MIRA INFORM REPORT

Report Date :

18.04.2011

IDENTIFICATION DETAILS

Name :	CENTRAL PHARMACEUTICAL COMPANY NO.2
Registered Office :	No. 334 To Hien Thanh Str, Ward 14 - District 10- Ho Chi Minh City
Country :	Vietnam
Financials (as on) :	31.12.2010
Date of Incorporation :	18.08.2010
Com. Reg. No.:	0300483319
Legal Form :	One member liability limited company
Line of Business :	Import - export, trading, distributing, and marketing pharmaceutical formulations, pharmaceutical raw materials, cosmetics and nutritional products.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

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 – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
Viet Nam	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status
English Name	CENTRAL PHARMACEUTICAL COMPANY NO.2
Vietnamese Name	CONG TY TNHH MOT THANH VIEN DUOC PHAM TRUNG UONG 2
Trade name	CENTRAL PHARMACEUTICAL COMPANY NO.2
Abbreviation Name	CODUPHA
Type of Business	One member liability limited company
Year Established	1993
Establishment Decision	No. 409/BYT-QD
Date of Issuance	22 Apr 1993
Place of Issuance	Ministry of Health
Business Registration No.	0300483319
Date of Registration	18 Aug 2010
Place of Registration	Business Registration Office of Hochiminh City
Current registered capital	102,777,872,638 VND
Tax code	0300483319
Total Employees	330
Size	Large

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 102654 issued on May 10th, 1993 Changed ton No. 4106000298	11 Sep 2006
2	Subject has got former Registered English Name: NATIONAL PHARMACEUTICAL COMPANY NO.2 Changed to: CENTRAL PHARMACEUTICAL COMPANY NO 2	18 Aug 2010
3	Subject has got former Registered Vietnamese Name: CONG TY DUOC PHAM TRUNG UONG 2 Changed to: CONG TY TNHH MOT THANH VIEN DUOC PHAM TRUNG UONG 2	18 Aug 2010
4	Subject has got former Type of Business: STATE OWNED COMPANY Changed to: ONE MEMBER LIABILITY LIMITED COMPANY	18 Aug 2010
5	Subject has got former Registered capital: 66,632,937,611 VND Changed to: 102,777,872,638 VND	18 Aug 2010

ADDRESSES

Head Office
Address	No. 334 To Hien Thanh Str, Ward 14 - District 10- Ho Chi Minh City - Vietnam
Telephone	(84-8) 38650938 – 38658638
Fax	(84-8) 38650750 – 38665840
Email	codupha@hcm.fpt.vn
Website	www.codupha.com.vn
Factory Address
Address	No. 1 Ban Phonsavanhtai, Sokpaluang Road - - Vientiane - Laos
Telephone	008. 562135163
Fax	008. 5621223450 - 5621480847
Branch in Ha Noi
Address	No. 60B Nguyen Huy Tuong Str, Thanh Xuan Ward - Dong Da District - Ha Noi City - Vietnam
Telephone	(84-4) 38586059
Fax	(84-4) 38584368
Branch in Can Tho
Address	No. 132A Nguyen Van Cu Str, Can Tho City - Vietnam
Telephone	(84-71) 3899099 - 3899398
Fax	(84-71) 3858436
Branch in Dak Lak
Address	No. 95 Ngo Quyen Str, Tan Loi Ward - Dak Lak Province - Vietnam
Telephone	(84- 50) 3951011
Branch in Nghe An
Address	No. 23 Nguyen Sy Sach Str, K10, Ha Huy Tap Ward - Vinh City - Nghe An Province - Vietnam
Telephone	(84-383 ) 3847163

SUBSIDIARIES AND RELATED COMPANIES

1. PARENT COMPANY - VIETNAM PHARMACEUTICAL CORPORATION
Business Registration	0106001031
Date of Registration	23 Oct 2996
Place of Registration	Ha Noi City Department of Planning and Investment
Tax code	0100109385
Address	No.138B Giang Vo Str - Ba Dinh District - Ha Noi City - Vietnam
Tel	(84-4) 3844 3153/ 3844 3151
Fax	(84-4) 3844 3665
Website	http://www.vinapharm.net.vn
2. SUBSIDIARIES - CODUPHA HANOI
Business Registration	0300483319-008
Date of Registration	01 Sep 2010
Place of Registration	Planning and Investment Department of Ha Noi City
Tax code	0300483319-008
Address	No.60B, Nguyen Huy Tuong Thanh Xuan Trung Ward - Thanh Xuan District - Ha Noi City - Vietnam
Tel	(84-4) 3858 6059/ 3558 110/ 3557 7930
Fax	(84-4) 3858 4368
Website	http://www.codupha.com.vn

