CREDIT RISK GRADING SCORE SHEET Reference No: Borrower: Gro !

Na"e #if an$%: Branch: Industry/Sector: Date of Financials: Completed by: Approved by: N "&er 1 $ ( , & 1 * % Criteria A+ ,inancia* Risk 13 0evera.e: 41&56 Debt 78uity 9atio 4:6 + )imes )otal 0iabilities to )an.ible ;et <orth All calculations should be based on annual financial statements of the borro<er 4audited preferred63 $3 0i8uidity: 41&56 Current 9atio 4:6 + )imes Current Assets to Current 0iabilities Grading Superior "ood Acceptable -ar.inal//atchlist Special -ention Substandard Doubtful Bad/0oss (eig't -./ )ara"eter 0ess than =3$&: =3$1: to =3(& > =3(1: to =3&= > =3&1: to =3*& > =3*1: to 13$& > 13$1: to $3== > $3=1: to $3&= > $3&1: to $3*& > -ore than $3*&: "reater than $3*,: $3&=: to $3*, > $3==: to $3,? > 13&=: to 13?? > 131=: to 13,? > =3?=: to 13=? > =3%=: to =3%? > =3*=: to =3*? > 0ess than =3*=: "reater than $&5 $=5 to $,5 1&5 to 1?5 1=5 to 1,5 *5 to ?5 ,5 to 15 15 to (5 0ess than 15 Aggregate Score: _________

Appendix C
Date:

Risk Grading:

_________

S'ort SU "D ACC ) -"//0 SSS DF B0

Score Fully cash secured! secured by "overnment/International Ban# "uarantee %&' *&+%, 1&+*, &&+1, ,&+&, (&+,, 2(& Score 1& 1, 1( 1$ 11 1= % * = 1& 1, 1( 1$ 11 1= % * = 1& 1, 1( 1$ 1= ? * = Act a* Score )ara"ete O&tained r

(3 rofitability: 41&56 @peratin. rofit -ar.in 456 @peratin. rofit :1== Sales

,3 Covera.e: 4&56 Interest Covera.e 9atio 4:6+ )imes 7arnin. Before Interest A )a> 47BI)6 Interest on debt Tota* Score0,inancia* Risk

-ore than $3==: -ore than 13&1: 0ess than $3==: -ore than 13$&: 0ess than 13&=: -ore than 13==: 0ess than 13$,: 0ess than 13==:

& , ( $ =

-.

Criteria

(eig' t

)ara"eter

Score

B+ B siness1Ind str$ Risk 23/ 13 SiBe of Business 4Sales in BD) crore6

Act a* Score )ara"ete O&tained r

)he siBe of the borro<erCs business measured by the most recent yearCs total sales3 referably based on audited financial statements $3 A.e of Business )he number of years the borro<er has been en.a.ed in the primary line of business3 (3 Business @utloo# A critical assessment of the medium term prospects of the borro<er! ta#in. into account the industry! mar#et share and economic factors3 ,3 Industry "ro<th &3 -ar#et Competition

D 1=3== (=3== E &?3?? 1=3== E $?3?? &3== + ?3?? $3&= + ,3?? 2 $3&= D 1= years D & + 1= years $ + & years 2 $ years Favorable Stable Sli.htly Uncertain Cause for Concern

& , ( $ 1 = ( $ 1 = ( $ 1 =

Stron. 41=5'6 "ood 4D&5 + 1=56 -oderate 415 + &56 ;o "ro<th 42156 Dominant layer -oderately Competitive Fi.hly Competitive Difficult Avera.e 7asy

( $ 1 = $ 1 = $ 1 = 23

13 7ntry/7>it Barriers

Tota* Score4B siness1Ind str$ Risk

Criteria

(eig' t

)ara"eter

Score

Score

C+ 5anage"ent Risk

26/ & ( $ =

Act a* )ara"et er

O&taine d

13 7>perience 4-ana.ement A -ana.ement )eam6

-ore than 1= years in the related line of business &E1= years in the related line of business )he 8uality of mana.ement 1E& years in the related based on the a..re.ate number line of business of years that the Senior ;o e>perience -ana.ement )eam has been in the industry3 $3 Second 0ine/ Succession 9eady Succession Succession <ithin 1+$ years Succession <ithin $+( years Succession in 8uestion Gery "ood -oderate oor 9e.ular Conflict

, ( $ =

(3 )eam /or#

( $ 1 = 26

Tota* Score45anage"ent Risk

Criteria D+ Sec rit$ Risk

(eig't 2./

)ara"eter Fully pled.ed facilities/substantially cash covered/9e.3 -ort.! for FB0 9e.istered Fypothecation 41st char.e/1st ari passu char.e6 $nd Char.e/Inferior char.e Simple hypothecation/ne.ative lien on assets3 ;o security 9e.istered -ort.a.e on -unicipal Corporation/ rime area property3 9e.istered -ort.a.e on ourashava/semi+urban area property 78uitable -ort.a.e or ;o property but plant A machinery as collateral ;e.ative lien on collateral ;o collateral ersonal .uarantee <ith hi.h net <orth or Stron. Corporate "uarantee ersonal "uarantees or Corporate "uarantee <ith avera.e financial stren.th ;o Support/"uarantee

Scor e , ( $ 1 =

Act a* Score )ara"ete O&taine r d

13 Security Covera.e 4 rimary6

$3 Collateral Covera.e 4 roperty 0ocation6

, ( $ 1 =

(3 Support 4"uarantee6

1 =

UtiliBation Compliance Succession )eam 7>perience Barriers rofitability Covera.e 0evera.e A.e Business 0i8uidity Industry Account -ar#et SiBe ersonal of /or# ofto of -ana.ement Business/Ind Financial CREDIT 9elationship Collateral Security Support Ste! I II III I7 7 7I Business Competition Business Deposits Conduct @utloo# "ro<th 0imit of9is# ustry 9is# RISK 9is# Covera.e 9is# Identif$ A**ocate Esta&*is' Assign In! Arri8e a** tt'e at Covenants/Co )rinci!a* weig'tages data t'e Ke$ Credit to arri8e Risk Risk to ndition Co"!onents )rinci!a* )ara"eters eac' at Grading t'e of score t'e &ased Risk ke$ on Criteria (eig't Co"!onents !ara"eters+ t'e on tota* ke$ score Tota* Score4 Sec rit$ Risk !ara"eters+ o&tained+

)ara"eter

Scor e 2. Scor e & , $ =

Act a* Score )ara"ete O&taine r d Act a* Score )ara"ete O&taine r d

Criteria E+ Re*ations'i! Risk 13 Account Conduct

(eig't 2./

)ara"eter -ore than ( 4three6 years accounts <ith faultless record 0ess than ( 4three6 years accounts <ith faultless record Accounts havin. satisfactory dealin.s <ith some late payments Fre8uent ast dues A Irre.ular dealin.s in account -ore than 1=5 ,=5 + 1=5 0ess than ,=5 Full Compliance Some ;on+Compliance ;o Compliance

$3 UtiliBation of 0imit 4actual/proHection6 (3 Compliance of Covenants / Conditions ,3 ersonal Deposits

$ 1 = $ 1 = 1

ersonal accounts of the #ey business Sponsors/ )he e>tent to <hich the ban# rincipals are maintained in the maintains a personal ban#in. ban#! <ith si.nificant deposits relationship <ith the #ey ;o depository relationship business sponsors/principals3 Tota* Score4Re*ations'i! Risk Grand Tota*4 A** Risk

= 2. 2..