MIRA INFORM REPORT

Report Date :

28.03.2012

IDENTIFICATION DETAILS

Name :	ALLENGERS MEDICAL SYSTEMS LIMITED
Formerly Known As :	ALLENGERS MEDICAL PRODUCTS PRIVATE LIMITED
Registered Office :	Unit No. 202, Ansal’s Classique Tower, Plot No 1, J – Block, Rajouri Garden, New Delhi – 110027
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.07.1992
Com. Reg. No.:	55-154688
Capital Investment / Paid-up Capital :	Rs.116.840 Millions
CIN No.: [Company Identification No.]	U33111DL1992PLC154688
TAN No.: [Tax Deduction & Collection Account No.]	PTLA10768C
PAN No.: [Permanent Account No.]	AABCA2332H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of X-rays based medical equipments.
No. of Employees :	900 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 1300000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office/ Factory 1 :	Unit No. 202, Ansal’s Classique Tower, Plot No 1, J – Block, Rajouri Garden, New Delhi – 110027, India
Tel. No.:	91-11-25166712/ 32536567
Mobile No.:	91-9317777730 (Mr. Y. PO. Sharma)
Fax No.:	91-11-25432088
E-Mail :	allenders@satyam.net.in exports@allengers.net allengers@sify.com yp.sharma@allengers.net allengers.ho@allengers.net sales.enquiry@allengers.net
Website :	http://www.allengers.com http://www.allengers.net
Area :	3000 sq. ft
Location :	Owned
Corporate Office :	S.C.O. 212-214, Sector 34-A, Chandigarh – 160 022, India
Tel. No.:	91-172-3012280-84/ 3012287/ 3012285/ 2725695
Fax No.:	91-172-2621912/ 2621913 / 2708031
E-Mail :	allengers.ho@allengers.net
Area :	16000 sq. ft
Location :	Owned
Factory 2 :	Bankapur, Mubarakpur Road, Derabassi – 140507, Mohali, Punjab, India
Tel. No.:	91-1762-282253 / 280253
Fax No.:	91-1762-285156
Area :	45000 sq. mtr
Location :	Owned
European Representative:	JMC Medical Sprl, 58, Avenue Du Parc De Woluwe , B – 1160 Bruxelles
Tel. No.:	00/32.2.672.56.44
Fax No.:	00/32.2.662.29.92
Contact Person :	Mr. Jean Marc Cleays
E-Mail :	jmc@beon.be
Branch Office :	Located at: Ahmedabad Bangalore Bhopal Bhubaneshwar Chennai Guwahati Jaipur Jodhpur Kolkata Lucknow Mumbai Nagpur New Delhi Patna Secunderabad

DIRECTORS

As on 30.09.2011

Name :

Mr. Suresh Sharma

Designation :

Chairman Cum Managing Director

Address :

H. No. 1802, Sector 34 D, Chandigarh, India

Date of Birth/Age :

14.10.1957

Qualification :

Engineering

Date of Appointment :

30.07.1992

DIN No.:

00128139

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U33111DL1992PLC154688	ALLENGERS MEDICAL SYSTEMS LIMITED	Managing director	1/12/2011	30/07/1992	-	Active	NO
2	U55101CH1998PTC021577	CITY CENTRE HOTELS PRIVATE LIMITED	Director	7/05/2003	7/05/2003	-	Active	NO
3	U70101CH2002PTC025083	SRI KESHAV REAL ESTATES PRIVATE LIMITED	Director	22/04/2004	22/04/2004	-	Active	NO
4	U24239DL2004PTC129158	ALLENGERS GLOBAL HEALTHCARE PRIVATE LIMITED	Director	17/09/2004	17/09/2004	-	Active	NO

Name :

Mr. Sanjeev K. Marjara

Designation :

Whole Time Director

Address :

Opposite Narankari Bhawan, Sugar Mill Road, Morinda, Dist. Ropar, Punjab, India

Date of Birth/Age :

30.12.1973

Qualification :

Engineering

Date of Appointment :

01.01.2005

DIN No.:

00128144

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U51420PB1998PTC021641	AWING STEEL FABRICATORS PRIVATE LIMITED	Director	7/10/2002	7/10/2002	-	Active	NO
2	U33111DL1992PLC154688	ALLENGERS MEDICAL SYSTEMS LIMITED	Whole-time director	1/12/2011	1/01/2005	-	Active	NO

Name :

Mr. Raman Kumar Narang

Designation :

Whole Time Director

Address :

