MIRA INFORM REPORT

Report Date :

01.08.2011

IDENTIFICATION DETAILS

Name :	MET TRADE (INDIA) LIMITED
Registered Office :	138-139, Near Petrol Pump, Main Road, Gazipur, New Delhi – 110 096
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	04.02.1997
Com. Reg. No.:	55-84906
Capital Investment / Paid-up Capital :	Rs.120.720 Millions
CIN No.: [Company Identification No.]	U27107DL1997PLC084906
TAN No.: [Tax Deduction & Collection Account No.]	DELM04703G
PAN No.: [Permanent Account No.]	AAACM8484F
Legal Form :	A closely held public limited liability company.
Line of Business :	Manufacturers and Exporter of Lead Oxide, Read Lead, Litharge and Lead Alloys.
No. of Employees:	600 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (67)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 11470068
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an well established company having good track. Financial position of the company appears to be sound. Director are reported he experienced and respectable business. Trade relations are reported as fair. Business is active. Payments are regular and as per commitments. The company can be considered good for normal business dealings under usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Suraj
Designation :	Key Executive

LOCATIONS

Registered Office :	138-139, Near Petrol Pump, Main Road, Gazipur, New Delhi – 110 096, India
Tel. No.:	91-11-47109160
E-Mail :	info@mtil.in
Website :	www.mettradeindia.com
Corporate Office :	138-139, Main Road, Ghazipur, Delhi – 110096, India
Tel. No.:	91-11-22248890-96 91-11-47109100-199
Fax No.:	91-11-22248898
E-mail :	info@guptapigments.com info@mtil.in
Factory 1 :	152 SICOP, Industrial Area, Kathua, Jammu, Jammu and Kashmir – 184 104, India
Tel. No.:	91-1922-233602
Fax No.:	91-1922-233602
Factory 2 :	Village Bheel, Akbarpur, Main G. T. Road, Dadri, Gautam Budh Nagar, Uttar Pradesh, India
Tel. No.:	91-120-2662207 / 2051094
Fax No.:	91-120-2662207
Factory 3 :	Khasara No. 19/1, 12/3, 12/4, Village Nathupur, Soniput – 131 029, Haryana, India
Tel. No.:	91-130-2219199
Factory 4 :	Gupta Pigments and Chemicals Private Limited, Village Chithera, G. T. Road, Dadri, Uttar Pradesh, India
Tel. No.:	91-120-2662207/2051094

DIRECTORS

AS ON 28.09.2010

Name :	Mr. Raman Gupta
Designation :	Director
Address :	F-73, Preet Vihar, Delhi – 110 092, Delhi, India
Date of Birth/Age :	29.12.1959
Date of Appointment :	04.02.1997
Name :	Mr. Anil Agrawal
Designation :	Whole Time Director
Address :	C-51, Sector – 26, Noida – 201 301, Uttar Pradesh, India
Date of Birth/Age :	08.08.1957
Date of Appointment :	01.08.2007
Name :	Mr. Ankur Singh
Designation :	Director
Address :	A -603 Mod, Apartment, Vasundhra Enclave, Delhi-110096, India
Date of Birth/Age :	12.11.1971
Date of Appointment :	17.07.2009
Name :	Mr. Rajpal Agnihotri
Designation :	Director
Address :	138, Main Road, Ghazipur, -110096, Delhi, India
Date of Birth/Age :	12.10.1964
Date of Appointment :	04.12.2008
Date of cessation :	30.09.2009
Name :	Subhash Chand Tandon
Designation :	Director
Address :	62, Arya Nagar, Sitapur – 261001, Uttar Pradesh, India
Date of Birth/Age :	25.01.1946
Date of Appointment :	01.03.2010

