MIRA INFORM REPORT

Report Date :

27.09.2012

IDENTIFICATION DETAILS

Name :	SUNPACK BARRIER FILMS PRIVATE LIMITED
Registered Office :	53, Madhuban, Near Madalpur Under Bridge, Ellisbridge, Ahmedabad – 380006, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	13.12.2004
Com. Reg. No.:	04-045123
Capital Investment / Paid-up Capital :	Rs.52.600 Millions
CIN No.: [Company Identification No.]	U25202GJ2004PTC045123
TAN No.: [Tax Deduction & Collection Account No.]	AHMS12014C
PAN No.: [Permanent Account No.]	AAICS7070D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Plastic Films.
No. of Employees :	30 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 115000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. 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,

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	Cash Credit Limit = B-
Rating Explanation	Having high risk of default regarding timely servicing of financial obligation
Date	April 2011

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 :	53, Madhuban, Near Madalpur Under Bridge, Ellisbridge, Ahmedabad – 380006, Gujarat, India
Tel. No.:	91-79-26440331
Fax No.:	91-79-26421324
E-Mail :	accounts@sunpackfilms.com mamatagroup@mamata.com
Website :	www.sunpackfilms.com
Factory :	Survey No. 1039, Near GEB Substation, Chathral Kadi Road, Chathral-382729, Gujarat, India.
Tel. No.:	91-2764-234451
Fax No.:	91-2764-234452
Sales Office:	201," Harmony", 28, Nutan Bharat Society, Alkapuri, Vadodara- 390 007, Gujarat, India.
Tel. No.:	91-265-2353608 / 2353609
Fax No.:	91- 265-2353610
E-Mail :	nfo@sunpackfilms.com

DIRECTORS

As on 30.09.2011

Name :

Mr. Mahendra Narsinhbhai Patel

Designation :

Director

Address :

15 Kairavi Bungalow, Near Sarthi Hotel, Bodakdev, Ahmedabad-380015, Gujarat, India

Date of Birth/Age :

17.01.1949

Date of Appointment :

13.12.2004

DIN No.:

00104997

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U29259GJ1979PTC003363	MAMATA MACHINERY PRIVATE LIMITED	Managing director	12/9/1994	12/9/1994	-	Active	NO
2	U28999GJ1995FTC025601	KLOECKNER DESMA MACHINERY PRIVATE LIMITED	Managing director	25/04/1995	25/04/1995	-	Active	NO
3	U74999GJ1995FTC025783	FERROMATIK MILACRON INDIA Private Limited	Director	31/05/1995	31/05/1995	-	Active	NO
4	U29212GJ1997PTC031529	MAMATA EXTRUSION SYSTEMS PRIVATE LIMITED	Director	17/01/1997	17/01/1997	-	Active	NO
5	U29199GJ1997FTC032397	KHS MACHINERY PRIVATE LIMITED	Director	1/1/2011	26/05/1997	-	Active	NO
6	U65910GJ1993PTC019248	MAMATA GROUP CORPORATE SERVICES PRIVATE LIMITED	Director	11/8/1997	11/8/1997	-	Active	NO
7	U72200GJ1992PTC017819	SOURCEPRO INFOTECH PRIVATE LIMITED	Director	17/07/2000	17/07/2000	25/12/2009	Active	NO
8	U40106GJ2001PTC039173	MAMATA ENERGY PRIVATE LIMITED	Director	17/01/2001	17/01/2001	-	Active	NO
9	U25202GJ2004PTC045123	SUNPACK BARRIER FILMS PRIVATE LIMITED	Director	13/12/2004	13/12/2004	-	Active	NO
10	U25202GJ2006PTC047451	MAMATA-SPAN FLEXOPACK PRIVATE LIMITED	Director	4/1/2006	4/1/2006	-	Active	NO
11	U72200GJ2000PTC038028	VIBRATIONS INFOTALS PRIVATE LIMITED	Director	30/03/2006	30/03/2006	-	Active	NO
12	U65999GJ2004PTC044563	NATRAJ FINSEC (INDIA) PRIVATE LIMITED	Additional director	6/11/2006	6/11/2006	-	Active	NO
13	U40106GJ2006PTC049596	MAMATA PYRON SOLAR PRIVATE LIMITED	Director	27/09/2007	19/12/2006	-	Strike off	NO
14	U65910GJ1990PTC014305	MAMATA MANAGEMENT SERVICES PRIVATE LIMITED	Director	29/09/2007	31/12/2006	-	Active	NO
15	U29249GJ2007PTC050353	HYDCO ENGINEERING PRIVATE LIMITED	Director	12/8/2008	2/7/2007	-	Active	NO
16	U73100GJ2008NPL054708	INDIAN CENTRE FOR CLIMATE AND SOCIETAL IMPACTS RESEARCH	Director	7/8/2008	7/8/2008	-	Active	NO
17	L25209DD1988PLC001544	WIM PLAST LIMITED	Director	18/09/2010	27/07/2010	16/07/2012	Active	NO
18	U91100DL2012NPL239417	PLASTIC MACHINERY MANUFACTURERS ASSOCIATION OF INDIA	Director	27/07/2012	27/07/2012	-	Active	NO

