MIRA INFORM REPORT

Report Date :

18.04.2014

IDENTIFICATION DETAILS

Name :	SPELL ORGANICS LIMITED (w.e.f. 31.05.1993)
Formerly known as :	SPELL ORGANICS PRIVATE LIMITED
Registered Office :	16/3B Ansari Road, Daryagunj, New Delhi – 110002
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	07.06.1988
Com. Reg. No.:	55-031991
Capital Investment / Paid-up Capital :	Rs.4.571 Millions
CIN No.: [Company Identification No.]	U24239DL1988PLC031991
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers of Emulsifiers for the Confectionery Food Chemical and Bakery Industries.
No. of Employees :	Information declined by Management.

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 970000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well-established company having satisfactory track. The company possesses, an acceptable financial profile marked by modest networth base. Management seems to be undertaking moderate scale of operations. However, has reported a slight of increase in its net profitability during 2013. The ratings also take into consideration the various certifications of food safety management systems subject is accredited. Trade relations are fair. Business is active. Payment terms are reported as usually correct. In view of long standing experience of the promoters, 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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

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 DENIED BY

Name :	Mr. Suresh Kumar Mundhra
Designation :	Director
Contact No.:	91-11-23281645
Date :	08.04.2014

LOCATIONS

Registered Office :	16/3B, Ansari Road, Daryaganj, New Delhi – 110002, India
Tel. No.:	91-11-23281645 / 23281629
Mobile No.:	91-9811032922 (Mr. Mahesh Sharma) 91-9999714096 (Mr.Nikhil Mundhara )
Fax No.:	91-11-23252582
E-Mail :	info@spellorganics.com
Website :	www.spellorganics.com
Factory :	128, Rozka Meo Industrial Estate, Tehsil: Nuh, District Mewat – 122103, Haryana, India
Tel. No.:	91-9254303750
Fax No.:	91-11-23252582

DIRECTORS

As on: 30.09.2013

Name :

Mr. Suresh Kumar Mundhra

Designation :

Director

Address :

N-43, Greater Kailash – 1, New Delhi – 110048, India

Date of Birth/Age :

03.06.1954

Date of Appointment :

22.09.1995

DIN No. :

00340291

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	U24239DL1988PLC031991	SPELL ORGANICS LIMITED	Director	22/09/1995	22/09/1995	-	Active	NO
2	U29299WB1983PTC036910	APSOM TURNER PVT LTD	Director	27/02/2008	27/02/2008	-	Active	NO
3	U51109WB1996PTC078068	UNICON SUPPLIERS PVT LTD	Director	16/02/2010	16/02/2010	-	Active	NO
4	U26960WB2008PTC123860	AMRITPHAL COMMODITIES PRIVATE LIMITED	Director	13/05/2013	13/05/2013	-	Active	NO

Name :

Mr. Balram Singhi

Designation :

Director

Address :

KL – 78, Kavinagar, Ghaziabad - 201001, Uttar Pradesh, India

Date of Birth/Age :

13.08.1958

Date of Appointment :

24.12.2001

DIN No. :

02725976

Name :

Mr. Ramavtar Sharma

Designation :

Director

Address :

19, Sundariya, Bhukharon Ki Dhani, Fulera, Jaipur – 301201, Rajasthan, India

Date of Birth/Age :

19.09.1957

Date of Appointment :

30.09.2011

DIN No. :

02895514

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	U51101WB2010PTC144994	MOON MERCHANTS PRIVATE LIMITED	Additional director	20/03/2011	20/03/2011	24/05/2013	Active	NO
2	U51909WB2010PTC144449	SURAJ COMMERCE PRIVATE LIMITED	Additional director	20/03/2011	20/03/2011	24/05/2013	Active	NO
3	U51101WB2010PTC144324	STAR COMMISSION AGENTS PRIVATE LIMITED	Additional director	20/03/2011	20/03/2011	24/05/2013	Active	NO
4	U24239DL1988PLC031991	SPELL ORGANICS LIMITED	Director	30/09/2011	29/03/2011	-	Active	NO
5	U52321WB1994PTC064746	ATREYI VINCOM PVT LTD	Director	13/05/2013	13/05/2013	-	Active	NO
6	U72900WB2001PTC093307	RSN HI TECH PRIVATE LIMITED	Director	13/05/2013	13/05/2013	-	Active	NO
7	U51909WB2004PTC100879	LEELADHAR COMMERCIAL PRIVATE LIMITED	Director	13/05/2013	13/05/2013	-	Active	NO

Name :

Mr. Jagdish Prasad Lahoti

Designation :

Director

Address :

