MIRA INFORM REPORT

Report Date :

23.04.2012

IDENTIFICATION DETAILS

Name :	HERANBA INDUSTRIES LIMITED
Registered Office :	Plot No. 1505 GIDC, III Phase, Vapi – 396195, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	17.03.1992
Com. Reg. No.:	04-017315
Capital Investment / Paid-up Capital :	Rs.39.232 Millions
CIN No.: [Company Identification No.]	U24231GJ1992PLC017315
TAN No.: [Tax Deduction & Collection Account No.]	SRTH01177B
PAN No.: [Permanent Account No.]	AAACH3787Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of cypermethrin, Deltamethrin, Alphamethrin, Permetnrin, Temiphos, Lamdacyhalothrin, Technical DV Acid Chloride and Fungicides
No. of Employees :	350 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1430000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office/ Factory :	Plot No. 1505 GIDC, III Phase, Vapi – 396195, Gujarat, India
Tel. No.:	91-260-2429856
Fax No.:	91-260-2429856
E-Mail :	heranba@vsnl.com rahul@heranba.com
Website :	http://www.heranba.co.in
Location :	Owned
Head Office :	101/ 102, Kanchanganga, Factory Lane, Borivali (West), Mumbai-400092, Maharashtra, India
Tel. No.:	91-22-28982133/ 44/ 23987912/ 14/ 28984439
Fax No.:	91-22-28338445/8993948
E-Mail :	heranba@bom4.vsnl.net.in
Marketing Office :	201/ 202, Dwarkesh, Above Tribhuvandas Bhimji Jhaveri, L.T. Road, Borivali (West), Mumabi-400092, Maharashtra, India
Tel. No.:	91-22-28980680/ 28338443/ 44
Fax No.:	91-22-28338445
Branch Offices :	Located at : · Delhi · Haryana · Punjab · Lucknow · Uttarkhand · Rajasthan · Jaipur · Karnataka · Chennai · Hyderabad · Ahmedabad · Maharashtra · Indore · Orissa · Kolkata · Bihar

DIRECTORS

As on 16.08.2011

Name :

Mr. Sadashiv Pakeera Shetty

Designation :

Managing Director

Address :

18/A, Tower "D', Viceory, Park, Opposite Thakur Cinema, Thakur Village, Kandivali (East), Mumbai-400101, Maharashtra, India

Date of Birth/Age :

13.06.1954

Qualification :

Graduate

Date of Appointment :

29.09.1994

DIN No.:

00038681

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24231GJ1992PLC017315	HERANBA INDUSTRIES LIMITED	Managing director	1/09/2006	29/09/1994	-	Active	NO
2	U24110MH1994PLC082301	SAMS INDUSTRIES LIMITED	Director	24/10/1994	24/10/1994	-	Active	NO
3	U24116GJ1995PLC024430	SHAKTI BIO SCIENCE LIMITED	Managing director	1/01/2007	26/10/2005	-	Active	NO
4	U24240MH2011PLC217567	HERANBA CROP CARE LIMITED	Director	16/05/2011	16/05/2011	-	Active	NO
5	U24100GJ2012PLC068909	HERANBA AGRO SCIENCE LIMITED	Director	7/02/2012	7/02/2012	-	Active	NO

Name :

Mr. Raghuram Pakeera Sheety

Designation :

Whole-Time Director

Address :

1601/B,Shantivan, Devidas Lane, Near Club Aquria, Eksar Village, Borivali (West), Mumbai-400013, Maharashtra, India

Date of Birth/Age :

25.03.1959

Qualification :

Graduate

Date of Appointment :

29.09.1994

DIN No.:

00038703

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24231GJ1992PLC017315	HERANBA INDUSTRIES LIMITED	Whole-time director	1/09/2006	29/09/1994	-	Active	NO
2	U24110MH1994PLC082301	SAMS INDUSTRIES LIMITED	Director	24/10/1994	24/10/1994	-	Active	NO
3	U24240MH2011PLC217567	HERANBA CROP CARE LIMITED	Director	16/05/2011	16/05/2011	-	Active	NO
4	U24100GJ2012PLC068909	HERANBA AGRO SCIENCE LIMITED	Managing director	7/02/2012	7/02/2012	-	Active	NO

