MIRA INFORM REPORT

Report Date :

26.08.2014

IDENTIFICATION DETAILS

Name :	ROLL MILL INDUSTRIES LIMITED
Registered Office :	Plot No. 37, Pocket 1, 3^rd Floor, Jasola New Delhi, Delhi- 110025
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	18.11.1982
Com. Reg. No.:	55-116514
Capital Investment / Paid-up Capital :	Rs.28.716 Million
CIN No.: [Company Identification No.]	U29299DL1982PLC116514
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Hot Steel Rolling Mill Plants
No. of Employees :	50 ( Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 130000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Rating reflects moderate financial risk profile due to low reserves and sharp dip in sales turnover of the company in the year 2013-2014 due to unfavorable market condition. However, Trade relation are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing with some caution.

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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

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. Pradeep Mahajan
Designation :	Directors
Contact No.:	91-9810006412
Date :	16.08.2014

LOCATIONS

Registered Office :	Plot No. 37, Pocket 1, 3^rd Floor, Jasola New Delhi, Delhi- 110025,India
Tel. No.:	91-120-3082555/3082562
Mobile No.:	91-9810006412 (Mr. Pradeep )
Fax No.:	91-120-2440145
E-Mail :	pradeep_rollmill@yahoo.co.in
Website :	Not Available
Area :	2,000 Sq. Ft.
Location :	Owned
Factory Office :	E- 30-31, sector- 11,Noida -201301, Uttar Pradesh ,India
Mob No.:	91-9810006412 (Mr. Pradeep )
Tel. No.:	91-120-3082555/3082562
Fax No.:	91-120-2440145
E-Mail :	pradeep_rollmill@yahoo.co.in
Area :	Owned
Location :	4000 Sq. M

DIRECTORS

As on 30.09.2013

Name :

Pradeep Mahajan

Designation :

Director

Address :

B- 43, Sector- 51, Noida U.P,- 201301,New Delhi ,India

Date of Birth/Age :

19.07.1967

Date of Appointment :

23.04.1992

DIN No.:

01256010

Other Director ship

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	U29299DL1982PLC116514	ROLLMILL INDUSTRIES LIMITED	Whole-time director	23/04/1992	23/04/1992	-	Active	NO
2	U74899DL1972PTC005939	MODULE TOOLS AND GAUGES PRIVATE LIMITED	Director	16/08/1994	16/08/1994	-	Active	NO
3	U65910DL1996PLC075996	SMRITI AUTOMOBILES LIMITED	Director	02/02/1996	02/02/1996	-	Active	NO
4	U74899DL1983PTC016296	NOBO SHOE COMPANY PRIVATE LIMITED	Director	21/08/2000	21/08/2000	-	Active	NO
5	U72200DL2005PTC134942	SOMUYA COMPUTECH PRIVATE LIMITED	Director	13/04/2005	13/04/2005	-	Active	NO
6	U45201DL1998PTC091669	SALVAZE PROPERTIES PRIVATE LIMITED	Director	09/06/2005	09/06/2005	-	Active	NO
7	U45400DL2008PTC182692	SATVIK INFRASTRUCTURE PRIVATE LIMITED	Director	05/02/2009	05/02/2009	-	Active	NO
8	U45400DL2010PTC199627	INLIFE BUILDTECH PRIVATE LIMITED	Director	13/04/2010	13/04/2010	-	Active	NO
9	U72900DL2010PTC201119	ELITE WEBTECH PRIVATE LIMITED	Director	13/04/2010	13/04/2010	-	Active	NO
10	U45200DL2009PTC197137	GSI CONSTRUCTIONS (INDIA) PRIVATE LIMITED	Additional director	09/07/2011	09/07/2011	-	Active	NO
11	U30000DL2011PTC224172	SUNLITE WEBTECH PRIVATE LIMITED	Director	25/08/2011	25/08/2011	-	Active	NO

Name :

Ram lubhaya Mahajan

Designation :

Director

Address :

B- 43, Sector- 51, Noida U.P,- 201301,New Delhi ,India

Date of Birth/Age :

05.02.1942

Date of Appointment :

18.11.1982

DIN No.:

02008119

Other Director ship

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	U29299DL1982PLC116514	ROLLMILL INDUSTRIES LIMITED	Whole-time director	18/11/1982	18/11/1982	-	Active	NO
2	U74899DL1972PTC005939	MODULE TOOLS AND GAUGES PRIVATE LIMITED	Director	08/07/1995	08/07/1995	-	Active	NO
3	U65910DL1996PLC075996	SMRITI AUTOMOBILES LIMITED	Director	02/02/1996	02/02/1996	-	Active	NO
4	U74899DL1983PTC016296	NOBO SHOE COMPANY PRIVATE LIMITED	Director	14/10/2000	14/10/2000	-	Active	NO
5	U45400DL2010PTC199627	INLIFE BUILDTECH PRIVATE LIMITED	Director	13/04/2010	13/04/2010	-	Active	NO

