MIRA INFORM REPORT

Report No. :	490919
Report Date :	13.02.2018

IDENTIFICATION DETAILS

Name :	MARDEC R.K. LATEX PRIVATE LIMITED
Registered Office :	A-101 and 102, KSSIDC Industrial Estate, Veerapura Post, Doddaballapur Taluk, Bangalore – 561203, Karnataka
Tel. No.:	91-487-2338524
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	31.10.1986
Com. Reg. No.:	08-033326
Capital Investment / Paid-up Capital :	INR 91.017 Million
CIN No.: [Company Identification No.]	U25199KA1986PTC033326
IEC No.:	1088009158
GSTIN/UIN :	32AAACC9284F1ZR
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACC9284F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and exporter of natural rubber. [Registered activity and also confirmed by management]
No. of Employees :	200 (Approximately)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

C

Credit Rating	Explanation	Rating Comments
C	Medium High Risk	Business dealings permissible preferably on secured basis

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject was incorporated in the year 1986 and it is having moderate track records. The company has been incurring losses since last two financial years. Rating takes into consideration huge accumulated losses registered by the company which has resulted into erosion of its entire networth. Further, rating is constrained on account of excess of borrowing recorded during the year. Trade relations are reported as fair. Payments are seems to be slow. In view of aforesaid, the company can be considered for business dealings with safe and secured 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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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 31-03-2016.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 13.02.2018

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION PARTED BY

Name :	Mr. Rajesh T. S.
Designation :	Accounts Manager
Contact No.:	91-487-2338524
Date :	09.02.2018

LOCATIONS

Registered Office :	A-101 and 102, KSSIDC Industrial Estate, Veerapura Post, Doddaballapur Taluk, Bangalore – 561203, Karnataka, India
Tel. No.:	91-487-2338524 / 2332431
Fax No.:	91-487-2332553
E-Mail :	companysecretary@rklatex.com info@rklatex.com
Website :	http://www.rklatex.com
Area :	1500 Sq. ft.
Location :	Rented
Locality :	Commercial
Corporate Office :	Anamallais House Annexe, Chembukavu. P.O. Trichur – 680020, Kerala, India
Factory 1 :	Anamallais Rubber Estate Premises, Kannambra P.O., Palakkad – 678686, Kerala, India
Factory 2 :	Vadapuram P.O. Nilambur, Malappuram – 676542, Kerala, India
Factory 3 :	Thambalakad P.O., Kanjirappally, Kottayam – 686526, Kerala, India

DIRECTORS

AS ON 31.03.2017

Name :

Mr. Ranjit Elanjickal Kuruvilla

Designation :

Director

Address :

Anamallais House, Chembukavu Thrissur District – 680020, Kerala, India

Date of Birth/Age :

21.02.1960

Date of Appointment :

08.10.2008

DIN No.:

00246757

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U72900KL2016PTC046854	SHUZI TECHNOLOGIES PRIVATE LIMITED	21/09/2016	-
U25199KA2007PTC043574	REJUVENATED RUBBER COMPOUND PRIVATE LIMITED	13/08/2007	-
U45203KL2004PTC017350	TRC CONSTRUCTION INDIA PRIVATE LIMITED	15/05/2006	-
L20211KL1945PLC001708	WESTERN INDIA PLYWOODS LIMITED	13/09/2017	-
U02002KL1931PTC000016	ANAMALLAIS TIMBER TRUST PVT LTD	18/11/1985	-
U51109KA2005PTC037483	ANAMALLAIS RESORTS PRIVATE LIMITED	11/11/2011	-
U25199KA2004PTC034215	R.K. LATEX PRIVATE LIMITED	25/06/2004	-
U25199KA2004PTC034214	MARDEC R.K. LATEX PAIKA PRIVATE LIMITED	25/06/2004	-
U67120KA2002PTC029966	R K INVESTMENTS AND HOLDINGS (INDIA) PRIVATE LIMITED	03/01/2002	-
U29299KA2002PTC029965	R.K. ELASTOMERS PRIVATE LIMITED	03/01/2002	-

