MIRA INFORM REPORT

Report Date :

30.07.2014

IDENTIFICATION DETAILS

Name :	CLIMAX SYNTHETICS PRIVATE LIMITED
Registered Office :	18 B, Brabourne Road, 2^nd Floor, Hare St, Kolkata-700001, West Bengal
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	11.02.1974
Com. Reg. No.:	21-029250
Capital Investment / Paid-up Capital :	Rs.23.220 Millions
CIN No.: [Company Identification No.]	U28113WB1974PTC029250
IEC No.:	0288016726
TAN No.: [Tax Deduction & Collection Account No.]	CALC00592E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Trader of HDPE Pipes and LDPE Films, Sheets, etc.
No. of Employees :	24 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 960000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Three seems some continuous dip in the profit of the company, the borrowings of the company has also increased. However, trade relations are reported as fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business with some caution.

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 (31.03.2014)	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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	B+ = Long Term Rating
Rating Explanation	High risk of defaulter
Date	08.05.2014

Rating Agency Name	CRISIL
Rating	A4 = Short Term Rating
Rating Explanation	Minimal degree of safety, It carry very high credit risk
Date	08.05.2014

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 PARTED BY

Name :	Mr. Prakash Patel
Designation :	Senior Accountant
Contact No.:	91-9909922070
Date :	21.07.2014

LOCATIONS

Registered Office :	18 B, Brabourne Road, 2^nd Floor, Kolkata - 700 001, West Bengal, India
Tel. No.:	91-33-22343076 / 2642836
Mobile No.:	91-9909922070 (Mr. Prakash Patel)
Fax No.:	91-33-22343076
E-Mail :	info@climaxindia.com mksinghee@yahoo.co.uk manojsinghee@gmail.com
Website :	http://www.climaxindia.com
Area :	1000 sq ft
Location :	Owned
Head Office :	11, Pollock Street, Kolkatta - 700 011, West Bengal, India
Area :	800 sq ft (approximately)
Location :	Owned
Corporate Office / Factory :	A/1-835 and 836, GIDC, Makarpura, Vadodara-390 010, Gujarat, India
Tel. No.:	91-265-2642169/ 2642572/ 2642836
Fax No.:	91-265-2643362
E-Mail :	info@climaxindia.com
Area :	6000 sq metres
Location :	Owned
Warehouse :	Ginni Cooperative Society, Opposite Vernama High School, National Highway No. 8, Village Vernama, District Vadodara, Gujarat, India
Area :	1500 sq fts
Location :	Rented

DIRECTORS

As on 30.09.2013

Name :

Mr. Khemraj Mundhra

Designation :

Director

Address :

Shri Kunj, Survey No. 13/2, Behind Limbu Wadi, Gotri Sudhrat Road, Baroda – 391 101, Gujarat, India

Date of Birth/Age :

27.05.1940

Qualification :

SSC

Date of Appointment :

21.01.1981

DIN No.:

00395994

Voter ID No. :

KJR4797312

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	U28113WB1974PTC029250	CLIMAX SYNTHETICS PRIVATE LIMITED	Director	21/01/1981	21/01/1981	-	Active	NO
2	U24231GJ1984PTC006892	CLIMAX WATERPROOFING PRODUCTS PRIVATE LIMITED	Director	19/04/1984	19/04/1984	-	Active	NO
3	U27205WB1996PTC081040	GLAMOUR JEWELS PRIVATE LIMITED	Director	23/08/1996	23/08/1996	-	Active	NO
4	U74300WB1954PLC021822	INDIA PUBLICITY COMPANY LIMITED	Director	5/11/2002	5/11/2002	-	Active	NO

Name :

Mr. Pramod Mundhra

Designation :

Director

Address :

Shri Kunj, Survey No. 13/2, Behind Limbu Wadi, Gotri Sudhrat Road, Baroda – 391 101, Gujarat, India

Date of Birth/Age :

09.07.1974

Qualification :

B.Com

Date of Appointment :

14.03.1994

DIN No.:

00395980

Voter ID No. :

KJR4797320

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	U28113WB1974PTC029250	CLIMAX SYNTHETICS PRIVATE LIMITED	Director	14/03/1994	14/03/1994	-	Active	NO
2	U24231GJ1984PTC006892	CLIMAX WATERPROOFING PRODUCTS PRIVATE LIMITED	Director	1/9/1994	1/9/1994	-	Active	NO
3	U51109WB1994PTC064342	CLIMAX VYAPAAR PRIVATE LIMITED	Director	23/10/1998	23/10/1998	-	Active	NO
4	U51109WB1993PTC060993	CLIMAX FINCAP PRIVATE LIMITED	Director	23/10/1998	23/10/1998	-	Active	NO

