MIRA INFORM REPORT

Report Date :

10.11.2014

IDENTIFICATION DETAILS

Name :	ZCL CHEMICALS LIMITED (w.e.f. 06.04.2009)
Formerly Known As :	ZANDU CHEMICALS LIMITED
Registered Office :	A-806-807, 8^th Floor, 215 Atrium, Chakala, Andheri-Kurla Road, Andheri (East), Mumbai – 400 059, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	13.03.1991
Com. Reg. No.:	11-060748
Capital Investment / Paid-up Capital :	Rs. 75.000 Millions
CIN No.: [Company Identification No.]	U24100MH1991PLC060748
IEC No.:	Not available
TAN No.: [Tax Deduction & Collection Account No.]	MUMZ01048F
PAN No.: [Permanent Account No.]	AAACZ0293P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Pharmaceutical Intermediates, Contract Chemical, Active Pharma Ingredients, Chemical Research and Development.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 1600000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having fine track record. The rating reflects company’s healthy financial risk profile marked by decent liquidity position and sound profitability levels of the company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered good for normal 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 – 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

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term Bank Facilities = A-
Rating Explanation	Adequate degree of safety and low Credit risk
Date	September 05, 2014

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A2+
Rating Explanation	Strong degree of safety and low credit risk
Date	September 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 DENIED

Management non Co-operative (91-2646-619472 / 22-61539999 / 9914)

LOCATIONS

Registered Office :	A-806-807, 8^th Floor, 215 Atrium, Chakala, Andheri-Kurla Road, Andheri (East), Mumbai – 400059, Maharashtra, India
Tel. No.:	91-22-61539999
Fax No.:	91-22-61539997/ 98
E-Mail :	enquiries@zclchemicals.com purchase@zclchemicals.com hrm@zclchemicals.com secretary@zclchemicals.com usjeth@rediffmail.com
Website :	http://www.zclchemicals.com
Factory :	Plot No. 3102/B, G.I.D.C., Ankleshwar – 393 002, Gujarat, India
Tel. No.:	91-2646-220097/ 220039/ 324466
Fax No.:	91-2646-250329

DIRECTORS

AS ON 19.07.2014

Name :

Mr. Ajay Krishnakant Parikh

Designation :

Managing Director

Address :

20/301, Gurukrupa, Vithal Nagar, CHSLimited, 11^th road, JVPD Scheme, Vile Parle (W), Mumbai – 400049, Maharashtra, India

Date of Birth/Age :

24.06.1957

Date of Appointment :

01.01.2014

DIN No. :

00239715

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	U65990MH1989PTC054694	TEJAL MERCHANTILE PRIVATE LIMITED	Director	15/02/1990	15/02/1990	-	Active	NO
2	U24100MH1991PLC060748	ZCL Chemicals Limited	Managing director	01/01/2014	13/03/1991	-	Active	NO
3	U24231MH1993PLC073342	VENUS DRUGS AND COSMETICS LIMITED	Director	28/09/2001	28/09/2001	-	Active	NO
4	U24230MH1999PTC117983	LONZA INDIA PRIVATE LIMITED	Additional director	19/11/2008	19/11/2008	30/09/2009	Active	NO
5	U74300MH1990PTC054901	NOVA ADVERTISING PALACE PRIVATE LIMITED	Director	02/03/2009	02/03/2009	12/01/2011	Strike off	NO
6	U65990MH1989PTC050535	LEOPARD INVESTMENTS PVT LTD	Director	02/03/2009	02/03/2009	12/01/2011	Active	NO
7	U21039MH1985PTC035199	VAIPA PHARMACEUTICALS PVT LTD	Director	02/03/2009	02/03/2009	12/01/2011	Active	NO
8	U51900MH1992PLC065677	LEOPARD EXPORTS LIMITED	Director	02/03/2009	02/03/2009	12/01/2011	Strike off	NO

Name :

Mr. Dhiren Shevantilal Shah

Designation :

Director Appointed in casual vacancy

Address :

Cumbala Hill Post Office, Gamdevi Polish Station, Mumbai – 400 026, Maharashtra, India

Date of Birth/Age :

29.04.1956

Date of Appointment :

05.09.2011

DIN No. :