Name :

Mr. Chennat Haridasmenon

Designation :

Wholetime Director

Address :

Sri Sri, Plot No. 111, GCDA Road, Periyar Garden, Thottakkattukara Aluva – 683108, Kerala, India

Date of Appointment :

16.10.2014

DIN No.:

06996916

Name :

Mr. Thomas Kunnathupadickal

Designation :

Wholetime Director

Address :

Flat No. 4, Capital Legend, Korappath Lane, Chembukavu, Thrissur – 680020, Kerala, India

Date of Birth/Age :

06.09.1958

Date of Appointment :

16.10.2014

DIN No.:

06996922

Name :

Mr. Mohamad Razali Bin Abdul Hamid

Designation :

Director

Address :

No. 65 Jln. Dato' Dagang 8 Tmn Sentosa Kelang 41200, Malaysia

Date of Appointment :

16.10.2014

DIN No.:

06997572

Name :

Mr. Thomas Ong Keat Siew

Designation :

Director

Address :

No 3, Jalan Ssi/3 47300 Petaling Jaya Petaling Jaya 47300, Malaysia

Date of Appointment :

28.12.2015

DIN No.:

07363466

KEY EXECUTIVES

Name :	Mr. Thomas Kunnathupadickal
Designation :	Company Secretary
Address :	Flat No. 4, Capital Legend, Korappath Lane, Chembukavu, Thrissur – 680020, Kerala, India
Date of Birth/Age :	06.09.1958
Date of Appointment :	01.12.2009
PAN No.:	ADPPK7789J
Name :	Mr. Rajesh T. S.
Designation :	Accounts Manager

MAJOR SHAREHOLDERS

AS ON 31.03.2017

Names of Shareholders (Equity Shares)	No. of Shares
R K Investments, India	4217500
Mardec International Sdn Bhd, Malaysia	2404871
E Ranjit	1323856
Sushil	70000
Total	8016227

Names of Shareholders (Preference Shares)	No. of Shares
R K Investments and Holdings India Private Limited, India	700000
Mardec International Sun Bhd, Malaysia	325650
E Ranjit	59860
Total	1085510

Equity Share Break up (Percentage of Total Equity)

AS ON 28.09.2017

Category	Percentage
Promoters [Individual/Hindu Undivided Family (Indian)]	17.39
Promoters [Bodies corporate]	82.61
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and exporter of natural rubber. [Registered activity and also confirmed by management]

Products / Services :

Name and Description of main products / services	ITC Code
Centrifued latex	40011010

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

• Natural Rubber

Countries :

• Singapore
• Brazil

Imports :

Not Divulged

Terms :

Selling :

L/C, Cheque and Credit (30 / 60 / 90 Days)

Purchasing :

L/C, Cheque and Credit (30 / 60 / 90 Days)

PRODUCTION STATUS – (NOT AVAILABLE)

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark :	--

Customers :

Manufacturer

Reference :	Penta Latex Limited
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark :	--

• J. K. Ansell Limited
• Hindustan Lifecare Limited

No. of Employees :

200 (Approximately)

Bankers :

Banker Name :	State Bank of India
Branch :	SME Branch, Maheswari Building, M.G. Road, Thrissur – 680020, Kerala, India
Person Name (With Designation) :	--
Contact Number :	--
Name of Account Holder :	--
Account Number :	--
Account Since (Date/Year of Account Opening) :	--
Average Balance Maintained :	--
Credit Facilities Enjoyed (CC/OD/Term Loan) :	CC/TL= INR 75.000 million
Account Operation :	--
Remark :	--

Facilities :

SECURED LOANS	31.03.2017 INR In Million	31.03.2016 INR In Million
LONG TERM BORROWINGS
Rupee term loans from banks	76.752	84.375
Total	76.752	84.375

