MIRA INFORM REPORT

Report No. :	304423
Report Date :	24.01.2015

IDENTIFICATION DETAILS

Name :	SKY INDUSTRIES LIMITED (w.e.f. 1993)
Formerly Known as :	FINE VELVETS AND PLASTOFABS PRIVATE LIMITED
Registered Office :	C-28 TTC Industrial Area Thane Belapur Road, Pawane, Navi Mumbai – 400705, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	18.07.1989
Com. Reg. No.:	11-052645
Capital Investment / Paid-up Capital :	Rs.39.764 Millions
CIN No.: [Company Identification No.]	L17120MH1989PLC052645
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	MUMS16897G
PAN No.: [Permanent Account No.]	AAECS0561R
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and seller of narrow woven fabrics, hook and loop tape fasteners, webbings, knitted elastics, satin ribbons/checks ribbons, woven elastics.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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 :	Exist
Comments :	Subject is an established company having satisfactory track record. Trade relations are 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.

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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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.

LOCATIONS

Registered Office :	C-28 TTC Industrial Area Thane Belapur Road, Pawane, Navi Mumbai – 400705, Maharashtra, India
Tel. No.:	91-22-66272500 / 43332500
Fax No.:	91-22-66272550
E-Mail :	sales@skgroup.com
Website :	www.sky-india.com
Corporate Office 1 :	201, Orbit Plaza, 2^nd Floor, New Prabhadevi Road, Prabhadevi, Mumbai – 400025, Maharashtra, India
Tel. No.:	91-22-43332500
Corporate Office 2 :	No.A, Unit No. 112-120, 1st Floor, Harihar Corporation Dapode Village, Mankoli Naka, Taluka Bhiwandi, District Thane – 421302, Maharashtra, India
Branches :	Located At: New Delhi Kolkata Chennai Bangalore Kochi

DIRECTORS

As on 27.09.2014

Name :	Mr. Nitin Kishore Motani
Designation :	Chairman
Name :	Mr. Shilesh S. Shah
Designation :	Managing Director
Name :	Mr. Sharad S. Shah
Designation :	Wholetime Director
Name :	Mr. Saurabh K. Motani
Designation :	Wholetime Director
Name :	Vaibhav Jai Desai
Designation :	Wholetime Director
Date of Birth :	22.12.1971
Qualification :	B.E(Mech), DBM, DIM
Name :	Mr. Vijay Choraria
Designation :	Director
Date of Birth :	10.08.1964
Qualification :	CA, BGL
Name :	Mr. Subramanian Sharma
Designation :	Director
Date of Birth :	30.011966
Qualification :	B.Com, ACA.
Name :	Mr. Narendra P Mahajani
Designation :	Director
Date of Birth :	03.08.1968
Qualification :	B.Com, FCA ,FICWA.

SHAREHOLDING PATTERN

As on 30.09.2014

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	428152	10.77
Bodies Corporate	1310147	32.95
Sub Total	1738299	43.72
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	1738299	43.72
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	224606	5.65
Individuals
Individual shareholders holding nominal share capital up to Rs. 1 lakh	985697	24.79
Individual shareholders holding nominal share capital in excess of Rs. 1 lakh	843370	21.21
Any Others (Specify)	184428	4.64
Clearing Members	9171	0.23
Non Resident Indians	175257	4.41
Sub Total	2238101	56.28
Total Public shareholding (B)	2238101	56.28
Total (A)+(B)	3976400	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and seller of narrow woven fabrics, hook and loop tape fasteners, webbings, knitted elastics, satin ribbons/checks ribbons, woven elastics.
Products :	Sew on hook and loop tape fasteners Pressure sensitive hook and loop tape fasteners (Self adhesive tape) Hook and Loop tape fasteners flame regardant variety Embossed loop tape Regular knitted elastic Frilled elastic Fibrilated elastic
Brand Names :	Sky Magic Sky Wonder SKABLETIE Sky Weld Sky S.A.T
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Not Available
Purchasing :	Not Available

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Available

Customers :

Not Available

No. of Employees :

