Business information report

1. Summary Information

Reference #	135-315615-01-020(20120312727)	Country	India
Company Name	C A GALIAKOTWALA AND COMPANY PRIVATE LIMITED	Principal Name 1	Mr. Harshad Chhotalal Sheth
Status	Moderate	Principal Name 2	Mr. Mahnedra Chhotalal Sheth
Our Reference #	173083	Registration #	11-3046
Street Address	125, Nagindas Master Road, Fort, Mumbai – 400 023, Maharashtra
Established Date	14.12.1939	SIC Code	--
Telephone#	91-22-22843758	Business Style 1	Trader of Cotton
Fax #	91-22-22048801	Business Style 2	--
Homepage	galiakotwala_mb@vsnl.com accounts@galiakotwala.com	Product Name 1	--
# of employees	Not Available	Product Name 2	--
Paid up capital	Rs.2,400,000	Product Name 3	--
Shareholders	Directors or relatives of directors 98.67	Banking	Union Bank of India
Public Limited Corp.	--	Business Period	73 years
IPO	--	International Ins.	--
Public Enterprise	--	Rating	B (30)
Related Company
Relation	Country	Company Name	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2010		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	336,668,000	Current Liabilities	291,849,000
Inventories	182,638,000	Long-term Liabilities	92,446,000
Fixed Assets	10,270,000	Other Liabilities	518,000
Deferred Assets	3,000	Total Liabilities	384,813,000
Invest& other Assets	13,653,000	Retained Earnings	156,019,000
	0	Net Worth	158,419,000
Total Assets	543,232,000	Total Liab. & Equity	543,232,000
Total Assets (Previous Year)	466,920,000
P/L Statement as of	31.03.2010		(Unit: Indian Rs.)
Sales	NA	Net Profit	NA
Sales(Previous yr)	NA	Net Profit(Prev.yr)	1,869,000

MIRA INFORM REPORT

Report Date :

16.03.2012

IDENTIFICATION DETAILS

Name :	C A GALIAKOTWALA AND COMPANY PRIVATE LIMITED
Registered Office :	125, Nagindas Master Road, Fort, Mumbai – 400 023, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	14.12.1939
Com. Reg. No.:	11-3046
Capital Investment / Paid-up Capital :	Rs.2.400 Millions
CIN No.: [Company Identification No.]	U51900MH1939PTC003046
TAN No.: [Tax Deduction & Collection Account No.]	MUMC10333B
PAN No.: [Permanent Account No.]	AAACC2925K
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Cotton
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 600000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for small business dealings at usual trade terms and conditions. Profit and Loss of the company for the current year is not available.

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 :	125, Nagindas Master Road, Fort, Mumbai – 400023, Maharashtra, India
Tel. No.:	91-22-22843758
Fax No.:	91-22-22048801
E-Mail :	galiakotwala_mb@vsnl.com accounts@galiakotwala.com
Corporate Office :	66, Maker Chambers, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-22843758/ 22843772
Fax No.:	91-22-22048801

DIRECTORS

(AS ON 30.09.2010)

Name :

Mr. Harshad Chhotalal Sheth

Designation :

Director

Address :

7-B, Geetanjali Co-operative Housing society, Navroji Gamadia Cross Road, Off Peddar Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

10.03.1942

Date of Appointment :

29.08.1969

DIN No.:

00045435

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	U51900MH1939PTC003046	C A GALIAKOTWALA AND COMPANY PRIVATE LIMITED	Director	29-08-69	29-08-69	Active	NO
2	U24110MH1941PTC003381	ADVANCE PAINTS PRIVATE LIMITED	Managing director	24-05-73	24-05-73	Active	NO
3	U74999MH1947PLC005875	GALIAKOTWALA ESTATE LTD	Director	22-08-86	22-08-86	Dormant	NO
4	U65910MH1990PLC058983	GALIAKOTWALA INVESTMENT SERVICES LIMITED	Director	15-11-90	15-11-90	Active	NO
5	U29299MH1991PTC061083	GALIAKOTWALA ENGINEERING COMPANY PRIVATE LIMITED	Director	08-04-91	08-04-91	Active	NO
6	U51900MH1996PTC095870	GALIAKOTWALA INTERNATIONAL PRIVATE LIMITED	Director	03-01-96	03-01-96	Active	NO
7	U28992MH1997PTC107569	T AND D GALIAKOT CONTAINERS PRIVATE LIMITED	Director	25-04-97	25-04-97	Active	NO

Name :

