MIRA INFORM REPORT

Report No. :	357233
Report Date :	26.12.2015

IDENTIFICATION DETAILS

Name :	ENALTEC LABS PRIVATE LIMITED
Registered Office :	1706, 17^th Floor, Kesar Solitaire, Plot No.5, Sector – 19, Sanpada, Navi Mumbai 400705, Maharashtra
Tel. No.:	91-22-67507000
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	24.02.2006
Com. Reg. No.:	11-160020
Capital Investment / Paid-up Capital :	Rs.15.477 Million
CIN No.: [Company Identification No.]	U73100MH2006PTC160020
IEC No.:	0306048906
TAN No.: [Tax Deduction & Collection Account No.]	MUME06806C
PAN No.: [Permanent Account No.]	AABCE5821H
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the manufacturing and trading of Active Pharmaceutical Ingredients [API’s] (From Indirect Sources)
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 1677500
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject was established in the year 2006 and it is engaged in the manufacturing and trading of Active Pharmaceutical Ingredients (API’s). Rating takes into account the healthy growth in scale of operation and cash accrual along with improvement in debt coverage indicators of the company during FY15. The ratings continue to derive strength from the experienced management diversified product portfolio along with wide geographical presence and satisfactory financial profile of the company. However, rating strength is partially offset by its relatively modest scale and working capital intensive operations, presence in the highly competitive active pharmaceutical ingredients (APIs) industry and susceptibility of profit margins to the volatility in the raw material prices. Trade relations are reported as fair. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and coditions.

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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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	CARE
Rating	BBB+ [Long Term Bank Facilities]
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	12.11.2015

Rating Agency Name	CARE
Rating	A3+ [Short Term Bank Facilities]
Rating Explanation	Moderate degree of safety and high credit risk.
Date	12.11.2015

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 31-03-2015.

LOCATIONS

Registered Office :	1706, 17^th Floor, Kesar Solitaire, Plot No.5, Sector – 19, Sanpada, Navi Mumbai 400705, Maharashtra, India
Tel. No.:	91-22-41707000
Fax No.:	91-22-41707070
E-Mail :	info@enalteclabs.co.in shetty_02@rediffmail.com sbi.06240@sbi.co.in anand.shah@enalteclabs.co.in
Website :	http://www.enalteclabs.co.in
Factory 1 :	Plot No. N-61, MIDC, Additional Ambernath, District Thane, Mumbai – 421506, Maharashtra, India
Factory 2 :	Gat No.204, Nashik-Mumbai Highway, Vadicarhe, Taluka Igatpuri, District Nashik – 422403, Maharashtra, India
Research Lab / R and D Centre :	W–59 A, Additional Ambernath Industrial Area, Anand Nagar, Ambernath (East), Mumbai – 421501, Maharashtra, India

DIRECTORS

AS ON 25.09.2015

Name :

Mr. Anand Prafulchandra Shah

Designation :

Managing Director

Address :

Flat 1204/1205/1206, Bldg 3, Odyssey Kesar, Harmony Plot 11/12, Sector - 6, Kharghar, Mumbai - 410210, Maharashtra, India

Date of Birth/Age :

09.03.1973

Qualification :

BE and MBA

Date of Appointment :

23.12.2013

DIN No.:

00597145

PAN No.:

AECPS5670J

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	U24230MH2004PTC146489	PHARMA SERV SOLUTIONS PRIVATE LIMITED	Director	24/05/2004	24/05/2004	03/12/2009	Active	NO
2	U24230MH2005PTC153404	GETZ PHARMA RESEARCH PRIVATE LIMITED	Managing director	01/04/2011	18/05/2005	-	Active	NO
3	U73100MH2006PTC160020	ENALTEC LABS PRIVATE LIMITED	Managing director	23/12/2013	11/05/2007	-	Active	NO
4	U24233MH2007PTC171203	Pharma Serv Ventures Private Limited	Director	29/05/2007	29/05/2007	10/05/2010	Active	NO
5	U24232MH2007PTC173479	Getz Pharma Private Limited	Director	27/08/2007	27/08/2007	-	Active	NO
6	AAB-9559	GENLINK PHARMA LLP	Designated Partner	24/12/2013	24/12/2013	-	Active	NO

