MIRA INFORM REPORT

Report Date :

11.10.2012

IDENTIFICATION DETAILS

Name :	SHAH NANJI NAGSI EXPORTS PRIVATE LIMITED
Registered Office :	Post Box No. 311, Anaj Bazar, Opposite Amardeep Cinema Hall, Itwari, Nagpur – 440002, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.05.1997
Com. Reg. No.:	11-108153
Capital Investment / Paid-up Capital :	Rs.11.250 Millions
CIN No.: [Company Identification No.]	U51900MH1997PTC108153
TAN No.: [Tax Deduction & Collection Account No.]	NGPS02780B
PAN No.: [Permanent Account No.]	AADCS2306R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Food Grains and Oil Seed.
No. of Employees :	35 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 220000
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 but correct. The company can be considered for business dealings with some cautions.

NOTES :

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	A4 (Fund Based and Non-fund Based)
Rating Explanation	The risk prone credit quality assigned by ICRA it carry high credit risk.
Date	14.08.2012

Rating Agency Name	ICRA
Rating	BB (Cash Credit)
Rating Explanation	The inadequate credit quality it carry high credit risk.
Date	14.08.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Ashwin
Designation :	Director
Contact No.:	91-712-2732854
Date :	10.10.2012

LOCATIONS

Registered Office :	Post Box No. 311, Anaj Bazar, Opposite Amardeep Cinema Hall, Itwari, Nagpur – 440002, Maharashtra, India
Tel. No.:	91-712-2732854 / 2779261 / 2760294
Fax No.:	91-712-2762729
E-Mail :	nanji_ngp@sancharnet.in marketing@shahnn.com
Website :	http://www.shahnn.com
Area :	3500 sq. ft.
Location :	Owned
Factory :	Located at: Malegaon

DIRECTORS

As on: 10.08.2011

Name :	Mr. Ashwin Sudhir Shah
Designation :	Director
Address :	401, Palm Grove Shaikh Colony, Katol Road, Nagpur – 440013, Maharashtra, India
Date of Birth/Age :	08.05.1968
Date of Appointment :	20.05.1997
DIN No.:	00292716
Name :	Mr. Sudhir Nanji Shah
Designation :	Director
Address :	101, Palm Grove Sheikh Colony, Katol Road, Nagpur – 440013, Maharashtra, India
Date of Birth/Age :	10.05.1942
Date of Appointment :	20.05.1997
DIN No.:	00292774

KEY EXECUTIVES

Name :	Mr. Sushil Kawadkar
Designation :	Company Secretary
Address :	63, Income Tax Colony, Pratap Nagar, Nagpur – 440022, Maharashtra, India
Qualification :	B.Com, FCS
Tel. No.:	91-712-2228206
Mobile No.:	91-9422106889

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 10.08.2011

Names of Shareholders	No. of Equity Shares
Shah Sudhir Nanji(Karta) for Shah Sudhir Nanji (HUF)	9500
Shah Mrs. Madhuri	8500
Shah Maitrayi	1000
Shah Ashwin	14500
Shah Mrs. Bhavana	12000
Shah Javan	1000
Shah Shobhanbhai	1000
Shah Mrs. Kavya	1000
Shah Mrs. Kesarben	6000
Shah Shantiben	2250
Kenia Mrs. Shilpaben	2000
Kenia Devang	1000
Kenia Ku. Vaidehi	250
Mamania Mrs. Amita	2000
Mamania Ku. Shweta	1000
Shah Dr. Shantilal	2000
Shah Mrs. Manjula	2000
Shah Dr. Rupin	2000
Shah Mrs. Urvashi	2000
Shah Monish	2000
Shah Mrs. Vimalaben	1500
Jetex Carburettors Limited, India	5000
Shah Sudhir	18000
Total	97500

Names of Shareholders	No. of Preference Shares
Jain Rajesh Kumar	15000
Total	15000

Equity Share Break up (Percentage of Total Equity)

