MIRA INFORM REPORT

Report No. :	318418
Report Date :	24.04.2015

IDENTIFICATION DETAILS

Name :		FLOVEL ENERGY PRIVATE LIMITED (w.e.f.11.11.2010)
Formerly Known As :		FLOVEL MECAMIDI ENERGY PRIVATE LIMITED (w.e.f.16.07.2007) FLOVEL ENERGY PRIVATE LIMITED
Registered Office :		M-27, Greater Kailash, Part-II, New Delhi - 110048
Tel. No.:	91-129-4090600
Country :		India
Financials (as on) :		31.03.2014
Date of Incorporation :		14.11.2006
Com. Reg. No.:		55-155444
Capital Investment / Paid-up Capital :		Rs. 61.174 Million
CIN No.: [Company Identification No.]		U40102DL2006PTC155444
TAN No.: [Tax Deduction & Collection Account No.]		DELF03293D
PAN No.: [Permanent Account No.]		AABCF0582E
Legal Form :		Private Limited Liability Company
Line of Business :		Manufacturer of Hydro Turbine and Supplier of Electro Mechanical Equipment.
No. of Employees :		200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 537000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an establishing company having satisfactory track record. The rating reflects company satisfactory financial risk profile marked by sound networth position and fair profitability of the company. Trade relations are reported as fair. Business is active. Payment terms are reported to be usually correct. The company can be considered normal for business dealings at usual trade terms and conditions.

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

Rating Agency Name	CRISIL
Rating	Long-term Rating = BBB-
Rating Explanation	Moderate degree of safety and carry moderate credit risk.
Date	August 12, 2014

Rating Agency Name	CRISIL
Rating	Short-term Rating = A3
Rating Explanation	Moderate degree of safety and carry higher credit risk.
Date	August 12, 2014

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Kishor Chauhan
Designation :	Secretary
Contact No.:	91-129-4090600
Date :	21.04.2015

LOCATIONS

Registered Office :	M-27, Greater Kailash, Part-II, New Delhi – 110048, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	kishor.chauhan@flovel.net contact@flovel.net rn.agrawal@flovel.net
Website :	www.flovel.net
Location :	Owned
Corporate Office :	15/3, Mathura Road, Faridabad – 121008, Haryana, India
Tel. No.:	91-129-4090600
Fax No.:	91-129-4090650
Factory :	Mitrol Deeghot Road, 72 K.M. Stone, Delhi Mathura Road, Palwal - 121102, Haryana, India
Tel. No.:	91-1275-312006/ 312004/ 07/ 312201

DIRECTORS

AS ON 19.09.2014

Name :

Mr. Maharaj Kar

Designation :

Managing director

Address :

M-27, Greater Kailash Part 2, New Delhi - 110048, India

Date of Birth/Age :

01.09.1950

Experience :

42 Years

Date of Appointment :

01.04.2007

PAN No.:

AAAPK1649M

DIN No.:

00316282

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	Company/ LLP Status	Defaulting status
1	U74899DL1992PTC049600	FLOVEL TACKE PRIVATE LIMITED	Director	17-07-1992	17-07-1992	Active	NO
2	U40108DL2003PTC120344	TRUST ENERGY PRIVATE LIMITED	Director	02-08-2006	02-08-2006	Strike off	NO
3	U40101DL2002PTC114029	MG AND CO. PRIVATE LIMITED	Director	01-09-2006	01-09-2006	Active	NO
4	U40102DL2006PTC155444	FLOVEL ENERGY PRIVATE LIMITED	Managing director	01-04-2007	14-11-2006	Active	NO
5	U67120DL2007PTC160618	FLOVEL MG HOLDINGS PRIVATE LIMITED	Director	16-03-2007	16-03-2007	Active	NO
6	U45204DL2008PTC177402	FLOVEL POWER SOLUTIONS PRIVATE LIMITED	Director	29-04-2008	29-04-2008	Active	NO
7	U29120HR2008PTC038113	TB HYDRO FLOVEL VALVES PRIVATE LIMITED	Director	01-07-2008	01-07-2008	Active	NO

Name :

Mr. Gautam Kar

Designation :

Whole-time director

Address :

M-27, Greater Kailash Part 2, New Delhi - 110048, India

Date of Birth/Age :

06.01.1978

Date of Appointment :

01.04.2007

PAN No.:

AHEPK8627Q

DIN No.:

00316255

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	U40101DL2002PTC114029	MG AND CO. PRIVATE LIMITED	Director	29-01-2002	29-01-2002	-	Active	NO
2	U40108DL2003PTC120344	TRUST ENERGY PRIVATE LIMITED	Director	14-05-2003	14-05-2003	-	Strike off	NO
3	U40101HP2005PTC028426	SHIRAD HYDRO ENERGY PRIVATE LIMITED	Director	17-05-2005	17-05-2005	02-08-2006	Active	NO
4	U40102DL2006PTC155444	FLOVEL ENERGY PRIVATE LIMITED	Whole-time director	01-04-2007	14-11-2006	-	Active	NO
5	U67120DL2007PTC160618	FLOVEL MG HOLDINGS PRIVATE LIMITED	Director	16-03-2007	16-03-2007	-	Active	NO
6	U45204DL2008PTC177402	FLOVEL POWER SOLUTIONS PRIVATE LIMITED	Director	29-04-2008	29-04-2008	-	Active	NO
7	U29120HR2008PTC038113	TB HYDRO FLOVEL VALVES PRIVATE LIMITED	Director	01-07-2008	01-07-2008	-	Active	NO