Auditors :
Name :	V. Venugopalan and Associates Chartered Accountants
Address :	Kottil Valappil Lane, Adjacent to CPI Office, Kottappuram Road, Thrissur, Kerala, India
PAN No.:	AAFFV0286J
Memberships :	Not Available
Collaborators :	Not Available
Holding company :	· R K Investments and Holdings (India) Private Limited
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· D1 Fortification Private Limited · Anamallais Rubber Estate · S.K. Estate
Others :	· Restolex Coir Products Private Limited · Rejuvenated Rubber Compound Private Limited

CAPITAL STRUCTURE

AS ON 28.09.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
8896550	Equity Shares	INR 10/- each	INR 88.966 Million
1103450	Preference Shares	INR 10/- each	INR 11.034 Million
	Total		INR 100.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8016227	Equity Shares	INR 10/- each	INR 80.162 Million
1085510	Preference Shares	INR 10/- each	INR 10.855 Million
	Total		INR 91.017 Million

FINANCIAL DATA

[all figures are in INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	91.017	91.017	91.017
(b) Reserves & Surplus	(114.937)	(109.557)	(84.790)
(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)	(23.920)	(18.540)	6.227
(3) Non-Current Liabilities
(a) Long-term borrowings	212.849	204.579	106.869
(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	7.243	6.293	5.893
Total Non-current Liabilities (3)	220.092	210.872	112.762
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	66.900
(b) Trade payables	20.313	15.017	11.079
(c) Other current liabilities	13.904	15.208	12.802
(d) Short-term provisions	0.515	0.792	0.504
Total Current Liabilities (4)	34.732	31.017	91.285
TOTAL	230.904	223.349	210.274
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	91.682	96.628	104.313
(ii) Intangible Assets	0.136	0.246	0.038
(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	0.000	0.000	0.000
(c) Deferred tax assets (net)	19.938	19.477	16.153
(d) Long-term Loan and Advances	6.099	5.367	5.608
(e) Other Non-current assets	19.523	19.544	19.536
Total Non-Current Assets	137.378	141.262	145.648
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	53.434	42.254	29.507
(c) Trade receivables	13.597	10.927	8.734
(d) Cash and cash equivalents	1.719	4.447	0.604
(e) Short-term loans and advances	24.776	24.459	25.781
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	93.526	82.087	64.626
TOTAL	230.904	223.349	210.274

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Total Revenue from operations	474.368	380.197	431.269
	Other Income	3.808	0.572	3.195
	TOTAL	478.176	380.769	434.464
Less	EXPENSES
	Cost of Materials Consumed	342.311	279.209	314.254
	Purchases of Stock-in-Trade	28.198	21.773	22.012
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(8.132)	(9.794)	5.325
	Employee benefit expense	21.891	21.335	19.870
	Other expenses	79.373	71.984	70.222
	TOTAL	463.641	384.507	431.683
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	14.535	(3.738)	2.781
Less	FINANCIAL EXPENSES	13.883	15.608	9.794
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	0.652	(19.346)	(7.013)
Less	DEPRECIATION/ AMORTISATION	6.493	8.746	14.748
	PROFIT/ (LOSS) BEFORE TAX	(5.841)	(28.092)	(21.761)
Less	TAX	(0.461)	(3.324)	(5.156)
	PROFIT/ (LOSS) AFTER TAX	(5.380)	(24.768)	(16.605)
	Earnings / (Loss) Per Share (INR)	(0.67)	(3.09)	(2.07)

Expected Sales (2017-2018): INR 450.000 Million (Due to Depend on market)

The above information has been parted by Mr. Ramesh T. S. (Accounts Manager)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	8.400	4.800	4.800
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	4.132	(10.092)	4.426
Net cash flows from (used in) operating activities	4.132	(10.092)	4.426

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	10.46	10.49	7.39
Account Receivables Turnover (Income / Sundry Debtors)	34.89	34.79	49.38
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	20.01	18.21	12.03
Inventory Turnover (Operating Income / Inventories)	0.27	(0.09)	0.09
Asset Turnover (Operating Income / Net Fixed Assets)	0.16	(0.04)	0.03

