MIRA INFORM REPORT

Report No. :	347028
Report Date :	29.10.2015

IDENTIFICATION DETAILS

Name :	KAMAL ENCON INDUSTRIES LIMITED (w.e.f. 23.03.2015) “KAMAL ENGINEERING CORPORATION” (A DIVISION OF “KAMAL ENCON INDUSTRIES LIMITED”)
Formerly Known As :	KEC INDUSTRIES LIMITED KEC ENGINEERS PRIVATE LIMITED
Registered Office :	56, Industrial Estate, Yamuna Nagar-135001, Haryana
Tel. No.:	91-1732-250300/ 250302
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	03.11.1983
Com. Reg. No.:	05-016894
Capital Investment / Paid-up Capital :	Rs. 28.500 Million
CIN No.: [Company Identification No.]	U74999HR1983PLC016894
IEC No.:	0588143642
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACK4706E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Engineering Goods like Air Preheater, Steam Air Heater, Dampers, etc.
No. of Employees :	125 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was incorporated in the year 1983. The name of the company has changed from KEC Industries Limited to Kamal Encon Industries Limited with effect from 23^rd March 2015. The company has recorded declining trend in its sales turnover and profit margin since 2012, however reported fair profit margin for the FY 2014. The company possesses sound net worth base marked by low borrowings and good liquidity position. Trade relations are fair. Business is active. Payments are slow but 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

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

Name :	Mr. Sudhir Gupta
Designation :	Chartered Accountant
Contact No.:	91-1732-250300
Date :	27.10.2015

LOCATIONS

Registered Office/ Factory :	56, Industrial Estate, Yamuna Nagar-135001, Haryana, India
Tel. No.:	91-1732-250300/ 250302
Fax No.:	91-1732-250304/ 255300
E-Mail :	kamal@kecindustries.com works@kecindustries.com
Website :	www.kecindustries.com
Location :	Owned
Locality :	Industrial
Corporate Office :	7-B, 7^th Floor, Bansalaya Buiding, 15, Barakhamba Road, New Delhi – 110001, India

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Rajinder Mohan Gaddh

Designation :

Director

Address :

120, Golf Links, New Delhi-110003, Delhi, India

Date of Birth/Age :

01.05.1950

Date of Appointment :

03.11.1983

DIN No.:

00254167

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	U74999HR1983PLC016894	KAMAL ENCON INDUSTRIES LIMITED	Director	03/11/1983	03/11/1983	Active	NO
2	U26942HP1983PTC005328	YAMUNA CEMENT AND MINERALS PRIVATE LIMITED	Director	03/12/1991	03/12/1991	Active	NO
3	U29199HR2003PTC050549	KEC METALLICS PRIVATE LIMITED	Director	23/12/2003	23/12/2003	Active	NO
4	U70109DL1996PTC084130	VIKRAM ADITYA AND ASSOCIATES PRIVATE LIMITED	Director	24/10/2005	24/10/2005	Active	NO
5	U70109DL2006PTC150626	GABLES INFRASTRUCTURE PRIVATE LIMITED	Director	06/07/2006	06/07/2006	Active	NO
6	U28112DL1996PTC076150	JMD SPECIAL STEELPRIVATE LIMITED	Director	04/08/2008	04/08/2008	Active	NO
7	U45400DL2008PTC183466	MOHAN APARTMENTS PRIVATE LIMITED	Director	18/09/2008	18/09/2008	Active	NO
8	U70109DL2014PTC264222	KAMAL VATIKA PRIVATE LIMITED	Director	30/01/2014	30/01/2014	Active	NO

Name :

Mr. Anil Kumar Gaddh

Designation :

Director

Address :

526-R, Model Town, Yamuna Nagar-135001, Haryana, India

Date of Birth/Age :

02.05.1962

Date of Appointment :

07.12.2006

DIN No.:

00254100

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	U26942HP1983PTC005328	YAMUNA CEMENT AND MINERALS PRIVATE LIMITED	Director	03/12/1991	03/12/1991	Active	NO
2	U29199HR2003PTC050549	KEC METALLICS PRIVATE LIMITED	Director	23/12/2003	23/12/2003	Active	NO
3	U70109DL2006PTC150626	GABLES INFRASTRUCTURE PRIVATE LIMITED	Director	06/07/2006	06/07/2006	Active	NO
4	U74999HR1983PLC016894	KAMAL ENCON INDUSTRIES LIMITED	Director	07/12/2006	07/12/2006	Active	NO
5	U45400DL2008PTC183466	MOHAN APARTMENTS PRIVATE LIMITED	Director	18/09/2008	18/09/2008	Active	NO
6	U70109DL2014PTC264222	KAMAL VATIKA PRIVATE LIMITED	Director	30/01/2014	30/01/2014	Active	NO