KEY EXECUTIVES

Name :	Ms. Pratibha Sharma
Designation :	Secretary
Address :	90, Shiv Mandir Marg, West Babarpur, Sharda, Delhi – 110032, Delhi, India
Date of Birth/Age :	07.04.1982
Date of Appointment :	23.11.2009
Name :	Ms. Sunita Sharma
Designation :	Secretary
Address :	303-A, Guru Ram Dass Nagar, Laxmi Nagar – 110092, Delhi, India
Date of Birth/Age :	02.08.1974
Date of Appointment :	31.08.2009

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2010

Names of Shareholders	No. of Shares
Raman Gupta	94668150
Raman Gupta (HUF)	6000000
Pasa Investment and Leasing Private Limited	2700000
Mr. Raman Gupta – Trustee of Mahajan Family Welfare Trust	60000
Mr. Raman Gupta – Trustee of Amar Devi Family Welfare Trust	5025000
Met Trade (Global) Limited	10299000
Gupta Pigments Private Limited	1558790
Mrs. Shreya Gupta	409500
Total	120720440

Equity shares Breakup (percentage of total equity) (AS ON 28.09.2010):-

Category	Percentage
Bodies corporate	12.06
Directors or relatives of Director	83.73
Others	4.21
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporter of Lead Oxide, Read Lead, Litharge and Lead Alloys.

Products :

ITC Code	Product Description
78011000 and 78019930	Lead and Lead Alloys
80012000 and 80011090	Tin and Tin Alloys
3391	Lead and Lead Alloys / Tin and Tin Alloys
3890	Silver Bullion

· Tin/Tin Alloys

· Solder Alloys

· Special Alloys

· Silver/Silver Alloys

· Copper/Copper Alloys

· Bi-Metal Contacts

· Lead: - Pure Lead, Lead Alloys, Lead Oxides, etc.

· Aluminium:- Aluminium Extrusions, Aluminium Alloys, etc.

Exports :
Products :	Lead
Countries :	Japan Thailand
Imports :
Products :	Raw Material, Machinery
Countries :	China UK USA
Terms :
Selling :	L/C
Purchasing :	L/C

GENERAL INFORMATION

No. of Employees :

600 (Approximately)

Bankers :

Bank of Nova Scotia, Dr. Gopal Das Bhawan, 28, Barakhamba Road, New Delhi - 110001, Delhi, India

Facilities :

Secured Loans	31.03.2010 (Rs In Millions )	31.03.2009 (Rs In Millions )
ICICI Bank Limited
Open Cash Credit	(35.802)	133.606
Standard Chartered Bank
Open Cash Credit	219.451	(67.001)
Term Loan	358.166	185.000
IDBI Limited
Open Cash Credit	240.385	449.557
HSBC Bank Limited	495.000	--
Open Cash Credit	15.291	600.424
Term Loan	167.076	43.486
Yes Bank Limited
Open Cash Credit Facility – Metal Extrusions	-- 20.824	97.673
Open Cash Credit		226.947
Kotak Mahindra Bank Limited
Open Cash Credit	103.708	4.219
Working Capital Demand Loan	--	110.000
HDFC Bank Limited
Open Cash Credit	(14.412)	32.763
Working capital Demand Loan	140.000	0.986
ABN Amro Bank
Open Cash Credit	3.016	1.401
Citi Bank
Open Cash Credit	(21.219)	136.967
Barclays Bank
Working Capital Demand Loan	2.500	38.000
S.B.I.
Open Cash Credit	405.843	350.020
Term Loan	549.043	0.000
Total (A)	2017.174	2344.053
Short term Loans
Buyers Credit Facility
ICICI Bank	369.581	83.450
HSBC Bank	375.612	--
Yes Bank	91.359	--
Standard Chartered Bank	223.092	221.256
Kotak Mahindra Bank	--	33.963
ABN-Amro Bank	--	158.692
Citi Bank	44.406	65.650
IDBI Bank	236.927	199.413
Barclay’s Bank	--	104.377
HDFC Buyer’s Credit	--	114.355
Total (B)	1340.965	981.159
Bills Under Discounting		83.199
Vehicle Under Hypothecation	0.299	0.129
Letter of Credit – S.B.I.	--	123.584
Packing Credit Foreign Currency	1635.968	140.034
Letter of Credit - ICICI	--	28.277
Total (C)	1855.876	375.224
Total (A+B+C)	5914.017	3700.437

