MIRA INFORM REPORT

Report Date :

23.12.2014

IDENTIFICATION DETAILS

Name :	K. A. MALLE PHARMACEUTICALS LIMITED
Registered Office :	Krishnadham, L.S.Raheja Marg, Raheja Township, Malad (East), Mumbai – 400097, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	11.05.1982
Com. Reg. No.:	11-027110
Capital Investment / Paid-up Capital :	Rs. 12.694 Millions
CIN No.: [Company Identification No.]	U70101MH1982PLC027110
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of bulk drugs, drug intermediates and specialty chemicals.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There seems some deep in the turnover and profit of the company during Financial Year 2014. However, net worth of the company is satisfactory. General financial position of the company is normal and acceptable for business dealings. Trade relations are reported as fair. Business is active. Payments terms are reported to be slow but correct. The company can be considered normal 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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
India	A1	A1

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

EXTERNAL AGENCY RATING

Not Available

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 31-03-2014.

INFORMATION DENIED BY

Name :	Ms. Shobha Raut
Designation :	Accountant
Contact No.:	91-22-42226111
Date :	19.12.2014

LOCATIONS

Registered Office :	Krishnadham, L.S.Raheja Marg, Raheja Township, Malad (East), Mumbai – 400097, Maharashtra, India
Tel. No.:	91-22-42226111
Fax No.:	91-22-42226161
E-Mail :	info@kamalle.com
Factory :	6005 GIDC, Ankleshwar, District Bharuch - 393002, Gujarat, India
Tel. No.:	91-2646-224114
Fax No.:	91-2646-238475
E-Mail :	kamalle@rediffmail.com

DIRECTORS

As on 30.09.2014

Name :

Mr. Radheshyam Dagdulal Bhomavat

Designation :

Managing Director

Address :

23, Hatkesh, 1st Floor, North South Road No. 6, Vile Parle (West), Mumbai – 400056, Maharashtra, India

Date of Birth/Age :

01.11.1941

Date of Appointment :

01.04.2012

DIN No.:

01893247

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	U70101MH1982PLC027110	K. A. MALLE PHARMACEUTICALS LIMITED	Managing director	01/04/2012	08/02/2008	-	Active	NO
2	U45400MH2008PTC182446	RASHA CONSTRUCTIONS PRIVATE LIMITED	Director	19/05/2008	19/05/2008	-	Active	NO
3	U67120MH1995PLC091393	SAI-ASHRAY INDUSTRIES LIMITED	Director	30/09/2008	05/07/2008	-	Active	NO
4	U45202MH2008PTC184397	R S RESIDENCY PRIVATE LIMITED	Director	08/07/2008	08/07/2008	-	Active	NO
5	U74120MH2011PTC212550	UNISTAR TRADELINK PRIVATE LIMITED	Director	19/01/2011	19/01/2011	-	Active	NO
6	U74120MH2011PTC220679	K A MALLE LIFE SCIENCES PRIVATE LIMITED	Director	08/08/2011	08/08/2011	-	Active	NO
7	U72300MH2011PTC221194	NAUTILUS INFOTECH PRIVATE LIMITED	Director	24/08/2011	24/08/2011	-	Active	NO
8	U72900MH2011PTC221873	BLUE RIBBON INFOTECH PRIVATE LIMITED	Director	11/09/2011	11/09/2011	-	Active	NO

Name :

Mr. Pramod Banvarilal Podar

Designation :

Director

Address :

801-B, Gardenia, 8^th Floor, Vasany Vally Complex, Gen. A. K. V. Marg, Malad (East), Mumbai, 400097.

Date of Birth/Age :

03.02.1964

Date of Appointment :

30.09.2008

DIN No.:

01984617

Name :

Ms. Shanu Pramod Podar

Designation :

Director

Address :

801-B, Gardenia, 8^th Floor, Vasany Vally Complex, Gen. A. K. V. Marg, Malad (East), Mumbai, 400097.

