MIRA INFORM REPORT

Report No. :	312159
Report Date :	14.03.2015

IDENTIFICATION DETAILS

Name :	VWF INDUSTRIES PRIVATE LIMITED (w.e.f.26.06.1995)
Formerly Known As :	VIJAY WIRES AND FILMENTS PRIVTE LIMITED
Registered Office :	No. 90, K. R. Sagar Road, Metagalli, Mysore – 570 016, Karnataka
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	09.05.1978
Com. Reg. No.:	08 - 003314
Capital Investment / Paid-up Capital :	Rs.6.000 Million
CIN No.: [Company Identification No.]	U13200KA1978PTC003314
TAN No.: [Tax Deduction & Collection Account No.]	BLRV03606B
PAN No.: [Permanent Account No.]	AAACV7037R
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is Engaged in the manufacturer and reconditioning of various types of Diamond dies for wire drawing metals like tungsten, Molybdenum, Copper, Steel, Brass, Gold and Silver.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 150000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating takes into consideration company’s healthy operational risk profile marked by sound liquidity position and fair profitability margins of their company. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered 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 – 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	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	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/Factory :	No. 90, K. R. Sagar Road, Metagalli, Mysore – 570016, Karnataka, India
Tel. No.:	91-821-2582247/2582459
Fax No.:	91-821-2582427
E-Mail :	alai@vwfindustries.com vwf@sify.com info@vwfindustries.com
Website :	www.vwfindustries.com

DIRECTORS

As on: 13.09.2014

Name :

Mr. Raghunath Brahmavar Pai

Designation :

Chairman Cum Managing Director

Address :

“Konark”, No. 427, Gokulam 3^rd Stage, Mysore – 570 002, Karnataka, India

Date of Birth/Age :

13.10.1939

Date of Appointment :

01.04.2005

DIN No.:

00291776

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	U13200KA1978PTC003314	VWF INDUSTRIES PRIVATE LIMITED	Managing director	01/04/2005	09/05/1979	Active	NO
2	U85110KA1986PLC007580	TRANSCREDIT AND CAPITAL LIMITED.	Director	24/04/1986	24/04/1986	Active	NO
3	U85110KA1994PTC015431	LITETRONICS VIJAY(INDIA)PRIVATE LIMITED	Director	29/03/1994	29/03/1994	Active	NO
4	U32309KA1994PTC015605	VIJAY LITETRONICS COMPONENTS PRIVATE LIMITED	Director	11/02/2000	11/02/2000	Active	NO
5	U85110KA1994PTC016175	VIJAY PRECISON DIES PRIVATE LIMITED	Director	25/09/2006	25/09/2006	Active	NO

Name :

Mr. Raghunath Ajith Pai

Designation :

Managing Director

Address :

“Konark”, No. 427, Gokulam 3^rd Stage, Mysore – 570 002, Karnataka, India

Date of Birth/Age :

14.08.1966

Date of Appointment :

20.03.1990

DIN No.:

00279375

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	U85110KA1983PTC005327	UNIQUE WIRES PRIVATE LIMITED	Director	01/06/1989	01/06/1989	-	Active	NO
2	U13200KA1978PTC003314	VWF INDUSTRIES PRIVATE LIMITED	Managing director	20/03/1990	20/03/1990	-	Active	NO
3	U32309KA1994PTC015605	VIJAY LITETRONICS COMPONENTS PRIVATE LIMITED	Director	23/05/1994	23/05/1994	-	Active	NO
4	U29220KA1974PTC002521	WOODBORE PRIVATE LIMITED	Director	18/06/1994	18/06/1994	-	Amalgamated	NO
5	U85110KA1994PTC016175	VIJAY PRECISON DIES PRIVATE LIMITED	Director	02/09/1994	02/09/1994	-	Active	NO
6	U51101KA1966PTC001638	LINAS ENGG ENTERPRISES PRIVATE LIMITED	Director	09/03/1996	09/03/1996	-	Amalgamated	NO
7	U85110KA1994PTC015431	LITETRONICS VIJAY(INDIA)PRIVATE LIMITED	Director	07/02/2003	07/02/2003	-	Active	NO
8	U40107GJ1994PTC072015	NETPRO RENEWABLE ENERGY(INDIA)PRIVATE LIMITED.	Director	10/11/2007	10/11/2007	20/10/2008	Active	NO
9	U15139KA2008PTC047724	GREEN EARTH FRESH PRODUCE PRIVATE LIMITED	Director	09/09/2008	09/09/2008	-	Active	NO
10	U74999KA2008PTC047719	ENTECH SIGNS & DISPLAYS INDIA PRIVATE LIMITED	Director	09/09/2008	09/09/2008	-	Active	NO

Name :

Mr. Rajesh Thonse Pai

Designation :

Director

Address :

No.23, Anantha Nagar, Manipal, Udipi – 576119, Karnataka, India

Date of Birth/Age :

05.03.1963

Date of Appointment :

