MIRA INFORM REPORT

Report No. :	348198
Report Date :	03.11.2015

IDENTIFICATION DETAILS

Name :	FLOWSERVE INDIA CONTROLS PRIVATE LIMITED (w.e.f. 12.01.1998)

Formerly Known As :	VALTEK INTERNATIONAL PRIVATE LIMITED

Registered Office :	Plot No.4, 1-A, Road No.8, Export Promotion Industrial Park, Whitefield, Bangalore – 560066, Karnataka
Tel. No.:	91-80-40146200

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	13.11.1996

Com. Reg. No.:	08-021388

Capital Investment / Paid-up Capital :	Rs. 173.639 Million

CIN No.: [Company Identification No.]	U85110KA1996PTC021388

IEC No.:	0703005308

TAN No.: [Tax Deduction & Collection Account No.]	Not Available

PAN No.: [Permanent Account No.]	AAACF3286G

Legal Form :	Private Limited Liability Company

Line of Business :	Subject is engaged in manufacture of Valves, Pumps, Pump parts, Valve parts and Actuators and also engaged in the designing services (Engineering) of Valves, Pumps and Seals.

No. of Employees :	700 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (58)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a wholly owned subsidiary of foreign company (Flowserve International Inc, USA) incorporated in the year 1996. For the FY2014, the company has achieved decent revenue marked by good profitability margin. Operational performance has improved as compared to previous year. The company possesses healthy financial risk profile marked by debt free capital structure, adequate cash accruals and good liquidity position. Trade relations are fair. Business is active. Payments are regular and as per commitment. In view of strong holding of promoters, 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 – March 31, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

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 31-03-2015.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Vijay
Designation :	Admin Manager
Contact No.:	91-80-33247903
Date :	02.11.2015

LOCATIONS

Registered Office :	Plot No.4, 1-A, Road No.8, Export Promotion Industrial Park, Whitefield, Bangalore – 560066, Karnataka, India
Tel. No.:	91-80-40146200
Fax No.:	91-80-28410286
E-Mail :	financeindia@flowserve.com
Website :	http://www.flowserve.com

Head Office :	“The Oval”, III Floor, New No.10-12, Venkatnarayana Road, T. Nagar, Chennai – 600017, Tamilnadu, India
Tel No.:	91-44-24324800/ 24504100
Fax No.:	91-44-24328754

Corporate Office :	Plot No.31-C, 2^nd Cross, Veerasandra Industrial Estate, Hosur Road, Bangalore – 560100, Karnataka, India
Tel. No.:	91-80-33247903

Factory 1 :	S. F. Nos.136/3 and 137, Myleripalayam Road, Coimbatore – 641032, Tamilnadu, India
Tel. No.:	91-422-2612117/ 2612001
Fax No.:	91-422-2612002

Factory 1 :	Located at : Bangalore Chennai

Branch Office :	B-8, CMDA Industrial Area, Maraimalai Nagar, Kanchipuram-603209, Tamilnadu, India

DIRECTORS

As on 31.03.2015

Name :

Mr. Palghat Subramanian Sivaramakrishnan

Designation :

Director

Address :

Block 22, 04-04, Melville Park, Simeri Street 1, Singapore – 529945

Date of Birth/Age :

15.06.1958

Date of Appointment :

31.03.2006

DIN No.:

00194097

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	U85110KA1996PTC021388	FLOWSERVE INDIA CONTROLS PRIVATE LIMITED	Director	31/03/2006	31/03/2006	-	Active	NO
2	U74990PN2011PTC149561	Lawrence Pumps India Private Limited	Director	04/02/2012	04/02/2012	-	Under liquidation	NO

Name :

Mr. Ajit Frances Devotta

Designation :

Director

Address :

No. 19, Tanjore Road, T. Nagar, Chennai – 600017, Tamilnadu, India

Date of Birth/Age :

04.02.1960

Qualification :

BE Mechanical, MS Industrial Engineering, MBA in Finance

Experience :

28 years

Date of Appointment :

23.03.2009

DIN No.:

00349560

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	U29100TZ1995PTC014379	DRESSER VALVE INDIA PRIVATE LIMITED	Managing director	29/03/2005	29/03/2005	29/02/2008	Active	NO
2	U31200TN2007PTC065429	ARMSTRONG INTERNATIONAL PRIVATE LIMITED	Managing director	23/07/2008	24/04/2008	23/01/2009	Active	NO
3	U85110KA1996PTC021388	FLOWSERVE INDIA CONTROLS PRIVATE LIMITED	Director	23/03/2009	23/03/2009	-	Active	NO

Name :

Mr. Asokan Venugopalan

Designation :

Whole Time Director

Address :

No.67/12, K g Layout Bharathi Park, 8^th Cross Road, Coimbatore – 641011, Tamilnadu, India

Date of Birth/Age :

04.06.1964

Qualification :

BE – Mechanical

Experience :

24 years

Date of Appointment :

20.09.2011

DIN No.:

03629587

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	U85110KA1996PTC021388	FLOWSERVE INDIA CONTROLS PRIVATE LIMITED	Whole-time director	20/09/2011	20/09/2011	-	Active	NO
2	U74990PN2011PTC149561	Lawrence Pumps India Private Limited	Director	04/02/2012	04/02/2012	-	Under liquidation	NO

Name :

Malcolm Harold Platt

Designation :

Additional Director

Address :

2004 Montecito TRL, Southlake, Texas, 760092, United States of America

Date of Appointment :

30.09.2015

DIN No.:

07049876

Name :

Julie Ann Peffer

Designation :

Additional Director

Address :

1301 Noble Way, Flower Mound, Texas, 75022, , United States of America

Date of Appointment :

30.09.2015

DIN No.:

06956068

KEY EXECUTIVES

Name :	S. Sriram
Designation :	Company Secretary
Address :	EC-1, Magan Samara Mews, 159/3, 3^rd Main, J.P, Nagar, 7^th Phase, Panduranga Nagar, Bangalore – 560076, Karnataka, India
Date of Birth/Age :	02.09.1970
Date of Appointment :	26.06.2012
PAN No.:	ACSPS2469R

Name :	Mr. Vijay
Designation :	Admin Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Names of Shareholders		No. of Shares
Flowserve International Inc., United States of America		17363939
Sriram Santhanam as Nominee to Flowserve International Inc., United States of America		1
Total		17363940

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	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in manufacture of Valves, Pumps, Pump parts, Valve parts and Actuators and also engaged in the designing services (Engineering) of Valves, Pumps and Seals.

Products/ Services :

Item Code No.	Product/ Services Description
85167990	Flowserve Engineering Services
85167990	Heavy Duty Actuator
85167990	Limitorque
85167990	Pumps

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

Finished Goods

Countries :

· Dubai

· Germany

· Saudi Arabia

Imports :

Not Available

Terms :

Selling :

Cash / L/C / Credit

Purchasing :

Cash / L/C / Credit

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Payment Behaviour	Market Goodwill	Overall
Not Divulged	Not Divulged	Not Divulged

Remark:

Not Divulged

Customers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Product Quality	Delivery Behaviour	Overall
Not Divulged	Not Divulged	Not Divulged

Remark:

Not Divulged

No. of Employees :

700 (Approximately)

Bankers :

Bank Name	The Royal Bank of Scotland
Branch	Whitefield, Bangalore - 560066, Karnataka, India
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 Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Auditors :
Name :	Lovelock and Lewes Chartered Accountants
Address :	Flat No 102, Gopalan Royal Palm Apartments, 3rd Main, Lalbahadur Sastri Nagar, Bangalore, Karnataka, India
PAN N Income-tax PAN of auditor or auditor's firm :	AABFL5878L

