MIRA INFORM REPORT

Report Date :

15.03.2013

IDENTIFICATION DETAILS

Name :	SKM STEELS LIMITED
Registered Office :	30, C.P. Tank Road, 2^nd Floor, Mumbai – 400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.12.1994
Com. Reg. No.:	11-083403
Capital Investment / Paid-up Capital :	Rs. 47.638 Millions
CIN No.: [Company Identification No.]	U27100MH1994PLC083403
TAN No.: [Tax Deduction & Collection Account No.]	MUMS37214C/ MUMS41878E/ MUMS42024D
PAN No.: [Permanent Account No.]	AADC57801F/ AADC57801F/ AADC57801F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Stainless Steel Products.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 5340000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is a part of SKM Group. It is a well established company having a moderate track record. The latest financial are not made available with the government department. As per previous year’s, the profitability of the company appears to be low. The external borrowing seems to be increasing over a year. However, the performance capability is high. The subject gets support from its holding. Trade relations are reported to be fair. Business is active. Payments are unknown. The company can be considered for business with slight caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

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	ICRA
Rating	Long term Fund based : (ICRA) BBB-
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation. It carry moderate credit risk.
Date	January 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. Ramesh
Designation :	Accounts Department
Contact No.:	91-22-40716600
Date :	14.03.2013

LOCATIONS

Registered Office :	30, C.P. Tank Road, 2^nd Floor, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-23862884/ 22336691/ 66336691/ 40716600/ 40716666
Fax No.:	91-22-23886165/ 23805392/ 94
E-Mail :	info@skmsteels.com sales.ss@skmsteels.com purchase.ss@skmsteels.com skm@bom3.vsnl.net.in pankajshah@skmsteels.com sales@skmsteels.com accounts@skmsteelsltd.com export@skmsteelsltd.com
Website :	http://www.skmsteels.com
Location :	Rented
Head Office :	SKM House, 12, Khetwadi 6^th Lane, Mumbai – 400004, Maharashtra, India
Factory :	Plot No. 2803, GIDC Phase III, Umbergaon - 396171, District Valsad, Gujarat, India
Marketing Division :	Sandhurst Building, 3^rd Floor, Opera House, 524, S.V.P. Road, Mumbai, Maharashtra, India
Branch Offices :	v 13, Mooker Nalla , Muthu Street, Chennai – 600001, Tamilnadu, India v 311, Apollo Tower, M.G. Road, Indore, Madhya Pradesh, India v 202, Ashwarath, Opposite Fortune Landmark, Usmanpura, Ashram Road, Ahmedabad – 380013, Gujarat, India
Export Division :	66, C.P. Tank Road, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-66272727
Fax No.:	91-22-66570103
E-Mail :	export@skmsteelsltd.com sales@skmsteelsltd.com