Mr. Mahnedra Chhotalal Sheth

Designation :

Director

Address :

51, Shivtrirth No.1, 4/6 Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

22.12.1948

Date of Appointment :

07.03.1986

DIN No.:

00056975

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	U51900MH1939PTC003046	C A GALIAKOTWALA AND COMPANY PRIVATE LIMITED	Director	07-03-86	07-03-86	Active	NO
2	U24110MH1941PTC003381	ADVANCE PAINTS PRIVATE LIMITED	Director	07-03-86	07-03-86	Active	NO
3	U65910MH1990PLC058983	GALIAKOTWALA INVESTMENT SERVICES LIMITED	Director	15-11-90	15-11-90	Active	NO
4	U29299MH1991PTC061083	GALIAKOTWALA ENGINEERING COMPANY PRIVATE LIMITED	Managing director	08-04-91	08-04-91	Active	NO
5	L99999GJ1978PLC022924	GUJARAT ORGANICS LIMITED	Director	23-05-95	23-05-95	Active	NO
6	U28992MH1997PTC107569	T AND D GALIAKOT CONTAINERS PRIVATE LIMITED	Director	29-09-99	29-09-99	Active	NO
7	U25202MH1986PLC038626	CLEAR MIPAK PACKAGING SOLUTIONS LIMITED	Director	16-04-03	16-04-03	Active	NO
8	U32100MH2005PTC154821	SUNDEEP TECHNOLOGIES PRIVATE LIMITED	Director	15-07-05	15-07-05	Active	NO
9	U74999MH1947PLC005875	GALIAKOTWALA ESTATE LIMITED	Director	03-10-06	03-10-06	Dormant	NO

Name :

Mr. Dhiren Narendra Sheth

Designation :

Director

Address :

101, Khatau House, 15-A, J Mehta Road, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

03.12.1967

Date of Appointment :

01.02.1992

DIN No.:

00300136

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	U51900MH1939PTC003046	C A GALIAKOTWALA AND COMPANY PRIVATE LIMITED	Director	01-02-92	01-02-92	Active	NO
2	U91110MH1921NPL000940	COTTON ASSOCIATION OF INDIA	Director	31-12-08	08-11-93	Active	NO
3	U51900MH1996PTC095870	GALIAKOTWALA INTERNATIONAL PRIVATE LIMITED	Director	24-09-96	24-09-96	Active	NO
4	U28992MH1997PTC107569	T AND D GALIAKOT CONTAINERS PRIVATE LIMITED	Director	29-09-99	29-09-99	Active	NO
5	U70100MH2003PTC142104	GALIAKOTWALA PROPERTIES PRIVATE LIMITED	Director	18-10-03	18-10-03	Active	NO

Name :

Mr. Manish Narendra Sheth

Designation :

Director

Address :

101, Khatau House, 15-A, J Mehta Road, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

25.05.1969

Date of Appointment :

01.08.1994

DIN No.:

00300201

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	U24110MH1941PTC003381	ADVANCE PAINTS PRIVATE LIMITED	Whole-time director	09-02-92	09-02-92	Active	NO
2	U51900MH1939PTC003046	C A GALIAKOTWALA AND COMPANY PRIVATE LIMITED	Director	01-08-94	01-08-94	Active	NO
3	U65910MH1990PLC058983	GALIAKOTWALA INVESTMENT SERVICES LIMITED	Director	19-08-96	19-08-96	Active	NO
4	U51900MH1996PTC095870	GALIAKOTWALA INTERNATIONAL PRIVATE LIMITED	Director	19-08-96	19-08-96	Active	NO
5	U74210MH1996PTC103804	GALIAKOTWALA TECHNOLOGIES PRIVATE LIMITED	Director	06-11-96	06-11-96	Active	NO
6	U70100MH2003PTC142104	GALIAKOTWALA PROPERTIES PRIVATE LIMITED	Director	18-10-03	18-10-03	Active	NO
7	U15140MH1969NPL014362	ALL INDIA COTTONSEED CRUSHERS ASSOCIATION	Director	21-09-06	21-09-06	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Narendra Chhotalal Sheth	3808
Harshad Chhotalal Sheth	2352
Bakulal Sheth	1696
Mahnedra Chhotalal Sheth	2144
Bhanumati Sheth	384
Usha Sheth	1264
Rekha Sheth	928
Harsha Sheth	608
Kanan Sheth	160
Sandip Sheth	1488
Manish Sheth	1216
Dhiren Sheth	1328
Sushant Sheth	704
N. C. Sheth HUF	640
H. C. Sheth HUF	1040
B. C. Sheth HUF	1040
M. C. Sheth HUF	704
Galiakot Containers Limited, India	320
Bhanumati A Sheth	1856
C. J. Sheth HUF	320
Total	24000