27.03.1993

DIN No.:

00289708

Name :

Mr. Narayana Srinivas Murthy

Designation :

Director

Address :

120, 20^th Main Road, 12B, Cross, J. P. Nagar, Bangalore – 560078, Karnataka, India

Date of Birth/Age :

29.03.1951

Date of Appointment :

22.06.1990

DIN No.:

05196524

Name :

Mr. Roop Sing Chawhan

Designation :

Director

Address :

No. 453, 6^th Phase, J. P. Nagar, Bangalore – 560078, Karnataka, India

Date of Birth/Age :

10.08.1948

Date of Appointment :

29.02.1992

DIN No.:

00568833

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	U13200KA1978PTC003314	VWF INDUSTRIES PRIVATE LIMITED	Director	29/02/1992	29/02/1992	-	Active	NO
2	L29190KA1985PLC007363	SIKA INTERPLANT SYSTEMS LIMITED	Director	30/07/2008	30/07/2008	-	Active	NO
3	U15511AP2001PLC036282	SOVEREIGN DISTILLERIES LIMITED	Director	09/09/2009	12/12/2008	29/09/2010	Active	NO
4	L72200KA1995PLC018734	LOGIX MICROSYSTEMS LIMITED	Director	29/09/2010	29/01/2010	-	Active	NO
5	U27102KA2003PTC032717	BENAKA SPONGE IRON PRIVATE LIMITED	Director	29/09/2010	07/04/2010	02/12/2013	Active	NO
6	L27209KA1981PLC004343	BHUWALKA STEEL INDUSTRIES LIMITED	Director	28/09/2010	01/06/2010	21/11/2013	Active	NO
7	U28900MH1971PTC014993	SIKKA N SIKKA ENGINEERS PRIVATE LIMITED	Additional director	30/11/2011	30/11/2011	-	Active	NO
8	U55205KA2011PTC061497	SIKA TOURISM PRIVATE LIMITED	Director	05/12/2011	05/12/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. G. Radhakrishnan
Designation :	President
Name :	Mr. M.N. Deshpande
Designation :	Vice President
Name :	Mr. M.C. Bhansali
Designation :	Practicing Company Secretary
Address:	# 1491, Srinivasa Complex, 2nd Floor, Shivarampet, Mysore – 570 001, Karnataka, India

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 13.09.2014

Names of Shareholders	No. of Shares
Ajith R Pai	35000
Alaka R Pai	13200
Alok Gupta	2000
Gopalakrishna Pai	10000
Raghunath B Pai	80000
Rajaram V Balig	9240
Rajendra B Pai	2000
Ramanath P Pai	24000
Ramanath P Pai	25788
Shobha R. Pai	24000
Shobha R. Pai	26000
Surekha Kamath	74000
Surekha Kamath	11000
Ananth Prabhu	6000
Rajesh T. Pai	2000
Trust Rajahee	43000
S N Murthy	2000
Jayaprakash K Kamath	15000
Rhea R Pai	4670
Prathibha A Pai	5432
Raghunath B Pai (HUF)	96300
Nikhil A Pai	8670
Sandhya J Kamath	2020
Olga B Pai	52400
Olga B Pai	6000
Ajith R Pai (HUF)	3000
Nihal A Pai	5040
Dinesh V Baliga	9240
Vinod B Shenoy	3000
Total	600000

Equity Share Break up (Percentage of Total Equity)

As on: 13.09.2014

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	43.00
Directors or relatives of Directors	51.00
Other top fifty shareholders	6.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is Engaged in the manufacturer and reconditioning of various types of Diamond dies for wire drawing metals like tungsten, Molybdenum, Copper, Steel, Brass, Gold and Silver.
Products :	-
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :	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 :

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 :

· Syndicate Bank, K. R. Circle Branch, Mysore – 570001, Karnataka, India

Facilities :

SECURED LOANS	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Cash Credit (Secured by Hypothecation of all present and future inventories, book debts, trade bills, sight bills, cheques and drafts)	10.577	7.554
Short Term Borrowings
Syndicate Bank
Packing credit loan/ post shipment Demand Loan (Secured by on pledge of finished goods / export bills receivable) (Fully guaranteed by directors)	2.211	10.748
Total	12.788	18.302

Auditors :
Name :	Hariaharan and Company Chartered Accountant
Address :	No. 4581, “Gomathi”, N. R. Mohalla, Mysore – 570008, Karnataka, India
PAN No.:	AAAFH7690H
Memberships :	Not Available
Collaborators :	Not Available
Related Party	· Vijay Halocoils (Private) Limited · Unique Wires (Private) Limited · Vijay Precision Dies (Private) Limited · Vijay Litetronics Limited · Litetronics Vijay India (Private) Limited · Entech Signs And Displays India (Private) Limited · Green Earth Fresh Produce (Private) Limited · Soul Food Company

