MIRA INFORM REPORT

Report Date :

25.09.2008

IDENTIFICATION DETAILS

Name :	PREET AGRO INDUSTRIES PRIVATE LIMITED
Registered Office :	Patiala Road, Nabha, Patiala -147201, Punjab
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	14.08.1997
Com. Reg. No.:	16-020361
CIN No.: [Company Identification No.]	U24219PB1997PTC020361
TAN No.: [Tax Deduction & Collection Account No.]	PTLP10012C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Agriculture Implements, Combine Harvests, Earth Moving Machinery Parts and Other Agriculture Equipments.

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 150000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade term and conditions

LOCATIONS

Registered Office :	Patiala Road, Nabha, Patiala -147201, Punjab, India
Tel. No.:	91-1765-220400 / 222609 / 229800
Fax No.:	91 - 1765 – 221619
E-Mail :	sales@preetagro.com preetagro@sancharnet.in preetagro@glide.net.in goyalbsnba@yahoo.com
Website :	www.preetagro.com www.preettractors.com www.preetcombines.com
Head Office:	Post Box No.29, Patiala Road, Nabha – 147 201, Punjab, India
Tel. No.:	91-1765-220400 / 222609 / 229800
Fax No.:	91-1765-221619
E-Mail :	sales@preetagro.com preetagro@sancharnet.in
Website :	www.preetagro.com www.preettractors.com www.preetcombines.com
Factory :	Purani Anaj Mandi, Patiala Road, Nabha-141010, District Patiala, Punjab, India

DIRECTORS

Name :	Mr. Hari Singh
Designation :	Director
Address :	Preet Niwas, Kaushal Vihar Colony, Back Side Grid, Cantt. Road. Nabha – 147201, Punjab, India
Date of Birth/Age :	24.01.1957
Date of Appointment :	14.08.1997
Name :	Mr. S. Gurcharan Singh
Designation :	Director
Address :	Preet Niwas, Kaushal Vihar Colony, Back Side Grid, Cantt. Road. Nabha – 147201, Punjab, India
Date of Birth/Age :	12.08.1965
Date of Appointment :	14.08.1997
Name :	Mr. S. Sarabjit Singh
Designation :	Director
Address :	Preet Niwas, Kaushal Vihar Colony, Back Side Grid, Cantt. Road. Nabha – 147201, Punjab, India
Date of Birth/Age :	20.12.1973
Date of Appointment :	29.10.2001
Name :	Mrs. Manjit Kaur
Designation :	Director
Address :	Preet Niwas, Kaushal Vihar Colony, Back Side Grid, Cantt. Road. Nabha – 147201, Punjab, India
Date of Birth/Age :	15.01.1961
Date of Appointment :	19.04.2002
Name :	Mr. S Gurpreet Singh
Designation :	Additional Director
Address :	Preet Niwas, Kaushal Vihar Colony, Back Side Grid, Cantt. Road. Nabha – 147201, Punjab, India
Date of Birth/Age :	06.05.1983
Date of Appointment :	01.07.2005

KEY EXECUTIVES

Name :	Mrs. Sunita Lall
Designation :	Company Secretary
Address :	# 3110, Sector, 47-D, Chandigarh, Punjab, India

MAJOR SHAREHOLDERS

Names of Shareholders		No. of Shares
Mr. S. Hari Singh		1100
Mr. S. Gurcharan Singh		1200
Mr. S. Ram Murti		1200
Mr. Bhagwan Kaur		3000
Mr. Sinderpal Kaur		2500
Mrs. Manjit Kaur		3000
Mr. Sinderpal Kaur		2000
Mr. Paramjit Singh		1500
Mr. Sarabhit Singh		2000
Mr. Bhagwan Singh		3000
Mr. Joginder Singh		4000
Mr. Labh Singh		1500
Mr. Lakhbir Singh		1000
Mr. Major Singh		3000
Mr. Pritam Singh		2000
Mr. Sukhdev Singh		1500
Mr. Sukhdev Singh		4500
Mr. Kulwnat Singh		3000
Mr. Puran Singh		2000
	Total	43000

