MIRA INFORM REPORT

Report Date :

09.11.2012

IDENTIFICATION DETAILS

Name :	ARORA TEXTILES PRIVATE LIMITED (TRANSFER FROM U.P. To RAJASTHAN)
Registered Office :	E-90-91, Industrial Growth Khara, Bikaner – 334001, Rajasthan
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	22.04.1996
Com. Reg. No.:	17-014254
Capital Investment / Paid-up Capital :	Rs.14.626 Millions
CIN No.: [Company Identification No.]	U17124RJ1996PTC014254
TAN No.: [Tax Deduction & Collection Account No.]	JDHA02439D
PAN No.: [Permanent Account No.]	AABCA2865K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of Woollen, Semiworsted and Natural Colour Yarn.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 250000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Latest financial i.e. 2011-12 are missing from government department. However, from the available financial it has been seem that profitability of the company appears to be low. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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	CRISIL
Rating	(Long Term Rating) BB-
Rating Explanation	Moderate risk of default
Date	24.09.2012

Rating Agency Name	CRISIL
Rating	(Short Term Rating) A4+
Rating Explanation	Minimal degree of safety it carry very high credit risk.
Date	24.09.2012

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 Office/ Factory :	E-90-91, Industrial Growth Khara, Bikaner – 334001, Rajasthan, India
Tel. No.:	Not Available
Mobile No.:	91-9351201641 (Mr. J. M. Arora) 91-9828559297 (Mr. K. K. Arora) 91-9828170600 (Mr. Shiv Arora) 91-9828121113 (Mr. Manish Arora)
Fax No.:	Not Available
E-Mail :	reena.bala@rediff.com sabirca2007@rediffmail.com csreena7@gmail.com
Website :	http://www.aroratextiles.com
Head Office:	21 D, Industrial Area, Rani Bazar, Bikaner – 334001, Rajasthan, India
Tel. No.:	91-151-2523029/ 2545213/ 2547172
Fax No.:	91-151-2204126
Branches :	Located at : · Bhadohi · Panipat

DIRECTORS

(AS ON 28.09.2011)

Name :

Mr. Jethmal Arora

Designation :

Director

Address :

15 – Sadul Colony, Park Road, Bikaner – 334405, Rajasthan, India

Date of Birth/Age :

15.06.1945

Date of Appointment :

19.09.1997

DIN No.:

00337250

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	U17124RJ1996PTC014254	ARORA TEXTILES PRIVATE LIMITED (TRANSFER FROM U.P. TO RAJASTHAN)	Director	19-09-97	19-09-97	-	Active	NO
2	U18101RJ2004PTC019005	ARORA TEXWOOL PRIVATE LIMITED	Director	20-02-04	20-02-04	-	Active	NO
3	U17117RJ1996PTC012948	ARORA YARN PRIVATE LIMITED	Director	18-07-08	18-07-08	17-09-08	Active	NO

Name :

Mr. Shiv Prakash Arora

Designation :

Director

Address :

14 – Sadul Colony, Park Road, Bikaner – 334405, Rajasthan, India

Date of Birth/Age :

05.05.1967

Date of Appointment :

19.09.1997

DIN No.:

00908515

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U17124RJ1996PTC014254	ARORA TEXTILES PVT. LTD. (TRANSFER FROM U.P. TO RAJASTHAN)	Director	19/09/1997	19/09/1997	Active	NO
2	U14219RJ1994PTC008489	BENGAL MINERALS PRIVATE LIMITED	Director	15/02/2012	15/02/2012	Active	NO

Name :

Mr. Brahm Prakash Arora

Designation :

Director

Address :

14 – Sadul Colony, Park Road, Bikaner – 334405, Rajasthan, India

Date of Birth/Age :

07.07.1971

Date of Appointment :

19.09.1997

DIN No.:

00337243

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U17124RJ1996PTC014254	ARORA TEXTILES PVT. LTD. (TRANSFER FROM U.P. TO RAJASTHAN)	Director	19/09/1997	19/09/1997	Active	NO
2	U18101RJ2004PTC019005	ARORA TEXWOOL PRIVATE LIMITED	Director	20/02/2004	20/02/2004	Active	NO
3	U14219RJ1994PTC008489	BENGAL MINERALS PRIVATE LIMITED	Director	15/02/2012	15/02/2012	Active	NO

Name :

Ms. Shriya Devi Arora

Designation :

Director

Address :

8-B66, Jai Narayan Vyas Colony, Bikaner – 334001, Rajasthan, India

Date of Birth/Age :

20.08.1947

Date of Appointment :

30.08.2008

DIN No.:

02311884

Name :

Ms. Anju Arora

Designation :

Director

Address :

8-B66, Jai Narayan Vyas Colony, Bikaner – 334001, Rajasthan, India

Date of Birth/Age :

06.07.1972

Date of Appointment :

30.08.2008

DIN No.:

02311776

Name :

Ms. Veena Arora

Designation :

Director

Address :

8-B66, Jai Narayan Vyas Colony, Bikaner – 334001, Rajasthan, India

Date of Birth/Age :

12.11.1975

Date of Appointment :

30.08.2008

DIN No.:

02311770

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 28.09.2011)

Names of Shareholders	No. of Shares
Anju Devi Arora	100
Brahm Prakash Arora	334500
Jeth Mal Arora	295000
Shiv Prakash Arora	168000
Siriya Devi Arora	140600
Veena Arora	100
Jeth Mal Arora (HUF)	23500
Neeru Arora	100
Sharthak Trust Fund	100
Ayush Trust Fund	100
Brahm Prakash Arora (HUF)	25714
Shiv Prakash Arora (HUF)	25714
Abhishek Arora	25714
Monika Arora	25714
Mayank Arora	25714
Shashank Arora	25714
Shivam Arora	25716
Arora Texwool Privat Limited	291000
Foresight Fragrance Private Limited	1250
EpicC Vyapaar Private Limited	1250
Daisy Abhra Private Limited	1250
Abharani Vinimay Private Limited	1250
Vighnahar Marketting Private Limited	1250
Angad Chemicals Private Limited	1250
Ziwani Barter Private Limited	1250
Mubarak Lubricant Private Limited	1250
GiltedgeE Vincom Private Limited	1250
Vanraj Merchants Private Limited	1250
Afsons (India) Private Ltd	2000
ETL Infrastructure Finance Limited	4000
Swastik Securities and Finance Limited	2000
Abex Infocom Private Limited	2000
Akhtar Ali Ansari	7000
Total	1462600

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Bodies corporate (not mentioned above)	21.43
Directors or relatives of Directors	78.57
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Woollen, Semiworsted and Natural Colour Yarn.

Products :

Products Description	Item Code No.
Carpet Grade Greasy White Raw Yield 70-75% Type : Dbw	51011900
Carpet Grade White Greasy Raw	51012900
Argentinian Wool Waste	51032010
Carpet Grade Wool Waste	51032090

GENERAL INFORMATION

Suppliers :

· Arihant Roadways

· Associated Road Carrier

· Banarsi Dass Grover

· Basant Industries

· International Carrying Company

· The Rajasthan Small Industrial Corporation

· TMC Express, Jaipur

· Ankit Enterprise

· Global Marine Agencies

· Gautam Sales

· Jain Paper Tube and Core

· Misra Boilers Private Limited

· Prakash Enterprise

· Spintex Impex Private Limited

· Technochem Industries

· Tex Marketing Corporation

· Allied Fibers and Textiles Corporation

· ANN CEE Woollens Private Limited

· New Zealand Wool Service International

· S.P and Company

· Surana Woollens Private Limited

· Tarad Wools

Customers :

