MIRA INFORM REPORT

Report Date :

05.02.2008

IDENTIFICATION DETAILS

Name :	SABARE INTERNATIONAL LIMITED
Registered Office :	SF. No. 6/1, Nedungur Village, Near V S B Engineering College, Karudayampalayam, K Paramathi, Karur – 639 111, Tamil Nadu
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	09.10.2003
Com. Reg. No.:	18-51728
CIN No.: [Company Identification No.]	U17297TN2003PLC051728
TAN No.: [Tax Deduction & Collection Account No.]	CHES17309F
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Manufacturers of Made-ups and exporting home furnishings.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 4000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company and faring well. Financial position is good. Trade relations are fair. The company is doing well. It can be considered good for any normal business dealings. It can be regarded as a promising business partner in a medium to long – run.

LOCATIONS

Registered Office :	SF. No. 6/1, Nedungur Village, Near V S B Engineering College, Karudayampalayam, K Paramathi, Karur – 639 111, Tamil Nadu
Tel. No.:	91-4324-232681
Fax No.:	91-4324-259635
E-Mail :	mail@sabare.com
Website :	http://www.sabare.com
Corporate Office :	14, Kamarajapuram East, Karur – 639002, Tamilnadu
Tel. No.:	91-4324-232681
Fax No.:	91-4324-259635
E-Mail :	mail@sabare.com
Website :	http://www.sabare.com

DIRECTORS

Name :	Mr. Swaminathan Susindran
Designation :	Chairman cum Managing Director
Address :	No. 60A, Vadivelnagar, L N S Post, Erode Road, Karur – 639002, Tamilnadu
Date of Birth/Age :	28.05.1963
Date of Appointment :	09.10.2003
Name :	Ms. Susindran Suganthi
Designation :	Whole Time Director
Address :	No. 60A, Vadivelnagar, L N S Post, Erode Road, Karur – 639002, Tamilnadu
Date of Birth/Age :	23.01.1971
Date of Appointment :	09.10.2003
Name :	Mr. Palanisamy Shanmugasundaram
Designation :	Director
Address :	No. 4, Green Lands, Near Tansi Covai Road, Karur – 639002, Tamilnadu
Date of Birth/Age :	10.08.1948
Date of Appointment :	15.10.2003
Name :	Mr. Ramasamy Swaminathan
Designation :	Director
Address :	No. 60A, Vadivelnagar, L N S Post, Erode Road, Karur – 639002, Tamilnadu
Date of Birth/Age :	15.04.1933
Date of Appointment :	15.10.2003
Name :	Mr. S. Yasodha
Designation :	Director
Address :	No. 4, Green Lands, Near Tansi Covai Road, Karur – 639002, Tamilnadu
Date of Birth/Age :	03.02.1955
Date of Appointment :	15.10.2003
Name :	Mr. K. V. Ramakrishna
Designation :	Director
Address :	Flat 1A, Regency A Tower, Edenwoods, Chitalsar Manpada, Thane – 400601, Maharashtra
Date of Birth/Age :	29.10.1969
Date of Appointment :	08.06.2005
Name :	Mr. Janat Ghanshyam Bhai Shah
Designation :	Direcotr
Address :	419, IIM Campus, Bannerghatta Road, IIMB Post, Mico Layout, Bangalore – 560 076, Karnataka, India
Date of Birth/Age :	22.09.1958
Date of Appointment :	21.06.2007
Name :	Mr. Chin Krishnan Ranganathan
Designation :	Director
Address :	Plot No. 58/5, Door No. 5, Dr. Sheshadri Avenue, Injambakkam, Chennai - 600 041, Tamil Nadu, India
Date of Birth/Age :	01.05.1960
Date of Appointment :	21.06.2007
Name :	Mr. Melpakkam Venkatraman
Designation :	Director
Address :	Sabare Garments, 14, Kamarajapuram East, Karur – 639 002, Tamil Nadu, India
Date of Birth/Age :	07.03.1952
Date of Appointment :	09.10.2003
Name :	Mr. Venkata Ramkrishna Kunisetty
Designation :	Director
Address :	Flat 1A, Regency A Tower, Edenwoods GA Marg, Chitalsar Manpada, Thane West – 400 601, Maharashtra, India
Date of Birth/Age :	29.10.1969
Date of Appointment :	08.06.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Equity Shareholders
Mr. R Swaminathan	100000
Mr. M Venkataraman	100000
Mr. S Sughanthi	6250000
Mr. S Sathya	1000
Mr. S Lakshmi	750000
India Growth Fund	1000
Preference Shareholders
India Growth Fund	29999000