DIRECTORS

AS ON 28.09.2012

Name :	Mr. Kirtilal Moolchand Shah
Designation :	Managing director
Address :	Flat No.1001, 10^th Floor, Garden View, 8, J Mehta Marg, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	01.03.1949
Qualification :	B. Sc
Date of Appointment :	01.12.1994
Voter ID :	MT/04/024/0135554
PAN No.:	AAHPS8248K
DIN No.:	00105703
Name :	Mr. Pankaj Dahyalal Shah
Designation :	Whole-time director
Address :	Flat No.161, 16^th Floor, Enterprise Apartment, Forjet Hill Road, Mumbai – 400 036, Maharashtra, India
Date of Birth/Age :	19.02.1973
Qualification :	B.Com
Date of Appointment :	01.12.1994
Voter ID :	ISD1526912
PAN No.:	AAEPS7087D
DIN No.:	00078997
Name :	Mr. Chirag Shantilal Shah
Designation :	Director
Address :	704, Gokul Apartments, 14^th Khetwadi Back Road, Mumbai – 400 004, Maharashtra, India
Date of Birth/Age :	19.03.1977
Qualification :	B.Com
Date of Appointment :	01.07.2000
Voter ID :	ISD1587963
PAN No.:	AAGPS8472C
DIN No.:	00081637
Name :	Mr. Kalpesh Haribhai Chowdhary
Designation :	Additional director
Address :	Makharia House, 1^st Floor, 327, SVP Road, Mumbai – 400 002, Maharashtra, India
Date of Birth/Age :	06.11.1971
Qualification :	B.Com
Date of Appointment :	29.09.2011
Voter ID :	MT/04/023/0114628
PAN No.:	AABPC9287C
DIN No.:	00084800
Name :	Mr. Amit Kirtilal Shah
Designation :	Director
Address :	Flat No.1001, 10^th Floor, Garden View, 8, J Mehta Marg, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	03.08.1980
Qualification :	B.Com
Date of Appointment :	11.06.2001
Voter ID :	ISD1622265
PAN No.:	ALTPS7632L
DIN No.:	00105932
Name :	Mr. Ram Anugrah Singh
Designation :	Director
Address :	B/ 34, Abhishek Apartment, Block No. 12, Cross Road – 2, Lokhandwala Complex, Andheri, Mumbai – 400 053, Maharashtra, India
Date of Birth/Age :	02.01.1946
Qualification :	B.Com
Date of Appointment :	27.11.1995
DIN No.:	00369580

KEY EXECUTIVES

Name :	Mr. Ramesh
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Shareholders	No. of Shares
Shah Kirtilal Moolchand and Shah Veenaben Kirtilal	475400
Shah Amit Kirtilal and Shah Veenaben Kirtilal	474000
SKM Constructions Private Limited, India	400000
Shah Veenaben Kirtilal and Shah Kirtilal Moolchand	475000
Sapan Chemicals Limited, India (Earlier known as Suryadeep Salt and Chemicals Limited)	12000
Kailash Ficom Limited, India	18000
Zen Shaving Limited, India	4000
Tribhuvan Housing Limited, India	10000
Shah Kirtilal Moolchand HUF	468000
Shah Ruchita Amit and Shah Amit Kirtilal	402900
Shah Amit Kirtilal HUF	476000
Chowdhary Anju Kalpesh	378000
Shah Sejal Chirag and Shah Chirag Shantilal	365450
SKM Industries Private Limited, India	65000
SKM Capital and Holdings Private Limited, India	15000
Shree Parul Developers Private Limited, India	110000
Megha Bhavesh Shah	125000
Juvenile Capfin Private Limited, India	490000
Total	4763750

AS ON 28.09.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	2.62
Bodies corporate	73.78
Directors or relatives of directors	23.60
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Stainless Steel Products.

Products :

ITC Code	Product Descriptions
7221	Stainless Steel Wire Rods/Rounds
7222	Stainless Steel Bright Bars
7223	Stainless Steel Wire
7204	Stainless Steel Scrap
7208	CRCA/HR Scrap

Exports :

Products :

Finished Goods

Countries :

v Germany

v Indonesia

v Italy

v Korea

v USA

v Thailand

v UK

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Licensed Capacity: No Licence Required

Particulars	Unit	Installed Capacity
Stainless Steel Bright Bars	M. Tonnes	9000
Power	(Kw)	750

Particulars	Unit	Actual Production
Own and On Jobwork Basis:
Stainless Steel Bright Bars	M. Tonnes	1938.553
Stainless Steels Wires	M. Tonnes	0.000
Stainless Steel Rods/ Rounds	M. Tonnes	11252.040
Stainless Steel Scrap	M. Tonnes	312.586
Power	(‘000 Kwh)	1093.405

GENERAL INFORMATION

Customers :

Manufacturer

No. of Employees :

200 (Approximately)