· D. S. Trading Company

· OAC Wooliens Private Limited

· Tannu Wools

· A.D. Textiles

· Bhagwati Industries, Bikaner

· Varun Industries

· Sethi Exports

· Dugar Crafts

· Shree Ganpati Associates

· Jaipur Rugs Company Private Limited

· Flora Exports

· Modern Rugs

· Saif Carpets Private Limited

· Unique Exports

· Aayana Overseas

· ABC Industries

· A.K. Creations

· Ambadi Enterprise Limited

· Ashu Carpet

· Kruti Overseas

· Karpi India Private Limited

· Unlimited Rugs

No. of Employees :

Not Available

Bankers :

· State Bank of Bikaner and Jaipur,

Rani Bazar Industrial Area, Bikaner – 334001, Rajasthan, India

· State Bank of Bikaner and Jaipur,

R.A.S.E.C.C. (Credit Cell), Binani Building, Alakh Sagar Road, Bikaner – 334001, Rajasthan, India

· Bank of Baroda,

Station Road, Bikaner – 311001, Rajasthan, India

Facilities :

Secured Loan	31.03.2011	31.03.2010
	(Rs. In Millions)
HDFC Bank Limited Loan A/C	0.000	0.078
SBBJ T/Loan A/C 61090476159	0.000	1.600
SBBJ Car Loan A/C 61095952488	0.376	0.000
SBBJ CC A/c 61090476669	40.080	43.382
BOB C/C 1350500000007	0.000	0.000
SBBJ O/D A/c 61103544984	0.067	0.000
SBBJ Adhoc A/c	5.923	0.000
BOB CC A/c 013505000000085	6.328	0.000
BOB O/D A/c	0.180	0.000
BOB 13504 (0135040000038)	0.000	6.089
Total	52.954	51.149
Unsecured Loan	31.03.2011	31.03.2010
	(Rs. In Millions)
Abhishel Arora	0.150	0.127
Ayush Trust Fund	0.743	0.629
B.J. Woollens Private Limited	0.000	0.126
Brahm Prakash Arora (S.M. Sales)	2.408	1.590
Brahm Praksh Arora HUF	2.528	0.394
Jethmal Arora	1.586	3.728
Jethmal Arora HUF	0.338	0.770
Minika Arora	0.150	0.128
Sarthak Trust Fund	0.423	0.359
Shiv Prakash Arora	4.699	1.425
Anju Arora	0.588	1.680
Siriya Devi	0.439	0.802
Veena Arora	1.140	1.684
Total	15.192	13.442

Banking Relations :	--
Auditors :
Name :	Sabir and Company Chartered Accountant
Address :	F-17/18, Bothra Complex, Bikaner – 334001, Rajasthan, India
PAN No.:	ABYPA1753D

CAPITAL STRUCTURE

(AS ON 29.09.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Share	Rs.10/- each	Rs.15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1462600	Equity Share	Rs.10/- each	Rs.14.626 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		14.626	14.626	14.331
2] Share Application Money		0.000	0.000	10.000
3] Reserves & Surplus		48.752	45.182	29.849
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		63.378	59.808	54.180
LOAN FUNDS
1] Secured Loans		52.954	51.149	39.246
2] Unsecured Loans		15.192	13.442	10.224
TOTAL BORROWING		68.146	64.591	49.470
DEFERRED TAX LIABILITIES		2.594	2.937	3.349
Subsidy and Incentive		1.959	1.959	1.959
TOTAL		136.077	129.295	108.958
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		31.946	29.673	31.802
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	54.017	42.408	32.383
	Sundry Debtors	67.152	62.936	59.021
	Cash & Bank Balances	23.267	14.066	9.032
	Other Current Assets	0.637	0.723	0.584
	Loans & Advances	1.277	4.443	5.618
Total Current Assets		146.350	124.576	106.638
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	35.314	20.587	29.482
	Other Current Liabilities	3.321	2.020	0.000
	Provisions	3.584	2.347	0.000
Total Current Liabilities		42.219	24.954	29.482
Net Current Assets		104.131	99.622	77.156
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		136.077	129.295	108.958