Equity Shares Breakup (Percentage of Total Equity):

Sr No.	Category	Percentage
1	Venture capital	0.01
2	Directors or relatives of directors	99.99
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers of Made-ups and exporting home furnishings.
Products :	· Pillow Shells · Pillow Machine · Made-Ups Generic Names of Three Principal Products of company is as under : Item Code No. : 85249009.10 Product Description : Made ups

PRODUCTION STATUS (As on 31.03.2005):-

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Made ups	Nos.	N.A.	N.A.	4045584

GENERAL INFORMATION

No. of Employees :

About 2000

Bankers :

· Canara Bank

Address: 37, Covai Road, Karur – 639 002, Tamil Nadu, India

· HDFC Bank Limited

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

· State Bank of India,

Address: Commercial Branch, Tiruchirapalli – 620001

Facilities :

Secured Loans	31.03.2005 [Rs. in Millions]
Term Loans	82.378
Packing Credit	85.000
Bills Discounting	210.168
Hire Purchase Loans	2.443

Banking Relations :

Good

Auditors :

Name 1 :

K. S. Palanisamy & Company

Chartered Accountants

Name 2:

Deloitte Haskins and Sells

Chartered Accountants

Address :

Shanmugha Manram, 41 Race Course, Coimbatore – 641 018, Tamil Nadu, India

Associates/Subsidiaries :

Sabare USA Inc

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
14501000	Equity Shares	Rs. 10/- each	Rs.145.010 millions
29999000	Preference Shares	Rs. 10/- each	Rs.299.990 millions
		Total	Rs.445.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14501000	Equity Shares	Rs. 10/- each	Rs.145.010 millions
29999000	Preference Shares	Rs. 10/- each	Rs.299.990 millions
		Total	Rs.445.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		445.000	145.000	50.000
2] Share Application Money		0.000	0.000	40.000
3] Reserves & Surplus		319.424	131.807	12.746
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		764.424	276.807	102.746
LOAN FUNDS
1] Secured Loans		802.281	379.991	137.927
2] Unsecured Loans		0.000	19.900	15.000
TOTAL BORROWING		802.281	399.891	152.927
DEFERRED TAX LIABILITIES		73.396	0.427	0.211
TOTAL		1640.101	677.125	255.884
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		547.495	52.336	34.925
Capital work-in-progress		126.802	66.707	0.000
INVESTMENT		119.997	9.801	4.855
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	197.970	111.567	44.796
	Sundry Debtors	748.586	576.330	212.707
	Cash & Bank Balances	75.752	37.751	25.492
	Other Current Assets	29.557	42.424	12.597
	Loans & Advances	171.471	135.213	10.757
Total Current Assets		1223.336	903.285	306.349
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	264.277	265.594	86.282
	Provisions	120.382	89.900	4.283
Total Current Liabilities		384.659	355.494	90.565
Net Current Assets		838.677	547.791	215.784
MISCELLANEOUS EXPENSES		7.130	0.490	0.320
TOTAL		1640.101	677.125	255.884

