MIRA INFORM REPORT

Report Date :

10.04.2012

IDENTIFICATION DETAILS

Correct Name :	DANANG PHARMACEUTICAL - MEDICAL EQUIPMENT JOINT STOCK COMPANY
Registered Office :	No. 2, Phan Dinh Phung Str, Hai Chau Dist, Da Nang City
Country :	Vietnam
Financials (as on) :	30.09.2011
Year of Establishment :	1976
Com. Reg. No.:	0400101404
Legal Form :	Joint Stock Company
Line of Business :	Importing and trading in pharmaceutical products, medical equipment, cosmetics and nutritious food
No. of Employees :	Over 500

RATING & COMMENTS

MIRA’s Rating :

B

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

Status :	Moderate
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 – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
Vietnam	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	DANANG PHARMACEUTICAL - MEDICAL EQUIPMENT JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN DUOC - THIET BI Y TE DA NANG
Short name	DAPHARCO
Type of Business	Joint stock company
Year Established	1976
Establishment Decision	195/2004/QD-UB
Date of Issuance	08 Dec 2004
Place of Issuance	People’s Committee of Da Nang City
Business Registration No.	0400101404
Date of Registration	08 Jul 2010
Place of Registration	Planning and Investment Department of Da Nang City
Current registered capital	VND 28,000,000,000
Status	Unlisted
Tax code	0400101404
Total Employees	Over 500
Size	Medium

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Board Of Director: Former General Director Mr. Phan Thinh Changed to: Mr. Tong Viet Phai	10 May 2011
2	Subject has got former Business Registration No: 3203000578 (dated on 22^nd March 2005) Changed to: 0400101404	08 Jul 2010
3	Subject has got former Type of Business: State Owned Company Changed to: Joint Stock Company pursuant to decision No 195/2004/QD-UB issued by People’s Committee of Da Nang City	08 Dec 2004
4	Subject has got former Registered Vietnamese Name: CONG TY DUOC DA NANG Changed to: CONG TY CO PHAN DUOC - THIET BI Y TE DA NANG	2004

company ADDRESSES

Head Office
Address	No. 2, Phan Dinh Phung Str, Hai Chau Dist, Da Nang City, Vietnam
Telephone	(84-511) 381 0735 / 3821642
Fax	(84-511) 389 1752
Email	daphaco@dng.vnn.vn
Website	http://www.dapharco.com.vn
Workshop Address
Address	Binh Thai Hamlet, Hoa Tho Commune, Hoa Vang Dist, Da Nang City, Vietnam
Telephone	(84-511) 3671 722
Branch in Ha Noi
Address	Room 204A, No. 78 Lang Ha Str., Lang Ha Ward, Dong Da District, Ha Noi City, Vietnam
Telephone	(84-4) 3776 4900
Fax	(84-4) 3776 0383
Manager	Mr. DANG VAN NAM
Branch in Ho Chi Minh
Address	No. 796/15, Su Van Hanh Str., Ward 12, 10 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3863 1018
Fax	(84-8) 3862 9834
Manager	Mr. TRAN NHAN TRIET
Branch in Quang Nam
Address	No. 85, Tran Cao Van Str., An Son Ward, Tam Ky City, Quang Nam Province, Vietnam
Telephone	(84-510) 381 2859
Fax	(84-510) 382 0450
Manager	Mr. NGUYEN HUU THOAI

DIRECTORS

1. NAME	Mr. PHAN THINH
Position	Chairman
Date of Birth	20 Aug 1945
ID Number/Passport	200005880
ID Issue Date	20 Jun 2000
ID Issue Place	Da Nang Police Station
Resident	No. 137, Nguyen Van Linh Street, Thanh Khe District, Da Nang City, Vietnam
Nationality	Vietnamese
Tel/Mobil phone	(84-511) 3822 247
2. NAME	Mr. TONG VIET PHAI
Position	General Director
Date of Birth	05 Oct 1959
ID Number/Passport	201492403
ID Issue Date	08 Feb 2001
ID Issue Place	Da Nang Police
Resident	No. 27, Hoang Dieu Street, Phuoc Ninh Ward, Hai Chau District, Da Nang City, Vietnam
Current resident	No. 27, Hoang Dieu Street, Phuoc Ninh Ward, Hai Chau District, Da Nang City, Vietnam
Nationality	Vietnamese
3. NAME	Mr. NGUYEN HUU CONG
Position	Deputy General Director cum Financial Manager
Resident	No. 91 Tran Phu Str., Hai Chau District, Da Nang City, Vietnam
Nationality	Vietnamese
Tel/Mobil phone	(84-511) 3810735, ext: 106
Email	huucongdaphar@gmail.com
Nationality	Vietnamese
4. NAME	Mr. TRAN NHAN TRIET
Position	Deputy General Director
Date of Birth	08 Nov 1958
ID Number/Passport	201358828
Resident	No. 21, Ham Nghi Street, Thanh Khe District, Da Nang City, Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