Equity Share Breakup (Percentage of Total Equity):-

Category (As on 31.03.2007)	Percentage
Directors or relative of directors	45.00
Other top fifty (50) shareholders	55.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Agriculture Implements, Combine Harvests, Earth Moving Machinery Parts and Other Agriculture Equipments
Products :	· Preet Tractors · Preet Combines
Exports :
Products :	Combine Harvesters
Countries :	Pakistan , Sri Lanka
Imports :
Products :	Plant and Machinery, Harvester Combine Parts
Countries :	USA, China, Italy
Terms :
Selling :	L/C and Cash and Credit
Purchasing :	L/C Cash

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Harvester Combines	--	--	850 Units	400 Units P.a

GENERAL INFORMATION

Suppliers:

· Aarson Agencies

· Adarsh Steel Rolling Mills

· Agro Bearing Company

· A.K.Steels

· Anand Engineering Works

· Anupindra Automobiles

· Ashitech Engineering

· B.B.h. Auto Industries

· Binbow Auto (India )Private Limited

· Devindra Agro Industries

· Dewan G. Casts Private Limited

· Godawari Trading Company Private Limited

· Guru Nanak Oxygen Gas Depot

· H.S. Agro

· A.S.Agro Industries

· K.M. Industries

· Laksmi Precision Screws Limited

· Naveen Sales Private Limited

· Puja Iron Store

· S.R.Auto Sales

Customers :

· Gurcharan Singh

· Gurcharan Singh

· Hardev Singh

· M. Sambashiva Rao

· Randdhir Singh

· Ranjit Singh

· Sadha Singh

· Sucha East Agency Private Limited

· Karanli singh

· Lakshmi Engineering Agencies

· T. Satyanarayan

· Nirlep Singh

· Butta singh Babanpur

· Avadhesh Nath Tripathi

· Argo Consolidate Private Limited

· Preet Tractors Private Limited

· South East Farm Equipments

· Kapil Machines Tools

· Tehal Singh, Sarja

· Ved Ram Singh

· Vishal Singh, Moonak

No. of Employees :

180

Bankers :

· Canara Bank, Patiala Gate, Nabha -147 201, Punjab, India

· Centurion Bank

· Bank of Punjab Limited

· ICICI Bank Limited

Facilities :

Secured Loan	As on 31.03.2006 (In Millions)
Canara Bank	0.991
Canara Bank	0.739
ICICI Bank	0.066
Canara Bank T/L	5.179
Unsecured Loan	As on 31.03.2006 (In Millions)
From Director	3.153
From Share Holder	2.624

Banking Relations :

Satisfactory

Auditors :

Name :

B.S. Goyal and Company

(Mr. Bhim Sain Goyal)

Chartered Accountant

Address 1 :

Purani Anaj Mandi, Nabh, Punjab, India

Address 2 :

H No. 435, Nai Basti, Cinema Road, Nabha – 147 201, Punjab, India

Tel. No.:

91-1765-222916, 91-1765-225916

Fax No.:

91-1756-225916

Associates/Subsidiaries :

· Preet Tractors Private Limited

Patiala Road, Nabha (PB),

Activities: Manufacturing- Tractors

· Deep Spares Private Limited

Patiala Road, Nabha (AB)

Activities: Manufacturing –Harvester combine Parts and Agricultural Implements

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
43000	Equity Shares	Rs.100/- each	Rs.4.300 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		4.300	4.300	4.300
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		25.008	18.692	12.344
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		29.308	22.992	16.644
LOAN FUNDS
1] Secured Loans		26.437	6.976	0.743
2] Unsecured Loans		4.302	5.778	4.613
TOTAL BORROWING		30.739	12.754	5.356
DEFERRED TAX LIABILITIES		0.586	0.401	0.316
TOTAL		60.633	36.147	22.316
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		53.599	36.240	20.057
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	25.338	12.726	12.225
	Sundry Debtors	16.445	11.208	23.725
	Cash & Bank Balances	31.539	42.894	23.116
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	9.333	5.047	4.807
Total Current Assets		82.655	71.875	63.873
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	75.629	71.980	61.630
	Provisions	0.000	0.000	0.000
Total Current Liabilities		75.629	71.980	61.630
Net Current Assets		7.026	(0.105)	2.243
MISCELLANEOUS EXPENSES		0.008	0.012	0.016
TOTAL		60.633	36.147	22.316

