MIRA INFORM REPORT

Report No. :	315930
Report Date :	04.04.2015

IDENTIFICATION DETAILS

Name :	CROSSWORD BOOKSTORES LIMITED
Formerly Known As :	PROFOUND READER'S CHOICE TRADING (INDIA) LIMITED
Registered Office :	Eureka Towers, 9^th Floor, B Wing, Mindspace, Link Road, Malad (West), Mumbai – 400064, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	03.11.1999
Com. Reg. No.:	11-122528
Capital Investment / Paid-up Capital :	Rs. 195.625 Million
CIN No.: [Company Identification No.]	U52396MH1999PLC122528
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	MUMC10072G
PAN No.: [Permanent Account No.]	AABCP7596G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	The subject is engaged in the business of retail trade through own stores and franchisee store facilities.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 500000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has incurred a loss from its operations. However, trade relations are reported as 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

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

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-cooperative (Tel No.: 91-22-26564000)

LOCATIONS

Registered Office :	Eureka Towers, 9^th Floor, B Wing, Mindspace, Link Road, Malad (West), Mumbai – 400064, Maharashtra, India
Tel. No.:	91-22-42497000
Fax No.:	91-22-28808877
E-Mail :	anita.shetty@shoppersstop.com

DIRECTORS

AS ON 24.07.2014

Name :

Govind Shridhar Shrikhande

Designation :

Chairman

Address :

1801, Brooke Villa, Mughul Lane, Matunga (West), Mumbai – 400016, Maharashtra, India

Date of Birth/Age :

07.09.1960

Date of Appointment :

30.07.2012

DIN No.:

00029419

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	U51900MH1995PLC095115	UPASNA TRADING LIMITED	Director	30/10/2002	30/10/2002	-	Active	NO
2	U72900MH2000PLC124178	SHOPPERS' STOP.COM (INDIA) LIMITED	Director	30/10/2002	30/10/2002	-	Active	NO
3	U74999MH2000PLC124945	SHOPPER'S STOP SERVICES (INDIA) LIMITED	Director	30/10/2002	30/10/2002	-	Active	NO
4	L51900MH1997PLC108798	Shoppers Stop Limited	Managing director	29/07/2013	29/07/2006	-	Active	NO
5	U52510MH2004PLC146577	HYPERCITY RETAIL (INDIA) LIMITED	Director	25/07/2011	26/10/2010	-	Active	NO
6	U85191MH2011NPL222989	Retailers Association's Skill Council of India	Director	13/10/2011	13/10/2011	-	Active	NO
7	U52396MH1999PLC122528	CROSSWORD BOOKSTORES LIMITED	Director	30/07/2012	05/03/2012	-	Active	NO

Name :

Yasin Ebrahim Virani

Designation :

Director

Address :

503 Charysals, 9^th Gulmohar Cross Road Extension, Opposite Arya Vidya Mandir School, Juhu Scheme, Mumbai – 400049, Maharashtra, India

Date of Birth/Age :

20.10.1956

Date of Appointment :

28.03.2006

DIN No.:

00291989

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	U17100MH1991PLC060174	ROMANO TEXTILES LIMITED	Director	07/02/1991	07/02/1991	16/04/2007	Strike off	NO
2	U51900MH1995PLC095115	UPASNA TRADING LIMITED	Director	30/10/2002	30/10/2002	-	Active	NO
3	U72900MH2000PLC124178	SHOPPERS' STOP.COM (INDIA) LIMITED	Director	30/10/2002	30/10/2002	-	Active	NO
4	U74999MH2000PLC124945	SHOPPER'S STOP SERVICES (INDIA) LIMITED	Director	30/10/2002	30/10/2002	-	Active	NO
5	U45200TG2003PTC041083	K.RAHEJA IT PARK (HYDERABAD) PRIVATE LIMITED	Director	15/10/2003	15/10/2003	-	Active	NO
6	U07010KA2004PTC033984	G CORP PROJECTS PRIVATE LIMITED	Director	29/09/2007	04/06/2004	26/03/2014	Active	NO
7	U45200MH2005PTC152224	G.CORP NEERAV DEVELOPERS PRIVATE LIMITED	Director	28/03/2005	28/03/2005	26/03/2014	Active	NO
8	U52396MH1999PLC122528	CROSSWORD BOOKSTORES LIMITED	Director	28/03/2006	28/03/2006	-	Active	NO
9	U70102TG2006PLC050883	SUNDEW PROPERTIES LIMITED	Director	26/07/2007	12/03/2007	-	Active	NO
10	U45200TG2006PLC050930	INTIME PROPERTIES LIMITED	Director	26/07/2007	12/03/2007	-	Active	NO
11	U51432MH2000PTC130106	HORNBIL TRADING COMPANY PRIVATE LIMITED	Director	29/09/2007	04/04/2007	-	Active	NO
12	U60232KA2005PTC054207	MAGNA WAREHOUSING & DISTRIBUTION PRIVATE LIMITED	Director	14/08/2007	04/04/2007	18/01/2012	Active	NO
13	U45200MH2003PTC143609	NEOGEN PROPERTIES PRIVATE LIMITED	Director	28/09/2007	04/04/2007	10/02/2014	Active	NO
14	U74999MH2005PTC156244	PARADIGM LOGISTICS & DISTRIBUTION PRIVATE LIMITED	Director	28/09/2007	04/04/2007	25/07/2012	Active	NO
15	U45200MH2006PTC158775	STARGAZE PROPERTIES PRIVATE LIMITED	Director	28/09/2007	04/04/2007	28/06/2013	Active	NO
16	U45200MH2005PTC157367	TRION PROPERITIES PRIVATE LIMITED	Director	27/07/2007	05/04/2007	10/02/2014	Active	NO
17	U45200MH2003PTC143610	SERENE PROPERTIES PRIVATE LIMITED	Director	27/07/2007	05/04/2007	28/06/2013	Active	NO
18	U70101MH2004PTC146231	UPTOWN PROPERTIES AND LEASING PRIVATE LIMITED	Director	29/09/2007	13/06/2007	28/09/2011	Active	NO
19	U45200MH2007PTC168315	AESTHETIC REALTORS PRIVATE LIMITED	Director	29/09/2007	27/06/2007	17/11/2012	Strike off	NO
20	U45201MH2007PTC175612	SUSTAIN PROPERTIES PRIVATE LIMITED	Director	01/11/2007	01/11/2007	10/02/2014	Active	NO
21	U70102MH2007PTC175633	SUPPORT PROPERTIES PRIVATE LIMITED	Director	02/11/2007	02/11/2007	-	Active	NO
22	U70102MH2007PTC175634	CHALLENGE PROPERTIES PRIVATE LIMITED	Director	02/11/2007	02/11/2007	10/02/2014	Active	NO
23	U72100MH2006PTC160261	GENEXT HARDWARE & PARKS PRIVATE LIMITED	Director	09/06/2008	14/03/2008	11/03/2013	Active	NO
24	U67190MH2007PTC173763	LOMBARD STREET INVESTMENT ADVISORS PRIVATE LIMITED	Director	03/05/2008	03/05/2008	17/11/2012	Strike off	NO
25	U70102MH2008PTC185248	MINDSPACE PROPERTIES PRIVATE LIMITED	Director	30/07/2008	30/07/2008	17/11/2011	Strike off	NO
26	U45202MH1990PTC057919	GIGAPLEX ESTATE PRIVATE LIMITED	Director	18/11/2010	18/11/2010	19/11/2012	Active	NO
27	U60231MH2007PTC177037	ETERNUS REAL ESTATE PRIVATE LIMITED	Director	27/09/2011	16/02/2011	-	Active	NO

Name :

Manohar Raghuram Kamath

Designation :

Director

Address :

201, Wing A, Orion – Vasanth Galaxy Chs. Limited, Goregaon (West), Bangur Nagar, Mumbai – 400104, Maharashtra, India

Date of Birth/Age :

06.05.1967

Date of Appointment :

27.01.2014

DIN No.:

02225808

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	U52100MH2007PLC170243	GATEWAY MULTICHANNEL RETAIL (INDIA) LIMITED	Director	29/07/2013	24/09/2012	-	Active	NO
2	U52396MH1999PLC122528	CROSSWORD BOOKSTORES LIMITED	Director	24/07/2014	27/01/2014	-	Active	NO

Name :

Prashant Sushilchandra Mehta

Designation :

Director

Address :

3, Maireyi, Chs. Limited, 65 (Z) 4, Linking Road, Sanacruz (West), Mumbai – 400054, Mahrashtra, India

Date of Birth/Age :

31.08.1954

Date of Appointment :

11.11.2013

DIN No.:

06412861

KEY EXECUTIVES

Name :	Anita Shankar Shetty
Designation :	Company Secretary and Manager
Address :	501, I-63, Navgarhm Poonam Sagar Complex, Mira Road (East), Mumbai – 401107, Mahrashtra, India
Date of Birth/Age :	03.06.1985
Date of Appointment :	01.09.2010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 24.07.2014

Names of Equity Shareholders	No. of Shares
Shoppers Stop Limited Ravi C. Raheja and B.S. Raheja, India	15
Shoppers Stop Limited Chandru L. Raheja and Neel C. Raheja, India	15
Shoppers Stop Limited	9562447
Shoppers Stop Limited Ravi C. Raheja, India	4
Shoppers Stop Limited Chandru L. Raheja	4
Shoppers Stop Limited and Yasin E. Virani	10
Shoppers Stop Limited and Govind Shrikhande	5
Total	9562500

Names of Preference Shareholders	No. of Shares
Shoppers Stop Limited	10000000

AS ON 24.07.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	The subject is engaged in the business of retail trade through own stores and franchisee store facilities.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Not Available
Purchasing :	Not Available

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Information declined by the management.

