MIRA INFORM REPORT

Report Date :

12.11.2012

IDENTIFICATION DETAILS

Name :	HANWHA CHEMICAL CORPORATION

Registered Office :	1, Janggyo-dong, Jung-gu, Seoul

Country :	South Korea

Financials (as on) :	30.06.2012

Date of Incorporation :	27.04.1974

Legal Form :	Listed Company

Line of Business :	Manufacture of Basic Organic Petrochemicals

No. of Employees :	2,344

RATING & COMMENTS

MIRA’s Rating :

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

Status :	Good
Payment Behaviour :	Regular
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 – June 30^th, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

South Korea

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

SOUTH KOREA - ECONOMIC OVERVIEW

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion dollar club of world economies, and currently is among the world's 20 largest economies. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea''s development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. With the global economic downturn in late 2008, South Korean GDP growth slowed to 0.3% in 2009. In the third quarter of 2009, the economy began to recover, in large part due to export growth, low interest rates, and an expansionary fiscal policy, and growth was 3.6% in 2011. In 2011, the US-South Korea Free Trade Agreement was ratified by both governments and is projected to go into effect in early 2012. The South Korean economy''s long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise half of GDP.

Source : CIA

Basic

Company Name	HANWHA CHEMICAL CORPORATION (Trade Name : HCC) (Korean Company Name : “한화케미칼(주)”)
Registered Address	1, Janggyo-dong, Jung-gu, Seoul, Korea
Building	17th Fl., Hanwha Bldg.
Zip Code	100-797
Tel	+82-2-729-2700
Fax	+82-2-729-1455
E-mail	webhcc@hanwha.co.kr;temuchin@hanwha.co.kr
Website	hcc.hanwha.co.kr
Trading Address	Hanwha Bldg., 1, Janggyo-dong, Jung-gu, Seoul, Korea
Tel	+82-2-729-2700
Fax	+82-2-729-1455
Other Address-Yeosu Factory	287-9, Pyeongyeo-dong, Yeosu-si, Jeollanam-do, Korea
Tel	+82-61-688-1114
Fax	+82-61-688-1011
Other Address-Ulsan Factory I	482, Sanggae-dong, Nam-gu, Ulsan, Korea
Tel	+82-52-279-2114
Fax	+82-52-267-6606
Other Address-Ulsan Factory II	666, Yeocheon-dong, Nam-gu, Ulsan, Korea
Tel	+82-52-279-5114
Fax	+82-52-279-5111
Other Address-Jinhae Factory	530, Jangcheon-dong, Jinhae-si, Gyeongsangnam-do, Korea
Tel	+82-55-540-3055
Fax
Other Address-R&D Center	6, Sinseong-dong, Yuseong-gu, Daejeon, Korea
Tel	+82-42-865-6400
Fax	+82-42-861-2611
Type	Export
Industry	Manufacture of Basic Organic Petrochemicals
Main Business	PE,PVC, Caustic Soda, Hydrochloricacid, Low Density Polyethylene, Linear Low Density Polyethylene
Sub Business
Established (mm/dd/yyyy)	04/27/1974

The Subject owns the premises of Ulsan Factory I, Yeosu Factory and R&D Center.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Plasticizers(12162000)
Sell	Low Density Polyethylene LDPE(13102018)
Sell	Thermoplastic plastics(13102000)
Sell	Water treatment and supply equipment(47101500)
Sell	Alcohols or its substitutes(12352104)
Sell	Ethylene Vinyl Acetate EVA(13102009)
Sell	Alcohols or its substitutes(12352104)
Sell	Chlorinated mixed gases(12142102)
Sell	Chemistry reagents or solutions(41116105)
Sell	Polyvinyl chloride resin(13111025)
Sell	Inorganic hydroxides(12352305)
Sell	Inorganic metal salts(12352302)
Sell	Chemistry reagents or solutions(41116105)
Sell	Aliphatic solvents(12191502)
Sell	Abrasives and abrasive media(31191500)

CEO’s

Name	Hong Ki-Joon
Address
Date of Birth	11/22/1950
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

707,036,240,000

Employees

2,344

Formation

Listed Company (Korea Stock Exchange : 009830) as of 06/19/1974

A Company of HANWHA GROUP

Bank Details

Woori Bank-Sales 2 Department

Corporate Registered No.

