MIRA INFORM REPORT

Report Date :

26.11.2012

IDENTIFICATION DETAILS

Name :	CHUAN KUO CERAMICS JOINT STOCK COMPANY

Registered Office :	Go Dau Industrial Zone, Phuoc Thai Commune, Long Thanh District, Dong Nai Province

Country :	Vietnam

Financials (as on) :	31.12.2011

Date of Incorporation :	1999

Legal Form :	Joint stock company

Line of Business :	The subject registers and operates in manufacturing and trading porcelain tableware products.

No. of Employees :	Over 700 employees, in which, factory in Dong Nai Province has about 480 employees.

RATING & COMMENTS

MIRA’s Rating :

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 – June 30^th, 2012

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Vietnam

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

vietnam - ECONOMIC OVERVIEW

Vietnam is a densely-populated developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While Vietnam's economy remains dominated by state-owned enterprises, which still produce about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam joined the World Trade Organization in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 22% in 2011, while industry's share increased from 36% to 40% in the same period. Deep poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. The global recession has hurt Vietnam's export-oriented economy, with GDP in 2009-11 growing less than the 7% per annum average achieved during the last decade. In 2011, exports increased by more than 33%, year-on-year, and the trade deficit, while reduced from 2010, remained high, prompting the government to maintain administrative trade measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance. Since 2008, the government devalued it in excess of 20% through a series of small devaluations. Foreign donors pledged nearly $8 billion in new development assistance for 2011. However, the government's strong growth-oriented economic policies have caused it to struggle to control one of the region's highest inflation rates, which reached as high as 23% in August 2011 and averaged 18% for the year. In February 2011, Vietnam shifted its focus away from economic growth to stabilizing its economy and tightened fiscal and monetary policies. In early 2012 Vietnam unveiled a broad "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises and the banking sector. Vietnam's economy continues to face challenges from low foreign exchange reserves, an undercapitalized banking sector, and high borrowing costs. The near-bankruptcy and subsequent default of the state-owned-enterprise Vinashin, a leading shipbuilder, led to a ratings downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing difficulties.

Source : CIA

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status
English Name		CHUAN KUO CERAMICS JOINT STOCK COMPANY
Vietnamese Name		CONG TY CO PHAN GOM SU TOAN QUOC
Trade name		CK
Short name		CHUAN KUO
Type of Business		Joint stock company
Year Established		1999
Investment Certificate No		472033000694
Date Of Issuance		16 Oct 2008
Place of Issuance		Dong Nai Industrial Zones Authority
Registered Investment Capital		USD 50,000,000
Chartered capital		USD 15,000,000
Status		Unlisted
Tax code		3600462957
Total Employees		Over 700 employees, in which, factory in Dong Nai Province has about 480 employees.
Note: The correct name of subject is as above.

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Registered Investment Capital: USD 20,000,000 Changed to: USD 40,000,000 Changed to: USD 50,000,000	17 Mar 2009
2	Subject has got former Chartered capital: USD 12,000,000 Changed to: USD 15,000,000	17 Mar 2009
3	Subject has got former Investment Certificate No: 38/GP-KCN-DN issued on 28 Sep 1999 Changed to: 38/GCNDC1-KCN-DN on 29 Nov 2004 Changed to: 38/GCNDC3-KCN-DN on 30 Nov 2005 Changed to: 38/GCNDC4/47/2 on 28 May 2007 Changed to: 472033000694	16 Oct 2008
4	Subject has got former Chartered capital: USD 6,000,000 Changed to: USD 12,000,000	28 May 2007
5	Subject has got former Registered Vietnamese Name: CONG TY CO PHAN HUU HAN GOM SU TOAN QUOC Changed to: CONG TY CO PHAN GOM SU TOAN QUOC	N/A
6	Subject has got former Registered English Name: CHUAN KUO CERAMICS CO., LTD Changed to: CHUAN KUO CERAMICS JOINT STOCK COMPANY	N/A

ADDRESSES

Head Office
Address		Go Dau Industrial Zone, Phuoc Thai Commune, Long Thanh District, Dong Nai Province, Vietnam
Telephone		(84-61) 3542 125 - 3542 126
Fax		(84-61) 3542 129
Email		ckpocelain@hcm.vnn.vn / info@ckporcelain.com
Occupied Area		66,470.5 m²
Land-use Right		Leased

