MIRA INFORM REPORT

Report No. :	499436
Report Date :	21.03.2018

IDENTIFICATION DETAILS

Name :	R.R. INDUSTRIAL CORPORATION (INDIA) LIMITED (w.e.f. 23.03.2017)
Formerly Known As :	R. R. INDUSTRIAL CORPORATION (INDIA) PRIVATE LIMITED
Registered Office :	Station Road, Telghani Naka, Raipur – 492001, Chhattisgarh
Tel. No.:	91-771-4008301/330
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	29.05.2009
Com. Reg. No.:	33-021207
Capital Investment / Paid-up Capital :	INR 79.836 Million
CIN No.: [Company Identification No.]	U52100CT2009PLC021207
IEC No.: [Import-Export Code No.]	6311001543
GSTN : [Goods & Service Tax Registration No.]	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAECR4291B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Trader, importer and supplier of iron and steel products such as channels, square bars, flat and TMT bars, angles, hot rolled, cold rolled, stainless steel, rail poles, sheets flat product, structural steel etc. [Registered activity and also confirmed by management]
No. of Employees :	55 (Approximately)

RATING & COMMENTS

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

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Good
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was incorporated in the year 2009. It is a trader, importer and supplier of iron and steel products such as channels, square bars, flat and TMT bars, angles, hot rolled, cold rolled, stainless steel, rail poles, sheets flat product, structural steel etc. For the financial year 2017, the company has achieved revenue growth as compared to the previous year but has reported a low profit margin of 0.38%. The sound financial risk profile of the company is marked by adequate networth base along with negligible debt balance sheet profile. Rating is constrained on account of highly fluctuation and competitive steel industry. Payment seems to be slow but correct. In view of aforesaid, 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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
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 21.03.2018

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. Abhishek
Designation :	Marketing Manager
Contact No.:	91-9713200254

LOCATIONS

Registered Office :	Station Road, Telghani Naka, Raipur – 492001, Chhattisgarh, India
Tel. No.:	91-771-4008301 / 330
Mob. No.:	91-9713200254 (Mr. Abhishek)
Fax No.:	Not Available
E-Mail :	rrsteelraipur@gmail.com rkscaryp@yahoo.co.in
Website :	http://www.rrsteelraipur.com
Area:	1000 sq. ft.
Location :	Owned
Locality :	Commercial
Warehouse :	Located At: Loha, Raipur, Chhattisgarh, India
Branch Offices :	Located At: · Rourkela (Orissa)           · Indore (Madhya Pradesh)   · Hyderabad (Andhra Pradesh) · Nagpur (Maharashtra) · Sikar (Rajasthan) · Lucknow (Uttar Pradesh) · Surat (Gujarat)

DIRECTORS

AS ON 31.03.2017

Name :

Mr. Sanjay Kumar Jain

Designation :

Managing Director

Address :

House No-3.600, College Ward, Raipur – 492001, Chhattisgarh, India

Date of Birth/Age :

17.09.1971

Qualification:

Graduate

Date of Appointment :

29.05.2009

PAN No.:

ACHPJ6394H

DIN No.:

00703158

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U27108CT2004PTC017004	R.R.IRON AND STEEL PRIVATE LIMITED	01/10/2004	-
U65922WB1991PTC052539	KUSH TRADING & COMMERCE PRIVATE LIMITED	04/01/2010	-

Name :

Mrs. Rekha Jain

Designation :

Director

Address :

House No-3.600, College Ward, Raipur – 492001, Chhattisgarh, India

Date of Birth/Age :

27.03.1972

Qualification:

Graduate

Date of Appointment :

29.05.2009

PAN No.:

ABZPJ0234D

DIN No.:

00703330

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U27108CT2004PTC017004	R.R.IRON AND STEEL PRIVATE LIMITED	01/10/2004	-
U65922WB1991PTC052539	KUSH TRADING & COMMERCE PRIVATE LIMITED	04/01/2010	-

Name :

Mr. Kanhaiya Lal Gangwal

Designation :

Director

Address :

R.R. Industrial Corporation, H.P. Petrol Pump, Telghani Naka, Raipur – 492001, Chhattisgarh, India

Qualification:

Graduate

Date of Birth/Age :

10.07.1940

Date of Appointment :

05.08.2017

PAN No.:

ADSPG8471E

DIN No.:

02611186

Name :

Mr. Yogendra Bhandari

Designation :

Director

Address :

House No.3, Park Street No.1 Opposite Dashehra Ground, Choubey Colony, Raipur – 492001, Chhattisgarh, India

Date of Appointment :

26.07.2017

DIN No.:

07828991

Name :

Mr. Rajesh Duggar

Designation :

Director

Address :

Flat No.203 G.T Heighants, Avanti Bai Chowk, Shankar Nagar, Raipur – 492001, Chhattisgarh, India

Date of Appointment :

26.07.2017

DIN No.:

07829027

Name :

Mr. Arun Bakliwal

Designation :

Director

Address :

B-505 Sushant Lok, Phase 1, Near Sushanr Arcade Sushant Lok, Phase 1, Galleria DLF-IV, Gurugram – 122009, Chhattisgarh, India