Secured by ; First pari-passu charge on entire current assets of the company, pari passu Equitable Mortgage (EM) first charge on entire moveable fixed assets of the company, pari passu EM on land and Buildings of the works of the company at Kathua, J and K ans personal guarantee by Directors Mr. Raman Gupta and Mrs. Kiran Gupta.

Amount due against short term loan represents the amount due for payment within six months.

Unsecured Loan	31.03.2010 (Rs In Millions)	31.03.2009 (Rs In Millions)
Loan From Directors	--	0.881
M/s. Raman Gupta HUF	--	2.698
Total	--	3.580

Banking Relations :

--

Auditors :

Name :

Daver Sikri and Company

Chartered Accountants

Address :

4222/1, Luxmi Kunj, Ansari Road, Darya Ganj, New Delhi – 110002, Delhi, India

Tel No.:

91-11-41563004

Subsidiary :

Shrey Industries Limited

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
250000000	Equity Shares	Rs.1/- each	Rs.250.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
120720440	Equity Shares	Rs.1/- each	Rs.120.720 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		120.720	117.250	117.251
2] Share Application Money		65.349	80.398	30.399
3] Reserves & Surplus		2681.446	2284.033	1875.175
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2867.515	2481.681	2022.825
LOAN FUNDS
1] Secured Loans		5914.017	3700.437	1889.762
2] Unsecured Loans		0.000	3.580	0.000
TOTAL BORROWING		5914.017	3704.017	1889.762
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		8781.532	6185.698	3912.587
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1746.828	437.659	250.580
Capital work-in-progress		1058.793	762.791	258.157
INVESTMENT		425.599	360.058	485.083
DEFERREX TAX ASSETS		0.658	14.815	35.200
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1770.636	2145.635	1068.380
	Sundry Debtors	2876.839	1810.839	1413.652
	Cash & Bank Balances	63.625	37.439	49.533
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1444.860	952.957	583.133
Total Current Assets		6155.960	4946.870	3114.698
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	333.890	137.549
	Other Current Liabilities	95.600	115.570	82.889
	Provisions	176.816	83.376	148.299
Total Current Liabilities		606.306	336.495	231.188
Net Current Assets		5549.654	4610.375	2883.510
MISCELLANEOUS EXPENSES		0.000	0.000	0.057
TOTAL		8781.532	6185.698	3912.587

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	8550.874	7272.693	7303.869
		Other Income	53.800	129.230	26.274
		TOTAL (A)	8604.674	7401.923	7330.143
Less	EXPENSES
		Manufacturing Expenses	6701.224	5543.208	5704.847
		Administrative Expenses	595.908	121.382	95.972
		Selling and Distribution Expenses	79.602	58.972	48.386
		Excise Duty	205.117	544.992	8.078
		Exchange Rate Fluctuation	0.000	315.322	0.000
		TOTAL (B)	7581.851	6583.876	5857.283
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1022.823	818.047	1472.860
Less	FINANCIAL EXPENSES (D)		468.427	238.534	132.489
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		554.396	579.513	1340.371
Less/ Add	DEPRECIATION/ AMORTISATION (F)		127.483	51.654	188.368
	PROFIT BEFORE TAX (E-F) (G)		426.913	527.859	1152.003
Less	TAX (I)		95.430	102.511	89.174
	PROFIT AFTER TAX (G-I) (J)		331.483	425.348	1062.829
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2195.739	1786.881	724.052
	BALANCE CARRIED TO THE B/S		2527.222	2212.229	1786.881
	Earnings Per Share (Rs.)		2.75	3.62	9.06

