MIRA INFORM REPORT

Report Date :

26.12.2012

IDENTIFICATION DETAILS

Name :	NEO CORP INTERNATIONAL LIMITED (w.e.f. 29.01.2008)
Formerly Known As :	NEO SACK LIMITED
Registered Office :	220, Mahavir Industrial Estate, Opposite Mahakali Caves Road, Andheri (East), Mumbai – 400093, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	15.02.1985
Com. Reg. No.:	11-223220
Capital Investment / Paid-up Capital :	Rs.380.222 Millions
CIN No.: [Company Identification No.]	L24132MH1985PLC223220
TAN No.: [Tax Deduction & Collection Account No.]	BPLN00154A
PAN No.: [Permanent Account No.]	AAACN6513A
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Subject is engaged in manufacture of technical textiles.
No. of Employees :	700 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 8800000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal 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 – 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	CARE
Rating	Long Term Bank Facilities: BBB
Rating Explanation	Having Moderate degree of safety regarding timely servicing of financial obligation, it carry moderate credit risk.
Date	January, 2012

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

LOCATIONS

Registered/ Regional Marketing Office 1 :	220, Mahavir Industrial Estate, Opposite Mahakali Caves Road, Andheri (East), Mumbai – 400093, Maharashtra, India
Tel. No.:	91-22-26879510
Fax No.:	Not Available
E-Mail :	neocorpho@hotmail.com bom@neocorp.co.in investor_relations@neocorp.co.in
Website :	http://www.neocorp.co.in
Corporate Office :	‘Trivedi Chambers’ 2, Maharani Road, Indore – 452007, Madhya Pradesh, India
Tel. No.:	91-731-4211900/ 01
Fax No.:	91-731-4211944
Email :	indore@neocorp.co.in
Factory :	Sector 1, Plot No.62/63/64-A, Industrial Area, Pithampur–454775, Madhya Pradesh, India
Tel. No.:	91-7292-410400 (2 Lines)
Fax No.:	91-7292-420499
Email :	contact@neocorp.co.in
Geotech Worldwide (A Division of NCIL)	Plot# A-12 and A-13 SEZ II Sector3, (Apparel and Pharma Park) Pithampur, District Dhar – 454775, Madhya Pradesh, India
Techtextil (100% EOU) (A Division of NCIL)	Plot # 64-A, Industrial Area Sector 1, Pithampur, District Dhar – 454775 Madhya Pradesh, India
Branch Office :	Located at: · Ahmedabad · Kolkata · New Delhi · Patna
Regional Marketing Office :	Also located at: v Delhi v Kolkata v Mumbai v Ahmedabad v Patna v Nagpur v Mangalore
International Office :	Located at: v United Kingdom v United States of America v China

DIRECTORS

(AS ON 31.03.2012)

Name :	Mr. Kailashchandra S. Trivedi
Designation :	Chairman cum Whole Time Director
Name :	Mr. Sunil Kumar Trivedi
Designation :	Managing Director
Name :	Mr. Sanjay Trivedi
Designation :	Executive Director
Name :	Mr. Pradhuman Sharma
Designation :	Whole Time Director
Name :	Mr. Shrawan Kumar Patodi
Designation :	Independent Director
Name :	Mr. Ladharam Patel
Designation :	Independent Director
Name :	Mr. Rolland Coderre
Designation :	Independent Director
Name :	Ms. Shobha Dube
Designation :	Independent Director

KEY EXECUTIVES

Name :	Ms. Swati Gangrade
Designation :	Company Secretary
Name :	Ms. Vaishali Jain
Designation :	Asst. CS and Compliance Officer
BOARD COMMITMENTS
Audit Committee:	· Mr. Shrawan Kumar Patodi (Chairman) · Ms. Swati Gangrade (Secretary) · Mr. Ladhram Patel · Ms. Shobha Dube*
Remuneration Committee:	· Mr. Shrawan Kumar Patodi (Chairman) · Ms. Swati Gangrade (Secretary) · Mr. Ladhram Patel · Ms. Shobha Dube*
Shareholders Grievance Committee:	· Mr. Shrawan Kumar Patodi (Chairman) · Ms. Swati Gangrade (Secretary) · Mr. Ladhram Patel · Ms. Shobha Dube*
* Appointed w.e.f. September 1, 2012