Name :

Mr. Pankaj Mundhra

Designation :

Director

Address :

Shri Kunj, Survey No. 13/2, Behind Limbu Wadi, Gotri Sudhrat Road, Baroda – 391 101, Gujarat, India

Date of Birth/Age :

24.04.1970

Qualification :

B.Com

Date of Appointment :

11.02.1993

DIN No.:

00395988

Voter ID No. :

KJR4797627

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	U28113WB1974PTC029250	CLIMAX SYNTHETICS PRIVATE LIMITED	Director	11/02/1993	11/02/1993	-	Active	NO
2	U24231GJ1984PTC006892	CLIMAX WATERPROOFING PRODUCTS PRIVATE LIMITED	Director	1/9/1994	1/9/1994	-	Active	NO
3	U25199WB1996PTC081041	SRISTHI INDUSTRIES PRIVATE LIMITED	Director	23/08/1996	23/08/1996	27/06/2009	Active	NO
4	U51109WB1993PTC060993	CLIMAX FINCAP PRIVATE LIMITED	Director	23/10/1998	23/10/1998	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Ajay Menon
Designation :	AGM Marketing

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Sushila Devi Mundhra	82000
Khemraj Mundhra	114000
Pramod Mundhra	127400
Pankaj Mundhra	163500
Khemraj Mundhra and Sons (HUF)	21000
Divya Lakhotia	100
Ira Ladda	100
Shruti Mundhra	50000
Nupur Mundhra	56000
Climax Vyapaar (Private) Limited, India	231000
Sristhi Industries (Private) Limited, India	387000
Climax Fincap (Private) Limited, India	261000
Glamour Jewels (Private) Limited, India	331000
Climax Waterproofing Products Private Limited, India	341000
Aarya Mundhra	136900
Pankaj Mundhra (HUF)	10000
Pramod Mundhra (HUF)	10000
Total	2322000

As on 30.11.2013

Names of Allottee	No. of Shares
Aarya Mundhra (Student)	26000
Pankaj Mundhran (Business)	9050
Climax Waterproofing Products Private Limited, India (Business)	20000
Glamour Jewels (Private) Limited, India (Business)	9800
Nupur Mundhra (Business)	20000
Climax Fincap (Private) Limited, India (Business)	29900
TOTAL	114750

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Bodies corporate	66.80
Directors or relatives of Directors	33.20
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Trader of HDPE Pipes and LDPE Films, Sheets, etc.
Products :	· LDPE Films / LDPE Sheets / LDPE Geomembrane / LDPE Liners · HDPE Film / HDPE Sheet / HDPE Geomembrane / HDPE Liner · HDPE Pipes and Fittings · UV Stablized Films · Cap Covers / Cover Tops / Tarpaulins · Geosynthetics · Geotextiles · Geomembranes · Geogrid · Geonet · Geocomposites · Geosynthetic Clay Liner (GCL)
Raw Imports :
Products :	Raw Material
Countries :	· Saudi Arabia · Malaysia
Terms :
Selling :	Cheque
Purchasing :	Cheque

GENERAL INFORMATION

Suppliers :

· Qatar Petrochemical Company 

Customers :

Government

· Reliance Industries Limited

No. of Employees :

24 (Approximately)

Bankers :

· Bank of Baroda, Makarpura Industrial Estate Branch, GIDC Makarpura, Vadodara – 390 010 , Gujarat, India

· Union Bank of India, Ezra Street Branch, Kolkata, West Bengal, India

Facilities :

SECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
Term loan from Bank	1.453	0.727
SHORT TERM BORROWING
Cash credit from a Bank	102.634	94.271
	104.087	94.998

Banking Relations :	--
Auditors :
Name :	K L Singhee and Company Chartered Accountants
Address :	15, India Exchange Place, First Floor, Kolkata – 700001, West Bengal, India
PAN.:	AACFK6449H
Sister Concern:	· Climax Fincap Private Limited · Climax Vyapar, Makarpura, Vadodara, Gujarat

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
9000000	Equity Shares	Rs.10/- each	Rs.90.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2322000	Equity Shares	Rs.10/- each	Rs.23.220 Millions