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.85	5.74	14.50
Net Profit Margin (PBT/Sales)	(%)	4.99	7.25	15.77
Return on Total Assets (PBT/Total Assets}	(%)	5.40	8.58	34.23
Return on Investment (ROI) (PBT/Networth)		0.15	0.21	0.57
Debt Equity Ratio (Total Liability/Networth)		2.27	1.62	1.05
Current Ratio (Current Asset/Current Liability)		10.15	14.70	13.47

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE

The company in this financial year achieved a pre estimated milestone. New customers added and new ventures started in India or outside India. As the Lead, Lead alloy and Lead oxides are considered to be back bone of modern Lead Acid Storage batteries used in automotive, inverters, railways and other industries. With growing demand of batteries for different applications in most vigorous conditions, demand for specialized and more pure quality of Lead, Lead Alloy and Lead Oxides are growing. The company is meeting the demand by increasing its production capacities and by bringing new ventures. The company has been market leader in its product range and due to continuous improvements the Battery manufacturers have invariably opted to use our company’s lead and lead alloys as their preferred choice.

For the year under review, the gross turnover of the company has shown substantial increase over the previous year and the directors are confident of the same in the coming years.

OPERATIONAL EXCELLENCE

The company believes that in order to ensure the customers’ loyalty to the company, a continuing thrust on quality is essential. In keeping with this motto, the company has ISO 9001:2000 certification from International Certification Registry Limited. The company has exhaustive quality management service system at its plant. As part of the company’s core values of responsible corporate citizenship, the company is committed to preserve the environment and prevent pollution.

Form No. 8

Name of the company	MET TRADE INDIA LIMITED
Presented By	IDBI Limited
1) Date and description of instrument creating the change	Agreement of Hypothecation of Goods and Assets dated 03.09.2005.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.180.000 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 current assets and book debts and entire fixed assets of the company (other than land and building)
4) Gist of the terms and conditions and extent and operation of the charge.	· The Charge is to secure Cash Credit / Letter of Credit of Rs.150.000 millions with Sub Limit of Rs.150.000 millions and Forward Cover of Rs.30.000 millions making the Overall Limit as 180.000 millions. · Other terms and conditions as per sanction letter nos. IDBIBK/ND/519 Dated 23.07.2005 IDBIBK/ND/520 Dated 23.07.2005 IDBIBK/ND/521 Dated 23.07.2005 IDBIBK/ND/522 Dated 23.07.2005
5) Name and Address and description of the person entitled to the charge.	Industrial Development Bank of India Limited 11^th Floor, Surya Kiran Building, 19, K G Marg, New Delhi, India

Corporate identity number of the company	U27107DL1997PLC084906
Name of the company	MET TRADE INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	138-139, Main Road, Gazipur, New Delhi – 110 096, Delhi, India
This form is for	Creation of charge
Type of charge	· Immovable property · Others o Equitable Mortgage on Land and Building
Particular of charge holder	The Hongkong and Shanghai Banking Corporation Limited Birla House, 25 Barakhamba Road, New Delhi – 110 001, India
Nature of instrument creating charge	No instrument was executed, Memorandum of Entry dated 11 June 2009 from Standard Chartered Bank evidencing creation of equitable mortgage over immovable properties situated at Village Bilakbarpur, Pargana and Tehsil Dadri at Jila Guatam Budh Nagar, UP by deposit of title deeds with the Bank.
Date of instrument Creating the charge	11.06.2009
Amount secured by the charge	Rs.230.000 millions
Brief of the principal terms an 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 repayment In consideration of Term Loan facilities sanctioned / to be sanctioned by the Bank to the Company, the company has hypothecated and charged to the bank by way of first pari passu charge as a continuing security, the charge by way of equitable mortgage on immovable properties mentioned in the Memorandum of Entry to secure the repayments of the advances together with interest cost and all other charges · Margin The company shall remain 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 fulfill its obligation, the bank shall be entitled to take possession of the immovable properties and sell them by public auction or private contract and utilize the proceeds in full or part settlement of its claims.
Particulars of the property charged	Property at Khasra No. 239, 242 and 285, Village Bilakbarpur, Pargana and Tehsil Dadri, Jila Gautam Budh Nagar, UP (more particularly described in Memorandum of Entry dated 11 Jun 09), together with all the buildings and structures constructed or to be constructed thereon, fixed plant and machinery attached to the earth permanently fastened to anything attached to the earth, Fixtures and fittings erected / installed or to be erected / installed thereon and every part thereof, both present and future.

