MIRA INFORM REPORT

Report Date :

07.05.2012

IDENTIFICATION DETAILS

Name :	PINNACLE INDUSTRIES LIMITED
Formerly Known As :	PINNACLE AUTO PRIVATE LIMITED
Registered Office :	No.26, Yashwant Ghatge Nagar Co-Operative Housing Society, Range Hills Road, Pune – 411 007, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.06.1996
Com. Reg. No.:	11-100600
Capital Investment / Paid-up Capital :	Rs.40.550 millions
CIN No.: [Company Identification No.]	U50300PN1996PLC100600
IEC No.:	3197000854
PAN No.: [Permanent Account No.]	AABCP1509P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Automotive Seats, Automotive Interiors and Polyurethane Articles.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 728000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an 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 :	No.26, Yashwant Ghatge Nagar Co-Operative Housing Society, Range Hills Road, Pune – 411 007, Maharashtra, India
Tel. No.:	91-20-27404616
Fax No.:	91-20-27473017
E-Mail :	iut@eth.net coordinator@pinnacleindustries.com
Website :	http://www.pinnacleindustries.com
Factory 1 :	Plot No.190-191, Sector No.1, Industrial Estate, Pithampur – 454 775, District Dhar, Madhya Pradesh, India
Tel. No.:	91-7292-308030/ 308330/ 308040
Fax No.:	91-7292-308336
Factory 2 :	Gat No.330, Nanekar Wadi, Chakan, Taluka Khed, District Pune, Maharashtra, India
Tel. No.:	91-2135-320111
Factory 3 :	D 2/5, Honda Industrial Estate, Opposite Goa Accessories, Village Honda, Goa, India
Tel. No.:	91-832-2370909
Factory 4 :	G1/559, Sitapura Industrial Area, Tonk Road, Jaipur – 302 022, Rajasthan, India
Tel. No.:	91-1412-2770254

DIRECTORS

As on 05.06.2010

Name :

Mr. Sudhir Sukhsampat Mehta

Designation :

Director

Address :

Plot No.26, Yashwant Nagar Co-Operative Housing Society, Ganesh Khind Road, Shivaji Nagar, Pune – 411 007, Maharashtra, India

Date of Birth/Age :

05.06.1969

Qualification :

MBA, Bachelors Degree in Computer Science and Economics from Depance University, USA

Date of Appointment :

01.04.2012

DIN No.:

00056867

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	U50300PN1996PLC100600	Pinnacle Industries Limited	Managing director	01-04-12	27-06-96	-	Active	NO
2	U17214PN1999PTC014308	Rizhome Industries Private Limited	Additional director	05-08-11	28-12-99	-	Active	NO
3	U74999MP2004SGC020090	Pithampur Auto Cluster Limited	Nominee director	05-09-05	05-09-05	-	Active	NO
4	U34102PN2006PTC022147	Man Trucks India Private Limited	Managing director	10-11-09	18-07-06	28-03-12	Active	NO
5	L34102PN1958PLC011172	Force Motors Limited	Director	30-09-06	30-09-06	-	Active	NO
6	U29299PN2008PTC131927	Perform Fitness Solutions Private Limited	Director	02-05-08	02-05-08	-	Active	NO
7	U35990MH2012PTC226696	Caveo Pinnacle India Private Limited	Director	10-02-12	10-02-12	-	Active	NO

Name :

Mrs. Sunanda Sudhir Mehta

Designation :

Whole-time Director

Address :

Sanmitra, 132-B-2A, Ganeshkhind Road, Pune – 411 007, Maharashtra, India

Date of Birth/Age :

07.07.1971

Qualification :

B.A., Master in Business Administration in Finance and International Business from University of Chicago, USA

Date of Appointment :

27.06.1996

DIN No.:

00289624

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	U50300PN1996PLC100600	Pinnacle Industries Limited	Whole-time director	01-10-08	27-06-96	Active	NO
2	U17214PN1999PTC014308	Rizhome Industries Private Limited	Additional director	05-08-11	28-12-99	Active	NO
3	U74999PN1947PLC005480	Jaya Hind Industries Limited	Director	27-09-05	27-09-05	Active	NO
4	U29299PN2008PTC131927	Perform Fitness Solutions Private Limited	Managing director	22-01-09	02-05-08	Active	NO

