MIRA INFORM REPORT

Report Date :

01.08.2014

IDENTIFICATION DETAILS

Name :	ARROW AVIATION SERVICES PRIVATE LIMITED
Formerly Known As :	RIDDHI TRADERS PRIVATE LIMITED (w.e.f. 11.10.2001)
Registered Office :	53/1/3, Hazra Road, Ballygunge Chambers, Kolkata – 700019, West Bengal
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	10.01.1997
Com. Reg. No.:	21 – 082564
Capital Investment / Paid-up Capital :	Rs. 6.855 Millions
CIN No.: [Company Identification No.]	U51909WB1997PTC082564
Legal Form :	Private Limited Liability Company
Line of Business :	Trader, Importer and Exporter Air Craft Spare Parts
No. of Employees :	10 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 63000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track. The company has incurred a loss from its operations during 2013. However, trade relations are fair. Business is active Payments terms are reported to be slow but correct. The company can be considered for business dealing with some 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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Tarun
Designation :	Accounts Head
Contact No.:	91-33-24860166
Date :	30.07.2014

LOCATIONS

Registered Office :	53/1/3, Hazra Road, Ballygunge Chambers, Kolkata – 700019, West Bengal, India
Tel. No.:	91-33-24860 / 66 / 67 / 69
Fax No.:	91-33-24860170
E-Mail :	piyali@arrowaviation.in
Website :	http://www.arrowaviation.in
Factory 1 :	67, Sharadachandra, Dhar Road, Kolkata – 700090, West Bengal, India
Branches :	Located at : · New Delhi · Mumbai

DIRECTORS

As on: 30.09.2013

Name :

Ms. Bhavna Gupta

Designation :

Director

Address :

Silver Spring, Block – 7, Flat – 11A, 5 JBS Haldane Avenue, Senorita, Kolkata – 700020, West Bengal, India

Date of Birth/Age :

28.05.1972

Date of Appointment :

14.08.1998

DIN No.:

00613315

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	U51909WB1997PTC082564	ARROW AVIATION SERVICES PRIVATE LIMITED	Director	14/08/1998	14/08/1998	-	Active	NO
2	U25209WB2002PTC094284	SAKSHAM ENGINEERING PRIVATE LIMITED	Director	25/02/2002	25/02/2002	-	Active	NO
3	U36999WB2004PTC099069	AVIQUIPO ENGINEERING PRIVATE LIMITED	Director	08/07/2004	08/07/2004	-	Active	NO

Name :

Mr. Rajesh Mohta

Designation :

Director

Address :

10, Pollock Street, Kolkata, West Bengal, India

Date of Birth/Age :

14.10.1956

Date of Appointment :

08.03.2004

DIN No.:

00063622

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	U25202WB1980PTC032500	AR V ORGANISATIONS PVT LTD	Director	05/02/1980	05/02/1980	-	Active	NO
2	U63040NL1996PTC004781	JAGDISH AND COMPANY PVT LTD	Managing director	18/06/1996	18/06/1996	01/11/2013	Active	NO
3	U51909WB1993PTC060106	RAJESH VINIYOG PVT LTD	Director	02/05/2001	02/05/2001	-	Active	NO
4	U51909WB1994PTC063356	ASTHA POLYMER PRODUCTS PRIVATE LIMITED	Director	03/09/2001	03/09/2001	-	Active	NO
5	U51909WB1997PTC082564	ARROW AVIATION SERVICES PRIVATE LIMITED	Director	08/03/2004	08/03/2004	-	Active	NO
6	U27101AS2006PTC008043	SHREE MATA METAL AND ALLIED PRODUCTS PRIVATE LIMITED	Director	24/01/2006	24/01/2006	-	Strike off	NO
7	U25209WB2006PTC109463	VRV POLYMERS PVT LTD	Director	17/05/2006	17/05/2006	-	Under Process of Striking off	NO
8	U91110WB1959NPL024140	INDIAN PLASTICS FEDERATION	Director	20/10/2007	20/10/2007	20/09/2013	Active	NO
9	U22219WB1989PTC045991	RATERIA LAMINATORS PVT LTD	Director	24/12/2010	24/12/2010	29/07/2011	Active	NO

Name :

Mr. Samir Gupta

Designation :

Director

Address :

Silver Spring, Block – 7, Flat – 11A, 5 JBS Haldane Avenue, Senorita, Kolkata – 700020, West Bengal, India

Date of Birth/Age :

18.09.1971

Date of Appointment :

19.11.2004

DIN No.:

00613318

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	U35112WB1945PLC012264	AVIQUIPO OF INDIA LTD	Director	01/04/1996	01/04/1996	17/01/2012	Active	YES
2	U74899DL1995PTC068038	AIL PLASTICS PRIVATE LIMITED	Director	01/04/2000	01/04/2000	-	Active	NO
3	U51909WB1997PTC082564	ARROW AVIATION SERVICES PRIVATE LIMITED	Director	19/11/2004	19/11/2004	-	Active	NO
4	U25209WB2002PTC094284	SAKSHAM ENGINEERING PRIVATE LIMITED	Additional director	20/02/2009	20/02/2009	-	Active	NO
5	U93090MH2009PTC190982	SAMPAN AVIATION SERVICES PRIVATE LIMITED	Director	17/03/2009	17/03/2009	-	Active	NO
6	U62200DL2009PTC193481	ARROW AIRCRAFT SALES AND CHARTERS PRIVATE LIMITED	Director	24/08/2009	24/08/2009	-	Active	NO
7	U62200DL2013PTC247192	ARROW AIRCRAFT SERVICES PRIVATE LIMITED	Director	09/01/2013	09/01/2013	-	Active	NO
8	U62100MH2013PTC243949	ARROW FLIGHT SERVICES PRIVATE LIMITED	Director	03/06/2013	03/06/2013	-	Active	NO
9	U70109WB2012PTC185743	GOLDENYATRA COMPLEX PRIVATE LIMITED	Additional director	18/06/2014	18/06/2014	-	Active	NO

Name :

Mr. Shailendra Pratap Singh

Designation :

Director

Address :

C – 604, Lovely Home Apartment, Plot No. 5, Sector Dwarka, New Delhi – 110075, India

Date of Birth/Age :

08.10.1971

Date of Appointment :

26.08.2009

DIN No.:

02734709

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	U62200DL2009PTC193481	ARROW AIRCRAFT SALES AND CHARTERS PRIVATE LIMITED	Director	24/08/2009	24/08/2009	-	Active	NO
2	U51909WB1997PTC082564	ARROW AVIATION SERVICES PRIVATE LIMITED	Director	26/08/2009	26/08/2009	-	Active	NO
3	U62200DL2013PTC247192	ARROW AIRCRAFT SERVICES PRIVATE LIMITED	Director	09/01/2013	09/01/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Tarun
Designation :	Accounts Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2013

Names of Shareholders	No. of Shares	% of Holding
Bhavna Gupta	5010	0.73
Samir Gupta	178510	26.04
Samir Gupta - HUF	502000	73.23
Total	685520	100.00

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2013

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader, Importer and Exporter Air Craft Spare Parts
Products :	· Aerospace structural components · Auxiliary engine · Propellers · Aerospace vanes · Aeronautical Equipments · Engine control unit
Exports :
Products :	Finished Goods
Countries :	Sri Lanka
Imports :
Products :	Spare Parts
Countries :	· USA · UK
Terms :
Selling :	Cash, Cheque and credit
Purchasing :	Cash, Cheque and credit

GENERAL INFORMATION

Customers :

OEM’s and Others

No. of Employees :

10 (Approximately)

Financial institutions :

· Tata Capital Limited

· Magma Fin Corporation Limited

· Kotak Mahindra Prime Limited

Bankers :

· Oriental Bank Of Commerce, Kolkata, West Bengal, India

· Royal Bank Of Scotland

· HDFC Bank Limited

· ICICI Bank Limited

Facilities :

Secured Loan	As on 31.03.2013	As on 31.03.2012
	(Rs. In Millions)
LONG TERM BORROWINGS
BUSINESS LOAN
Royal Bank Of Scotland	0.000	0.484
Tata Capital Limited	0.000	0.416
Magma Fin Corporation Limited	0.000	0.311
HDFC Bank Limited	0.100	0.393
SHORT TERM BORROWINGS:	0	0
The Royal Bank Of Scotland	0.484	0.722
Tata Capital Limited	0.416	0.912
Magma Fin Corporation Limited	0.311	0.646
HDFC Bank Limited	0.000	1.017
ICICI Bank Limited	0.293	0.259
ICICI Bank Limited	0.000	0.203
KOTAK Mahindra Prime Limited	0.000	0.072
Total	1.604	5.435

Banking Relations :	--
Auditors :
Name :	Manish Dokania and company Chartered Accountants
Address :	12, Mangoe Lane, 1^st Floor, Kolkata – 700001, West Bengal, India
Tel. No.:	91-3022-5668
Fax No.:	91-33-2103569
E-Mail :	dokania@vsnl.com
PAN No.:	ADQPD1642N