Name :

Mr. Pradipkumar Khodabhai Patel

Designation :

Director

Address :

B 201 Shilpgram Flat, Near Gyanda Girls School, Ghatlodia, Ahmedabad-380064, Gujarat, India

Date of Birth/Age :

22.01.1968

Date of Appointment :

13.12.2004

DIN No.:

00106713

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U51909GJ1994PLC022339	COLOURFLEX LAMINATORS LIMITED	Managing director	1/4/2008	23/06/1994	-	Active	NO
2	U25202GJ2004PTC044786	SUNFLEX PACKAGERS (INDIA) PRIVATE LIMITED	Director	23/09/2004	23/09/2004	-	Active	NO
3	U25202GJ2004PTC045123	SUNPACK BARRIER FILMS PRIVATE LIMITED	Director	13/12/2004	13/12/2004	-	Active	NO
4	U65999GJ2004PTC044563	NATRAJ FINSEC (INDIA) PRIVATE LIMITED	Additional director	6/11/2006	6/11/2006	-	Active	NO

Name :

Mr. Chandrakant Baldevbhai Patel

Designation :

Director

Address :

100, Surdhara Bungalows Drive-I N Road, Ahmedabad-380054, Gujarat, India

Date of Birth/Age :

10.01.1954

Date of Appointment :

13.12.2004

DIN No.:

00380810

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U29259GJ1979PTC003363	MAMATA MACHINERY PRIVATE LIMITED	Managing director	20/12/2010	12/3/1990	-	Active	NO
2	U72200GJ1992PTC017819	SOURCEPRO INFOTECH PRIVATE LIMITED	Director	1/10/1993	1/10/1993	-	Active	NO
3	U29212GJ1997PTC031529	MAMATA EXTRUSION SYSTEMS PRIVATE LIMITED	Whole-time director	17/01/1997	17/01/1997	-	Active	NO
4	U40106GJ2001PTC039173	MAMATA ENERGY PRIVATE LIMITED	Director	24/03/2001	24/03/2001	-	Active	NO
5	U25202GJ2004PTC045123	SUNPACK BARRIER FILMS PRIVATE LIMITED	Director	13/12/2004	13/12/2004	-	Active	NO
6	U25202GJ2006PTC047451	MAMATA-SPAN FLEXOPACK PRIVATE LIMITED	Director	4/1/2006	4/1/2006	-	Active	NO
7	U65999GJ2004PTC044563	NATRAJ FINSEC (INDIA) PRIVATE LIMITED	Additional director	6/11/2006	6/11/2006	-	Active	NO
8	U65910GJ1990PTC014305	MAMATA MANAGEMENT SERVICES PRIVATE LIMITED	Director	29/09/2007	31/12/2006	-	Active	NO
9	U29249GJ2007PTC050353	HYDCO ENGINEERING PRIVATE LIMITED	Managing director	12/8/2008	29/03/2007	30/11/2010	Active	NO
10	U72900GJ2000PTC037323	DATA INNOVATION (INDIA) PRIVATE LIMITED	Director	22/04/2007	22/04/2007	-	Active	NO
11	U40106GJ2006PTC049596	MAMATA PYRON SOLAR PRIVATE LIMITED	Additional director	16/11/2009	16/11/2009	-	Strike off	NO

