MIRA INFORM REPORT

Report No. :	341762
Report Date :	19.09.2015

IDENTIFICATION DETAILS

Name :	WMI KONECRANES INDIA LIMITED (w.e.f. 28.09.2011)
Formerly Known As :	WMI CRANES LIMITED
Registered Office :	Plot No.D-16, M.I.D.C., Jejuri, Taluka Purandar, Pune – 411 026, Maharashtra
Tel. No.:	91-2115-253801
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	06.10.1975
Com. Reg. No.:	11-148965 (New) 11-018585 (Old)
Capital Investment / Paid-up Capital :	Rs.137.226 Million
CIN No.: [Company Identification No.]	U74210PN1975PLC148965 (New) U74210MH1975PLC018585 (Old)
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACW0328C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the business of manufacturing of Material Handling Equipment.
No. of Employees :	Information declined by the Management.

RATING & COMMENTS

MIRA’s Rating :

B (31)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 2100000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was incorporated on 6^th October, 1975. It is engaged in the business of manufacturing of material handling equipment. It has moderate track record. The company has incurred a loss from its operations. Further, the rating also takes into consideration modest financial risk profile marked by modest networth base and drastic dip in its revenue during FY14. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings with some caution.

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 DECLINED

Management non-cooperative

(Tel. No.: 91-20-40047470)

LOCATIONS

Registered Office :	Plot No.D-16, M.I.D.C., Jejuri, Taluka Purandar, Pune – 411 026, Maharashtra, India
Tel. No.:	91-2115-253801/ 253802 91-20-40047470
Fax No.:	91-2115-253803 91-20-40047475
E-Mail :	harshad.morgaonkar@konecranes.com india.sales@konecranes.com faiz.ahmed@konecranes.com saugat.ganguly@konecranes.com
Website :	http://www.konecranes.in
Factory :	Plot No.C-63, MIDC, Jejuri, Pune – 412 303, Maharashtra, India
Branch Office :	Located at: · Mumbai · Pune · Bangalore · Kolkata · Delhi · Chennai · Vadodara · Hyderabad · Nagpur

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Suhas Gangadhar Baxi

Designation :

Managing director

Address :

503/H5, Bel Vedere, ITI Road, Aundh, Pune – 411 007, Maharashtra, India

Date of Appointment :

04.11.2014

DIN No.:

00649689

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	U72200PN2003PTC017808	TRIPLE POINT TECHNOLOGY (INDIA) PRIVATE LIMITED	Director	25/03/2003	25/03/2003	30/04/2007	Active	NO
2	U29299TZ1997PTC020837	DEMAG CRANES AND COMPONENTS (INDIA) PRIVATE LIMITED	Managing director	11/05/2009	31/08/2006	30/11/2012	Active	NO
3	U74900TG2008PLC058171	PENNAR ENVIRO LIMITED	Additional director	30/01/2013	30/01/2013	05/05/2014	Active	NO
4	U74900PN2012FTC142654	KONECRANES SHARED SERVICES INDIA PRIVATE LIMITED	Additional director	04/11/2014	04/11/2014	-	Active	NO
5	U74210PN1975PLC148965	WMI KONECRANES INDIA LIMITED	Managing director	04/11/2014	04/11/2014	-	Active	NO

Name :

Ms. Sirpa Talvikki Poitsalo

Designation :

Whole-time director

Address :

Kunnarlantie 80, Espoo 02740, Finland

Date of Birth/Age :

04.04.1963

Date of Appointment :

10.08.2011

DIN No.:

00929783

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	U74999PN2007PTC130941	KONECRANES INDIA PRIVATE LIMITED	Director	05/02/2007	05/02/2007	-	Amalgamated	NO
2	U74210PN1975PLC148965	WMI KONECRANES INDIA LIMITED	Whole-time director	10/08/2011	17/02/2011	-	Active	NO
3	U74900PN2012FTC142654	KONECRANES SHARED SERVICES INDIA PRIVATE LIMITED	Director	22/03/2012	22/03/2012	-	Active	NO

Name :

Mr. Mikko Johannes Uhari

Designation :

Whole-time director

Address :

Vuokontie 13, 13500 Hameenlinna, Finland

Date of Birth/Age :

08.05.1957

Date of Appointment :

17.02.2011

DIN No.:

00929809

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	U74999PN2007PTC130941	KONECRANES INDIA PRIVATE LIMITED	Director	05/02/2007	05/02/2007	-	Amalgamated	NO
2	U74210PN1975PLC148965	WMI KONECRANES INDIA LIMITED	Whole-time director	10/08/2011	17/02/2011	-	Active	NO

Name :

Mr. Juha Markus Vanhanen

Designation :

Whole-time director

Address :