Memberships :	--

Collaborators :	--

Holding company:	Flowserve International Inc. United States of America

Ultimate holding company :	Flowserve Corporation, United States of America

Fellow subsidiaries:	Flowerve Canada Corporation Flowserve - Al Rushaid Company Limited Flowserve (Austria) GmbH Flowserve (Thailand) Limited Flowserve / Abahsain Flow Control Company Limited Flowserve Ahaus GmbH Flowserve Australia Pty. Limited Flowserve B.V. Flowserve Control Valves GmbH Flowserve Essen GmbH Flowserve Flow Control GmbH Flowserve Fluid Motion and Control (Suzhou) Company Limited Flowserve France S.A.S. Flowserve GB Limited Flowserve Gulf FZE Flowserve Hamburg Gmbh Flowserve International Limited United Kingdom Flowserve Japan Company Limited Flowserve KSM Company Limited Flowserve Limitorque Flowserve Limitorque Fluid Power Systems- LFPS Flowserve Ltda.-Brazil Flowserve Management Company Flowserve Netherlands Management B.V. Flowserve Pompes SAS Flowserve Portuguesa Flowserve Pte. Limited Flowserve S. De R.L. De C.V. Flowserve S.A.-Spain Flowserve S.R.L. Flowserve Sanmar Limited Flowserve Shanghai Limited Flowserve South Africa (Proprietary) Limited Flowserve Spain S.L. Flowserve Sweden Ab Flowserve US Inc. Gestra AG Lawrence Pumps Asia Pte. Limited Palmstierna International AB Thompsons, Kelly and Lewis Pty. Limited Valbart S.R.L. Worthington S.R.L. Flowserve Micro finish - Hubli

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

18,750,000	Equity Shares	Rs.10/- each	Rs. 187.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

17,363,940	Equity Shares	Rs.10/- each	Rs. 173.639 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	173.639	173.639	173.639
(b) Reserves & Surplus	4991.141	3601.574	2389.326
(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)	5164.780	3775.213	2562.965

(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	81.087	68.761	31.642
(d) long-term provisions	106.266	136.786	37.212
Total Non-current Liabilities (3)	187.353	205.547	68.854

(4) Current Liabilities
(a) Short term borrowings	0.000	19.726	0.000
(b) Trade payables	1712.487	1495.468	2029.476
(c) Other current liabilities	1279.267	1331.536	767.713
(d) Short-term provisions	165.746	163.714	143.412
Total Current Liabilities (4)	3157.500	3010.444	2940.601

TOTAL	8509.633	6991.204	5572.420

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1865.492	1148.293	734.448
(ii) Intangible Assets	22.553	13.183	8.871
(iii) Capital work-in-progress	208.496	531.872	33.248
(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)	175.554	121.811	57.429
(d) Long-term Loan and Advances	500.592	371.117	347.700
(e) Other Non-current assets	103.642	0.391	0.278
Total Non-Current Assets	2876.329	2186.667	1181.974

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1849.795	1748.131	1771.478
(c) Trade receivables	2293.182	2511.492	2170.872
(d) Cash and cash equivalents	1011.773	171.155	253.751
(e) Short-term loans and advances	449.759	361.904	194.318
(f) Other current assets	28.795	11.855	0.027
Total Current Assets	5633.304	4804.537	4390.446

TOTAL	8509.633	6991.204	5572.420

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
SALES
	Income
	Other Income
	TOTAL (A)	10630.200	8829.200	NA

EXPENSES
	TOTAL (B)	8021.700	6912.300	NA

PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)		2608.500	1916.900

FINANCIAL EXPENSES (D)		3.300	0.050

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2605.200	1916.850

DEPRECIATION/ AMORTISATION (F)		165.400	122.700	NA

PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		2439.800	1794.150

TAX (H)		838.900	581.900

PROFIT/ (LOSS) AFTER TAX (G-H) (I)		1600.800	1212.200	732.720

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3392.700	2180.500	NA

APPROPRIATIONS
	Transfer to General Reserve	244.000	0.000	NA
	Dividend Tax	30.700	0.000	NA
	Interim and Proposed Final Dividend	180.600	0.000	NA
BALANCE CARRIED TO THE B/S		4538.300	3392.750	NA

Earnings / (Loss) Per Share (Rs.)		92.19	69.81	42.1

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operation	2482.067	1500.636	307.207

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Total Income)	(%)	15.06	13.73	NA