Name :

Mr. Susheel Koul

Designation :

Director

Address :

1601, Bloomingdale, 16^th Floor, Hiranandani Estate, GB Road, Thane - 400607, Maharashtra, India

Date of Birth/Age :

01.05.1965

Qualification :

B.Sc., BA and DMM

Date of Appointment :

11.11.2008

DIN No.:

00925887

PAN No.:

AEZPK8099J

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	U24230MH2004PTC146489	PHARMA SERV SOLUTIONS PRIVATE LIMITED	Director	24/05/2004	24/05/2004	03/12/2009	Active	NO
2	U24230MH2005PTC153516	STANTECH PHARMACEUTICALS PRIVATE LIMITED	Director	26/05/2005	26/05/2005	07/11/2009	Active	NO
3	U24233MH2007PTC171203	Pharma Serv Ventures Private Limited	Director	07/11/2008	07/11/2008	10/05/2010	Active	NO
4	U73100MH2006PTC160020	ENALTEC LABS PRIVATE LIMITED	Director	11/11/2008	11/11/2008	-	Active	NO
5	U21098MH2012PTC230335	PRINTLINK PLATES PRIVATE LIMITED	Director	27/04/2012	27/04/2012	-	Active	NO
6	U29199TN2013PTC094218	BUDENBERG GAUGE PRIVATE LIMITED	Director	19/12/2013	19/12/2013	04/02/2014	Active	NO
7	AAB-9559	GENLINK PHARMA LLP	Designated Partner	24/12/2013	24/12/2013	-	Active	NO

Name :

Mr. Prabir Purkayastha

Designation :

Director

Address :

F - 9, Greenwood City, Sector - 46, Gurgaon - 122001, Haryana, India

Date of Birth/Age :

01.11.1949

Qualification :

DMM

Date of Appointment :

30.09.2010

DIN No.:

01126088

Other Directorship:

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
U74899DL1990PTC040900	SAGRIK PROCESS ANALYSTS PRIVATE LIMITED	Director	30/03/1992	30/03/1992	-	Active	NO
U72200DL1993PTC055269	STARTACUS SOFTWARE PRIVATE LIMITED	Director	17/09/1993	17/09/1993	-	Strike off	NO
U93090UR2001NPL026206	ARTISANS TECHNOLOGIES	Director	05/09/2001	05/09/2001	-	Active	NO
U73100MH2006PTC160020	ENALTEC LABS PRIVATE LIMITED	Director	30/09/2010	15/03/2010	-	Active	NO
L74899HR1985PLC034348	KLG SYSTEL LIMITED	Director	24/09/2011	17/01/2011	14/11/2012	Active	NO
U22130DL2014PTC270085	PG NEWSCLICK INDIA PRIVATE LIMITED	Director	07/08/2014	07/08/2014	-	Under Process of Striking off	NO
AAD-8401	PP NEWSCLICK STUDIO LLP	Designated Partner	28/04/2015	28/04/2015	-	Active	NO

Name :

Mr. Junaid Waheed

Designation :

Director

Address :

2464 Rideau Dr, Oakville, ON, L6H 7R1, Canada, Na, Canada

Date of Birth/Age :

18.02.1957

Date of Appointment :

12.11.2013

DIN No.:

06718311

KEY EXECUTIVES

Name :	Mr. Ajit Talwar
Designation :	Assistant Vice President - Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2015

Names of Shareholders	No. of Shares	%age holding
Scitech Limited, Dubai	1083357	70.00
Anand Prafulchandra Shah	185718	12.00
Susheel Koul	185718	12.00
B.V. Sivakumar	92857	6.00
Total	1547650	100.00

