MIRA INFORM REPORT

Report No. :	345322
Report Date :	15.10.2015

IDENTIFICATION DETAILS

Name :	PULSE PHARMACEUTICALS PRIVATE LIMITED
Registered Office :	4F 10, 5^th Floor, Ballad Estates, Taranaka, Secunderabad – 500017, Telangana
Tel. No. :	91-40-27007049
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	09.01.1997
Com. Reg. No.:	36-026151
Capital Investment / Paid-up Capital :	Rs. 62.266 Million
CIN No.: [Company Identification No.]	U24239AP1997PTC026151
IEC No.:	0904010180
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AACCP7815R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Pharmaceutical Products.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 510000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an old and established company incorporated in the year 1997. It has satisfactory track. The rating takes into consideration sound financial risk profile of the company marked by adequate networth base and comfortable gearing in FY15. Further, the company has reported decent growth in its revenue base along with fair profit margin in the year under consideration. The ratings takes into consideration extensive experience of its promoters in the pharmaceuticals industry. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. In view of aforesaid, the company can be considered for business dealings with 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	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating BB+
Rating Explanation	Inadequate credit quality and high credit risk.
Date	24.06.2015

Rating Agency Name	CRISIL
Rating	Short term rating A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	24.06.2015

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.

INFORMATION PARTED BY

Name :	Mr. Suresh Babu Katragadda
Designation :	Additional Director
Contact No.:	91-9346155755
Date :	14.10.2015

LOCATIONS

Registered Office :	4F 10, 5^th Floor, Ballad Estates, Taranaka, Secunderabad – 500017, Telangana, India
Tel. No. :	91-40-27007049
Mobile No. :	91-9346155755 (Mr. Suresh)
Fax No. :	91-40-27014274
E-Mail :	ampulse_2004@yahoo.com suresh@pulespharma.net askus@pulsepharma.net info@pulsepharma.net
Website :	www.pulespharma.net
Factory :	SY No.: 400, 407, 409, Karondi, Roorkee, - 247667, Uttarakhand, India
Tel. No. :	91-1332-232125
Fax No. :	91-1332-232126
E-Mail :	factory@pulsepharma.net
R and D Centre :	Plot No. 28/1/11, B/C Road, No. 15, IDA, Nacharam, Hyderabad-500076, Telangana, India
Tel. No. :	91-40-27007049
Fax No. :	91-40-27014274
E-Mail :	r&d@pulsepharma.net
Warehouse :	12-13-483/A, Nagarjuna Nagar, Tarnaka, Secunderabad-500016, Telangana, India

DIRECTORS

As on 31.03.2015

Name :

Mr. Pushpa Mittra Bhargava

Designation :

Director

Address :

12-5-27, Vijayapuri, Tarnaka, Hyderabad - 500017, Telangana, India

Date of Birth/Age :

22.02.1928

Date of Appointment :

30.09.2013

DIN No. :

00057140

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	L24110TG1993PLC016112	AVON ORGANICS LTD	Director	31/01/03	31/01/03	01/08/09	Active	NO
2	U24232TG2007PTC052358	VRINDA LIFE SCIENCES PRIVATE LIMITED	Additional director	22/01/10	22/01/10	-	Active	NO
3	U73100TG2010PTC067765	EDB LIFE SCIENCES INDIA PRIVATE LIMITED	Director	31/03/10	31/03/10	-	Active	NO
4	U73200TG2004NPL043436	GENOME FOUNDATION	Director	01/08/12	01/08/12	-	Active	NO
5	U24239AP1997PTC026151	PULSE PHARMACEUTICALS PRIVATE LIMITED	Director	30/09/13	01/10/12	-	Active	NO

Name :

Mr. Venkat Ram Babu Katragadda

Designation :

Director

Address :

206, Divya Enclave, Vijayapuri, Taranaka, Secunderabad - 500017, Telangana, India

Date of Birth/Age :

07.01.1965

Date of Appointment :

09.01.1997

DIN No. :

00300647

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	U24239AP1997PTC026151	PULSE PHARMACEUTICALS PRIVATE LIMITED	Director	09/01/97	09/01/97	-	Active	NO
2	U70102TG2008PLC061677	LORVEN INFRA PROJECTS (INDIA) LIMITED	Director	04/11/08	04/11/08	10/11/08	Active	NO
3	U24232TG2010PTC068144	ZENOVA BIO NUTRITION PRIVATE LIMITED	Managing director	27/05/10	28/04/10	-	Active	NO
4	U24233TG2010PTC071007	VIVO LIFE SCIENCES PRIVATE LIMITED	Managing director	24/02/11	28/10/10	-	Active	NO
5	U24232TG2011PTC074902	NANOCEUTICA LABORATORIES PRIVATE LIMITED	Director	09/06/11	09/06/11	-	Active	NO