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2012)

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3933998	20.15
Bodies Corporate	799984	4.10
Sub Total	4733982	24.25
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	4733982	24.25
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	5600	0.03
Financial Institutions / Banks	200	0.00
Foreign Institutional Investors	1035562	5.30
Sub Total	1041362	5.33
(2) Non-Institutions
Bodies Corporate	8984556	46.02
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	2506717	12.84
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1829197	9.37
Any Others (Specify)	426384	2.18
NRIs/OCBs	310310	1.59
Clearing Members	116074	0.59
Sub Total	13746854	70.42
Total Public shareholding (B)	14788216	75.75
Total (A)+(B)	19522198	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	--	0.00
(2) Public	18500000	0.00
Sub Total	18500000	0.00
Total (A)+(B)+(C)	38022198	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in manufacture of technical textiles.

Products :

Products Description	Item Code No.
FIBC / SACK	39232990
Fabrics	39269099
Shade Net	60059000

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Agrotech	Kg	2000000	1930414
Packtech	Kg	21000000	20085218
Geotech	Kg	600000	137054
RP Granuals / Master Batch	Kg	1500000	--

GENERAL INFORMATION

No. of Employees :

700 (Approximately)

Bankers :

v State Bank of India

v State Bank of Travancore

v State Bank of Bikaner and Jaipur

v Punjab National Bank

v IDBI Bank Limited

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term Loans from Banks	596.823	319.285
Working Capital Loan From Bank (Secured By first pari passu charge by way of hypothecation of stock of Raw Material, Finished Goods, Spares Parts, Work in Progress Book Debts and Second Pari Passu charge on the entire Fixed Assets of the Company)	808.432	571.708
Total	1405.255	890.993
Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term loans from Banks (Secured by first charge on Hypothecations of Vehicles)	11.905	9.382
From Directors	0.289	0.175
From Bodies Corporates	121.233	120.764
Total	133.427	130.321

Banking Relations :	--
Auditors :
Name :	A. P. Garg and Company Chartered Accountant
Address :	Vastu Bhawan', 1^st Floor, 71 Dhar Kothi Indore – 452001 Madhya Pradesh India
Subsidiaries :	· Euro Plast Limited, UK · Sacos Indigo Private Limited · Netflex Infracon Limited · Polybase (HK) Limited, H.K. · Poly Logic International Private Limited
Associates :	· Panam Packers Private Limited · Synergy Education International Private Limited · Vishwkarma Creations Private Limited · Olympain Investors and Traders Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
69000000	Equity Shares	Rs.10/- each	Rs.690.000 Millions
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions
	Total		Rs.700.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
38022198	Equity Shares	Rs.10/- each	Rs.380.222 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		380.222	140.222	158.088
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1813.270	800.542	426.220
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2193.492	940.764	584.308
LOAN FUNDS
1] Secured Loans		1405.255	890.993	722.842
2] Unsecured Loans		133.427	130.321	23.891
TOTAL BORROWING		1538.682	1021.314	746.733
DEFERRED TAX LIABILITIES		82.820	37.092	25.686
TOTAL		3814.994	1999.170	1356.727
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		782.751	482.877	295.802
Capital work-in-progress		331.658	172.996	101.340
INVESTMENT		468.495	185.777	81.110
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	878.389	573.997	295.626
	Sundry Debtors	640.135	647.169	495.792
	Cash & Bank Balances	107.714	46.973	57.542
	Other Current Assets	693.378	501.326	602.571
	Loans & Advances	999.832	134.105	57.765
Total Current Assets		3319.448	1903.570	1509.296
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	596.028	457.090	503.213
	Other Current Liabilities	412.754	238.057	95.151
	Provisions	78.576	50.903	32.770
Total Current Liabilities		1087.358	746.050	631.134
Net Current Assets		2232.090	1157.520	878.162
MISCELLANEOUS EXPENSES		0.000	0.000	0.313
TOTAL		3814.994	1999.170	1356.727

