Testing and Proteomics. The landing page for each application area provides links for an overview of the area, solutions from AB and relevant literature. The technologies sections are more productfocused with exclusive sections for DNA Sequencing, Mass Spectrometry, LIMS, PCR and Real-

Time PCR.

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.45.72
UK Pound	1	Rs.84.81
Euro	1	Rs.67.60

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	YES
--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