Bankers :

v Yes Bank Limited, 9^th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India [91-22-66699000]

v Commonwealth Bank of Australia, Level 2, Hoechst House, Nariman Point, Mumbai – 400021, Maharashtra, India

v ICICI Bank Limited, Landmarkrace Cource Circle, Alkapuri, Baroda – 390015, Gujarat, India

v Bank of India (Lead Bank of BOI Consortium), C. P. Tank Branch, Chandaramji Girl’s High School Building, 95 Vithalbhai Patel Road, Mumbai - 400004, Maharashtra, India

v The Federal Bank Limited, Corporate Banking Branch, 1^st Floor, Raja Bahadur Mansion, 32, Bombay Samachar Marg, Fort, Mumbai – 400001, Maharashtra, India

v Bank of India Limited, Maharashtra, India

v Standard Chartered Bank, Abhijeet II, Ground Floor, Near Mithakali Six Road, Ahmedabad - 380006, Gujarat, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Loans taken for vehicles secured	2.931	0.197
Other debt secured	2837.846	1534.566
Total	2840.777	1534.763

Banking Relations :	--
Financial Institutions :	Edelweiss Finance and Investments Limited, 2^nd Floor, MB Towers, Plot No.5, Road No.2, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India
Auditors :
Name :	R.M. Doshi and Company Chartered Accountants
Address :	307, Vaishali Apartments, 30/31, Parekh Street, Prathana Samaj, Mumbai 400 004, Maharashtra, India
Tel. No.:	91-22-67437416/ 17
Fax No.:	91-22-23824232
E-Mail :	rmd@mcdoshi.com
Income-tax PAN of auditor or auditor's firm :	AABPD5830G
Associate :	Ø Heavy Metal and Tubes Limited Ø Maitri Metals Private Limited Ø SKM Enterprises Private Limited Ø SKM Industries Private Limited Ø SKM Metal Processors Private Limited Ø Khyati Fincap Private Limited Ø Suns tar Infratech Private Limited Ø SKM Construction Private Limited Ø BKC Developers Private Limited
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	Ø Bharat Steel Yard Ø Shree Steel Depot Ø Shree Chintamani Stainless
Subsidiaries :	SKM Alloys Private Limited [U27100MH1997PTC111184]
Other Related Party :	SKM Foundation

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10,000,000	Equity Shares	Rs. 10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,763,750	Equity Shares	Rs. 10/- each	Rs. 47.638 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		47.638	49.900	48.900
2] Share Application Money		0.000	20.000	45.348
3] Reserves & Surplus		1287.773	1147.262	928.243
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1335.411	1217.162	1022.491
LOAN FUNDS
1] Secured Loans		2840.777	1534.763	800.318
2] Unsecured Loans		96.200	81.000	76.330
TOTAL BORROWING		2936.977	1615.763	876.648
DEFERRED TAX LIABILITIES		9.603	11.557	12.116
TOTAL		4281.991	2844.482	1911.255
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		90.028	57.485	51.989
Capital work-in-progress		158.367	54.894	27.024
INVESTMENT		19.626	19.609	20.738
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1469.357	880.067	470.534
	Sundry Debtors	2722.011	1766.560	1195.878
	Cash & Bank Balances	68.274	179.173	173.420
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	200.169	137.734	138.871
Total Current Assets		4459.811	2963.534	1978.703
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	381.363	167.072	140.138
	Other Current Liabilities	14.432	48.623	18.391
	Provisions	50.046	35.345	8.670
Total Current Liabilities		445.841	251.040	167.199
Net Current Assets		4013.970	2712.494	1811.504
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4281.991	2844.482	1911.255

