MIRA INFORM REPORT

Report Date :

02.07.2014

IDENTIFICATION DETAILS

Name :	PRIME LENSES PRIVATE LIMITED (w.e.f 11.03.2005)
Formerly Known As :	GKB MARKETING SERVICES PRIVATE LIMITED
Registered Office :	D2-19, Tivim Industrial Estate, Mapusa - 403526, Goa
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	30.05.1988
Com. Reg. No.:	24-000823
Capital Investment / Paid-up Capital :	Rs.48.850 Millions
CIN No.: [Company Identification No.]	U52311GA1988PTC000823
TAN No.: [Tax Deduction & Collection Account No.]	BLRP06227E / BLRP06260C
PAN No.: [Permanent Account No.]	AAACG7072P
Legal Form :	Private Limited Liability Company
Line of Business :	Producer of finest quality of Ophthalmic Lenses.
No. of Employees :	340 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (12)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow and delayed
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has incurred huge accumulated losses which has eroded net worth of the company. Liquidity position of the company is under pressure. Business is active. Payment terms are unknown. The company can be considered for business dealings on safe and secured 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 PARTED BY

Name :	Mr. Babla
Designation :	Account Manager
Contact No.:	91-9326140742
Date :	19.06.2014

LOCATIONS

Registered Office :	D2-19, Tivim Industrial Estate, Mapusa-403526, Goa, India
Tel. No.:	91-832-2257253 / 283 / 291 / 335 / 336 / 3256270
Mobile No.:	91-9326140742 (Mr. Babla)
Fax No.:	91-832-2257044
E-Mail :	primegoa@bsnl.in gkbgoa@bsnl.in primegoa@gkb.net
Website :	http://www.primelenses.com
Factory :	Plot No. C-432, TTC. Industrial Area, MIDC Turbhe Opposite Lubrizol Gate No. 3 and Basr P. O. Vashi, Navi Mumbai - 400703
Tel. No.:	91-22-64559400/01/02/03
Fax No.:	91-22-27670024
Branch Office :	Located At: Mumbai Chennai Noida Cochin Hyderabad Kolkata Nagpur Ahmedabad Bangalore New Delhi

DIRECTORS

As on: 30.08.2013

Name :

Ms. Veena Gupta

Designation :

Director

Address :

Anukampa, 60 Green Valley, Alto Porvorim-403521, North Goa, India

Date of Birth/Age :

28.08.1946

Qualification :

Graduate

Date of Appointment :

01.02.1992

DIN No.:

00953242

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	U52311GA1988PTC000823	PRIME LENSES PRIVATE LIMITED	Director	01/02/1992	01/02/1992	-	Active	NO
2	U72100MH2000PTC129227	MEGA MOTION INFOTECH PRIVATE LIMITED	Director	17/10/2000	17/10/2000	-	Strike off	NO
3	U92132MH2001PTC133328	MEGA MOTION STUDIOS PRIVATE LIMITED	Director	10/09/2001	10/09/2001	-	Strike off	NO

Name :

Mr. Vikram Gupta

Designation :

Director

Address :

Anukampa, 60 Green Valley, Alto Porvorim-403521, North Goa, India

Date of Birth/Age :

27.09.1968

Qualification :

B.E.

Date of Appointment :

25.03.1994

DIN No.:

00052019

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	U52311GA1988PTC000823	PRIME LENSES PRIVATE LIMITED	Managing director	01/09/2010	25/03/1994	-	Active	NO
2	L26109GA1981PLC000469	GKB OPHTHALMICS LIMITED	Director	01/04/2008	24/07/1996	-	Active	NO
3	U33201GA2000PLC002864	GKB VISION LIMITED	Whole-time director	01/04/2013	03/07/2000	-	Active	NO
4	U72100MH2000PTC129227	MEGA MOTION INFOTECH PRIVATE LIMITED	Director	17/10/2000	17/10/2000	-	Strike off	NO
5	U92132MH2001PTC133328	MEGA MOTION STUDIOS PRIVATE LIMITED	Director	10/09/2001	10/09/2001	-	Strike off	NO
6	U33201GA2004PTC003411	PRIME OPHTHALMIC PRODUCTS PRIVATE LIMITED	Director	04/03/2004	04/03/2004	-	Amalgamated	NO
7	U33112GA2005PTC004198	VISION MOLD INNOVATIONS PRIVATE LIMITED	Director	26/10/2005	26/10/2005	-	Strike off	NO
8	U74899GA1996PTC005420	CRYSTA LENSES PRIVATE LIMITED.	Director	31/03/2006	31/03/2006	-	Active	NO
9	U33201GA2008PTC005907	INDO PRIME VISUAL TECHNOLOGIES PRIVATE LIMITED	Director	20/09/2008	20/09/2008	28/01/2013	Strike off	NO

Name :

Mr. Gaurav Gupta

Designation :

Director

Address :

Anukampa, 60 Green Valley, Alto Porvorim-403521, North Goa, India

Date of Birth/Age :

26.03.1972

Qualification :

B.Sc.