Name :

Mr. Katragadda Radhika

Designation :

Director

Address :

H. No.12-5-34, Flat No.206, Divya Homes, Vijayapuri, Taranaka, Secunderabad - 500017, Telangana, India

Date of Birth/Age :

23.08.1971

Date of Appointment :

09.01.2001

DIN No. :

00587365

Name :

Mr. Rambhau Devraj

Designation :

Additional Director

Address :

2-59/A Bheemaram, Vidyaranyapuri, Warangal-506009, Telangana, India

Date of Appointment :

01.06.2015

DIN No. :

02686322

Name :

Mr. Suresh Babu Katragadda

Designation :

Additional Director

Address :

Plot No.95, Sai Nagar, Chengicherla, Uppal, Hyderabad-500039, Telangana, India

Date of Appointment :

01.06.2015

DIN No. :

00321885

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 21.07.2014

Names of Shareholders	No. of Shares	Percentage
K. V. Raambabu	3478628	69.83
K. Suresh Babu	73661	1.48
K. Radhika	1355357	27.21
D. Gyan Prakash	36830	0.74
K. V. Nagendra Babu	36830	0.74
Total	4981306	100.00

As on 11.11.2014

Names of Allottees	No. of Shares
K. V. Raambabu	869657
K. Suresh Babu	18415
K. Radhika	338839
D. Gyan Prakash	9208
K. V. Nagendra Babu	9208
Total	1245327

Equity Share Break up (Percentage of Total Equity)

As on 21.07.2014

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Pharmaceutical Products.
Products :	Pharmaceutical Products
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Finished goods
Countries :	· Vietnam · Ghana · Sri Lanka · Asian Countries · Myanmar
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 :

500 (Approximately) / Information declined by the management

Bankers :

Bank Name	State Bank of India
Branch	Nacharam I.A. Branch, Nacharam, Hyderabad – 500076, Telangana, 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

Axis Bank Limited, Tarnaka Branch, Secunderabad, Telangana, India

Facilities :

Secured Loan	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
Long-term Borrowings
Term Loan from State Bank of India – Nacharam
Corporate Loan	15.281	27.472
R and D Loan	6.050	11.145
Vehicle Loan From
HDFC – Begumpet	1.668	0.000
State Bank of India – Nacharam	0.749	0.757
Magma Fincrop Limited	0.366	0.695
Short-term borrowings
Cash Credit From State Bank of India -Nacharam (The above loans from State Bank of India are primarily Secured by hypothecation of all Chargeable current Assets of the company including stocks and receivables. Collaterally secured by mortgage of factory land at Kharondi village, Haridwar, industrial Land at Nacharam, Hyderabad and certain Immovable proprieties of some Directors)	89.499	52.709
Total	113.613	92.778

Auditors :
Name :	Umesh and Krishna Chartered Accountants
Address :	205, 2^nd Floor, Lingapur House, Himayatnagar, Hyderabad– 500029, Telangana, India
Tel. No.:	91-40-23223880/23226080
E-Mail :	cabradhakrishna@yahoo.co.in
PAN N Income-tax PAN of auditor or auditor's firm :	AAAFU4355N
Memberships :	--
Collaborators :	--
Associates :	Zenova Bio Nutrition Private Limited Vivo Life Science Sai Pharma Distributor Nanoceutica Laboratories Private Limited

CAPITAL STRUCTURE

As on 31.03.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
6500000	Equity Shares	Rs.10/- each	Rs. 65.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6226633	Equity Shares	Rs.10/- each	Rs. 62.266 Million

