MIRA INFORM REPORT

Report Date :

20.01.2012

IDENTIFICATION DETAILS

Name :	MPI MACHINES LIMITED
Formerly Known As :	MP CAB-COND MACHINES LIMITED M. P. CAB-COND MACHINES PRIVATE LIMITED
Registered Office :	MPI House, Gola Ka Mandir, Airport Road, Gwalior – 474005, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	14.09.1987
Com. Reg. No.:	10-004130
Capital Investment / Paid-up Capital :	Rs.3.500 Millions
CIN No.: [Company Identification No.]	U31200MP1987PLC004130
TAN No.: [Tax Deduction & Collection Account No.]	BPLM03661A/ BPLM01426F
PAN No.: [Permanent Account No.]	AACCM0029N
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Wire Making Machines and Industrial Plants Machines
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 130000
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

INFORMATION PARTED BY

Name :	Mr. Anil Gupta
Designation :	Director
Contact No.:	91-9993075522
Date :	17.01.2012

LOCATIONS

Registered Office/ Factory :	MPI House, Gola Ka Mandir, Airport Road, Gwalior – 474005, Madhya Pradesh, India
Tel. No.:	91-751-4048549/ 4048135/ 2361002/ 4097200
Mobile No.:	91-9993075522 (Mr. Anil Gupta)
Fax No.:	91-751-2366979/ 4015204/ 4048008
E-Mail :	mpihouse@airtelmail.in sales@mpimachines.com venkatmpcab@yahoo.com
Website :	http://www.mpigwl.com
Area :	3500 Sq.ft.
Location :	Owned
Branch Office :	J-60, First Floor, Lajpat Nagar – III, New Delhi – 110024, Delhi, India
Tel. No.:	91-11-29834826
Fax No.:	91-11-29833771

DIRECTORS

(AS ON 30.09.2011)

Name :

Mr. Kashiram Gupta

Designation :

Director

Address :

B-5, Basant Vihar, Gwalior – 474007, Madhya Pradesh, India

Date of Birth/Age :

26.08.1926

Date of Appointment :

24.04.1993

DIN No.:

00025096

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U31300MP1978PLC001437	KRISHNA ELECTRICAL INDUSTRIES LIMITED	Director	17/03/1978	17/03/1978	Active	NO
2	U15520MP1981PTC001841	SAGAR AVENUES PRIVATE LIMITED	Director	27/06/1987	27/06/1987	Active	NO
3	U74210MP1988PTC004911	TILAK POWER CABLES PRIVATE LIMITED	Director	25/11/1988	25/11/1988	Active	NO
4	U31200MP1987PLC004130	MPI MACHINES LIMITED	Director	24/04/1993	24/04/1993	Active	NO
5	L31200MP1994PLC008359	M.P.TELELINKS LIMITED	Director	27/05/1994	27/05/1994	Active	NO
6	U67120MP1999PTC013873	A.N.K.SECURITIES PRIVATE LIMITED	Director	1/12/1999	1/12/1999	Active	NO
7	U65910MP2000PTC014091	DART SECURITIES PRIVATE LIMITED	Director	7/3/2000	7/3/2000	Active	NO

Name :

Mr. Ashok Gupta

Designation :

Director

Address :

B-7, Basant Vihar, Gwalior – 474007, Madhya Pradesh, India

Date of Birth/Age :

10.02.1952

Date of Appointment :

14.09.1987

DIN No.:

00023536

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U15520MP1981PTC001841	SAGAR AVENUES PRIVATE LIMITED	Director	15/07/1986	15/07/1986	Active	NO
2	U31200MP1987PLC004130	MPI MACHINES LIMITED	Whole-time director	1/4/2008	14/09/1987	Active	NO
3	U74210MP1988PTC004911	TILAK POWER CABLES PRIVATE LIMITED	Director	25/11/1988	25/11/1988	Active	NO
4	U31300MP1978PLC001437	KRISHNA ELECTRICAL INDUSTRIES LIMITED	Director	1/1/1992	1/1/1992	Active	NO
5	L31200MP1994PLC008359	M.P.TELELINKS LIMITED	Director	27/05/1994	27/05/1994	Active	NO
6	U31102MP1999PTC013446	GWALIOR TRANS-CON PRIVATE LIMITED	Director	1/4/1999	1/4/1999	Active	NO
7	U67120MP1999PTC013872	A.G.R.SECURITIES PRIVATE LIMITED	Director	1/12/1999	1/12/1999	Active	NO
8	U45201MP2000PTC014080	DURGA INDUSTRIES PRIVATE LIMITED	Director	2/3/2000	2/3/2000	Active	NO

