MIRA INFORM REPORT

Report No. :	312269
Report Date :	22.04.2015

IDENTIFICATION DETAILS

Name :	OM SAKTHI MEDI CENTRE
Registered Office :	“Om Sakthi Towers”, No. 163 (Old No. 104 and 107), Anna Salai, Near L.I.C., Chennai – 600002, Tamilnadu
Tel. No.:	91-44-28606221
Country :	India
Financials (as on) :	31.03.2015 (Projected)
Date of Incorporation :	23.09.1996
Capital Investment :	Rs. 18.517 Million
TIN No.:	33140600493
PAN No.: [Permanent Account No.]	AAAF07574R
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Trader and Distributor of Medicines.
No. of Employees :	16 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established partnership concern having satisfactory track record. The concern has performed well and has achieved decent increase in its turnover. Profit margin of the concern is fair. The rating also takes into of qualified and experienced partners and their good relations with customers and supplier companies. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The concern can be considered for business dealings with usual business 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 – 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

EXTERNAL AGENCY RATING

NOT AVAILABLE

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. Vijayavel V.
Designation :	Partner
Contact No.:	91-9840094543
Date :	18.04.2015

LOCATIONS

Registered Office :	“Om Sakthi Towers”, No. 163 (Old No. 104 and 107), Anna Salai, Near L.I.C., Chennai – 600002, Tamilnadu, India
Tel. No.:	91-44-28606221 (3 Lines)
Mobile No.:	91-9840094543 (Mr. Vijayavel V.)
Fax No.:	91-44-28600796
E-Mail :	omsakthimedi@gmail.com
Area :	900 Sq. ft.
Location :	Owned

PARTNERS

Name :	Mr. V. Ethirajan
Designation :	Partner
Address :	No. 16, Sydoji Street, Triplican, Chennai – 600005, Tamilnadu, India
Date of Birth/Age :	16.09.1962
Qualification :	B. Com., CA Inter
Experience :	26 Years
PAN No.:	AAEPE5219M
Name :	Mr. V. Yuvarajan
Designation :	Partner
Address :	No. 16, Sydoji Street, Triplican, Chennai – 600005, Tamilnadu, India
Date of Birth/Age :	12.01.1964
Qualification :	B. Sc., D. Pharm.
Experience :	30 Years
PAN No.:	AAAPY8740K
Name :	Mr. Vijayavel V.
Designation :	Partner
Address :	No. 16, Sydoji Street, Triplican, Chennai – 600005, Tamilnadu, India
Date of Birth/Age :	01.06.1969
Qualification :	B. Com.
Experience :	25 Years
PAN No.:	AAHPV7289H

BUSINESS DETAILS

Line of Business :	Trader and Distributor of Medicines.
Brand Names :	--
Agencies Held :	--
Exports :	--
Imports :	--
Terms :
Selling :	Cash and Credit (30 Days and 60 Days)
Purchasing :	Credit (30 Days and 90 Days)

GENERAL INFORMATION

Suppliers :

Reference:	Cipla Limited
Address:	No. 106, Allapakkam Main Road, Near Porur, Chennai – 600116, Tamilnadu, India
Name of the Person (with Designation):	Mr. Vivek (Manager)
Contact Number:	91-9840545859 91-44-24769806/ 07
Since How Long Known:	More than 10 years
Maximum Limit Dealt:	Monthly Rs. 2.500 – 3.000 Million
Experience :	Product Quality = Excellent Delivery Behaviour = Excellent Overall = Excellent
Remarks :	As claimed by Mr. Vivek a Manager that the subject is very good company and a very well-known company in market. Payment behaviour is also very good. They were very much satisfied by doing business with subject.

Name of Suppliers	Address	Contact Person	Contact No.
Ful Ford India Limited	No. 9, Rose Nagar, 1st Street, Kovilambakkam, Chennai – 600117, Tamilnadu, India	Mr. Shankar	91-44-43132681/ 43132682 91-8643059639
Novartis India Limited	No. 61, Alapakkam Main Road, Maduravoyal, Chennai – 600095, Tamilnadu, India	Mr. Sampath	91-7418170805

Customers :

Wholesalers, Retailers and End Users

Reference:	S.R. Divisional Medical Offer
Address:	Stores Railway Hospital, Ayanavaram, Chennai, Tamilnadu, India
Name of the Person (with Designation):	Mr. Nagaraj (Store Incharge)
Contact Number:	91-9003160566
Since How Long Known:	3-4 Years
Maximum Limit Dealt:	Not Divulged
Experience :	Product Quality = Excellent Delivery Behaviour = Excellent Overall = Excellent
Remarks :	As claimed by Mr. Nagaraj that they are satisfied with product quality and delivery behaviour and told subject is a good company.