CAPITAL STRUCTURE

AS ON 13.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Million
100000	Preference Shares	Rs.100/- each	Rs.10.000 Million
	Total		Rs.40.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.10/- each	Rs.6.000 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	6.000	6.000	6.000
(b) Reserves & Surplus	45.775	42.079	34.355
(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)	51.775	48.079	40.355
(3) Non-Current Liabilities
(a) long-term borrowings	10.577	7.554	9.528
(b) Deferred tax liabilities (Net)	3.427	3.153	3.151
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	14.004	10.707	12.679
(4) Current Liabilities
(a) Short term borrowings	18.139	28.167	29.832
(b) Trade payables	18.331	27.526	10.588
(c) Other current liabilities	0.000	0.000	0.000
(d) Short-term provisions	16.292	22.466	17.102
Total Current Liabilities (4)	52.762	78.159	57.522
TOTAL	118.541	136.945	110.556
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	19.291	20.551	19.160
(ii) Intangible Assets	0.000	0.000	0.000
(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	1.353	1.353	1.353
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	4.180	3.044	4.141
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	24.824	24.948	24.654
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	22.051	31.492	16.127
(c) Trade receivables	67.491	72.278	61.748
(d) Cash and cash equivalents	0.134	2.576	0.720
(e) Short-term loans and advances	4.041	5.651	7.307
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	93.717	111.997	85.902
TOTAL	118.541	136.945	110.556

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2014	31.03.2013	31.03.2012
	SALES
		Income		292.965	278.446	261.801
		Other Income		4.645	1.833	4.606
		TOTAL (A)		297.610	280.279	266.407
Less	EXPENSES
		Cost of Materials Consumed		169.786	159.829	139.822
		Purchase of Stock-in-trade		0.792	0.360	1.782
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		0.911	(0.044)	1.862
		Employee Benefits Expenses		25.432	24.794	22.099
		Other Expenses		83.888	75.082	76.712
		TOTAL (B)		280.809	260.021	242.277
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			16.801	20.258	24.130
Less	FINANCIAL EXPENSES (D)			3.805	2.491	3.631
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			12.996	17.767	19.499
Less	DEPRECIATION/ AMORTISATION (F)			2.637	2.452	2.673
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			10.359	15.315	17.826
Less	TAX (H)			3.874	5.802	1.895
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			6.485	9.513	15.931
	EARNINGS IN FOREIGN CURRENCY
			Export Earnings	139.780	151.675	142.269
			Other Earnings	1.473	1.810	1.954
	TOTAL EARNINGS			141.253	153.485	144.223
	IMPORTS
			Raw Materials	142.018	150.163	114.480
			Stores & Spares	1.113	1.614	0.747
			Capital Goods	0.729	0.479	0.000
	TOTAL IMPORTS			143.860	152.256	115.227
	Earnings Per Share (Rs.)			10.81	15.85	26.55

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	2.21	3.42	6.09
Operating Profit Margin (PBIDT/Sales)	(%)	5.73	7.28	9.22
Return on Total Assets (PBT/Total Assets}	(%)	8.84	11.29	16.32
Return on Investment (ROI) (PBT/Networth)		0.20	0.32	0.44
Debt Equity Ratio (Total Debt /Networth)		0.55	0.74	0.98
Current Ratio (Current Asset/Current Liability)		1.78	1.43	1.49

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	6.000	6.000	6.000
Reserves & Surplus	34.355	42.079	45.775
Net worth	40.355	48.079	51.775
long-term borrowings	9.528	7.554	10.577
Short term borrowings	29.832	28.167	18.139
Total borrowings	39.360	35.721	28.716
Debt/Equity ratio	0.975	0.743	0.555

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	261.801	278.446	292.965
		6.358	5.214

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	261.801	278.446	292.965
Profit	15.931	9.513	6.485
	6.09%	3.42%	2.21%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

OPEATIONS:

The total turnover has increased by 5% during the year. The exports for the current year were Rs.139.800 Million while compared to the previous year’s figure of Rs.152.500 Million, a decrease of 8%, while domestic sales achieved an increase of 22%. Profitability was eroded mainly due to the reduction in exports.

UNSECURED LOANS:

Particulars	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Short Term Borrowings
Deposits from related parties:
Fixed deposits from shareholders	15.014	16.450
Loans and advances from related parties:
Other loans and Advances:
Advances from supplies:
Others	0.915	0.969
Total	15.929	17.419

CONTINGENT LIABILITIES:

(Rs. in million)

PARTICULARS	31.03.2014
Claims against the company not acknowledged as debt	0.226
Guarantees	-
Unexpired lease rentals of Car	1.646
Total	1.872

FIXED ASSETS:

· Land

· Building

· Plant and machinery

· Furniture and Fixture

· Vehicles

· Office Equipment

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.67
UK Pound	1	Rs.93.16
Euro	1	Rs.66.42

INFORMATION DETAILS

Analysis Done by :	KRN
Report Prepared by :	MTN

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	5
--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		48

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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