110111-0360935

Business Registered No.

202-81-16577

Permit & Licenses

Int’l Trade No.: 831437

Shareholder Position

Name	Shares	%
HANWHA CORP (110111-0002959)	53,117,578	37.86
HANHWA CONSTRUCTION CO., LTD.(175611-0008794)	6,428,400	4.58
CHEONAN BUKIL EDUCATION ACADEMY	250,521	0.18
HONG KI-JOON	30,000	0.02
OTHERS	81,580,749	57.36
TOTAL	141,407,248	100.00

Company History

03/19/2010 Changed Korean company name to the present name from

07/2008 Advancement ing into solar power cells business

06/2008 Yeosu LD Plant expanded

12/2007 Physical divisioning of Congeneration plant sector, Establishment of Yeosu Congeneration plant co., Ltd

06/2007 Ulsan CA&EDC capacity expanded

01/2007 Group CI Changed (TRI Circle)

01/2006 Yeosu W/C capacity expanded

12/2005 Yeosu CA capacity expanded

08/2005 Jinhae SAA capacity expanded

03/2005 Ulsan PVC capacity expanded

12/2004 PVC Plant expanded

08/2004 Opened the office in Beijing

10/2003 Yeosu OXY-EDC Plant expanded

07/2003 China Hanwha Trade (Shanghai) Co., Ltd. established

04/2003 CA Plant expanded

05/2002 Certification of Safety and Sanitation Management System plant (K-OHSMS 18001)

04/2002 SAA plant completed

07/2001 Completion of ㎝P Slurry plant for semi-conductor

04/2001 Expansion and completion of Yeosu CA plant

04/2000 Expansion and completion of Yeosu EDC, V㎝ plants

12/1999 Yeochun NCC established as joint venture with Daelim Industrial Corp.

12/1997 Yeochun PP plant completed

12/1997 Yeosu 2-EH plant completed

10/1995 Yeosu PVC plant expanded

10/1994 Company name changed to Hanswha Chemical Corp.(HCC)

03/1994 Yeosu Ammonium Chloride plant completed

10/1992 Yeosu Naphtha Cracking Center completd

08/1991 Yeosu ECH plant completed

07/1991 1st Ulsan plant, C/A EDC, V㎝ plant completed

09/1990 Yeosu PVC plant completed

11/1989 Yeosu HDPE plant completed

09/1989 Han Yang Chemical (Thailand) Co. established in Thailand

12/1988 Han Yang - BASF Urethane Co., Ltd. established as a joint-venture company with BASF in Germany

10/1988 ACAN Windows Inc. in Canada established

05/1988 Yeosu LLDPR plant completed.

03/1986 Yeosu LLDPE plant completed.

01/1984 Han Yang Chemical Co., Korea Chemical Co. and Han Yang Chemical Holding Co. merged)

12/1982 HanYang Chemical Corp. established.

06/1980 Yeosu V㎝,EDC,LDPE, Cl2, NaOH plants completed.

03/1979 Daedeok R&D Center established

09/1975 Dow Chemical Korea Ltd. established

04/27/1974 Han Yang Chemical Holding Co., Ltd. established by taking over the shares of Han Yang Chemical Co. owned by Korea Pacific Chemical