Name :

Mr. Sujata Sadashiv Shetty

Designation :

Director

Address :

18/ A, Tower 'D', Viceroy Park, Thakur Cinema,, Thakur Village, Kandivali(West), Mumbai-400101, Maharashtra, India

Date of Birth/Age :

08.05.1960

Qualification :

Graduate

Date of Appointment :

27.12.2001

DIN No.:

00632563

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24110MH1994PLC082301	SAMS INDUSTRIES LIMITED	Director	29/09/2001	29/09/2001	-	Active	NO
2	U24231GJ1992PLC017315	HERANBA INDUSTRIES LIMITED	Director	27/12/2001	27/12/2001	-	Active	NO
3	U24116GJ1995PLC024430	SHAKTI BIO SCIENCE LIMITED	Whole-time director	1/01/2007	26/10/2005	-	Active	NO
4	U24240MH2011PLC217567	HERANBA CROP CARE LIMITED	Director	16/05/2011	16/05/2011	-	Active	NO
5	U24100GJ2012PLC068909	HERANBA AGRO SCIENCE LIMITED	Director	7/02/2012	7/02/2012	-	Active	NO

Name :

Mr. Jiten Zaverchand Gala

Designation :

Director

Address :

25-2502, M.H. No. 9-21, Pancharatna Building, Mama Parmanand Road, Mumbai-400025, Maharashtra, India

Date of Birth/Age :

15.11.1969

Qualification :

Graduate

Date of Appointment :

12.07.2007

DIN No.:

00654647

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U70100MH1996PTC097074	SHREE PRITHVI ESTATES (INDIA) PRIVATE LIMITED	Director	8/02/1996	8/02/1996	-	Active	NO
2	U55204GJ2004PTC043775	ADITYA CATERERS PRIVATE LIMITED	Director	11/03/2004	11/03/2004	-	Active	NO
3	U24231GJ1992PLC017315	HERANBA INDUSTRIES LIMITED	Director	29/09/2007	12/07/2007	-	Active	NO

Name :

Ms. Priti Jiten Gala

Designation :

Director

Address :

2505, Pancharatna Building, Opera House, Mumbai-400004, Maharashtra, India

Date of Birth/Age :

18.05.1970

Qualification :

Under Graduate

Date of Appointment :

12.07.2007

DIN No.:

02101935

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24231GJ1992PLC017315	HERANBA INDUSTRIES LIMITED	Director	29/09/2007	12/07/2007	-	Active	NO

Name :

Ms. Vanita Raghuram Shetty

Designation :

Director

Address :

1601, 16th Floor, Shantivan, Near Aquaria Club, Eksar Road, Devidas Lane, Borivali (West), Mumbai-400103,Maharashtra, India

Date of Birth/Age :

14.11.1969

Qualification :

Graduate

Date of Appointment :

27.12.2001

DIN No.:

02493401

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24231GJ1992PLC017315	HERANBA INDUSTRIES LIMITED	Director	27/12/2001	27/12/2001	-	Active	NO
2	U24240MH2011PLC217567	HERANBA CROP CARE LIMITED	Director	16/05/2011	16/05/2011	-	Active	NO
3	U24100GJ2012PLC068909	HERANBA AGRO SCIENCE LIMITED	Director	7/02/2012	7/02/2012	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 16.08.2011

Names of Shareholders	No. of Equity Shares
Sadashiv Shetty	1636766
Raghuram Shetty	965135
Sujata Sadashiv Shetty	317290
Vanita Raghuram Shetty	141800
R.K. Shetty	90027
Raghuram Pakeera Shetty HUF	138000
Haranba Tradelink Private Limited, India	50000
Prishna Tradelink Private Limited, India	25000
Innovative Print Form Limited, India	38750
Artillegence Bio-Innovations Limited, India	12250
Pet Plastics Limited, India	24750

Names of Shareholders	No. of Preference Shares
Sadashiv Shetty	10100
Raghuram Shetty	6621
Sujata Sadashiv Shetty	4800
Vanita Raghuram Shetty	3600
Total	25121

