MIRA INFORM REPORT

Report Date :

21.06.2013

IDENTIFICATION DETAILS

Name :	SYNERGY STEELS LIMITED
Registered Office :	55-B, Rama Road, Industrial Area, New Delhi - 110015
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	13.04.1973
Com. Reg. No.:	55-210670
Capital Investment / Paid-up Capital :	Rs. 93.890 Millions
CIN No.: [Company Identification No.]	U27107DL1973PLC210670
TAN No.: [Tax Deduction & Collection Account No.]	DELS16643E
PAN No.: [Permanent Account No.]	AAGCS1923D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Supplier of Steel, Stainless Steels, Steels Bars, Stripes, Sheets.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 3500000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Sales of the company have been growing but profits are very insignificant compared to the turnover figure. Trade relations are fair. Business is active. Payment terms are usually correct. The company can be considered 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

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

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 :	55-B, Rama Road, Industrial Area, New Delhi – 110015, India
Tel. No.:	91-11-25934261/ 32597555
Fax No.:	Not available
E-Mail :	tiwari.arvind@synergysteels.com

DIRECTORS

As on: 30.09.2012

Name :

Mr. Subhash C. Kathuria

Designation :

Managing director

Address :

3, Poorvi Marg, Vasant Vihar, New Delhi – 11057, India

Date of Birth/Age :

02.06.1947

Date of Appointment :

01.10.2009

DIN No.:

00125337

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1983PTC016057	Navin-Vikas Private Limited	Director	18/10/1985	18/10/1985	-	Active	NO
2	U74899DL1985PTC022507	Geetanjali Properties Private Limited	Director	14/11/1985	14/11/1985	-	Active	NO
3	U74899DL1986PTC023812	Basera Properties Private Limited	Director	21/04/1986	21/04/1986	-	Active	NO
4	U27107RJ1977PTC001746	Alwar Rolling Mills Private Limited	Director	11/12/1990	11/12/1990	18/02/2008	Active	NO
5	U27107DL1973PLC210670	Synergy Steels Limited	Managing director	01/10/2009	19/12/1990	-	Active	NO
6	U74899DL1987PTC030022	Ramnika Estates Private Limited	Director	01/07/1997	01/07/1997	-	Active	NO
7	U70101DL1997PTC086659	Aakar Technobuild Private Limited	Director	01/07/1997	01/07/1997	-	Active	NO
8	U24239DL1997PTC089350	Life Medicare And Biotech Private Limited	Director	29/08/1997	29/08/1997	-	Active	NO
9	U27105DL1999PTC100029	Kathuria Special Steels Rolling Mill Private Limited	Director	31/05/1999	31/05/1999	-	Amalgamated	NO
10	U27109DL2004PTC127593	Synergy Ispat Private Limited	Director	15/07/2004	15/07/2004	-	Active	NO
11	U27109DL2003PTC123464	Kathuria Castings Private Limited	Additional director	11/06/2010	20/08/2004	-	Active	NO
12	U27106DL2005PTC143027	Synergy Global Steel Private Limited	Director	28/11/2005	28/11/2005	-	Active	NO
13	L45201DL1990PLC040945	Parsvnath Developers Limited	Director	19/05/2006	11/03/2006	30/03/2009	Active	NO
14	U70101DL1987PTC026676	Himalaya Estate Private Limited	Director	10/05/2006	10/05/2006	-	Active	NO
15	U72200DL2000PTC106450	Wonder Software Technologies Private Limited	Director	18/08/2006	18/08/2006	-	Active	NO
16	U45201DL2005PTC132530	Rpk Builders Private Limited	Director	04/09/2006	04/09/2006	24/08/2012	Active	NO
17	U70109DL2006PTC153390	Miracle Buildwell Private Limited	Director	25/01/2007	25/01/2007	08/02/2007	Active	NO
18	U85100DL2007PTC163547	Fresh Pet Private Limited	Director	17/05/2007	17/05/2007	10/10/2011	Active	NO
19	U74999DL2004PTC127110	Greenlam Properties Private Limited	Director	25/09/2008	14/11/2007	14/06/2012	Active	NO
20	U74899DL1995PTC065408	Sharestreet (India) Private Limited	Director	05/12/2007	05/12/2007	06/08/2012	Active	NO
21	U11201DL2008PTC175813	Synergy Oil and Gas Exploration Private Limited	Director	25/03/2008	25/03/2008	-	Active	NO
22	L65999DL1984PLC019684	Chamak Holdings Limited	Director	29/09/2010	14/08/2010	-	Active	NO

