MIRA INFORM REPORT

Report Date :

01.10.2012

IDENTIFICATION DETAILS

Name :	LALITHA CHEM INDUSTRIES PRIVATE LIMITED
Registered Office :	G-42, ‘D’ Wing, Dewan Apartments No.2, Navghar Vasai (East), Thane – 401 210, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	11.12.1990
Com. Reg. No.:	11-059381
Capital Investment / Paid-up Capital :	Rs.38.400 millions
CIN No.: [Company Identification No.]	U24100MH1990PTC059381
TAN No.: [Tax Deduction & Collection Account No.]	MUML01728G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of PVC Compound, Stabilisers.
No. of Employees :	25 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 620000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well 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 – 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 : CRISIL BBB-
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation it carry moderate credit risk
Date	March, 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 / Head Office:	G-42, ‘D’ Wing, Dewan Apartments No.2, Navghar Vasai (East), Thane – 401 210, Maharashtra, India
Tel. No.:	91-250-2392429/ 2390625/ 2392428 / 2392428 / 2392414
Mobile No.:	91-9820054643 (Mr. Subray Hosmane)
Fax No.:	91-250-2390117
E-Mail :	lalithachemind@gmail.com subray@vsnl.com
Website :	http://www.subray.com
Factory :	Plot No.32P, Nanji Industrial Estate, Kharar Pada, Silvassa, Dadra and Nagar Haveli, India

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Subray Sadashiv Hosmane

Designation :

Director

Date of Appointment :

19.03.1993

DIN No.:

00047127

PAN No.:

AAAPH3969B

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	U24100MH1990PTC059381	LALITHA CHEM INDUSTRIES PRIVATE LIMITED	Director	19-03-93	19-03-93	Active	NO
2	U24100MH1988PTC050207	SUBRAY CATALCHEM PRIVATE LIMITED	Director	21-09-94	21-09-94	Active	NO

Name :

Mrs. Veena Subray Hosmane

Designation :

Director

Address :

Bungalow No.1, Suvilas, Dewan and Shah Housing, Enclave Ambadi Road, Vasai Road, Vasai (West), Thane - 401 202 Maharashtra, India

Date of Birth/Age :

26.07.1963

Date of Appointment :

25.03.2009

DIN No.:

00047190

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	U24100MH1988PTC050207	SUBRAY CATALCHEM PRIVATE LIMITED	Director	20-01-89	20-01-89	-	Active	NO
2	U25201MH2001PTC132987	IMPERIAL VINYL PRIVATE LIMITED	Director	07-08-01	07-08-01	05-10-08	Active	YES
3	U93090MH2007PTC167169	MODSTAT ANALYSTS PRIVATE LIMITED.	Director	22-01-07	22-01-07	-	Strike off	NO
4	U24100MH1990PTC059381	LALITHA CHEM INDUSTRIES PRIVATE LIMITED	Director	25-03-09	25-03-09	-	Active	NO

Name :

Mrs. Lalitha Sadashiv Hosmane

Designation :

Director

Date of Appointment :

11.12.1993

DIN No.:

00047270

PAN No.:

AAAPH8434P

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Lalitha Hosmane	1890000
Veena Hosmane	458200
Subray Hosmane	1353200
Subra Catal Chem Private Limited	60000
Gajanan Bhat	17200
Lalitha Hosmane Jointly Subray Hosmane	60000
Ambalal Patel	200
Navin A. Patel	200
Geeta Sudhakar	1000
Total	3840000

(AS ON 30.09.2011)

Equity Shares Break – Up

Category	Percentage
Bodies corporate	1.56
Directors or relatives of directors	98.44
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of PVC Compound, Stabilisers.
Products :	· PVC Stabilisers · PVC Compounds · Master Batches · PVC Plasticisers · Metallic Stearates · One Pack Stabiliser for Pipes · Cables · Injection Moulding · Organo Tin Stabilisers · Mixed Metal Stabilisers · Expoxidised Oils · Organo Phosphites · Lubricants, etc.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	31.03.2011
Installed Capacity (as certified by a director based on single basis)
PVC Stabiliser Metalic Stearates, Plasticisers and PVC Compound	9300 MT per year

