MIRA INFORM REPORT

Report Date :

28.02.2013

IDENTIFICATION DETAILS

Name :	AL NAFEES FROZEN FOOD EXPORTS PRIVATE LIMITED
Registered Office :	6, Central Lane, Bengali Market Export, New Delhi – 110 001
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.10.1987
Com. Reg. No.:	55-029635
Capital Investment / Paid-up Capital :	Rs.130.620 Millions
CIN No.: [Company Identification No.]	U74899DL1987PTC029635
TAN No.: [Tax Deduction & Collection Account No.]	DELA03173C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Frozen Buffalo Meat, Sheep Meat, Goat Meat, etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 2818000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Latest financials i.e. 2011-12 are missing from the government department from the previous year financials it seems that the company has recorded huge external borrowings. However, trade relations are reported as fair. Business is active. Payment terms are unknown. 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.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

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	CRISIL
Rating	BB (Cash Credit)
Rating Explanation	Moderate risk of default.
Date	22.12.2011

Rating Agency Name	CRISIL
Rating	A4+ (Bank Guarantee)
Rating Explanation	Minimal degree of safety it carry very high credit risk.
Date	22.12.2011

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.

LOCATIONS

Registered Office/ Head Office :	6, Central Lane, Bengali Market Export, New Delhi – 110 001, India
Tel. No.:	91-11-23318804/ 23318801/ 23318806/ 23318808
Fax No.:	91-11-23318815/ 23318819
E-Mail :	alnafees.anuj@yahoo.in alnafees@ndb.vsnl.net.in info@rmgcs.com anuj.arora@alnafeesgroup.in
Branch Office/ Cold Storage :	M-19, MIDC Industrial Area, Taloja, Navi Mumbai – 410 208, Maharashtra, India
Tel. No.:	91-22-2787025
Fax No.:	91-22-27401060
Factory 1 :	Hapur Road, Village Dasna, District Ghaziabad, Uttar Pradesh, India
Tel. No.:	91-120-2677856
Fax No.:	91-120-2677606
Factory 2 :	Village Satakpuri, Tehsil Punhana, Nooh, District Mewat, Haryana, India

DIRECTORS

As on: 29.09.2012

Name :	Mr. Mohammad Saleem Quraishi
Designation :	Director
Address :	6303, Idgah Road, Quresh Nagar, Sadar Bazar, New Delhi – 110 006, India
Date of Birth/Age :	20.04.1965
Date of Appointment :	03.07.2000
DIN No.:	01633070
Name :	Mr. Mohammad Mushrafeen Qureshi
Designation :	Director
Address :	6303, Idgah Road, Quresh Nagar, Sadar Bazar, New Delhi – 110 006, India
Date of Birth/Age :	11.04.1964
Date of Appointment :	30.09.2010
DIN No.:	01633191
Name :	Mr. Mohammed Mustaqeem Qureshi
Designation :	Director
Address :	6434, Idgah Road, Quresh Nagar, Sadar Bazar, New Delhi – 110 006, India
Date of Birth/Age :	01.05.1961
Qualification :	Matriculation
Date of Appointment :	30.10.1998
DIN No.:	01644301
Name :	Mr. Mohammed Atif
Designation :	Additional Director
Address :	6378 Qureshi Nagar Sadar Bazar, Delhi – 110006, India
Date of Birth/Age :	21.06.1979
Date of Appointment :	10.08.2012
DIN No.:	02411453
Name :	Mr. Mohammed Nafees Qureshi
Designation :	Director
Address :	7431, Idgah Road, Quresh Nagar, Sadar Bazar, New Delhi – 110 006, India
Date of Birth/Age :	03.01.1954
Date of Appointment :	30.09.2010
DIN No.:	02545702
Name :	Mr. Mohammed Muqeem Qureshi
Designation :	Director
Address :	6434, Idgah Road, Quresh Nagar, Sadar Bazar, New Delhi – 110 006, India
Date of Birth/Age :	01.01.1952
Date of Appointment :	30.09.2010
DIN No.:	02605033
Name :	Mr. Arham Qureshi
Designation :	Managing Director
Address :	6434, Idgah Road, Quresh Nagar, Sadar Bazar, New Delhi - 110 006, India
Date of Birth/Age :	17.08.1989
Date of Appointment :	15.01.2010
DIN No.:	02935871