01149436

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	U45200MH1991PTC060320	MONEYBEE COMMODITIES PRIVATE LIMITED	Managing director	15/02/1991	15/02/1991	-	Active	NO
2	U65590MH1991PTC060326	MONEYBEE SECURITIES PRIVATE LIMITED	Managing director	15/02/1991	15/02/1991	-	Active	NO
3	U67120MH1995PTC086171	AARAYAA ADVISORY SERVICES PRIVATE LIMITED	Director	08/03/1995	08/03/1995	26/12/2013	Active	NO
4	U70102MH2007PTC170019	Moneybee Realty Private Limited	Managing director	17/04/2007	17/04/2007	-	Active	NO
5	L25199KL1993PLC007018	RUBFILA INTERNATIONAL LTD	Director	23/09/2009	28/01/2009	-	Active	NO
6	U24134MH1971PTC015206	COMMANDER WATERTECH PRIVATE LIMITED	Director	29/09/2009	29/09/2009	-	Active	NO
7	U74999MH2010PTC209834	MONEYBEE ADVISORS PRIVATE LIMITED	Director	04/11/2010	04/11/2010	-	Active	NO
8	U36939TZ2011PLC016911	TEE VENTURES (INDIA) LIMITED	Director	29/03/2011	29/03/2011	-	Active	NO
9	U24100MH1991PLC060748	ZCL Chemicals Limited	Director appointed in casual vacancy	05/09/2011	05/09/2011	-	Active	NO
10	AAA-7928	MONEYBEE CAPITAL ADVISORS LLP	Designated Partner	08/02/2012	08/02/2012	-	Active	NO

Name :

Mr. Nihar Ajay Parikh

Designation :

Whole-time Director

Address :

20/301, Gurukrupa, Vithal Nagar, CHS Limited, 11^th Road, JVPD Scheme, Vile Parle (West), Mumbai – 400 049, Maharashtra, India

Date of Birth/Age :

13.11.1985

Date of Appointment :

01.09.2010

DIN No. :

02475787

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 19.07.2014

Names of Shareholders	No. of Shares
Vaidya Jugatram Haresh	1
Parikh Krishnakant Ajay	478997
Parikh Ajay Minoti	1000
Parikh Ajay Nihar	1001
Parikh Ajay Anuja	1001
Soraya Investment Trading Private Limited, India	6000
Tejal Mercantile Private Limited, India	7000000
Ajay K Parikh (HUF)	12000
Total	7500000

As on 19.07.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	93.33
Directors or relatives of Directors	6.67
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Pharmaceutical Intermediates, Contract Chemical, Active Pharma Ingredients, Chemical Research and Development.
Products :	Not Divulged
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

PRODUCTION STATUS - Not Available

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

No. of Employees :

Information declined by the management.

Bankers :

• Citibank N. A Trent House, 2nd Floor, G Block, Plot No. C 60, Bandra Kurla Complex, Bandra (E), Mumbai, Maharashtra – 400051, India

• State Bank of India Backbay Reclamation Branch, Raheja Chambers, Free Press Journal Road, Nariman Point, Mumbai, Maharashtra - 400021, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loans from Banks	21.274	30.445
Other loans and advances	0.598	1.433
SHORT TERM BORROWINGS	0	0
Other loans and advances	210.836	153.463
Total	232.708	185.341

Banking Relations :	--
Auditors :
Name :	S. R. Batliboi and company. LLP Chartered Accountants
Address :	14th floor, the Ruby 29, Senapati Bapat Marg, Dadar (west), Mumbai, Maharashtra, India
PAN No.:	ACHFS9180N
Holding company:	Tejal merchantile Private limited
Associate:	Nagase India private Limited

CAPITAL STRUCTURE

As on 19.07.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs.10/- each	Rs.110.000 Millions
4000000	Preference Shares	Rs.10/- each	Rs.40.000 Millions
	Total		Rs. 150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs.10/- each	Rs. 75.000 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	75.000	100.000	140.000
(b) Reserves & Surplus	491.137	298.106	176.396
(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)	566.137	398.106	316.396
(3) Non-Current Liabilities
(a) long-term borrowings	21.872	31.878	124.066
(b) Deferred tax liabilities (Net)	0.000	12.395	38.001
(c) Other long term liabilities	1.720	1.625	0.756
(d) long-term provisions	4.528	4.712	14.336
Total Non-current Liabilities (3)	28.120	50.610	177.159
(4) Current Liabilities
(a) Short term borrowings	210.836	153.463	151.307
(b) Trade payables	335.158	539.108	423.317
(c) Other current liabilities	146.279	163.793	54.497
(d) Short-term provisions	12.656	3.684	23.515
Total Current Liabilities (4)	704.929	860.048	652.636
TOTAL	1299.186	1308.764	1146.191
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	409.652	426.371	388.492
(ii) Intangible Assets	3.062	4.636	0.000
(iii) Capital work-in-progress	20.853	12.394	18.602
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.440	0.440	0.440
(c) Deferred tax assets (net)	15.030	0.000	0.000
(d) Long-term Loan and Advances	63.098	41.226	5.883
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	512.135	485.067	413.417
(2) Current assets
(a) Current investments	70.440	98.558	34.195
(b) Inventories	234.041	370.793	173.065
(c) Trade receivables	422.208	271.601	447.989
(d) Cash and cash equivalents	5.008	1.751	5.746
(e) Short-term loans and advances	37.466	78.911	22.874
(f) Other current assets	17.888	2.083	48.905
Total Current Assets	787.051	823.697	732.774
TOTAL	1299.186	1308.764	1146.191

