MIRA INFORM REPORT

Report Date :

11.06.2013

IDENTIFICATION DETAILS

Name :	LAMINA SUSPENSION PRODUCTS LIMITED
Registered Office :	8^th Floor, Ram Bhavan Complex, Kodiabail, Mangalore-575003, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	26.11.1975
Com. Reg. No.:	08-002910
Capital Investment / Paid-up Capital :	Rs. 23.468 Millions
CIN No.: [Company Identification No.]	U27109KA1975PLC002910
TAN No.: [Tax Deduction & Collection Account No.]	BLRL00837E
PAN No.: [Permanent Account No.]	AAACL3061H
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer and Exporter of Automobile Leaf Springs.
No. of Employees :	550 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (35)

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

Maximum Credit Limit :	USD 210000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears huge external borrowing during 2012, which acts as a threat to the liquidity. However, trade relations are fair. Business is active. Payments terms are reported as 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	CRISIL
Rating	B+ (Long Term Rating)
Rating Explanation	High risk of default.
Date	18.07.2012

Rating Agency Name	CRISIL
Rating	A4 (Short Term Rating)
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	18.07.2012

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.

INFORMATION PARTED BY

Name :	Mr. Avinash
Designation :	Director
Contact No.:	91-9880734679
Date :	08.06.2013

LOCATIONS

Registered Office :	8^th Floor, Rama Bhavan Complex, Kodialbail, Mangalore-575003, Karnataka, India
Tel. No.:	91-824-2408679/2440556/2440561/2440587
Mobile No.:	91-9880734679 (Mr. Avinash)
Fax No.:	91-824-2440994
E-Mail :	mylamina@hotmail.com saliancs@gmail.com
Website :	http://www.laminasprings.com
Area :	200000 Sq. Ft.
Location :	Owned
Factory:	17/19 B, Industrial Area, Baikmpady, Mangalore-575011, Karnataka, India
Area :	Owned

DIRECTORS

AS ON 28.09.2012

Name :	Mr. Nitte Vinay Hegde
Designation :	Managing Director
Address :	Sadanand Shiv Bagh, Kadri, Mangalore-575002, Karnataka, India
Date of Birth/Age :	02.04.1939
Date of Appointment :	26.11.1975
DIN No.:	00043080
Name :	Mr. Tonse Ramesh Shenoy
Designation :	Director
Address :	Vaishalya M.G. Cross Road, Kodialbail (West), Mangalore-575003, Karnataka, India
Date of Birth/Age :	13.04.1937
Date of Appointment :	26.11.1975
DIN No.:	00053932
Name :	Mr. Guru Prasad Adyanthaya
Designation :	Whole Time Director
Address :	SP 3, Hisg Race, Condominium Martin Pais Road, Hat Hill, Mangalore-575006, Dakshina Kannada, Karnataka, India
Date of Birth/Age :	10.09.1953
Date of Appointment :	26.11.1975
DIN No.:	00043142
Name :	Mr. Vishal Hegde
Designation :	Director
Address :	Sadanand Shiv Bagh, Kadri, Mangalore-575002, Karnataka, India
Date of Birth/Age :	03.10.1971
Date of Appointment :	23.10.1998
DIN No.:	00043245
Name :	Mr. Jayaram Mulloly
Designation :	Director
Address :	Pusha Marnamikatta, Mangalore-575001, Dakshina Kannada, Karnataka, India
Date of Birth/Age :	14.02.1942
Date of Appointment :	30.09.1996
DIN No.:	00043335
Name :	Mr. Avinash Shenoy
Designation :	Director
Address :	Vaishalya, M G Road, Kodialguthu West, Mangalore-575003, Dakshina Kannada, Karnataka, India
Date of Birth/Age :	21.11.1977
Date of Appointment :	17.08.2007
DIN No.:	00043540
Name :	Mr. Surendra Jayaram Reddy
Designation :	Director
Address :	12/13, Langford Road, Bangalore-560025, Karnataka, India
Date of Birth/Age :	26.06.1937
Date of Appointment :	08.09.2008
DIN No.:	00109421