Name :

Mr. Dilip Sardarmal Sanghvi

Designation :

Whole-time Director

Address :

Flat No.23, Sylvan Retreate, S.No.209/1B/1, Bhosale Nagar, Shivajinagar, Pune – 411 007, Maharashtra, India

Date of Appointment :

10.11.2009

DIN No.:

01801962

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	U50300PN1996PLC100600	Pinnacle Industries Limited	Whole-time director	05-06-10	10-11-09	Active	NO
2	U51109MP2011PTC025922	Raghav Seeds Private Limited	Director	05-05-11	05-05-11	Active	NO
3	U17214PN1999PTC014308	Rizhome Industries Private Limited	Additional director	22-11-11	22-11-11	Active	NO

Name :

Mr. Gaurav Dua

Designation :

Director

Address :

352 B, AD Sector, Scheme No.74C, Vijay Nagar, Indore – 452 010, Madhya Pradesh, India

Date of Appointment :

20.10.2009

DIN No.:

02941434

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	U50300PN1996PLC100600	Pinnacle Industries Limited	Director	05-06-10	20-10-09	Active	NO
2	U51109MP2011PTC025922	Raghav Seeds Private Limited	Director	05-05-11	05-05-11	Active	NO

Name :

Mr. Virendra Mehta

Designation :

Director

Address :

7, Radio Colony, Indore – 452 001, Madhya Pradesh, India

Date of Appointment :

20.10.2009

DIN No.:

02942901

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	U50300PN1996PLC100600	Pinnacle Industries Limited	Director	05-06-10	20-10-09	Active	NO

Name :

Mr. Abhay Singh Bharaktiya

Designation :

Additional Director

Address :

13, Yeshwant Colony, Indore – 452 001, Madhya Pradesh, India

Date of Birth/Age :

23.01.1945

Date of Appointment :

01.04.2012

DIN No.:

05254905

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 05.06.2010

Names of Shareholders	No. of Shares
Sudhir Mehta	3554991
Sunanda Mehta	300000
Satish A. Gundecha	1
Ritika Mehta	2
Bhupendra Premchand Jain	1
Lalit V. Kothari	2
Arihant Mehta	2
Dilip Sanghvi	1
Total	3855000

As on 20.01.2011

Names of Allottees	No. of Shares
Sudhir Mehta	200000
Total	200000

As on 21.02.2012

Names of Allottees	No. of Shares
Sudhir Mehta	300000
Total	300000

As on 05.06.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	99.999
Other top fifty shareholders	0.001
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Automotive Seats, Automotive Interiors and Polyurethane Articles.

Products :

Products Descriptions	Item Code No
Automobile Seats and Parts	94012000
Motor Vehicle Parts	87089900
Furniture and Parts	84031090
Articles of P.U. Foam	NA

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity per annum	Installed Capacity per annum	Actual Production
a All types of Seats and parts	Nos.	709600.00	709600.00	782435.00
b Motor Vehicle Parts	Nos.	900000.00	900000.00	1579895.00
c Articles of P.U. Foam	Nos.	800000.00	800000.00	792987.00*
d Furniture & Parts	Set	75000.00	75000.00	55.00
e Automobile Body Including Cabs	Nos.	15375.00	15375.00	--

* Includes 723524 Nos. transferred to production for manufacture of seats and parts.

Notes: Installed capacity is estimated by the Chairman and accepted by the Auditors without verification.