Name of Customers	Address	Contact Person	Contact No.
Y.R.G. Caremedical Education Researth Foundation	V.H.S. Campus Tidel Park Road, Taramani, Chennai – 600113, Tamilnadu, India	91-9841309640	Mr. Narayanan
The Director Cancer Institute	Sardar Patel Road, Adayar, Chennai – 600020, Tamilnadu, India	91-44-24910754	--

No. of Employees :

16 (Approximately)

Bankers :

Bank Name:	The Dhanlaxmi Bank Limited
Branch:	Mount Road Branch, 163, Anna Salai, Chennai – 600002, Tamilnadu, India
Name of the Person (with Designation):	Ms. Vidya Dharmaraj (Branch Operations Manager)
Contact Number:	91-44-49037012
Name of Account Holder:	OMSAKTHI MEDI CENTRE
Account Number:	--
Account Since (Date/ Year of A/c Opening):	1996
Average Balance Maintained (Optional):	--
Credit Facilities Enjoyed (CC/OD/Term Loan):	Cash Credit Bank Guarantee
Account Operation:	Regular
Remarks:	Accounts are standard.

Auditors :
Name :	Dhandapani and Tholkappian Chartered Accountants
Address :	No. 59, Anna Salai, (SVS Club – Next to Devi Theatre), Chennai – 600002, Tamilnadu, India
Tel. No.:	91-44-28418400 (5 Lines) / 28528221
E-Mail :	sosgroup@yahoo.co.in
Related Party :	· Parasakthi Agencies Address: No. 16, Sydoji Street, Triplican, Chennai – 600005, Tamilnadu, India Activity: Wholesaler of Pharmaceutical.

CAPITAL STRUCTURE

AS ON 31.03.2015 (PROJECTED)

Capital Investment :
Owned :	Rs. 18.517 Million
Borrowed :	--
Total :	Rs. 18.517 Million

FINANCIAL DATA

[all figures are in Rupees Million]

Note: Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2015 (Projected)	31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Partner’s Capital		18.517	11.727	8.578
2] Share Application Money		0.000	0.000	0.000
3] Profit and Loss Account		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		18.517	11.727	8.578
LOAN FUNDS
1] Secured Loans
2] Unsecured Loans
TOTAL BORROWING		25.150	15.166	12.261
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		43.667	26.893	20.839
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.200	3.855	4.028
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	32.500	27.194	10.380
	Sundry Debtors	18.000	14.250	10.573
	Cash & Bank Balances	0.467	0.521	0.348
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.000	0.703	2.008
Total Current Assets		51.967	42.668	23.309
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	12.500	19.629	6.497
	Other Current Liabilities	0.000	0.001	0.001
	Provisions	0.000	0.000	0.000
Total Current Liabilities		12.500	19.630	6.498
Net Current Assets		39.467	23.038	16.811
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		43.667	26.893	20.839

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015 (Projected)	31.03.2014	31.03.2013
	SALES
		Income	165.000	131.051	76.407
		Other Income	6.500	5.435	4.064
		TOTAL	171.500	136.486	80.471
Less	EXPENSES
		Cost of Goods Sold	154.000	122.909	70.694
		Salary and Bonus	3.000	2.570	2.172
		W.P. Remuneration	4.700	3.034	1.818
		Rent	0.000	0.000	0.364
		Printing and Stationery	0.170	0.148	0.137
		Electricity	0.250	0.234	0.237
		Advertisement	0.000	0.000	0.025
		Bad Debts	0.000	0.000	0.122
		Travelling and Convey.	1.500	1.389	0.514
		Bata Charges	0.150	0.129	0.047
		Business Promotion	0.250	0.198	0.122
		Donation	0.000	0.005	0.001
		Insurance	0.100	0.076	0.041
		Cooly and Cartage	0.000	0.003	0.002
		Miscellaneous Expense	0.180	0.143	0.126
		Packaging Charges	0.450	0.416	0.334
		Staff-Welfare	0.145	0.143	0.114
		Repair and Renewals	0.300	0.283	0.309
		Legal Fee	0.000	0.000	0.020
		ITC Sales Tax	0.000	0.113	0.000
		Telephone	0.200	0.173	0.203
		Audit Fees	0.050	0.050	0.050
		Sales Tax Paid	0.000	0.000	0.065
		TDS	0.900	0.615	0.456
		Chit Dividend	0.000	0.097	0.000
		TOTAL	166.345	132.728	77.973
	PROFIT/ (LOSS) BEFORE INTEREST, DEPRECIATION AND AMORTISATION		5.155	3.758	2.498
Less	INTEREST		2.400	1.931	1.339
	PROFIT / (LOSS) BEFORE DEPRECIATION AND AMORTISATION		2.755	1.827	1.159
Less/ Add	DEPRECIATION/ AMORTISATION		0.655	0.589	0.554
	NET PROFIT/ (LOSS)		2.100	1.238	0.605