• Importing and trading in pharmaceutical products, medical equipment, cosmetics and nutritious food
• Installing and maintaining medical equipment.
• The subject also provide consulting services and trainings for Vietnamese health agencies; actively involved in the heal and sanitary program of the government

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products	Medical equipments, pharmaceutical products
· Market	South Korea, India, Taiwan, France, Japan, USA, Singapore, Hungary and Germany, etc
· Mode of payment	L/C, T/T, D/A
EXPORT:
Notes: Currently, the subject does not export

BANKERS

1. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE DA NANG BRANCH
Address	No.172 Nguyen Van Linh, Thanh Khe District, Da Nang City, Vietnam
Telephone	(84-511) 32691345
2. HOUSING BANK OF MEKONG DELTA DA NANG BRANCH
Address	No.129 Le Loi Str, Hai Chau District, Da Nang City, Vietnam
Telephone	(84-511)3 817821
Fax	(84-511)3 817823
3. VIETNAM EXPORT IMPORT COMMERCIAL JOINT STOCK BANK DA NANG BRANCH
Address	No.48 Tran Phu Street, , Da Nang City, Vietnam
Telephone	(84-511) 3830 889
Fax	(84-511) 3826 674

SHAREHOLDERS

Below is list of subject’s foundation shareholders on business registration certificate:
1. NAME	STATE CAPITAL INVESTMENT CORPORATION
Business Registration	0101992921
Date of Registration	09 Jul 2010
Place of Registration	Ha Noi Planning and Investment Department
Representative	PHAN THINH
Registered Capital	VND 19,000,000,000,000
Tax code	0101992921
Address	No. 15A, Tran Khanh Du Str., Hoan Kiem District, Ha Noi City, Vietnam
Tel	(84-4) 62780126
Fax	(84-4) 62780136
Number of shares	1,020,000
Value of shares	VND 10,200,000,000
Percentage	36.43%
2. NAME	Mr. VO VAN CHIN
Date of Birth	15 Apr 1952
ID Number/Passport	020007500
Issued Place	Da Nang Police
Resident	No. 57, Duy Tan Street, Hai Chau District, Da Nang City, Vietnam
Nationality	Vietnamese
Number of Shares	8,630
Value of shares	VND 86,300,000
Percentage	0.31%
3. NAME	Mr. TONG VIET PHAI
Position	General Director
Date of Birth	05 Oct 1959
ID Number/Passport	201492403
Issued on	08 Feb 2001
Issued Place	Da Nang Police
Resident	No. 27, Hoang Dieu Street, Phuoc Ninh Ward, Hai Chau District, Da Nang City, Vietnam
Current Resident	No. 27, Hoang Dieu Street, Phuoc Ninh Ward, Hai Chau District, Da Nang City, Vietnam
Nationality	Vietnamese
Number of Shares	7,280
Value of shares	VND 72,800,000
Percentage	0.26%
4. NAME	Mr. NGUYEN HUU CONG
Date of Birth	21 Oct 1961
ID Number/Passport	201390069
Resident	No. 91, Tran Phu Str, Hai Chau District, Da Nang City, Vietnam
Number of Shares	6,010
Value of shares	VND 60,100,000
Percentage	0.21%
Nationality	Vietnamese
5. NAME	Mr. TRAN NHAN TRIET
Position	Deputy General Director
Date of Birth	08 Nov 1958
ID Number/Passport	201358828
Resident	No. 21, Ham Nghi Street, Thanh Khe District, Da Nang City, Vietnam
Nationality	Vietnamese
Number of Shares	7,050
Value of shares	VND 70,050,000
Percentage	0.25%
6. NAME	Mr. DANG VAN NAM
Date of Birth	03 Nov 1957
Resident	Hoa Tho Commune, Hoa Vang District, Da Nang City, Vietnam
Nationality	Vietnamese
Number of Shares	8,130
Value of shares	VND 81,300,000
Percentage	0.29%
7. NAME	Mr. PHAN THINH
Position	Chairman
Date of Birth	20 Aug 1945
ID Number/Passport	200005880
Issued on	20 Jun 2000
Issued Place	Da Nang Police Station
Resident	No. 137, Nguyen Van Linh Street, Thanh Khe District, Da Nang City, Vietnam
Work phone	(84-511) 3822 247
Nationality	Vietnamese
Number of Shares	9,210
Value of shares	VND 92,100,000
Percentage	0.33%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	30/09/2011	31/12/2010	31/12/2009
Number of weeks	39	52	52
ASSETS
A – CURRENT ASSETS	631,367,320,027	433,047,842,071	331,829,552,316
I. Cash and cash equivalents	21,270,495,471	21,758,208,845	22,479,440,199
1. Cash	21,270,495,471	21,758,208,845	22,479,440,199
2. Cash equivalents	0	0	0
II. Short-term investments	0	0	0
1. Short-term investments	0	0	0
2. Provisions for devaluation of short-term investments	0	0	0
III. Accounts receivable	506,384,085,288	322,348,083,109	232,251,292,808
1. Receivable from customers	434,756,889,996	270,313,519,777	187,878,849,789
2. Prepayments to suppliers	53,223,698,212	51,623,577,218	44,145,414,459