Metsapirtintie 12D, 19, Espoo 02130, Finland

Date of Birth/Age :

22.02.1969

Date of Appointment :

17.02.2011

DIN No.:

03112303

KEY EXECUTIVES

Name :	Mr. Harshad Hemant Morgaonkar
Designation :	Secretary
Address :	C-10, Soba Sahawas , Karve Nagar, Pune – 411 052, Maharashtra, India
Date of Birth/Age :	18.08.1980
Date of Appointment :	30.09.2014
PAN No.:	AMCPM4449F

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares
Konecranes Finance Corporation, Finland	11852167
Konecranes Finland Corporation, Finland	1
Konecranes Holding GmbH, Finland	1
Konecranes Sweden Holding AB, Sweden	1
Konecranes Holding BV, Netherlands	1
Konecranes Pte Limited, Singapore	1
KCI Cranes Holding (Singapore) Pte. Limited, Singapore	1870414
Total	13722586

AS ON 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
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

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of manufacturing of Material Handling Equipment.

Products :

Item Code No. (ITC Code)	Product Description
87049090	Crane for Material Handling

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Not Divulged

Purchasing :

Not Divulged

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
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
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 :

Information declined by the Management.

Bankers :

Banker Name	ING Vysya Bank Limited
Branch Address	Mittal Towers, A-Wing, Ground Floor, 210 Nariman Point, Mumbai – 400 021, 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

Auditors :
Name :	SRBC and Company LLP Chartered Accountants
Address :	C-401, Panchshil Tech Park, Near Don Bosco School, Yerawada, Pune – 411 006, Maharashtra, India
PAN No.:	ACHFS9117R
Memberships :	Not Available
Collaborators :	Not Available
Ultimate Holding Company:	Konecranes Plc, Finland

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
14000000	Equity Shares	Rs.10/- each	Rs.140.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13722586	Equity Shares	Rs.10/- each	Rs.137.226 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	137.226	12.226	10.559
(b) Reserves & Surplus	587.992	547.375	897.595
(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)	725.218	559.601	908.154
(3) Non-Current Liabilities
(a) Long-term borrowings	565.457	700.205	20.844
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	1.766	1.766	0.000
(d) Long-term provisions	0.000	0.000	6.989
Total Non-current Liabilities (3)	567.223	701.971	27.833
(4) Current Liabilities
(a) Short term borrowings	1291.199	1445.995	803.590
(b) Trade payables	1011.908	1351.657	442.361
(c) Other current liabilities	507.961	793.198	471.005
(d) Short-term provisions	165.686	162.798	176.349
Total Current Liabilities (4)	2976.754	3753.648	1893.305
TOTAL	4269.195	5015.220	2829.292
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1481.917	900.715	386.839
(ii) Intangible Assets	11.877	19.120	0.000
(iii) Capital work-in-progress	2.204	330.409	211.175
(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	25.962
(d) Long-term Loan and Advances	138.195	151.816	117.986
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1634.193	1402.060	741.962
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	589.976	873.540	576.304
(c) Trade receivables	1428.833	2041.024	1303.267
(d) Cash and cash equivalents	172.385	236.230	7.268
(e) Short-term loans and advances	264.069	353.136	120.267
(f) Other current assets	179.739	109.230	80.224
Total Current Assets	2635.002	3613.160	2087.330
TOTAL	4269.195	5015.220	2829.292

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from Operations	2388.699	3231.161	2214.013
		Other Income	185.358	64.982	32.500
		TOTAL (A)	2574.057	3296.143	2246.513
Less	EXPENSES
		Cost of Materials Consumed	1659.780	2074.848	1556.328
		Purchases of Stock-in-Trade	110.574	192.618	0.000
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	177.935	(174.781)	39.978
		Employees benefits expense	399.507	474.247	203.127
		Other expenses	958.820	882.943	517.111
		TOTAL (B)	3306.616	3449.875	2316.544
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(732.559)	(153.732)	(70.031)
Less	FINANCIAL EXPENSES (D)		239.451	161.854	69.238
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(972.010)	(315.586)	(139.269)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		111.523	46.524	27.693
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(1083.533)	(362.110)	(166.962)
Less	TAX (H)		0.850	36.908	(51.912)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(1084.383)	(399.018)	(115.050)
	Earnings/ (Loss) Per Share (Rs.)		(378.31)	(326.37)	(109.00)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	134.748	100.859	NA
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	(487.202)	(227.399)	(344.463)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	(45.40)	(12.35)	(5.20)
Operating Profit Margin (PBDIT/ Sales)	(%)	(30.67)	(4.76)	(3.16)
Return on Total Assets (PBT/Total Assets}	(%)	(25.39)	(7.73)	(6.44)
Return on Investment (ROI) (PBT/Networth)		(1.49)	(0.65)	(0.18)
Debt Equity Ratio (Total Debt/Networth)		2.56	3.84	0.91
Current Ratio (Current Asset/Current Liability)		0.89	0.96	1.10