Bankers :

IDBI Bank Limited, Indian Red Cross Society Building, 1, Red Cross Road, New Delhi - 110001, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
SHORT TERM BORROWINGS
Loans repayable on demand	92.504	95.434
Total	92.504	95.434

Auditors :
Name :	G M Kapadia and Company Chartered Accountants
Address :	1007, Raheja Chmbers, 213, Nariman Point, Mumbai – 400021, Maharashtra, India
PAN No.:	AAAFG4713G
Memberships :	Not Available
Collaborators :	Not Available
Holding company :	Shoppers Stop Limited
Fellow Subsidiary company :	· Hypercity Retail (India) Limited · Inorbit Malls (India) Private Limited

CAPITAL STRUCTURE

AS ON 24.07.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs. 10/- each	Rs. 100.000 Million
10000000	Preference Shares	Rs. 10/- each	Rs. 100.000 Million
	Total		Rs. 200.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9562500	Equity Shares	Rs. 10/- each	Rs. 95.625 Million
10000000	Preference Shares	Rs. 10/- each	Rs. 100.000 Million
	Total		Rs. 195.625 Million

FINANCIAL DATA

[all figures are in Rupees Million]

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	195.625	195.625	195.625
(b) Reserves & Surplus	1.925	40.787	116.295
(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)	197.550	236.412	311.920
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.093	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)	0.000	0.093	0.000
(4) Current Liabilities
(a) Short term borrowings	137.504	135.434	142.049
(b) Trade payables	170.536	178.669	128.667
(c) Other current liabilities	57.281	41.142	38.999
(d) Short-term provisions	38.589	36.128	30.397
Total Current Liabilities (4)	403.910	391.373	340.112
TOTAL	601.460	627.878	652.032
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	165.238	190.447	211.226
(ii) Intangible Assets	47.387	56.281	63.787
(iii) Capital work-in-progress	4.320	0.792	2.130
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.253
(d) Long-term Loan and Advances	69.186	59.983	57.370
(e) Other Non-current assets	0.113	0.413	17.091
Total Non-Current Assets	286.244	307.916	351.857
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	212.912	206.192	202.208
(c) Trade receivables	39.581	35.806	31.646
(d) Cash and cash equivalents	7.201	4.765	5.051
(e) Short-term loans and advances	55.009	73.199	61.270
(f) Other current assets	0.513	0.000	0.000
Total Current Assets	315.216	319.962	300.175
TOTAL	601.460	627.878	652.032

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	884.147	906.267	932.063
		Other Income	2.386	1.652	5.447
		TOTAL (A)	886.533	907.919	937.510
Less	EXPENSES
		Purchases of Stock-in-Trade	486.976	507.805	517.636
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(6.720)	(3.984)	17.624
		Employees benefits expense	94.673	96.835	96.001
		Other expenses	296.804	314.267	299.883
		TOTAL (B)	871.733	914.923	931.144
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		14.800	(7.004)	6.366
Less	FINANCIAL EXPENSES (D)		13.278	12.864	6.321
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.522	(19.868)	0.045
Less/ Add	DEPRECIATION/ AMORTISATION (F)		40.478	38.990	36.329
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(38.956)	(58.858)	(36.284)
Less	TAX (H)		(0.093)	16.650	(13.782)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(38.863)	(75.508)	(22.502)
	Earnings / (Loss) Per Share (Rs.)		(1.99)	(3.86)	(1.15)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	(4.40)	(8.33)	(2.41)
Operating Profit Margin (PBDIT/Sales)	(%)	1.67	(0.77)	(0.67)
Return on Total Assets (PBT/Total Assets}	(%)	(6.52)	(9.39)	(5.59)
Return on Investment (ROI) (PBT/Networth)		(0.20)	(0.25)	(0.12)
Debt Equity Ratio (Total Debts/Networth)		0.70	0.57	0.46
Current Ratio (Current Asset/Current Liability)		0.78	0.82	0.88

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	195.625	195.625	195.625
Reserves & Surplus	116.295	40.787	1.925
Net worth	311.920	236.412	197.550
long-term borrowings	0.000	0.000	0.000
Short term borrowings	142.049	135.434	137.504
Total borrowings	142.049	135.434	137.504
Debt/Equity ratio	0.455	0.573	0.696

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	932.063	906.267	884.147
		(2.768)	(2.441)

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	932.063	906.267	884.147
Profit	(22.502)	(75.508)	(38.863)
	(2.41%)	(8.33%)	(4.40%)

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	No
10]	Designation of contact person	No
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	No

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10293110	03/06/2011	95,000,000.00	IDBI Bank Limited	Indian Red Cross Society Building, 1, Red Cross Road, New Delhi, Delhi - 110001, INDIA	B15322795

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
SHORT TERM BORROWINGS
Loans and advances from related parties	45.000	40.000
Total	45.000	40.000

FIXED ASSETS

· Furniture and Fixtures

· Vehicles

· Office Equipments

· Computer

· Other 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. 62.59
UK Pound	1	Rs. 92.46
Euro	1	Rs. 67.51

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	RAS
Report Prepared by :	JYO

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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		28

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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