MIRA INFORM REPORT

Report Date :

16.05.2012

IDENTIFICATION DETAILS

Name :	GARG INOX LIMITED (w.e.f. 11.04.2007)
Formerly Known As :	GARG INOX PRIVATE LIMITED GARG SALES COMPANY PRIVATE LIMITED
Registered Office :	35, Jhandewalan Road, Motia Khan, New Delhi – 110055
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.06.1991
Com. Reg. No.:	55-044782
Capital Investment / Paid-up Capital :	Rs.55.003 Millions
CIN No.: [Company Identification No.]	U74899DL1991PLC044782
TAN No.: [Tax Deduction & Collection Account No.]	DELG05223B
PAN No.: [Permanent Account No.]	AAACG1010F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Stainless Steel Wires and Bars.
No. of Employees :	1200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 1600000
Status :	Satisfactory
Payment Behaviour :	Regular
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 as usually made 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 :	35, Jhandewalan Road, Motia Khan, New Delhi – 110055, India
Tel. No.:	91-11-23529626/ 23679747
Fax No.:	91-11-23626388
E-Mail :	gargwire@gargwire.com info@gskassociates.com
Website :	www.gargwire.com
Area :	5000 sq ft
Location :	Owned
Head Office/ Factory 1 :	CH-9, Old Industrial Area, Bahadurgarh-124507, Haryana, India
Tel. No.:	91-1276-222222
Fax No.:	91-1276-222000
E-Mail :	gargwire@gargwire.com
Factory 2 :	G-4, Ranjan Gaon Industrial Area, Village Karegaon, MIDC, Pune, Maharashtra, India
Branch Office :	Located At: · Mumbai · Hyderabad
Overseas Office :	Located At: · USA · UK · Istanbul

DIRECTORS

As on 30.09.2011

Name :

Mr. Suresh Chand Garg

Designation :

Managing Director

Address :

House No.3, Street No.29, East Punjabi Bagh, New Delhi – 110 026, India

Date of Birth/Age :

19.12.1969

Date of Appointment :

29.06.1991

Din No.:

00024274

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL1991PLC044782	GARG INOX LIMITED	Managing director	31-03-11	29-06-91	Active	NO
2	U27209DL1999PTC098106	DEE CEE ALLOYS AND WIRES PRIVATE LIMITED	Director	27-01-99	27-01-99	Active	NO
3	U28994DL1997PTC087678	YASH CERAMICS PRIVATE LIMITED	Director	21-06-07	21-06-07	Active	NO
4	U15209DL1996PTC194691	SOLAR MERCANTILES PRIVATE LIMITED	Director	02-07-07	02-07-07	Active	NO
5	U70101DL2010PTC207501	PYRAMID REALTECH PRIVATE LIMITED	Director	24-08-10	24-08-10	Active	NO

Name :

Mr. Aayush Garg

Designation :

Director

Address :

B-31, New Multan Nagar, New Delhi-110056, India

Date of Birth/Age :

26.08.1984

Date of Appointment :

31.12.2010

Din No.:

00191962

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U40100CT2010PTC022162	Y3K VENTURES PRIVATE LIMITED	Director	15-11-10	15-11-10	Active	NO
2	U74899DL1991PLC044782	GARG INOX LIMITED	Director	30-09-11	31-12-10	Active	NO

Name :

Mr. Nitin Mittal

Designation :

Director

Address :

B-1/124, Ground Floor, Paschim Vihar, New Delhi-110063, India

Date of Birth/Age :

14.02.1970

Date of Appointment :

31.03.2011

Din No.:

05176498

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL1991PLC044782	GARG INOX LIMITED	Director	30-09-11	31-03-11	Active	NO

Name :

Ms. Manisha

Designation :

Director

Address :

Bamnoli, Bahadurgarh-124507, Haryana, India

Date of Birth/Age :

07.10.1988

Date of Appointment :

31.03.2011

Din No.:

05176569

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL1991PLC044782	GARG INOX LIMITED	Director	30-09-11	31-03-11	Active	NO

Name :

Mr. Mohit Oberoi

Designation :

Director

Address :

Circle Jhajjar, Bahadurgarh-124507, Haryana, India

Date of Birth/Age :

07.09.1983

Date of Appointment :

31.03.2011

Din No.:

05178205

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL1991PLC044782	GARG INOX LIMITED	Director	30-09-11	31-03-11	Active	NO