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Shareholders	No. of Shares
N V Hegde	9395
T R Shenoy	14040
G P Adyanthaya	14319
Sujatha V Hegde	571
Indira S Shetty	57
Asha Y Ajila	157
Vatsala R Shetty	57
Sumitra R Shetty	113
Shambhavi V Shetty Archana Shetty	100
Sushmita Shetty	100
Surekha R Adyanthaya	25
Rathnavathi P Shetty	113
Bhavani Adyanthaya	100
Shalini R Shetty	57
B T Bhandary	57
Vidya R Hegde	57
U Sadanand Shetty	50
J Mohandas Prabhu	100
V Ravindra Babu	100
Mohini R Shenoy	560
N KamalaDevi V Kudva	57
S S Adyanthaya	100
Dr N Vishwanath Adyanthaya	526
N Santhosh Hegde	45
Arundathi K Ajila Chitrajith	50
Sharmila Kapur Divya Kapur Nikil Kapur	12
Chandralekha P Hegde	2
D Veerandra Heggade	2
Poornima Shenoy	80
Gopalkrishna Shenoy	80
Avinash Shenoy	80
Ashwitha Punja	1
Chandrakala G Raykar	40
Dinesh Prabhu	40
Shailesh Prabhu	30
Ramesh Prabhu	40
Sumana Prabhu	30
Vidya Prabhu	30
Nirmala Adyanthaya	523
Sucharitha R Hegde	100
Sujyothi Shetty	25
D Vinaya Kumar	28
Y Ruvindranath Bhal	25
Vishal Hegde	4770
Suresh Chandra Malpani	6
Arundathi K Ajila Chitrajith	7
Vanamala B Ajila	13
Shatheri Prabhu	13
Sukumar Adyanthaya	13
Smitha Hariprasad Shetty	13
Vijaya Y Shety Sushmitha Shetty	13
V Amarendra Babu	13
TOTAL	46935

AS ON 28.09.2012

Equity Shares Break Up	Percentage of Holding
Directors or relatives of Directors	50.00
Other top fifty shareholders	50.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Automobile Leaf Springs.

Products :

Product Description	Item Code
Leaf Springs for Motor Vehicles	732010.01

Exports :

Countries :

• USA
• UK
• Italy
• Taiwan
• South Korea
• France
• Saudi Arabia

Terms :

Selling :

Cash, Credit

Purchasing :

Cash, Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Unit	Quantity (M.T)
Installed Capacity	12000
Actual Production	9962

Note: Production does not include the quantity of 206 MT (Previous year 226 MT) of springs produced on conversion basis.

GENERAL INFORMATION

Customers :

Wholesalers and OEM’s

No. of Employees :

550 (Approximately)

Bankers :

• Syndicate Bank, Hampankatta Branch, Mangalore-575001, Karnataka, India
• Corporation Bank, Vishwa Kamala Building, Main Road, Baikampady, Mangalore-575011, Karnataka, India
• Andhra Bank, Ajanta Complex, Hampankatta, Mangalore-575001, Karnataka, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
LONG TERM BORROWINGS
Term Loans
From Banks	0.000	16.119
From Co-operative society	3.957	5.633
SHORT TERM BORROWINGS
Loans repayable on demand
Working capital from banks	84.921	68.345
TOTAL	88.878	90.097
NOTE LONG TERM BORROWINGS (i) Term loans from banks as referred above are secured by Paripassu charge on the entire fixed assets of the Company. It is also secured by the personal guarrantees of the promoter directors. (ii) Term loan from Co-operative society as referred above is secured by mortgage on the Company’s properties at Calicut and Vijayawada. It is also secured by the personal guarntees of the promoter directors. SHORT TERM BORROWINGS The working capital loan as referred above is secured by hypothecation of stock in trade and book debts of the Company. It is also secured by the personal guarantees of the promoter directors.