3. Inter-company receivable	18,098,681,875	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	2,222,641,290	1,410,986,114	227,028,560
6. Provisions for bad debts	-1,917,826,085	-1,000,000,000	0
IV. Inventories	93,841,205,337	81,533,518,096	72,140,408,711
1. Inventories	93,841,205,337	81,533,518,096	72,140,408,711
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	9,871,533,931	7,408,032,021	4,958,410,598
1. Short-term prepaid expenses	40,500,000	0	0
2. VAT to be deducted	3,706,348,882	2,093,415,747	0
3. Taxes and other accounts receivable from the State	0	490,819	1,018,135,944
4. Other current assets	6,124,685,049	5,314,125,455	3,940,274,654
B. LONG-TERM ASSETS	22,946,619,468	23,181,472,889	24,304,610,933
I. Long term accounts receivable	0	0	0
1. Long term account receivable from customers	0	0	0
2. Working capital in affiliates	0	0	0
3. Long-term inter-company receivable	0	0	0
4. Other long-term receivable	0	0	0
5. Provisions for bad debts from customers	0	0	0
II. Fixed assets	21,577,646,411	21,767,480,407	22,518,164,114
1. Tangible assets	10,656,354,786	10,795,596,383	11,554,102,450
- Historical costs	16,094,156,564	15,596,508,914	15,391,999,823
- Accumulated depreciation	-5,437,801,778	-4,800,912,531	-3,837,897,373
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	10,921,291,625	10,971,884,024	10,964,061,664
- Initial costs	11,139,681,214	11,139,681,214	11,092,181,214
- Accumulated amortization	-218,389,589	-167,797,190	-128,119,550
4. Construction-in-progress	0	0	0
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	1,133,500,000	1,294,600,000	1,518,400,000
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	0	0	0
3. Other long-term investments	1,133,500,000	1,294,600,000	1,518,400,000
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	235,473,057	119,392,482	268,046,819
1. Long-term prepaid expenses	235,473,057	119,392,482	268,046,819
2. Deferred income tax assets	0	0	0
3. Other long-term assets	0	0	0
VI. Goodwill	0	0	0
1. Goodwill	0	0	0
TOTAL ASSETS	654,313,939,495	456,229,314,960	356,134,163,249
LIABILITIES
A- LIABILITIES	587,424,686,017	397,033,887,145	302,831,699,217
I. Current liabilities	583,269,794,041	392,357,696,596	297,423,006,339
1. Short-term debts and loans	149,647,290,390	69,165,056,219	57,680,869,987
2. Payable to suppliers	386,917,882,848	288,922,248,026	217,036,078,411
3. Advances from customers	18,401,417,739	18,303,376,068	15,878,383,966
4. Taxes and other obligations to the State Budget	3,436,624,504	3,285,650,800	804,947,718
5. Payable to employees	5,212,059,698	7,595,347,679	3,940,710,400
6. Accrued expenses	0	0	0
7. Inter-company payable	17,585,652,080	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	2,068,466,802	1,849,137,635	2,082,015,857
10. Provisions for short-term accounts payable	399,980	3,236,880,169	0
II. Long-Term Liabilities	4,154,891,976	4,676,190,549	5,408,692,878
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	30,500,000	32,000,000	0
4. Long-term debts and loans	2,449,993,000	3,266,662,000	4,387,554,000
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	1,674,398,976	1,377,528,549	1,021,138,878
7. Provisions for long-term accounts payable	0	0	0
B- OWNER’S EQUITY	66,889,253,478	59,195,427,815	53,302,464,032
I. OWNER’S EQUITY	65,993,489,985	59,195,427,815	53,005,128,031
1. Capital	28,000,000,000	28,000,000,000	28,000,000,000
2. Share premiums	15,810,000,000	15,810,000,000	15,810,000,000
3. Other sources of capital	5,875,249,235	3,691,572,542	2,544,807,168
4. Treasury stocks	0	0	0
5. Differences on asset revaluation	0	0	0
6. Foreign exchange differences	0	-4,578,235,892	-5,636,762,977
7. Business promotion fund	6,081,114,754	5,623,251,419	3,941,301,970
8. Financial reserved fund	1,384,446,224	926,582,889	536,098,732
9. Other funds	0	0	0
10. Retained earnings	8,842,679,772	9,157,266,699	7,809,683,138
11. Construction investment fund	0	0	0
II. Other sources and funds	895,763,493	564,990,158	297,336,001
1. Bonus and welfare funds	895,763,493	564,990,158	297,336,001
2. Sources of expenditure	0	0	0
3. Fund to form fixed assets	0	0	0
MINORITY’S INTEREST	0	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	654,313,939,495	456,229,314,960	356,134,163,249