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	1.11	1.08	0.97
Debt Equity Ratio (Total Liability / Networth)	(9.25)	(11.29)	28.68
Current Liabilities to Networth (Current Liabilities / Net Worth)	(1.45)	(1.67)	14.66
Fixed Assets to Networth (Net Fixed Assets / Networth)	(3.84)	(5.23)	16.76
Interest Coverage Ratio (PBIT / Financial Charges)	1.05	(0.24)	0.28

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
PAT to Sales ((PAT / Sales) * 100)	%	1.11	1.08	0.97
Return on Total Assets ((PAT / Total Assets) * 100)	%	(9.25)	(11.29)	28.68
Return on Investment (ROI) ((PAT / Networth) * 100)	%	(1.45)	(1.67)	14.66

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	2.69	2.65	0.71
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	1.15	1.28	0.38
G-Score Ratio Financial (Networth / Total Assets)	(0.10)	(0.08)	0.03
G-Score Ratio Debt (Debts / Equity Capital)	2.43	2.30	1.96
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	2.69	2.65	0.71

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

FINANCIAL ANALYSIS

[all figures are in INR Million]

DEBT EQUITY RATIO

Particular	31.03.2015	31.03.2016	31.03.2017
	(INR In Million)	(INR In Million)	(INR In Million)
Share Capital	91.017	91.017	91.017
Reserves & Surplus	(84.790)	(109.557)	(114.937)
Net worth	6.227	(18.540)	(23.920)
Long-term borrowings	106.869	204.579	212.849
Short term borrowings	66.900	0.000	0.000
Current maturities of long-term debts	4.800	4.800	8.400
Total borrowings	178.569	209.379	221.249
Debt/Equity ratio	28.677	(11.293)	(9.250)

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2015	31.03.2016	31.03.2017
	(INR In Million)	(INR In Million)	(INR In Million)
Sales	431.269	380.197	474.368
		(11.842)	24.769

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016	31.03.2017
	(INR In Million)	(INR In Million)	(INR In Million)
Sales	431.269	380.197	474.368
Profit/ (Loss)	(16.605)	(24.768)	(5.380)
	(3.85 %)	(6.51 %)	(1.13 %)

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	Yes
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	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%	Yes
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	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

REVIEW OF BUSINESS OPERATIONS AND FINANCIAL OVERVIEW:

The Company has reported total income of INR 478.100 million for the current year as compared to INR 380.700 million in the previous year. The Net Loss for the year amounted to INR 5.380 million in the current year as compared to INR 24.768 million in the previous year.

UNSECURED LOANS:

PARTICULARS	31.03.2017 INR In Million	31.03.2016 INR In Million
LONG TERM BORROWINGS
Loans and advances from related parties	136.097	120.204
Total	136.097	120.204

INDEX OF CHARGES:

S No	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Date of Satisfaction	Amount	Address
1	C65416760	80022259	STATE BANK OF INDIA	10/03/2000	09/04/2015	-	97300000.0	SME BRANCH, MAHESWARI BUILDING, M.G. ROAD, THRISSUR KL680020IN
2	A21418207	80022262	BANK OF INDIA	21/01/2006	12/12/2006	17/08/2007	80000000.0	M.G. ROAD THRISSUR KL680001IN
3	A11661543	80022264	STATE BANK OF INDIA	02/02/1998	16/03/2004	26/02/2007	90000000.0	SIB BRANCHM G ROADT THRISSUR KL680020IN
4	A11661311	80022265	STATE BANK OF INDIA	23/08/2004	-	26/02/2007	42500000.0	SIB BRANCH TRISSUR KL680020IN

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Office Equipment

· Computer

· Vehicles

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 records 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	INR
US Dollar	1	INR 64.28
UK Pound	1	INR 89.02
Euro	1	INR 78.93

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	PSD
Report Prepared by :	NKT

SCORE FACTORS

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

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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