Branch in Ho Chi Minh
Address		No. 305/27, Phan Van Hon Street, Tan Thoi Nhat Ward, 12 District, Ho Chi Minh City, Vietnam
Telephone		(84-8) 3592 0555
Fax		(84-8) 3592 0560

Branch in Ha Noi
Address		Lot B2-1-2 Nam Thang Long Industrial Zone, Ha Noi City, Vietnam
Telephone		(84-4) 3752 3955
Fax		(84-4) 3752 3960
Tax code		No. 3600462957-001
Director		Mr. Tang Fu Lin

Branch in Da Nang
Address		Lot 33 Da Nang Industrial Zone, Da Nang City, Vietnam
Telephone		(84-511) 3886 784
Fax		(84-511) 3933 773
Tax code		No. 3600462957-003
Director		Mr. Wu Ching Yuan

Branch in Can Tho
Address		No. 186/6 Le Hong Phong Street, Tra Noc Ward, Can Tho City, Vietnam

Branch in Vinh Long
Address		Lot B3 Hoa Phu Industrial Zone, Hoa Phu Commune, Vinh Long Province, Vietnam

DIRECTORS

1. NAME		Mr. WU, YEN-SAN
Position		Chairman
Date of Birth		05 Oct 1945
ID Number/Passport		130776491
ID Issue Date		04 Oct 2000
ID Issue Place		Taiwan
Resident		No. 65 Yu-Tsair, Yingko, Taipei, Taiwan
Nationality		Taiwanese

2. NAME		Mr. WU, CHING-YUAN
Position		General Director
Date of Birth		15 May 1972
ID Number/Passport		132053039
ID Issue Date		02 Jan 2003
ID Issue Place		Taiwan
Resident		No. 65 Yu-Tsair, Yingko, Taipei , Taiwan
Nationality		Taiwanese

3. NAME		Mr. DAPHAE KUO
Position		Sales Manager
Nationality		Taiwanese

4. NAME		Mr. CHEN SHIH CHI
Position		Chief Accountant
Current resident		Dong Nai Province, Vietnam
Nationality		Taiwanese
Qualification		Bachelor

BUSINESS NATURE AND ACTIVITIES

The subject registers and operates in manufacturing and trading porcelain tableware products.

IMPORT & EXPORT ACTIVITIES

IMPORT:
Types of products		Materials
Market		China, Taiwan and Italy, India, Japan

EXPORT:
Market		USA, England, Germany, Japan and Taiwan.

BANKERS

1. INDOVINA BANK LIMITED
Address		Nhon Trach Industrial Zone 3 Street 25th, Hiep Phuoc Commune, Nhon Trach District, Dong Nai Province, Vietnam
Telephone		(84-61) 3569029
Fax		(84-61) 356902

2. HSBC BANK (VIET NAM) LTD
Address		Metropolitan Building, No. 235 Dong Khoi Road, Ben Nghe Ward, 1 District, Ho Chi Minh City, Vietnam
Telephone		(84-8) 38292288
Fax		(84-8) 38230530

SHAREHOLDERS

1. NAME		Mr. WU, MENG-TSANG
Date of Birth		31 Mar 1969
ID Number/Passport		130977786
Issued on		04 Dec 2000
Issued Place		Taiwan
Resident		No. 65 Yu-Tsair, Yingko, Taipei, Taipei , Taiwan
Nationality		Taiwanese
Value of shares		USD 4,500,000
Percentage		30%

2. NAME		Mr. WU, CHING-YUAN
Position		General Director
Date of Birth		15 May 1972
ID Number/Passport		132053039
Issued on		02 Jan 2003
Issued Place		Taiwan
Resident		No. 65 Yu-Tsair, Yingko, Taipei , Taiwan
Nationality		Taiwanese
Value of shares		USD 4,500,000
Percentage		30%

3. NAME		Mr. WU, YEN-SAN
Position		Chairman
Date of Birth		05 Oct 1945
ID Number/Passport		130776491
Issued on		04 Oct 2000
Issued Place		Taiwan
Resident		No. 65 Yu-Tsair, Yingko, Taipei , Taiwan
Nationality		Taiwanese
Value of shares		USD 1,500,000
Percentage		10%