Name :

Mr. Subhash Jain

Designation :

Whole-time director

Address :

H-84-85, Sector-16, Rohini, New Delhi, India

Date of Birth/Age :

18.08.1951

Date of Appointment :

01.02.2011

DIN No.:

00176960

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U27107DL1973PLC210670	Synergy Steels Limited	Whole-time director	01/02/2011	17/12/2003	-	Active	NO
2	U24239DL1997PTC089350	Life Medicare And Biotech Private Limited	Additional director	16/06/2008	16/06/2008	-	Active	NO
3	U27105DL1999PTC100029	Kathuria Special Steels Rolling Mill Private Limited	Additional director	10/01/2012	10/01/2012	-	Amalgamated	NO
4	U27109DL2004PTC127593	Synergy Ispat Private Limited	Additional director	13/02/2012	13/02/2012	-	Active	NO

Name :

Mr. Satish Kumar Seth

Designation :

Director

Address :

1216 Pocket-1, Sector-6, Vasant Kunj, New Delhi – 110070, India

Date of Birth/Age :

30.03.1955

Date of Appointment :

29.09.2012

DIN No.:

01769534

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL2004PLC130270	Som Tobacco India Limited	Director	01/02/2005	01/02/2005	-	Active	NO
2	U16009DL2007PLC157582	Som Sugandh Industries Limited	Director	31/08/2007	31/08/2007	-	Active	NO
3	U70101DL2010PTC197982	Krrish Greenhomes Private Limited	Director	02/12/2010	02/12/2010	-	Active	NO
4	U45400DL2010PTC202195	Jasmine Buildmart Private Limited	Director	28/09/2011	13/01/2011	-	Active	NO
5	U45400DL2008PTC175331	Brahma City Private Limited	Additional director	17/05/2011	17/05/2011	09/08/2012	Active	NO
6	U27107DL1973PLC210670	Synergy Steels Limited	Director	29/09/2012	28/11/2011	-	Active	NO
7	U70200DL2010PTC203692	Krrish Realtech Private Limited	Additional director	26/12/2011	26/12/2011	-	Active	NO
8	U45400DL2010PTC203693	Krrish Realtynirman Private Limited	Director	21/09/2012	22/05/2012	-	Active	NO
9	U51909WB2010PTC149011	Wrinkle Tradecomm Private Limited	Director	03/10/2012	03/10/2012	05/11/2012	Active	NO
10	U51909WB2009PTC132993	Chin Purni Sales Private Limited	Director	03/10/2012	03/10/2012	05/11/2012	Active	NO
11	U74120WB2010PTC149779	Kamalkunj Investment Consultants Private Limited	Director	05/10/2012	05/10/2012	05/11/2012	Active	NO
12	U45201DL2005PTC138574	Raj Buildmart Private Limited	Additional director	31/12/2012	31/12/2012	-	Active	NO

KEY EXECUTIVES

Name :	Sh. Arvind Kumar Tiwari
Designation :	Company Secretary
Address :	194 A, Ward No. 2410, Shivalik Apartment, Mehrauli, New Delhi – 110030, India
Date of Birth/Age :	03.05.1972
Date of Appointment :	24.01.2011
PAN No.:	ACZPT8825D

