MIRA INFORM REPORT

Report Date :

29.09.2014

IDENTIFICATION DETAILS

Name :	RAJHANS ALLOYS PRIVATE LIMITED
Registered Office :	3, Shiley Industrial Estate, S. V. Road, Goregaon (West), Mumbai – 400062, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	28.10.2009
Com. Reg. No.:	11-255290 [New] 04-058453 [Old]
Capital Investment / Paid-up Capital :	Rs.50.000 Millions
CIN No.: [Company Identification No.]	U27109MH2009PTC255290 [New] U27109GJ2009PTC058453 [Old]
TAN No.: [Tax Deduction & Collection Account No.]	RKTR02705D/ RKTR02558D
PAN No.: [Permanent Account No.]	AAECR5124M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Trader of brass alloy products, including brass rods, extruded tubes, rods, pipes and coils.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 58000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears some losses recorded by the company. The external borrowing seems to be huge. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings 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 – 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	CRISIL
Rating	Long Term Rating = B-
Rating Explanation	Risk prone credit quality and high risk of credit.
Date	December 02, 2013

Rating Agency Name	CRISIL
Rating	Short Term Rating = A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	December 02, 2013

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 :	Mr. Nimesh Mehta
Designation :	Finance Manager
Contact No.:	91-288-2560111
Date :	26.09.2014

LOCATIONS

Registered Office :	3, Shiley Industrial Estate, S. V. Road, Goregaon (West), Mumbai – 400062, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	info@jainandmaharishi.com accounts@rajhans.com imports@rajhans.com info@rajhans.com
Website:	http://www.rajhans.com
Factory :	Plot No. 3985, GIDC, Phase III, Village Dared, Jamnagar – 361004, Gujarat, India
Tel. No.:	91-288-2560111
Fax No.:	91-288-2560114
Location :	Owned

DIRECTORS

AS ON: 28.09.2013

Name :

Mr. Ramniklal Keshavji Shah

Designation :

Director

Address :

“Sonil”, Summair Club Road, Jamnagar - 361005, Gujarat, India

Date of Birth/Age :

10.02.1942

Date of Appointment :

28.10.2009

DIN No.:

00004242

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	U51909GJ1986PTC008619	SONIL MARKETING AND SERVICES PRIVATE LIMITED	Director	11/04/1986	11/04/1986	-	Active	NO
2	U21010MH1980PTC022509	VAIBHAV PAPER BOARDS PRIVATE LIMITED	Director	21/06/2011	03/08/1995	-	Active	NO
3	U28910MH1987PTC043138	RAJHANS METALS PVT LTD	Director	01/10/1998	01/10/1998	17/10/2008	Active	NO
4	U92120GJ1988PTC010376	SONIL VALVES PRIVATE LIMITED	Director	01/11/2002	01/11/2002	-	Active	NO
5	U34300GJ2004PTC045160	SONIL VENTILFABRIK PRIVATE LIMITED	Director	16/12/2004	16/12/2004	-	Active	NO
6	U27109MH2009PTC255290	RAJHANS ALLOYS PRIVATE LIMITED	Director	28/10/2009	28/10/2009	-	Active	NO

Name :

Mr. Milan Chandulal Dodhia

Designation :

Director

Address :

Milan, Opposite Jolly Bunglow, Summair Club Road, Jamnagar - 361005, Gujarat, India

Date of Birth/Age :

12.08.1961

Date of Appointment :

28.10.2009

DIN No.:

00158730

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	U28910MH1987PTC043138	RAJHANS METALS PVT LTD	Managing director	03/04/2007	03/04/2007	-	Active	NO
2	U27109MH2009PTC255290	RAJHANS ALLOYS PRIVATE LIMITED	Director	28/10/2009	28/10/2009	-	Active	NO

Name :

Mr. Kailashchandra Laxminarayan Mandawewala

Designation :

Director

Address :

Flat No. 402, Ashutosh Apartments, Nirban Road, Opposite Guruduttatreya Temple, Jamnagar - 361008, Gujarat, India

Date of Birth/Age :

04.08.1943

Date of Appointment :

28.10.2009

DIN No.:

00660684

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	U51900MH1982PTC027533	ARUN IMPEX PRIVATE LIMITED	Director	01/04/1984	01/04/1984	-	Active	NO
2	U17110MH1990PTC057606	AYUSH SYNTHETICS PRIVATE LIMITED	Director	15/01/1993	15/01/1993	-	Active	NO
3	U35115GJ1991PTC015792	SUVIDHA MARINE PVT LTD	Director	24/07/1993	24/07/1993	-	Active	NO
4	U28910MH1987PTC043138	RAJHANS METALS PVT LTD	Director	01/10/1998	01/10/1998	-	Active	NO
5	U27109MH2009PTC255290	RAJHANS ALLOYS PRIVATE LIMITED	Director	28/10/2009	28/10/2009	-	Active	NO