DIRECTORS

1 . NAME	Mr. LE VAN SON
Position	Director
Date of Birth	07 Jul 1962
ID Number/Passport	024353738
Date of Issuance	04 Jun 2005
Palce of Issuance	Police Station of Ho Chi Minh City
Resident	385/5 Dien Bien Phu – Ward 4 – Dist 3 – Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Qualification	Bachelor
2 . NAME	Mr. BUI HUU HIEN
Position	Deputy Director
Nationality	Vietnamese
3 . NAME	Mr. TRUONG XUAN LIEN
Position	Deputy Director
Date of Birth	10 Aug 1960
Nationality	Vietnamese
4 . NAME	Mr. NGUYEN VAN TUAT
Position	Chief Accountant
Date of Birth	1958
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

+ Import - export, trading, distributing, and marketing pharmaceutical formulations, pharmaceutical raw materials, cosmetics and nutritional products.
+ Import - export, trading, distributing, marketing oriental medicines, chemicals (excluding harmful and poisonous chemicals), excipients for production of preventive and curative medicines, pharmaceutical packaging materials and other medical products, hygienic products, essential oils, flavors, herbal and animal oils, medical equipments, pharmaceutical production machinery and equipment, bandages, sun glasses, optical glasses, diagnostics and testing chemicals.
+ Logistics and warehousing services.
+ Trading, processing pharmaceuticals with local and foreign companies and factories.
+ Import pharmaceutical oriental and western medicines, vaccines, pharmaceutical raw materials and excipients, pharmaceutical packaging materials, cosmetics, nutritional products, chemicals; pharmaceutical production machines and equipments for pharmaceutical factories and medical instruments and apparatus for treatment units at all levels.
+ Participating in joint-venture projects, co-operating with foreign companies to develop the production and the distribution of medicines
+ Pharmaceutical packing of drug units in case of flood, natural calamities

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products	Medicine, pharmaceutical products
· Market	USA, Canada, France, Spain, Italy, Netherlands, UK, Russia, Turkey, India, Thailand, China, Singapore, Korea, Taiwan, and Japan…
· Ratio	80%
· Mode of payment	T/T, L/C
EXPORT:
· Types of products	Medicines, health rubber
· Market	Russia, Laos
· Ratio	2%
· Mode of payment	T/T, L/C

BANKERS

1. BANK FOR INVESTMENT & DEVELOPMENT OF VIETNAM- HCM CITY BRANCH
Address	134 Nguyen Cong Tru - District 1- Ho Chi Minh City - Vietnam
Telephone	(84-8) 38230125, 38297384
Fax	(84-8) 38298862
2. DEUTSCHE BANK AG, HO CHI MINH CITY BRANCH
Address	Floor 14th - Saigon Center Building- No. 65 Le Loi Street - Ben Nghe Ward - District 1- Ho Chi Minh City - Vietnam
Telephone	(84-8) 3822 2667
Fax	(84-8) 3822 2760
3. FAR EAST NATIONAL BANK
Address	Floor 17th, 2-4A Ton Duc Thang str, Ben Nghe ward - District 1- Ho Chi Minh City - Vietnam
Telephone	(84-8) 38220566
Fax	(84-8) 38275307
4. CITI BANK - BRANCH IN HO CHI MINH CITY
Address	No. 115 Nguyen Hue Str, Ben Nghe Ward - District 1- Ho Chi Minh City - Vietnam
Telephone	(84-8) 38242118
Fax	(84-8) 38242267