Detailed Information

Management

Job Description	Title	Name	Nationality	Date of Birth	Education/Career
Chairman & CEO	Mr.	Kim Seung-Yon	Korean	1952.02.07	De Paul University, USA
President & CEO	Mr.	Hong Ki-Joon	Korean	1950.11.22	Seoul National University, Korea
Sr. Executive Director & CEO	Mr.	Bang Han-Hong	Korean	1953.05.29	-
CFO	Mr.	You Young-In	Korean	1961.02.	Sungkyungwan University, Korea
Outside Director	Mr.	Jung In-Hyun	Korean	1937.12.12	Yonsei University, Korea
Outside Director	Mr.	Han Dong-Seok	Korean	1949.02.	Seogang University, Korea
Outside Director	Mr.	Lee Si-Woo	Korean	1952.02.	Massachusetts University, USA
Outside Director	Mr.	Lee Jin-Kyu	Korean	1952.07.28	Ohio University, USA
Outside Director	Mr.	Kim Young-Hak	Korean	1953.12.08	Seoul National University, Korea

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)06/2012	1,767,634,176,897	6,451,798,076,554	142,791,860,960
(*)2011	3,970,365,437,715	6,233,873,334,393	411,519,305,505
(*)2010	3,628,166,238,616	5,730,625,913,403	283,939,248,179
2009	3,033,722,828,299	4,817,478,192,594	343,408,134,311
2008	3,036,966,522,359	4,455,606,232,564	41,496,895,373
2007	2,485,237,056,378	3,688,664,456,222	204,499,812,621
2006	2,218,540,769,466	3,048,607,746,615	204,942,806,355
2005	2,116,469,504,678	3,003,004,870,842	326,640,526,898
2004	2,011,136,568,002	3,118,247,404,311	300,171,873,044

(*)Figures are based on the K-IFRS Accounting System.

Financial Description

Authorized Capital(KRW)	1,500,000,000,000
Paid-Up Capital(KRW)	707,036,240,000
Total Issues Shares	141,407,248

Balance Sheet

Unit : Korean Won	01/01/2012~06/30/2012	As of 12/31/2011	As of 12/31/2010
Total Assets	6,451,798,076,554	6,233,873,334,393	5,730,625,913,403
Current Assets	1,186,103,891,746	1,224,262,478,360	774,583,015,962
Cash & Cash Equivalents	289,655,244,431	265,131,669,575	30,806,647,442
Other Finance Assets	20,824,465,635	143,320,507,403	8,677,191,824
Trade Receivables & Other Receivables	529,106,521,969	503,454,273,919	473,759,018,679
Other Current Assets	9,208,779,298	10,301,291,272	5,011,129,997
Inventories	337,308,880,413	302,054,736,191	256,329,028,020
Non-Current Assets	5,265,694,184,808	5,009,610,856,033	4,956,042,897,441
Marketable Financial Instruments	232,879,455,093	263,309,648,568	277,043,061,931
Other Financial Assets	38,730,379,937	20,792,752,515	16,679,664,210
Long-Term Trade Receivables & Other Receivables	6,779,534,730	3,920,367,982	4,550,558,781
Investment_Related Companies	2,530,625,139,910	2,519,869,639,910	2,409,752,975,230
Investment_Real Estates	181,510,553,497	180,360,441,122	490,602,009,528
Tangibles	2,219,040,839,697	1,965,779,585,155	1,716,586,032,623
Intangibles	56,084,801,210	55,345,968,850	40,803,637,307
Other Non-Current Assets	43,480,734	232,451,931	24,957,831
Total Liabilities	2,934,813,198,058	2,771,232,028,849	2,581,936,625,278
Current Liabilities	1,183,161,727,588	1,228,215,496,877	1,122,214,571,321
Trade Payables & Other Payables	613,672,976,861	590,022,739,762	501,629,828,742
Short-Term Borrowings	514,320,540,277	506,334,788,769	483,195,768,213
Other Current Financial Debts	16,298,912,060	36,517,425,702	45,599,052,183
Other Current Liabilities	8,956,718,558	10,802,696,221	13,680,330,523
Deferred Income Tax Credit	29,912,579,832	84,537,846,423	78,109,591,660
Non-Current Liabilities	1,751,651,470,470	1,543,016,531,972	1,459,722,053,957
Long-Term Trade Payables & Other Payables	1,130,575,400	1,130,575,400	1,130,575,400
Long-Term Borrowings	1,455,771,705,951	1,253,686,893,416	1,185,564,964,042
Other Non-Current Financial Debts	27,990,840,681	24,005,390,984	39,800,179,952
Confirmed Salaries	117,493,382,202	112,166,040,590	75,564,868,283
Long-Term Salaries	3,686,540,000	3,686,540,000
Other Non-Current Liabilities	41,449,853	86,302,373	238,028,564
Deferred Income Tax Credit	145,536,976,383	148,254,789,209	157,423,437,716
Capital Stock	707,036,240,000	707,036,240,000	707,036,240,000
Capital Surplus	492,211,382,810	492,211,382,810	492,211,382,810
Others	35,290,591,623	60,049,431,181	75,096,620,302
Profit Surplus	2,282,446,664,063	2,203,344,251,553	1,874,345,045,013
Total Equity	3,516,984,878,496	3,462,641,305,544	3,148,689,288,125
Liab. & Shareholder’s Equity	6,451,798,076,554	6,233,873,334,393	5,730,625,913,403