C – 173, Malviya Nagar, Jaipur – 302017, Rajasthan, India

Date of Birth/Age :

01.11.1952

Date of Appointment :

26.06.2010

DIN No.:

00500953

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U34300RJ1998PTC014901	ANUDEEP TECHNOCRATS PRIVATE LIMITED	Director	17/08/1998	17/08/1998	-	Active	YES
2	U33111DL1992PLC154688	ALLENGERS MEDICAL SYSTEMS LIMITED	Whole-time director	1/12/2011	26/06/2010	-	Active	NO

Name :

Mr. Rajinder Singh Kanwar

Designation :

Whole Time Director

Address :

Kanwar Complex, Nalagarh Road, Pinjore, Pachkula, Haryana, India

Date of Birth/Age :

03.09.1966

Qualification :

Engineering

Date of Appointment :

01.01.2005

DIN No.:

00686742

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U33111DL1992PLC154688	ALLENGERS MEDICAL SYSTEMS LIMITED	Whole-time director	1/04/2011	1/01/2005	-	Active	NO
2	U24239DL2004PTC129158	ALLENGERS GLOBAL HEALTHCARE PRIVATE LIMITED	Managing director	1/12/2011	8/08/2005	-	Active	NO

Name :

Mr. Yash Pal Sharma

Designation :

Whole-time director

Address :

H. No. 3314, Sector 23-D, Chandigarh, India

Date of Birth/Age :

08.11.1961

Date of Appointment :

01.04.2011

DIN No.:

03513528

Name :

Mr. Sanjiv Kumar Goel

Designation :

Director

Address :

H. No. 137, Sector 4, Mansa Devi Complex, Panchkula-134114, Haryana, India

Date of Birth/Age :

05.09.1955

Date of Appointment :

21.03.2011

DIN No.:

00053490

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U67120PB1994PLC014473	ZOOM MERCANTILE AND FINANCE LTD	Director	22/01/1995	22/01/1995	-	Active	NO
2	U70100PB2005PTC028667	BHAVYA REALTORS PRIVATE LIMITED	Director	30/09/2008	19/01/2008	27/06/2011	Active	NO
3	U24219CH1996PTC018044	VENUS PESTICIDES PRIVATE LIMITED	Additional director	28/11/2008	28/11/2008	10/03/2009	Active	NO
4	U45209CH2010PTC032207	MARS HOMELAND PRIVATE LIMITED	Director	5/05/2010	5/05/2010	-	Active	NO
5	U33111DL1992PLC154688	ALLENGERS MEDICAL SYSTEMS LIMITED	Director	30/09/2011	21/03/2011	-	Active	NO

Name :

Mr. Ramesh Bhatia

Designation :

Director

Address :

H. No. 388, Block Vill, Prem Nagar, Ambala City – 134003, Haryana, India

Date of Birth/Age :

16.02.1958

Date of Appointment :

21.03.2011

DIN No.:

00845609

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U67120CH1994PTC014476	ESS AAR CORPORATE SERVICES PRIVATE LIMITED	Director	22/04/1994	22/04/1994	30/08/2007	Active	NO
2	U33111DL1992PLC154688	ALLENGERS MEDICAL SYSTEMS LIMITED	Director	30/09/2011	21/03/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Yash Pal Sharma
Designation :	Company Secretary
Address :	H No. 3314, Sector 23-D, Chandigarh, India
Date of Birth/Age :	08.11.1961
Date of Appointment :	12.01.2009
Pan No. :	AEYPS9737G

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Suresh Sharma	8295000
Samidha Sharma	1438000
M.S.Sharma	12500
Satish Sharma	5000
Lakshva Research and Development Private Limited, India	230000
Sri Keshav Real Estate Private Limited, India	20000
Awing Steel Fabricators Private Limited, India	485000
Raj1nder Singh Kanwar	10000
Sanjeev Kumar	15000
Suresh Sharma and Sons (HUF)	655000
Rishab Sharma	105410
Neelam Sharma	30210
Wampum Finance Private Limited, India	300000
Hisam Singh	5000
Krishan Chand Sharma	5000
Ateet Raj Awasthi	5000
Vikram Verma	5000
Sanjeev K Sharma	5000
Ajay Kamboj	5000
Ash Ok Bhatti	5000
San Jay Paul Mahalwal	5000
Yashoudey Jain	5000
City Centre Hotels Private Limited, India	500000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	0.25
Bodies corporate	12.60
Directors or relatives of Directors	86.48
Other top fifty shareholders	0.67
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of X-rays based medical equipments.