Name :

Mrs. Priyanka Garg

Designation :

Director

Address :

House No.3, Street No.29, East Punjabi Bagh, New Delhi – 110 026, India

Date of Birth/Age :

17.11.1973

Date of Appointment :

11.07.1993

Din No.:

00024173

KEY EXECUTIVES

Name :	Mr. Nagendra Prasad Gupta
Designation :	Secretary
Address :	17-J, Fazalpur Mandwali, New Delhi-110092, India
Date of Birth/Age :	09.01.1974
Date of Appointment :	02.05.2011
Pan No.:	AJAPG2926L
Name :	Mr. Yogesh Oberoi
Designation :	B. Tech
Name :	Mr. B.M. Prasad
Designation :	M. Sc. Export Marketing From IIFT, New Delhi
Name :	Mr. Atul Channa
Designation :	General Manager [Marketing]
Name :	Mr. Rahul Mehra
Designation :	Senior General Manager [Sales and Marketing]
Name :	Mr. Anil Soni
Designation :	Exports Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Suresh Chand Garg	798090
Madhu Garg	318152
Jaipal Garg	395366
Priyanka Garg	576925
Aayush Garg	130666
Aakarsh Garg	171165
Sanchit Garg	414166
Vanshaj Garg	283333
Jai Pal Garg and Sons (HUF)	127416
Suresh Garg and Sons (HUF)	216816
Yogesh Oberoi	15100
Dee Cee Alloys and Wire Private Limited, India	320000
Solar Mercantiles (Private) Limited, India	1714310
Suresh Chand Garg	18750
Total	5500255

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	37.000
Directors or relatives of directors	63.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Stainless Steel Wires and Bars.
Products :	· Stainless Steel Wire · Galvanized Wire · Stainless Steel Bar · Copper Clad Aluminium Wire · Aluminium Alloy Wire · Zinc Wire · Welding Consumables
Brand Names :	“GARGWIRE”

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Licensed Capacity	Installed Capacity [*]	Actual Production
S.S. Wire	MT	74000.00	56000.00	34655.909

NOTE: (*) Certified by the management and relied upon by the auditors being a technical matter.

GENERAL INFORMATION

No. of Employees :

1200 (Approximately)

Bankers :

• State Bank of India, Industrial Complex Branch, Bahadurgarh, District Jhajjar, Bahadurgarh-124507, Haryana, India
• Punjab National Bank, Railway Road, Bahadurgarh-124507, Haryana, India
• Syndicate Bank, 43, Rani Jhansi Road, New Delhi, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loans	169.765	201.667
Foreign currency loans	128.079	68.207
Working capital loans	579.807	586.599
Total	877.651	856.473
Unsecured Loan
Other debts	1.810	0.714
Total	1.810	0.714

Banking Relations :	--
Auditors :
Name :	GSK and Associates Chartered Accountants
Address :	8, First Floor, Rani Jhansi Road, Motia Khan, Industrial Area, New Delhi – 110 055, India
Pan No.:	AADFG5824B
Associates:	· Dee Gee Alloys and Wires Private Limited · Garg Sales Inc, USA · Garg Sales UK Limited · Solar Mercantiles Private Limited · Yash Ceramics Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs.10/- each	Rs.75.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5500255	Equity Shares	Rs.10/- each	Rs.55.003 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		55.003	49.507	49.507
2] Share Application Money		50.000	58.955	0.000
3] Reserves & Surplus		304.006	224.989	202.365
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		409.009	333.451	251.872
LOAN FUNDS
1] Secured Loans		877.651	856.473	882.030
2] Unsecured Loans		1.810	0.714	1.274
TOTAL BORROWING		879.461	857.187	883.304
DEFERRED TAX LIABILITIES		33.748	26.800	18.973
TOTAL		1322.218	1217.438	1154.149
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		524.492	485.640	485.537
Capital work-in-progress		12.779	8.435	4.127
INVESTMENT		0.000	0.000	0.500
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	588.533	415.065	384.837
	Sundry Debtors	647.710	608.546	412.282
	Cash & Bank Balances	82.503	67.117	36.356
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	206.774	146.319	145.661
Total Current Assets		1525.520	1237.047	979.136
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	681.536	469.003	284.050
	Other Current Liabilities	31.989	26.220	18.300
	Provisions	27.229	18.667	12.856
Total Current Liabilities		740.754	513.890	315.206
Net Current Assets		784.766	723.157	663.930
MISCELLANEOUS EXPENSES		0.181	0.206	0.055
TOTAL		1322.218	1217.438	1154.149