SHAREHOLDERS

NAME	VIETNAM PHARMACEUTICAL CORPORATION
Business Registration	0106001031
Date of Registration	23 Oct 2996
Place of Registration	Ha Noi City Department of Planning and Investment
Tax code	0100109385
Address	No.138B Giang Vo Str - Ba Dinh District - Ha Noi City - Vietnam
Tel	(84-4) 3844 3153/ 3844 3151
Fax	(84-4) 3844 3665
Website	http://www.vinapharm.net.vn
Percentage	100%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2010	31/12/2009	31/12/2008
Number of weeks	52	52	52
ASSETS
A – CURRENT ASSETS	1,072,494,349,843	1,043,892,000,000	800,892,000,000
I. Cash and cash equivalents	41,772,213,021	21,483,000,000	45,270,000,000
1. Cash	41,772,213,021	21,483,000,000	45,270,000,000
2. Cash equivalents	0	0	0
II. Short-term investments	0	0	3,050,000,000
1. Short-term investments	0	0	3,050,000,000
2. Provisions for devaluation of short-term investments	0	0	0
III. Accounts receivable	561,658,492,216	505,672,000,000	381,330,000,000
1. Receivable from customers	515,610,608,912	474,718,000,000	353,368,000,000
2. Prepayments to suppliers	9,554,001,844	9,089,000,000	11,414,000,000
3. Inter-company receivable	3,188,972,694	7,854,000,000	4,753,000,000
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	34,254,908,933	14,011,000,000	12,072,000,000
6. Provisions for bad debts	-950,000,167	0	-277,000,000
IV. Inventories	458,822,421,182	502,020,000,000	365,078,000,000
1. Inventories	458,822,421,182	506,069,000,000	368,302,000,000
2. Provisions for devaluation of inventories	0	-4,049,000,000	-3,224,000,000
V. Other Current Assets	10,241,223,424	14,717,000,000	6,164,000,000
1. Short-term prepaid expenses	834,535,400	129,000,000	265,000,000
2. VAT to be deducted	4,670,077,924	7,638,000,000	3,151,000,000
3. Taxes and other accounts receivable from the State	40,305,794	1,407,000,000	0
4. Other current assets	4,696,304,306	5,543,000,000	2,748,000,000
B. LONG-TERM ASSETS	59,752,008,659	31,632,000,000	22,582,000,000
I. Long term account receivable	0	0
1. Long term account receivable from customers	0	0
2. Working capital in affiliates	0	0
3. Long-term inter-company receivable	0	0
4. Other long-term receivable	0	0
5. Provisions for bad debts from customers	0	0
II. Fixed assets	45,713,640,359	17,593,000,000	8,547,000,000
1. Tangible assets	8,897,253,072	10,085,000,000	7,998,000,000
- Historical costs	46,898,821,940	45,775,000,000	41,811,000,000
- Accumulated depreciation	-38,001,568,868	-35,690,000,000	-33,813,000,000
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	6,960,920,148	7,176,000,000	549,000,000
- Initial costs	8,874,340,778	8,874,000,000	747,000,000
- Accumulated amortization	-1,913,420,630	-1,698,000,000	-198,000,000
4. Construction-in-progress	29,855,467,139	332,000,000
III. Investment property	0	0
Historical costs	0	0
Accumulated depreciation	0	0
IV. Long-term investments	14,038,368,300	14,039,000,000	14,035,000,000
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	13,535,808,300	13,536,000,000	13,536,000,000
3. Other long-term investments	502,560,000	503,000,000	499,000,000
4. Provisions for devaluation of long-term investments	0	0
V. Other long-term assets	0	0
1. Long-term prepaid expenses	0	0
2. Deferred income tax assets	0	0
3. Other long-term assets	0	0
TOTAL ASSETS	1,132,246,358,502	1,075,524,000,000	823,474,000,000
LIABILITIES
A- LIABILITIES	1,021,706,598,371	970,113,000,000	658,318,000,000
I. Current liabilities	1,019,718,627,601	967,640,000,000	656,061,000,000
1. Short-term debts and loans	581,236,432,754	494,136,000,000	359,832,000,000
2. Payable to suppliers	344,436,547,570	373,240,000,000	254,056,000,000
3. Advances from customers	20,937,918,713	17,202,000,000	7,047,000,000
4. Taxes and other obligations to the State Budget	5,960,775,926	6,931,000,000	6,549,000,000
5. Payable to employees	7,734,328,339	8,754,000,000	11,692,000,000
6. Accrued expenses	50,650,000	139,000,000	0
7. Inter-company payable	2,572,244,222	3,072,000,000	3,076,000,000
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	56,663,433,365	64,166,000,000	13,809,000,000
10. Provisions for short-term accounts payable	126,296,712	0	0
II. Long-Term Liabilities	1,987,970,770	2,473,000,000	2,257,000,000
1. Long-term accounts payable to suppliers	0	0
2. Long-term inter-company payable	0	0
3. Other long-term payable	0	456,000,000
4. Long-term debts and loans	0	0
5. Deferred income tax payable	0	0
6. Provisions for unemployment allowances	1,987,970,770	2,017,000,000	2,257,000,000
7. Provisions for long-term accounts payable	0	0	0
B- OWNER’S EQUITY	110,539,760,131	105,411,000,000	165,156,000,000
I. OWNER’S EQUITY	110,539,760,131	102,978,000,000	154,394,000,000
1. Capital	62,735,191,829	60,893,000,000	110,054,000,000
2. Share premiums	0	-2,608,000,000
3. Other sources of capital	0	0
4. Treasury stocks	0	0
5. Differences on asset revaluation	0	0
6. Foreign exchange differences	0	0
7. Business promotion fund	35,795,625,450	33,764,000,000	34,023,000,000
8. Financial reserved fund	12,008,942,852	10,729,000,000	10,317,000,000
9. Other funds	0	200,000,000	0
10. Retained earnings	0	0	0
11. Construction investment fund	0	0	0
II. Other sources and funds	0	2,433,000,000	10,762,000,000
1. Bonus and welfare funds	0	2,433,000,000	10,762,000,000
2. Sources of expenditure	0	0	0
3. Fund to form fixed assets	0	0	0
MINORITY’S INTEREST	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	1,132,246,358,502	1,075,524,000,000	823,474,000,000

