MIRA INFORM REPORT

Report Date :

18.03.2013

IDENTIFICATION DETAILS

Name :	KALYAN CONFECTIONERY PRIVATE LIMITED
Registered Office :	Sodepur, Barasat Road, Muragacha, P.O. Jugberia, 24 pgs (N), Kolkata-700110, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	02.09.1986
Com. Reg. No.:	21-041213
Capital Investment / Paid-up Capital :	Rs.10.074 Millions
CIN No.: [Company Identification No.]	U15432WB1986PTC041213
TAN No.: [Tax Deduction & Collection Account No.]	CALK02181E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Confectionery Products
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 107048
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears sharp dip in profitability. The profit margin seems to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with same cautions.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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 (GENERAL DETAILS)

Name :	Mr. Sushanta Kumar Kundu
Designation :	Director
Contact No.:	91-9230526192
Date :	25.02.2013

LOCATIONS

Registered Office / Factory :	Sodepur, Barasat Road, Muragacha, P.O. Jugberia, 24 pgs (N), Kolkata-700110, West Bengal, India
Tel. No.:	91-33-25376091 / 62569885
Mobile No.:	91-9230526192 (Mr. Abhijit Kundu)
Fax No.:	91-3.3-25376633 / 25789969
E-Mail :	boyes@vsnl.net boyeskcpl@gamil.com
Corporate Office :	4/7/1, Jogendra Basak Road, Kolkata-700036, West Bengal, India
Tel. No.:	91-33-25780062 / 25788578
Fax No.:	91-33-25789969
E-Mail :	ensons@vsnl.net

DIRECTORS

AS ON 29.09.2012

Name :

Mrs Kanchan Kundu

Designation :

Director

Address :

4 / 8, Jogendra Basakroad, Kolkata- 700036, West Bengal, India

Date of Birth/Age :

17.04.1956

Date of Appointment :

02.09.1986

DIN No.:

00377065

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U15432WB1986PTC041213	KALYAN CONFECTIONERY PRIVATE LIMITED	Director	2/9/1986	2/9/1986	-	Active	NO
2	U24134WB1997PTC082504	ENSONS PACKAGINNG & PRINTING PRIVATE LIMITED	Managing director	3/1/1997	3/1/1997	-	Dormant	NO
3	U74940WB1994PTC062232	DE CONVERTER INDIA PVT LTD	Director	7/9/2001	7/9/2001	-	Active	NO
4	U28910WB2002PTC094734	ETONE INDIA PRIVATE LIMITED	Director	11/6/2002	11/6/2002	-	Active	NO

Name :

Mr. Sushanta Kumar Kundu

Designation :

Director

Address :

4 / 8, Jogendra Basakroad, Kolkata- 700036, West Bengal, India

Date of Birth/Age :

21.12.1950

Date of Appointment :

01.04.2003

DIN No.:

00377035

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U15432WB1986PTC041213	KALYAN CONFECTIONERY PRIVATE LIMITED	Director	1/4/2003	1/4/2003	-	Active	NO
2	U74940WB1994PTC062232	DE CONVERTER INDIA PRIVATE LIMITED	Director	30/09/2010	20/10/2009	-	Active	NO

Name :

Mr. Rajib Kundu

Designation :

Director

Address :

4 / 8, Jogendra Basakroad, Kolkata- 700036, West Bengal, India

Date of Birth/Age :

12.01.1976

Date of Appointment :

14.03.1996

DIN No.:

00288461

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U74940WB1994PTC062232	DE CONVERTER INDIA PRIVATE LIMITED	Director	11/3/1994	11/3/1994	-	Active	NO
2	U15432WB1986PTC041213	KALYAN CONFECTIONERY PRIVATE LIMITED	Director	14/03/1996	14/03/1996	-	Active	NO
3	U15412WB2003PTC096221	BAKEFIELD FOOD PRODUCTS PRIVATE LIMITED	Director	19/05/2003	19/05/2003	-	Strike off	NO

Name :

Mr. Partha Sarathi Kundu

Designation :

Director

Address :