MAJOR SHAREHOLDERS

As on: 29.09.2012

Names of Shareholders	No. of Shares
Mohammad Saleem Qureshi	20
Mohammad Mushrafeen Qureshi	20
Mohammed Mustaqeem Qureshi	919920
Mohammed Muqeem Qureshi	20
Mohammed Nafees Qureshi	20
Arham Qureshi	105
Al Tamash Exports Private Limited, India	386100
Total	1306205

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Bodies corporate	29.55
Directors or relatives of Directors	70.45
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Frozen Buffalo Meat, Sheep Meat, Goat Meat, etc.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Actual Production
Buffalo Meat	49566120.98
Mutton	1260873.26
MBM	9682800.00
Tallow	4789470.00
Hides	295446.00

GENERAL INFORMATION

Suppliers :

· AL Tamash Exports Private Limited

· AL Nafees Proteins Private Limited

· A.A. Engineering

· Al Kaif Industries

· Elder Instrument Private Limited

· Delhi Chamber of Commerce

· Decent Graphics

· Bombay Ammonia Sales Corporation

· Crown Sales

· Galaxy Polymers

· R.B. Contractors

· SGS India Private Limited

· Subhash Industries

· Star Engineering Works

· All India Frozen Food Carrier

· J.V. Cool Carriers

· Ocean Chemilube

· New Pest Control

· Shree Balaji and Company

· K.M. Road Lines

· New Indo Gulf Cool Carrier

· Vision Advertisement and Mrkt. Services

Customers :

· Prestige Food Exports

· M.S.M. and Company

· ABC Tanners

· ABNA Frozworld Trading Limited

· Al Afar Trading Company

· Al Khan Foodstuff LLC.

· Bader Nouri A. Kashmeeri Trading Company

· Balaji Soap Factory

· Chaudhary Soap and Chemicals

· DKP Logistic Solution

· Farm Fresh LLC

· Global Foods

· Glory Food International

· Golden Horn International Company

· HK Enterprises LLC

· Kuwait Free Trade Zone

· Vuhai Company Limited

· Yick Tat Trading Company

· Yousuf Al Akkad Sons Company

· S.K. Mantra International

· New Era Tannery Centre

· A.R. Enterprises

No. of Employees :

Not Available

Bankers :

· Corporation Bank, SME Branch, G-28/29, Sector 18, Noida – 201 301, Uttar Pradesh, India

· Corporation Bank (Joint charge with Central Bank of India), Mid Corporate Branch, G-28/29, Sector-18, Noida – 201 301, Uttar Pradesh, India

· Bank of Baroda

· Bank of India

· ICICI Bank Limited

· Punjab National Bank

· HDFC Bank Limited

· State Bank of India

· Syndicate Bank

· Yes Bank

· Citi Bank

· Corporation Bank (Joint charge with Central Bank of India), Mid Corporate Branch, G-28/29, Sector-18, Noida – 201 301, Uttar Pradesh, India

· Central Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
1. From Scheduled Bank (Secured against Hypothecation of stock, plant and machinery, land and building and personal guarantees of all Directors)
Central Bank PC A/c – 2996	267.216	0.000
Central Bank B/D A/c	31.920	0.000
Corporation Bank EDRA A/c	0.000	2.600
Corporation Bank EDRN	0.000	144.763
Corporation Bank ENRN	250.273	179.920
Corporation Bank EPRN	22.934	231.895
Corporation Bank PCRH	914.292	397.240
Corporation Bank Proche Car Loan	4.215	6.236
Corporation Bank Mercedes Benz Car Loan – 100002	2.769	0.000
Corporation Bank Mercedes Benz Car Loan – 100004	3.861	0.000
Corporation Bank Galaxy Toyota Loan	0.813	0.000
Corporation Bank Truck Loan	3.230	0.000
Corporation Bank Loan Account – 100007	1.324	0.000
Corporation Bank Term Loan Account	11.151	16.726
Corporation C/C A/C 80002	11.669	6.803
Form Others
ICICI Bank (Secured against hypothecation of cars)	4.088	6.447
Cholamandalam DBS Finance Limited	0.000	0.035
DCB Limited	0.000	0.109
Cholamandalam DBS Finance Limited (Secured against Hypothecation of Trucks)	1.807	3.775
HDFC Bank Limited (Secured against Hypothecation of Trucks)	0.462	0.715
HDFC Bank Limited (Secured against Hypothecation of Cars)	4.059	5.602
Total	1536.083	1002.866