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2839.884	2310.666	1756.227
		Other Income	60.007	84.305	4.798
		TOTAL	2899.891	2394.971	1761.025
Less	EXPENSES
		Cost Material Consumed	2284.107	1952.441
		Purchase of Stock in Trade	18.109	42.497
		Change in Inventories of Finished Goods, Work in Process and Stock in Trade	(148.631)	(203.842)	1552.825
		Employee Benefits Expenses	75.227	73.806
		Other Expenses	228.399	201.273
		TOTAL	2457.211	2066.175	1552.825
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		442.680	328.796	208.200
Less	FINANCIAL EXPENSES		185.530	136.885	64.130
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		257.150	191.911	144.070
Less/ Add	DEPRECIATION/ AMORTISATION		37.378	25.226	26.372
	PROFIT BEFORE TAX		219.772	166.685	117.698
Less	TAX		53.978	24.825	25.523
	PROFIT AFTER TAX		165.794	141.860	92.175
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	272.017	187.404
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	2.500	2.500
		Dividend	NA	7.011	4.327
		Tax on Dividend	NA	1.191	0.735
	BALANCE CARRIED TO THE B/S		NA	403.175	272.017
	EARNINGS IN FOREIGN CURRENCY		913.710	873.027	499.680
	IMPORTS
		Raw Materials	16.520	77.267	51.232
		Stores & Spares	0.546	0.000	0.466
		Capital Goods	164.596	86.547	69.507
	TOTAL IMPORTS		181.662	163.814	121.205
	Earnings Per Share (Rs.)		7.44	12.04	10.65

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
Type	1^st Quarter	2^nd Quarter
Net Sales	898.800	1090.540
Total Expenditure	749.280	956.200
PBIDT (Excl OI)	149.520	134.340
Other Income	0.000	0.000
Operating Profit	149.520	134.340
Interest	67.820	58.800
Exceptional Items	0.000	0.000
PBDT	81.700	75.540
Depreciation	11.780	11.790
Profit Before Tax	69.920	63.750
Tax	21.780	24.000
Provisions and contingencies	0.000	0.000
Profit After Tax	48.150	39.750
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	48.150	39.750

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.72	5.92	5.23
Net Profit Margin (PBT/Sales)	(%)	7.74	7.21	6.70
Return on Total Assets (PBT/Total Assets}	(%)	5.36	7.98	6.52
Return on Investment (ROI) (PBT/Networth)		0.10	0.18	0.20
Debt Equity Ratio (Total Liability/Networth)		1.20	1.88	2.40
Current Ratio (Current Asset/Current Liability)		3.05	2.55	2.39

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	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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

YEAR IN RETROSPECT

The Company has recorded a turnover of Rs.2839.900 Millions as against Rs.2310.700 Millions in the previous year. The Net profit (after tax and extra ordinary items) for the financial year ended 31st March, 2012 increased to Rs.165.800 Millions from Rs.141.900 Millions in the previous year representing an increase of 16.84% profit after tax.

BUSINESS OVERVIEW

Technical Textiles offers a huge opportunity in India for both local consumption as well for exports. Based on current usage patterns the Domestic Consumption market alone is expected to exceed US $ 13 billion by 2012/13.

To facilitate the growth of this industry in India- the office of Textile Commissioner Ministry of Textiles, Government of India -recognized the need to have the industry's active participation to bring out the issues, concerns and suggest policy framework that would lay the foundation for this sector.

Given the fact that Government policy have played a critical role in the advancement of Technical textiles Indian Technical Textile Association is expected to maintain close interaction with Government of India in formulating a National Technical Textiles Policy focusing on removing the ambiguities in the system which are hampering the growth of the sector, helping bring in legislation which will help spur usage in India and recommending fiscal and non fiscal norms which would aid the industry to achieve its true potential.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

OVERVIEW

In India, the value-added textiles industry is collectively grouped into a single sector commonly referred to as technical textiles. This sector encompasses a range of products from fibre to finished products. Government of India sponsored a nation-wide market survey to estimate the size, need and growth potential of this industry. ICRA, a management consultancy undertook the government sponsored study and has estimated growth of 11% for next few years.

