MIRA INFORM REPORT

Report Date :

31.10.2013

IDENTIFICATION DETAILS

Name :	CRODA INDIA COMPANY PRIVATE LIMITED (w.e.f. 01.06.2013)
Formerly Known As :	CRODA CHEMICALS (INDIA) PRIVATE LIMITED
Registered Office :	Plot No.1/1 Part, TTC Industrial Area, Thane Belapur Road, Koparkhairne, Navi Mumbai – 400 710, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	07.07.1995
Com. Reg. No.:	11-117141
Capital Investment / Paid-up Capital :	Rs.2114.465 Millions
CIN No.: [Company Identification No.]	U24100MH1995PTC117141
TAN No.: [Tax Deduction & Collection Account No.]	MUMC11626G
PAN No.: [Permanent Account No.]	AAACC9212H
Legal Form :	Private Limited Liability Company
Line of Business :	The Company is engaged in Manufacturing and Trading of Speciality Chemicals Servicing a Range of Industries.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 8783000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established of ‘CRODA INTERNATIONAL PLC, U.K.’ It is an established company having satisfactory track record. There appear huge accumulated losses recorded by the company. However, it receives strong financial support from its parent company. Trade relations are reported as fair. Business is active. Payment terms are usually correct. In view of strong holding company, the subject can be considered for business dealings at usual trade terms and conditions.

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

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 trade 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	CRISIL
Rating	Long term Rating=A
Rating Explanation	Adequate degree of safety and low credit risk.
Date	26.09.2012

Rating Agency Name	CRISIL
Rating	Short term rating=A1
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	26.09.2012

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.

LOCATIONS

Registered Office / Factory / Head Office :	Plot No.1/1 Part, TTC Industrial Area, Thane Belapur Road, Koparkhairne, Navi Mumbai – 400 710, Maharashtra, India
Tel. No.:	91-22-27787531 /30948400 /500 /600
Fax No.:	91-22-27780007 / 8
E-Mail :	Sunil.shah@croda.com sales.india@croda.com
Website :	www.croda.co.in

DIRECTORS

AS ON 25.09.2012

Name :

Mr. Rupark Sarswat

Designation :

Managing Director

Address :

3 A, Anweshan, ICI Housing Plot No. 110, Lane B, Sector - 8, Vashi, Navi Mumbai- 400 703, Maharashtra, India

Date of Birth/Age :

19.02.1972

Date of Appointment :

02.04.2013

DIN No.:

01667132

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U24100MH1995PTC117141	CRODA INDIA COMPANY PRIVATE LIMITED	Managing director	02-04-13	26-09-07	Active	NO

Name :

Mr. Sunil Kirit Shah

Designation :

Director

Address :

21-A, Ocean Gold, Twin Tower Lane, Prabhadevi, Mumbai– 400 001, Maharashtra, India

Date of Birth/Age :

29.06.1956

Date of Appointment :

24.10.1997

DIN No.:

00594713

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	U67120MH1992PTC066115	SCOPE SECURITIES INDIA PRIVATE LIMITED	Director	27-03-92	27-03-92	-	Active	NO
2	U24100MH1995PTC117141	CRODA INDIA COMPANY PRIVATE LIMITED	Director	24-10-97	24-10-97	-	Active	NO
3	U67120MH1992PTC065018	DELTA SERVICES (INDIA) PRIVATE LIMITED	Director	01-12-03	01-12-03	07-07-09	Amalgamated	NO
4	U99999MH1994PTC127134	DYNAMIC ENGINEERING SERVICES PRIVATE LIMITED	Director	01-09-06	01-09-06	-	Active	NO
5	U45208MH1997PTC106407	PRESTIGE CONSULTANCY SERVICES (INDIA) PRIVATE LIMITED	Director	01-09-06	01-09-06	-	Active	NO
6	U29199GJ1994PTC023840	DYNAMIC ENGINEERING SERVICES PRIVATE LIMITED	Director	01-09-06	01-09-06	-	Not Available for eFiling	NO

Name :

Mr. David Edward Barraclough

Designation :

Director

Address :

Sandhill House, Market Weighton Road, Sancton york YO434RB, United Kingdom

Date of Birth/Age :

04.08.1954

Date of Appointment :

26.09.2007

DIN No.:

01194947

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U24100MH1995PTC117141	CRODA INDIA COMPANY PRIVATE LIMITED	Director	26-09-07	05-01-07	Active	NO