Not Available

Bankers :

• Oriental Bank of Commerce
• Karur Vysya Bank Limited
• South Indian Bank Limited
• Dombivali Nagari Sahakari Bank Limited

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
From Banks
Term Loans	3.719	33.235
Vehicle Loans	1.880	4.113
From other parties
Vehicle Loan	0.725	1.277
SHORT TERM BORROWINGS
Loans repayable on demand
From Banks
Dombivili Nagari Sahakari Bank Limited – CC	30.329	30.185
Kotak Mahindra Bank Limited – CC	0.000	16.116
Oriental Bank of Commerce – CC	7.847	7.552
Oriental Bank of Commerce – Packing Credit	9.951	9.308
The South Indian Bank Limited – CC	7.147	9.720
The South Indian Bank Limited – Letter of Credit	3.569	8.216
The Karur Vysya Bank Limited – CC	30.529	30.937
The Karur Vysya Bank Limited – Letter of Credit	3.352	21.873
Total	99.048	172.532

Auditors :
Name :	Thanawala and Company Chartered Accountants
Memberships :	Not Available
Collaborators :	Not Available
Enterprises over which key management personnel exercise significant influence :	S.K. Exports S.K. Silks Shamots International S.K. Overseas S.K. Windtronics Private Limited Jask Invogue Private Limited Skay Finvest Private Limited Novitas India Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/-each	Rs.150.000 Millions
500000	Redeemable Preference Shares	Rs.100/-each	Rs.50.000 Millions
	Total		Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3976400	Equity Shares	Rs.10/-each	Rs.39.764 Millions

Note :

Shareholders holding more than 5% shares in the company

Name of Shareholders	As at March 31, 2014
	No of Equity shares held	% of Holding
Skay Finvest Private Limited	1310147	32.95%

Reconciliation of the number of shares

Particulars	Equity Shares		Preference Shares
	Number	Rs. In Millions	Number	Rs. In Millions
Shares Outstanding at the beginning of the year	3976400	39.764	3976400	39.764
Shares Issued during the year	---	---	---	---
Shares bought back during the year	---	---	---	---
Shares outstanding at the end of the year	3976400	39.764	3976400	39.764

Right and restrictions attached to the shares

The company has only one class of equity shares. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in indian rupees. In the event of liquidation of the Company. The holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

FINANCIAL DATA

[all figures are in Rupees Millions]

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	39.764	39.764	39.764
(b) Reserves & Surplus	110.467	103.596	107.047
(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)	150.231	143.360	146.811
(3) Non-Current Liabilities
(a) long-term borrowings	6.324	38.625	58.619
(b) Deferred tax liabilities (Net)	11.825	12.842	14.191
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.806
Total Non-current Liabilities (3)	18.149	51.467	73.616
(4) Current Liabilities
(a) Short term borrowings	170.999	186.581	163.035
(b) Trade payables	107.849	112.368	103.998
(c) Other current liabilities	61.217	60.863	77.509
(d) Short-term provisions	15.699	17.274	14.581
Total Current Liabilities (4)	355.764	377.086	359.123
TOTAL	524.144	571.913	579.550
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	146.211	165.578	171.853
(ii) Intangible Assets	0.316	1.008	1.674
(iii) Capital work-in-progress	1.365	1.902	4.336
(iv) Assets held for disposal	0.145	1.979	0.079
(v) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	21.709	21.709	21.709
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	60.277	58.266	42.669
(e) Other Non-current assets	0.741	0.000	0.026
Total Non-Current Assets	230.764	250.442	242.346
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	142.138	150.345	184.364
(c) Trade receivables	95.865	108.339	91.964
(d) Cash and cash equivalents	8.044	11.385	7.595
(e) Short-term loans and advances	8.084	5.830	5.282
(f) Other current assets	39.249	45.572	47.999
Total Current Assets	293.380	321.471	337.204
TOTAL	524.144	571.913	579.550