As on: 10.08.2011

Category	Percentage
Bodies corporate	7.00
Directors or relatives of directors	93.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Food Grains and Oil Seed.
Exports :
Products :	Food Grains Oil Seed
Countries :	South Africa European Countries
Terms :
Selling :	Cash and Credit (30 Days/ 60 days)
Purchasing :	Cash and Credit (30 Days/ 60 days)

PRODUCTION STATUS (As on: 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Niger Seed Sterilization Plant	M.T.	25000	25000	5485.49
Processing Plant of Food Grains	M.T.	75000	75000	NA

GENERAL INFORMATION

Suppliers :

• Bhagwandas Pradipnarayan, Kantabanji
• Chaturbhuj Sihare and Sons, Mandla
• Coastal India, Koraput
• Continental Roadways, Nagpur
• Ganesh Pauva and Mamara Factory, Bavla
• Gannapureddi Ganganna Company, Bhivaram
• Geeta Rice and Pulses Mill, Bavla
• Green and Green Agro Industries, Ahmedabad, Gujarat
• H M R Herbs, Raipur
• Indian Overseas, Bavla
• Jain Coal Services, Nagpur
• Kanhiyalal Kailash Kumar Rawat, Mandala (Madhya Pradesh)
• Kushagra Enterprises, NGP
• Maa Lakshmi Trading Company, Mynaguri

Customers :

Wholesalers and Retailers

No. of Employees :

35 (Approximately)

Bankers :

• Union Bank of India, Dhantoli Branch, Nagpur – 440012, Maharashtra, India
• State Bank of India, Industrial Finance Branch, Nagpur, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
UBI Bill Discounting		15.691
UBI Cash Credit		29.513
UBI EPC		108.402
Total	175.524	153.606
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Ashwin Trading Company		0.000
		20.000
Total	16.000	20.000

Banking Relations :	--
Auditors :
Name :	R. M. Shah and Company Chartered Accountants
Address :	Mahalaxmi Chambers, 21, Central Avenue, Darodkar Chowk, Nagpur – 440002, Maharashtra, India
Tel. No.:	91-712-2769542 / 2767045
PAN No.:	AAFHR2757C

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
150000	Equity Share	Rs.100/- each	Rs.15.000 Millions
50000	Preference Shares	Rs.100/- each	Rs.5.000 Millions
	Total		Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
97500	Equity Shares	Rs.100/- each	Rs.9.750 Millions
15000	12% Preference Shares	Rs.100/- each	Rs.1.500 Millions
	Total		Rs.11.250 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		11.250	9.000	7.500
2] Share Application Money		0.000	2.000	3.000
3] Reserves & Surplus		44.642	37.956	30.576
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		55.892	48.956	41.076
LOAN FUNDS
1] Secured Loans		175.524	153.606	147.717
2] Unsecured Loans		16.000	20.000	22.500
TOTAL BORROWING		191.524	173.606	170.217
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		247.416	222.562	211.293
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		31.877	34.884	39.074
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	111.005	131.710	59.830
	Sundry Debtors	85.084	100.788	86.249
	Cash & Bank Balances	18.784	1.477	4.673
	Other Current Assets	9.039	7.224	20.584
	Loans & Advances	39.421	33.467	40.610
Total Current Assets		263.333	274.666	211.946
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	46.336	87.033	39.469
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	1.458	0.148	0.644
Total Current Liabilities		47.794	87.181	40.113
Net Current Assets		215.539	187.485	171.833
MISCELLANEOUS EXPENSES		0.000	0.193	0.386
TOTAL		247.416	222.562	211.293

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
SALES
	Income	906.847	478.964	495.628
	Other Income	12.493	12.976	34.140
	Closing Stock	111.005	131.710	58.930
	TOTAL	1030.345	623.650	588.698
EXPENSES
	Office Expenses
	Administrative Expenses
	Advertising Expenses
	TOTAL	1024.723	619.448	545.664
PROFIT/ (LOSS) BEFORE TAX		5.622	4.202	(21.005)
TAX		1.351	0.000	0.113
PROFIT/ (LOSS) AFTER TAX		4.271	4.202	(21.138)
PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	21.454	42.390
Depreciation Reversed		NA	NA	0.301
APPROPRIATIONS
	Old Income Tax Paid	NA	NA	0.093
BALANCE CARRIED TO THE B/S		NA	NA	21.454
EARNINGS IN FOREIGN CURRENCY
Export Earnings		743.499	303.995	447.256
TOTAL EARNINGS		743.499	303.995	447.256
Earnings Per Share (Rs.)		41.96	26.81	--