GENERAL INFORMATION

Customers :

v Ashok Leyland

v Eicher

v Force Motors

v Man Force Trucks Private Limited

v Mahindra Navistar

v Mahindra Two Wheelers

v Mercedes-Benz

v Swaraj Mazda

v Tata

v Volvo

No. of Employees :

Not Available

Bankers :

v State Bank of India, Industrial Finance Branch, A.B. Road, Near GPO, Indore, Madhya Pradesh, India

v IDBI Bank Limited, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai – 400 005, Maharashtra, India

v ING Vysya Bank Limited, 9-1-3, M.G. Road, Indore, Madhya Pradesh, India

v IDBI Bank Limited, Pitampur

v ICICI Bank Limited

v HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Rupee term loans banks secured	(A) 185.261	160.378
Working capital loans banks secured	(B) 135.227	59.367
Loans taken for vehicles secured	(C) 7.032	3.900
Total	327.520	223.645

(A)

a) State Bank of India 125.834 millions

b) HDFC Bank Limited 59.427 millions

c) IDBI Bank Limited-Nil - (Due in next 12 months Rs.28.566 millions (Rs.19.750 millions)

Item no. (a) is secured by First charge over the company's entire fixed assets, (excluding assets financed by HDFC Bank) existing as well as proposed to be acquired

Item no. (b) is secured by equitable mortgage of property at Gulmohar Colony Indore

(B) Cash Credit Accounts from –

a) State Bank of India Secured by way of hypothecation of the company's stocks of raw materials, finished goods, stock in process, stores and spares, packing materials etc situated at all locations and book debts, receivables and other current assets - present and future.

(C) Vehicle Loans from –

a) ICICI Bank Limited 1.999 millions

b) HDFC Bank Limited 5.033 millions

c) Tempo Finance (West) Private Limited - Nil (Due in next 12 months Rs.2.043 millions (Rs.1.591 millions) Secured by hypothecation of respective vehicles.

Banking Relations :	--
Auditors :
Name :	P.G. Bhagwat Chartered Accountants
Address :	Suite No.102 Orchard, Dr. Pai Marg Baner, Pune – 411 045, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAZPA3362N
Subsidiary Company :	Perform Fitness Solutions Private Limited, India (w.e.f. 04.10.2010) CIN No.: U29299PN2008PTC131927
Other Related Parties :	v Force Motors Limited v Rizhome Industries Private Limited v Jaya Hind Industries Limited v Man Force Trucks Private Limited

CAPITAL STRUCTURE

After 29.09.2011

Authorised Capital : Rs.80.000 millions

Issued, Subscribed & Paid-up Capital : Rs.43.550 millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs.10/- each	Rs.80.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4055000	Equity Shares	Rs.10/- each	Rs.40.550 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		40.550	38.550	30.750
2] Share Application Money Pending Allotment		1.000	2.000	2.000
3] Reserves & Surplus		140.432	95.431	74.826
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		181.982	135.981	107.576
LOAN FUNDS
1] Secured Loans		327.520	223.645	207.435
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		327.520	223.645	207.435
DEFERRED TAX LIABILITIES		15.789	15.817	15.997
TOTAL		525.291	375.443	331.008
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		289.660	210.128	224.384
Capital work-in-progress		57.997	18.063	16.143
INVESTMENT		20.600	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	208.397	165.650	149.270
	Sundry Debtors	126.267	94.528	134.697
	Cash & Bank Balances	3.064	10.130	2.482
	Other Current Assets	0.016	0.092	0.043
	Loans & Advances	100.012	57.708	34.956
Total Current Assets		437.756	328.108	321.448
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	186.554	120.503	196.469
	Other Current Liabilities	82.596	54.563	32.169
	Provisions	11.572	5.790	2.329
Total Current Liabilities		280.722	180.856	230.967
Net Current Assets		157.034	147.252	90.481
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		525.291	375.443	331.008