Income Statement

Unit : Korean Won	01/01/2012~06/30/2012	As of 12/31/2011	As of 12/31/2010
Sales	1,767,634,176,897	3,970,365,437,715	3,628,166,238,616
Cost of Sold Goods	1,507,540,172,312	3,176,312,277,727	2,854,374,390,246
Gross Profit	260,094,004,585	794,053,159,988	773,791,848,370
Selling & Admin. Expenses	164,197,062,196	321,888,433,245	290,593,540,859
Operating Income	95,896,942,389	472,164,726,743	483,198,307,511
Non-Operating Income	81,896,271,601	73,426,183,514	-115,785,861,935
Other Operating Income	27,586,905,548	122,216,049,990	130,680,220,506
Other Operating Expenses	-28,676,212,517	-144,236,157,750	-216,997,408,602
Finance Income	111,116,068,386	159,973,437,695	35,333,463,732
Finance Expenses	-28,130,489,816	-64,527,146,421	-64,802,137,571
Income Before Taxes	177,793,213,990	545,590,910,257	367,412,445,576
Income Taxes Expenses	35,001,353,030	134,071,604,752	83,473,197,397
Net Income	142,791,860,960	411,519,305,505	283,939,248,179

Cash Flows

Unit : Korean Won	01/01/2012~06/30/2012	As of 12/31/2011	As of 12/31/2010
Operating Activities Cash Flows	31,013,577,700	471,603,239,142	474,659,440,926
Net Income	142,791,860,960	411,519,305,505	283,939,248,179
Adjustment	27,095,800,321	217,335,734,736	328,080,276,990
Changes in Asset/ & Liability	-54,434,188,301	-28,461,342,693	-86,154,990,432
Income Taxes	-84,439,895,280	-128,790,458,406	-51,205,093,811
Cash Flows from Investing	-115,944,416,916	-175,205,287,886	-531,344,376,368
Cash Flows from Financing	110,023,414,072	-62,075,429,123	51,216,604,528
Increase/Decrease in Cash	25,092,574,856	234,322,522,133	-5,468,330,914
Cash at the Beginning of Year	265,131,669,575	30,806,647,442	36,382,978,356
Cash at the End of Year	289,655,244,431	265,131,669,575	30,806,647,442

Products, Technologies, Services Description

Main Products & Services

PE(Polyethylene)

-LDPE, EVA, LLDPE, Wire & Cable compounds

PVC(Polyvinyl Chloride)

-PVC resin, Paste resin, Plasticizer, OA

CA(Chlor Alkali)

-Caustic soda, Chlorine, EDC, V㎝, ECH, Hydrochloric acid, HYPO, Ammonium

New Business

-Barium Titanate, CNT, PV Cell

Trade Partners & Competitors

Suppliers

YEOCHUN NCC CO., LTD.(110111-1839096)

Customers

HANWHA CORP.(110111-0002959)

Competitors

LG CHEM CO., LTD.