Name :

Mrs. Aruna Kar

Designation :

Whole-time director

Address :

M-27, Greater Kailash Part 2, New Delhi - 110048, India

Date of Birth/Age :

09.07.1951

Date of Appointment :

01.10.2012

PAN No.:

AAGPK5549J

DIN No.:

00996971

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	Company/ LLP Status	Defaulting status
1	U74899DL1992PTC049600	FLOVEL TACKE PRIVATE LIMITED	Director	02-04-2004	02-04-2004	Active	NO
2	U40101DL2002PTC114029	MG AND CO. PRIVATE LIMITED	Director	01-11-2004	01-11-2004	Active	NO
3	U40102DL2006PTC155444	FLOVEL ENERGY PRIVATE LIMITED	Whole-time director	01-10-2012	29-03-2010	Active	NO

KEY EXECUTIVES

Name :	Mr. Kishor Chauhan
Designation :	Secretary
Address :	1266, Janta Flat, G.T.B Enclave, Delhi - 110093, India
Date of Birth/Age :	30.09.1986
Date of Appointment :	21.11.2011
PAN No.:	ANQPC2086F

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 19.09.2014

Names of Shareholders	No. of Shares	Percentage of Holding
Flovel MG Holdings Private Limited, India	6020760	98.42
Aruna Kar	96650	1.58
Total	6117410	100.00

AS ON 19.09.2014

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	98.42
Directors or relatives of directors	1.58
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Hydro Turbine and Supplier of Electro Mechanical Equipment.
Brand Names :	--
Agencies Held :	--
Exports :
Products :	Finished Goods
Countries :	· Indonesia · Turkey
Imports :
Products :	--
Countries :	--
Terms :
Selling :	Cash
Purchasing :	Credit

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

200 (Approximately)

Bankers :

Bank Name:	Not Divulged
Branch:	Not Divulged
Person Name (with Designation):	Not Divulged
Contact Number:	Not Divulged
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks:	Not Divulged

· ICICI Bank Limited

Landmarkrace Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India

· State Bank of Travancore

3, Bhikaji Cama Place (Ansal Chamber-1), R.K. Puram, New Delhi - 110066, Delhi, India

· State Bank of India

Industrial Finance Branch, 14^th – 15^th Floor, Jawahar Vyapaar Bhawan, 1, Tolstoy Marg, New Delhi – 110001, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Rupee term loans from banks	0.000	5.000
Loans taken for vehicles	3.303	1.927
Other loans and advances	33.899	44.748
SHORT TERM BORROWINGS
Rupee term loans from banks	95.979	61.322
Total	133.181	112.997

Banking Relations :	--
Auditors :
Name :	Sanjeev Chandra and Company Chartered Accountants
Address :	252-D, 1st Floor, Sant Nagar, Iskon Temple Road, East Of Kailash, New Delhi – 110065, India
Income-tax PAN of auditor or auditor's firm :	AAQFS5436G
Holding company :	FLOVEL MG HOLDINGS PRIVATE LIMITED [U67120DL2007PTC160618]
Associates :	· TB Hydro Flovel Valves Private Limited [U29120HR2008PTC038113] · Flovel Power Solutions Private Limited [U45204DL2008PTC177402]

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
16,500,000	Equity Shares	Rs. 10/- each	Rs. 165.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6,117,410	Equity Shares	Rs. 10/- each	Rs. 61.174 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	61.174	61.174	61.174
(b) Reserves & Surplus	126.916	95.971	94.111
(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)	188.090	157.145	155.285
(3) Non-Current Liabilities
(a) Long-term borrowings	148.754	106.961	203.908
(b) Deferred tax liabilities (Net)	17.999	18.486	15.782
(c) Other long term liabilities	20.400	7.638	14.623
(d) long-term provisions	26.982	24.507	22.497
Total Non-current Liabilities (3)	214.135	157.592	256.810
(4) Current Liabilities
(a) Short term borrowings	110.656	153.088	87.590
(b) Trade payables	218.440	351.881	327.747
(c) Other current liabilities	290.781	337.512	284.461
(d) Short-term provisions	29.711	16.427	36.713
Total Current Liabilities (4)	649.588	858.908	736.511
TOTAL	1051.813	1173.645	1148.606
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	260.768	274.395	280.932
(ii) Intangible Assets	4.414	7.336	8.865
(iii) Capital work-in-progress	0.000	0.000	0.000
(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	0.000
(d) Long-term Loan and Advances	2.545	2.618	5.857
(e) Other Non-current assets	23.244	35.412	36.575
Total Non-Current Assets	290.971	319.761	332.229
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	96.075	68.264	47.477
(c) Trade receivables	379.252	405.512	419.629
(d) Cash and cash equivalents	43.559	56.014	64.624
(e) Short-term loans and advances	157.739	150.165	110.191
(f) Other current assets	84.217	173.929	174.456
Total Current Assets	760.842	853.884	816.377
TOTAL	1051.813	1173.645	1148.606