PROFIT & LOSS STATEMENT
Description	FY2010	FY2009	FY2008
1. Total Sale	2,115,667,576,238	1,840,640,000,000	1,717,137,000,000
2. Deduction item	15,893,391,866	16,532,000,000	32,108,000,000
3. Net revenue	2,099,774,184,372	1,824,108,000,000	1,685,029,000,000
4. Costs of goods sold	1,919,810,835,847	1,676,009,000,000	1,551,633,000,000
5. Gross profit	179,963,348,525	148,099,000,000	133,396,000,000
6. Financial income	28,059,177,669	33,011,000,000	7,288,000,000
7. Financial expenses	78,297,119,094	59,961,000,000	46,712,000,000
- In which: Loan interest expenses	56,192,514,199	25,743,000,000	25,665,000,000
8. Selling expenses	80,421,975,291	75,283,000,000	70,870,000,000
9. Administrative overheads	28,783,953,140	28,787,000,000	24,122,000,000
10. Net operating profit	20,519,478,669	17,079,000,000	-1,020,000,000
11. Other income	1,005,089,156	2,226,000,000	19,470,000,000
12. Other expenses	1,450,000	0	0
13. Other profit /(loss)	1,003,639,156	2,226,000,000	19,470,000,000
14. Total accounting profit before tax	21,523,117,825	19,305,000,000	18,450,000,000
15. Current corporate income tax	5,348,817,841	4,818,000,000	5,166,000,000
16. Deferred corporate income tax	0	0	0
18. Profit after tax	16,174,299,984	14,487,000,000	13,284,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	FY2009	FY2008	Average Industry
Current liquidity ratio	1.05	1.08	1.22	1.74
Quick liquidity ratio	0.60	0.56	0.66	1.02
Inventory circle	4.18	3.34	4.59	3.74
Average receive period	97.63	101.18	82.60	76.97
Utilizing asset performance	1.85	1.70	2.05	1.31
Liability by total asset	90.24	90.20	79.94	49.32
Liability by owner equity	924.29	920.31	398.60	129.21
Ebit / Total asset (ROA)	6.86	4.19	5.36	8.55
Ebit / Owner's equity (ROE)	70.31	42.74	26.71	18.02
Ebit / Total revenue (NPM)	3.67	2.45	2.57	6.82
Gross profit / Total revenue (GPM)	8.51	8.05	7.77	21.89
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Good
Liquidity	Medium
Payment status	Average
Financial Situation	Above Average
Development trend	Positive
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	Direct payment or through its corresponding bank. (L/C) or (T/T)
Sale Methods	Wholesaler
Public opinion	Good

INTERPRETATION ON THE SCORES

CODUPHA was established under the Decision No. 409/BYT-QD issued on April 22^nd 1993 by the Ministry of Health. In August 18^th, 2010, the subject changed type of business from State Owned Company to One Member Liability Limited Company with name ”CONG TY TNHH MOT THANH VIEN DUOC PHAM TRUNG UONG 2”.

Currently, the subject is operating under Business Registration Certificate No. 0300483319 issued by Business Registration Office of Ho Chi Minh City with registered capital VND 102,777,872,638.

Head office of the subject is located at No. 334 To Hien Thanh St- Ward 14- Dist 10- Ho Chi Minh City.
The subject’s main activities are directly export and import, trading and distributing pharmaceutical products, cosmetics, nutritional products, raw materials... The subject imports pharmaceutical products and goods from USA, Canada, France, Spain, Italy, Netherlands, UK, Russia, Turkey, India, Thailand, China, Korea, Taiwan and Japan. Currently, CODUPHA exports its products to Laos.
The subject is the distributor for products of Mekophar, Ranbaxy, Sanofi, Roussel and many other manufactures. The position in the industry of the subject is good. CODUPHA is ranked in the top ten companies in Vietnam pharmaceutical association with high revenue. The market share of the subject is fairly large. It has built a wide distribution system in many provinces nationwide. The subject has advantaged for distribution system and marketing. The competitiveness of the subject is strong.