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	498.036	324.424	327.705
		Other Income	3.001	4.843	5.991
		TOTAL (A)	501.037	329.267	333.696
Less	EXPENSES
		Cost of Goods Sold	463.607	301.875	303.862
		Administrative Expenses H.O.	14.487	11.186	12.761
		Administrative Expenses B.O. Bhadohi	2.028	1.725	1.696
		Administrative Expenses B.O. Panipet	1.665	1.364	1.390
		TOTAL (B)	481.787	316.150	319.709
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		19.250	13.117	13.987
Less	FINANCIAL EXPENSES (D)		8.711	5.880	8.530
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10.539	7.237	5.457
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.689	4.357	4.178
	PROFIT BEFORE TAX (E-F) (G)		5.850	2.880	1.279
Less	TAX (H)		1.674	0.103	(0.104)
	PROFIT AFTER TAX (G-H) (I)		4.176	2.777	1.385
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		36.503	33.726	32.341
	BALANCE CARRIED TO THE B/S		40.679	36.503	33.726
	Earnings Per Share (Rs.)		2.86	1.90	0.97

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.83	0.84	0.42
Net Profit Margin (PBT/Sales)	(%)	1.17	0.84	0.39
Return on Total Assets (PBT/Total Assets}	(%)	3.28	1.87	0.92
Return on Investment (ROI) (PBT/Networth)		0.09	0.05	0.02
Debt Equity Ratio (Total Liability/Networth)		1.74	1.50	1.46
Current Ratio (Current Asset/Current Liability)		3.47	4.99	3.62

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	No
17]	Major suppliers	Yes
18]	Major customers	Yes
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	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

CHANGE OF ADDRESS

Registered office of the company has been shifted from main Road Bhadoi, 15, park Road, Sadul Colony, Bikaner w.e.f. 02.09.1997 to the present address.

FORM 8

This form is for	Creation of charge
Corporate identity number of the company	U17124RJ1996PTC014254
Name of the company	ARORA TEXTILES PVT. LTD. (TRANSFER FROM U.P. TO RAJASTHAN)
Address of the registered office or of the principal place of business in India of the company	E-90-91, Industrial Growth Khara, Bikaner – 334001, Rajasthan, India csreena7@gmail.com
Type of charge	Immovable Property Movable Property
Particular of charge holder	State Bank of Bikaner and Jaipur Industrial Area, Bikaner – 334001, Rajasthan, India sbbj10516@sbbj.co.in
Nature of description of the instrument creating or modifying the charge	1. Sanction Letter 2. Loan Agreement
Date of instrument Creating the charge	17/01/2012
Amount secured by the charge	Rs.0.484 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest 2.00 % above Base Rate i.e. 12.50% p.a. (subject to change from time to time) Terms of Repayment In 36 monthly installments of Rs.1619.200 Millions each w.e.f. Feb. 2012 Margin 15% Extent and Operation of the charge This charge is operates as first charge.
Short particulars of the property charged	Hypothecation of Beat LT (D) Chevrolet. Noting of Bank's hypothecation charge in the books of the RTO and the Registration Book will be essential in respect of finance for two/four wheeler vehicles. Ist Charge over Movable and Immovable Assets of the Company registered with ROC.

FIXED ASSETS:

· Air Conditioner

· Building

· Building at Rani Bazar

· Computer

· Cooler

· Cycle

· Electrification

· Fan

· Fax and Pager

· Furniture and Fixture

· Heater

· Inventor

· Lab Equipment

· Land (RIICO) E-90-91

· Land (RIICO) E-303

· Land (Rani Bazar)

· Mobile

· Motor Car

· Motor Cycle

· Plant and Machinery

· Plant and Machinery (Wind)

· Refrigerator

· Tata Truck

· Television

· Water Cooler

· Water Filter

· Weighting Scale

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 organizatio 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.54.25
UK Pound	1	Rs.87.00
Euro	1	Rs.69.83

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		29

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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