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		2238.598	1333.301	246.807
Other Income		90.258	73.184	0.586
Total Income		2328.856	1406.485	247.393
Profit/(Loss) Before Tax		299.255	202.413	17.183
Provision for Taxation		100.468	77.215	4.462
Profit/(Loss) After Tax		198.787	125.198	12.721
Export Value		2227.023	1333.301	228.571
Import Value		NA	4.371	2.794
Expenditures :
	Manufacturing Expenses	0.000	0.000	40.044
	Administrative Expenses	0.000	0.000	29.395
	Raw Material Consumed	1536.286	971.171	157.045
	Salaries, Wages, Bonus, etc.	59.558	20.011	0.000
	Managerial Remuneration	3.360	3.360	0.000
	Payment to Auditors	0.685	0.197	0.000
	Interest	26.735	14.696	2.748
	Insurance Expenses	2.925	1.330	0.000
	Power & Fuel	13.777	2.385	0.000
	Depreciation & Amortization	32.224	7.643	0.976
	Other Expenditure	354.051	183.279	0.000
Total Expenditure		2029.601	1204.072	230.208

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	8.53	8.90	5.14
Net Profit Margin (PBT/Sales)	(%)	13.36	15.18	6.95
Return on Total Assets (PBT/Total Assets}	(%)	15.76	19.79	5.08
Return on Investment (ROI) (PBT/Networth)		0.39	0.73	0.17
Debt Equity Ratio (Total Liability/Networth)		1.55	2.72	2.37
Current Ratio (Current Asset/Current Liability)		3.18	2.54	3.38

LOCAL AGENCY FURTHER INFORMATION

HISTORY

The company was incorporated on 9^th October, 2003 under Part IX of the Companies Act, 1956 by taking over all the assets and liabilities of the erstwhile partnership firm Sabare Garments. The company is mainly engaged in the business of exporting home furnishings.

FIXED ASSETS:

· Land – freehold

· Buildings

· Plant and Machinery

· Office Equipments

· Electrical Equipments,

· Electrical Fittings and

· Furniture and Fixtures,

· Computers,

· Intangible Assets – Software, Vehicles

FORM 8:-

Corporation identity number or foreign company registrations number of the company	U17297TN2003PLC051728
Name of the company	SABARE INTERNATIONAL LIMITED
Address	SF. No. 6/1, Nedungur Village, Near V S B Engineering College, Karudayampalayam, K Paramathi, Karur – 639 111, Tamil Nadu, India
This Form is for	Creation of the Charge
Type of Charges	Movable property
Particular of the charge holder	CIN: L65920MH1994PLC080618 HDFC Bank Limited Address: HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India Email ID: srinivasan.venkataraman@hdfcbank.com
Nature or description of the instrument creating charge	Memorandum relating to hypothecation of Machinery dated 17^th September, 2007.
Date of the instrument creating charge	17.09.2007
Amount Secure by the charge	Rs. 227.700 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of interest: Any such rate as may be advised to the company from time to time in respect of the credit facilities. Terms of Repayment: Term loan I of Rs. 101.600 millions -Unless demanded earlier the loan is repayable in Five and half year repayable in nineteen equal quarterly installments including one year moratorium. Term loan II of Rs. 126.100 millions – Unless Demanded earlier the loan is repayable in Five and half year repayable in nineteen equal quarterly installments including one year moratorium. Margin: As may be prescribed by the bank from time to time for the credit facilities. Extent and operation of the charge: Hypothecation by way of first Exclusive charge in favour of HDFC Bank Limited on all movable plant and machinery of the Company both present and future.
Short particulars of the Property charged	Hypothecation by way of First Exclusive Charge in favour of HDFC Bank Limited on all movable Plant and Machinery of the Company both present and future.

Name of the company

SABARE INTERNATIONAL LIMITED

Presented By

Mr. M. Venkataraman – Executive Director

1) Date and description of instrument creating the change

1. Common Hypothecation Agreement dated :

15.03.2004

2. Agreement for opening inland irrevocable letter

of credit dated : 15.03.2004

3. Hypothecation Agreement for packing credit

advances dated 15.03.2004

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 140.000 millions

[The details of the credit facility are :

1. Packing Credit : Rs. 40 millions

2. FDB/FBE : Rs. 80 millions

3. Term Loan : Rs. 10 millions

4. Bank Guarantee : Rs. 10 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

First charge of all stock of goods such as raw materials, goods in progress, finished and manufactured goods and other items of stock in trade and stores, spares, components, machinery, vehicle, furniture and fixtures and all other movable goods and properties of every description of the borrower wherever situated. Land and building existing and / or to be constructed thereon and shown under letter evidencing deposit of title deeds dt. 5.2.2004

The borrower present and future book debts, outstanding moneys, bills receivable claims, bills, contracts, securities, investments, cash, gold, silver, jewellery, rights and assets and rights relating to or in movable properties of whatever nature to which the borrower is entitled.