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	550.555	611.711	816.195
	Other Income	10.518	19.395	17.250
	TOTAL	561.073	631.106	833.445
Less	EXPENSES
	Cost of Materials Consumed	315.338	329.758	508.713
	Purchases of Stock-in-Trade	48.263	68.293	40.105
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(8.484)	24.616	(17.130)
	Employees benefits expense	66.125	64.974	130.741
	Other expenses	89.951	109.859	174.152
	TOTAL	511.193	597.500	836.581
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	49.880	33.606	(3.136)
Less	FINANCIAL EXPENSES	32.883	28.854	31.844
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	16.997	4.752	(34.980)
Less/ Add	DEPRECIATION/ AMORTISATION	13.697	14.503	19.435
Add	EXCEPTIONAL ITEMS	3.955	3.545	0.000
	PROFIT/ (LOSS) BEFORE TAX	7.255	(6.206)	(54.415)
Less	TAX	0.384	(2.756)	(7.166)
	PROFIT/ (LOSS) AFTER TAX	6.871	(3.450)	(47.249)
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	102.385	104.965	142.044
	Freight	4.040	1.679	2.881
	Insurance	0.352	0.577	0.059
	Other charges	0.338	0.000	0.095
	TOTAL EARNINGS	107.115	107.221	145.079
	IMPORTS
	Raw Materials	167.659	220.288	232.878
	Components and Stores parts	0.030	0.589	2.768
	Capital Goods	0.207	2.445	3.383
	TOTAL IMPORTS	167.896	223.322	239.029
	Earnings / (Loss) Per Share (Rs.)	1.73	(0.87)	(11.88)

QUARTERLY RESULTS

Particulars (Rs. In Millions)	Jun 2014
Audited / Unaudited	Unaudited
Net Sales	135.200
Total Expenditure	127.000
PBIDT (Excl OI)	8.200
Other Income	5.500
Operating Profit	13.700
Interest	6.600
Exceptional Items	-3.500
PBDT	3.600
Depreciation	3.100
Profit Before Tax	0.500
Tax	0.000
Provisions and contingencies	0.000
Profit After Tax	0.500
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	0.500

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	1.24	(0.56)	5.78
Operating Profit Margin (PBDIT/Sales)	(%)	9.05	5.49	(0.38)
Return on Total Assets (PBT/Total Assets}	(%)	1.45	(1.14)	(9.83)
Return on Investment (ROI) (PBT/Networth)		0.05	(0.04)	(0.37)
Debt Equity Ratio (Total Debts/Networth)		1.18	1.57	1.51
Current Ratio (Current Asset/Current Liability)		0.82	0.85	0.94

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	39.764	39.764	39.764
Reserves & Surplus	107.047	103.596	110.467
Net worth	146.811	143.360	150.231
long-term borrowings	58.619	38.625	6.324
Short term borrowings	163.035	186.581	170.999
Total borrowings	221.654	225.206	177.323
Debt/Equity ratio	1.510	1.571	1.180

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	816.195	611.711	550.555
		(25.053)	(9.998)

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	816.195	611.711	550.555
Profit	(47.249)	(3.450)	6.871
	(5.79%)	(0.56%)	1.25%

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	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	Yes
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

Litigation Details :

Bench:-Bombay

	Presentation Date:-				08/10/2013
	Lodging No.:-	CPL/690/2013	Filing Date:-	08/10/2013	Reg. No.:-	CP/154/2014	Reg. Date:-	26/02/2014
Petitioner:- Sistema Shyam Teleservices Limited Respondent:- Sky Industries Limited
Petn.Adv.:- Amol Doijode Resp.Adv.:- Ram and Company

District:-

MUMBAI

Bench:-	SINGLE
Status:-	Pre-Admission	Category:-	COMPANY PETITION U/SEC 433,434,439 COMPANIES ACT

Last Date:-	22/01/2015	Stage:-	FOR ADMISSION - FRESH [ORIGINAL SIDE MATTERS]
Last Coram:-	HON'BLE SHRI JUSTICE S.J. KATHAWALLA
Act :-	Companies Act & Rules 1956	Under Section:-	434