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net	1116.107	840.558	653.591
		Other Income	51.748	21.874	10.234
		TOTAL (A)	1167.855	862.432	663.825
Less	EXPENSES
		Consumption materials changes inventories	818.850	599.297	612.364
		Manufacturing service costs	91.928	66.172
		Employee related expenses	86.925	67.587
		Administrative selling other expenses	36.570	42.132
		Prior period items	2.347	6.693
		TOTAL (B)	1036.620	781.881	612.364
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		131.235	80.551	51.461
Less	INTEREST FINANCIAL CHARGES (D)		39.507	29.728	29.689
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		91.728	50.823	21.772
Less/ Add	DEPRECIATION/ AMORTISATION (F)		26.551	21.974	19.006
	PROFIT BEFORE TAX (E-F) (G)		65.177	28.849	2.766
Less	TAX (H)		20.177	8.244	1.894
	PROFIT AFTER TAX (G-H) (I)		45.000	20.605	0.872
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		86.199	67.654	66.782
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	2.060	0.000
	BALANCE CARRIED TO THE B/S		131.199	86.199	67.654
	EARNINGS IN FOREIGN CURRENCY
		Exports on FOB basis	4.966	2.966	6.166
	TOTAL EARNINGS		4.966	2.966	6.166
	IMPORTS
		Raw Materials	32.892	21.303	50.085
		Plant & Machinery	26.177	0.000	2.401
		Others	3.822	0.047	0.068
	TOTAL IMPORTS		62.891	21.350	52.554
	Earnings Per Share (Rs.)
	- Basic		11.10	5.35	0.28
	- Diluted		11.56	6.20	0.28

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.85	2.39	0.13
Net Profit Margin (PBT/Sales)	(%)	5.84	3.43	0.42
Return on Total Assets (PBT/Total Assets}	(%)	8.96	5.36	0.51
Return on Investment (ROI) (PBT/Networth)		0.36	0.21	0.03
Debt Equity Ratio (Total Liability/Networth)		3.34	2.97	4.08
Current Ratio (Current Asset/Current Liability)		1.56	1.81	1.39

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	No
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	Yes
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter involved in	--
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

Note:

The registered office of the company has been shifted from 132B/2A, Ganesh Khind Road, Pune – 411 007, Maharashtra to the present address w.e.f. 16.10.2010.

OPERATIONAL REVIEW:

The Indian Commercial Vehicle Industry, after a period of slowdown, showed growth in the current Financial Year. This was reflected in an improvement in the Company’s turnover and resultant profitability. It is expected that, the Commercial Vehicle Industry will experience sustained growth in the coming Financial Year, which should result in improved operating performance of the Company. The focus continues to be on operational efficiency and quality upgradation. The Company has also added several new customers and product segments during the current Financial Year. The Company is in the midst of expansion programme to expand its production capacity.

CONTINGENT LIABILITY:

Particulars	31.03.2011 (Rs. in millions)
Excise Duty	33.621
Sales Tax	1.166
Labour law	Amount not ascertainable

Bankers Charges Report as per Registry

Corporate identity number of the company	U50300PN1996PLC100600
Name of the company	PINNACLE INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	No.26, Yashwant Ghatge Nagar Co-Operative Housing Society, Range Hills Road, Pune – 411 007, Maharashtra, India E-Mail: iut@eth.net
This form is for	Modification of charge
Charge identification number of the modified	10242329
Type of charge	Immovable Property
Particular of charge holder	CIN No.: L65920MH1994PLC080618 HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India E-Mail: RBBform8@hdfcbank.com
Nature of description of the instrument creating or modifying the charge	Memorandum Recording Past Transactions of Creation of Mortgage by Delivery of Title Deeds.
Date of instrument Creating the charge	02.02.2012
Amount secured by the charge	Rs.72.500 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest at the rate as may be communicated by the Bank from time to time. Terms of Repayment: On demand. Margin: As may be stipulated by the Bank from time to time. Extent and Operation of the charge: The Company accorded and gave oral consent to Bank to continue to hold and retain the title deeds (by way of Constructive delivery) in respect of its immovable properties as security for repayment of Rs.72.500 millions by the Company together with principal, interest, liquidated damages, costs, charges and expenses.
Short particulars of the property charged	Immovable property being lying and situated at 14 - 15, Gulmohar Colony, Near Saket Nagar, Indore
Particulars of the present modification	The charge shall now stand increased from Rs.62.500 millions to Rs.72.500 millions, in favour the Bank against the equitable mortgage of immovable properties being lying and situated at 14 - 15, Gulmohar Colony, Near Saket Nagar, Indore.

FIXED ASSETS:

v Freehold Land

v Leasehold Land

v Building

v Plant and Machinery

v Furniture and Fixture

v Vehicles

v Dies and Jigs

v Electric Installation

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.53.72
UK Pound	1	Rs.86.98
Euro	1	Rs.70.65

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	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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