Name :

Mr. Ritesh Gordhandas Tanna

Designation :

Director

Address :

704 Mayflower Hiranandani Meadows Gladys Alwarys Road, off Pokhran No.2. Thane (West) – 400 610, Maharashtra, India.

Date of Birth/Age :

11.03.1974

Date of Appointment :

01.05.2011

DIN No.:

01937732

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U24100MH1995PTC117141	CRODA INDIA COMPANY PRIVATE LIMITED	Director	01-05-11	22-01-08	Active	NO

Name :

Mr. Graham Lloyd Myers

Designation :

Director

Address :

7 Swan Close, Deighton, York, United Kingdom-YO196HY

Date of Birth/Age :

12.04.1963

Date of Appointment :

28.09.2011

DIN No.:

03186157

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U24100MH1995PTC117141	CRODA INDIA COMPANY PRIVATE LIMITED	Director	28-09-11	28-09-10	Active	NO

Name :

Mr. Murali Krishna Duvvuri

Designation :

Whole-time Director

Address :

303, Suparshav Apartments, Sarvodaya Nagar, Mulund (West), Mumbai – 400 080, Maharashtra, India

Date of Birth/Age :

04.01.1973

Date of Appointment :

30.03.2012

DIN No.:

05209383

KEY EXECUTIVES

Name :	Ms. Renu Apurva Dangi
Designation :	Secretary
Address :	G6, 1:2, Sharayu Co-operative Housing Society, Sector-29, Vashi – 400 703, Maharashtra, India
Date of Birth/Age :	25.04.1984
Date of Appointment :	25.03.2011
PAN No.:	APPPK6480A

MAJOR SHAREHOLDERS

AS ON 25.09.2012

Names of Equity Shareholders	No. of Shares
Sunil Kirit Shah	10
Croda International PLC, UK	1446467
Total	1446477

Names of Preference Shareholders	No. of Shares
Croda International PLC, UK	2100
Total	2100

Equity Share Break up (Percentage of Total Equity)

AS ON 25.09.2012

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The Company is engaged in Manufacturing and Trading of Speciality Chemicals Servicing a Range of Industries.

Products :

Product Description	Item Code (ITC Code)
Organic Surfactants	3402
Chemical Products	3809
Organic Chemicals	2915

PRODUCTION STATUS (AS ON : 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Speciality Chemicals	Tones	@	16960

Notes:

@ Dependent on the Product Mix.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	· The Hongkong Shabghai Banking Corporation Limited, 52/60, Mahatma Gandhi Road, Fort, Mumbai – 400 001, Maharashtra, India · Standard Chartered Bank, 90, M G Road, Fort, Mumbai – 400 001, Maharashtra, India

Banking Relations :	--
Auditors :
Name :	Gupta Neeraj Kumar Chartered Accountant
Address :	Price Waterhouse, 252, Veer Savarkar Marg, Shivaji Park, Mumbai – 400 028, Maharashtra, India
PAN No.:	AAEFP3641G
Holding Company :	Croda International Plc, U.K
Subsidiaries :	PT Croda Indonesia
Fellow Subsidiaries :	· Croda Europe Limited · Croda Inc. USA · Croda Singapore Pte. Limited · Croda Japan K. K. · Croda Trading (Shanghai) Company Limited · Croda Hong Kong Company Limited · Croda Chemicals International Limited · Croda (SA) Pty. Limited · Croda Colombia · Crodarom SAS, France · Sederma SAS, France · John L Seatons and Company Limited · Croda Australia · Croda (Thailand) Company Limited · Croda Iberica SA · Croda Do Brazil Limited · Croda Woobang Company Limited · Uniqema B.V. Netherland · Croda Overseas Holdings Limited · Croda Periama S.A.C.