KEY RATIOS

PARTICULARS		31.03.2015 (Projected)	31.03.2014	31.03.2013
Net Profit Margin (PAT/Sales)	(%)	1.27	0.94	0.79
Operating Profit Margin (PBDIT/Sales)	(%)	3.12	2.87	3.27
Return on Total Assets (PBT/Total Assets}	(%)	3.74	2.66	2.21
Return on Investment (ROI) (PBT/Networth)		0.11	0.11	0.07
Debt Equity Ratio (Total Debt/Networth)		1.36	1.29	0.70
Current Ratio (Current Asset/Current Liability)		4.16	2.17	3.59

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particulars	31.03.2013	31.03.2014	31.03.2015 (Projected)
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Partners’ Capital	8.578	11.727	18.517
Profit and Loss Account	0.000	0.000	0.000
Net worth	8.578	11.727	18.517
Secured Loans	12.261	15.166	25.150
Unsecured Loans	0.000	0.000	0.000
Total borrowings	12.261	15.166	25.150
Debt/Equity ratio	1.429	1.293	1.358

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015 (Projected)
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	76.407	131.051	165.000
		71.517	25.905

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015 (Projected)
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	76.407	131.051	165.000
Profit	0.605	1.238	2.100
	0.79%	0.94%	1.27%

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	Yes
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)	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	No
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
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	No
34]	External Agency Rating, if available	No

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OMSAKTHI MEDI CENTRE

COMPUTATION OF TOTAL INCOME

(RS. IN MILLION)

PARTICULARS

31.03.2014

Business :

1. Net profit as per Profit and Loss a/c

1.253

Add: Inadmissible Expenses

Donation

0.005

Income Tax

0.615

Working Partners Remuneration

3.034

---------------

Book Profit U/Sec 40(b) (v)

4.907

Working Partners Remuneration

First 0.300 0.135 45%

0.135 45%

Bal 4.607 1.382 30%

1.382 30%

3.034

---------------

TOTAL INCOME

1.873

Tax on Total Income 0.562

0.562

Add: Education cess 3% 0.017

-------

0.579

-------

Appropriation of Income to Partners

Net Income 1.873

Less: Firm Tax 0.579

-------

Divisible Income 1.294

-------

Allocation of Income to Partners:

Name of the Partner	Shares %	W.P.R.	Income	Total
1. Mr. V. Ethirajan	50%	--	0.647	0.647
2. Mr. V. Yuvarajan	25%	1.517	0.323	1.841
3. Mr. V. Vijayavel	25%	1.517	0.324	1.840
Total		3.034	1.294	4.328

Tax on above Income

0.579

Less: Prepaid Tax

--

TDS Paid

0.615

---------------

Refund Due

0.036

------------------------------------------------------------------------------------------------------------------------------

OMSAKTHI MEDI CENTRE

PROJECTED BALANCE SHEET

(RS. IN MILLION)

SOURCES OF FUNDS		31.03.2016
SHAREHOLDERS FUNDS
1] Partner’s Capital		25.717
2] Share Application Money		0.000
3] Profit and Loss Account		0.000
4] (Accumulated Losses)		0.000
NETWORTH		25.717
LOAN FUNDS
1] Secured Loans		25.000
2] Unsecured Loans		0.000
TOTAL BORROWING		25.000
DEFERRED TAX LIABILITIES		0.000
TOTAL		50.717
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.600
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	33.000
	Sundry Debtors	20.000
	Cash & Bank Balances	0.617
	Other Current Assets	0.000
	Loans & Advances	1.000
Total Current Assets		54.617
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.500
	Other Current Liabilities	0.000
	Provisions	0.000
Total Current Liabilities		7.500
Net Current Assets		47.117
MISCELLANEOUS EXPENSES		0.000
TOTAL		50.717

------------------------------------------------------------------------------------------------------------------------------