Name :

Mr. Vikram Pratap Gadh

Designation :

Director appointed in casual vacancy

Address :

120, Golf Links,, New Delhi-110003, Delhi, India

Date of Birth/Age :

17.05.1977

Date of Appointment :

09.10.2014

DIN No.:

02370661

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	U74899DL1988PTC032082	BMW HOLDINGS PRIVATE LIMITED	Director	02/09/1999	02/09/1999	20/12/2010	Active	NO
2	U74999HR1983PLC016894	KAMAL ENCON INDUSTRIES LIMITED	Director	09/10/2014	01/04/2011	-	Active	NO
3	U28112DL1996PTC076150	JMD SPECIAL STEELPRIVATE LIMITED	Additional director	24/03/2014	24/03/2014	30/09/2014	Active	NO

KEY EXECUTIVES

Name :	Mr. Sudhir Gupta
Designation :	Chartered Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

NOTE: SHAREHOLDING DETAILS FILE ATTACHED

AS ON 30.09.2014

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	53.00
Directors or relatives of directors	45.00
Other top fifty shareholders	2.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Engineering Goods like Air Preheater, Steam Air Heater, Dampers, etc.
Brand Names :	--
Agencies Held :	--
Exports :
Products :	Finished Goods
Countries :	· Indonesia · Kenya · Ethiopia · Brazil
Imports :
Products :	Raw Material
Countries :	· China · Germany · UK
Terms :
Selling :	Cash, L/C and Credit
Purchasing :	Cash, L/C and Credit

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Company Name :	Nexgen Fluoropolymers Private Limited
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

Wholesalers, Retailers and End Users

Company Name :	Indian Oil Corporation Limited
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

· Bharat Petroleum Corporation Limited

· Gas Authority of India Limited

· Isgec Heavy Engineering Limited

No. of Employees :

125 (Approximately)

Bankers :

Bank Name:	State Bank of India
Branch:	Main Road (Branch), Yamuna Nagar, Haryana, 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 A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Cash Credit= Rs. 250.000 Million
Account Operation:	Not Divulged
Remarks:	Not Divulged

· Kotak Mahindra Bank Limited

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Secured Term Loans from Banks
HDFC Bank Limited	1.644	1.258
State Bank of India	0.697	0.921
SHORT TERM BORROWINGS
HDFC Bank Limited	18.621	0.000
State Bank of India, Yamuna Nagar	14.364	10.691
Total	35.326	12.870

Banking Relations :	--
Financial Institution :	· Indian Renewable Energy Development Agency Limited India Habitat Centre1st Floor East Court Core, 4 A Lodhi Road, New Delhi - 110003, Delhi, India
Auditors :
Name :	Moudgil and Company Chartered Accountants
Address :	Khera Bazar District Yamuna Nagar Jagadhri-135003, Haryana, India
Income-tax PAN of auditor or auditor's firm :	AAQPM8956P
Memberships :	--
Collaborators :	--
Subsidiary Company :	Mohan Apartments Private Limited (U45400DL2008PTC183466)

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
7,500,000	Equity Shares	Rs. 10/- each	Rs. 75.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3,200,000	Equity Shares	Rs. 10/- each	Rs. 32.000 Million

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
7,500,000	Equity Shares	Rs. 10/- each	Rs. 75.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2850000	Equity Shares	Rs. 10/- each	Rs. 28.500 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	28.500	28.500	28.500
(b) Reserves & Surplus	787.116	701.884	612.994
(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)	815.616	730.384	641.494
(3) Non-Current Liabilities
(a) Long-term borrowings	2.783	2.487	4.384
(b) Deferred tax liabilities (Net)	8.064	7.069	6.095
(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)	10.847	9.556	10.479
(4) Current Liabilities
(a) Short term borrowings	32.985	10.691	3.644
(b) Trade payables	97.343	24.985	66.381
(c) Other current liabilities	4.025	4.212	14.612
(d) Short-term provisions	0.000	0.044	0.285
Total Current Liabilities (4)	134.353	39.932	84.922
TOTAL	960.816	779.872	736.895
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	234.140	194.149	159.795
(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	376.247	474.155	353.326
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.448	0.594	7.036
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	610.835	668.898	520.157
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	151.207	35.479	35.999
(c) Trade receivables	143.091	38.805	114.968
(d) Cash and cash equivalents	21.835	28.731	64.965
(e) Short-term loans and advances	33.848	7.959	0.806
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	349.981	110.974	216.738
TOTAL	960.816	779.872	736.895

