MIRA INFORM REPORT

Report Date :

06.07.2013

IDENTIFICATION DETAILS

Name :	MAGICRETE BUILDING SOLUTIONS PRIVATE LIMITED
Registered Office :	Business Point, Office No. 702-B, Plot No. 22, S.V. Road, Opposite Andheri Subway, Andheri [West], Mumbai – 400058, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	24.04.2008
Com. Reg. No.:	11-053677
Capital Investment / Paid-up Capital :	Rs. 13.140 Millions
CIN No.: [Company Identification No.]	U26942GJ2008PTC053677
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Building Material.
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 822700
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The company has performed well during 2012 and wipe out its losses. The networth of the company seems to be strong. Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term Loan : (ICRA) BB
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation.
Date	March 2013

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.

INFORMATION PARTED BY

Name :	Mr. Jitendra
Designation :	General Manager
Contact No.:	91-9558826838
Date :	04.07.2013

LOCATIONS

Registered Office :	Business Point, Office No. 702-B, Plot No. 22, S.V. Road, Opposite Andheri Subway, Andheri [West], Mumbai – 400058, Maharashtra, India
Tel. No.:	Not Available
Mobile No.:	91-9558826838 [Mr. Jitendra]
Fax No.:	Not Available
E-Mail :	sbmgandco@gmail.com info@magicrete.in
Website :	www.magicrete.in
Location :	Owned
Corporate Office/ Factory :	101-102 Ritz Square, Near Narmad Library, Ghod Dod Road, Surat – 395002, Gujarat, India
Tel. No.:	91-261-4003061
Fax No.:	91-261-4003062
Regional Office [West] :	212, Centre Square Building, S.V. Road, Above Aircel Office Opposite Andheri Station Andheri (West) Mumbai – 400058, Maharashtra, India
Tel. No.:	91-22-42643932
Fax No.:	91-22-42643932
E-Mail :	mumbaisales@magicrete.in
Regional Office [North] :	305, DLF Qutab Plaza, DLF City Phase-1, Gurgaon – 122002, Haryana, India
Tel. No.:	91-124-4104006
E-Mail :	ncrsales@magicrete.in
Branch Offices :	Located at: Ø Ahmedabad Ø Vadodara Ø Rajkot Ø Indore

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Sourabh Bimalkumar Bansal

Designation :

Director

Address :

101, Navkruti Apartment, Lal Darwaja, Athwalines, Surat – 395007, Gujarat, India

Date of Birth/Age :

15.02.1984

Date of Appointment :

24.04.2008

DIN No.:

00527233

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	U14219MH2005PTC240892	RAW EDGE INDUSTRIAL SOLUTIONS PRIVATE LIMITED	Director	14/02/2005	14/02/2005	-	Active	NO
2	U17119GJ1993PTC020255	DEVIKA FIBRES PRIVATE LIMITED	Director	22/05/2007	22/05/2007	01/03/2009	Active	NO
3	U26931MH2008PTC243333	MAGICRETE BUILDING SOLUTIONS PRIVATE LIMITED	Director	24/04/2008	24/04/2008	-	Active	NO

Name :

Mr. Vinodkumar Chothmal Mittal

Designation :

Director

Address :

301, Poonam Palace, 3rd Floor, Zone Office, Athwalines, Surat – 395007, Gujarat, India

Date of Birth/Age :

05.07.1958

Date of Appointment :

05.05.2008

DIN No.:

00878750

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	U17110GJ1997PTC033046	SHREE RAGHUKUL TEXPRINTS PRIVATE LIMITED	Director	21/05/1998	21/05/1998	Active	NO
2	U26931MH2008PTC243333	MAGICRETE BUILDING SOLUTIONS PRIVATE LIMITED	Director	05/05/2008	05/05/2008	Active	NO

Name :

Mr. Sunilkumar Nandlal Roongta

Designation :

Director

Address :

10A, Sagar Apartment, Somnath Mahadev Road, Parle Point, Surat – 395006, Gujarat, India

Date of Birth/Age :

13.02.1968

Date of Appointment :

05.05.2008

DIN No.:

00878807

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	U17110GJ1997PTC033045	SHAILJA TEXPRINTS PRIVATE LIMITED	Director	10/07/2002	10/07/2002	Active	NO
2	U26931MH2008PTC243333	MAGICRETE BUILDING SOLUTIONS PRIVATE LIMITED	Director	05/05/2008	05/05/2008	Active	NO
3	U17301BR2009PTC014800	SUNRISE POLYPACK PRIVATE LIMITED	Director	18/11/2010	18/11/2010	Active	NO

Name :

Mr. Siddharth Bimal Bansal

Designation :

Director

Address :

101, Navkruti Apartment, Lal Darwaja, Athwalines, Surat – 395007, Gujarat, India

Date of Birth/Age :

20.06.1985

Date of Appointment :

24.04.2008

DIN No.:

01553023

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	U14219MH2005PTC240892	RAW EDGE INDUSTRIAL SOLUTIONS PRIVATE LIMITED	Director	14/02/2005	14/02/2005	Active	NO
2	U26931MH2008PTC243333	MAGICRETE BUILDING SOLUTIONS PRIVATE LIMITED	Director	24/04/2008	24/04/2008	Active	NO
3	AAB-2442	GRAYMONT INDUSTRIES LLP	Designated Partner	05/12/2012	05/12/2012	Active	NO

Name :

Mr. Puneet Mittal Vinod

Designation :

Director

Address :

3rd Floor, Flat-301, Plot-311, Sy No-5,Poonam Palace, Near Zone Office, Athwalines, Surat – 395001, Gujarat, India

Date of Appointment :

26.07.2012

DIN No.:

05353138

KEY EXECUTIVES

Name :	Mr. Jitendra
Designation :	General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares	Holding %
Alok Mittal	30000	1.77
Anita Mittal	100	0.01
Bimal Bansal	116875	6.89
Balkishan Poddar	90000	5.31
Chouthmal Mittal	29600	1.74
Bala Bansal	42075	2.48
Indu Mittal	100	0.01
Shweta Bansal	37400	2.20
Nandlal B. Roongta	29200	1.72
Pankaj Nandlal Roongta	47000	2.77
Prem Lata Poddar	90000	5.31
Puneet Mittal	100	0.01
Rajesh Poddar	98000	5.78
Rita Mittal	100	0.01
Sanjay Poddar	98000	5.78
Shailja Tex Print Private Limited	263750	15.55
Shree Raghukul Tex Prints Private Limited	265250	15.64
Sidharth Bansal	116875	6.89
Sourabh Bansal	116875	6.89
Sudhir Mittal	30000	1.77
Sunil Kumar Roongta	35800	2.11
Shalini Bansal	37400	2.20
Sunita Poddar	100000	5.89
Vinod Mittal	22000	1.30
Total	1696500	100.03

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	31.18
Directors or relatives of directors	68.82
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Building Material.
Brand Names :	“MAGICRETE”
Terms :
Selling :	Cash and Credit [30-60 Days]
Purchasing :	Cash and Credit [30-60 Days]

GENERAL INFORMATION

Customers :

End Users and Others [Developers of Building]

No. of Employees :

400 (Approximately)

Bankers :

Ø State Bank of India, SCB, 1st Floor Kiran Chambers, Opposite J.K. Tower, Ring Road, Surat - 395002, Gujarat, India

Ø HDFC Bank Limited

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
LONG TERM BORROWINGS
Term loan from
State Bank of India	87.869	39.496
Vehicle purchase loan from
HDFC Bank	0.000	0.048
SHORT TERM BORROWINGS
Installments due within 12 months
State Bank of India	23.917	18.216
HDFC Bank	0.062	0.516
Cash Credit facility	61.496	41.285
Overdraft facility	6.083	0.000
Total	179.427	99.561

Banking Relations :	--
Auditors :
Name :	DSI and Company Chartered Accountants
Address :	MF/14-26, Nariman Point Shopping Center, Near Rughuvir Bunglows, City Light Road, Surat – 395007, Gujarat, India
Tel. No.:	91-261-3992929/ 3994747
Fax No.:	91-261-3053838
E-Mail :	dsi.surat@gmail.com
Income-tax PAN of auditor or auditor's firm :
Enterprise controlled by key management personnel :	Ø Shree Saishraddha Industries Private Limited Ø Sunrise Polypack Private Limited

CAPITAL STRUCTURE

AS ON 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2,050,000	Equity Shares	Rs. 10/- each	Rs. 20.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,696,500	Equity Shares	Rs. 10/- each	Rs. 16.965 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2,050,000	Equity Shares	Rs. 10/- each	Rs. 20.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,314,000	Equity Shares	Rs. 10/- each	Rs. 13.140 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	13.140	12.390
(b) Reserves & Surplus	192.535	95.983
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	205.675	108.373
(3) Non-Current Liabilities
(a) long-term borrowings	91.866	44.209
(b) Deferred tax liabilities (Net)	20.098	12.738
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	111.964	56.947
(4) Current Liabilities
(a) Short term borrowings	91.558	60.017
(b) Trade payables	60.952	62.732
(c) Other current liabilities	0.907	0.322
(d) Short-term provisions	8.126	1.965
Total Current Liabilities (4)	161.543	125.036
TOTAL	479.182	290.356
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	307.474	154.764
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	2.464	2.464
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	1.861	1.234
(e) Other Non-current assets	0.134	0.201
Total Non-Current Assets	311.933	158.663
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	47.177	16.735
(c) Trade receivables	68.510	75.828
(d) Cash and cash equivalents	18.260	2.073
(e) Short-term loans and advances	11.859	23.344
(f) Other current assets	21.443	13.713
Total Current Assets	167.249	131.693
TOTAL	479.182	290.356