As on 21.07.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Shares	Rs.10/- each	Rs. 50.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,981,306	Equity Shares	Rs.10/- each	Rs. 49.813 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	62.266	49.813	46.492
(b) Reserves & Surplus	117.189	117.252	87.141
(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)	179.455	167.065	133.633
(3) Non-Current Liabilities
(a) long-term borrowings	45.188	66.753	56.271
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(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)	45.188	66.753	56.271
(4) Current Liabilities
(a) Short term borrowings	89.499	52.709	61.340
(b) Trade payables	51.664	39.671	40.234
(c) Other current liabilities	44.444	34.763	45.457
(d) Short-term provisions	3.154	8.362	8.059
Total Current Liabilities (4)	188.761	135.505	155.090
TOTAL	413.404	369.323	344.994
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	141.231	142.860	146.453
(ii) Intangible Assets	43.370	25.370	13.400
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.200	7.875	15.875
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	6.755	7.482	5.009
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	191.556	183.587	180.737
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	90.810	54.839	35.592
(c) Trade receivables	112.149	95.146	97.997
(d) Cash and cash equivalents	2.329	13.907	6.605
(e) Short-term loans and advances	16.560	21.844	24.063
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	221.848	185.736	164.257
TOTAL	413.404	369.323	344.994

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Income	615.372	502.072	480.375
		Other Income	1.130	1.308	0.460
		TOTAL (A)	616.502	503.380	480.835
Less	EXPENSES
		Cost of Materials Consumed	225.368	156.334	135.870
		Purchases of Stock-in-Trade	28.240	24.252	55.774
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(20.880)	(5.507)	1.606
		Employees benefits expense	123.991	112.842	93.892
		Other expenses	206.815	142.926	125.892
		TOTAL (B)	563.534	430.847	413.034
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)		52.968	72.533	67.801
Less	FINANCIAL EXPENSES (D)		25.489	22.257	22.690
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		27.479	50.276	45.111
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.712	8.483	8.076
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		15.767	41.793	37.035
Less	TAX (H)		3.155	8.362	8.060
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		12.612	33.431	28.975
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Export	25.994	21.270	12.863
	TOTAL EARNINGS		25.994	21.270	12.863
	IMPORTS
		Components and other capital goods for R & D at Nacharam	0.000	0.000	1.768
	TOTAL IMPORTS		0.000	0.000	1.768
	Earnings / (Loss) Per Share (Rs.)		2.03	6.71	6.23

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	22.347	19.106	32.464
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operation	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	2.05	6.66	6.03
Operating Profit Margin (PBIDT/Sales)	(%)	8.61	14.45	14.11
Return on Total Assets (PBT/Total Assets}	(%)	3.82	11.56	11.25
Return on Investment (ROI) (PBT/Networth)		0.09	0.25	0.28
Debt Equity Ratio (Total Debt /Networth)		0.88	0.83	1.12
Current Ratio (Current Asset/Current Liability)		1.18	1.37	1.06

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	46.492	49.813	62.266
Reserves & Surplus	87.141	117.252	117.189
Net worth	133.633	167.065	179.455
long-term borrowings	56.271	66.753	45.188
Short term borrowings	61.340	52.709	89.499
Current maturities of long-term debts	32.464	19.106	22.347
Total borrowings	150.075	138.568	157.034
Debt/Equity ratio	1.123	0.829	0.875

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)
Sales	480.375	502.072	615.372
		4.517	22.566

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	480.375	502.072	615.372
Profit	28.975	33.431	12.612
	6.03%	6.66%	2.05%

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	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 three 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	Yes
35]	Negative Reporting by Auditors in the Annual Report	No

NOTE: Registered office of the company has been shifted from 4F9, 5th Floor,Ballad Estates, Tarnaka, Secunderabad-500017, Telangana, India to the present address w.e.f. 26.02.2009

UNSECURED LOAN

PARTICULARS	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
Long-term Borrowings
Term Loan
From Banks	1.477	6.681
From financial Institutions	0.887	10.874
Others
Deposits from C&F Agents	17.800	8.362
Deposits from Contracting Manufactures	0.618	0.649
Deposits from others	0.292	0.118
Total	21.074	26.684

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10177916	03/02/2015 *	147,215,000.00	STATE BANK OF INDIA	Nacharam SME Branch, Nacharam, Hyderabad, Telangana - 500076, INDIA	C65431306

* Date of charge modification

CONTINGENT LIABILITIES:

(Rs. in million)

PARTICULARS	31.03.2015	31.03.2014
Bank Guarantees issued	5.377	5.354

FIXED ASSETS

· Land

· Factory Building

· Plant and Machinery

· Office Equipment

· Computer Equipment

· Furniture and Fixture

· Motor Vehicles

· R and D Equipment’s Factory

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 records 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.65.29
UK Pound	1	Rs.9905
Euro	1	Rs.73.91

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	KIN
Report Prepared by :	JYTK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	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	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		46

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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