4 / 8, Jogendra Basakroad, Kolkata- 700036, West Bengal, India

Date of Birth/Age :

23.06.1947

Date of Appointment :

01.04.2003

DIN No.:

00282967

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U25209WB1986PTC041207	THE POLY PRINT COTTAGE INDUSTRIES PRIVATE LIMITED	Managing director	2/4/1987	2/4/1987	-	Active	NO
2	U15432WB1986PTC041213	KALYAN CONFECTIONERY PRIVATE LIMITED	Director	1/4/2003	1/4/2003	-	Active	NO

Name :

Mr. Abhijit Kundu

Designation :

Director

Address :

4 / 8, Jogendra Basakroad, Kolkata- 700036, West Bengal, India

Date of Birth/Age :

07.09.1982

Date of Appointment :

24.08.2009

DIN No.:

02790627

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U74940WB1994PTC062232	DE CONVERTER INDIA PRIVATE LIMITED	Director	30/09/2009	24/08/2009	-	Active	NO
2	U15432WB1986PTC041213	KALYAN CONFECTIONERY PRIVATE LIMITED	Director	30/09/2009	24/08/2009	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Partha Sarathi Kundu	12669
Sushanta Kumar Kundu	27646
Kalyan Kumar Kundu	8296
Kanchan Kundu	11413
Ranjana Kundu	9676
Dipti Kundu	3048
Dipa Kundu	1042
Ashis Das	800
Tripti Das	500
Ampi Enterprises, India	2000
Binapani Kumndu	2001
Rajib Kundu	4075
Sanchita Kundu	5569
Joyita Majumder	1071
Sandip Kundu	810
Abhijit Kundu	714
Mona Saha	952
Nandy Deepa	1976
Paras Nath Nandy	1405
Digen Talukder	310
Vimal Podder	2381
Prakash Tulsiyanch	2381
Total	100735

AS ON 29.09.2012

Equity Share Break up

Category	Percentage
Directors or relatives of Directors	87.93
Other top fifty shareholders	12.07
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Confectionery Products
Products :	Confectionery Items Candies, Toffees, Deposited Candy Deposited Toffee Eclairs Lolly Pops Formed Candies Formed Toffees
Exports :
Products :	Finished Goods
Countries :	Nepal
Terms :
Selling :	Cash / Credit / Advanced
Purchasing :	Cash / Credit / Advanced

GENERAL INFORMATION

Customers :

· Retailers

· Distributors

· De Converter Private Limited

No. of Employees :

250 (Approximately)

Bankers :

Bank of Baroda, Baranagar Branch, 312, Gopal Lal Tagore Road, Kolkata-700036, West Bengal. India

Facilities :

Secured Loan	As on 31.03.2012 (Rs. In Millions)	As on 31.03.2011 (Rs. In Millions)
Secured borrowings (Against Hypothecation of Machinery and personal securities of all directors)	14.670	6.805
ICICI Bank Car Loan	0.420	0.000
HDFC Bank (004205000839)	0.365	0.000
Cash Credit From Bank of Baroda (Barangar Branch 00370500000020) (Cash Credit Facilities are Secured by hypothecation of inventories and receivable of the company both present or future)	18.493	17.157
Total	33.948	23.962
Unsecured Loan	As on 31.03.2012 (Rs. In Millions)	As on 31.03.2011 (Rs. In Millions)
Inter Corporate Deposits	2.924	2.369
Interest free Loan from Directors and Directors Relatives	3.262	1.615
Total	6.186	3.984

Banking Relations :	---
Auditors :
Name :	S.P. Chatterjee and Company Chartered Accountants
Address :	10, Old post Office Street, Kolkata-700001, West Bengal, India
PAN.:	AAMFF3042A
Related Parties:	· De Converter Private Limited · Ensons Marketing Private Limited · Unity Supply

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100735	Equity Shares	Rs.100/- each	Rs.10.073 Millions