Date of Appointment :

27.07.1994

DIN No.:

00051974

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	U52311GA1988PTC000823	PRIME LENSES PRIVATE LIMITED	Director	27/07/1994	27/07/1994	-	Active	NO
2	L26109GA1981PLC000469	GKB OPHTHALMICS LIMITED	Director	03/07/1999	03/07/1999	-	Active	NO
3	U33201GA2000PLC002864	GKB VISION LIMITED	Managing director	01/09/2013	03/07/2000	-	Active	NO
4	U72100MH2000PTC129227	MEGA MOTION INFOTECH PRIVATE LIMITED	Director	17/10/2000	17/10/2000	-	Strike off	NO
5	U92132MH2001PTC133328	MEGA MOTION STUDIOS PRIVATE LIMITED	Director	10/09/2001	10/09/2001	-	Strike off	NO
6	U33201GA2004PTC003411	PRIME OPHTHALMIC PRODUCTS PRIVATE LIMITED	Director	04/03/2004	04/03/2004	-	Amalgamated	NO
7	U33112GA2005PTC004198	VISION MOLD INNOVATIONS PRIVATE LIMITED	Director	26/10/2005	26/10/2005	-	Strike off	NO
8	U74899GA1996PTC005420	CRYSTA LENSES PRIVATE LIMITED.	Director	31/03/2006	31/03/2006	-	Active	NO
9	U74900GA2012PTC006928	ALCHEMY CONCEPTS PRIVATE LIMITED	Director	21/04/2012	21/04/2012	-	Active	NO

Name :

Mr. Prakash Vaman Joshi

Designation :

Director

Address :

Flat No. F1, Silver Apartments, Block 19, Shetyewadda, Dhuler Mapusa – 403507, North Goa, India

Date of Birth/Age :

28.10.1956

Date of Appointment :

02.11.2012

DIN No.:

00051906

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	U33201GA2004PTC003411	PRIME OPHTHALMIC PRODUCTS PRIVATE LIMITED	Director	18/10/2004	18/10/2004	-	Amalgamated	NO
2	U74899GA1996PTC005420	CRYSTA LENSES PRIVATE LIMITED.	Director	31/03/2006	31/03/2006	-	Active	NO
3	U33201GA2008PTC005907	INDO PRIME VISUAL TECHNOLOGIES PRIVATE LIMITED	Managing director	01/07/2009	20/09/2008	-	Strike off	NO
4	U52311GA1988PTC000823	PRIME LENSES PRIVATE LIMITED	Director	30/08/2013	02/11/2012	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Babla
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.08.2013

Names of Shareholders	No. of Shares
GKB Ophthalmics Limited	532592
GKB Vision Limited	373704
Gaurav Krishna Gupta	170463
Shefali Vipul Chawala	108019
Veena Krishna Gupta	140327
Krishna Gopal Gupta	333850
K.G. Gupta (HUF)	12290
Vikram Krishna Gupta	193736
Radhika Gaurav Gupta	15000
Seema Vikram Gupta	5000
Total	1884981

As on: 30.08.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	48.00
Directors or relatives of directors	52.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Producer of finest quality of Ophthalmic Lenses.
Exports :
Products :	Finished Goods
Countries :	USA South Africa
Imports :
Products :	Raw Material
Countries :	China USA
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

• GKB Ophthalmic Limited

Customers :

Retailers

• PK Ophthalmic Private Limited

No. of Employees :

340 (Approximately)

Bankers :

Bank of India, Mapusa Branch, Bandeshwar Near Municipal Garden, Mapusa-403507, Goa, India

Facilities :

Cash Credit: Rs.12.500 Millions (From Bank of India)

Secured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loan
From Banks	0.328	1.095
SHORT TERM BORROWINGS
From Banks Cash Credit	38.836	38.024
Total	39.164	39.119

Banking Relations :	--
Auditors :
Name :	Dinesh Heda and Company Chartered Accountants
Address :	36, D- 8, Ranghavi Estate, Bogmalo Road, Dabolim – 403801, Goa, India
PAN No.:	AAHPH5787N
Sister Concerns :	GKB Ophthalmic Limited