After on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
9000000	Equity Shares	Rs.10/- each	Rs.90.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2436750	Equity Shares	Rs.10/- each	Rs.24.368 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	23.220	23.220	23.220
(b) Reserves & Surplus	217.007	220.854	223.673
(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)	240.227	244.074	246.893
(3) Non-Current Liabilities
(a) long-term borrowings	103.853	73.036	79.697
(b) Deferred tax liabilities (Net)	0.788	0.350	0.125
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	2.033	2.160	2.098
Total Non-current Liabilities (3)	106.674	75.546	81.920
(4) Current Liabilities
(a) Short term borrowings	102.634	94.271	115.383
(b) Trade payables	50.539	26.602	56.520
(c) Other current liabilities	8.514	7.015	5.257
(d) Short-term provisions	12.800	8.400	3.800
Total Current Liabilities (4)	174.487	136.288	180.960
TOTAL	521.388	455.908	509.773
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	177.118	172.532	178.087
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	2.825
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	35.613	35.613	35.613
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	38.492	40.053	36.447
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	251.223	248.198	252.972
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	107.975	89.200	117.929
(c) Trade receivables	95.781	78.177	87.853
(d) Cash and cash equivalents	35.516	23.532	38.727
(e) Short-term loans and advances	28.989	15.279	11.148
(f) Other current assets	1.904	1.522	1.144
Total Current Assets	270.165	207.710	256.801
TOTAL	521.388	455.908	509.773

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Gross Income	597.661	540.420	470.885
		Other Income
		TOTAL	NA	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		16.193	14.955	14.525
Less/ Add	DEPRECIATION/ AMORTISATION		2.515	2.183	1.854
	PROFIT BEFORE TAX		13.678	12.772	12.671
Less	TAX		6.758	4.825	3.928
	PROFIT AFTER TAX		6.920	7.947	8.743
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		50.528	42.581	33.816
	BALANCE CARRIED TO THE B/S		57.448	50.528	42.581
	Earnings Per Share (Rs.)		0.30	0.34	0.38

Particulars	31.03.2014	31.03.2014	31.03.2012
Sales Turnover (Approximately)	640.000	600.000	580.000

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Return on Total Assets (PBT/Total Assets}	(%)	2.82	3.04	2.69
Return on Investment (ROI) (PBT/Networth)		0.06	0.05	0.05
Debt Equity Ratio (Total Debt /Networth)		0.86	0.69	0.79
Current Ratio (Current Asset/Current Liability)		1.55	1.52	1.42

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	23.220	23.220	23.220
Reserves & Surplus	223.673	220.854	217.007
Net worth	246.893	244.074	240.227
long-term borrowings	79.697	73.036	103.853
Short term borrowings	115.383	94.271	102.634
Total borrowings	195.080	167.307	206.487
Debt/Equity ratio	0.790	0.685	0.860

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)
Gross Income	470.885	540.420	597.661
		14.767	10.592

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Gross Income	470.885	540.420	597.661
Profit	8.743	7.947	6.920
	1.86%	1.47%	1.16%

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	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	Yes
34]	External Agency Rating, if available	Yes

UNSECURED LOAN

Rs. Millions

Particular	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
Loans and advances from related parties
From Directors	4.073	6.253
From Bodies Corporate	16.014	13.142
From Shareholders	11.732	11.525
Other loans and advances
From Bodies Corporate	70.581	41.389
Total	102.400	72.309

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80032334	27/04/2005	2,400,000.00	BANK OFBARODA	GIDC MAKARPURA INDUSTRIAL ESTATE BRANCH, BARODA- 390001, GUJARAT, INDIA	-
2	80032333	11/09/2013 *	238,000,000.00	BANK OF BARODA	INDUSTRIAL ESTATE BRANCH, G I D C MAKARPURA, VADODARA-390010, GUJARAT , INDIA	B88207618
3	80032331	14/09/2010 *	180,500,000.00	BANK OF BARODA	INDUSTRIAL ESTATE BRANCH, G I D C MAKARPURA, VADODARA-390010, GUJARAT , INDIA	A94627924

* Date of charge modification

FIXED ASSETS:

• Leasehold Land
• Building
• Plant and Machinery
• Electrical Installation
• Furniture, Fixtures and Office Equipments
• Water Supply Installation
• Vehicles
• Refrigerators and Air Conditioners
• Laboratory Equipments
• Weighing Scale
• Telecom Equipments
• Computers

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. 60.10
UK Pound	1	Rs. 102.04
Euro	1	Rs. 80.73

INFORMATION DETAILS

Information Gathered by :	DIV
Analysis Done by :	GYT
Report Prepared by :	ASH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	5
--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	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		31

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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