Date of Birth/Age :

04.08.1964

Date of Appointment :

30.09.2008

DIN No.:

02064019

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	U70101MH1982PLC027110	K. A. MALLE PHARMACEUTICALS LIMITED	Director	30/09/2008	18/02/2008	-	Active	NO
2	U67120MH1995PLC091393	SAI-ASHRAY INDUSTRIES LIMITED	Director	30/09/2008	04/08/2008	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Shobha Raut
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Names of Shareholders	No. of Shares	% of holding
Sai Ashray Industry Limited, India	1268478	99.92
Mr. Radheshyam Bhomavat	285	0.02
Mr. Pramod Podar	285	0.02
Mr. Rishabh Podar	100	0.01
Master. Divyaj Podar	100	0.01
Mr. Divya Kumar Jain	100	0.01
Mrs. Mamta Jain	100	0.01
Total	1269448	100

As on 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	99.92
Directors or relatives of Directors	0.08
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of bulk drugs, drug intermediates and specialty chemicals.
Products :	Ibufrofen Mebendazole Pyrandazole Tindazole Chloroproponide Mep Mpba Albandazole
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

PRODUCTION STATUS As on 31.03.2014

Particulars	Unit	Licensed Capacity and Installed Capacity	Actual Production
Ibufrofen	Metrics Tonnes	72.00	Nil
Mebendazole	Metrics Tonnes	300.00	26.227
Pyrandazole	Metrics Tonnes	36.00	Nil
Tindazole	Metrics Tonnes	24.00	Nil
Chloroproponide	Metrics Tonnes	12.00	Nil
Mep	Metrics Tonnes	Nil	Nil
Mpba	Metrics Tonnes	Nil	Nil
Albandazole	Metrics Tonnes	Nil	6.425

GENERAL INFORMATION

Suppliers :

· Analab Scientific Instruments Private Limited

· Ashish Interchem Private Limited

· Ankleshwar Ammonia Supply Private Limited

· Dayaram Chemicals Private Limited

· GASCO

· Glass Tef Engineering

· Inter Plastica Private Limited

· Krishna Plastic Industries

· Kundan Rice Mills Limited

· Lanxess India Private Limited

· Master Cote Industries

· Meet Packaging

· Monarch Catalyst Private Limited

· National Card Board Mill

· Nigam Industries

· Nipra Packaging Private Limited

· Prarthana Chemicals

· Prince Containers Private Limited

· Verma Gases Private Limited

· Vishwakarma Engineering Industry

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

Not Divulged

Bankers :

Banker Name	The Cosmos Co-Operative Bank Limited
Branch Address	Vile Parle Branch, Pratik Avenue, 1^st Floor, Nehru Road, Vile Parle (East), Mumbai – 400057, Maharashtra, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

• Bank of India , Malad (East) Branch, Mumbai, Maharashtra, India

Facilities :

(Rs. In Millions)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
Long Term Borrowing
Term loans from Banks	59.550	26.404
(above loans are guaranteed by Directors of the company namely Mr. Radheshyam Bhomavat and Mr. Pramod Podar )
Short Term Borrowing
Loans repayable on demand - OD	71.146	82.687
Other loans and advances (Buyers Credit)	16.128	20.859
Total	146.824	129.950

Auditors :
Name :	Shankar and Kishor Chartered Accountant
Address :	B/702, Oxford Chambers, Saki Vihar Road, Near L and T, Powai, Mumbai – 400072, Maharashtra, India
PAN No.:	AACPS7092L
Memberships :	--
Collaborators :	--
Associates :	Ava Exports K A Malle Lifescience Private Limited Nautilius Infotech Private Limited Rahul Pharma Limited Rasha Construction Private Limited R. S. Residency Private Limited Sai Ashray IndustriesLimited Unistar Tradelinks Private Limited

