MIRA INFORM REPORT

Report No. :	346275
Report Date :	21.10.2015

IDENTIFICATION DETAILS

Name :	SUPARNA CHEMICALS LIMITED
Registered Office :	54/A, Mittal Tower, Nariman Point, Mumbai – 400021, Maharashtra
Tel. No.:	91-22-22027446 / 47 / 48
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	12.03.1980
Com. Reg. No.:	11-022332
Capital Investment / Paid-up Capital :	Rs.45.750 Million
CIN No.: [Company Identification No.]	U99999MH1980PLC022332
IEC No.:	0388020865
TAN No.: [Tax Deduction & Collection Account No.]	MUMS37272E
PAN No.: [Permanent Account No.]	AABCS4578F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of various potassium and sodium based speciality chemicals.
No. of Employees :	120 (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

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Exist
Comments :	Subject was incorporated on 12^th March, 1980. It primarily manufactures various potassium and sodium-based speciality chemicals. The company is promoted by Mr. Ram Nath Mandal. Some of the major chemicals manufactured by the company include potassium-sodium tertiary butanol (KTB/STB), potassium-sodium alloy (NAK), and potassium super-oxide. It has satisfactory track record. The rating takes into consideration decent networth base and significant improvement in gearing ratios. Further, it has achieved growth in its sales turnover and profit during FY 2014. The rating also derives strength from its promoter extensive experience in the speciality chemical business, sound technical expertise and supported by its strong relationship with its global distributor. Trade relations are fair. Business is active. Payment 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 – 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	Have inadequate credit quality and carry high credit risk.
Date	February 10, 2015

Rating Agency Name	CRISIL
Rating	Short term rating = A4+
Rating Explanation	Have minimal degree of safety and carry very high credit risk.
Date	February 10, 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. R. D. Kathagi
Designation :	Accountant
Contact No.:	91-22-22027446
Date :	20.10.2015

LOCATIONS

Registered Office :	54/A, Mittal Tower, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-2202 / 7446 / 47 / 48 / 49
Fax No.:	91-22-2283 / 0212
E-Mail :	export@suparnachemicals.co.in domesticsales@suparnachemicals.co.in
Website :	www.suparnachemicals.co.in
Location:	Owned
Locality :	Commercial
Factory 1 :	W-9, Chemical Zone, MIDC, Ambernath - 421501, Maharashtra, India
Tel. No.:	91-251-2610612
Fax No.:	91-251-2610893
Location:	Owned
Locality :	Industries
Factory 2 :	Plot No. N-63, MIDC, Additional Ambernath (East), Thane - 421506, Maharashtra, India
Tel. No.:	91-251-2610125
Fax No.:	91-251-2610893
Factory 3:	Plot 656, Sylvasa Road, GIDC, Vapi - 396195, Gujarat, India
Tel. No.:	91-260-2452207
Fax No.:	91-260-2453132

DIRECTORS

As on 30.09.2014

Name :	Mr. Ramnath Mandal
Designation :	Director
Address :	Geetanjali Plot No.582, Kher Section, Ambernath, Thane – 421501, Maharashtra, India
Date of Birth/Age :	17.08.1940
Date of Appointment :	12.03.1980
DIN No.:	00156820

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	U24100MH1979PTC021118	RESINS AND ALLIED CHEMICAL INDUSTRIES (BOMBAY) PRIVATE LIMITED	Director	17/03/1979	17/03/1979	-	Active	NO
2	U99999MH1980PLC022332	SUPARNA CHEMICALS LIMITED	Director	12/03/1980	12/03/1980	-	Active	NO

Name :

Mrs. Sandhya R Mandal

Designation :

Director

Address :

Geetanjali Plot No.582, Kher Section, Ambernath, Thane – 421501, Maharashtra, India

Date of Birth/Age :

26.09.1948

Date of Appointment :

12.03.1980

DIN No.:

00156758

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	U99999MH1980PLC022332	SUPARNA CHEMICALS LIMITED	Director	12/03/1980	12/03/1980	-	Active	NO
2	U24100MH1979PTC021118	RESINS AND ALLIED CHEMICAL INDUSTRIES (BOMBAY) PRIVATE LIMITED	Director	17/07/2006	17/07/2006	-	Active	NO

Name :

Mr. Suparna D Mandal

Designation :

Director

Address :

Geetanjali Plot No.582, Kher Section, Ambernath, Thane – 421501, Maharashtra, India

Date of Birth/Age :

28.11.1978

Date of Appointment :

01.04.1998

DIN No.:

00156553

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	U99999MH1980PLC022332	SUPARNA CHEMICALS LIMITED	Director	01/04/1998	01/04/1998	-	Active	NO
2	U24230MH2011PTC219148	Viridis Chemicals Private Limited	Director	27/06/2011	27/06/2011	-	Active	NO

MAJOR SHAREHOLDERS

As on 30.09.2014

Names of Shareholders	No. of Shares
Sandhya R Mandal	1524975
R N Mandal HUF	949995
Sumona Chartterjee	49845
Suparna Mandal	250005
Tusharknti U Das	150
Ramnath N Mandal	1800000
Debashish Mandal	30
Total	4575000

As on 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	79.23
Other top fifty shareholders	20.77
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of various potassium and sodium based speciality chemicals.
Products :	· Potassium Sodium Alloy · Potassium Super Oxide · Potassium Sodium tertiary butanol (KTB/STB)
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Finished Goods
Countries :	European Countries
Imports :
Products :	Raw Material
Countries :	· United States of America · Germany
Terms :
Selling :	Not Available
Purchasing :	Not Available

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Evonik Degussa, Germany
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Retailers and End Users

Reference :	Evonik Industries, Germany
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

120 (Approximately)

Bankers :

Banker Name	State Bank of India
Branch Address	SME Backbay Reclamation Branch, Raheja Chamber, Nariman Point, Mumbai – 400021, Maharashtra, 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

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
LONG TERM BORROWINGS
Term Loans (Bank)	34.500	56.800
SHORT TERM BORROWINGS
Loans repayable on demand (From Bank)
Working Capital	7.430	20.506
Foreign Currency in PCFC	38.841	39.522
Total	80.771	116.828

Auditors :
Name :	Komal Maru and Associates Chartered Accountants
Address :	1102, Amrut Tower, S. N. Road, Mulund (W), Mumbai – 400080, Maharashtra, India
Mobile No.:	91-98928 22826
PAN No.:	ALQPM8969B
E-Mail :	cakomalmaru@gmail.com
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries (As on 31.03.2013) :	Resin and Allied Chemicals Bombay (India) Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4575000	Equity Shares	Rs.10/- each	Rs.45.750 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	45.750	45.750	45.750
(b) Reserves & Surplus	2290.669	2304.698	2322.009
(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)	2336.419	2350.448	2367.759
(3) Non-Current Liabilities
(a) long-term borrowings	34.500	56.800	87.600
(b) Deferred tax liabilities (Net)	16.274	16.799	15.659
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	1.775	1.407	1.175
Total Non-current Liabilities (3)	52.549	75.006	104.434
(4) Current Liabilities
(a) Short term borrowings	60.689	60.679	56.778
(b) Trade payables	72.088	65.216	48.123
(c) Other current liabilities	25.302	24.460	18.219
(d) Short-term provisions	8.498	6.502	5.722
Total Current Liabilities (4)	166.577	156.857	128.842
TOTAL	2555.545	2582.311	2601.035
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	871.007	916.704	958.102
(ii) Intangible Assets	1471.800	1471.800	1471.800
(iii) Capital work-in-progress	2.425	0.405	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	4.142	4.566	2.314
(e) Other Non-current assets	0.000	0.000	13.924
Total Non-Current Assets	2349.374	2393.475	2446.140
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	63.633	89.711	45.391
(c) Trade receivables	95.280	50.955	83.715
(d) Cash and cash equivalents	4.737	4.126	7.164
(e) Short-term loans and advances	42.100	43.800	18.550
(f) Other current assets	0.421	0.244	0.075
Total Current Assets	206.171	188.836	154.895
TOTAL	2555.545	2582.311	2601.035

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	405.580	351.349	338.936
	Other Income	0.840	0.573	1.347
	TOTAL	406.420	351.922	340.283
Less	EXPENSES
	Cost of Materials Consumed	136.558	151.614	116.713
	Purchases of Stock-in-Trade	54.489	61.660	44.218
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	19.012	(37.734)	16.142
	Sales and Administration Expenses	42.441	35.343	0.000
	Employees benefits expense	24.125	20.662	15.916
	Other expenses	62.535	51.210	71.273
	TOTAL	339.160	282.755	264.262
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	67.260	69.167	76.021
Less	FINANCIAL EXPENSES	16.973	23.238	28.967
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	50.287	45.929	47.054
Less/ Add	DEPRECIATION/ AMORTISATION	18.028	17.711	17.158
	PROFIT/ (LOSS) BEFORE TAX	32.259	28.218	29.896
Less	TAX	8.105	7.346	12.353
	PROFIT/ (LOSS) AFTER TAX	24.154	20.872	17.543
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	255.129	210.470	167.817
	TOTAL EARNINGS	255.129	210.470	167.817
	IMPORTS
	Raw Materials	92.110	92.557	74.007
	Components and Stores parts	0.000	0.076	0.078
	Capital Goods	0.000	0.000	0.158
	TOTAL IMPORTS	92.110	92.633	74.243
	Earnings / (Loss) Per Share (Rs.)	5.28	4.56	3.83

Particulars	31.03.2015
Sales Turnover (Approximately)	400.000

Expected Sales (2015-16): Rs.550.000 Million

The above information has been parted by Mr. R D. Kathagi (Accountant).