4) Gist of the terms and conditions and extent and operation of the charge.

a. The interest payable will be 8% p.a.

b. Other terms and conditions as per agreements

enclosed

5) Name and Address and description of the person entitled to the charge.

Canara Bank

37, Covai Road, Karur

6) Date and brief description of instrument modifying the charge

1. Memorandum of deposit of title deeds dated 06.08.2004 relating to the landed properties situated at S F NO. 447, LNS VILLAGE, KARUR

2. Memorandum of deposit of title deeds dated 06.08.2004 relating to the landed properties situated at S F NO. 1985, 1989 ANDALKOIL EAST VILLAGE, KARUR

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

The charge has been modified as follows :

Packing Credit Advance increased to Rs. 100 millions thereby the total limit has been increased to Rs. 200 millions as per the details given below :

	Existing	Revised
1. Packing Credit	50.000	100.000
2. FDB / FBE	80.000	80.000
3. Term Loan	10.000	10.000
4. Bank Guarantee	10.000	10.000
TOTAL	150.000	200.000

Name of the company

SABARE INTERNATIONAL LIMITED

Presented By

Mr. M. Venkataraman – Executive Director

1) Date and description of instrument creating the change

1. Common Hypothecation Agreement dated :

15.03.2004

2. Agreement for opening inland irrevocable letter

of credit dated : 15.03.2004

3. Hypothecation Agreement for packing credit

advances dated 15.03.2004

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 140.000 millions

[The details of the credit facility are :

1. Packing Credit : Rs. 40 millions

2. FDB/FBE : Rs. 80 millions

3. Term Loan : Rs. 10 millions

4. Bank Guarantee : Rs. 10 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

First charge of all stock of goods such as raw materials, goods in progress, finished and manufactured goods and other items of stock in trade and stores, spares, components, machinery, vehicle, furniture and fixtures and all other movable goods and properties of every description of the borrower wherever situated. Land and building existing and / or to be constructed thereon and shown under letter evidencing deposit of title deeds dt. 5.2.2004

The borrower present and future book debts, outstanding moneys, bills receivable claims, bills, contracts, securities, investments, cash, gold, silver, jewellery, rights and assets and rights relating to or in movable properties of whatever nature to which the borrower is entitled.

4) Gist of the terms and conditions and extent and operation of the charge.

a. The interest payable will be 8% p.a.

b. Other terms and conditions as per agreements

enclosed

5) Name and Address and description of the person entitled to the charge.

Canara Bank

37, Covai Road, Karur

6) Date and brief description of instrument modifying the charge

1. Memorandum of deposit of title deeds dated 14.12.2004 relating to the landed properties situated at S F NO. 447, LNS VILLAGE, KARUR

2. Memorandum of deposit of title deeds dated 14.12.2004 relating to the landed properties situated at S F NO. 1985, 1989 ANDALKOIL EAST VILLAGE, KARUR

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

The charge has been modified as follows :

	Existing	Revised
1. Packing Credit	100.000	100.000
2. FDB / FBE	80.000	80.000
3. Term Loan	10.000	10.000
4. Bank Guarantee	10.000	10.000
5. FBE [ST]	0.000	30.000
TOTAL	200.000	230.00