CAPITAL STRUCTURE

As on: 31.03.2013

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
685520	Equity Shares	Rs.10/- each	Rs. 6.855 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	6.855	6.855	6.855
(b) Reserves & Surplus	8.799	15.412	15.744
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	15.654	22.267	22.599
(3) Non-Current Liabilities
(a) long-term borrowings	10.023	16.156	19.432
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(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)	10.023	16.156	19.432
(4) Current Liabilities
(a) Short term borrowings	1.505	3.831	11.657
(b) Trade payables	44.566	41.736	25.798
(c) Other current liabilities	12.226	11.313	7.734
(d) Short-term provisions	0.717	0.798	0.659
Total Current Liabilities (4)	59.014	57.678	45.848
TOTAL	84.691	96.101	87.879
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	42.802	40.977	48.110
(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	1.771	1.771	1.771
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	2.399	2.840	3.084
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	46.971	45.588	52.965
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	4.094	3.987	1.784
(c) Trade receivables	15.072	32.244	19.445
(d) Cash and cash equivalents	3.015	2.683	2.182
(e) Short-term loans and advances	15.538	11.599	11.503
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	37.719	50.513	34.914
TOTAL	84.691	96.101	87.879

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	71.671	97.500	70.612
		Other Income	0.608	5.872	0.832
		TOTAL	72.279	103.372	71.444
Less	EXPENSES
		Cost of Materials Consumed	54.944	66.437	47.225
		Purchases of Stock-in-Trade	0.790	0.911	0.694
		Employees benefits expense	8.082	9.277	6.029
		Other expenses	10.850	14.862	11.642
		TOTAL	74.666	91.487	65.590
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(2.387)	11.885	5.854
Less	FINANCIAL EXPENSES		1.893	3.858	1.630
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		(4.280)	8.027	4.224
Less/ Add	DEPRECIATION/ AMORTISATION		1.887	8.359	3.238
	PROFIT BEFORE TAX AND EXCEPTIONAL ITEMS		(6.166)	(0.332)	0.986
Less	EXCEPTIONAL ITEMS		0.446	0.000	0.000
	PROFIT BEFORE TAX		(6.612)	(0.332)	0.986
Less	TAX		0.000	0.000	0.008
	PROFIT AFTER TAX		(6.612)	(0.332)	0.978
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		14.917	15.249	14.271
	BALANCE CARRIED TO THE B/S		8.305	14.917	15.249
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1.138	0.000	0.000
	TOTAL EARNINGS		1.138	0.000	0.000
	IMPORTS
		Stores & Spares	53.718	68.366	39.019
	TOTAL IMPORTS		53.718	68.366	39.019
	Earnings Per Share (Rs.)		(9.65)	(0.48)	1.43

Expected Sales (2013-2014): Rs.70.000 Millions

The above information has been parted by Mr. Tarun (Accounts Head).

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(9.15)	(0.32)	1.37
Net Profit Margin (PBT/Sales)	(%)	(9.23)	(0.34)	1.40
Return on Total Assets (PBT/Total Assets}	(%)	(7.97)	(0.35)	1.15
Return on Investment (ROI) (PBT/Networth)		(0.42)	(0.01)	0.04
Debt Equity Ratio (Total Debt/Networth)		0.74	0.90	1.38
Current Ratio (Current Asset/Current Liability)		0.64	0.88	0.76

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	6.855	6.855	6.855
Reserves & Surplus	15.744	15.412	8.799
Net worth	22.599	22.267	15.654
long-term borrowings	19.432	16.156	10.023
Short term borrowings	11.657	3.831	1.505
Total borrowings	31.089	19.987	11.528
Debt/Equity ratio	1.376	0.898	0.736

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	70.612	97.500	71.671
		38.079	-26.491

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	70.612	97.500	71.671
Profit	0.978	(0.332)	(6.612)
	1.39%	(0.34%)	(9.23%)

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	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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	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 LOAN

Particulars	As on 31.03.2013	As on 31.03.2012
	(Rs. In Millions)
LONG TERM BORROWINGS
Loan from other parties	9.923	14.552
Total	9.923	14.552

INDEX OF CHARGES:

No Charges Exist for Company

FIXED ASSETS:

· Building

· Plant and Machinery

· Furniture and Fixtures

· Mobile

· Fax Machine

· Computer

· Tools and Instrument

· Motor Car

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.60.24
UK Pound	1	Rs.101.92
Euro	1	Rs.80.70

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	RAS
Report Prepared by :	JAY

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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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