160, Pandya Dharamshala, Ward No. 16, Sujangarh, Churu, Jaipur – 331507, Rajasthan, India

Date of Birth/Age :

02.01.1960

Date of Appointment :

30.09.2011

DIN No. :

03479773

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	U24239DL1988PLC031991	SPELL ORGANICS LIMITED	Director	30/09/2011	29/03/2011	-	Active	NO
2	U51109WB1996PTC078068	UNICON SUPPLIERS PVT LTD	Additional director	25/05/2011	25/05/2011	-	Active	NO
3	U26960WB2008PTC123860	AMRITPHAL COMMODITIES PRIVATE LIMITED	Director	13/05/2013	13/05/2013	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2013

Names of Shareholders	No. of Shares
Madhurica Mundhra	193540
Shree Kumar Mundhra	87010
Suresh Kumar Mundhra	87025
Sangita Mundhra	100
Nikhil Mundhra	1000
Madan Lal Mundhra	1000
Jagdish Prasad Lahoti	100
Balram Singi	100
Ramavtar Sharma	100
Shiv Kumar Jain	20450
Sidhartha Jain	2863
Pigment and Chromate India Private Limited, India	21277
S.K. Consultants Limited, India	21277
Bengal Polyplus Private Limited, India	21277
Total	457119

As on: 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	13.96
Directors or relatives of Directors	80.94
Other top fifty shareholders	5.10
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Emulsifiers for the Confectionery Food Chemical and Bakery Industries

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Lactic Acid	Kg.	N.A	--	11000
Sol Bake	Kg.	N.A	*	533290
Bread improver	Kg.	N.A	*	29375
PGPR	Kg.	N.A	*	16100
S.S.L.	Kg.	N.A	*	9000

*Installed capacity is subject to product mix and utilization of plant and machinery, which is common for different products.

GENERAL INFORMATION

No. of Employees :

Information declined by Management.

Bankers :

• Punjab National Bank, 13, Alipur Road, Civil Lines, New Delhi – 110054, India
• ING vysya bank limited, Karol Bagh Branch, Karol Bagh, New Delhi – 110006, India

Facilities :

Secured Loan	31.03.2013 [Rs. in Millions	31.03.2012 [Rs. in Millions]
Long term borrowing
Term Loan From Punjab National Bank (Secured by way of hypothecation of P and M and other assets created out of loan and further extension of charge on all the current assets of the company)	8.487	0.603
(less) Current maturities of long term borrowing	(1.899)	(0.603)
Short Term Borrowing
Working capital Demand Loan from Bank (Secured by way of hypothecation of stock of raw material , WIP, Finished Goods and Book Debt, further secured by way of equitable mortgage of factory, land and building and Plant and Machinery and personal guarantee of directors)	10.321	18.877
Total	16.909	18.877

Banking Relations :	--
Auditors :
Name :	Oswal Sunil and Company Chartered Accountants
Address :	71, Daryaganj, New Delhi – 110002, India
PAN No. :	AABF02315D
Tel. No.:	91-11-23251582 / 23262902 / 43060999
Fax No.:	91-11-23275175
Email:	Oswalsunil.co@gmail.com
Website :	www.oswalsunil.com
Enterprises over which key management personal have significant influence :	B and M Corporation S.V. Corporation Apsom Turner Private Limited

CAPITAL STRUCTURE

As on: 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
457119	Equity Shares	Rs.10/- each	Rs.4.571 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	4.571	4.571	4.571
(b) Reserves & Surplus	15.658	13.634	11.988
(c) Money received against share warrants	0.000	0.000	0.000
			0
(2) Share Application money pending allotment	4.150	4.150	4.150
Total Shareholders’ Funds (1) + (2)	24.379	22.355	20.709
(3) Non-current liabilities
(a) long-term borrowings	10.698	3.217	3.731
(b) Deferred tax liabilities (Net)	0.680	0.459	0.362
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	11.378	3.676	4.093
(4) Current liabilities
(a) Short term borrowings	10.321	18.877	14.857
(b) Trade payables	6.969	0.967	14.100
(c) Other current liabilities	3.256	1.437	2.148
(d) Short-term provisions	0.732	0.675	1.089
Total Current Liabilities (4)	21.278	21.956	32.194
TOTAL	57.035	47.987	56.996
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	26.528	18.355	18.860
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	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	0.074	0.063	0.059
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	26.602	18.418	18.919
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	15.783	14.212	11.833
(c) Trade receivables	12.184	13.974	23.008
(d) Cash and cash equivalents	0.137	0.222	0.077
(e) Short-term loans and advances	2.313	1.133	2.989
(f) Other current assets	0.016	0.028	0.170
Total Current Assets	30.433	29.569	38.077
TOTAL	57.035	47.987	56.996