As on 05.12.2011

Names of Shareholders	No. of Equity Shares
Sams Industries Limited, India	92625
Total	92625

Equity Share Break up (Percentage of Total Equity)

As on 16.08.2011

Category	Percentage
Bodies corporate	8.05
Directors or relatives of Directors	91.53
Other top fifty shareholders	0.42
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of cypermethrin, Deltamethrin, Alphamethrin, Permetnrin, Temiphos, Lamdacyhalothrin, Technical DV Acid Chloride and Fungicides

Products :

Product Description	ITC Code
Cypermethric Acid Chlorid	291600
Deltamethrin	380810

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Pesticides and Herbicides	M.T.	NA	7032.000	5416.000

GENERAL INFORMATION

No. of Employees :

350 (Approximately)

Bankers :

· Corporation Bank, 68/72, Babu Genu Road, Kalbadevi, Post Box No. 2587, Mumbai – 400002, Maharashtra, India

· Axis Bank

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	39.196	48.969
Working capital loans banks secured	277.219	131.363
Loans taken for vehicles secured	2.840	0.438
Other debt secured	375.081	363.439
Total	694.336	544.209
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working capital loans financial institutions unsecured	10.841	9.035
Loans directors unsecured	5.390	3.390
Total	16.231	12.425

Banking Relations :	--
Auditors :
Name :	Anay Gogte and Company Chartered Accountants
Address :	1/ F-6, Krishna Nagar, Chandavarkar Road, Borivali (West), Mumbai-400092, Maharashtra, India
PAN.:	AAIPG0263F
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives:	Shakti Bio Science Limited CIN No.: U24116GJ1995PLC024430 Sams Industries Limited CIN No.: U24110MH1994PLC082301

CAPITAL STRUCTURE

After 16.08.2011

Authorised Capital : Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.40.159 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs.45.000 Millions
50000	Preference Shares	Rs.100/- each	Rs.5.000 Millions
	TOTAL		Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3672028	Equity Shares	Rs.10/- each	Rs.36.720 Millions
25121	Preference Shares	Rs.100/- each	Rs.2.512 Millions
	TOTAL		Rs.39.232 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		39.232	39.232	36.870
2] Share Application Money		0.000	0.000	43.796
3] Reserves & Surplus		317.705	264.925	166.987
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		356.937	304.157	247.653
LOAN FUNDS
1] Secured Loans		694.336	544.209	512.806
2] Unsecured Loans		16.231	12.425	6.994
TOTAL BORROWING		710.567	556.634	519.800
DEFERRED TAX LIABILITIES		0.000	6.730	9.734
OTHER LIABILITIES		16.708	13.274	0.000
TOTAL		1084.212	880.795	777.187
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		273.364	280.788	284.222
Capital work-in-progress		15.708	0.000	0.000
INVESTMENT		0.234	0.228	0.224
DEFERREX TAX ASSETS		18.179	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	663.213	359.008	276.591
	Sundry Debtors	574.334	519.923	328.670
	Cash & Bank Balances	73.764	69.760	87.214
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	222.504	547.768	332.345
Total Current Assets		1533.815	1496.459	1024.820
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	636.860	820.893	477.883
	Other Current Liabilities	85.463	41.232	36.133
	Provisions	34.765	34.555	18.063
Total Current Liabilities		757.088	896.680	532.079
Net Current Assets		776.727	599.779	492.741
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1084.212	880.795	777.187