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from Operations	352.488	359.985	543.337
		Other Income	10.444	21.965	18.494
		TOTAL	362.932	381.950	561.831
Less	EXPENSES
		Cost of Materials Consumed	170.881	159.634	267.420
		Purchases of Stock-in-Trade	0.000	0.000	0.000
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(37.934)	0.739	(0.896)
		Employees benefits expense	39.260	34.354	32.175
		Other expenses	74.064	65.174	98.101
		TOTAL	246.271	259.901	396.800
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		116.661	122.049	165.031
Less	FINANCIAL EXPENSES		3.268	2.700	5.747
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		113.393	119.349	159.284
Less/ Add	DEPRECIATION/ AMORTISATION		11.008	12.126	13.572
Add	PROFIT/ (LOSS) ON SALE OF FIXED ASSETS/INVESTMENTS		13.906	14.384	2.631
	PROFIT BEFORE TAX		116.291	121.607	148.343
Less	TAX		31.059	32.716	27.001
	PROFIT AFTER TAX		85.232	88.891	121.342
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	87.835	7.458	0.000
	TOTAL EARNINGS		87.835	7.458	0.000
	IMPORTS
		Raw Materials	47.011	5.036	0.000
		Components and Spare Parts	0.000	0.230	0.000
	TOTAL IMPORTS		47.011	5.266	0.000
	Earnings Per Share (Rs.)		29.91	31.19	42.58

PARTICULARS	31.03.2015
Sales Turnover (Approximately)	730.000

The above information has been parted by Mr. Sudhir Gupta (Chartered Accountant)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt
Secured Term Loans from Banks
HDFC Bank Limited	2.468	2.459	3.320
State Bank of India (Term Loan Secured Against Hyp. of Cars and Guaranted by the Directors of the Company)	0.223	0.201	0.000
Total	2.691	2.660	3.320
Cash Generated from Operations	NA	NA	NA
Net Cash Flow from used in Operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	24.18	24.69	22.33
Operating Profit Margin (PBDIT/Sales)	(%)	33.10	33.90	30.37
Return on Total Assets (PBT/Total Assets}	(%)	19.89	39.78	38.67
Return on Investment (ROI) (PBT/Networth)		0.14	0.17	0.23
Debt Equity Ratio (Total Debt/Networth)		0.05	0.02	0.02
Current Ratio (Current Asset/Current Liability)		2.60	2.78	2.55

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	28.500	28.500	28.500
Reserves & Surplus	612.994	701.884	787.116
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	641.494	730.384	815.616
Long-term borrowings	4.384	2.487	2.783
Short term borrowings	3.644	10.691	32.985
CURRENT MATURITIES OF LONG-TERM DEBTS	3.320	2.660	2.691
Total borrowings	11.348	15.838	38.459
Debt/Equity ratio	0.018	0.022	0.047

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	543.337	359.985	352.488
		(33.746)	(2.083)

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	543.337	359.985	352.488
Profit	121.342	88.891	85.232
	22.33%	24.69%	24.18%

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 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	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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10573872	24/11/2014	180,000,000.00	KOTAK MAHINDRA BANK LIMITED	27BKC, C 27, G BLOCK, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI- 400051, MAHARASHTRA, INDIA	C55918692
2	80033225	11/09/2014 *	250,000,000.00	STATE BANK OF INDIA	SME YAMUNA NAGAR BRANCH, RAILWAY ROAD, YAMUNA NAGAR- 135001, HARYANA, INDIA	C23424518

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
From Directors and Shareholders	0.442	0.308
Total	0.442	0.308

EXPANSION OF ACTIVITIES:

As had been envisaged in the earlier year’s report your directors are endeavoring for expansion of the core manufacturing business of heavy machinery and out of the accumulated profits the company has purchased an industrial plot from the HSIIDC for expansion of its manufacturing activities in the NCT of Delhi at Faridabad.

DIVERSIFICATION:

Besides the core business of manufacturing of Heavy Machinery the company has already diversified into the Power Generation through Windmills. Now the company is diversifying into the reality sector and besides having a wholly owned subsidiary engaged in letting out of properties the company has now made investment in a residential plot in Pushpanjali for construction of flats for sale and for renting. This will help in enhancing the profits of the company considerably.

CONTINGENT LIABILITIES:

Particulars	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
(a) Claim Against the Company not Acknowledged as Debts	0.000	0.000
(b) Guarantees	177.704	105.406
(c) Other Money for Which the Company is Contingently Liable	0.000	0.000
Total	177.704	105.406

FIXED ASSETS:

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fittings

· Vehicles

· Office Equipment

· Computer

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. 65.04
UK Pound	1	Rs. 99.58
Euro	1	Rs. 71.75

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	AMR
Report Prepared by :	IND

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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		47

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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