The close linkage of the textile industry to agriculture and the ancient culture and traditions of the country make the sector unique in comparison with the textiles industry of other countries. This also provides the industry with the capacity to produce a variety of products suitable to the different market segments, both within and outside the country. Thus, the growth and all around development of this industry has a direct bearing on the improvement of the economy of the nation.

SYNOPSISON GROWTH OF NCIL

Subject was incorporated in Year 15^th February 1985.

Company since its inception in 1985, is dedicated in making tailor designed products under Packtech. Company reached the status of a fore-runner internationally as a reliable supplier of Packtech products.

With its current growth initiative, Company has entered into other technical textile segments like Geotech and Agrotech.

Company is a listed Public Limited Company with an equity base of Rs.380.200 Millions. It is listed on the Bombay Stock Exchange, Madhya Pradesh Stock exchange and Luxembourg Stock Exchange. It approached public for subscription in 1992 and went through Rights issue in 1996. Company acquired one U.K. based company, Euro Plast Limited in 2008-09, acquired shares of Sacos Indigo Private Limited in 2009-10 and of Neoflex Infracon Limited and Polybase (H.K.) Limited in 2010-11 and made it as its subsidiary company. Promoters of NCIL has incorporated a Part IX Company 'M/s Poly Logic International Private Limited' and by virtue of this Poly Logic International Private Limited, becomes the wholly owned subsidiary of Company.

Company also enjoys a Star Export House status recognized by the Government of India continuously from 1994 in view of the Company's excellent Export performance.

COMPANY’ OUTLOOK

The technical textile business is one of the most promising and faster growing areas for global and Indian textile industry. Company has planned for systematic and continuous addition of several products under various technical textile segments. The object behind the same is to provide holistic solution to customer. For example geogrids, geonet and geomembrane shall make basket of geosynthetics complete. With consistent modernization and expansion with machinery of latest technology, it is expected that the Company will be able to improve efficiency and successfully face global competition and will be one of the leading players in the domestic as well as international markets.

As a strategy, they always wanted to be one-stop shop for all woven packaging needs of the customers. To this end, they have developed as a multi-product, multi-location and multi-market company serving to the needs of their customers. They also propose to further invest in forward and backward integration.

The company's growth graph with respect to the financials showed a steep upward trend on account of diversification into the value added Packtech products likes FIBC's for packaging of food products; leno bags and additions of Agrotech products

FIXED ASSETS:

· Land and Site Development

· Plant and Machinery

· Building

· Electricity Installation

· Office Equipment

· Vehicles

· Fire Extinguisher

· Furniture and fixture

· Weighing Scales

· Computer

· Wind Mill

WEBSITE DETAILS:

COMPANY PROFILE

Company since its inception in 1986, is dedicated in making tailor designed products under Packtech. Company reached the status of a fore-runner internationally as a reliable supplier of Packtech products.

With its current growth initiative, company has entered into other technical textile segments like Geotech and Agrotech.

Company is a Public Limited Company with an equity base of 38.02 million shares. It is listed on the National and Bombay Stock Exchanges (NSE & BSE) and Bourse de Luxembourg (Luxembourg Stock Exchange).

Company also enjoys a Star Export House status recognized by the Government of India in view of the Company's excellent Export performance.

As the barriers of the trade have come down, strong market like India has become cynosure of the industries worldwide. To encash these opportunities, company has endeavored to reinvent itself with planned capital investment and management culture. Company is renewing its customer relationship by providing value added solution. Efforts are made to embrace information technology in the quest of efficient and faster processes throughout the demand and supply chain. They are also balancing the growth aspiration with social concerns for sustainable growth and environment friendliness.

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.55.09
UK Pound	1	Rs.89.54
Euro	1	Rs.72.77

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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	-

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