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	152.941	153.869	122.379
		Other Income	1.953	0.033	0.187
		TOTAL (A)	154.894	153.902	122.566
Less	EXPENSES
		Cost of Material Consumed	134.341	136.860	103.666
		Other Direct Expenses	5.303	3.347	3.189
		Changes in Inventories of Finished Goods, Work-in-progress and Stock-in-trade	(1.319)	(1.018)	3.700
		Employee Benefit Expenses	4.224	4.569	3.264
		Other Expenses	4.614	3.220	2.563
		TOTAL (B)	147.163	146.978	116.382
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		7.731	6.924	6.184
Less	FINANCIAL EXPENSES (D)		3.245	2.989	2.687
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.486	3.935	3.497
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.516	1.472	1.409
	PROFIT BEFORE TAX (E-F) (G)		2.970	2.463	2.088
Less	TAX (H)		0.946	0.817	0.631
	PROFIT AFTER TAX (G-H) (I)		2.024	1.646	1.457
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		8.996	7.350	5.893
	BALANCE CARRIED TO THE B/S		11.020	8.996	7.350
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	2.667	3.100	2.072
	TOTAL EARNINGS		2.667	3.100	2.072
	Earnings Per Share (Rs.)		4.43	3.60	3.19

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.31	1.07	1.19
Net Profit Margin (PBT/Sales)	(%)	1.94	1.60	1.71
Return on Total Assets (PBT/Total Assets}	(%)	5.21	5.13	3.55
Return on Investment (ROI) (PBT/Networth)		0.12	0.11	0.10
Debt Equity Ratio (Total Debt/Networth)		0.86	0.99	0.90
Current Ratio (Current Asset/Current Liability)		1.43	1.35	1.18

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	4.571	4.571	4.571
Reserves & Surplus	11.988	13.634	15.658
Share Application money pending allotment	4.150	4.150	4.150
Net worth	20.709	22.355	24.379
long-term borrowings	3.731	3.217	10.698
Short term borrowings	14.857	18.877	10.321
Total borrowings	18.588	22.094	21.019
Debt/Equity ratio	0.898	0.988	0.862

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	122.379	153.869	152.941
		25.732	(0.603)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	122.379	153.869	152.941
Profit	1.457	1.646	2.024
	1.19%	1.07%	1.32%

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	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	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	No

UNSECURED LOANS

Particulars	31.03.2013 [Rs. in Millions	31.03.2012 [Rs. in Millions]
Long Term Borrowing
Loan and Advances from related Parties
From Directors	1.681	1.480
From Shareholders	2.429	1.737
Total	4.110	3.217

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10393633	10/11/2012	985,000.00	Punjab National Bank	13, Alipur Road, Civil Lines, New Delhi, Delhi -  110054, INDIA	B64754302
2	10086179	19/11/2012 *	36,500,000.00	Punjab National Bank	13, Alipur Road, Civil Lines, New Delhi, Delhi -  110054, INDIA	B64759012
3	10086180	19/11/2012 *	36,500,000.00	Punjab National Bank	13, Alipur Road, Civil Lines, New Delhi, Delhi -  110054, INDIA	B64757677
4	90049765	18/04/2006 *	11,600,000.00	ING VYSYA BANK LTD	KAROL BAGH BRANCH,KAROL BAGH, NEW DELHI, NEW DELH  I, Delhi - 110006, INDIA	-
5	90049552	18/04/2006 *	5,000,000.00	ING VYSYA BANK LTD	KAROL BAGH BRANCH,KAROL BAGH, NEW DELHI, NEW DELH  I, Delhi - 110006, INDIA	-
6	90048387	18/04/2006 *	5,800,000.00	ING VYSYA BANK LTD	KAROL BAGH BRANCH,KAROL BAGH, NEW DELHI, NEW DELH  I, Delhi - 110006, INDIA	A00807487
7	90046038	14/09/1993	4,300,000.00	UCO BANK	DEFENCE COLONY, NEW DELHI, Delhi, INDIA	-

* Date of charge modification

FIXED ASSETS

• Land
• Building
• Plant and Machinery
• Fire Equipment
• Lab Equipment
• Furniture and Fixture
• Office Equipment
• Computers
• Electrical Installation
• Air Conditioner
• Generator
• Motor vehicles
• Motor cycle

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.60.28
UK Pound	1	Rs.101.10
Euro	1	Rs.83.74

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	SUB
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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		43

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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