Banking Relations :	--
Auditors :
Name :	Anil Kakar and Associates Chartered Accountants
Address :	C-2/16, 3^rd Floor, Janak Puri, New Delhi - 110 058, India
Tel. No.:	91-11-25532326-27
Mobile No.:	91-9810082150
Fax No.:	91-11-25545190
E-Mail :	kfmc@rediffmail.com
PAN.:	AAGPK4379E
Fully Owned Subsidiaries :	· Al-Nafees Leather Exports Private Limited (CIN No.: U19119DL2000PTC103717) · Al-Nafees Proteins Private Limited, India (CIN No.:U15116DL1998PTC091597) · Indus Punjab Frozen Foods Exports Private Limited, India (CIN No.: U15127DL1999PTC102732)
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· Al-Tamash Exports Private Limited, India (CIN No.: U01409DL1998PTC091589) · M.S.M and Company, India · Prestige Food Exports

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1310000	Equity Shares	Rs.100/- each	Rs.131.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1306205	Equity Shares	Rs.100/- each	Rs.130.620 Millions

Note: Issued Subscribed and Paid Up Share Capital

· 280000 Equity shares of Rs100/- Each Fully paid up issued for consideration in cash 28,000,000.00

· 180000 Equity Shares of Rs. 100 Each issued as 18,000,000.00 Bonus Shares by capitalization of Revaluation Reserve

· 386205 Equity Shares of Rs. 100 Each 38,620,500.00 Fully paid up issued for consideration in cash

· 4,60,000 Equity Shares of Rs. 100 each 46,000,000.00 (Bonus Shares by Capitalising Reserve and Surplus)

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		130.620	130.610	46.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		573.857	412.116	192.065
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		704.477	542.726	238.065
LOAN FUNDS
1] Secured Loans		1536.083	1002.866	768.192
2] Unsecured Loans		4.645	0.943	3.105
TOTAL BORROWING		1540.728	1003.809	771.297
DEFERRED TAX LIABILITIES		2.957	3.236	3.247
TOTAL		2248.162	1549.771	1012.609
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		536.629	401.454	342.490
Capital work-in-progress		10.911	3.690	14.912
INVESTMENT		70.837	51.300	51.300
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1810.437	752.571	707.544
	Sundry Debtors	734.906	800.376	804.300
	Cash & Bank Balances	34.431	31.535	23.036
	Other Current Assets	285.099	209.096	250.647
	Loans & Advances	178.874	89.277	34.456
Total Current Assets		3043.747	1882.855	1819.983
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1189.365	630.490	891.199
	Other Current Liabilities	117.311	95.409	284.579
	Provisions	107.286	63.629	40.298
Total Current Liabilities		1413.962	789.528	1216.076
Net Current Assets		1629.785	1093.327	603.907
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2248.162	1549.771	1012.609