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		262.115	274.917	224.984
Other Income		0.000	1.097	0.228
Total Income		262.115	276.014	225.212
Profit/(Loss) Before Tax		9.011	8.474	5.620
Provision for Taxation		0.000	2.013	1.233
Profit/(Loss) After Tax		9.011	6.434	4.387
Earnings in Foreign Currency :
	Export Earnings	NA	USD 61600	USD 52000
Total Earnings		NA	USD 61600	USD 52000
Imports :
	Raw Materials	NA	3.259	3.949
	Stores & Spares	NA	0.000	0.000
	Capital Goods	NA	0.000	0.436
Total Imports		NA	3.259	4.385
Expenditures :
	Cost of Goods Sold		229.041	190.120
	Material Consume and Trading Material		0.000	0.000
	Manufacturing Expenses	253.104	0.000	0.000
	Administrative Expenses		15.166	12.658
	Interest		1.222	0.976
	Depreciation & Amortization		3.541	2.680
Total Expenditure		253.104	248.970	206.434

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	3.44	2.33	1.94
Net Profit Margin (PBT/Sales)	(%)	3.44	3.08	2.94
Return on Total Assets (PBT/Total Assets}	(%)	6.61	7.83	6.69
Return on Investment (ROI) (PBT/Networth)		0.31	0.36	0.33
Debt Equity Ratio (Total Liability/Networth)		3.63	3.13	3.70
Current Ratio (Current Asset/Current Liability)		1.09	0.99	1.03

LOCAL AGENCY FURTHER INFORMATION

TRADE REFERENCEs:-

Ø Sangrur Sugar Mills, Sangrur, Punjab, India

Fixed assets:

· Land

· Building

· Plant and Machinery

· Misc. Fixed assets

· Jeeps

· Handlings and Testing Equipment

· Pump Set

· Petterns

· Tractors

· PhotoState Machine

· Water Cooler

· Tempo TATA 709

· Machine Tools

· Computer

· Generator Set

· Cars

· Cysle Scoooter and Motor Cysle

· Air Conditioners

· Furniture and Fixture

FORM 8:-

Name of the company	Preet Agro Industries Private Limited
Presented By	Mr. Gurcharan Singh (Director)
1) Date and description of instrument creating the change	19.08.1998 Cash Credit Agreement
2) Amount secured by the charge/amount owing on the securities of charge	Rs.2.350 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	Hypothecation of stocks, present and future in the name of the company
4) Gist of the terms and conditions and extent and operation of the charge.	· The Bank can inspects the assets of the company · The rate of interest will be fixed by the Bank.
5) Name and Address and description of the person entitled to the charge.	Canara Bank- Nabha
6) Date and brief description of instrument modifying the charge	Draft of Ledtd for to be used where additional limit is granted on the very security
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.	The first charge of Rs.2.350 Millions was enhanced to Rs.5.000 Millions regd. On 13.04.2000 and enhanced to Rs.7.500 Millions regd. On 18.10.2001and the same was enhanced to Rs.9.500 Millions only vide agreement date 04.06.2003. The charge of Rs.9.500 Millions enhanced to Rs.9.500 enhanced to Rs.20.000 Millions regd on 13.01.2006. The charge is further secured on the total facilities of the company up to Rs.51.500 Millions on the assets agreement dated 16.12.2005. The company provided additional guarantee of Rs.34.500 Millions on the immovable properties in favor of Preet tractors Private Limited Nabhe regd. On date 05.05.2003 and enhanced to Rs.39.500 Millions regd on 19.04.2005.