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2012

Names of Shareholders	No. of Shares
S.C Kathuria	5097660
Anita Kathuria	447768
Monica Sareen	5000
Yasha Sood	65000
Rimple Lohia	5000
Anubhav Kathuria	631000
S. C. Kathuria (HUF)	98700
Anita International (proprietor SCK)	500000
Anita international (proprietor SCK)	500000
Alwar Rolling Mills Private Limited	200000
Surya Finvest Private Limited	1081215
Kathuria Castinq Private Limited	325000
B K Lai	10
DC Pandey	10
Ram Talwar	10
M.L. Aggarwal	10
Alka Impex	245000
Alka Creation Private limited	50000
Katyani Image (India) Private Limited	37648
Mangal Kafas Services Private Limited	25000
Soft Indiqo Sowftware Private Limited	25000
Himalya Estate Private Limited	50000
Total	9389031

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2012

Category	Percentage
Bodies corporate	32.35
Directors or relatives of directors	67.65
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier of Steel, Stainless Steels, Steels Bars, Stripes, Sheets.

Products :

· Steel

· Stainless Steels

· Steels Bars

· Stripe

ITC Code	Product or Services
7218	Stainless Steel In Ingots or Other Primary
72189910	Billets And Flats

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Indian Overseas Bank, 70 Glolf Link, New Delhi - 110003, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Other loans and advance	0.249	0.716
Working capital loans from banks	259.643	249.910
Total	259.892	250.626

Banking Relations :	--
Auditors :
Name :	B. Bhushan and Company Chartered Accountants
Address :	117, New Delhi House, 27, Barakhamba Road, New Delhi-110001, India
E-Mail :
PAN No.:	AAIPA0327Q
Related Parties :	· Life Medicare and Biotech Private Limited CIN No. U24239DL1997PTC089350 · Kathuria Castings Private Limited CIN No. U27109DL2003PTC123464 · Ramnika Estates Private Limited CIN No. U74899DL1987PTC030022 · Geetanjali Properties Private Limited CIN No. U74899DL1985PTC022507 · Kathuria Special Steels Rolling Mill Private Limited CIN No. U27105DL1999PTC100029 · Synergy Global Steel Private Limited CIN No. U27106DL2005PTC143027 · Alwar Rolling Mills Private Limited CIN No. U27107RJ1977PTC001746 · Ascent Vyapaar Private Limited CIN No. U51909WB2005PTC101582 · Vibrant vyapaar Private Limited CIN No. U51909WB2005PTC101628 · R.P.K. Builders Private Limited · Aakar Technobuild Private Limited · Synergy Oil and Gas Explorer Private Limited

CAPITAL STRUCTURE

As on: 30.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10750000	Equity Shares	Rs.10/- each	Rs.107.500 Millions
20000	Preference Shares	Rs.100/- each	Rs. 2.000 Million
	Total		Rs. 109.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9389031	Equity Shares	Rs.10/- each	Rs. 93.890 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	93.890	86.833
(b) Reserves & Surplus	794.713	645.540
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	144.134
(3) Non-current liabilities
(a) long-term borrowings	0.249	0.716
(b) Deferred tax liabilities (Net)	15.031	12.874
(c) Other long term liabilities	0.271	15.339
(d) long-term provisions	2.575	2.089
(4) Current liabilities
(a) Short term borrowings	316.493	265.933
(b) Trade payables	173.919	147.306
(c) Other current liabilities	81.171	199.961
(d) Short-term provisions	7.392	6.777
TOTAL	1485.704	1527.502
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	412.424	397.398
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.713	3.608
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.278	2.821
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	74.482	85.106
(e) Other Non-current assets	53.184	54.181
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	473.364	501.383
(c) Trade receivables	360.808	355.053
(d) Cash and cash equivalents	35.272	49.682
(e) Short-term loans and advances	74.935	78.013
(f) Other current assets	0.244	0.257
TOTAL	1485.704	1527.502