(AS ON 30.09.2010)

Equity Shares Break – up

Category	Percentage
Bodies corporate	1.33
Directors or relatives of directors	98.67
Total	100.00

BUSINESS DETAILS

Line of Business :

Trader of Cotton

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Union Bank of India

66/80, Mumbai Samachar Marg, Fort, Mumbai – 400023, Maharashtra, India

· Bank of India

Mumbai Overseas Branch, 70-80, M G Road, Mezzanine Floor, Fort, Mumbai - 400001, Maharashtra, India

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
Bank Overdraft	28.228	24.224
Car Loan	0.562	0.690
Bills Receivables discounted by Bank	62.748	42.901
Total	91.538	67.815
Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From Other Loans	0.908	0.913
Total	0.908	0.913

Banking Relations :	--
Auditors :
Name :	A. W. Ketkar and Company Chartered Accountants
Address :	4, Soukhya, V. N. Purav Mar, Chunabhatti, Mumbai – 400022, Maharashtra, India
PAN No.:	AAFPK2543M

CAPITAL STRUCTURE

(AS ON 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs.100/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24000	Equity Shares	Rs.100/- each	Rs.2.400 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		2.400	2.400	2.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		156.019	155.811	155.328
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		158.419	158.211	157.728
LOAN FUNDS
1] Secured Loans		91.538	67.815	81.112
2] Unsecured Loans		0.908	0.913	0.920
TOTAL BORROWING		92.446	68.728	82.032
DEFERRED TAX LIABILITIES		0.518	0.588	0.631
TOTAL		251.383	227.527	240.391
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.270	11.144	10.804
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		13.653	34.093	36.010
DEFERREX TAX ASSETS		0.003	0.087	0.111
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	182.638	98.569	204.869
	Sundry Debtors	128.638	89.021	246.825
	Cash & Bank Balances	3.997	30.247	18.457
	Other Current Assets	203.867	203.648	201.091
	Loans & Advances	0.166	0.111	0.173
Total Current Assets		519.306	421.596	671.415
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	27.445	70.842	25.985
	Other Current Liabilities	175.360	80.303	364.038
	Provisions	89.044	88.248	87.926
Total Current Liabilities		291.849	239.393	477.949
Net Current Assets		227.457	182.203	193.466
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		251.383	227.527	240.391

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008
	SALES
		Income	NA	1087.918
		Other Income	NA	7.658
		TOTAL (A)	NA	1095.576
Less	EXPENSES
		Cost of Goods sold	NA	966.539
		Operating Expenses	NA	123.373
		TOTAL (B)	NA	1089.912
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	5.664
Less	FINANCIAL EXPENSES (D)		NA	0.064
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.749	5.600
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.105	1.154
	PROFIT BEFORE TAX (E-F) (G)		3.644	4.446
Less	TAX (H)		1.775	0.925
	PROFIT AFTER TAX (G-H) (I)		1.869	3.521
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.047	0.079
	Provision for deferred tax excess provision for income tax		0.018	0.180
Less	APPROPRIATIONS
		Proposed Dividend	1.200	2.400
		Dividend Tax	0.204	0.408
		Transfer to General Reserve	0.000	0.925
	BALANCE CARRIED TO THE B/S		0.530	0.047
	EARNINGS IN FOREIGN CURRENCY
		Sale of Cotton	189.188	NA
		Import Commission Received	22.910	NA
	TOTAL EARNINGS		212.098	NA
	Earnings Per Share (Rs.)		77.88	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	NA	NA	0.32
Net Profit Margin (PBT/Sales)	(%)	NA	NA	0.41
Return on Total Assets (PBT/Total Assets}	(%)	NA	0.84	0.65
Return on Investment (ROI) (PBT/Networth)		NA	0.02	0.03
Debt Equity Ratio (Total Liability/Networth)		2.43	1.95	3.55
Current Ratio (Current Asset/Current Liability)		1.78	1.76	1.40