Name :

Mr. Nirav Jayendra Dodhia

Designation :

Director

Address :

Jasmine, Opposite Joly Bunglow, Jamnagar - 361005, Gujarat, India

Date of Birth/Age :

06.06.1982

Date of Appointment :

01.08.2011

DIN No.:

02781912

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	U27109GJ2009PTC058423	INAC BRASS PRIVATE LIMITED	Director	23/10/2009	23/10/2009	-	Active	NO
2	U27109MH2009PTC255290	RAJHANS ALLOYS PRIVATE LIMITED	Director	01/08/2011	01/08/2011	-	Active	NO

KEY EXECUTIVE

Name :	Mr. Nimesh Mehta
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON: 28.09.2013

SHAREHOLDERS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

AS ON: 28.09.2013

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	12.50
Directors or relatives of directors	87.50
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Trader of brass alloy products, including brass rods, extruded tubes, rods, pipes and coils.

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

State Bank of India, Near Digvijay Plot Police Station Gate, Besides Oswal Hospital, Digvijay Plot, Jamnagar - 361005, Gujarat, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Rupee term loans from banks [It is also secured by personal guarantee given by some of the directors of the company and corporate guarantee given by Rajhans Metals Private Limited]	57.925	70.399
SHORT TERM BORROWINGS
Foreign currency term loans from banks	56.979	51.157
Other external commercial borrowings	11.806	12.914
Working capital loans from banks [It is also secured by personal guarantee given by some of the directors of the company and corporate guarantee given by Rajhans Metals Private Limited]	100.983	105.962
Total	227.693	240.432

NOTES:

LONG TERM BORROWINGS

Term Loan from SBI is primarily secured by hypothecation of plant and machineries and equitable mortgage of factory building and collaterally secured by equitable mortgage of plot no. 3985 at GIDC Phase III at Dared, Jamnagar standing in the name of the company and bank's own term deposit receipt in the name of the company.

SHORT TERM BORROWINGS

(The short term borrowing from State Bank of India is secured against hypothecation of stock of Brass Scrap, Work-in-Progress, Finished Goods, Book debts(value as per stock statement submitted from time to time) and collaterally secured by equitable mortgage of plot no. 3985 at GIDC Phase III at Dared, Jamnagar standing in the name of the company and bank's own term deposit receipt in the name of the company.

Banking Relations :	--
Auditors :
Name :	Maharshi and Company Chartered Accountant
Address :	“Aparna”, Behind Jeevandeep Hospitals, Off Indira Road, Limda Lane, Jamnagar - 361001, Gujarat, India
Tel. No.:	91-288-2665023/ 2665024/ 2662637/ 2542491/ 2542492
Fax No.:	91-288-2661612
E-Mail :	info@jainandmaharishi.com
PAN No.:	AAPFM6568E
Relatives of Key Managerial Persons :	· Rajhans Metals Private Limited · Rajlaxmi Metals Private Limited
Enterprises owned or significantly influenced by key personal management or their relatives :	· Rajhans Metals Private Limited · INAC Brass Private Limited · Rajlaxmi Metals Private Limited · Rajhans Enterprise

CAPITAL STRUCTURE

AS ON: 28.09.2013

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
5000000	Equity Shares	Rs.10/- each	Rs.50.000 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	50.000	46.933	0.100
(b) Reserves & Surplus	(35.638)	(25.070)	(0.606)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	40.177
Total Shareholders’ Funds (1) + (2)	14.362	21.863	39.671
(3) Non-Current Liabilities
(a) long-term borrowings	389.070	173.780	143.915
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	389.070	173.780	143.915
(4) Current Liabilities
(a) Short term borrowings	169.768	324.415	0.000
(b) Trade payables	43.522	26.841	3.218
(c) Other current liabilities	17.872	16.240	0.061
(d) Short-term provisions	1.826	1.677	10.750
Total Current Liabilities (4)	232.988	369.173	14.029
TOTAL	636.420	564.816	197.615
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	159.448	172.801	17.891
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	3.312	7.038	154.946
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	5.000
(c) Deferred tax assets (net)	17.116	12.041	0.000
(d) Long-term Loan and Advances	0.537	4.055	5.151
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	180.413	195.935	182.988
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	204.893	197.419	0.438
(c) Trade receivables	203.648	110.912	0.000
(d) Cash and cash equivalents	11.122	7.266	2.086
(e) Short-term loans and advances	33.247	48.466	12.051
(f) Other current assets	3.097	4.818	0.052
Total Current Assets	456.007	368.881	14.627
TOTAL	636.420	564.816	197.615

