MIRA INFORM REPORT

Report Date :

30.11.2013

IDENTIFICATION DETAILS

Name :	GARG INOX LIMITED (w.e.f. 12.01.2007)
Formerly Known As :	GARG INOX PRIVATE LIMITED GARG SALES COMPANY PRIVATE LIMITED
Registered Office :	35, Jhandewalan Road, Motia Khan, New Delhi – 110 055
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	29.06.1991
Com. Reg. No.:	55-044782
Capital Investment / Paid-up Capital :	Rs.68.854 Millions
CIN No.: [Company Identification No.]	U74899DL1991PLC044782
TAN No.: [Tax Deduction & Collection Account No.]	DELG05223B
PAN No.: [Permanent Account No.]	AAACG1010F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Stainless Steel Wires and Bars.
No. of Employees :	1200 (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 2365932
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Profitability of the company appears to be low. The external borrowing seems to be increasing over years. However, 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 – June 30, 2012

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

INDIAN ECONOMIC OVERVIEW

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the traqde deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities: BB
Rating Explanation	Moderate Risk of default
Rating	Short term Bank Facilities: A4
Rating Explanation	Minimal Degree of safety. It carry very high credit risk.
Date	October, 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.

LOCATIONS

Registered Office :	35, Jhandewalan Road, Motia Khan, New Delhi – 110055, India
Tel. No.:	91-11-23529626/ 23679747
Fax No.:	91-11-23626388
E-Mail :	gargwire@gargwire.com info@gskassociates.com
Website :	www.gargwire.com
Head Office/ Factory 1 :	CH-9, Old Industrial Area, Bahadurgarh-124507, Haryana, India
Tel. No.:	91-1276-222222
Fax No.:	91-1276-222000
E-Mail :	gargwire@gargwire.com
Factory 2 :	G-4, Ranjan Gaon Industrial Area, Village Karegaon, MIDC, Pune, Maharashtra, India
Branch Office :	118, 1^st Floor, Vyapar Bhawan, 49,P.D. Mello Road, Masjid Bunder (e), Mumbai – 400 009, Maharashtra, India
Tel. No.:	022-23484744
Fax No.:	022-23481748
E-Mail :	ponak@gargwire.com
Website :	www.gargwire.com
Overseas Office :	Located At: USA UK Istanbul

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Suresh Chand Garg

Designation :

Managing Director

Address :

3/29, East Panjabi Bagh, New Delhi – 100 026, India

Date of Birth :

19.12.1969

Date of Appointment :

30.03.2011

Din No.:

00024274

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	U74899DL1991PLC044782	GARG INOX LIMITED	Managing director	31/03/2011	29/06/1991	-	Active	NO
2	U27209DL1999PTC098106	DEE CEE ALLOYS AND WIRES PRIVATE LIMITED	Director	27/01/1999	27/01/1999	-	Active	NO
3	U28112DL1997PTC087678	GARG ALUMINIO PRIVATE LIMITED	Director	21/06/2007	21/06/2007	-	Active	NO
4	U15209DL1996PTC194691	SOLAR MERCANTILES PVT LTD	Director	02/07/2007	02/07/2007	-	Active	NO
5	U70101DL2010PTC207501	PYRAMID REALTECH PRIVATE LIMITED	Director	24/08/2010	24/08/2010	-	Active	NO

Name :

Mrs. Priyanka Garg

Designation :

Director

Address :

3/29, East Panjabi Bagh, New Delhi – 100 026, India

Date of Birth :

17.11.1973

Date of Appointment :

11.07.1993

Din No.:

00024173

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	U74899DL1991PLC044782	GARG INOX LIMITED	Director	11/07/1993	11/07/1993	-	Active	NO

Name :

Mr. Aayush Garg

Designation :

Director

Address :

B-31, New Multan Nagar, New Delhi-110056, India

Date of Birth :

26.08.1984

Date of Appointment :

31.12.2010

Din No.:

00191962

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	U40100CT2010PTC022162	Y3K VENTURES PRIVATE LIMITED	Director	15/11/2010	15/11/2010	-	Active	NO
2	U74899DL1991PLC044782	GARG INOX LIMITED	Director	30/09/2011	31/12/2010	-	Active	NO

Name :

Mr. Mohit Oberoi

Designation :

Director

Address :

Circle Jhajjar, Bahadurgarh-124507, Haryana, India

Date of Birth :

07.09.1983

Date of Appointment :

31.03.2011

Din No.:

05178205

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	U74899DL1991PLC044782	GARG INOX LIMITED	Director	30/09/2011	31/03/2011	05/09/2013	Active	NO
2	U27106DL2013PTC255946	PARAMHANS WIRES PRIVATE LIMITED	Director	26/07/2013	26/07/2013	-	Active	NO

Name :

Mr. Atul Chanana

Designation :

Director

Address :

Flat No. 51, Pocket GH-12, Paschim Vihar, New Delhi – 110 009

Date of Birth :

15.07.1968

Date of Appointment :

05.03.2012

Din No.:

01584179

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	U74899DL1991PLC044782	GARG INOX LIMITED	Director	29/09/2012	05/03/2012	-	Active	NO
2	U15209DL1996PTC194691	SOLAR MERCANTILES PVT LTD	Additional director	09/01/2013	09/01/2013	-	Active	NO

Name :

Mr. Yogesh Oberoi

Designation :

Director

Address :

GH-12, Flat No.61, Paschim Vihar, New Delhi – 110 087

Date of Birth :

26.06.1969

Date of Appointment :

05.03.2012

Din No.:

05189678

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	U74899DL1991PLC044782	GARG INOX LIMITED	Director	29/09/2012	05/03/2012	10/07/2013	Active	NO
2	U28112DL1997PTC087678	GARG ALUMINIO PRIVATE LIMITED	Additional director	08/11/2012	08/11/2012	11/10/2013	Active	NO
3	U27106DL2013PTC255946	PARAMHANS WIRES PRIVATE LIMITED	Director	26/07/2013	26/07/2013	-	Active	NO

Name :

Mr. Sachin Gupta

Designation :

Director

Address :

D-13A-20, D-13, Block Model Town III, New Delhi – 110 009

Date of Birth :

29.12.1974

Date of Appointment :

13.08.2012

Din No.:

06371803

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	U74899DL1991PLC044782	GARG INOX LIMITED	Director	29/09/2012	13/08/2012	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Manisha Chhillar
Designation :	Secretary
Address :	H.No. 201, BAmnoli, Bahadurgarh, Haryana, India
Date of Birth :	07.10.1988
Date of Appointment :	29.09.2012
Din No.:	BRAPM6977Q

MAJOR SHAREHOLDERS

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Suresh Chand Garg	850173
Madhu Garg	318152
Jaipal Garg	65366
Priyanka Garg	703737
Aayush Garg	461916
Aakarsh Garg	171165
Sanchit Garg	414166
Vanshaj Garg	127166
Jai Pal Garg and Sons (HUF)	338245
Suresh Garg and Sons (HUF)	15100
Yogesh Oberoi	283333
Dee Cee Alloys and Wire Private Limited, India	320000
Solar Mercantiles (Private) Limited, India	2149989
Total	6218758

Equity Share Break up (Percentage of Total Equity)

AS ON 29.09.2012

Category	Percentage
Bodies corporate	39.72
Directors or relatives of Directors	60.28
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Stainless Steel Wires and Bars.
Products :	Stainless Steel Wire Galvanized Wire Stainless Steel Bar Copper Clad Aluminum Wire Aluminum Alloy Wire Zinc Wire Welding Consumables
Brand Names :	“GARGWIRE”

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• State Bank of India

Industrial Complex Branch, Bahadurgarh – 124 507, Haryana, India

• Small Industries Development Bank of India

NH – 5, R/2, Neelam Badshah Khan Road, NIT, Faridabad – 121 001, Haryana, India

Facilities :

Secured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Long Term Loan
Rupee term loans	72.215	2.838
Foreign currency loans	106.702	136.933
Short Term Loan
Rupee term loans	231.318	84.625
Foreign currency loans	838.869	770.450
Total	1070.187	855.075
Unsecured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Rupee term loan	31.163	2.186
Other loan and advances (Rupee term loan)	5.166	10.734
Total	36.329	12.920

Banking Relations :	--
Auditors :
Name :	GSK and Associates Chartered Accountants
Address :	8, First Floor, Rani Jhansi Road, Motia Khan, Industrial Area, New Delhi – 110 055, India
PAN No.:	AADFG5824B
Associates:	Dee Cee Alloys and Wires Private Limited Garg Sales Inc, USA Garg Aluminio Private Limited Garg Aluminio Private Limited Pyramid Realtech Private Limited Solar Mercantiles Private Limited Garg Sales UK Limited Garg Metal House UK Limited Yash Ceramics Private Limited
Enterprises Which are owned, or Have Significant Influence of or are Partners with Key Management Personnel and their Relatives:	Anand Steel Vinayak Metal Alloys Inox Metal

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6885428	Equity Shares	Rs.10/- each	Rs.68.854 Millions