Particulars	Unit	Actual Production
1) PVC Stabilisers and Metallic Stearates	Kg.	5345677
ii) Plasticisers	Kg.	8050341
iii) Fatty Acid, Waxes and Others	Kg.	1353512

GENERAL INFORMATION

Customers :

· Finolex Industries Limited

· The Supreme Industries Limited

· Prince Pipes and Fittings Private Limited

· Kriti Industries (India) Limited

· Chemplast Sanmar Limited

· Finolex Cable Limited

· Kaveri Polymers Private Limited

· Paras PVC Pipes and Fittings

No. of Employees :

25 (Approximately)

Bankers :

· State Bank of India, Bhayander (West)

· ICICI Bank

· Bassein Catholic Co-Operative Bank Limited

· Syndicate Bank,

Valiv Naka, Jayesh Building, Valiv, Vasai Road East – 401208, Maharashtra, India

· Bank of India,

Bhayandar Branch, Bharati Apartments, 1^st Floor, Balaram Patil Road, Bhayandar (East), District Thane, Bhayandar – 401105, Maharashtra, India

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Foreign currency loans from banks	0.000	50.000
Working capital loans from banks	304.036	71.558
Loans taken for vehicles	2.798	1.898
Loans taken for other fixed assets	0.896	2.153
Total	307.730	125.609

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Loans directors	32.099	11.794
Deposits related parties	1.186
Deferred sales tax loan	9.227
Total	42.512	11.794

Banking Relations :	--
Auditors :
Name :	Keshav Chaubey and Company Chartered Accountants
Address :	124/2, Ostval Ornate, Jesal Park, Near Jain Derasar, Bhayandar (East), Thane – 401 105, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAAPC9359C
Associates :	SUBRAY CATALCHEM PRIVATE LIMITED CIN No.: U24100MH1988PTC050207

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3840000	Equity Shares	Rs.10/- each	Rs.38.400 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		38.400	38.400	19.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		116.111	88.355	91.898
4] Loan from Directors		0.000	24.699	31.502
5] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		154.511	151.454	142.600
LOAN FUNDS
1] Secured Loans		307.730	125.609	179.097
2] Unsecured Loans		42.512	11.794	15.611
TOTAL BORROWING		350.242	137.403	194.708
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		504.753	288.857	337.308
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		46.979	49.070	45.471
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		22.965	20.965	5.965
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	165.771	160.593	197.140
	Sundry Debtors	312.434	172.485	148.219
	Cash & Bank Balances	2.305	1.282	1.198
	Other Current Assets	4.297	5.569	4.168
	Loans & Advances	44.153	56.858	73.559
Total Current Assets		528.960	396.787	424.284
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	87.937	174.287	135.065
	Other Current Liabilities	6.214	3.678	3.347
	Provisions	0.000	0.000	0.000
Total Current Liabilities		94.151	177.965	138.412
Net Current Assets		434.809	218.822	285.872
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		504.753	288.857	337.308