24TH FL., LG TWIN TOWER EAST ANNEX, 20, YEOUIDO-DONG, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-3773-1114 FAX:+82-2-3773-7933

SAMSUNG TOTAL PETROCHEMICALS CO., LTD.

411-1, DOKGOT-RI, DAESAN-EUP, SEOSAN-SI, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-660-6114 FAX:+82-41-681-4812

HONAM PETROCHEMICAL CORPORATION

11TH FL., LOTTE GWANAK TOWER, 395-67, SINDAEBANG 2-DONG, DONGJAK-GU, SEOUL, KOREA

TEL:+82-2-829-4114 FAX:+82-2-843-1010

Related Parties (Subsidiaries, Joint-Venture & Affiliates)Affiliates-Domestics	HANWHA CORP (110111-0002959) HANWHA CHEMICAL CORPORATION (110111-0360935) HANWHA TIMEWORLD CO., LTD. (160111-0003410) HANWHA SECURITIES CO.,LTD (110111-0003155) HANWHA NON-LIFE INSURANCE CO., LTD. (110111-0006456) HANWHA LIVING & CREATIVE CORP (110111-1725930) HANWHA POLYDREAMER CO.,LTD (161511-0001861) HANWHA STATION DEVELOPMENT CO., LTD. (110111-0544133) HANWHA CHONGNYANGNI STATION DEVELOPMENT CO., LTD. (110111-3008376) HANWHA INVESTMENT TRUST MANAGEMENT CO., LTD. (110111-0571201) HANWHA VC CORP. (110111-1912909) KLI INSURANCE INVESTIGATION CO., LTD. (110111-3192913) KOREA TELE MARKETING & SERVICES CO., LTD (110111-3199349) RADISSON SEOUL PLAZA HOTEL (110111-0154776) HAN COMM. INC. (110111-0362957) ENVIRONMENT FACILITIES MANAGEMENT CORPORATION (141411-0006564) HANWHA TOUR. (KOREA) HANWHA RESORT CO.,LTD (110111-0249709) KOREA LIFE INSURANCE CO.,LTD (110111-0003204) DANGJIN TECHNO POLIS CO., LTD(165011-0022657) AZDEL INC. (KOREA) HANWHA INDEPENDENT ENERGY CORPORATION(110111-3780932) GIMHAE TECHNO VALLEY CO.,LTD.(195511-0120447) HANWHA CHEMICAL OVERSEAS HOLDINGS, CO., LTD.(110111-4137207) HANWHA S&C CO., LTD (110111-2204470) GUNPO ECOTECH CORPORATION (110111-2629941) HANWHA 63 CITY CORPORATION (110111-0425622) DAEDEOK TECHNO VALLEY CO., LTD (160111-0115059) YANGJU ENVIRO CORPORATION (110111-2503244) KUMDAN ECOTECH CORPORATION (110111-3205659) HANWHA EAGLES PROFESSIONAL BASEBALL CLUB (160111-0007214) (40.00% held by the subject company) HANWHA CITY DEVELOPMENT CO.,LTD (160111-0182230) (100.00% held by the subject company) H COMPOUND CORPORATION(206211-0035747) (100.00% held by the subject company) HANWHA NANOTECH CORPORATION(211111-0011643) (99.39% held by the subject company) HANWHA CHEMICAL OVERSEAS HOLDINGS, CO., LTD.(110111-4137207) (100.00% held by the subject company) DREAMPHARMA CORP. (110111-1181025) (100.0% held by the subject company) HANWHA GALLERIA CO., LTD.( 110111-0202989) (100.0% held by the subject company) HANWHA L&C CORPORATION(110111-1725930) (100.0% held by the subject company)
Affiliates-Overseas	KOREA LIFE INVESTMENT (AMERICA) LTD. HANWHA (SHANGHAI) CO., LTD. HANWHA CHEMICAL THAILAND. MAXFORMA INCORPORATED. UNION INDUSTRIAL DEVELOPMENT INC. BOR DEVELOPMENT LLC. MAXFORMA HOLDINGS INCORPORATED MAXFORMA PLASTICS LLC. HANWHA CHEMICAL (BEIJING) CO., LTD. HANWHA CHEMICAL (SHANGHAI) CO., LTD. UNIVERSAL BEARINGS INC. HANWHA AMERICA DEVELOPMENT INC. HANWHA LANCASTER LLC. HANWHA DEVELOPMENT SERVICES LLC. LANCASTER DEVELOPMENT GROUP LLC. HANWHA INTERNATIONAL(S) PTE LTD. MGM RT. ACROPARK GOLF CORP. HANWHA BANK HUNGARY LTD. HANWHA FIRST INVESTMENT CO.,BV HANWHA CHANDLER LLC. CHANDLER LLC. HANWHA SONORAN LLC. SONORAN VISTA LLC. HANWHA SAUDI CONTRACTING CO. LTD. HANWHA CHEMICAL (THAILAND) CO., LTD. (99.99% held by the subject company) HANWHA INTERNATIONAL CORP. (100.0% held by the subject company) HANWHA SOLAR HOLDINGS CO.,LTD (100.0% held by the subject company) HANWHA RESOURCES (CANADA) LTD. (12/14/2007 Joined as an Affiliated company) HANWHA L&C CANADA INC. (01/02/2008 Joined as an Affiliated company) HANWHA PARCEL LLC(07/02/2009 Joined as an Affiliated company) HANWHA INTERNACIONAL DO BRASIL INTERMEDIACOES DE NEGOCIOS LTDA.(08/19/2009 Joined as an Affiliated company) HANWHA CORSICANA LLC(07/07/2009 Joined as an Affiliated company) HANWHA PARCEL O LLC(07/03/2009 Joined as an Affiliated company)
Overseas Office	HANWHA CHEMICAL TRADING (SHANGHAI) CO., LTD. HANWHA CHEMICAL TRADING (NINGBO) CO., LTD. (100.0% held by the subject company)
Cooperative Enterprise	-Insured Company FIRST FIRE & MARINE INSURANCE CO.,LTD(110111-0017586) HANWHA NON-LIFE INSURANCE CO., LTD.(110111-0006456)