CAPITAL STRUCTURE

As on: 30.08.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1884981	Equity Shares	Rs.10/- each	Rs.18.850 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	18.850	18.850	18.850
(b) Reserves & Surplus	(21.312)	(22.287)	11.274
(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)	(2.462)	(3.437)	30.124
(3) Non-Current Liabilities
(a) Long-term borrowings	0.328	1.095	6.882
(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	0.528	0.425	0.440
Total Non-current Liabilities (3)	0.856	1.520	7.322
(4) Current Liabilities
(a) Short term borrowings	38.836	38.024	38.600
(b) Trade payables	158.760	153.483	139.014
(c) Other current liabilities	39.456	47.523	47.510
(d) Short-term provisions	3.136	2.903	2.244
Total Current Liabilities (4)	240.188	241.933	227.368
TOTAL	238.582	240.016	264.814
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	130.529	139.712	137.768
(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	2.020	2.020	2.020
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	132.549	141.732	139.788
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	34.331	29.748	49.659
(c) Trade receivables	45.616	40.657	49.043
(d) Cash and cash equivalents	10.453	12.196	9.522
(e) Short-term loans and advances	15.599	15.653	16.761
(f) Other current assets	0.034	0.030	0.041
Total Current Assets	106.033	98.284	125.026
TOTAL	238.582	240.016	264.814

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	187.138	173.929	188.706
		Other Income	1.469	0.645	15.267
		TOTAL (A)	188.607	174.574	203.973
Less	EXPENSES
		Cost of Materials Consumed	57.954	77.837	69.737
		Purchases of Stock-in-Trade	10.200	3.607	8.440
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(1.105)	0.000	0.000
		Employees benefits expense	40.915	39.684	36.111
		Other expenses	56.818	63.194	63.983
		TOTAL (B)	164.782	184.322	178.271
	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		23.825	(9.748)	25.702
Less	FINANCIAL EXPENSES (D)		11.454	13.926	15.402
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.371	(23.674)	10.300
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.488	9.887	9.943
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		1.883	(33.561)	0.357
Less	TAX (H)		0.908	0.000	0.000
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		0.975	(33.561)	0.357
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	1.194	2.662	0.114
	TOTAL EARNINGS		1.194	2.662	0.114
	IMPORTS
		Raw Materials	57.954	77.838	69.737
		Stores & Spares	13.472	14.869	17.887
	TOTAL IMPORTS		71.426	92.707	87.624
	Earnings / (Loss) Per Share (Rs.)		0.52	(17.80)	0.19

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.52	(19.22)	0.18
Net Profit Margin (PBT/Sales)	(%)	1.01	(19.30)	0.19
Return on Total Assets (PBT/Total Assets}	(%)	0.80	(14.10)	0.14
Return on Investment (ROI) (PBT/Networth)		(0.76)	9.76	0.01
Debt Equity Ratio (Total Debt/Networth)		(15.90)	(11.38)	1.51
Current Ratio (Current Asset/Current Liability)		0.44	0.41	0.55

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	18.850	18.850	18.850
Reserves & Surplus	11.274	(22.287)	(21.312)
Net worth	30.124	(3.437)	(2.462)
long-term borrowings	6.882	1.095	0.328
Short term borrowings	38.600	38.024	38.836
Total borrowings	45.482	39.119	39.164
Debt/Equity ratio	1.510	(11.382)	(15.907)

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)
Total Income	203.973	174.574	188.607
		(14.413)	8.038

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	203.973	174.574	188.607
Profit	0.357	(33.561)	0.975
	0.18%	(19.22%)	0.52%

LOCAL AGENCY FURTHER INFORMATION

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	Yes
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

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90077628	22/11/2010 *	98,508,000.00	CANARA BANK	MATHIAS PLAZA, 18TH JUNE ROAD, PANAJI, Goa - 403 001, INDIA	B02809101
2	90065578	20/07/2013 *	15,000,000.00	BANK OF INDIA	MAPUSA BRANCH, BANDESHWAR, NEAR MUNCIPAL GARDEN, MAPUSA, Goa - 403507, INDIA	B81103178

FIXED ASSETS

• Building
• Lease Hold Improvement
• Plant and Machinery
• Furniture and Fixture
• Electrical Installation
• Office Equipment
• Vehicles
• A C Plant
• Computer

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.60.12
UK Pound	1	Rs.102.00
Euro	1	Rs.81.43

INFORMATION DETAILS

Information Gathered by :	PDT
Analysis Done by :	KAR
Report Prepared by :	OKR

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	-
--CREDIT LINES	1~10	-
--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		12

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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