AS ON 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs.10/- each	Rs.75.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6218758	Equity Shares	Rs.10/- each	Rs.62.187 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	68.854	62.187	55.002
(b) Reserves & Surplus	476.277	385.986	304.006
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	46.352	47.000	50.000
Total Shareholders’ Funds (1) + (2)	591.483	495.173	409.008
(3) Non-Current Liabilities
(a) long-term borrowings	215.246	152.692	132.557
(b) Deferred tax liabilities (Net)	48.181	40.037	33.748
(c) Other long term liabilities	15.000	15.000	15.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	278.427	207.729	181.305
(4) Current Liabilities
(a) Short term borrowings	1070.187	855.074	706.143
(b) Trade payables	827.002	776.256	668.582
(c) Other current liabilities	75.629	72.453	71.533
(d) Short-term provisions	33.917	33.504	26.401
Total Current Liabilities (4)	2006.735	1737.287	1472.659
TOTAL	2876.645	2440.189	2062.972
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	691.912	605.113	524.492
(ii) Intangible Assets	1.538	0.462	0.000
(iii) Capital work-in-progress	58.212	18.095	12.779
(iv) Intangible assets under development	0.000	0.018	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	13.419	18.194	24.484
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	765.081	641.882	561.755
(2) Current assets
(a) Current investments	2.500	0.000	0.000
(b) Inventories	818.521	661.025	588.534
(c) Trade receivables	850.018	756.382	647.710
(d) Cash and cash equivalents	82.402	78.902	82.503
(e) Short-term loans and advances	357.848	297.848	182.290
(f) Other current assets	0.275	4.150	0.180
Total Current Assets	2111.564	1798.307	1501.217
TOTAL	2876.645	2440.189	2062.972

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	4339.500	3786.106	3408.118
		Other Income	8.811	20.422	49.399
		TOTAL (A)	4348.311	3806.528	3457.517
Less	EXPENSES
		Cost of raw material consumed	3422.910	2964.464	2764.333
		Changes in inventories of finished goods, work-in-trade and stock-in-trade	(92.442)	(62.679)	(103.258)
		Employee benefit expenses	116.927	104.757	77.356
		Other expenses	591.173	551.507	494.832
		TOTAL (B)	4038.568	3558.049	3233.263
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		309.743	248.479	224.254
Less	FINANCIAL EXPENSES (D)		198.487	153.592	136.938
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		111.256	94.887	87.316
Less/ Add	DEPRECIATION/ AMORTISATION (F)		56.175	46.944	36.853
	PROFIT BEFORE TAX (E-F) (G)		55.081	47.943	50.463
Less	TAX (I)		18.124	16.258	9.458
	PROFIT AFTER TAX (G-I) (J)		36.957	31.685	41.005
	EARNINGS IN FOREIGN CURRENCY
	Export Earnings		2014.071	1950.878	1492.208
	Earnings / (Loss) Per Share (Rs.)		5.37	5.93	8.28

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.85	0.83	1.18
Net Profit Margin (PBT/Sales)	(%)	1.27	1.27	1.48
Return on Total Assets (PBT/Total Assets}	(%)	1.95	1.98	2.46
Return on Investment (ROI) (PBT/Networth)		0.09	0.10	0.12
Debt Equity Ratio (Total Debt /Networth)		2.18	2.03	2.05
Current Ratio (Current Asset/Current Liability)		1.05	1.03	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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	---------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	No
27]	Financials, if provided	-----------------------
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

VIEW INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10375983	18/09/2012	5,000,000.00	Small Industries Development bank of India	NH 5 - R/2, Neelam Badshah Khan Road,, NIT, Farid abad, Haryana - 121001, INDIA	B57910713
2	10375982	18/09/2012	30,000,000.00	Small Industries Development bank of India	NH 5 - R/2, Neelam Badshah Khan Road,, NIT, Farid abad, Haryana - 121001, INDIA	B57909269
3	10032583	08/07/2013 *	1,993,400,000.00	State Bank of India	Industrial Complex, Bahadurgarh, Haryana - 124507, INDIA	B79690137

FIXED ASSETS:

• Land and building
• Plant and machinery
• Electrical Accessories
• Furniture and fixture
• Tools and equipment
• Scooter
• Office Equipment
• Fire Extinguishers
• Generator
• Tempo
• Dies and moulds
• Car
• Computer
• Water Tank
• Weighing Machine
• Pollution Control Equipment
• Rikshaw

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.62.39
UK Pound	1	Rs.102.06
Euro	1	Rs.84.97

INFORMATION DETAILS

Report Prepared by :

SDA

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
DEFAULTER
--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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