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

Name of the company	C A GALIAKOTWALA AND COMPANY PRIVATE LIMITED
Presented By	Union Bank of India, Mumbai Samachar Marg Branch, Mumbai
1) Date and description of instrument creating the change	Letter of Hypothecation Dated: 21^st August, 2003
2) Amount secured by the charge/amount owing on the securities of charge	Rs.7.500 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Purchase from or negotiate a bill or bills of exchange drawn or accepted or endorsed against goods and /or merchandise or shipping or other documents and/cc hold such cc any other bill or bills of exchange and/or documents for collection on the borrower’s account under lien to the bank.
4) Gist of the terms and conditions and extent and operation of the charge.	The security as stated in column No.3 above is taken to secure the DBP / UDBP limit of Rs.7.500 millions granted by the Bank to the Company.
5) Name and Address and description of the person entitled to the charge.	Union Bank of India, Mumbai Samachar Marg Branch, 66/80, Mumbai Samachar Marg, fort, Mumbai-400 023, Maharashtra, India
6) Date and brief description of instrument modifying the charge	Letter of Hypothecation of Bills (SD-17) Dated: 5th May, 2005
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 original charge dated 21st August, 2003 for Rs.7.500 millions is hereby modified by granting an additional sum of Rs.2.500 millions, thereby enhancing DBP / TJDBP limit from Rs.7.500 millions to Rs.10.000 millions against purchase or negotiation of a bill or bills of exchange drawn or accepted or endorsed against goods and/or merchandise or shipping or other document and/or hold such or any other bill or bills of exchange and/or documents for collection on the Borrower’s account under Lien to the Bank.

Corporate identity number of the company	U51900MH1939PTC003046
Name of the company	C A GALIAKOTWALA AND COMPANY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	125, Nagindas Master Road, Fort, Mumbai – 400023, Maharashtra, India accounts@galiakotwala.com
This form is for	Modification of charge
Charge identification number of the modified	10288347
Type of charge	Book Debts Movable Property
Particular of charge holder	Union Bank of India Mumbai Samachar Marg Branch, 66//80, Mumbai Samachar Marg, Fort, Mumbai – 400023, Maharashtra, India msmcredit@unionbankofindia.com
Nature of description of the instrument creating or modifying the charge	Composite Hypothecation Deed
Date of instrument Creating the charge	27.04.2011
Amount secured by the charge	Rs.451.700 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest as stated in the Composite Hypothecation Deed Terms of Repayment On Demand Margin Nature of Facility Margin Import LC (DP/DA) ................... 10%+15% Letter of Guarantee ................... 20% Cash Credit (HYP.) .................... 25% (MILL GIN Stores) Packing Credit ........................... 5% W/W Cash Credit (Stock / .......... 25% Book Debts) Extent and Operation of the charge To secure an aggregate amount of Rs.451.700 Millions granted by the bank as under :- Import LC (DP/DA) : Rs.60.000 Millions Letter of Guarantee : Rs.20.000 Millions Cash Credit (Hyp.) (Mill Gin Stores) : Rs.1.200 Millions DBP / UDBP : Rs.10.000 Millions CP / WAE : Rs.0.500 Millions Packing Credit : Rs.280.000 Millions w/w Cash Credit (Stock / Book Debts) : (Rs.50.000 Millions) FDBP / FUDBP (Under L/C Sight and/or 90 Days DA) : Rs.80.000 Millions w/w FDBP / FUDBP (Under Conf. Contract) : (Rs.50.000 Millions)
Short particulars of the property charged	The borrower hypothecates by way of first charge in favour of the bank :- 1) the whole of the borrower's movable goods and assets both present and future including all stocks of raw materials, work in progress, semi finished and finished goods such as cotton, cotton waste, cotton fabrics, almonds, etc. packing materials, consumable stores and spares etc. situate at Bhatinda, Hissar, Ganganagar, Ahmedabad, Rajkot, Akda, Aurangabad, Parbhani, Indore, Adilabad, Guntur, Hubli, Madurai, Mumbai or in the Godowns of the borrower or in course of transit or wherever else the same may be 2) All the present and future book debts, outstanding, monies receivable, claims, bills, contracts, engagements and securities which are due and owing to the borrower in the course of its business by any person, firm, company or body corporate or by the Government of India or any state government or Indian Railways or any government department or office or any municipal or local or (public or semi government body or authority whatsoever including those relating to the assets leased out and/or given on hire purchase.
Particulars of the present modification	The Total Limit has enhanced from Rs.316.700 Millions to Rs.451.700 Millions.

FIXED ASSETS:

· Land and Building

· Office Premises and Godown

· Office Equipment and Machinery

· Furniture

· 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.50.22
UK Pound	1	Rs.78.63
Euro	1	Rs.65.53

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		30

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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