Corporate identity number of the company	U24219PB1997PTC020361
Name of the company	Preet Agro Industries Private Limited
Address of the registered office or of the principal place of business in India of the company	Patiala Road, Nabha, Dist. Patiala
This form is for	Modification of charge
Type of charge	· Movable Property · Others
Particular of charge holder	Canara Bank Patiala Gate, Nabha-147801, Punjab India E-Mail: canbankindia@yahoo.com
Nature of instrument creating charge	Supplemental Agreement
Date of instrument Creating the charge	11.09.2007
Amount secured by the charge	Rs. 2.350 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest: 13.25% p.a Term of Repayment: Repayable on Demand Margin: 25% Extent and operation of the charge: 100% of the charge Others: The Bank can inspect the assets of the Company.
Short Particulars of the property charged	Hypothecation of Stocks, Debtors, present and future in the name of the Company.
Particulars of the present modification	The first charge of Rs. 2.350 millions was enhanced to Rs. 5.000 millions regd. on 13.04.2000. Further enhanced to Rs. 7.500 millions regd. on 18.10.2001. Further enhanced to Rs. 9.500 millions vide agreement dated 04.06.2003. The charge of Rs. 9.500 millions was enhanced to Rs. 20.000 millions duly regd. on 13.01.2006. Now the amount of charge is enhanced to Rs. 25.000 millions vide agreement dated 11.09.2007.

WEBSITE DETAILS:-

Subject was founded in 1980, when the nation was needed one type of machine which could harvest and thresh the crop simultaneously to reduce the losses of farmers, Hari Singh, Managing Director was working on a machine for the same along with his tractor mechanic work. After three years, he established a small scale unit of Harvesting Reapers, Threshers, Agricultural parts. Later his brother named Gurcharan Singh, Director joined him 1985 and they made Tractor Driven Combines in 1986.

Preet Combine Harvesters harvests wheat and rice in the northern and central region of India and Pakistan. Subject track combine harvests rice in the coastal area of India. 

Subject is one of the India's leading manufacturers of agricultural tractors and combine harvesters. One in five harvester machines sold in India is produced by subject Nabha. Subject is market leader in self propelled harvesters in India. 

Subject originated from a small workshop in Mandaur village in district Patiala in 1978.The founder of Preet Mr. Hari Singh developed a small combine harvester in 1980. Later on his two brothers Mr. Gurcharan Singh and Mr. Prem Singh joined him.

Company Profile

They introduce their self as leading manufacturer of Combine harvesters with the brand name of “PREET”. M/s Subject, an ISO 9001: 2000 certified company. Subject have been in the business of manufacturing Harvester Combines since 1987 with different variants. The company has its plant situated at Nabha, District. Patiala, Punjab. The harvesting machines are utilized for harvesting Wheat, Paddy, Barley, Sunflower, etc. They have recently developed their Maize Special Combine Harvester (India’s first) giving smiles on the faces of maize growing farmers of the country. More than three thousand satisfied owners of subject combine harvesters are operating their combine harvesters in different parts of the country which makes the subject as market leader among self propelled combine harvester manufacturers. In India the annual sales of combine harvesters is approx. 1100 units. And Subject Combine is controlling 32% market share i.e. 350 units per annum.

Their product range of harvester combines is as follows:

Self-Propelled Harvester Combine model PREET- 987 with 4.2-meter size of cutter bar.

Self Propelled Harvester Combine model PREET- 987 with specially designed five-row header for harvesting maize and sunflower.

Self-Propelled Harvester Combine model PREET- 849 with 3.9 meters size of cutter bar.

Self-Propelled Harvester Combine model PREET- 949 with 3.9 meters size of cutter bar Rubber track version.

Self-Propelled Harvester Combine model PREET- 649 with 3.9 size of cutter bar.

Note: All of the above mentioned models are tested and approved by Central Farm Machinery Training and Testing Institute, Budni .