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1269448	Equity Shares	Rs.10/- each	Rs. 12.694 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	12.694	12.694	12.569
(b) Reserves & Surplus	64.000	62.670	53.132
(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)	76.694	75.364	65.701
(3) Non-Current Liabilities
(a) long-term borrowings	65.739	39.691	65.652
(b) Deferred tax liabilities (Net)	11.408	11.229	10.208
(c) Other long term liabilities	600.404	588.014	584.694
(d) long-term provisions	5.535	4.621	3.730
Total Non-current Liabilities (3)	683.086	643.555	664.284
(4) Current Liabilities
(a) Short term borrowings	88.086	110.649	68.702
(b) Trade payables	133.665	120.604	93.109
(c) Other current liabilities	4.689	3.591	5.770
(d) Short-term provisions	18.988	21.224	16.875
Total Current Liabilities (4)	245.428	256.068	184.456
TOTAL	1005.208	974.987	914.441
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	99.331	103.024	101.863
(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	0.227	0.227	0.227
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	370.871	367.821	365.917
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	470.429	471.072	468.007
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	124.011	104.205	98.129
(c) Trade receivables	261.127	271.416	254.670
(d) Cash and cash equivalents	23.700	29.582	32.707
(e) Short-term loans and advances	70.875	73.712	56.106
(f) Other current assets	55.066	25.000	4.822
Total Current Assets	534.779	503.915	446.434
TOTAL	1005.208	974.987	914.441

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	490.271	510.935	347.799
		Other Income	2.769	5.033	3.724
		TOTAL	493.040	515.968	351.523
Less	EXPENSES
		Cost of Materials Consumed	299.145	311.139	196.146
		Employees benefits expense	36.636	32.249	26.626
		Operating Cost/ Expenses	65.253	69.577	46.036
		Other expenses	56.492	58.968	40.323
		TOTAL	457.526	471.933	309.131
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		35.514	44.035	42.392
Less	FINANCIAL EXPENSES		24.324	22.387	27.499
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		11.190	21.648	14.893
Less/ Add	DEPRECIATION/ AMORTISATION		9.121	8.720	8.516
	PROFIT/ (LOSS) BEFORE TAX		2.069	12.928	6.377
Less	TAX		0.739	4.423	2.250
	PROFIT/ (LOSS) AFTER TAX		1.330	8.505	4.127
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		29.721	22.696	20.030
Less	APPROPRIATIONS
		Dividend	0.000	1.269	1.257
		Tax on Dividend	0.000	0.211	0.204
	BALANCE CARRIED TO THE B/S		31.051	29.721	22.696
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings (Pharma Div)	135.152	115.669	72.893
	TOTAL EARNINGS		135.152	115.669	72.893
	IMPORTS
		Raw Materials	79.227	63.011	41.957
	TOTAL IMPORTS		79.227	142.238	104.968
	Earnings Per Share (Rs.)		1.05	6.70	3.25

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	0.27	1.66	1.19
Operating Profit Margin (PBDIT / Sales)	(%)	7.24	8.62	12.19
Return on Total Assets (PBT/Total Assets}	(%)	0.21	1.33	0.70
Return on Investment (ROI) (PBT/Networth)		0.03	0.17	0.10
Debt Equity Ratio (Total Debt /Networth)		2.01	1.99	2.04
Current Ratio (Current Asset/Current Liability)		2.18	1.97	2.42

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	12.569	12.694	12.694
Reserves & Surplus	53.132	62.670	64.000
Net worth	65.701	75.364	76.694
long-term borrowings	65.652	39.691	65.739
Short term borrowings	68.702	110.649	88.086
Total borrowings	134.354	150.340	153.825
Debt/Equity ratio	2.045	1.995	2.006

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	347.799	510.935	490.271
		46.905	(4.044)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	347.799	510.935	490.271
Profit	4.127	8.505	1.330
	1.19%	1.66%	0.27%