Name :

Mr. Anil Gupta

Designation :

Whole-time Director

Address :

B-14, Basant Vihar, Gwalior – 474007, Madhya Pradesh, India

Date of Birth/Age :

06.03.1957

Date of Appointment :

14.09.1987

DIN No.:

01142560

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U15520MP1981PTC001841	SAGAR AVENUES PRIVATE LIMITED	Director	11/3/1985	11/3/1985	Active	NO
2	U31200MP1987PLC004130	MPI MACHINES LIMITED	Whole-time director	1/4/2008	14/09/1987	Active	NO
3	U74210MP1988PTC004911	TILAK POWER CABLES PRIVATE LIMITED	Director	25/11/1988	25/11/1988	Active	NO
4	U31300MP1978PLC001437	KRISHNA ELECTRICAL INDUSTRIES LIMITED	Director	14/01/1994	14/01/1994	Active	NO
5	L31200MP1994PLC008359	M.P.TELELINKS LIMITED	Director	27/05/1994	27/05/1994	Active	NO
6	U31102MP1999PTC013446	GWALIOR TRANS-CON PRIVATE LIMITED	Director	1/4/1999	1/4/1999	Active	NO
7	U65910MP2000PTC014091	DART SECURITIES PRIVATE LIMITED	Director	7/3/2000	7/3/2000	Active	NO

Name :

Mr. Ajay Gupta

Designation :

Director

Address :

B-5, Basant Vihar, Gwalior – 474007, Madhya Pradesh, India

Date of Birth/Age :

06.02.1963

Date of Appointment :

14.09.1987

DIN No.:

00024975

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U31200MP1987PLC004130	MPI MACHINES LIMITED	Director	14/09/1987	14/09/1987	Active	NO
2	U31300MP1978PLC001437	KRISHNA ELECTRICAL INDUSTRIES LIMITED	Whole-time director	1/4/2008	7/4/1988	Active	NO
3	U74210MP1988PTC004911	TILAK POWER CABLES PRIVATE LIMITED	Director	10/2/1992	10/2/1992	Active	NO
4	L31200MP1994PLC008359	M.P.TELELINKS LIMITED	Director	27/05/1994	27/05/1994	Active	NO
5	U31102MP1999PTC013446	GWALIOR TRANS-CON PRIVATE LIMITED	Director	1/4/1999	1/4/1999	Active	NO
6	U67120MP1999PTC013873	A.N.K.SECURITIES PRIVATE LIMITED	Director	1/12/1999	1/12/1999	Active	NO
7	U45201MP2000PTC014080	DURGA INDUSTRIES PRIVATE LIMITED	Director	2/3/2000	2/3/2000	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Ashok Gupta	1000
Ajay Gupta	56800
Anil Gupta	41400
Ashok Gupta Karta of Ashok Gupta and Sons	35800
Gita Gupta	23000
Usha Gupta	3000
Renu Gupta	7500
Kashiram Gupta Karta of Kashiram Gupta and Sons	20000
Ruchi Goyal	10000
Tusharika Gupta	11000
Deepshika Gupta	15500
Rahul Gupta	5000
Akriti Gupta	8000
Namrata Gupta	10000
Kashiram Gupta	102000
Total	350000

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Wire Making Machines and Industrial Plant and Machines.

Products :

Product Description	Item Code
Cable Machines	84794000

· Wire Drawing Machine

· Wire Stranding Machine

· Wire / Strip Armouring Machine

· Steel Tap Armouring Machine

· Drum Twister for Power Cable Machine

· Cable Sheathing and Jacketing Line

· Cable Rewind Line

Exports :

Products :

Wire Making Machine

Countries :

Middle East

Imports :

Products :

Raw Material

Countries :

China

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Suppliers :

· Kirloskar

Customers :

Wholesalers and Retailers

· KEC international

No. of Employees :

200 (Approximately)

Bankers :

· State Bank of India,

Commercial Branch, City Centre, Gwalior – 474011, Madhya Pradesh, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Cash Credit Facilities from SBI Comml Br. Gwl.	10.186	1.534
Term Loan Facilities	2.016	2.478
Vehicles Loan Facilities	0.412	0.953
Total	12.614	4.965