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	1737.404	1075.999	944.351
		Other Income	NA	3.714	3.486
		TOTAL (A)	NA	1079.713	947.837
Less	EXPENSES
		Raw Material Consumed	NA	841.452	699.868
		Other Manufacturing Expenses		34.431	33.710
		Excise Duty & Educational Cess		85.947	88.222
		Increase/Decrease in stocks		(5.093)	23.493
		Administrative, Selling & Others Expenses		81.683	64.501
		TOTAL (B)	NA	1038.420	909.794
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	41.293	38.043
Less	INTEREST (D)		NA	15.584	19.618
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		40.907	25.709	18.425
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.735	5.623	5.741
	PROFIT BEFORE TAX (E-F) (G)		35.172	20.086	12.684
Less	TAX (H)		0.000	0.000	0.000
	PROFIT AFTER TAX (G-H) (I)		35.172	20.086	12.684
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		82.641	86.311	81.094
	Less: Utilised For Bonus Share		0.000	19.200	--
	Add : Income Tax adjustment of earlier Year		(7.323)	(4.556)	(7.467)
	BALANCE CARRIED TO THE B/S		110.490	82.641	86.311
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	NA	NA	177.529
	TOTAL EARNINGS		NA	NA	177.529
	IMPORT VALUE		NA	NA	206.523
	Earnings Per Share (Rs.)		9.16	5.23	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	1.86	1.34
Net Profit Margin (PBT/Sales)	(%)	2.02	1.87	1.34
Return on Total Assets (PBT/Total Assets}	(%)	6.11	4.51	2.70
Return on Investment (ROI) (PBT/Networth)		0.23	0.13	0.09
Debt Equity Ratio (Total Liability/Networth)		2.88	2.08	2.34
Current Ratio (Current Asset/Current Liability)		5.62	2.23	3.07

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	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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

SALES:

The sales for the year 2010-2011 are Rs1737.404 Millions as against Rs.1075.999 Millions in previous year including export sales of Rs 223.466 Millions, against last year’s export sales of Rs 150.945 Millions.

The growth in sales during the year 2010-11 is approximately 61.47% compared to the previous year.

FUTURE PROSPECTS:

As the market is continuously growing, the demand for their products will remain very high. They may achieve tremendous growth in domestics as well as export sales.

They are planning to start manufacturing of CPVC Resin. CPVC Resin is a monopoly item worldwide, which is manufactured only in Japan and China . The application of this product is in the PVC industry to which they have been supplying regularly since the past 25 years. They are currently importing this product and marketing the end- product manufactured from it locally as well as exporting to other countries since past 2- 3 years. Now they intend to go in for backward integration and start manufacturing CPVC Resin.

CONTINGENT LIABILITY NOT PROVIDED FOR (AS ON 31.03.2011) :

b) Pending appeal with the Income Tax Department for the Assessment Year 2001-2002 to the extent of Rs.1.429 Millions has been considered for provisions as the same is disputed by the Company.

BANKERS CHARGES REPORT AS PER REGISTRY:

Corporate identity number of the company

U24100MH1990PTC059381

Name of the company

LALITHA CHEM INDUSTRIES PRIVATE LIMITED

Address of the registered office or of the principal place of business in India of the company

G-42, ‘D’ Wing, Dewan Apartments No.2, Navghar Vasai (East), Thane – 401 210, Maharashtra, India

E-Mail: subray@vsnl.com

This form is for

Modification of charge

Charge identification (ID) number of the charge to be modified

10122852

Type of charge

Immovable property

Book debts

Others (All Stock, Fixed Assets)

Particular of charge holder

Syndicate Bank, Valiv Naka , Jayesh Building, Valiv, Vasai Road (East), Thane – 401208, Maharashtra, India

E-mail id : mh.5464valiv@syndicatebank.co.in

Nature of description of the instrument creating or modifying the charge

Second supplemental joint deed of hypothecation

Second supplemental inter-se agreement

Confirmation of creation of second/subsequent equitable mortgage

Second supplemental deed of working capital consortium agreement.

(all collectively constitute a single charge for Rs.722.500 Millions)

Date of instrument Creating the charge

19.01.2012

Amount secured by the charge

Rs.722.500 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest:

I. Syndicate Bank- 1) Fund Based Finer Rate at BR+2.00% p.a, PCL/FDBP/FUBP at BR +1.25%

II. Bank of India -1) Fund Based: 4.25% over bank's BR, presently 15% p.a. PCL/FDBP/FUBP 12.25%.

Terms of Repayment:

I. Syndicate Bank - Tenable till 29-02-2012 under the terms and conditions as stipulated by bank.

II. Bank of India-Tenability upto one years.

Margin:

Syndicate Bank -

15% Inventory,25% receivables

Non Fund based: 10%

Bank of India-

15% for other facilities.