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10528813	01/10/2014 *	125,000,000.00	DOMBIVLI NAGARI SAHAKARI BANK LTD.	5/8,SAMBHAVA CHAMBERS, P.M.ROAD,FORT, MUMBAI, Maharashtra - 400001, INDIA	C34335091
2	10318882	26/05/2010	1,742,213.00	DOMBIVLI NAGARI SAHAKARI BANK LIMITED	Madhukunj, plotno. P/52,M.I.D.C. Phase II,, Kalyan-Shil Road,Sonarpada, Dombivli east, DOMBIVLI, Maharashtra - 421204, INDIA	B06662704
3	10229316	12/01/2011 *	25,000,000.00	DOMBIVLI NAGARI SAHAKARI BANK LIMITED	Madhukunj, plotno. P/52,M.I.D.C. Phase II,, Kalyan-Shil Road,Sonarpada, Dombivli east, DOMBIVLI, Maharashtra - 421204, INDIA	B06659940
4	10318881	30/04/2010	500,000.00	DOMBIVLI NAGARI SAHAKARI BANK LIMITED	Madhukunj, plotno. P/52,M.I.D.C. Phase II,, Kalyan-Shil Road,Sonarpada, Dombivli east, DOMBIVLI, Maharashtra - 421204, INDIA	B06662027
5	10296297	28/04/2010	105,300,000.00	THE KARUR VYSYA BANK LIMITED	POST BOX NO.21,, ERODE ROAD, KARUR, Tamil Nadu - 639002, INDIA	A87942025
6	10318879	22/04/2010	500,000.00	DOMBIVLI NAGARI SAHAKARI BANK LIMITED	Madhukunj, plotno. P/52,M.I.D.C. Phase II,, Kalyan-Shil Road,Sonarpada, Dombivli east, DOMBIVLI, Maharashtra - 421204, INDIA	B06661680
7	10240795	17/03/2010	485,000.00	DOMBIVLI NAGARI SAHAKARI BANK LIMITED	Madhukunj, plotno. P/52,M.I.D.C. Phase II,, Kalyan-Shil Road,Sonarpada, Dombivli east, DOMBIVLI, Maharashtra - 421204, INDIA	A88112115
8	10318878	22/02/2010	500,000.00	DOMBIVLI NAGARI SAHAKARI BANK LIMITED	Madhukunj, plotno. P/52,M.I.D.C. Phase II,, Kalyan-Shil Road,Sonarpada, Dombivli east, DOMBIVLI, Maharashtra - 421204, INDIA	B06661045
9	10240797	22/02/2010	3,870,000.00	DOMBIVLI NAGARI SAHAKARI BANK LIMITED	Madhukunj, plotno. P/52,M.I.D.C. Phase II,, Kalyan-Shil Road,Sonarpada, Dombivli east, DOMBIVLI, Maharashtra - 421204, INDIA	A88110226
10	10070201	07/05/2007	60,000,000.00	DOMBIVLI NAGARI SAHAKARI BANK LIMITED	1ST FLOOR SAMBAWA CHEMBERS SIR PM ROAD, OPP BOMBA  Y BAZAR FORT MUMBAI, MUMBAI, Maharashtra - 400001, INDIA	A15190879

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
SHORT TERM BORROWINGS
Loans and advances from related parties
Loan from Directors	17.486	5.650
Loan from Shareholders	22.192	12.860
Advances from group companies	0.564	0.000
Inter Corporate Deposits
From Related Party	35.533	34.164
From Others	2.500	0.000
Total	78.275	52.674

RESULTS OF OPERATIONS

The turnover during the year was Rs.550.500 Millions as compared to previous years Rs.611.700 Millions, a decrease of about 10%. The major reason for decrease in the turnover was due to non operation of Navi Mumbai unit owing to labor unrest.

FIXED ASSETS

• Leasehold Land
• Buildings
• Plant and Machinery
• Furniture and Fixture
• Vehicles
• Office Equipments
• Computers

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.50
UK Pound	1	Rs.92.16
Euro	1	Rs.69.62

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	PNM

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	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	YES
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		49

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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