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	1221.694	632.273	0.000
		Other Income	5.485	0.343	0.000
		TOTAL (A)	1227.179	632.616	0.000
Less	EXPENSES
		Purchase of Traded goods	120.252	67.316
		Cost of materials consumed	889.688	565.663
		Changes in inventories of finished goods work-in-progress	25.931	(102.305)
		Employee benefits expense	8.229	5.407
		Other expenses	107.801	65.865
		TOTAL (B)	1151.901	601.946	0.000
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		75.278	30.670
Less	FINANCIAL EXPENSES (D)		65.886	43.102
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.392	(12.432)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		25.035	24.679
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(15.643)	(37.111)
Less	TAX (H)		(5.075)	(12.041)
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(10.568)	(25.070)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	368.993	156.394	0.000
	TOTAL EARNINGS		368.993	156.394	0.000
	IMPORTS
		Capital Goods	NA	0.000	19.596
	TOTAL IMPORTS		NA	0.000	19.596
	Earnings Per Share (Rs.)		2.11	5.34	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(0.86)	(3.96)	0.00
Net Profit Margin (PBT/Sales)	(%)	(1.28)	(5.87)	0.00
Return on Total Assets (PBT/Total Assets}	(%)	(2.54)	(6.80)	0.00
Return on Investment (ROI) (PBT/Networth)		(1.09)	(1.70)	0.00
Debt Equity Ratio (Total Debt/Networth)		38.91	22.79	3.63
Current Ratio (Current Asset/Current Liability)		1.96	1.00	1.04

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	0.100	46.933	50.000
Reserves & Surplus	(0.606)	(25.070)	(35.638)
Share Application money pending allotment	40.177	0.000	0.000
Net worth	39.671	21.863	14.362
long-term borrowings	143.915	173.780	389.070
Short term borrowings	0.000	324.415	169.768
Total borrowings	143.915	498.195	558.838
Debt/Equity ratio	3.628	22.787	38.911

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)
Revenue from operations	0.000	632.273	1221.694
			93.223

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from operations	0.000	632.273	1221.694
Profit/(Loss) After Tax	0.000	(25.070)	(10.568)
	0.00%	(3.97%)	(0.87%)

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	--
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

VIEW INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10273756	21/05/2014 *	270,000,000.00	STATE BANK OF INDIA	NEAR DIGVIJAY PLOT POLICE STATION GATE, BESIDES O  SWAL HOSPITAL, DIGVIJAY PLOT, JAMNAGAR, GUJARAT -  361005, INDIA	C07005176
2	10273755	21/05/2014 *	270,000,000.00	STATE BANK OF INDIA	NEAR DIGVIJAY PLOT POLICE STATION GATE, BESIDES O  SWAL HOSPITAL, DIGVIJAY PLOT, JAMNAGAR, GUJARAT -  361005, INDIA	C07000375

* Date of charge modification

UNSECURED LOAN

PARTICULAR	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Intercorporate borrowings	193.800	86.056
Loans and advances from directors	32.986	9.185
Loans and advances from others	104.359	8.140
SHORT TERM BORROWINGS
Intercorporate borrowings	0.000	154.382
Total	331.145	257.763
NOTES: Loans and advances from related parties are unsecured, As sanctioned by the lender parties loans are not repayable within period of 12 months from 31st March, 2013, The interest rate of Inter Corporate Deposits are 12% p.a.

NOTE:

The company changed its Registered office from 21/3, Shankar Tekri, Udyognagar, Jamnagar - 361004, Gujarat, India to Plot No. 3985, GIDC, Phase III, Village Dared, Jamnagar – 361004, Gujarat, India w.e.f. 08.03.2011.

The registered office has again shifted from Plot No. 3985, GIDC, Phase III, Village Dared, Jamnagar – 361004, Gujarat, India to the present address.

FIXED ASSETS

· Land

· Buildings

· Plant and equipment

· Factory equipments

· Vehicles

· Office equipment

· Computer equipments

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.61.57
UK Pound	1	Rs.100.42
Euro	1	Rs.78.45

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	SUB
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
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	3
--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		27

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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