Operating Profit Margin (PBIDT/ Total Income)	(%)	24.54	21.71	NA

Return on Total Assets (PBT/Total Assets}	(%)	30.03	28.31	NA

Return on Investment (ROI) (PBT/Networth)		0.47	0.48	NA

Debt Equity Ratio (Total Debt /Networth)		0.00	0.01	0.00

Current Ratio (Current Asset/Current Liability)		1.78	1.60	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	173.639	173.639	173.639
Reserves & Surplus	2389.326	3601.574	4991.141
Net worth	2562.965	3775.213	5164.780

long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	19.726	0.000
Total borrowings	0.000	19.726	0.000
Debt/Equity ratio	0.000	0.005	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Total Income	8829.200	10630.200
		20.398

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	8829.200	10630.200
Profit/ (Loos)	1212.200	1600.800
	13.73%	15.06%

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	Yes
8]	Designation of contact person	Yes
9]	Promoter’s background	Yes
10]	Date of Birth of Proprietor / Partners / Directors	Yes
11]	Pan Card No. of Proprietor / Partners	No
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)	Yes
16]	No. of employees	Yes
17]	Details of sister concerns	Yes
18]	Major suppliers	No
19]	Major customers	No
20]	Banking Details	Yes
21]	Banking facility details	No
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 two years	Yes
27]	Reasons for variation <> 20%	--
28]	Estimation for coming financial year	No
29]	Profitability for last three years	Yes
30]	Major shareholders, if available	Yes
31]	External Agency Rating, if available	No
32]	Litigations that the firm/promoter involved in	--
33]	Market information	--
34]	Payments terms	Yes
35]	Negative Reporting by Auditors in the Annual Report	No

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Loans repayable on demand (Working Capital loans repayble on demand from bank)	0.000	19.726
Total	0.000	19.726

INDEX OF CHARGES NO CHARGES EXIST FOR COMPANY

GENERAL INFORMATION

The company is engaged in manufacture of Valves, Pumps, Pump parts, Valve parts and Actuators. The Company is also engaged in the designing services (Engineering) of Valves, Pumps and Seals. The Company has eight operating units based on the nature of products and services. The Company has manufacturing plants in Bangalore, Coimbatore and Chennai. The company is a private limited company and is a subsidiary of Flowserve International Inc. USA.

BUSINESS PERFORMANCE

Valves Division

The Control Valves Division performance is satisfactory with a Sales and other Income of Rs. 4033.711 Million for the year ending 31st March 2014. This has resulted in the growth of 27% over the previous year. More focus was ensured on the Third party sales and Indian market is continued to a larger extent. The Valves Division performance is satisfactory with Sales and other income Audco of Rs. 1524.258 Million for the year ending 31st March 2014.

Pumps Division

The Pump Division performance is satisfactory with a Sales and other Income of Rs 3714.385 Million for the year ending 31st March 2014. This has resulted in the growth of 9% under the last financial year. The under performance is mainly due to negative exchange fluctuation as well as under completion of expansion of Block-III factory. The Domestic markets for the Pumps and expansion in export markets for different Pumps are also expected in the coming years. The capacity increase through Block III facility construction has started after obtaining necessary approvals and we are expecting the same to come from 2014.

Engineering Centers

There are three engineering centers catering to the need of various Flowserve units worldwide. The Seals Engineering Center located at Chennai, Pumps Engineering Center located in Bangalore and the Valves Engineering Center located at the Valves manufacturing unit are serving on the Design, Engineering services etc. to the whole of Flowserve units across the globe. The revenues recorded were Rs. 661.454 Million for the financial year 2013-14.

Chemical Sector

The FCD Chemical division performance is satisfactory with sales and other Income of Rs. 626.797 Million for the

year ending 31st March 2014.This has resulted in the underperformance of 18% compare to the last financial year due to drop in the orders from intercompany.

FIXED ASSETS

· Freehold Land

· Building

· Plant and Machinery

· Office Equipment

· Furniture and Fixture

· Computer and 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.65.02
UK Pound	1	Rs.99.88
Euro	1	Rs.73.91

INFORMATION DETAILS

Information Gathered by :	DPA

Analysis Done by :	AMR

Report Prepared by :	JYTK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		58

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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