Banking Relations :	--
Auditors :
Name :	V Bapna and Company Chartered Accoountant
Address :	Sarafa Bazar, Gwalior – 474001, Madhya Pradesh, India
PAN No.:	AABFV3800E

CAPITAL STRUCTURE

(AS ON 30.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs.10/-each	Rs.4.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
350000	Equity Shares	Rs.10/-each	Rs.3.500 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		3.500	3.500	3.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		28.620	26.755	22.384
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		32.120	30.255	25.884
LOAN FUNDS
1] Secured Loans		12.614	4.965	8.984
2] Unsecured Loans		3.811	3.800	3.579
TOTAL BORROWING		16.425	8.765	12.563
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		48.545	39.020	38.447
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9.646	10.448	11.173
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		2.376	2.376	2.376
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	35.666	17.463	29.781
	Sundry Debtors	14.743	16.908	13.166
	Cash & Bank Balances	5.696	4.234	8.039
	Other Current Assets	0.409	0.409	0.404
	Loans & Advances	10.259	9.946	12.595
Total Current Assets		66.773	48.960	63.985
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	16.866	9.055	14.184
	Other Current Liabilities	13.384	13.509	23.653
	Provisions	0.000	0.200	1.250
Total Current Liabilities		30.250	22.764	39.087
Net Current Assets		36.523	26.196	24.898
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		48.545	39.020	38.447

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	104.710	135.640	121.272
		Other Income	0.122	0.530	0.167
		TOTAL (A)	104.832	136.170	121.439
Less	EXPENSES
		Raw Material Consumed	71.181	79.048	82.164
		Manufacturing Expenses	13.284	10.811	10.237
		Other Direct Expenses	2.471	2.187	2.503
		Administration expenses	2.933	2.777	2.780
		Payments made to Prov. For Emp.	4.573	4.299	4.302
		Selling and distribution expenses	5.688	10.009	6.076
		Duty and taxes	9.577	7.246	15.924
		Accretion/ Decretion in Stock	(11.972)	10.172	(11.100)
		TOTAL (B)	97.735	126.549	112.886
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		7.097	9.621	8.553
Less	FINANCIAL EXPENSES (D)		2.629	2.849	2.664
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.468	6.772	5.889
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.688	1.735	1.234
	PROFIT BEFORE TAX (E-F) (G)		2.780	5.037	4.655
Less	TAX (H)		0.915	0.666	1.250
	PROFIT AFTER TAX (G-H) (I)		1.865	4.371	3.405
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.000	0.000	0.000
	BALANCE CARRIED TO THE B/S		1.865	4.371	3.405
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	16.257	59.103	4.166
	TOTAL EARNINGS		16.257	59.103	4.166
	IMPORTS
		Raw Materials	5.533	8.466	3.318
		Capital Goods	0.000	0.746	3.977
		Others	1.547	1.167	0.224
	TOTAL IMPORTS		7.080	10.379	7.519
	Earnings Per Share (Rs.)		5.33	12.49	9.73

Expected Sales (2011-12): Rs.140.000 Millions

The above information has been parted by Mr. Anil.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.78	3.21	2.80
Net Profit Margin (PBT/Sales)	(%)	2.65	3.71	3.84
Return on Total Assets (PBT/Total Assets}	(%)	3.64	8.48	6.19
Return on Investment (ROI) (PBT/Networth)		0.09	0.17	0.18
Debt Equity Ratio (Total Liability/Networth)		1.45	1.04	2.00
Current Ratio (Current Asset/Current Liability)		2.21	2.15	1.64

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	-----
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last two years	Yes
Profitability for last three years	-----
Reasons for variation <> 20%	-----
Estimation for coming financial year	Yes
Capital in the business	Yes
Details of sister concerns	-----
Major Suppliers	Yes
Major Customers	Yes
Payments Terms	Yes
Export/ Imports Details (If applicable)	Yes
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	No
Incorporation details is applicable	-----
Last Accounts filed at ROC	-----
Major Shareholders, if available	-----

TRADE REFERENCES

· KEC international

· Kirloskar

YEARS IN RETROSPECT

The audited financial statements for the year 2010-11, as it had envisaged sustainable growth in the volume of business, paving way for exploring export markets to scale up the top line numbers in the years ahead. the Directors intend to share with the members that during the year under review, the cable and conductor industries had been adversely affected due to financial distress and in spite of central govt's policy to step up the Power Generation over the past Five Year Plans, could not accomplish the desired targets set and adding fuel to fire, the receivers of Power Generation ie. State Electricity Boards are not generating sufficient cash inflows followed by reluctance by various FIs to extend liberal financial assistance to SEBs.