PROFIT & LOSS STATEMENT
Description	9 first months of 2011	FY2010	FY2009
1. Total Sales	1,099,486,724,831	1,550,600,471,361	1,186,048,783,651
2. Deduction item	448,903,822	619,638,489	558,515,917
3. Net sale	1,099,037,821,009	1,549,980,832,872	1,185,490,267,734
4. Costs of goods sold	1,033,469,919,652	1,449,063,672,990	1,103,028,044,814
5. Gross profit	65,567,901,357	100,917,159,882	82,462,222,920
6. Financial income	4,981,676,292	7,978,501,784	8,715,825,882
7. Financial expenses	33,822,563,768	54,000,890,644	47,736,200,722
- In which: Loan interest expenses	7,878,241,062	11,110,058,746	5,094,606,669
8. Selling expenses	16,245,725,706	24,339,364,250	22,780,650,738
9. Administrative overheads	13,625,508,225	22,828,215,069	14,151,483,238
10. Net operating profit	6,855,779,950	7,727,191,703	6,509,714,104
11. Other income	18,434,154,418	26,522,005,447	14,080,933,698
12. Other expenses	15,549,409	22,046,508,219	10,192,955,328
13. Other profit /(loss)	2,884,264,009	4,475,497,228	3,887,978,370
14. Total accounting profit before tax	9,740,043,959	12,202,688,931	10,397,692,474
15. Current corporate income tax	2,437,821,490	3,045,422,233	1,294,004,667
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0
18. Profit after tax	7,302,222,469	9,157,266,698	9,103,687,807

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	9 first months of 2011	FY2010	FY2009	Average Industry
Current liquidity ratio	1.08	1.10	1.12	1.32
Quick liquidity ratio	0.92	0.90	0.87	0.79
Inventory circle	11.01	17.77	15.29	5.10
Average receive period	168.17	75.91	71.51	106.45
Utilizing asset performance	1.68	3.40	3.33	1.57
Liability by total assets	89.78	87.03	85.03	71.38
Liability by owner's equity	878.20	670.72	568.14	337.52
Ebit / Total assets (ROA)	2.69	5.11	4.35	6.72
Ebit / Owner's equity (ROE)	26.34	39.38	29.06	28.18
Ebit / Total sale (NPM)	1.60	1.50	1.31	4.85
Gross profit / Total sale (GPM)	5.96	6.51	6.95	12.56
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