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	1249.382	1212.363	1140.539
		Other Income	29.789	24.294	16.789
		TOTAL	1279.171	1236.657	1157.328
Less	EXPENSES
		TOTAL	1234.059	1231.655	1120.559
	PROFIT BEFORE TAX		45.112	5.002	36.769
Less	TAX		14.166	3.142	11.628
	PROFIT AFTER TAX		30.946	1.860	25.141
	Earnings Per Share (Rs.)		5.06	0.30	4.20

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	2.48	0.15	2.20
Return on Total Assets (PBT/Total Assets}	(%)	4.29	0.43	3.20
Return on Investment (ROI) (PBT/Networth)		0.24	0.03	0.24
Debt Equity Ratio (Total Debt/Networth)		1.38	1.65	1.88
Current Ratio (Current Asset/Current Liability)		1.17	0.99	1.11

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particulars	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	61.174	61.174	61.174
Reserves & Surplus	94.111	95.971	126.916
Net worth	155.285	157.145	188.090
Long-term borrowings	203.908	106.961	148.754
Short term borrowings	87.590	153.088	110.656
Total borrowings	291.498	260.049	259.410
Debt/Equity ratio	1.877	1.655	1.379

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1140.539	1212.363	1249.382
		6.297	3.053

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1140.539	1212.363	1249.382
Profit	25.141	1.860	30.946
	2.20%	0.15%	2.48%

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
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	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10562264	23/12/2014	75,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	C50412253
2	10522708	23/12/2014 *	24,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	C50413442
3	10432929	21/06/2013	520,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	B77906493
4	10315013	06/09/2013 *	1,195,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	B87361697
5	10250706	15/04/2011 *	47,600,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	B11925229

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Rupee term loans from others	3.934	5.476
Loans and advances from others	107.618	49.810
SHORT TERM BORROWINGS
Rupee term loans from banks	4.677	28.716
Loans repayable on demand from others	10.000	18.090
Loans and advances from others	0.000	3.500
Other loans and advances	0.000	41.460
Total	126.229	147.052

OPERATING RESULTS

During the period the Company has recorded an annual turnover of Rs. 1249.382 Million as against Rs. 1212.363 Million of the previous period indicating an increase by 3.05%. The Company also posted a Net Profit After Tax (PAT) of Rs. 30.946 Million as compared to Rs. 1.860 Million in the previous period resulting in increase of 1563%.The Directors are putting their best efforts to strengthen the overall performance of the Company and are committed to take effective steps to improve the overall performance of the Company in days to come.

BUSINESS OUTLOOK AND FUTURE HORIZON

The Company has aggressive business plans for the future and is expanding its market share in the area of its operations by some strategic initiatives. It is commendable to note here that even in tough times the Company stood strong and able to grasp a good market share inspite of various roadblocks in its way such as global melt down, decrease in market size, cut throat competition and a new entrant in to the market. The Company showed a good business development in the year 2013-14 despite of global financial and economic crisis. In the face of difficult economic environment, order intake and order backlog were satisfactory. The aggressive marketing strategy of the Company has resulted in procuring orders worth Rs.448.000 Million for the Financial Year 2014-15. This reflects that with in such a short span of time, the Company is making its presence felt in the market.

CONTINGENT LIABILITIES:

Particulars	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
i. Bank/Corporate Guarantees to various customers/parties/Others	361.600	389.400
ii. Unexpired value of the L/Cs	94.400	248.100
iii. Bill Discounted	0.000	41.500
b) An arbitration proceeding as initiated by the Company along with one of the shareholders against the erstwhile foreign shareholder, who also has filed counter claims, is still pending before Arbitral Tribunal. The liability, if any is not determinable at this stage. c) Company had filed an appeal with Dy. Commissioner of Sales Tax (Appeals), Thiruvanthpuram against the penalty order of the Sales Tax of Rs. 0.985 Million. However the Company has already issued bank guarantee in favour of the department for similar amount. The matter is still sub Judice. d) Company had Imported Generator under Duty Exemption Scheme of DGFT without paying custom duty. However, DGFT later on disallowed the duty exemption and demanded Import duty of Rs.5.636 Million. The Company is contesting the claim and the matter is pending before Hon’ble High Court of Delhi.

FIXED ASSETS:

· Land

· Buildings

· Plant and equipment

· Other plant and equipment

· Furniture and fixtures

· Vehicles

· Motor vehicles

· Office equipment

· Computer equipments

· Other equipments

· 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. 63.19
UK Pound	1	Rs. 94.94
Euro	1	Rs. 67.66

INFORMATION DETAILS

Information Gathered by :	KMN
Analysis Done by :	DIV
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	4
--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		45

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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