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	16701.680	9232.855	9454.387
		Other Income	122.908	109.142	44.836
		TOTAL (A)	16824.588	9341.997	9499.223
Less	EXPENSES
		Consumption materials changes inventories	15673.717	8554.713
		Manufacturing service costs	251.717	116.092
		Employee related expenses	35.799	24.209
		Administrative selling other expenses	484.660	350.033
		TOTAL (B)	16445.893	9045.047	9287.141
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		378.695	296.950	212.082
Less	FINANCIAL EXPENSES (D)		154.336	86.079	175.794
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		224.359	210.871	36.288
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.152	5.289	5.717
	PROFIT BEFORE TAX (E-F) (G)		216.207	205.582	30.571
Less	TAX (H)		77.603	65.563	14.469
	PROFIT AFTER TAX (G-H) (I)		138.604	140.019	16.102
	Prior Period Adjustments		0.000	0.000	1.382
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		N.A.	427.143	409.659
	BALANCE CARRIED TO THE B/S		139.604	567.162	427.143
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	360.328	169.245	432.021
		Compensation Earned	17.524	0.000	0.000
	TOTAL EARNINGS		377.852	169.245	432.021
	IMPORTS
		Traded Goods	2473.901	617.250	302.707
	Earnings Per Share (Rs.)		29.10	28.06	3.58

Particulars	31.03.2012
Sales Turnover (Approximately)	17000.000

The above information has been parted by Mr. Ramesh (Accounts Department)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.82	1.50	0.17
Net Profit Margin (PBT/Sales)	(%)	1.29	2.23	0.32
Return on Total Assets (PBT/Total Assets}	(%)	4.75	6.81	1.51
Return on Investment (ROI) (PBT/Networth)		0.16	0.17	0.03
Debt Equity Ratio (Total Debt/Networth)		2.20	1.33	0.86
Current Ratio (Current Asset/Current Liability)		10.00	11.81	11.83

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Creditors due small micro enterprises	58.603	4.202	0.000
Creditors due others	322.760	162.870	140.138
Sundry creditors	381.363	167.072	140.138

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

UNSECURED LOANS

Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Loans directors unsecured	0.000	34.000
Other debt unsecured	96.200	47.000
Total	96.200	81.000

BUSINESS RESULTS AND OPERATIONS

Recessionary trends continued to prevail in the US and the European markets, however the domestic demands surged in view of development in infrastructure and other sectors in the Indian economy. With better demand and a good cash flow in the domestic markets, company could achieve turnover of Rs. 16701.700 Millions against Rs. 9232.900 Millions which was almost double. Due to efficient management of funds and stringent control over cost, profits before depreciation and taxes increased to Rs. 224.400 Millions against Rs. 210.800 Millions for the last year resulting into a fourfold increase.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U27100MH1994PLC083403
Name of the company	SKM STEELS LIMITED
Address of the registered office or of the principal place of business in India of the company	30, C.P. Tank Road, 2^nd Floor, Mumbai – 400004, Maharashtra, India Email: info@skmsteels.com
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	Standard Chartered Bank, Abhijeet II, Ground Floor, Near Mithakali Six Road, Ahmedabad - 380006, Gujarat, India Email: Avinash.Bahutule@sc.com
Nature of description of the instrument creating or modifying the charge	Unattested Memorandum of Hypothecation
Date of instrument Creating the charge	12.10.2012
Amount secured by the charge	Rs. 250.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest/Commission - As agreed by and with the Bank from time to time. Terms of Repayment As agreed by and with the bank from time to time Margin As applicable , if any Extent and Operation of the charge The Bank is having first pari passu charge on the security given by the Company
Short particulars of the property charged	Hypothecation by way of first pari passu charge on a) All present and future book debts, o/s moneys receivables, claims and bills....... b) All present and future stock in trade consisting of raw materials, finished goods, goods in process of manufacturing and other merchandise…..

FIXED ASSETS:

Ø Freehold Land

Ø Leasehold Land

Ø Factory Buildings

Ø Other Buildings

Ø Plant and Machinery

Ø Electrical Installation

Ø Vehicles

Ø Furniture and Fixtures

Ø Office Equipments

Ø Air Conditioners

Ø Other Assets

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. 54.44
UK Pound	1	Rs. 81.33
Euro	1	Rs. 70.50

INFORMATION DETAILS

Information Gathered by :	PLK
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	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		34

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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