Name :

Prachi Mahajan

Designation :

Director

Address :

B- 43, Sector- 51, Noida U.P,- 201301,New Delhi ,India

Date of Birth/Age :

08.02.1968

Date of Appointment :

22.11.2005

DIN No.:

02008174

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	U74899DL1972PTC005939	MODULE TOOLS AND GAUGES PRIVATE LIMITED	Director	08/07/1995	08/07/1995	-	Active	NO
2	U65910DL1996PLC075996	SMRITI AUTOMOBILES LIMITED	Director	02/02/1996	02/02/1996	-	Active	NO
3	U74899DL1983PTC016296	NOBO SHOE COMPANY PRIVATE LIMITED	Director	01/02/2002	01/02/2002	-	Active	NO
4	U72200DL2005PTC134942	SOMUYA COMPUTECH PRIVATE LIMITED	Director	13/04/2005	13/04/2005	-	Active	NO
5	U45201DL1998PTC091669	SALVAZE PROPERTIES PRIVATE LIMITED	Director	09/06/2005	09/06/2005	-	Active	NO
6	U29299DL1982PLC116514	ROLLMILL INDUSTRIES LIMITED	Whole-time director	22/11/2005	22/11/2005	-	Active	NO
7	U45400DL2008PTC182692	SATVIK INFRASTRUCTURE PRIVATE LIMITED	Director	05/02/2009	05/02/2009	-	Active	NO
8	U72900DL2010PTC201119	ELITE WEBTECH PRIVATE LIMITED	Director	13/04/2010	13/04/2010	-	Active	NO

Name :

Smriti Mahajan

Designation :

Director

Address :

B- 43, Sector- 51, Noida U.P,- 201301,New Delhi ,India

Date of Birth/Age :

21.01.1992

Date of Appointment :

01.04.2010

DIN No.:

03064413

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	U29299DL1982PLC116514	ROLLMILL INDUSTRIES LIMITED	Director	01/04/2010	01/04/2010	-	Active	NO
2	U72900DL2010PTC201119	ELITE WEBTECH PRIVATE LIMITED	Director	14/05/2010	14/05/2010	-	Active	NO
3	U45400DL2010PTC199627	INLIFE BUILDTECH PRIVATE LIMITED	Director	14/05/2010	14/05/2010	-	Active	NO
4	U45200DL2009PTC197137	GSI CONSTRUCTIONS (INDIA) PRIVATE LIMITED	Additional director	09/07/2011	09/07/2011	-	Active	NO
5	U30000DL2011PTC224172	SUNLITE WEBTECH PRIVATE LIMITED	Director	25/08/2011	25/08/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
R.L Mahajan	1373600
Pradeep Mahajan	1147840
Prachi Mahajan	209440
Geeta Mahajan	136000
Sanjana Mahajan	3400
Prabhha Mahajan	680
N.K. Mahajan	680
TOTAL	2871640

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Hot Steel Rolling Mill Plants
Products :	· Roughing Mill Stand · Roughing Mill Gear Box · High Speed Flywheel · 12” Intimidate Stands · Reduction Gear Box · Reduction Cum Pinion Stand · Cont. Stand On Roller Bearing · Fixed Type Shear · Angle Straghtining Machine · Mechanical Pusher · Flying Shear · Cont. Horizontal Stand · Vertical Rolling Mill Stand · Breaking Pinch Roll · Automatic Cooling Bed · Two Output Helical Gear Box · Gear Coupling
Exports :
Countries :	· Africa · Bangladesh · Nepal · Srilanka
Terms :
Selling :	Cash / Credit / LC
Purchasing :	Cash /Credit

GENERAL INFORMATION

Suppliers :

P.G. Engineering Company

Customers :

Rathi Group Of Companies

No. of Employees :

50 ( Approximately)

Bankers :

· Vijaya Bank, Ansari Road, New Delhi, India

· HDFC Bank Limited

· ICICI Bank Limited

Facilities :

Secured Loan	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
HDFC BANK LIMITED (Car Loan )	0.607	1.152
ICICI BANK LIMITED (Car Loan -5)	0.660	1.252
SHORT TERM BORROWINGS
HDFC BANK LIMITED	3.062	0.414
VIJYA BANK	-	1.822
Total	4.329	4.640