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	1857.868	1766.954	1305.696
	Other Income	27.549	8.881	2.895
	TOTAL (A)	1885.417	1775.835	1308.591
Less	EXPENSES
	Cost of Materials Consumed	1012.659	1330.602	909.249
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	65.533	(149.615)	(57.733)
	Employees benefits expense	110.207	84.823	59.041
	Other expenses	285.619	210.890	190.654
	Prior period items	(5.174)	0.000	0.000
	Exceptional Items	8.124	87.300	0.000
	Extraordinary items	(5.111)	0.000	(20.578)
	TOTAL (B)	1471.857	1564.000	1080.633
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	413.560	211.835	227.958
Less	FINANCIAL EXPENSES (D)	12.978	26.832	46.787
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	400.582	185.003	181.171
Less/ Add	DEPRECIATION/ AMORTISATION (F)	46.983	42.524	37.752
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	353.599	142.479	143.419
Less	TAX (H)	86.268	19.673	55.067
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	267.331	122.806	88.352
	Earnings / (Loss) Per Share (Rs.)	27.10	12.28	8.84

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	14.39	6.95	6.77
Operating Profit Margin (PBDIT/Sales)	(%)	22.26	11.99	17.46
Return on Total Assets (PBT/Total Assets}	(%)	28.00	10.99	12.72
Return on Investment (ROI) (PBT/Networth)		0.62	0.36	0.45
Debt Equity Ratio (Total Debt /Networth)		0.41	0.47	0.87
Current Ratio (Current Asset/Current Liability)		1.12	0.96	1.12

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	140.000	100.000	75.000
Reserves & Surplus	176.396	298.106	491.137
Net worth	316.396	398.106	566.137
long-term borrowings	124.066	31.878	21.872
Short term borrowings	151.307	153.463	210.836
Total borrowings	275.373	185.341	232.708
Debt/Equity ratio	0.870	0.466	0.411

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	1305.696	1766.954	1857.868
		35.327	5.145

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	1305.696	1766.954	1857.868
Profit	88.352	122.806	267.331
	6.77%	6.95%	14.39%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	------------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	Yes
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	Yes

Note:

The Registered office of the company has been shifted 806/807, 8^th Floor, 215, Atrium, Chakala, Andheri-Kurla Road, Andheri (East), Mumbai – 400069, Maharashtra, India to the present address w.e.f. 07.08.2009

OUTLOOK

Going forward, introduction of new products in API segment by the Company is expected to be a strong driver of growth in the API with about six launches in 2014-15 and efforts shall continue to increase the penetration in the existing baseline business. During the year, company has been accredited with the Korean FDA certification which will enable the company to penetrate in the Korean market. The focus on API is to reduce the dependency on the pure CRAM products & to have a balanced product portfolio. The Company has seven DMFs filed in the U.S., Europe and Japan. While ZCL has a growing presence in the US and several countries of Europe for over several years, a determined effort is being made to make inroads into developing and emerging countries like Brazil, Maxico, Turkey , S Korea, Iran, Japan,. Focused efforts are also being made to grow to expand in the regulated markets like North America and Europe and as a result the Company has been able to achieve above average compounded growth in last few years.

VIEW INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10396944	26/04/2013 *	50,000,000.00	CITIBANK N. A.	TRENT HOUSE, 2ND FLOOR, G BLOCK, PLOT NO.C60, BAN  DRA KURLA COMPLEX, BANDRA (E), MUMBAI, Maharashtra  - 400051, INDIA	B75615682
2	10390092	26/04/2013 *	150,000,000.00	CITIBANK N. A.	TRENT HOUSE, 2ND FLOOR, G BLOCK, PLOT NO.C60, BAN  DRA KURLA COMPLEX, BANDRA (E), MUMBAI, Maharashtra  - 400051, INDIA	B75615526
3	10300264	26/04/2013 *	441,100,000.00	STATE BANK OF INDIA	BACKBAY RECLAMATION BRANCH, RAHEJA CHAMBERS, FRE  E PRESS JOURNAL ROAD, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA	B76047869
4	10263705	26/04/2013 *	241,100,000.00	STATE BANK OF INDIA	BACKBAY RECLAMATION BRANCH, RAHEJA CHAMBERS, FRE  E PRESS JOURNAL ROAD, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA	B76047257

* Date of charge modification

FIXED ASSETS

• Land
• Building
• Plant and equipment
• Furniture and fixtures
• Vehicles
• Office equipment
• Computer software

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. 61.52
UK Pound	1	Rs. 97.39
Euro	1	Rs. 76.15

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	KAR
Report Prepared by :	TRU

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION		0
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		54

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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