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	10.559	12.226	137.226
Reserves & Surplus	897.595	547.375	587.992
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	908.154	559.601	725.218
long-term borrowings	20.844	700.205	565.457
Short term borrowings	803.59	1445.995	1291.199
Current maturities of long-term debts	NA	100.859	134.748
Total borrowings	824.434	2247.059	1991.404
Debt/Equity ratio	0.908	4.015	2.746

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(INR in Million)	(INR in Million)	(INR in Million)
Revenue from Operations	2214.013	3231.161	2388.699
		45.941	(26.073)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(INR in Million)	(INR in Million)	(INR in Million)
Revenue from Operations	2214.013	3231.161	2388.699
Profit	(115.050)	(399.018)	(1084.383)
	(5.20%)	(12.35%)	(45.40%)

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	No
8	Designation of contact person	No
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)	No
16	No. of employees	No
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	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

Note:

The registered office of the company has been shifted from Bhandup Village Road, Bhandup (West), Mumbai – 400 078, Maharashtra, India to the present address w.e.f. 19.07.2013.

CORPORATE INFORMATION

WMI Konecranes India Limited the Company formerly known as WMI Cranes Limited was incorporated in the year 1975. The Company is engaged in the business of manufacturing of Material Handling Equipment. The cranes manufactured are extensively used for Handling materials in Machine shop Structural shop Chemical fertilizer and paper plants cement factories Dams Stock yard etc. The Company is a subsidiary of Konecranes Finance Corporation w.e.f. February 2011. During the previous year the Company has entered into composite scheme of arrangement and amalgamation with Konecranes India Private Limited. KIPL whereby engineering and design centre division of KIPL got demerged to Konecranes Shares Services India Private Limited and merger of residual KIPL into the Company

AMALGAMATION ACCOUNTING

The company treats an amalgamation in the nature of merger if it satisfies all the following criteria

i. All the assets and liabilities of the transferor company become after amalgamation the assets and liabilities of the transferee company

ii. Shareholders holding not less than 90percent of the face value of the equity shares of the transferor company other than the equity shares already held therein immediately before the amalgamation by the transferee company or its subsidiaries or their nominees become equity shareholders of the transferee company

iii. The consideration for amalgamation receivable by those equity shareholders of the transferor company who agree to become shareholders of the transferee company is discharged by the transferee company wholly by the issue of equity shares except that cash may be paid in respect of any fractional shares

iv. The business of the transferor company is intended to be carried on after the amalgamation by the transferee company

v. The transferee company does not intend to make any adjustment to the book values of the assets and liabilities of the transferor company except to ensure uniformity of accounting policies

All other amalgamations are in the nature of purchase. The Company accounts for all amalgamations in the nature of merger using the pooling of interest method. The application of this method requires the Company to recognize any noncash element of the consideration at fair value. The Company recognizes assets liabilities and reserves whether capital or revenue of the transferor company at their existing carrying amounts and in the same form as at the date of the amalgamation. The balance in the statement of profit and loss of the transferor company is transferred to the general reserve.

The difference between the amount recorded as share capital issued plus any additional consideration in the form of cash or other assets and the amount of share capital of the transferor company is adjusted in reserves

An amalgamation in the nature of purchase is accounted for using the purchase method. The cost of an acquisition amalgamation is measured as the aggregate of the consideration transferred measured at fair value.

Other aspects of accounting are as below

i. The assets and liabilities of the transferor company are recognized at their fair values at the date of amalgamation. The reserves whether capital or revenue of the transferor company except statutory reserves are not recognized

ii. Any excess consideration over the value of the net assets of the transferor company acquired is recognized as goodwill. If the amount of the consideration is lower than the value of the net assets acquired the difference is treated as capital reserve.

iii. The goodwill arising on amalgamation is amortized to the statement of profit and loss on a systematic basis over its useful life not exceeding five years

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG TERM BORROWINGS
Term loans from others	546.154	679.906
Deferred sales tax loan	19.303	20.299
SHORT TERM BORROWINGS
Working capital loans from banks	139.918	595.995
Other loans and advances	1151.281	850.000
Total	1856.656	2146.200

INDEX OF CHARGES

No Charges Exist for Company.

FIXED ASSETS:

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer Equipments

Intangible Assets

· 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.65.93
UK Pound	1	Rs.102.75
Euro	1	Rs.75.13

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	RAS
Report Prepared by :	ART

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
-- PROFITABILITY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		31

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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