CASH FLOW STATEMENT

(Direct method)
Items	9 first months of 2011	FY2010
I. Cash flows from operating activities
1.Cash received from customers	1,495,717,558,417	1,640,770,917,136
2. Cash paid to suppliers	-1,476,724,050,732	-1,427,610,923,258
3. Cash paid to employees	-22,737,072,077	-19,869,321,779
4. Interest paid	-12,241,419,037	-6,771,939,788
5. Income taxes paid	-2,944,694,306	-1,807,075,127
6. Other operating cash receipts	2,593,855,134	752,019,356,963
7. Other operating payments	-38,610,029,501	-677,365,008,832
Net cash flows from operating activities	-54,945,852,101	259,366,005,315
II. Cash flows from investing activities
1. Purchases and construction of fixed assets and other long-term assets	618,370,806	-252,009,091
2. Gains from disposals and liquidation of fixed assets and other long-term assets	0	0
3. Loans given and purchases of debt instruments of other entities	0	0
4. Recovery of loans given and disposals of debt instruments of other entities	0	0
5. Investments into other entities	0	0
6. Withdrawals of investments in other entities	158,100,000	223,800,000
7. Receipts of loan interests, dividends and profit shared	0	21,000,000
Net cash flows from investing activities	460,270,806	-7,209,091
III. Cash flows from financing activities
1. Gains from stock issuance and capital contributions from shareholders	0	0
2. Repayment for capital contributions and re-purchases of stocks already issues	0	0
3. Short-term and long-term loans received	573,953,184,995	400,698,487,869
4. Loan principal amounts repaid	-523,359,011,462	-656,578,401,078
5. Payments for financial leasehold assets	0	0
6. Dividends and profit already paid to the owners	4,324,236,000	-4,200,000,000
Net cash flows from financing activities	54,918,409,533	-260,079,913,209
Net cash flows during the year	-487,713,374	-721,116,985
Beginning cash and cash equivalents	21,758,208,845	22,479,440,199
Effects of fluctuations in foreign exchange rates	0	-114,369
Ending cash and cash equivalents	21,270,495,471	21,758,208,845

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Fair
Liquidity	Medium
Payment status	Average
Financial Situation	Average
Development trend	Positive
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	L/C, T/T, D/A
Sale Methods	Retailer and Wholesaler
Public opinion	Good

CREDIT INQUIRY: USD 125,000 Against da in terms

Acceptable!

INTERPRETATION ON THE SCORES

Founded in 1976 as a State Owned Company. In 2004, the subject capitalized and changed its type to Joint Stock Company according to Decision No. 195/2004/QD-UB of Da Nang People's Committee. Currently, the subject is operating under the business code number 0400101404 with registered capital VND 28 billion. Its total employees are about over 500 people.

Head office is located at No. 02, Phan Dinh Phung Street, Hai Chau District, Da Nang City, Viet Nam. In addition to, the subject also has three branches in Quang Nam province, Hanoi and Hochiminh City.

The major business activities of subject is importing and trading in pharmaceutical products. Besides, it also operates in installing and maintaining medical equipment; Provide consulting services and trainings for Vietnamese health agencies… Pharmaceutical products and medical equipment are imported from many countries such as South Korea, India, Taiwan, France, etc. Now, the subject does not export, its products is only supplied in domestic with main market are central area and Tay Nguyen provinces.

Financially, business result of the subject has strong growth year by year. In 9 first months of 2011, the subject attained VND 1,099 billion of total sale and VND 7 billion of profit after tax. In this time, receivable was VND 506.3 billion which had the biggest ratio in the total asset (77%) proved the subject expanded its credit policy. This made average receive period lengthens to 168.17 days. It also affected to the subject’s cash flow. In 9 first months of 2011, net cash flows from operating activities were a negative number. And the subject had to increase liability to finance for its capital need. Liability by total asset has upward tendency, in 2010 it was rather high with rate 87.03%. The subject relied much on debts from creditors and credit from suppliers.

In general, the subject has a long time of operation, thus it has prestige and many experience in the industry. It received some certificates of merit by the Ministry of Health, Da Nang People's Committee… and many supports from the local authority. With business condition at present, the subject can meet small and normal commitments.

APPENDIX

INDUSTRY DATA
Industry code	Growth speed by price compared with 1994 (%)		Total enterprises 2009		Total employees 2010 (Thous.pers.)	Annual average capital of enterprises 2009 (billion dongs)
	2011	2010
Agriculture, Forestry and Fishing	4.00	2.78	8,749		23,896.3	81,559
Industry and Construction	5.53	7.70	85,115		10,630	2,751,975
Trade and Services	6.69	7.52	154,978		14,522	4,939,069
ECONOMIC INDICATORS
			2011	2010		2009
Population (Million person)			87.84	86.93		86.02
Gross Domestic Products (USD billion)			119	102.2		91
GDP Growth (%)			5.89	6.78		5.32
GDP Per Capita (USD/person/year)			1,300	1,160		1,080
Inflation (% Change in Composite CPI)			18.58	11.75		6.88
State Budget Deficit compared with GDP (%)			4.9	5.8		6.9
SERVICE TRADE PERFORMANCE
Billion USD			2011	2010		2009
Exports			96.3	72.2		57.1
Imports			105.8	84.8		69.9
Trade Balance			-9.5	-12.6		-12.8

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.28
UK Pound	1	Rs.81.38
Euro	1	Rs.67.01

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.