Sales by Region (Activity & Markets)

Sales/ Unit :Mil KRW	06/2012	2011	2010
Export	846,861	2,001,959	1,810,193
Domestic	920,773	1,968,406	1,817,973
Total	1,767,634	3,970,365	3,628,166

The Subject exports to China, Taiwan, Philippines, Singapore, Middle East and Africa.

Court Action

Case No.	Court	Plaintiff(s)/ Creditor(s)/ Applicant(s)	Defendant(s)/ Debtor(s)/ Respondent(s)	Cause	Amount (Million KRW)	Status
		The Subject Company	Kang Dae-Hwan	Receivables	278
		Lee Kyung-Chan	The Subject Company	-	30	2^nd round is proceeding
		Hyundai oil Refinery Co., ltd.(110111-0090558)	The Subject Company & Others(3)	Related to selling Hanwha Enerygy's Stocks	32,347	The subject won at 1st round partially. 2nd round is proceeding.
		The Subject Company	Fair Trade Commission	Related to imposed penalty on LD/LDPE Price Cartel	1,040	2^nd round is Proceeding.

There are 1 case filed as Plaintiff(s)/ Creditor(s)/ Applicant(s) amounting 54,000,000 KRW, and 4 cased filed as Defendant(s)/ Debtor(s)/ Respondent(s) amounting 1,216,000,000 KRW.

News Clipping

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FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.34
UK Pound	1	Rs.86.96
Euro	1	Rs.69.24

INFORMATION DETAILS

Report Prepared by :

PDT

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.