Corporate identity number of the company	U27107DL1997PLC084906
Name of the company	MET TRADE INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	138-139, Main Road, Gazipur, New Delhi – 110 096, Delhi, India
This form is for	Modification of charge
Type of charge	Book Debts Immovable Property Movable Property Floating Charge Others
Particular of charge holder	IDBI BANK LIMITED
Nature of instrument creating charge	Amended Supplemental Deed of Hypothecation executed by the company dated 02.05.2011, whereby sums aggregating Rs.130.000 Millions (LCBD-Rs.100.000Millions and LER-Rs.30.000 Millions) out of working capital facilities aggregating Rs.830.000 Millions have been released/taken out from the purview of security created earlier. Hence, the security available shall be for working capital facilities of Rs.700.000 Millions only.
Date of instrument Creating the charge	02.05.2011
Amount secured by the charge	Rs.700.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Extent and Operation of the charge First pari-passu charge on the entire current assets including book debts of the company both present and future. First pari-passu charge on the entire moveable fixed assets of the company both present and future.
Short particulars of the property charged	First pari-passu charge on the entire current assets including book debts of the company both present and future. First pari-passu charge on the entire moveable fixed assets of the company both present and future. (1) Property bearing Khasra No.12, gata No. 244, containing by admeasurement an area of 0.4393 Hectare, situated at village Beel Akbarpur, Tehsil Dadri, District Ghaziabad, Uttar Pradesh. (2) Property bearing Khasra No.12, gata No. 243, containing by admeasurement an area of 0.4823 Hectare, situated at village Beel Akbarpur, Pargana and Tehsil Dadri, District Ghaziabad, Uttar Pradesh. (3) Property bearing Khasra No.67, Khasra No. 246,containing by admeasurement an area of 0.4710 Hectare, situated at village Beel Akbarpur, Pargana and Tehsil Dadri, District Ghaziabad, Uttar Pradesh. (4) Plot No. 152, SICOP Industrial Complex, Kathua, JandK.
Particulars of the present modification	By the present modification Amended Supplemental Deed of Hypothecation has been executed by the company dated 02.05.2011, whereby sums aggregating Rs.130.000 Millions (LCBD-Rs.100.000 Millions and LER-Rs.30.000 Millions) out of working capital facilities aggregating Rs.830.000 Millions have been released/taken out from the purview of security created earlier. Hence, the security available shall be for working capital facilities of Rs.700.000 Millions only. Other terms and conditions shall remain unchanged.

FIXED ASSETS:

• Land
• Building
• Plant and Machinery
• Pollution Control Equipments
• Weighing Machine
• D. Generator Set
• Electrical Fittings
• Dies and Tools
• Forklift Truck
• Computer and Printing
• Furniture and Fitting
• Laboratories Equipment
• Fuel Efficient Burner
• Material Handling Equipments
• Oil Tanker
• Metal Detector
• Vehicles
• Office Equipments
• Truck
• Diesel Tank
• ERP Software
• Factory Equipment
• Air Conditioner
• Capital WIP

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. 44.15
UK Pound	1	Rs. 72.10
Euro	1	Rs. 63.10

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	----
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		67

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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.