Auditors :
Name :	S.C. Mehta and Associates Chartered Accountant
Address :	1E/12,3^rd Floor, Sewak House, Jhandewalan Extension, New Delhi- 11055 India
PAN NO.:	ACCFS6133J

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital

No. of Shares	Type	Value	Amount
3,500,000	Equity share	Rs. 10/- each	Rs. 35.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,871,640	Equity Share	Rs. 10/-each	Rs.28.716 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	28.717	28.717	28.717
(b) Reserves & Surplus	5.003	3.175	2.169
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	33.720	31.892	30.886
(3) Non-Current Liabilities
(a) long-term borrowings	1.267	2.405	2.380
(b) Deferred tax liabilities (Net)	0.000	0.000	0.107
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	1.267	2.405	2.487
(4) Current Liabilities
(a) Short term borrowings	3.063	2.237	0.000
(b) Trade payables	44.075	33.434	57.568
(c) Other current liabilities	31.834	48.612	43.502
(d) Short-term provisions	1.872	1.689	7.929
Total Current Liabilities (4)	80.844	85.972	108.999
TOTAL	115.831	120.269	142.372
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	36.897	35.181	32.955
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.289	0.141	0.000
(d) Long-term Loan and Advances	1.751	1.751	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	38.937	37.073	32.955
(2) Current assets
(a) Current investments
(b) Inventories	10.546	13.546	13.218
(c) Trade receivables	15.317	17.367	15.330
(d) Cash and cash equivalents	0.394	0.663	14.313
(e) Short-term loans and advances	50.637	51.620	66.556
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	76.894	83.196	109.417
TOTAL	115.831	120.269	142.372

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	118.220	69.311	179.884
		Other Income	4.887	8.339	1.876
		TOTAL (A)	123.107	77.650	181.760
Less	EXPENSES
		Cost of Materials Consumed	109.901	64.006	169.283
		Employees benefits expense	4.476	4.961	5.195
		Other expenses	2.939	2.743	2.181
		TOTAL (B)	117.316	71.711	176.659
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5.791	5.939	5.101
Less	FINANCIAL EXPENSES (D)		0.978	1.230	0.451
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.813	4.709	4.650
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.094	2.706	2.584
	PROFIT BEFORE TAX (E-F) (G)		2.719	2.003	2.066
Less	TAX (H)		0.891	0.997	0.644
	PROFIT AFTER TAX (G-H) (I)		1.828	1.006	1.422
	Earnings Per Share (Rs.)		064	0.35	0.50

Particulars	31.03.2014
Sales Turnover	65.500
	Steel Marketed Is Down

The above information has been parted by Mr. Pradeep Mahajan.

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.48	1.30	0.78
Net Profit Margin (PBT/Sales)	(%)	2.30	2.89	1.15
Return on Total Assets (PBT/Total Assets}	(%)	2.35	1.67	1.45
Return on Investment (ROI) (PBT/Networth)		0.08	0.06	0.07
Debt Equity Ratio (Total Liability/Networth)		0.13	0.15	0.08
Current Ratio (Current Asset/Current Liability)		0.95	0.97	1.00

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	28.717	28.717	28.717
Reserves & Surplus	2.169	3.175	5.003
Net worth	30.886	31.892	33.720
long-term borrowings	2.380	2.405	1.267
Short term borrowings	0.000	2.237	3.063
Total borrowings	2.380	4.642	4.330
Debt/Equity ratio	0.077	0.146	0.128

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	179.884	69.311	118.220
		-61.469	70.565

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	179.884	69.311	118.220
Profit	1.422	1.006	1.828
	0.79%	1.45%	1.55%

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	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 four years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	Yes
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	Yes
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	No
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

NO INDEX OF CHARGES

* Date of charge modification

FIXED ASSETS

· Factory Plot

· Office Flat

· Plot Sector -12

· Commercial Plot

· Factory Building

· Air Conditioners

· Electric Equipment

· Electric Motor

· Generator

· Hand Tools

· Machinery

· Transformer

· Water Cooler

· Electric Fitting

· Furniture And Fixture

· Sanitary Fittings

· Steel Almirah

· Cycle

· Motor Car

· Scooter

· Computer

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] 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.60.42
UK Pound	1	Rs.100.11
Euro	1	Rs.79.74

INFORMATION DETAILS

Information Gathered by :	HEN
Analysis Done by :	SMT
Report Prepared by :	ANU

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--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		31

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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