Products :

Product Description	ITC Code No
X-Rays Machines	90221490

• Line Frequency X-Rays
• High Frequency X-Ray Machines Mobile
• High Frequency X-Ray Machines Fixed
• Line Frequency C-Arm
• High Frequency C-Arm
• Lithotripter
• Mammography
• Digital Subtraction Angiography System
• Mobile Cath Lab

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Actual Production
X-Rays Machines	Nos.	1211
C-Arm Image Intensifier	Nos.	715
Lithotripter	Nos.	27
Mobile Cath Lab	Nos.	11
Mammography	Nos.	32
DR System	Nos.	1
DSA	Nos.	1
Others	Nos.	124

GENERAL INFORMATION

No. of Employees :

900 (Approximately)

Bankers :

· Citi Bank, Citi Markets and Banking, Ground Floor, Ludhiana Stock Exchange Building, Ludhiana - 141001, Punjab, India

· Centurion Bank Limited

· HDFC Bank, Chandigarh Branch

· ICICI Bank

· Punjab National Bank, S. C. F. 1/2/3, Sector 28 C, Chandigarh – 160028, India

· Oriental Bank of Commerce, Chandigarh, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working capital loans banks secured	109.019	75.456
Total	109.019	75.456
Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans banks unsecured	12.948	2.336
Rupee term loans financial institutions unsecured	0.437	2.629
Total	13.385	4.965

Financial Institution :	Citi Financial India The Associate Finance India Limited
Banking Relations :	--
Auditors :
Name :	Kansal Singla and Associates Chartered Accountants
Address :	503-04, Rattan Jyoti, 18, Rajendra Place, New Delhi – 110008, Delhi, India
Tel. No.:	91-11-41538010
Fax No.:	91-11-41538011
E-Mail :	cakansalsingla@gmail.com
PAN.:	AAAFK9144R
Related Parties :	· Allengers Medi Systems · Allengers Global Healthcare Private Limited · City Centre Hotels Private Limited · Sri Keshav Real Estate Private Limited · Lakshya Research and Development Private Limited · American Meditech Inc.

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12183970	Equity Shares	Rs.10/- each	Rs.121.840 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11683970	Equity Shares	Rs.10/- each	Rs.116.840 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		116.840	114.090	110.306
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		206.952	119.899	54.933
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		323.792	233.989	165.239
LOAN FUNDS
1] Secured Loans		109.019	75.456	60.408
2] Unsecured Loans		13.385	4.965	26.743
TOTAL BORROWING		122.404	80.421	87.151
DEFERRED TAX LIABILITIES		8.917	6.758	5.532
TOTAL		455.113	321.168	257.922
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		98.845	78.378	68.596
Capital work-in-progress		3.883	2.312	4.553
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	189.084	57.093	72.264
	Sundry Debtors	343.376	254.270	186.060
	Cash & Bank Balances	30.882	73.440	20.549
	Other Current Assets	1.759	1.408	0.749
	Loans & Advances	80.812	70.726	42.977
Total Current Assets		645.913	456.937	322.599
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	145.832	116.525	62.601
	Current Liabilities	147.696	99.934	66.359
	Provisions	0.000	0.000	8.866
Total Current Liabilities		293.528	216.459	137.826
Net Current Assets		352.385	240.478	184.773
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		455.113	321.168	257.922

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1206.235	926.122	661.113
		Other Income	14.545	12.199	43.617
		Total Income (A)	1220.780	938.321	704.730
Less	EXPENSES
		Consumption Material changes inventories	777.268	611.018
		Manufacturing service costs	72.880	32.201
		Contract costs	12.654	9.847	659.975
		Employee related expenses	134.371	98.365
		Administrative selling other expenses	95.020	90.020
		Exceptional income expenses	0.101	(0.102)
		TOTAL (B)	1092.294	841.349	659.975
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		128.486	96.972	44.755
Less	FINANCIAL EXPENSES (D)		9.027	7.163	9.485
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		119.459	89.809	35.270
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.365	7.201	5.849
	PROFIT BEFORE TAX (E-F) (G)		110.094	82.608	29.421
Less	TAX (H)		25.791	18.526	10.253
	PROFIT AFTER TAX (G-H) (I)		84.303	64.082	19.168
Less	PRIOR PERIOD EXPENSES		NA	NA	0.045
Less	EARLIER YEARS TAXES PAID		NA	NA	0.054
Add	EXCESS PROVISION W/OFF		NA	NA	0.052
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		118.713	54.631	35.510
	BALANCE CARRIED TO THE B/S		203.016	118.713	54.631
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	139.873	96.123	115.204
	TOTAL EARNINGS		139.873	96.123	115.204
	IMPORTS
		Raw Materials	274.540	203.327	225.008
	TOTAL IMPORTS		274.540	203.327	225.008
	Earnings Per Share (Rs.)		7.39	5.68	36.73