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2014

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	70.00
Directors or relatives of Directors	24.00
Other top fifty shareholders	6.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the manufacturing and trading of Active Pharmaceutical Ingredients [API’s] (From Indirect Sources)

Products :

Product Description	Item Code No.
Moxifloxacin Gydroc Gloride Mono Gydrate Ep	2934 9900
Montelukast Sodium	2993 4990
Rosuvastain Calcium	2942 0090

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

Not Available

Countries :

Not Available

Imports :

Products :

Not Available

Countries :

Not Available

Terms :

Selling :

Not Available

Purchasing :

Not Available

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

Manufacturer

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

No. of Employees :

Not Available

Bankers :

· State Bank of Mauritius Limited, 101, Raheja Centre, Free Journal Road, Nariman Point, Mumbai-400021, Maharashtra, India

· Central Bank of India, 1^st Floor, Bajaj Bhavan, Nariman Point, Mumbai-400021, Maharashtra, India

· ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Baroda-390015, Gujarat, India

Banker Name	Union Bank of India
Branch Address	Andheri (East), Mumbai, Maharashtra, India
Person Name (With Designation)	Not Available
Contact Number	Not Available
Name of Account Holder	Not Available
Account Number	Not Available
Account Since (Date/Year of Account Opening)	Not Available
Average Balance Maintained (If Possible)	Not Available
Credit Facilities Enjoyed (If any)	Not Available
Account Operation	Not Available
Remarks (If any)	Not Available

Facilities :

Secured Loan	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
Long-term Borrowings
Rupee term loans from banks	9.511	0.000
Loans taken for fixed assets	0.000	0.071
Short-term borrowings
Loans repayable on demand from banks	203.777	118.833
Total	213.288	118.904

Financial Institute:	Cholamandalam Investment And Finance Company Limited, Dare House, No. 2 N S C Bose Road, Parrys, Chennai - 600001, Tamilnadu, India
Auditors :
Name :	Shankarlal Jain and Associates Chartered Accountants
Address :	12, Enginner Building, 265, Princess Street, Mumbai - 400002, Maharashtra, India
Tel. No.:	91-22-22036623 / 22065739
Fax No.:	91-22-22086269
E-Mail :	info@sljainindia.com
PAN N Income-tax PAN of auditor or auditor's firm :	AACFS6967Q
Memberships :	Not Available
Collaborators :	Not Available
Holding Company :	Scitech Limited, United Arab Emirates
Enterprises where key management personnel are able to exercise significant influence :	Getz Pharma Research Private Limited, India (CIN No.: U24230MH2005PTC153404) Getz Pharma Private Limited Genlink Pharma LLP

CAPITAL STRUCTURE

AS ON 31.03.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
1,550,000	Equity Shares	Rs.10/- each	Rs.15.500 Million
283,500	Preferences Shares	Rs.10/- each	Rs.2.835 Million
			Rs.18.335 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,547,650	Equity Shares	Rs.10/- each	Rs.15.477 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	15.477	15.477	15.477
(b) Reserves & Surplus	571.652	395.429	280.968
(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)	587.129	410.906	296.445
(3) Non-Current Liabilities
(a) long-term borrowings	49.511	40.071	73.741
(b) Deferred tax liabilities (Net)	5.138	0.000	0.000
(c) Other long term liabilities	11.320	48.493	42.557
(d) long-term provisions	6.852	4.560	4.203
Total Non-current Liabilities (3)	72.821	93.124	120.501
(4) Current Liabilities
(a) Short term borrowings	203.777	118.832	176.847
(b) Trade payables	337.096	218.830	186.921
(c) Other current liabilities	164.669	171.557	41.209
(d) Short-term provisions	33.306	22.033	11.050
Total Current Liabilities (4)	738.848	531.252	416.027
TOTAL	1398.798	1035.282	832.973
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	318.581	218.701	217.943
(ii) Intangible Assets	92.669	89.303	90.137
(iii) Capital work-in-progress	0.000	12.489	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	8.074	7.996	6.824
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	419.324	328.489	314.904
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	329.096	273.660	225.234
(c) Trade receivables	512.599	265.827	209.994
(d) Cash and cash equivalents	28.722	45.560	11.678
(e) Short-term loans and advances	107.525	120.278	69.681
(f) Other current assets	1.532	1.468	1.482
Total Current Assets	979.474	706.793	518.069
TOTAL	1398.798	1035.282	832.973