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	6132.262	5276.350	NA
		Other Income	270.331	229.758	NA
		TOTAL	6402.593	5506.108	NA
Less	EXPENSES
		Increase/ Decrease in Stock	(1059.085)	(39.570)	NA
		Cost of Raw-Material Consumed	5943.702	4606.401	NA
		Purchases-Frozen Meat	484.461	77.756	NA
		Manufacturing, Administrative, Selling & Financial Expenses	717.200	650.865	NA
		TOTAL	6086.278	5295.452	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		316.315	210.656	NA
Less/ Add	DEPRECIATION/ AMORTISATION		54.829	48.231	NA
	PROFIT BEFORE TAX		261.486	162.425	99.012
Less	TAX		99.745	57.764	38.140
	PROFIT AFTER TAX		161.741	104.661	60.872
	EARNINGS IN FOREIGN CURRENCY
		Export of goods on FOB Basis	5461.058	4918.271	3231.377
	TOTAL EARNINGS		5461.058	4918.271	3231.377
	IMPORTS
		Components and Spares	0.000	0.444	0.875
		Capital Goods	1.292	6.438	10.280
	TOTAL IMPORTS		1.292	6.882	11.155
	Earnings Per Share (Rs.)		123.83	80.13	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.53	1.90	NA
Net Profit Margin (PBT/Sales)	(%)	4.26	3.08	NA
Return on Total Assets (PBT/Total Assets}	(%)	7.30	7.11	4.58
Return on Investment (ROI) (PBT/Networth)		0.37	0.30	0.42
Debt Equity Ratio (Total Debt/Networth)		2.19	1.85	3.24
Current Ratio (Current Asset/Current Liability)		2.15	2.38	1.50

LOCAL AGENCY FURTHER INFORMATION

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	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	Yes
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	No
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]	External Agency Rating, if available	Yes

UNSECURED LOAN:

(Rs. In Millions)

Particulars	As on 31.03.2011	As on 31.03.2010
Loan from Directors
i) Mohammad Mushrafeen Qureshi	0.543	0.452
ii) Mohammad Saleem Quraishi	0.045	0.026
iii) Mohammed Mustaqeem Qureshi	3.434	0.039
iv) Mohammed Muqeem Qureshi	0.381	0.155
v) Mohammed Nafees Qureshi	0.242	0.271
Total	4.645	0.943

BANKERS CHARGES REPORT AS PER REGISTRY:

Corporate identity number of the company	U74899DL1987PTC029635
Name of the company	AL NAFEES FROZEN FOOD EXPORTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	6, Central Lane, Bengali Market, New Delhi – 110001, India anuj.arora@alnafeesgroup.in
This form is for	Creation of charge
Type of charge	Others (Corporate Gurantee)
Particular of charge holder	Bank Of India, Dahi Chowki Branch, Dixit Building, Unnao – 209801, Uttar Pradesh, India dahichauki.kanpur@bankofindia.co.in
Nature of instrument creating charge	Deed of Gurantee (OD-194)
Date of instrument Creating the charge	01.01.2013
Amount secured by the charge	Rs. 125.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC-3.25% over Bank Rate, presently 13.75% p.a TL-3.75% over Bank Rate, presently 14.25% p.a with monthly rests or at such other rates as may be notified by the Bank to the Borrower from time to time. Terms of Repayment 1. Working Capital -Repayable on Demand 2. Term Loan of Rs.45.000 Millions shall be repayable in 62 equal monthly installments of Rs10,36,031.00 each commencing from February '2013. Interest to be serviced as and when charged. Margin 25% On Stocks 30%-Book Debts Extent and Operation of the charge M/S AL NAFEES FROZEN FOOD EXPORTS PRIVATE LIMITED has executed Corporate Gurantee to secure repayment of credit facilities aggregating to Rs.125.000 Millions granted by the to Subject.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Subject has executed Corporate Gurantee to secure repayment of credit facilities agg.to Rs.125.000 Millions granted by the to Subject.

FIXED ASSETS:

· Air Conditioner

· Auto Rickshaw

· Boiler

· Computer

· Cycle

· Electrical Equipment

· Factory Building (Dasna)

· Factory Equipments

· Fans and Fittings

· Furniture and Fixtures

· Generator

· Land and Site Development

· Motor Cars

· Office Equipments

· Flat

· Office Premises

· Plant and Machinery

· Refrigerator

· Rendering Plant (Building)

· Rendering Plant (Plant and Machinery)

· Scooter/ Motor Cycle

· Television

· Invertors

· Truck and Tractors

· Typewriters

· Xerox Machine

· Land

· Computer Printers and Softwares

· R.O. Plant

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 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.54.06
UK Pound	1	Rs.82.15
Euro	1	Rs.70.61

INFORMATION DETAILS

Report Prepared by :

RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	5
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		34

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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