Name :

Mr. Manojkumar Rajendrakumar Patel

Designation :

Director

Address :

415, Clover Place, Rosselle Park, New Jersey-07204, USA

Date of Birth/Age :

04.08.1962

Date of Appointment :

06.09.2006

DIN No.:

00732461

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U25202GJ2004PTC044786	SUNFLEX PACKAGERS (INDIA) PRIVATE LIMITED	Director	23/09/2004	23/09/2004	-	Active	NO
2	U25202GJ2004PTC045123	SUNPACK BARRIER FILMS PRIVATE LIMITED	Director	6/9/2006	6/9/2006	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Heril
Designation :	Account Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Mahendra N. Patel	1248000
Pradipkumar K. Patel	418000
Chandrakant B. Patel	3000
Natraj Finsec (India) Private Limited, India	1050000
Vibration Infotals Private Limited, India	160000
Gita P. Patel	150000
Yogesh C. Patel	135000
Manoj R. Patel	526000
Gautamkumar C. Patel	90000
Arun C. Patel	65000
Chinubhai S. Patel	130000
Data Innovation (India) Private Limited, India	1000000
Kamlesh M. Patel	55000
Meeta G. Patel	75000
Mukesh M. Patel	55000
Neetaben P. Patel	55000
Mamata Management Services Private Limited, India	45000
Total	5260000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Bodies corporate	42.87
Directors or relatives of Directors	47.15
Other top fifty shareholders	9.98
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Plastic Films.
Products :	Plastic Packaging Films

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Units
*Annual Licensed Capacity	Nos	3600 MT
*Annual Installed Capacity	Nos	3600 MT

Particulars	Units	Actual Production
Plain Flexible Film (3920.1012)	Kgs.	85160
Plain Flexible Film (3926.9090)	Kgs.	303730
Pouches (3923.9090)	Kgs.	8253
Unprinted Adhesive Laminated Films	Kgs.	0

GENERAL INFORMATION

No. of Employees :

30 (Approximately)

Bankers :

Bank of Baroda, 9-11, Sagar Complex, Opposite Satellite Plaza, Premchand Nagar Road, Ahmedabad – 380015, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans banks	102.052	114.408
Working capital loans banks	21.279	17.270
Loans taken for vehicles	0.698	0.000
Total	124.029	131.678
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Other Debts	39.240	39.240
Total	39.240	39.240