Extent and Operation of the charge:

First pari passu charge on all Stocks, Book Debts, all other assets & current Assets with BOI

On pari passu basis the Factory Land and building at Tarapur and Plant and machinery of Tarapur Unit. Silvassa Unit with Bank of India, the other consortium member.

Short particulars of the property charged

First pari passu charge Jointly with Bank of India on L & B situated at Plot No.32, Sr.No.200/1/2/32, B Nanji Industrial Estate, Village Kharadpada, Dadra and Nagar Haveli, Silvassa adm.1912.20 Sq.mtrs

First pari passu charge Jointly with Bank of India on factory land and Building situated at Plot No.T-104 adm.1,000 sq.mtrs & T-105 in Tarapore Industrial Area, MIDC Boisar.

Whole of current assets, Stock of Raw material, Stock in Trade, Stores & spares , BR, & Book Debts and all movable assets, procured for exports including stock in process, Finished/ semi finished goods purchased/ to be purchased and or lying at factory premises of Tarapur, Silvassa and at godown.

Plant and Machinery lying at Tarapore and Silvassa units.

The entire present and future fixed assets of the company (except the vehicles) by way of paripassu First charge as a collateral security.

Particulars of the present modification

By the present modification, syndicate Bank and Bank of India(in consortium) have enhanced the limit to Rs.722.500 Millions as follows:

(Rs. In Millions)

Nature of Limit	Syndicate Bank	Bank of India
Fund Based Limit	120.000	50.000
Non Fund Based Limit	352.500	200.000
Total	472.500	250.000

FIXED ASSETS:

· Land

· Factory Building

· Plant and Machinery

· Pipe Fittings and Valves

· Storage Tank

· Fire Extinguisher

· Bore Well

· Electrical Fittings

· Furniture and Fixture

· Laboratory/Testing Equipment

· Office Equipment

· Office Premises (Siddhi)

· Office Premises (Prabhu)

· Computer Systems

· Delivery Van

· Air Conditioners

· Transformer

· Bicycle

· Canteen Equipment

· Motor Car

· Shop Premises (Pramukh)

· Scooter

· Shop Premises (E-61)

· Shop Premises (E-30)

· Weighing Bridge

· Weighing Scale

AS PER WEBSITE DETAILS:

PROFILE

Subject is a private limited company. Their Group companies started of with a humble beginning keeping MISSION of serving the trade and industry by providing goods of the best quality at the most competitive rates. The promoters of the company started on a small scale in 1978 having a capacity of 350 tonnes per month for PVC stabilizers, compounds, master batches and 1200 tones per month for PVC plasticisers. Over the years the capacity has been expanded and the current capacity is for over 3000 tonnes. Besides other products. Their excellent plant facilities and equipment combined with their stress on quality and service has been the essence of their growth. Their efforts of forward integration have resulted in their introduction of new PVC compounds and master batches.

Subject pursues a policy of continuous development and growth. LCI has been manufactures more than Three decades later, the mission has been them develop into a HOUSE OF PVC ADDITIVES manufacturing a complete range of products covering PVC stabilisers, PVC compounds, Master Batches, PVC Plasticisers, Metallic Sterates, One Pack Stabilizer for pipes, Cables, Injection Moulding, Organo Tin Stabilizer, Mixed Metal Stabilisers, Expoxidised Oils, Organo Phosphates, Lubricants, etc.

Subject’s client list includes Some prestigious clients such as Finolex Industries Limited, The Supreme Industries Limited, Prince Pipes and Fittings Private Limited, Kriti Industries (India) Limited, Chemplast Sanmar Limited, Finolex Cable Limited, Kaveri Polymers Private Limited, Paras PVC Pipes and Fittings, etc.

Subject is committed to meet customer’s requirement of irrigation / Industrial / water distribution piping systems / Components as per their expectations. This is achieved by increasing productivity through continuous improvements, planned manpower training, utilization of resources and carrying out corrective actions as needed.

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.52.70
UK Pound	1	Rs.85.71
Euro	1	Rs.68.15

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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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