Nonetheless, in the past ,Vietnam police has seized smuggling goods including toothpastes, medicated oil, alcohol in warehouse of Codupha, this goods source is smuggling imported from China market. On June 3^rd 2006, Vietnam police seized container truck unloading of large amount goods, in which mainly goods made in China (No invoice, documents) and import CODUPHA’s No.14 warehouse including: kinds of cosmetic, bicycle key and vacuum-pump. The subject was recalled many batch of smuggling goods and ban goods in warehouse on August 21st 2006 by Vietnam police.
Since this problem, CODUPHA is being under investigation of Department of Natural Resources and Environment of Hochiminh City. This Government Department is investigating on CODUPHA’s management and use of real estate.

According to legal document, People’s Committee of Ho chi minh City rent the total area of more than 59,000 sq meters at No 334 (Former No. 136) To Hien Thanh Street for CODUPHA setting their office, factor and storage. In fact, CODUPHA has only used about 2,000 sq meters for their businesses. On last September 26^th 2007, The leadership of Vietnam Pharmaceutical Corporation (Ministry of Health) has dismissed Director and two Deputy Directors: Mr. Nguyen Van Hoa – Director, Mrs. Do Thi Su and Mr. Le Dinh An of CODUPHA because of their violation in renting and using warehouse money, setting up a secret fund, appropriating part of worker’s salary...

On January 8^th 2002, according to Decision No. 84/QĐ-UB, People Committee of Hochiminh City let out nearly 60,000 square meters in area at No 334 (Former No. 136) To Hien Thanh Street. However, Board of Managers just using a building with 2 floors and 3 warehouses. Other tens of warehouse over 30 kiosks are for rent, ignore regulations of People Committee of Hochiminh city which don’t allow to subleasing and assignment. Leasing from state with cheap price (1,458 VND/square meter) and for rent with expensive price, then, Board of Managers direct board of accountants set up 2 accounts to evade taxes. In addition, Board of Managers set up a big secret fund to spend for their private purposes.
On January 17^th 2002, Mr. Nguyen Van Hoa signed decision to purchase car over standard doing damage for state. In 2 years 2004 and 2005, he used over 2 billion VND for board of managers traveling abroad incorrect with rules of state. Besides, Boards of Manager destroyed many accounting. From 2002 to 2006, the subject had many promotion money and commissions from its partners but Board of Managers didn’t record in account, they get it in secret fund and destroy many accounting records. In addition, Board of Managers used their power to appropriate part of worker salary and increase allowances incorrect with rules of state for board of managers.

According to the financial data, this subject has been on the way of development and expanding business activities. However, to be strongly supported from parent company and lean on its trade name, loan capital and payable account occupied from its suppliers is high that may push this subject fall into liquidity troubles. This issue may be equivalent by a length history of development, investment and support parent company, the future of this subject seems to be bright especially in pharmaceutical industry which strong protected by local government. It is notable that the liquidity ratio decreased gradually though each year, on the contrary the liability ratio increased respectively. In overview, the business situation is relative when revenue and profit after tax is greater against previous years.

The BBB credit estimate on this subject reflects that this subject has capacity to meet with all medium business transactions.

------------- APPENDIXES----------

INDUSTRY DATA
Industry code	Growth speed (%)		Total employees 2009 (Thousand)		Total enterprises	Annual average capital of enterprises
	Predict 2010	2009
Agriculture, Forestry and Fishing	2.8	3.0	24,788.5		2,399	50,530
Trade and Services	7.5	11	10,517.9		79,181	1,754,973
Construction	7	11.3	2,692.8		17,783	248,268
Manufacturing	12	7.6	7,591.2		30,786	967,068
ECONOMIC INDICATORS
			2010	2009		2008
Population (Million person)			86.93	86.02		86.1
Gross Domestic Products (US$ billion)			102.2	91		84.9
GDP Growth (%)			6.78	5.32		6.2
GDP Per Capita (US$)			1,160	1,080		1,040
Inflation (% Change in Composite CPI)			11.75	6.88		24.4
SERVICE TRADE PERFORMANCE
Billion USD			2010	2009		2008
Exports			71.6	56.6		62.9
Imports			84	68.8		76.6
Trade Balance			-12.4	-12.2		-14.6

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.52
UK Pound	1	Rs.72.72
Euro	1	Rs.64.41

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	--

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.