Banking Relations :	--
Auditors :
Name :	G Hariram Shenoy Chartered Accountant
Address :	No. 5 and 6 Sevashram Apartments, Bunts Hostel Road, Mangalore-575003, Karnataka, India
PAN No.:	ANGPS3432D
Subsidiaries :	Lamina Foundries Limited CIN No.:- L85110KA1981PLC004151
Associates :	Manmet Engineering Products Private Limited Elespee Products Private Limited Lamina International

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.500/- each	Rs. 25.000 Millions
50000	15% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs. 5.000 Millions
	TOTAL		Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
46935	Equity Shares	Rs.500/- each	Rs. 23.468 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	23.468	22.067
(b) Reserves & Surplus	30.783	23.891
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
(3) Non-current liabilities
(a) long-term borrowings	126.583	122.138
(b) Deferred tax liabilities (Net)	1.445	4.400
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
(4) Current liabilities
(a) Short term borrowings	84.921	68.345
(b) Trade payables	149.299	174.975
(c) Other current liabilities	87.661	68.278
(d) Short-term provisions	23.871	21.666
TOTAL	528.031	505.760
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	101.011	99.710
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	5.646	3.460
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	17.406	17.039
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	6.026	6.064
(e) Other Non-current assets	0.000	0.000
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	167.601	174.472
(c) Trade receivables	184.935	154.880
(d) Cash and cash equivalents	28.466	29.973
(e) Short-term loans and advances	16.940	20.162
(f) Other current assets	0.000	0.000
TOTAL	528.031	505.760

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		22.067
2] Share Application Money		0.000
3] Reserves & Surplus		19.614
4] (Accumulated Losses)		0.000
NETWORTH		41.681
LOAN FUNDS
1] Secured Loans		136.009
2] Unsecured Loans		104.653
TOTAL BORROWING		240.662
DEFERRED TAX LIABILITIES		4.962
TOTAL		287.305
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		98.545
Capital work-in-progress		0.000
INVESTMENT		17.039
DEFERREX TAX ASSETS		0.625
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	120.728
	Sundry Debtors	151.219
	Cash & Bank Balances	58.226
	Other Current Assets	0.000
	Loans & Advances	21.786
Total Current Assets		351.959
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	136.149
	Other Current Liabilities	23.771
	Provisions	20.943
Total Current Liabilities		180.863
Net Current Assets		171.096
MISCELLANEOUS EXPENSES		0.000
TOTAL		287.305

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	799.099	771.597	704.213
		Other Income	2.615	5.062	2.688
		TOTAL (A)	801.714	776.659	706.901
Less	EXPENSES
		Material and manufacturing expenses	513.396	526.904	634.002
		Purchases of stock-in-trade	47.251	45.365
		Employee benefits expense	94.443	94.645
		Other expenses	53.931	52.713
		Changes in inventories of finished goods, work-in-progress and stock in trade	0.587	(23.109)
		TOTAL (B)	709.608	696.518	634.002
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		92.106	80.141	72.899
Less	FINANCIAL EXPENSES (D)		50.987	44.482	40.115
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		41.119	35.659	32.784
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.577	9.235	8.613
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		31.542	26.424	24.171
Less	TAX (H)		10.354	8.863	8.062
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		21.188	17.561	16.109
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5.172	2.482	0.992
Less	APPROPRIATIONS
		Transfer to General Reserve	3.000	2.004	1.710
		Proposed Dividend on Equity Shares	11.734	11.034	11.034
		Corporate Dividend Tax	1.904	1.833	1.875
	BALANCE CARRIED TO THE B/S		9.722	5.172	2.482
	Earnings Per Share (Rs.)		451.43	397.88	365.00

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.64	2.26	2.28
Net Profit Margin (PBT/Sales)	(%)	3.95	3.42	3.43
Return on Total Assets (PBT/Total Assets}	(%)	7.70	6.79	5.37
Return on Investment (ROI) (PBT/Networth)		0.58	0.57	0.57
Debt Equity Ratio (Total Debt /Networth)		3.90	4.14	5.77
Current Ratio (Current Asset/Current Liability)		1.14	1.15	1.95

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	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)	Yes
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 Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
LONG TERM BORROWINGS
Deposits	83.608	64.665
Other loans and advances	39.018	35.721
TOTAL	122.626	100.386

OPERATIONS

During the year the Company achieved a gross turnover of Rs. 857.100 Millions against Rs. 828.000 Millions achieved during the previous year representing a growth of around 3.51%. In terms of quantity, the company sold 9,176 tons against 9,870 tons sold during the previous year resulting in a drop of around 7%. The increase in turnover against a drop in quantity sold is due to increase in the selling price necessitated out of increase in the cost of raw materials. The sluggishness in the market observed during the second half of the previous year continued during the year. Inspite of reduced level of activities, the company could achieve a pre-tax profit of Rs. 31.502 Millions which is around 20% more than that of previous year. The Company could achieve higher profitability because of better product mix with more value added items. The transactions also include that of the merged company which improved the profitability.