CAPITAL STRUCTURE

AS ON 25.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1800000	Equity Shares	Rs. 10/- each	Rs.18.000 Millions
2100	Preference Shares	Rs. 1000000/- each	Rs.2100.000 Millions
			Rs.2118.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1446477	Equity Shares	Rs. 10/- each	Rs.14.465 Millions
2100	Preference Shares	Rs. 1000000/- each	Rs. 2100.000 Millions
			Rs.2114.465 Millions

AFTER 25.09.2012

Authorised Capital : Rs.2118.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.1764.465 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	2114.465	714.465
(b) Reserves & Surplus	81.315	122.490
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	2195.780	836.955
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	1400.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	1.212	0.546
(d) long-term provisions	25.510	21.276
Total Non-current Liabilities (3)	26.722	1421.822
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	287.707	241.636
(c) Other current liabilities	107.626	133.761
(d) Short-term provisions	6.335	1.498
Total Current Liabilities (4)	401.668	376.895
TOTAL	2624.170	2635.672
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1061.564	973.296
(ii) Intangible Assets	6.577	301.273
(iii) Capital work-in-progress	56.931	89.656
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	177.881	177.881
(c) Deferred tax assets (net)	68.885	41.441
(d) Long-term Loan and Advances	15.253	21.702
(e) Other Non-current assets	0.169	160.727
Total Non-Current Assets	1387.260	1765.976
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	289.488	297.083
(c) Trade receivables	393.898	371.190
(d) Cash and cash equivalents	510.813	137.802
(e) Short-term loans and advances	38.505	51.642
(f) Other current assets	4.206	11.979
Total Current Assets	1236.910	869.696
TOTAL	2624.170	2635.672

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		714.465
2] Share Application Money		0.000
3] Reserves & Surplus		790.000
4] (Accumulated Losses)		0.000
NETWORTH		1504.465
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		1409.014
TOTAL BORROWING		1409.014
DEFERRED TAX LIABILITIES		0.000
TOTAL		2913.479
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1624.094
Capital work-in-progress		30.408
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	214.644
	Sundry Debtors	328.073
	Cash & Bank Balances	373.591
	Other Current Assets	3.628
	Loans & Advances	61.700
Total Current Assets		981.636
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000
	Other Current Liabilities	344.341
	Provisions	20.086
Total Current Liabilities		364.427
Net Current Assets		617.209
MISCELLANEOUS EXPENSES		0.000
Profit loss Debit Balance		641.768
TOTAL		2913.479

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL (A)	2361.500	2352.100	1965.100
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	1862.600	1805.300	1472.400
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		498.900	546.800	492.700
Less	FINANCIAL EXPENSES (D)		139.900	140.200	139.000
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		359.000	406.600	353.700
Less	DEPRECIATION/ AMORTISATION (F)		357.600	441.800	431.900
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		1.400	(35.200)	(78.200)
Less	TAX (H)		(42.600)	9.400	0.000
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		(41.200)	(25.800)	(78.200)
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. value of Goods Exported		233.223	130.628
		Commission		15.824	25.466
	TOTAL EARNINGS		NA	249.047	156.094
	IMPORTS
		Raw Materials		324.929	266.460
		Traded Goods		188.060	140.124
		Capital Goods		14.381	4.957
	TOTAL IMPORTS		NA	527.370	411.541
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		667.500	641.800	563.600
	BALANCE CARRIED TO THE B/S		708.700	667.500	641.800
	Earnings Per Share (Rs.)		0.34	NA	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(1.74)	(1.10)	(3.98)
Return on Total Assets (PBT/Total Assets}	(%)	0.06	(1.64)	(3.00)
Return on Investment (ROI) (PBT/Networth)		0.00	0.04	0.05
Debt Equity Ratio (Total Debt /Networth)		0.00	1.67	0.94
Current Ratio (Current Asset/Current Liability)		3.08	2.31	2.69

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	----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS:

Particulars	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
Loans and Advances from related Parties	0.000	1400.000
Total	0.000	1400.000

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10113688	29/08/2013 *	70,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	52/60,MAHATMA GANDHI ROAD, FORT, MUMBAI – 400 001, MAHARASHTRA, INDIA	B85505675
2	10038762	27/03/2012 *	50,000,000.00	AXIS BANK LIMITED	AXIS HOUSE, GROUND FLOOR, BOMBAY DYEING MILLS COM POUND, P. B. MARG, WORLI, MUMBAI – 400 025, MAHARASHTRA, INDIA	B37063401

* Date of charge modification

FIXED ASSETS:

· Office Equipment

· Furniture, Fixture

· Computer and Laptops etc

· Fax Machine

· Paper Shredder Machine

· Xerox Machine

· Mobile Phone

· Lease hold Land

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.61.49
UK Pound	1	Rs.98.71
Euro	1	Rs.84.45

INFORMATION DETAILS

Report Prepared by :

NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		45

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