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	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	5.18	5.94	5.96
Operating Profit Margin (PBDIT/Sales)	(%)	22.43	19.69	16.58
Return on Total Assets (PBT/Total Assets}	(%)	1.15	1.09	1.26
Return on Investment (ROI) (PBT/Networth)		0.01	0.01	0.01
Debt Equity Ratio (Total Debts/Networth)		0.06	0.05	0.04
Current Ratio (Current Asset/Current Liability)		1.20	1.20	1.24

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	45.750	45.750	45.750
Reserves & Surplus	2322.009	2304.698	2290.669
Net worth	2367.759	2350.448	2336.419
long-term borrowings	87.600	56.800	34.500
Short term borrowings	56.778	60.679	60.689
Total borrowings	144.378	117.479	95.189
Debt/Equity ratio	0.061	0.050	0.041

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	338.936	351.349	405.580
		3.662	15.435

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	338.936	351.349	405.580
Profit	17.543	20.872	24.154
	5.18%	5.94%	5.96%

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	Yes
19	Major customers	Yes
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 four years	Yes
27	Reasons for variation <> 20%	----------------------
28	Estimation for coming financial year	Yes
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	Yes
33	Market information	----------------------
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

LITIGATION DETAILS

LITIGATION DETAILS
Bench:- Bombay
Lodging No. :	SSL/2913/2011	Failing Date:-	13.10.2011	Reg. No.:-	SS/623/2012	Reg. Date:-	09.03.2012
Petitioner:-	GEMINI WIRE PRODUCTS PRIVATE LIMITED		Respondent:-	SUPARNA CHEMICALS LIMITED
Petn.Adv:-	UDAYA SANKAR SAMUDRALA (0)
District:-	MUMBAI
Bench:-	SINGLE		Category:-	MONETARY SUITS
Status:-	TRANSFERRED		Remark:-	TRANSFERRED TO CITY CIVIL COURT
Transfer Date:-	03.10.2012
Act. :	CODE OF CIVIL PROCEDURE			Under Section 1908

OPERATIONS

During the year the Company has achieved gross turnover of Rs.406.420 Million as compared to Rs. 351.922 Million for the previous year. The Company has reported profit after taxation of Rs. 24.154 Million as Compared to Rs.20.872 Million in the previous year.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10057672	17/12/2008 *	229,000,000.00	STATE BANK OF INDIA	SME BACKBAY RECLAMATION BRANCH, RAHEJA CHAMBER,  NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA	A56243181
2	10032398	17/01/2009 *	294,000,000.00	STATE BANK OF INDIA	SME BACKBAY RECLAMATION BRANCH, RAHEJA CHAMBER, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA	A58060641
3	10005006	04/05/2006	72,000,000.00	STATE BANK OF INDIA	BACKBAY RECLAMATION BRANCH, RAHEJA CHEMBERS, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA	A00853994
4	90374029	27/05/2004	20,000,000.00	STATE BANK OF INDIA	CHURCHGATE BRANCH, MUMBAI, Maharashtra, INDIA	-
5	90373931	17/09/2004 *	22,500,000.00	STATE BANK OF INDIA	CHURCHGATE BRANCH, MUMBAI, Maharashtra, INDIA	-
6	90373685	28/02/1996 *	19,500,000.00	STATE BANK OF INDIA	CHURCHGATE BRANCH, MUMBAI, Maharashtra, INDIA	-
7	90373503	27/06/2000 *	22,500,000.00	STATE BANK OF INDIA	CHURCHGATE BRANCH, MUMBAI, Maharashtra, INDIA	-

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
SHORT TERM BORROWINGS
Loans and advances from Directors	0.918	0.651
Others	13.500	0.000
Total	14.418	0.651

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Office and Other Equipments

· Computer

· Cylinders

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.64.89
UK Pound	1	Rs.100.39
Euro	1	Rs.73.33

INFORMATION DETAILS

Information Gathered by :	GAY
Analysis Done by :	RAS
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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