The hon'ble members that in view of recessionary/downward domestic industrial curve, the Company begin to gear up its marketing wing to penetrate different European/Gulf Countries. incidentally, the Company have already established its presence in many gulf countries in the recent past but unfortunately, the gulf market remain subdued in the year and hence, the Company could not procure number of value added export orders from this region. To equalize the sluggish gulf market, the Company proceeded to explore its market possibilities in the African Countries and as a stepping stone, the Company is procuring orders in Uganda and the silver lining is that many countries in the region of Africa, are not well developed industrially and backed by their govtts' thurst to promote and develop infrastructural facilities over a period of next 10-15 years, the market potential/exposure is huge and your Company is optimistic to navigate and inroad into this market on a large scale, to step up the top line over the next couple of years.

CONTINGENT LIABILITIES (NOT PROVIDED FOR)

Bank Guarantee issued by the bank on behalf of the company outstanding as on 31.03.2011 Rs.20.079 Millions (Previous year Rs.14.519 Millions)

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	90210382
Corporate identity number of the company	U31200MP1987PLC004130
Name of the company	MPI MACHINES LIMITED
Address of the registered office or of the principal place of business in India of the company	MPI Houseariport Road, Gola Ka Mandir, Gwalior - 474005, Madhya Pradesh, India
Type of charge	Immovable Property Book Debts Movable Property (not being pledge)
Particular of charge holder	State Bank of India, Commercial Branch, City Centre, Gwalior – 474011, Madhya Pradesh, India Email- mydigitalclients@gmail.com
Nature of description of the instrument creating or modifying the charge	1. Letter of Arrangement 2. Agreement of Loan cum Hypothecation - SME -2 3. Link Letter - SME-12
Date of instrument Creating the charge	29.01.2009
Amount secured by the charge	Rs.52.000 million
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest – Working Capital: As applicable to SB-7 rated unit. Interest @1.50% above SBAR (SBAR 12.25% w.e.f. 01.01.09) with a minimum of 13.75% p.a. payable monthly. Corporate Loan: As applicable to SB-7 rated unit. Interest @1.50% above SBAR (SBAR 12.25% w.e.f. 01.01.09) plus 0.50% term premia and 0.50% higher with a minimum of 14.75% p.a. payable monthly. Terms of Repayment – Working Capital: Repayable on Demand subject to renewal. Corporate Loan: (Rs. 5.000 million) will be repaid in 35 monthly installments commencing from Jan.2009. First 20 installments of Rs.0.100 million each and next 15 installments of Rs.0.200 million each. Margin - Working Capital: Raw Material/ Stock in Process/ Finished Goods @25% Receivables (Cover Period 75 days) 40% Bank Guarantee (100% for disputed BG) 20% Letter of Credit 15% EPC 10% Corporate Loan 35% Extent and Operation of the charge - To the extent of Credit Facilities of Rs.52.000 millions, comprising off: Cash Credit Limit Rs.15.000 million Corporate Loan Rs. 5.000 million Letter of Credit Limit Rs.2.000 million Bank Guarantee Limit Rs.300.000 Millions Others – Corporate Guarantee of Krishna Electrical Industries Limited.
Short particulars of the property charged	Hypothecation of entire current assets including stocks of raw material, stores, spares, finished goods including items in transit and all book debts / receivables. First Charge over company's entire fixed assets including mortgage of factory land (leasehold) and building. First charge over proposed Plant and Machinery to be purchased out of term loan (Corporate Loan)
Date of latest modification prior to the present modification	01.09.2000
Particulars of the present modification	Credit facilities enhanced and stood at Rs.52.000 millions by sanctioning of Fresh Corporate Loan of Rs.5.000 million, increase in CC Limit, LC Limit and Bank Guarantee Limits. Now the fresh limits are as under: Cash Credit Limit Rs.15.000 million Corporate Loan Rs. 5.000 million Letter of Credit Limit Rs.2.000 million Bank Guarantee Limit Rs.30.000 millions

FIXED ASSETS:

· Building

· Plant and Machine

· Foundation Fittings

· Electric Fittings

· Laboratory Equipments

· Office Equipments

· Air Conditioner

· Furniture and Fixture

· Vehicles

· Computers

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.50.67
UK Pound	1	Rs.77.72
Euro	1	Rs.64.63

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		44

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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