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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
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

NOTE: Registered address of the company has been shifted from G-1/2 Kalpira Enclare Sahar Road, Andheri (East), Mumbai – 400069, Maharashtra, India to the present address w.e.f 10.03.2010

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
Long Term Borrowing
Loans and advances from related parties
Loan From Directors / Shareholders ( Loan from Shardadevi Poddar )	2.487	3.816
Other loans and advances
Rasha Construction	3.004	1.629
(Loan from R S Residency Private Limited	0.698	7.842
Short Term Borrowing
Loans and advances from related parties	0.812	7.102
Total	7.001	20.389

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	CHARGE HOLDER	ADDRESS	Service Request Number (SRN)
1	10353329	21/04/2012	700,000.00	THE COSMOS CO-OP BANK LIMITED	VILE PARLE BRANCH PRATIK AVENUE, 1ST FLOOR, NEHRU ROAD , VILE PARLE (E), MUMBAI, MAHARASHTRA - 400057, INDIA	B38816203
2	10113252	30/07/2013 *	466,500,000.00	THE COSMOS CO-OPERATIVE BANK LIMITED	VILE PARLE BRANCH, PRATIK AVENUE, 1ST FLOOR,, NEH RU ROAD, VILE PARLE (EAST), MUMBAI, MAHARASHTRA - 400057, INDIA	B81733222
3	90183896	06/12/1985	10,000,000.00	STANDARD CHARTERED BANK	25. M. G. ROAD; FORT, BOMBAY, MAHARASHTRA, INDIA	-

* Date of charge modification

OPERATIONS AND FUTURE PROSPECTS

The Company has this year reduced turnover of Rs. 493.040 Millions. The decrease of about 4.44% in the turnover of the Company in comparison with previous year and there is decrease in other income of Rs. 2.769 Millions in comparison with previous year of Rs. 5.033 Millions. The profit after tax has been reduced substantially for the current year to Rs. 1.330 Millions due to sharp increase in the expenditure because of inflation and also decrease in sales turnover due to global recession.

Since Jewellery Division was stopped there was no turn over in that Division during the year.

The profitability of the Company was adversely affected due to increase in the prices of key raw materials, increase in expenditure due to inflation. To keep the plant running, the Company had to book imported key raw material at a higher prices. Even though increase in cost of raw materials and steep increase in operational cost such as Electricity charges, Gas Expenses, the prices of finished products could not be increased proportionately which has effected bottom line of the Profit & Loss account during the current financial year.

COMPANY OVERVIEW

K. A. Malle Pharmaceuticals Limited was incorporated on 11th May 1982 as a private limited company in the name of K. A. Malle Leasing Company Private Limited to conduct the business of leasing and arranging for hire purchase finance. Later, on 27th February 1986, the Company was converted into a public limited company under the name of K. A. Malle Leasing Company Limited.

Subsequently, in 1986, the Company changed its line of business to manufacturing of bulk drugs, drug intermediates and specialty chemicals. On 31st October 1986, the name of the Company was changed to K. A. Malle Pharmaceuticals Limited. Currently, the Company is engaged in manufacture of bulk drugs, drug intermediates and specialty chemicals. During the year 2008-09 Company also started Jewellery division doing export of jewellery.

The Company is headquartered at Mumbai and has a manufacturing facility located at Ankleshwar, Gujarat. The production capacity of manufacturing plant is 450 tons per annum and the current capacity utilization for the same is around 90%. The Company has also been provided with the status of Export House by the Government of India.

FIXED ASSETS

• Land and Building
• Furniture and Fixtures
• Electrical Installation
• Pipes and Valves
• Laboratory Equipments
• Computers
• Plant and Machinery
• Vehicles
• Office Equipment

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.63.17
UK Pound	1	Rs.98.85
Euro	1	Rs.77.41

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	DIV
Report Prepared by :	KLS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	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	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		42

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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