Particulars	31.03.2012
Sales Turnover (Approximately)	1000.000

Expected Sales (2012-2013): Rs.1200.000 Millions

The above information has been parted by Mr. Ashwin

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.41	0.67	(3.59)
Net Profit Margin (PBT/Sales)	(%)	0.62	0.88	(4.24)
Return on Total Assets (PBT/Total Assets}	(%)	1.90	1.36	(8.37)
Return on Investment (ROI) (PBT/Networth)		0.11	0.09	(0.51)
Debt Equity Ratio (Total Liability/Networth)		4.28	5.33	5.12
Current Ratio (Current Asset/Current Liability)		5.51	3.15	5.28

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

(Rs in Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors	46.336	87.033	39.469
Total	46.336	87.033	39.469

Sundry Creditors Details [Partial Details]

(Rs in Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Bhagwandas Pradipnarayan, Kantabanji	0.017	0.199	0.000
Chaturbhuj Sihare and Sons, Mandla	0.911	0.000	0.000
Coastal India, Koraput	0.000	0.801	0.000
Continental Roadways, Nagpur	0.017	0.000	0.000
Ganesh Pauva and Mamara Factory, Bavla	0.000	0.137	0.000
Gannapureddi Ganganna Company, Bhivaram	0.065	0.000	0.023
Geeta Rice and Pulses Mill, Bavla	0.000	0.298	0.000
Green and Green Agro Industries, Ahmedabad, Gujarat	0.000	1.059	0.000
H M R Herbs, Raipur	0.000	4.000	0.000
Indian Overseas, Bavla	0.015	0.000	0.000
Jain Coal Services, Nagpur	0.116	0.000	0.000
Kanhiyalal Kailash Kumar Rawat, Mandala (Madhya Pradesh)	0.150	0.311	0.000
Kushagra Enterprises, NGP	0.213	0.020	0.002
Maa Lakshmi Trading Company, Mynaguri	0.328	0.481	0.000

Sr. No.	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	Yes
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	Yes
10]	Designation of contact person	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	Yes
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	Yes	Yes

OPERATION:

In this connection the Directors wish to point out that the sales of the company has increased this year. The total sales were Rs. 906.847 Millions during the year under report as against Rs. 478.964 Millions from previous year. The operations for the year resulted in net profit of Rs. 5.622 Millions as against net profit of Rs. 4.202 Millions in the previous year. The directors are very optimistic about enhancing the sales as well as profit in the coming year.

CONTINGENT LIABILITY:

The company has booked forward contracts for export amounted to USD 1,95,000 equivalent to Rs. 8.942 Millions may be treated as contingent liability.