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		86.359
2] Share Application Money		178.634
3] Reserves & Surplus		622.446
4] (Accumulated Losses)		0.000
NETWORTH		887.439
LOAN FUNDS
1] Secured Loans		115.392
2] Unsecured Loans		37.323
TOTAL BORROWING		152.715
DEFERRED TAX LIABILITIES		12.372
TOTAL		1052.526
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		416.297
Capital work-in-progress		7.382
INVESTMENT		12.869
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	400.300
	Sundry Debtors	342.799
	Cash & Bank Balances	35.170
	Other Current Assets	0.000
	Loans & Advances	165.767
Total Current Assets		944.036
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	117.941
	Other Current Liabilities	195.536
	Provisions	14.581
Total Current Liabilities		328.058
Net Current Assets		615.978
MISCELLANEOUS EXPENSES		0.000
TOTAL		1052.526

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operation	3712.378	3293.144	3132.210
		Other Income	10.670	2.981	10.789
		TOTAL (A)	3723.048	3296.125	3142.999
Less	EXPENSES
		Cost of material consumed	2964.263	2752.554
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	48.963	(67.927)
		Employee benefit expenses	28.137	22.136
		Other expenses	583.401	497.474
		TOTAL (B)	3624.764	3204.237	3057.595
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		98.284	91.888	85.404
Less	FINANCIAL EXPENSES (D)		17.167	15.215	19.418
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		81.117	76.673	65.986
Less/ Add	DEPRECIATION/ AMORTISATION (F)		29.161	26.720	25.674
	PROFIT BEFORE TAX (E-F) (G)		51.956	49.953	40.312
Less	TAX (H)		17.069	16.463	14.221
	PROFIT AFTER TAX (G-H) (I)		34.887	33.490	26.091
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		120.361	86.871	0.000
	BALANCE CARRIED TO THE B/S		155.248	120.361	86.871
	Earnings Per Share (Rs.)		3.98	3.87	3.30

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.93	1.01	0.83
Net Profit Margin (PBT/Sales)	(%)	1.40	1.51	1.29
Return on Total Assets (PBT/Total Assets}	(%)	3.50	3.28	2.97
Return on Investment (ROI) (PBT/Networth)		0.06	0.06	0.04
Debt Equity Ratio (Total Debt/Networth)		0.36	0.31	0.17
Current Ratio (Current Asset/Current Liability)		1.63	1.59	2.88

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	No
18]	Major customers	No
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
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	No

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
Intercorporate borrowing	0.900	14.073
Loans and advance from director	51.350	0.950
Loans and advance from others	4.600	1.000
Total	56.850	16.023

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U27107DL1973PLC210670
Name of the company	SYNERGY STEELS LIMITED
Address of the registered office or of the principal place of business in India of the company	55-B, Rama Road, Industrial Area, New Delhi – 110015, India Email-id - tiwari.arvind@synergysteels.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90070905
Type of charge	Immovable property Any interest in immovable property Book debts Movable property (not being pledge)
Particular of charge holder	Indian Overseas Bank, 70 Glolf Link, New Delhi - 110003, India Email-id - golfbr@delirc01.iobjobnet.co.in
Nature of instrument creating charge	As per the letter dated 19.04.2013
Date of instrument Creating the charge	19.04.2013
Amount secured by the charge	Rs. 450.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest NA Terms of Repayment NA Margin As per the Sanction letter Extent and Operation of the charge As per the Sanction letter
Short particulars of the property or asset(s) charged (including complete address and location of the property)	NA

FIXED ASSETS

· Land and Building

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Office equipment

· Computer equipments

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. 59.71
UK Pound	1	Rs. 92.21
Euro	1	Rs. 79.19

INFORMATION DETAILS

Report Prepared by :

DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	6
--CREDIT LINES	1~10	8
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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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