Name of the company

SABARE INTERNATIONAL LIMITED

Presented By

Managing Director

1) Date and description of instrument creating the change

i. Agreement of Loan for overall limit [Form C – 1]

ii. Agreement of Hypothecation of goods and assets

[Form C – 2]

iii. Agreement of pledge of goods and assets [Form

C – 3]

iv. Letter regarding the grant of individual limits

within the overall limit [Form C -5 ]

v. Confirmation letter with regard to delivery of

machines all dated 3.8.2005

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 90 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

First charge by way of hypothecation of the following machineries,

Name of the machinery	No of items	Values in millions
1. Gamesa Eolica G58 850 KW Wind Electric Generator [WEG]	2 Nos.	89.000
2. NEG – Micon Type NM82/1650 Wind Electric Generator	1 No.	91.540

4) Gist of the terms and conditions and extent and operation of the charge.

1. Rate of Interest : 1.5% below SBAR [10.25%]

effective rate being 8.75%

2. Repayable in 24 quarterly instalments

commencing from the quarter ended December

2006

5) Name and Address and description of the person entitled to the charge.

State Bank of India, Commercial Branch, Tiruchirapalli – 620001

6) Date and brief description of instrument modifying the charge

Nil

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Nil

Name of the company

SABARE INTERNATIONAL LIMITED

Presented By

Director

1) Date and description of instrument creating the change

i. Agreement of Loan for overall limit [Form C – 1]

ii. Agreement of Hypothecation of goods and assets

[Form C – 2]

iii. Agreement of pledge of goods and assets [Form

C – 3]

iv. Letter regarding the grant of individual limits

within the overall limit [Form C -5 ]

v. Confirmation letter with regard to delivery of

machines all dated 5.8.2005

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 90 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

First charge by way of hypothecation of the following machineries,

Name of the machinery	No of items	Values in millions
1. Gamesa Eolica G58 850 KW Wind Electric Generator [WEG]	2 Nos.	89.000
2. NEG – Micon Type NM82/1650 Wind Electric Generator	1 No.	91.540

4) Gist of the terms and conditions and extent and operation of the charge.

1. Rate of Interest : 1.5% below SBAR [10.25%]

effective rate being 8.75%

2. Repayable in 24 quarterly instalments

commencing from the quarter ended December

2006

5) Name and Address and description of the person entitled to the charge.

State Bank of India, Commercial Branch, Tiruchirapalli – 620001

6) Date and brief description of instrument modifying the charge

Letter dated 21.10.2005 confirming deposit of title deeds of immovable properties on 20.10.2005 with an intention to create equitable mortgage thereon

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

No change in financial facilities

Towards the term loan of Rs. 90 millions. Already sanctioned, the company provides additional security by way of equitable mortgage the following properties of the company over and above the existing securities.

Land in Tirunelveli R. D. Radhapuram Sub. District, Radhapuram Taluk, Udayathoor Village

S. F. NO. 427/18A 3.54.0 HECTARE

S. F. NO. 427/18B 0.03.0 HECTARE

TOTAL 3.57.0 HECTARE

S. F. NO. 444/2A 0.99.0 HECTARE

S. F. NO. 444/2B1 0.97.0 HECTARE

TOTAL 1.96.0 HECTARE

WEBSITE DETAILS:

Subject was founded in October 1991 with a vision to build a global company delivering a complete array of innovative and effective Home Furnishings solutions.

Subject is engaged in production and exports of Home Furnishing's Textiles and has carved a niche for itself in various international markets.

The company has been built on a strong foundation of integrity and has a strong commitment to quality, innovation, customer care and employee focus.

Subject has its registered office at Karur, Tamil Nadu State, which houses the corporate headquarters and a large integrated manufacturing facility. The company also has its marketing and manufacturing facilities strategically situated in other locations like Noida(U.P) and Panipat (Haryana), India to take care of the rising demand.

The company designs, manufactures and markets a coordinated line of value added Home Textile products that Packaged Bed, Bath, Dining and Window furnishing variants.

The company made Rs.3750.000 millions as turn over for the financial year 2006 - 2007.

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.39.43
UK Pound	1	Rs.77.74
Euro	1	Rs.58.41

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		63

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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