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
SALES
	Income	2051.754	1690.145	1563.183
	Other Income	11.822	49.726	48.961
	TOTAL (A)	2063.576	1739.871	1612.144
EXPENSES
	Consumption materials changes inventories	1435.486	1235.223
	Manufacturing service costs	123.616	111.163	570.025
	Employee related expenses	122.020	83.106
	Administrative selling other expenses	166.137	131.869
	TOTAL (B)	1847.259	1561.361	570.025
PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		216.317	178.510	1669.169
FINANCIAL EXPENSES (D)		86.410	75.435	77.898
PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		129.907	103.075	1591.271
DEPRECIATION/ AMORTISATION (F)		37.554	31.437	33.256
PROFIT BEFORE TAX (E-F) (G)		92.353	71.638	1558.015
TAX (H)		16.700	10.996	1506.082
PROFIT AFTER TAX (G-H) (I)		75.653	60.642	51.933
PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		123.274	77.719	39.070
APPROPRIATIONS
	Transfer to General Reserve	18.886	15.087	6.500
	Equity Dividend			5.497
	Tax on Equity Dividend			0.934
	Preference Share Dividend			0.302
	Tax on Preference Dividend			0.051
BALANCE CARRIED TO THE B/S		166.054	123.274	77.719
EARNINGS IN FOREIGN CURRENCY
	F.O.B. value of exports	623.645	6296.991	663.164
TOTAL EARNINGS		623.645	6296.991	663.164
IMPORTS
	Raw Materials	382.694	271.381	396.040
TOTAL IMPORTS		382.694	271.381	396.040
Earnings Per Share (Rs.)		21.00	12.89	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.67	3.49	3.22
Net Profit Margin (PBT/Sales)	(%)	4.50	4.24	99.66
Return on Total Assets (PBT/Total Assets}	(%)	5.11	4.03	119.02
Return on Investment (ROI) (PBT/Networth)		0.26	0.24	6.29
Debt Equity Ratio (Total Liability/Networth)		4.11	4.78	4.25
Current Ratio (Current Asset/Current Liability)		2.03	1.67	1.93

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	Yes
8) No. of employees	Yes
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

Bankers Charges Report as per Registry

Corporate identity number of the company	U24231GJ1992PLC017315
Name of the company	HERANBA INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No 1505 GIDC, III Phase, Vapi – 396195, Gujarat, India Email : heranba@vsnl.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90095381
Type of charge	Immovable property Book Debts Movable Property Current and Fixed Assets
Particular of charge holder	Corporation Bank, 68/72, Babu Genu Road, Kalbadevi, Post Box No. 2587, Mumbai – 400002, Maharashtra, India Email : info@ca-adlalwani.com
Nature of instrument creating charge	1.Supplemental common deed of hypothecation of movables /assets/ debts
Date of instrument Creating the charge	27.04.2010
Amount secured by the charge	Rs.1117.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	rate of interest as stipulated by bank from time to time terms of repayment as stipulated by bank from time to time margin as stipulated by bank from time to time extent and operation of the charge First charge (present and future)=total limit Rs.1117.500 millions (cash credit - Rs.310.000 millions, PCL/ PDFC=140.000, FDBP/ FDBN/ FDBD/ PSCFC=150.000, term loan Rs.30.000, New term loan Rs.82.500,FCTL I=Rs.45.000, FCTL=80.000, Import LC/Inland LC = 250.000, Corp instant service=Rs.30.000 millions) Others As stipulated by bank from time to time
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First charge(present and future)-exclusive first charge by way of hypothecation of stock/book debts and receivables and current assets Exclusive first charge by way of hypothecation of entire fixed/movable assets of the company comprising of plant and machineries and furniture and other assets of the company exclusive first charge on the entire net block value of the company including Hypothecation of all movable assets Hypothecation of all current ,movable and fixed assets
Particulars of the present modification	By this modification limit enhanced to Rs.1117.500 Millions ((cash credit -Rs.310.000 Millions, PCL/ PDFC=140.000, FDBP/ FDBN / FDBD/ PSCFC=150.000, Term loan Rs.30.000, New term loan Rs.82.500, FCTL I=Rs.45.000, FCTL=80.000, Import LC/ Inland LC =2500.00, Corp instant service=Rs.30.000 Millions), securities are continued as given by original charge as well as by modification

Fixed Assets:

· Land

· Buildings

· Plant and Machinery

· Electrical Installations

· Piping

· Laboratory Equipments

· Canteen Equipments

· Office Equipments

· Computers

· Vehicles

· Furniture and Fixtures

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.52.00
UK Pound	1	Rs.83.54
Euro	1	Rs.68.40

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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

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