Date of Appointment :

26.07.2017

DIN No.:

07891347

KEY EXECUTIVES

Name :	Mr. Abhishek
Designation :	Marketing Manager
Name :	Mr. Ravi Kella
Designation :	Chief Financial Officer
Address :	52, IVth Floor, Block III, Shri Krishna Nagar Colony, Gudhvari, Raipur – 492001, Chhattisgarh, India
Date of Appointment :	26.07.2017
PAN No.:	AHLPR2564G
Name :	Pooja Chandak
Designation :	Company Secretary
Address :	H/O 16, Hiwari Nagar, Jai Jalaram Mangal Karyalaya Road, Nagpur – 440008, Maharashtra, India
Date of Appointment :	25.09.2017
PAN No.:	AHRPC6055D

MAJOR SHAREHOLDERS

AS ON 31.03.2017

Names of Shareholders	No. of Shares
Sanjay Kumar Jain	5000
Rekha Jain	5000
R.R. Iron and Steel Private Limited, India	375000
Kanhaiya Lal Gangwal	2105000
Kush Trading and Commerce Private Limited, India	5483600
Roshni Jain	5000
Rohit Jain	5000
Total	7983600

Equity Share Break up (Percentage of Total Equity)

AS ON 28.09.2017

Category	Percentage
Promoters [Individual/Hindu Undivided Family (Indian)]	26.49
Public/Other than promoters [Individual/Hindu Undivided Family (Indian)]	0.13
Public/Other than promoters [Body corporate]	73.38
Total	100.00

BUSINESS DETAILS

Line of Business :

Trader, importer and supplier of iron and steel products such as channels, square bars, flat and TMT bars, angles, hot rolled, cold rolled, stainless steel, rail poles, sheets flat product, structural steel etc. [Registered activity and also confirmed by management]

Products / Services :

Name and Description of main products / services	ITC Code
Steel Products	72042190

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Products :

· Finished Goods

Countries :

· Malaysia

Terms :

Selling :

L/C, Cheque and Others (RTGS)

Purchasing :

L/C, Cheque and Others (RTGS)

PRODUCTION STATUS – (NOT AVAILABLE)

GENERAL INFORMATION

Suppliers :

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

· Jindal Steel and Power Limited

Customers :

End Users, OEM’s

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

No. of Employees :

35 (Approximately)

Bankers :

Banker Name :	State Bank of India
Branch :	SME Branch Raipur Zonal Office, Building, Byron Bazar, Raipur – 492001, Chhattisgarh, India
Person Name (With Designation) :	--
Contact Number :	91-771-4004370 (Continuously Ringing)
Name of Account Holder :	--
Account Number :	--
Account Since (Date/Year of Account Opening) :	--
Average Balance Maintained :	--
Credit Facilities Enjoyed (CC/OD/Term Loan) :	--
Account Operation :	--
Remark :	--

· Punjab National Bank, Main Branch, Jai Stambh Chowk, Raipur – 492001, Chhattisgarh, India

· State Bank of India, ME Sales Hub, SME Branch Premises, Administrative Office Building, Bayron Bazar, Raipur – 492001, Chhattisgarh, India

· State Bank of India, Medium Enterprises Sales Hub, SME Branch Premises, Byron Bazar, Raipur – 492001, Chhattisgarh, India

Facilities :

SECURED LOANS	31.03.2017 INR In Million	31.03.2016 INR In Million
LONG TERM BORROWINGS
Loans repayable on demand from banks	0.559	0.054
SHORT TERM BORROWINGS
Working capital loans from banks	22.738	24.598
Total	23.297	24.652

Auditors :
Name :	R.K. Singhania and Associates Chartered Accountants
Address :	205, 1st Floor, Samta Colony, Raipur, Chhattisgarh, India
PAN No.:	AAGFR3093N
Memberships :	Not Available
Collaborators :	Not Available
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· R. R. Industrial Corporation · Shree Shyam Rolling Mill, India · Kanhaiya Lal Gangwal (HUF) · Vijay Jain (HUF) · R.R. Iron and Steel Private Limited

CAPITAL STRUCTURE

AS ON 28.09.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	INR 10/- each	INR 100.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7983600	Equity Shares	INR 10/- each	INR 79.836 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	79.836	79.836	79.836
(b) Reserves & Surplus	145.958	136.325	130.008
(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)	225.794	216.161	209.844
(3) Non-Current Liabilities
(a) Long-term borrowings	3.048	0.054	0.137
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	120.360	91.568	41.950
(d) Long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	123.408	91.622	42.087
(4) Current Liabilities
(a) Short term borrowings	22.738	24.598	20.820
(b) Trade payables	394.198	166.957	144.092
(c) Other current liabilities	44.271	38.456	6.689
(d) Short-term provisions	4.683	2.702	1.985
Total Current Liabilities (4)	465.890	232.713	173.586
TOTAL	815.092	540.496	425.517
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1.827	0.405	0.481
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	6.574	4.712	4.712
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	25.051	24.488	24.109
(c) Deferred tax assets (net)	0.150	0.081	0.070
(d) Long-term Loan and Advances	27.493	21.065	18.611
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	61.095	50.751	47.983
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	15.018	10.533	5.237
(c) Trade receivables	547.460	387.794	261.009
(d) Cash and cash equivalents	65.218	15.922	10.019
(e) Short-term loans and advances	103.233	64.967	93.848
(f) Other current assets	23.068	10.529	7.421
Total Current Assets	753.997	489.745	377.534
TOTAL	815.092	540.496	425.517