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Income	1687.502	1259.904	855.821
	Other Income	14.783	2.285
	TOTAL	1702.285	1262.189	855.821
Less	EXPENSES
	Cost of Materials Consumed	922.289	617.324
	Purchases of Stock-in-Trade	77.854	93.381
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(48.032)	(37.436)
	Employees benefits expense	81.124	71.913
	CSR Expenditure	1.809	0.000
	Other expenses	367.280	313.219
	TOTAL	1402.324	1058.401	788.893
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	299.961	203.788
Less	FINANCIAL EXPENSES	32.999	28.116
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	266.962	175.672
Less/ Add	DEPRECIATION/ AMORTISATION	32.304	26.876
	PROFIT/ (LOSS) BEFORE TAX	234.658	148.796	66.928
Less	TAX	56.639	33.429	8.219
	PROFIT/ (LOSS) AFTER TAX	178.019	115.367	58.709
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	933.897	1011.407	598.420
	TOTAL EARNINGS	933.897	1011.407	598.420
	IMPORTS
	Raw Materials	489.448	292.721	289.249
	TOTAL IMPORTS	489.448	292.721	289.249
	Earnings / (Loss) Per Share (Rs.)	115.03	74.54	46.98

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	7.572	20.931	21.504
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	176.508	127.138	70.303
Net cash flows from (used in) operating activities	167.063	130.768	58.011

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	10.55	9.16	NA
Operating Profit Margin (PBIDT/Sales)	(%)	17.78	16.17	NA
Return on Total Assets (PBT/Total Assets}	(%)	16.78	14.55	8.03
Return on Investment (ROI) (PBT/Networth)		0.40	0.36	0.23
Debt Equity Ratio (Total Debt /Networth)		0.44	0.44	0.92
Current Ratio (Current Asset/Current Liability)		1.33	1.33	1.25

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	15.477	15.477	15.477
Reserves & Surplus	280.968	395.429	571.652
Share Application money pending allotment	0.000	0.000	0.000
Net worth	296.445	410.906	587.129
long-term borrowings	73.741	40.071	49.511
Short term borrowings	176.847	118.832	203.777
Current Maturities of Long Term Debt	21.504	20.931	7.572
Total borrowings	272.092	179.834	260.860
Debt/Equity ratio	0.918	0.438	0.444

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Total Income	855.821	1262.189	1702.285
		47.483	34.868

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Total Income	855.821	1262.189	1702.285
Profit	58.709	115.367	178.019
	6.86%	9.14%	10.46%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	No
8	Designation of contact person	No
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	Yes
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last four years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

UNSECURED LOAN

PARTICULARS	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
Long-term Borrowings
Other loans and advances, others	40.000	40.000
Total	40.000	40.000

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10490646	20/06/2014 *	365,000,000.00	UNION BANK OF INDIA	ANDHERI EAST BRANCH,, MAYANI MANOR,SIR M.V. ROAD,  MUMBAI, MAHARASHTRA - 400069, INDIA	C11061132
2	10348816	22/11/2011	464,000.00	CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMIT  ED	DARE HOUSE, NO. 2 N S C BOSE ROAD, PARRYS, CHENNA  I, TAMIL NADU - 600001, INDIA	B32726085

* Date of charge modification

FIXED ASSETS

Tangible assets

• Land
• Buildings
• Plant and equipment
• Furniture and fixtures
• Vehicles
• Office equipment
• Computer equipments
• Leasehold improvements

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.66.20
UK Pound	1	Rs.98.29
Euro	1	Rs.72.41

INFORMATION DETAILS

Information Gathered by :	KAM
Analysis Done by :	KAR
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		52

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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