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		12.390
2] Share Application Money		0.000
3] Reserves & Surplus		100.510
4] (Accumulated Losses)		0.000
NETWORTH		112.900
LOAN FUNDS
1] Secured Loans		95.089
2] Unsecured Loans		1.500
TOTAL BORROWING		96.589
DEFERRED TAX LIABILITIES		10.148
TOTAL		219.637
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		129.657
Capital work-in-progress		0.232
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	10.532
	Sundry Debtors	40.433
	Cash & Bank Balances	0.757
	Other Current Assets	0.000
	Loans & Advances	45.790
Total Current Assets		97.512
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	17.781
	Other Current Liabilities	0.106
	Provisions	0.000
Total Current Liabilities		17.887
Net Current Assets		79.622
MISCELLANEOUS EXPENSES		10.123
TOTAL		219.637

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	468.516	286.461	72.692
		Other Income	2.420	4.415	0.945
		TOTAL (A)	470.936	290.876	73.637
Less	EXPENSES
		Cost of material consumed	220.399	135.314	66.211
		Changes in inventory	1.656	(2.223)
		Employee benefit expenses	44.084	17.878
		Other Expenses	141.320	108.413
		TOTAL (B)	407.459	259.382	66.211
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		63.477	31.494	7.426
Less	FINANCIAL EXPENSES (D)		14.185	11.802	3.281
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		49.292	19.692	4.145
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.505	9.807	4.446
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		37.787	9.885	(0.301)
Less	TAX (H)		15.486	4.556	10.138
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		22.301	5.329	(10.439)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(4.526)	(9.855)	0.584
	BALANCE CARRIED TO THE B/S		17.775	(4.526)	(9.855)
	Earnings/ (Loss) Per Share (Rs.)
	Basic		16.97	4.30	NA
	Diluted		17.96	4.30	NA

Particulars	31.03.2013
Sales Turnover (Approximately)	550.000

The above information has been parted by Mr. Jitendra [General Manager]

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.74	1.83	(14.18)
Net Profit Margin (PBT/Sales)	(%)	8.07	3.45	(0.41)
Return on Total Assets (PBT/Total Assets}	(%)	7.93	3.43	(0.13)
Return on Investment (ROI) (PBT/Networth)		0.18	0.09	0.00
Debt Equity Ratio (Total Debt/Networth)		0.89	0.96	0.86
Current Ratio (Current Asset/Current Liability)		1.04	1.05	5.45

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	Yes
10]	Designation of contact person	Yes
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	Yes
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

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
LONG TERM BORROWINGS
From Shareholders, Body Corporate and Directors	3.997	4.665
Total	3.997	4.665

Note:

The registered office of the company has been shifted from 02, Navkruti Apartment, opposite ICICI Bank, Lal Bunglow, Athwalines, Surat – 395001, Gujarat, India to the present w.e.f.27.04.2013

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U26931GJ2008PTC053677
Name of the company	MAGICRETE BUILDING SOLUTIONS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Business Point, Office No. 702-B, Plot No. 22, S.V. Road, Opposite Andheri Subway, Andheri [West], Mumbai – 400058, Maharashtra, India Email: sbmgandco@gmail.com
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge) Others [Plant and Machinery]
Particular of charge holder	State Bank of India, SCB, 1st Floor Kiran Chambers, Opposite J.K. Tower, Ring Road, Surat - 395002, Gujarat, India Email: sbi.04083@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Agreement of hypothecation of goods and assets
Date of instrument Creating the charge	09.03.2013
Amount secured by the charge	Rs. 644.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC: 3.00% above base rate SLC: 4.00% above base rate TL-1,2,3,4: - 3.15% above base rate Terms of Repayment Working capital: 1 year payable on demand TL: as per sanctioned terms and conditions TL (new): 75 installments after moratorium of 9 months Schedule as per sanction letter Margin Raw material: 25% Stock in process 0.00% Finished goods: 30% Book debts / receivables: 50% Project LC/ imported machinery: 25% Land & buildings: 25.10% Indigenous plant & machinery:25.56%
Short particulars of the property charged	Aerated Concrete production line, silos, Boilers, forklifts, rails, DG sets, transformers and all other plant and machineries installed and kept at all factory sites

FIXED ASSETS:

Ø Land

Ø Factory Building

Ø Plant and Machinery

Ø Furniture and Fixture

Ø Electrical Installation

Ø Office Equipments

Ø Computer Software

Ø Vehicles

PRESS RELEASE:

MOTILAL OSWAL PE INVESTS RS 350.000 MILLIONS IN MAGICRETE BUILDING

Mumbai March 19, 2013

Investment to help institutionalize the business, accelerate growth, enhance the brand with stake holders

India Business Excellence Fund II and India Business Excellence Fund IIA, funds managed by Motilal Oswal Private Equity Advisors Private Limited invested Rs 35 crore in Magicrete Building Solutions Private Ltd, a leading manufacturer of Autoclave Aerated Concrete Blocks in India.

Magicrete, started in 2008, is primarily in the business of manufacturing AAC Blocks under the brand “Magicrete” and has recently forayed into offering gypsum plaster and dry mortar under the brand “Magicplast” and “Magicbond” respectively.

Sourabh Bansal, Managing Director of Magicrete, said, “This (investment) will help us institutionalize our business, accelerate our growth and enhance our brand with all stake holders”

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 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. 60.34
UK Pound	1	Rs. 90.79
Euro	1	Rs. 77.81

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		36

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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