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Total Revenue from operations	2513.525	1711.947	1435.347
	Other Income	4.751	6.452	0.397
	TOTAL	2518.276	1718.399	1435.744
		[Increase in orders]
Less	EXPENSES
	Purchases of Stock-in-Trade	2416.241	1588.832	1305.984
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(4.484)	(5.296)	6.063
	Employee benefit expense	3.551	3.169	7.167
	Other expenses	60.427	96.284	102.633
	TOTAL	2475.735	1682.989	1421.847
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	42.541	35.410	13.897
Less	FINANCIAL EXPENSES	27.689	26.208	7.024
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	14.852	9.202	6.873
Less	DEPRECIATION/ AMORTISATION	0.608	0.197	0.315
	PROFIT/ (LOSS) BEFORE TAX	14.244	9.005	6.558
Less	TAX	4.610	2.688	1.958
	PROFIT/ (LOSS) AFTER TAX	9.634	6.317	4.600
	Earnings / (Loss) Per Share (INR)	1.21	0.79	0.58

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	0.206	0.100	0.100
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	51.273	(16.334)	(0.659)
Net cash flows from (used in) operating activities	51.273	(16.334)	(0.800)

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	79.50	82.68	66.37
Account Receivables Turnover (Income / Sundry Debtors)	4.59	4.41	5.50
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	59.55	38.35	40.27
Inventory Turnover (Operating Income / Inventories)	2.83	3.36	2.65
Asset Turnover (Operating Income / Net Fixed Assets)	5.06	6.92	2.68

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.58	0.43	0.41
Debt Equity Ratio (Total Liability / Networth)	0.12	0.11	0.10
Current Liabilities to Networth (Current Liabilities / Net Worth)	2.06	1.08	0.83
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.04	0.02	0.02
Interest Coverage Ratio (PBIT / Financial Charges)	1.54	1.35	1.98

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
PAT to Sales ((PAT / Sales) * 100)	%	0.38	0.37	0.32
Return on Total Assets ((PAT / Total Assets) * 100)	%	1.18	1.17	1.08
Return on Investment (ROI) ((PAT / Networth) * 100)	%	4.27	2.92	2.19

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	1.62	2.10	2.17
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	1.59	2.06	2.14
G-Score Ratio Financial (Networth / Total Assets)	0.28	0.40	0.49
G-Score Ratio Debt (Debts / Equity Capital)	0.33	0.31	0.26
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	1.62	2.10	2.17

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	79.836	79.836	79.836
Reserves & Surplus	130.008	136.325	145.958
Net worth	209.844	216.161	225.794
Long-term borrowings	0.137	0.054	3.048
Short term borrowings	20.820	24.598	22.738
Current maturities of long-term debts	0.100	0.100	0.206
Total borrowings	21.057	24.752	25.992
Debt/Equity ratio	0.100	0.115	0.115

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	1435.347	1711.947	2513.525
		19.271	46.823

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	1435.347	1711.947	2513.525
Profit/ (Loss)	4.600	6.317	9.634
	0.32 %	0.37 %	0.38 %

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	Yes
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%	Yes
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

COMPANY OVERVIEW

R. R. Industrial Corporation (India) Limited is a public limited (CIN U27100CT2009PLC021207) company having its registered office at Station Road Telghani Naka Raipur, Pin No. 492001 (Chhattisgarh) is engaged in Trading business of Steel Material. Company has converted from Private Limited Company to Public Limited Company w.e.f. 23rd March, 2017.

STATE OF COMPANY AFFAIRS:

As the company is now entered into core competency in the business, there is huge turnover in this year. The company has now blurred in the market expectation by introducing its existing business in the new form.

There is wider scope for the company to enter into new business or conglomerates activities.

UNSECURED LOANS:

PARTICULARS	31.03.2017 INR In Million	31.03.2016 INR In Million
LONG TERM BORROWINGS
Loans and advances from related parties	2.489	0.000
Total	2.489	0.000

INDEX OF CHARGES:

S No	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Date of Satisfaction	Amount	Address
1	B61695946	10385371	Punjab National Bank	28/09/2012	-	-	45000000.0	Main Branch, Jai Stambh Chowk, Raipur 492001, Chhattisgarh, India
2	B83220681	10321086	State Bank of India	11/11/2011	26/08/2013	-	114368000.0	Medium Eenterprises Sales Hub, SME Branch Premises, Byron Bazar, Raipur 492001, Chhattisgarh, India

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 65.22
UK Pound	1	INR 91.33
Euro	1	INR 79.96

INFORMATION DETAILS

Information Gathered by :	SPR
Analysis Done by :	PRY
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	NO
--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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