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U51900MH1997PTC108153
Name of the company	SHAH NANJI NAGSI EXPORTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Post Box No. 311, Anaj Bazar, Opposite Amardeep Cinema Hall, Itwari, Nagpur – 440002, Maharashtra, India E-mail: nanji_ngp@hotmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10033440
Type of charge	Immovable property
Particular of charge holder	Union Bank of India, Dhantoli Branch, Nagpur – 440012, Maharashtra, India E-mail: sushilkawadkar@gmail.com
Nature of instrument creating charge	Release-cum-mortgage deed dated 27.03.2012
Date of instrument Creating the charge	27.03.2012
Amount secured by the charge	Rs.200.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest on 1. CC Limit of Rs. 25.000 Millions @ Base Rate+5% i.e. 15.5%, 2. Packing Credit Rs. 175.000 Millions @ Base Rate +1.25% i.e. 12.00%. Terms of Repayment Repayment on Demand. Margin Cash Credit (Hypothecation) Limit - 25% on Stock and 40% on Book Debts. Packing Credit -10%. W/W Import LC-25% W/W FDBP/FUDBP - NIL Buyers Credit -25%. W/W LG - 10% Extent and Operation of the charge Cash Credit = Against hypothecation of raw material in process and finished goods, stores. spares and book debts Packing Credit/FDBP/FUDBP = Against hypothecation of raw lacs materials, finished goods meant for export/ against purchase of export bills. Others The Company has taken earlier credit facilities of Rs. 290.000 Millions i.e. CC (Hypothecation) Rs. 50.000 Millions, and PC Rs. 240.000 Millions (including WW FDBP/FUDBP max. Rs. 240.000 Millions, Import LC Rs. 40.000 Millions, Buyers Credit Rs.30.000 Millions, LG Rs.40.000 Millions within the limit of Packing Credit). Now this modification the total limit has been decreased as Rs. 200.000 Millions i.e. CC (Hypothecation) Rs. 25.000 Millions, and PC Rs. 175.000 Millions (including WW FDBP/FUDBP max.Rs.175.000 Millions, Import LC Rs. 30.000 Millions, Buyers Credit Rs.24.000 Millions, BG Rs. 30.000 Millions.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All piece and parcel of land adm. 10491.74Sq. Mts (i.e. 5143.50 Sq. Mtr. out of Kh. No. 136/1 and 5348.24 Sq. Mtr. out of Kh.136/2) being Eastern portion of of the land bearing Kh. Survey No. 136/1, adm. about 0.80 Hectares i.e. 8000Sq.Mts. and Land Bearing Survey No. 136/2, adm. about 0.82 Hectares, i.e. 8200 Sq. Mts, together with the construction standing thereon covering a built up area i.e. Main Godown 21390 Sq. Ft and Staff quarter 5201 Sq. Ft and other present and future structure including all other easementary rights appurtenant and belonging there to situated at Village- Mahalgaon, Tahsil-Kamptee, District Nagpur
Date of instrument modifying the charge	21.12.2011
Particulars of the present modification	Now this modification the total limit has been decreased from Rs. 290.000 Millions to Rs. 200.000 Millions i.e. CC (Hypothecation) Rs. 25.000 Millions and Packing Credit Rs.175.000 Millions (including maximum WW FDBP/FUDBP Rs. 175.000 Millions, W/W Import LC Rs. 30.000 Millions, Buyers Credit Rs. 24.000 Millions, LG Rs. 30.000 Millions within the limit of Packing Credit).

FIXED ASSETS:

• Car
• Computer
• Electrical Equipments
• Furniture
• Plant and Machinery
• Scooter
• Land
• Site Development
• Building
• Warehouse
• Laboratory Equipments

AS PER WEBSITE DETAILS

Profile

FOUR GENERATIONS OF THE SAME FAMILY

First Generation - (1883 - 1967)

Late. Shri. Nagsi Hirji Shah (Founder)

The firm was established in the year 1919 by Late. Shri Nagsi Hirji Shah at Itwari, Nagpur in Central India.

Second Generation

The firm grew from strength to strength under the stewardship of the three sons of founders and partners of Subject

Late. Nanji Nagsi Shah

(Founder - Son) (1916-1980)

Late. Premji Nagsi Shah

(Founder - Son) (1933 - 1989)

Late. Vasantji Nagsi Shah

(Founder - Son) (1925 - 2001)

Third Generation

Mr. Sudhir Nanji Shah (Founder - Grandson)

Grand son of the founder. Present Director of the company. Inspiration behind foray into international trading.

Fourth Generation

Mr. Ashwin Shah (M.B.A. from Berkley, California)

Present Director of the company. Dynamic enthusiastic entrepreneur and has inherited the same high standards of ethics in business practices.

A simple statement of four generations of same family in the same trade reassures in unequivocal terms of :

- Experience

- Quality Assurance

- Market Knowledge

- Honesty and Integrity

In the International Commodity Trade scene, competitiveness and promptness at all levels is the key to emerge as a leader. Ethical standard of practice, transparency and fairness in dealing has earned them high esteem from the buyers, associates and service providers that is why most of the buyers have long lasting relations with them. The company is a government of India recognized star export house.

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 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.53.04
UK Pound	1	Rs.84.84
Euro	1	Rs.68.21

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	2
--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		29

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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