Banking Relations :	--
Auditors :
Name :	Dinesh R. Shah and Company Chartered Accountants
Address :	1, Madhuban, 5^th Floor, Near Madalpur, Under Ground Ellisbridge, Ahmedabad – 380006, Gujarat, India
PAN.:	AAFFD0959G
Associates :	· Sunflex Packagers India Private Limited · Colourflex Laminators Limited · Mamata Airwings · Mamata Brampton Engineering Private Limited · Mamata Machinery Private Limited · Mamata Energy Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5500000	Equity Shares	Rs.10/- each	Rs.55.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5260000	Equity Shares	Rs.10/- each	Rs.52.600 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		52.600	52.600	50.000
2] Share Application Money		10.000	10.000	10.912
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(33.633)	(39.900)	(44.295)
NETWORTH		28.967	22.700	16.617
LOAN FUNDS
1] Secured Loans		124.029	131.678	137.502
2] Unsecured Loans		39.240	39.240	42.340
TOTAL BORROWING		163.269	170.918	179.842
DEFERRED TAX LIABILITIES		16.794	14.360	11.360
TOTAL		209.030	207.978	207.819
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		160.197	165.615	173.272
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	15.418	10.488	13.780
	Sundry Debtors	29.323	23.135	14.082
	Cash & Bank Balances	6.078	5.630	1.127
	Other Current Assets	0.000	0.000	1.558
	Loans & Advances	10.362	12.034	9.671
Total Current Assets		61.181	51.287	40.218
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	9.531	7.687	3.684
	Other Current Liabilities	0.780	0.512	0.564
	Provisions	2.035	0.725	1.423
Total Current Liabilities		12.346	8.924	5.671
Net Current Assets		48.835	42.363	34.547
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		209.030	207.978	207.819

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	120.278	106.833	79.728
		Other Income
		TOTAL	120.278	106.833	79.728
Less	EXPENSES
		Office Expenses
		Administrative Expenses	102.969	90.955	74.047
		Advertising Expenses
		Financial Expenses
		TOTAL	102.969	90.955	74.047
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		17.309	15.878	5.681
Less/ Add	DEPRECIATION/ AMORTISATION		8.606	8.484	8.448
	PROFIT/ (LOSS) BEFORE TAX		8.703	7.394	(2.767)
Less	TAX		2.435	2.999	3.973
	PROFIT/ (LOSS) AFTER TAX		6.268	4.395	(6.740)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	8.560	12.149	8.183
	TOTAL EARNINGS		8.560	12.149	8.183
	IMPORTS
		Raw Materials	NA	17.759	18.411
	TOTAL IMPORTS		NA	17.759	18.411
	Earnings/(Loss) Per Share (Rs.)		1.19	0.836	(1.35)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.21	4.11	(8.45)
Return on Total Assets (PBT/Total Assets}	(%)	3.93	3.41	(1.30)
Return on Investment (ROI) (PBT/Networth)		0.30	0.33	(0.17)
Debt Equity Ratio (Total Liability/Networth)		6.06	7.92	11.16
Current Ratio (Current Asset/Current Liability)		4.96	5.75	7.09

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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

YEAR IN RETROSPECT

The company’s turnover has increased by 12.58%. This year the Company has made Net Profit of Rs. 6.268 Millions (Before deduction of Deferred Tax.). This is due to increase in direct sale of films.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U25202GJ2004PTC045123
Name of the company	SUNPACK BARRIER FILMS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	53, Madhuban, Near Madalpur Under Bridge, Ellisbridge, Ahmedabad – 380006, Gujarat, India Email : mamatagroup@mamata.com
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	Bank of Baroda, 9-11, Sagar Complex, Opposite Satellite Plaza, Premchand Nagar Road, Ahmedabad – 380015, Gujarat, India Email : vastra@bankofbaroda.co.in
Nature of instrument creating charge	Hypothecation Agreement
Date of instrument Creating the charge	30.06.2011
Amount secured by the charge	Rs.5.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 7% over Base Rate i.e. 17% p.a. with monthly rest Terms of repayment Repayable within 2 (Two) Months Margin 25% on Stocks 30% on Book Debts Extent and operation of the charge Raw materials, stock-in-process, finished goods and all the book debts, movable plant and machinery/vehicles/crafts, consumable stores and spares, both present and future
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Raw materials, stock-in-process, finished goods and all book debts, movable plant and machinery/vehicles/crafts, consumable stores and spares, both present and future

FIXED ASSETS:

• Land (Factory)
• Building (Factory)
• Plant and Machinery
• Furniture and Fixtures
• Office Equipments
• Computers

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.58
UK Pound	1	Rs.86.60
Euro	1	Rs.68.94

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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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