(March 31,2011) 100735 Equity shares of Rs.100/- each (Out of 100735 equity shares, 10225 equity shares issued at a premium of Rs.100/- per shares and 54889 equity shares issued at a premium of Rs.110/- per share. 20521 equity shares were allotted as fully paid up pursuant to a contact without payment has been received in cash)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		10.074	10.074	10.074
2] Share Application Money		7.556	8.556	7.681
3] Reserves & Surplus		9.132	8.282	7.060
4] (Accumulated Losses)		0.000	0.000	(3.159)
NETWORTH		26.762	26.912	21.656
LOAN FUNDS
1] Secured Loans		53.524	53.824	28.482
2] Unsecured Loans		53.524	53.824	0.506
TOTAL BORROWING		107.048	107.648	28.988
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		66.896	54.859	50.644
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		54.806	44.903	41.055
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.00
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	16.667	21.931	19.462
	Sundry Debtors	6.193	5.261	7.377
	Cash & Bank Balances	3.990	3.489	1.202
	Other Current Assets	0.015	0.000	0.000
	Loans & Advances	7.765	8.742	4.503
Total Current Assets		34.630	39.423	32.544
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	10.373	15.512	13.172
	Other Current Liabilities	9.803	11.784	8.658
	Provisions	2.364	2.171	1.125
Total Current Liabilities		22.540	29.467	22.955
Net Current Assets		12.090	9.956	9.589
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		66.896	54.859	50.644

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Sales	155.699	163.686	136.129
		Other Income	1.463	2.780	1.310
		TOTAL (A)	157.162	166.466	137.439
Less	EXPENSES
		TOTAL (B)	143.224	151.033	119.873
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		13.938	15.433	17.566
Less	INTEREST AND FINANCIAL EXPENSES (D)		5.706	3.978	4.362
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.232	11.455	13.204
Less/ Add	DEPRECIATION/ AMORTISATION (F)		7.188	6.030	9.154
	PROFIT BEFORE TAX (E-F) (G)		1.044	5.425	4.050
Less	TAX (I)		0.194	1.045	0.697
	PROFIT AFTER TAX (G-I) (J)		0.850	4.380	3.353
Add	SURPLUS BROUGHT FORWARD FROM PREVIOUS YEAR		1.222	(3.158)	NA
	SURPLUS CARRIED TO BALANCE SHEET		2.072	1.222	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.54	2.63	2.44
Net Profit Margin (PBT/Sales)	(%)	0.67	3.31	2.98
Return on Total Assets (PBT/Total Assets}	(%)	1.68	6.43	5.50
Return on Investment (ROI) (PBT/Networth)		0.04	0.20	0.19
Debt Equity Ratio (Total Liability/Networth)		4.00	4.00	1.34
Current Ratio (Current Asset/Current Liability)		1.54	1.34	1.14

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	Yes
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	No
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	No

YEAR IN RETROSPECT:

Good food and good life are directly linked with each other because nutrition has a clear role in enhancing health and wellness in their lives. This requires products to be tasty, healthy and nutritious to as to effectively contribute to maintaining good health and also a better understanding as to how much quantities of each type of food provide nutrition in different ways. As a measure of corporate social responsibility, the company continued to educate people within its reach about the importance of nutrition at different stages of their lives by use of confectionery products. Further the Company always believed in long term growth potential and has invested significantly in capital expenditure to be ready to seize emerging growth opportunities. To overcome the challenges posed by a difficult, complex and unforeseen external environment, the company has most of the times responded proactively by undertaking measures such as product portfolio diversification, changes in product mix, change in taste, channel optimization and other marketing initiatives to contribute to profitability and sustain in growth momentum.

The Sales (Net of Taxes) for the financial year were Rs. 155.700 Millions as against Rs. 163.700 Millions for the previous year resulting in a negative growth by approx 5%. Due to steep rise in input cost, personnel expenses and stiff competition from local markets; the Company could neither improve geographical expansion of the market nor could it penetrate the sales market deeper into the social root. Variance of product mix and introduction of new products could be the only way for future development.