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.91	6.82	2.72
Net Profit Margin (PBT/Sales)	(%)	9.12	8.92	4.45
Return on Total Assets (PBT/Total Assets}	(%)	14.78	15.43	7.52
Return on Investment (ROI) (PBT/Networth)		0.34	0.35	0.18
Debt Equity Ratio (Total Liability/Networth)		1.28	1.27	1.36
Current Ratio (Current Asset/Current Liability)		2.20	2.11	2.34

LOCAL AGENCY FURTHER INFORMATION

Notes: - The Registered office of the company has been shifted from SCO 71, Sector 20 C, UT, Chandigarh - 160020, India to the present address w.e.f. 11.09.2006

FINANCIAL RESULTS

The turnover of the Company has increased from Rs. 902.758 Millions during the immediately preceding financial year 2009-10 to Rs. 1177.870 Millions during the financial year 2010-11 thus showing an increase of 30.5 % .The Company has been consistently working on cost reduction, revenue maximization and productivity improvement through systematic application of new technology.

Bankers Charges Report as per Registry

Corporate identity number of the company	U33111DL1992PLC154688
Name of the company	ALLENGERS MEDICAL SYSTEMS LIMITED
Address of the registered office or of the principal place of business in India of the company	Unit No. 202, Ansal’s Classique Tower, Plot No 1, J – Block, Rajouri Garden, New Delhi – 110027, India Email : yp.sharma@allengers.net
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10259614
Type of charge	Immovable Property Book Debts Stocks, Plant and Machinery
Particular of charge holder	Citibank N.A, Citi Markets and Banking, Ground Floor, Ludhiana Stock Exchange Building, Ludhiana - 141001, Punjab, India Email : roc@sdpa.in
Nature of instrument creating charge	Letter from Bank ceding pari-passu charge
Date of instrument Creating the charge	21.04.2011
Amount secured by the charge	Rs.70.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: As decided from time to time and mutually agreed upon. Terms of repayment: Repayable on demand - Repayable on demand, annually renewable Margin: 21% against the said plant and machinery 30% against the said stocks 30% against the said book debts Extent operation of the charge: First pari-passu charge by hypothecation of all the borrower's movable assets (including stocks and book debts) forming part of its current assets and all the borrowers movable assets (including plant and machinery) forming part of its fixed assets both present and future and property situated at 474/679,166/205, Khasra no: 80/12/2, 80/19/2, 80/19/3, 80/19/4, 80/19/5, Factory land and building located at Bhankarpur, Derabassi, Mohali Others: The charge is secure by way of pari-passu charge in favour of Citibank N.A Ludhiana for the repayment of all monies in respect of the credit facility, including outstanding balance and also all interest, costs, charges and expenses
Short particulars of the property or asset(s) charged (including complete address and location of the property	Hypothecation of all the borrower's movable assets (including stocks and book debts) forming part of its current assets and all the movable assets (including P and M) forming part of its fixed assets both P and F. Property situated at 474/679,166/205, Khasra no: 80/12/2, 80/19/2, 80/19/3, 80/19/4, 80/19/5, Factory land and building located at Bhankarpur, Derabassi, Mohali.
Particulars of the present modification	By this modification the limit is reduced from Rs.80.000 millions to 70.000 millions and the charge is secured by first pari-passu charge by hypothecation of all the borrower's movable assets (including stocks and book debts) forming part of its current assets and all the movable assets (including P and M) forming part of its fixed assets both P and F and property situated at 474/679,166/205, Khasra no: 80/12/2, 80/19/2, 80/19/3, 80/19/4, 80/19/5, Factory land and building located at Bhankarpur, Derabassi, Mohali.

FIXED ASSETS

• Land
• Building
• Plant and Machinery
• Furniture and Fixture
• Computer
• Air Conditioner
• Electric Equipment
• Electric Fittings
• Epbax
• Water Cooler
• Vehicles
• D G Set
• Office Equipment
• Tube Well
• Air Pollution Control Equipment
• Weighing Scales

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 records 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.50.91
UK Pound	1	Rs.81.27
Euro	1	Rs.67.99

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		45

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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