FUTURE OUTLOOK

The year 2011-12 experienced a very sluggish market and the situation continues to be the same in the ensuing year also. The domestic market is showing high resistance. However the company has been able to maintain the export market segment in spite of very adverse market condition due to economic crisis in Europe. The Directors are taking all efforts to combat the market resistance.

AMALGAMATION

The Honourable High Court of Karnataka has approved the scheme of amalgamation of Lamina Engineering Company Private Limited with the company vide their order dated 2nd December 2011. The scheme of amalgamation was effective from the appointed date of 1st April 2011. As per the scheme of amalgamation , the shareholders of Lamina Engineering Company Private Limited, were given one share of the Company to every 5 shares held by them in of Lamina Engineering Company Private Limited, and accordingly the issued and paid up Share Capital of the company increased by Rs. 1.400 Millions and for this purpose the share capital of the company was reclassified by increasing the Authorized equity share capital to 50,000 equity shares of Rs. 500/- each and reducing Authorized preference share capital to 50,000 shares of Rs. 100/- each.

The financial statements as on 31st March 2012 include the assets and liabilities of the merged company. Hence, the previous year figures are not comparable to that extent.

FORM 8

Corporate identity number of the company	U27109KA1975PLC002910
Name of the company	LAMINA SUSPENSION PRODUCTS LIMITED
Address of the registered office or of the principal place of business in India of the company	8^th Floor, Rama Bhavan Complex, Kodialbail, Mangalore-575003, Karnataka, India
This form is for	Modification of charge
Charge identification number of the charge to be modified	10304754
Type of charge	Any interest in immovable property Book debts Movable property (not being pledge)
Particular of charge holder	Syndicate Bank, Hampankatta Branch, Mangalore-575001, Karnataka, India
Nature of instrument creating charge	1. Composite Hypothecation Agreement. 2. Confirmation of Creation of Second/Subsequent Equitable Mortgage.
Date of instrument Creating the charge	19.11.2012
Amount secured by the charge	Rs. 257.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 1. Base rate + 3.75 % for Working Capital Limits 2. 14.25% for Short Term Loan Terms of repayment Working Capital Limits are running Accounts. Short Term Loan of Rs.30.000 Millions repayable within 35 months. Margin By operation of account upto limit/drawing power fixed. Extent and operation of the charge I charge on entire current assets and fixed assets of the Company. Other LIMITS RS. IN MILLIONS OD 90.000 DATBD 16.500 CDD 2.500 SHORT TERM LOAN 30.000 ILC 118.000 BG 0.500 TOTAL 257.500
Short particulars of the property charged (Including location of the property)	Stock and Finished goods and Plant and Machinery located at factory premises at No.17-20, Industrial Area, Baikampady, New Mangalore Plot No. 17,18,19 in Sy. No. 89,90,91 at Baikampady Village in Suratkal Hobli, Mangalore, Plot No.196-B in S. No. 90, at Baikampady, Suratkal Hobli, Mangalore Plot No. 20 B in S. No. 89 in Baikampady Industrial Area measuring 2356 sq.mts.
Date of instrument modifying the charge	29.07.2011
Particulars of the present modification	The Working capital limits stand modified from Rs. 272.500 to Rs.257.500 Millions due to the present modification.

FIXED ASSETS

• Freehold Land
• Building
• General Machinery
• Furniture and Fixtures
• Office Appliances
• Vehicles
• Plant and Machinery

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 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. 57.78
UK Pound	1	Rs. 89.71
Euro	1	Rs. 76.23

INFORMATION DETAILS

Information Gathered by :	PLV
Report Prepared by :	DPT

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	3
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		35

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	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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