The operations of the company are in the hands of well-versed, experienced directors and technically sound executives. Subject harvesters are exported to Pakistan, Sri Lanka, Iraq and other countries like Bangladesh, Thailand, Nigeria, Kenya and Canada are showing keen interest in their entire product range.

Their sister concern M/s Preet Tractors manufactures tractors in 35-70 HP range under the brand name “PREET”.

These are low cost, fuel-efficient fitted with Trem-III engines, environment friendly tractors. The manufacturing facilities are situated at Nabha, Distt. Patiala (Pb). The Project for manufacturing agricultural Tractors is based on farmer’s agricultural requirements and the tractors are suitable for the tough Indian conditions. A batch of 21 tractors has been tested (On all the farming operation) through farmers who had the vast experience in agriculture.

The necessary improvements in the Tractors have been implement from comments / experience of these Tractors.

Engine Assy:

The company has setup its own engine plant in Nabha. The plant is fully equipped with ultra modernized HMC and VMC machines for manufacturing of engines with quality assurance. Tractors are fitted with their own In-house engines. The tractors are well accepted among farmer’s community.

Manufacturing:

After completing their research and development, the vendors and the suppliers have been selected to supply the components as per drawing and strict quality standard. The components / parts received in their plant are routed through main store. Similar exercise is done in Machine shop also before the machined components are transferred to assembly line for tractors assembly. The Tractor Assembly is done stage wise and at each stage inspection is carried out to maintain the quality. The final product as assembled tractor is tested again on dynamometer to check the ascertain P.T.O. H.P and fuel consumption before handing over the tractor to the dealer.

Marketing:

They are having very good marketing network all over India with 280 authorized dealers of tractor as well as combine harvesters. They are having 35 % Market share in Self-propelled combine harvester and 10 % of tractor mounted combine harvester. Their aim is take up 60 % of the market share. They have sold more than 3200 combine harvesters.

Infrastructure:

Subject is one of the India's leading manufacturers of agricultural tractors and combine harvesters. Subject is market leader in self propelled combine harvesters in India. They are controlling 35% market share of self-propelled combine harvesters.

Present scenario of plant: -

· Their is ISO 9001: 2000 certified company.

· Combine harvesters are manufactured on organized assembly production line.

· Plant is equipped with latest CNC turning machines for machining of components and others computerized machines i.e. shearing machines, bending press, power press, lathe, shapers and radial drill machines etc.

· Company is having one another fully computerized Turret punching machine to enhance production capacity and to maintain the quality of product.

Future Plans: -

Company has installed Laser oscillator machine from MAZAK Japan.

They will be first to install Robots for all type of welding jobs in their plant in next financial year.

Dip Painting of sheet metal will be install soon.

Presently they have manufacturing capacity of 450 units of combine harvester per annum. Soon the capacity will increase to 800-1000 unit per annum with the above said automation in plant in 2006-2007.

Awards / Achievements:

They participated in KISSAN MELA organized by Punjab Agricultural University Ludhiana in September 2003 and September 2005 with exhibition their tractors and harvester combine. In the fair all the established manufacturers and international giants participated they were adjudged the best performer and awarded the first prize by the organizing authorities.

The company has participated in International Farm Equipment Show held in Toronto Canada in Feb’06.

Mr. Ron Bollman from Government of Canada Invites “Preet Agro Industries” to setup their plant in Ontario Canada.

The company has also participated in international trade exhibitions held in Sri Lanka and South Africa.

The company has also attended the multi-trade visit, in different companies of United States of America and Canada.

Participated, adjudged the best performer and awarded the first prize in Krishi Mela 2006 held in University of Agricultural Sciences, Dharwad Karnataka.

Participated, adjudged the best performer and awarded the first prize in Agro –Industrial Exhibition 2006 held in G B Pant University of Agricultural and Technology Pantnagar (U. S. Nagar Uttaranchal).

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.45.83
UK Pound	1	Rs.84.90
Euro	1	Rs.67.26

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		45

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