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	3688.773	2759.148	1998.878
		Other Income	76.089	38.870	2.606
		TOTAL (A)	3764.862	2798.018	2001.484
Less	EXPENSES
		Consumption Materials Changes Inventories	2652.965	1947.314
		Manufacturing Service Cost	693.171	509.666	1878.547
		Employee Related Expenses	77.356	51.516
		Administrative Selling Other Expenses	117.117	89.291
		TOTAL (B)	3540.609	2597.787	1878.547
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		224.253	200.231	122.937
Less	FINANCIAL EXPENSES (D)		136.937	130.819	91.392
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		87.316	69.412	31.545
Less/ Add	DEPRECIATION/ AMORTISATION (F)		36.853	33.804	21.284
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		50.463	35.608	10.261
Less	TAX (H)		9.458	12.984	11.890
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		41.005	22.624	(1.629)
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	72.861	NA
	BALANCE CARRIED TO THE B/S		136.033	95.485	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1492.208	967.415	920.975
	IMPORTS
		Raw Materials	358.913	227.795	104.816
		Consumable Stores	6.047	1.097	9.382
		Machinery	16.764	13.823	108.902
	TOTAL IMPORTS		381.724	242.715	223.100
	Earnings / (Loss) Per Share (Rs.)		7.00	5.00	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.09	0.81	(0.08)
Net Profit Margin (PBT/Sales)	(%)	1.37	1.29	0.51
Return on Total Assets (PBT/Total Assets}	(%)	2.46	2.07	0.70
Return on Investment (ROI) (PBT/Networth)		0.12	0.11	0.04
Debt Equity Ratio (Total Liability/Networth)		3.96	4.11	4.76
Current Ratio (Current Asset/Current Liability)		2.05	2.40	3.11

LOCAL AGENCY FURTHER INFORMATION

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	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

RESULTS OF OPERATION AND FINANCIAL PERFORMANCE:

During the year, the company has recorded a profit of Rs 50.463 Millions as compared with the result of previous year which the company made a profit of Rs.35.608 Millions. The Directors are positive about continuing the wire, electrode and other such business and to appoint highly qualified wire and electrode and marketing professionals to strengthen the existing wire and electrode business and adopt some new business lines and new areas in which they could venture and produce good results and maximize shareholders wealth. The sales of the Company were Rs.3761.010 Millions as compared to Rs.2793.864 Millions achieved in the last year registering a modest growth. The economic outlook is uncertain and the Company will continue to divert efforts towards increasing its penetration through products and systems in the existing wire market.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10032583
Corporate identity number of the company	U74899DL1991PLC044782
Name of the company	GARG INOX LIMITED
Address of the registered office or of the principal place of business in India of the company	35, Jhandewalan Road, Motia Khan, New Delhi – 110055, India
Type of charge	Book Debts Movable Property [not being pledge] Immovable Property Others
Particular of charge holder	State Bank of India, Industrial Complex Branch, Bahadurgarh, District Jhajjar, Bahadurgarh-124507, Haryana, India
Email	mca@gskassociates.com
Nature of description of the instrument creating or modifying the charge	1.Supl agreement of loan For increase in the overall limit 2.Supl agreement of hypothecation of goods and assets for increase in the overall limit 3. Letter regarding the grant of individual limits within the overall limit
Date of instrument Creating the charge	09.01.2012
Amount secured by the charge	Rs.1703.400 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 1. CCT=15.25%, 2. Stand By Limit= as per extant instructions, 3. TL( II to VII)= 15.65% 4. TL (VIII)=15.75% 5. TL (IX)= 15.75% Terms of Repayment 1. WC=Repayable on demand. 2. TL(existing)=As per repayment schedule approved in the previous proposals. 3. TL IX=Repayable in 78 monthly Installation (First 77 Installation of Rs.7.700 Millions each and last Installation of Rs. 7.100 Millions) commencing from 31st Oct, 2011 with the last installment to be paid on 31st March,2018. Interest at monthly rest will be payable as and when due. Margin Stock=25%, EPC Limit= 10%, Receivables(Domestic)=30%, LC=12%, BG=12% TL/FLC(capex)=25% Extent and Operation of the charge Personal Guarantee of Promoter Directors As Detailed Below: 1. Sh. Suresh Garg 2. Sh. Jai Pal Garg 3. Mrs. Priyanka Garg 4. Sh. Ayush Garg Corporate Guarantees: 1. Garg Sales, Inc., USA 2.Garg Sales UK Limited, U.K.
Short particulars of the property charged	PS: WC. Hypothecation on the company's entire inventory, receivable and all other current assets. TL: First Hypothecation charge on entire fixed assets of the company SME Car Loan: Hypothecation of the vehicle financed. Equitable Mortage of Plot No. G-4 in Ranjangaon Industrial Area, Pune measuring 30300 sq. mtrs in the name of the company with reasilsable value of Rs. 101.200 Millions vide valuation report dated 11.07.08. Collateral Securities:1) First and exclusive charge by Equitable Mortgage of factory L and B at Unit No 1, Plot No. Ch-9 , Old Industrial Area, BG in the name. Of the company with plot of 5116 sq yards and covered area of 36300 sq ft.2) Equitable Mortgage of land at village Asaudha Siwan, BG in the name of company Khet No.133, killa No.19 Musil//6/1/1(1-9) and 15(8-0) kille, 2 rakba 9 kanal 9 marle (1.18125 acre) with plot areaof 4648 sq meters(5670 sq.yards) vide sale deed No.1276 dated 05.06.2006.3) Equitable Mortgage of land measuring 8-kanal at vill. Asaudha Siwan, BG in the name of company comprised in killas No.19 Musil//16 vide sale deed No. 1277 dated 6.6.2006.4) Equitable Mortage of L and B thereon village Asaudha BG bearing khewat No. 94min/87,khata No.104 min, Mustil No. 19, killa no.23/2(4-0),24(8-0) kitte 2 land measuring 12 kanal and in khewat no.121 min/113,khata No.132 min, Mustil No. 19,killa Nos. 22/2(2-0), 23/1(4-0) kitte measuring 6 kanal total 18 kanal with plot area of 9100 sq.mts.(10896sq. yds) in the name of the company.5) Equitable Mortgage of land at village asudha, BG in the name of Company vide khewat no.93/86min khata no.101 min kila no.19/25(6-0), rakba 8 kanal andkhewat no. 120/112, min khata no.131 min kila no.19/6/1/2(3/17),17(8-0) and 20//11/2(6-2)and20(7-12) rakba 25 kanal 11 marla total 33 kanal 11 marla i.e. 29/32 part of33 kanal 11 marla which is 30 kanal 8 marla (3.80058 acre) with plot area of 15200 sq. mtr. (18544 sq.mtr)
Date of latest modification prior to the present modification	30.08.2011
Particulars of the present modification	Details of present modification are as follow:- 1. Interchangeability to the extent of Rs.75.000 Millions from LC to BG limits and to the extent of Rs.50.000 Millions from BG to LC limit. 2. Conversion of CC (Hypothecation)into EPC limit by a further extent of Rs.100.000 Millions ,i.e. from existing RS.400.000 Millions to Rs.500.000 Millions and FBP (Non LC) limit from existing Rs.330.000 Millions to Rs.375.000 Millions without any change in over all indebtedness.

WEBSITE DETAILS:

PROFILE:

Under the dynamic leadership of Mr. Suresh Garg, the man who's unparalleled vision and straight thinking has been the driving force, the company has grown by leaps and bounds challenging new boundaries and setting up new standards for itself year after year. Subject an ISO 9001 Certified company with PRODUCTION CAPACITY of 1500 MT per month from three production Units and another one under development in Pune, India. The latest feather in the cap is the Zinc wire manufacturing unit with a production capacity of 400 Mt tons per month. The company is a government certified Export House, having Operational Offices in USA and United Kingdom.

Subject marketing its product under the brand name GARGWIRE has an annual turnover of over 40 million US Dollars is amongst the top stainless steel manufacturers of the country. The USP of Subject is that here Client requirements are given utmost priority with individual attention to every unique client. It is this quality probably that Subject today exports its high quality products to a very vast clientele in over 50 countries of the world and its operations spanning 4 continents. With this philosophy in tow, and a dedicated, well-trained team of hardcore professionals who always aspire to create cutting edge technology combined with the latest machinery they provide the high quality product at the most competitive prices.

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.53.84
UK Pound	1	Rs.86.72
Euro	1	Rs.69.17

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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		50

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

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