OMSAKTHI MEDI CENTRE

PROJECTED PROFIT AND LOSS ACCOUNT

(RS. IN MILLION)

	PARTICULARS		31.03.2016
	SALES
		Sales	180.000
		Other Income	7.000
		TOTAL	187.000
Less	EXPENSES
		Cost of Goods Sold	167.800
		Salary and Bonus	3.200
		W.P. Remuneration	4.900
		Rent	0.000
		Printing and Stationery	0.180
		Electricity	0.270
		Advertisement	0.000
		Travelling and Convey.	1.600
		Bata Charges	0.200
		Business Promotion	0.200
		Insurance	0.100
		Miscellaneous Expense	0.200
		Packaging Charges	0.500
		Staff-Welfare	0.150
		Repair and Renewals	0.300
		Telephone	0.250
		Audit Fees	0.050
		TDS	1.000
		TOTAL	180.900
	PROFIT/ (LOSS) BEFORE INTEREST, DEPRECIATION AND AMORTISATION		6.100
Less	INTEREST		3.200
	PROFIT / (LOSS) BEFORE DEPRECIATION AND AMORTISATION		2.900
Less/ Add	DEPRECIATION/ AMORTISATION		0.600
	NET PROFIT/ (LOSS)		2.300

------------------------------------------------------------------------------------------------------------------------------

NETWORTH STATEMENT

MR. V. ETHIRAJAN

(RS. IN MILLION)

DESCRIPTION OF ASSETS	AREA	AMOUNT
No. 16, Sydoji Street, Chennai – 600005, Tamilnadu, India	1200 Sq. Ft.	4.000
No. 163, Anna Salari, Chennai – 600002, Tamilnadu, India	1800 Sq. Ft.	40.000
Total		44.000

------------------------------------------------------------------------------------------------------------------------------

NETWORTH STATEMENT

MR. V. YUVARAJAN

(RS. IN MILLION)

DESCRIPTION OF ASSETS	AREA	AMOUNT
No. 16, Sydoji Street, Chennai – 600005, Tamilnadu, India	1200 Sq. Ft.	4.000
No. 163, Anna Salari, Chennai – 600002, Tamilnadu, India	1800 Sq. Ft.	40.000
Total		44.000

------------------------------------------------------------------------------------------------------------------------------

NETWORTH STATEMENT

MR. V. ETHIRAJAN

(RS. IN MILLION)

DESCRIPTION OF ASSETS	AREA	AMOUNT
No. 16, Sydoji Street, Chennai – 600005, Tamilnadu, India	1200 Sq. Ft.	4.000
No. 163, Anna Salari, Chennai – 600002, Tamilnadu, India	1800 Sq. Ft.	40.000
Total		44.000

------------------------------------------------------------------------------------------------------------------------------

PROFILE

They popularly referred as ‘Om Sakthi Group of Firms’ as been doing various businesses, since their forefathers. In the year 1996 they diversified into Drugs and Pharmaceuticals segment. Presently this division has the following firms for the said line of business.

1. Omsakthi Medi Centre

2. Parasakthi Agencies

3. Parasakti Orthocare

Their activity comprises retailing of Drugs and Pharmaceuticals,

CFA of Roche Products India Private Limited

Distributorship of

1. ROCHE – Centralized Diagnostic Division

2. ROCHE – NPT Division

3. DEPUTY – Medical Spine and Joint Division

4. Johnson and Johnson Cardio Vascular Division

5. Johnson and Johnson Endo Vascular Division and

6. Johnson and Johnson Codman Division

7. Glaxo Smithkline, Boston Scientific

8. Cipla. Aurobindo, Ranbaxy, Abbott, Emcure, Mylan

9. Novartis, Alkem, Bayer Zydus Pharma, Fulford, MSD

They have carried the appreciation of their principles through their better understanding of the need and practices of health care industries. With the liberalized economic policy of the Government of India and the vision it has towards the health care segment, they are aware to the opportunities of growth opened up in the next few years to come. They have thorough professionalism, required manpower and adequate capital and infrastructural facilities at their command to extend the best of the services needed.

They assure that they have the competence to undertake any new ventures and fulfill the task to the fullest satisfaction of their principles.

------------------------------------------------------------------------------------------------------------------------------

TRADE REFERENCE

· Medihauxe International Private Limited

Contact Person: Mr. Manjunath

Mobile No.: 91-9841049509

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 records 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. 62.92
UK Pound	1	Rs. 93.57
Euro	1	Rs. 67.34

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	SUM
Report Prepared by :	MRI / BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		44

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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