Form 8

Corporate identity number of the company	U15432WB1986PTC041213
Name of the company	KALYAN CONFECTIONERY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Sodepur, Barasat Road, Muragacha, P.O. Jugberia, 24 pgs (N), Kolkata-700110, West Bengal, India boyes@vsnl.net
This form is for	Modification of Charge
Charge identification (ID) number of the charge to be modified	80037478
Type of charge	Book Debts Movable Property (not being pledge) Floating Charge Other (P and M, Stock and Other Fixed and Current Assets
Particular of charge holder	Bank of Baroda, Baranagar Branch, 312, Gopal Lal Tagore Road, Kolkata-700036, West Bengal. India barana@bankofbaroda.com
Nature of instrument creating charge	Supplemental Composite Agreement of Hypothecation of Good, Book-Debts, Movable Machinery and Vehicles
Date of instrument Creating the charge	10.09.2011
Amount secured by the charge	Rs.35.527 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest The bank will charge interest and other charge as stipulated in the sanction terms, for CC and TL 5.50% over BR i.e. 16.25% p.a.w.m.r, however the same is subject to charge from time to time. Terms of Repayment The working capital limit (Cash Credit of Rs.15.000 millions and bank Guarantee of Rs1.000 Million ) shall be repayable on demand whereas the term loan of Rs.19.527 Millions (TL-1 ofRs.1.229 Millions, TL-II of Rs.0.840 Million, TL-III of Rs.2.958 Millions and TL-IV of Rs.14.500 Millions ) shall be repaid as per sanction terms. Margin The borrower shall maintain appropriate margin as stipulated in the sanction terms i.e. For CC :-25% in stock and book-debts upto 90 days For TL :-25% of Project Cost Extent and Operation of the Charge The Security created under Agreement shall operate a continuing security and way of first charge. The charge assets property be kept at the company risk and expense in good condition and fully insured against loss or damage by fire, lighting or explosion or theft and also against loss or damage by riot civil commotion etc. as may be required by the Bank in the joint name of the Banks and the Company. Other The Company hereby declares that all the charges property now existing are absolute property of and at the sole disposal of the Company and free from any prior charge of encumbrance and undertakes that all future property shall like wise be the unencumbered and absolute and absolute and disposable property of the Company Other terms and conditions are as per terms and conditions of above referred Agreement and Sanction Terms of the Bank.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	The borrower Company hereby hypo. And charge a) All stocks of Row Materials, Work in Progressed, Finished Good such as pulses and stores and spares now being and lying in the Borrower’s Factory / Godown at sodepur Road, Muragacha, Post: Jugberi, Kolkata-711110 or any where else b) All the book- debts and receivable etc. and other current assets of the company. c) All movable / immovable Plant, Machinery cranes, Vehicles with spares, tools and accessories and other office equipment and Fixed Assets of the Company both present and future
Particulars of the present modification	By present modification the overall limit secured by charge ha been revised from Rs.39.766 Millions to Rs.35.527 Millions. The revised credit facilities CC - Rs.15.000 millions BG- Rs1.000 Million TL-1 of Rs.1.229 Millions (Outstanding Balance), TL-2 of Rs.0.840 Million (Outstanding Balance), TL-3 of Rs.2.958 Millions (Outstanding Balance) and TL-IV of Rs.14.500 Millions Other Terms and conditions save as modified above remained unchanged.

FIXED ASSETS:

• Land
• Building Work in Progress
• Building
• Machinery
• Machinery (CHIPS)
• Weighing Machine
• Electric Equipments
• Computer
• Exhaust Fan
• Fire Safety Equipments
• Air Conditioner
• Air Conditioner (Chips)
• Furniture
• Generator
• Type Writer
• Tools and Implements
• Cycle rickshaw Flat Van
• Container
• Electric Fan
• Fax Machine
• Die and Patern
• Laboratory Equipments
• Mobile Phone
• Trolly

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.54.16
UK Pound	1	Rs.81.74
Euro	1	Rs.70.50

INFORMATION DETAILS

Information Gathered by :	NYN
Report Prepared by :	SDA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
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	3
--CREDIT LINES	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--EPF	YES/NO	NO
--RBI	YES/NO	NO
TOTAL		27

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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