4. NAME		Ms. WU CHANG, WANG-SHIH
Date of Birth		27 Jul 1949
ID Number/Passport		200436846
Issued on		30 Jan 2003
Issued Place		Taiwan
Resident		No. 65 Yu-Tsair, Yingko, Taipei , Taiwan
Nationality		Taiwanese
Value of shares		USD 1,500,000
Percentage		10%

5. NAME		Ms. WU, SHU-FEN
Date of Birth		18 Jul 1970
ID Number/Passport		130977785
Issued on		04 Dec 2000
Issued Place		Taiwan
Resident		No. 65 Yu-Tsair, Yingko, Taipei , Taiwan
Nationality		Taiwanese
Value of shares		USD 1,500,000
Percentage		10%

6. NAME		Ms. WU, SHU-MIN
Date of Birth		09 Dec 1973
ID Number/Passport		130705792
Issued on		19 Sep 2000
Issued Place		Taiwan
Resident		No. 10 Yu-Tsai, Yingko, Taipei , Taiwan
Nationality		Taiwanese
Value of shares		USD 1,500,000
Percentage		10%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011	31/12/2010	31/12/2009
Number of weeks	52	52	52
ASSETS
A – CURRENT ASSETS	206,489,126,105	123,152,823,005	76,505,138,573
I. Cash and cash equivalents	29,868,692,231	12,228,320,072	8,057,150,942
1. Cash	29,868,692,231	12,228,320,072	8,057,150,942
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	50,157,829,222	27,688,518,034	26,557,739,332
1. Receivable from customers	47,142,758,110	27,688,158,034	26,410,748,332
2. Prepayments to suppliers	0	0	0
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	3,015,071,112	360,000	146,991,000
6. Provisions for bad debts	0	0	0
IV. Inventories	116,315,732,532	78,560,809,132	40,518,827,524
1. Inventories	116,315,732,532	78,560,809,132	40,518,827,524
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	10,146,872,120	4,675,175,767	1,371,420,775
1. Short-term prepaid expenses	692,483,865	684,620,151	820,644,303
2. VAT to be deducted	8,248,489,366	3,110,101,345	359,340,054
3. Taxes and other accounts receivable from the State	0	0	0
4. Other current assets	1,205,898,889	880,454,271	191,436,418
B. LONG-TERM ASSETS	477,436,949,634	6,809,784,250	5,751,888,686
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	447,374,839,766	6,430,767,854	5,516,585,677
1. Tangible assets	427,156,836,219	6,430,767,854	5,516,585,677
- Historical costs	815,748,400,992	11,469,188,966	9,440,453,673
- Accumulated depreciation	-388,591,564,773	-5,038,421,112	-3,923,867,996
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	0	0	0
- Initial costs	0	0	0
- Accumulated amortization	0	0	0
4. Construction-in-progress	20,218,003,547	0	0
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	0	0	0
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	0	0	0
3. Other long-term investments	0	0	0
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	30,062,109,868	379,016,396	235,303,009
1. Long-term prepaid expenses	30,033,709,868	379,016,396	235,303,009
2. Deferred income tax assets	0	0	0
3. Other long-term assets	28,400,000	0	0
VI. Goodwill	0	0	0
1. Goodwill	0	0	0
TOTAL ASSETS	683,926,075,739	129,962,607,255	82,257,027,259

LIABILITIES
A- LIABILITIES	312,689,828,351	70,998,798,445	39,667,545,811
I. Current liabilities	312,689,828,351	70,998,798,445	39,667,545,811
1. Short-term debts and loans	0	0	0
2. Payable to suppliers	292,022,151,626	-20,323,000	0
3. Advances from customers	5,701,755,450	2,055,609,994	672,686,566
4. Taxes and other obligations to the State Budget	3,342,163,416	292,933,842	293,504,842
5. Payable to employees	5,915,887,574	692,440,000	520,075,000
6. Accrued expenses	-93,343,603	0	0
7. Inter-company payable	0	66,256,703,875	35,759,378,623
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	5,801,213,888	1,721,433,734	2,421,900,780
10. Provisions for short-term accounts payable	0	0	0
11. Bonus and welfare funds	0
II. Long-Term Liabilities	0	0	0
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	0	0	0
4. Long-term debts and loans	0	0	0
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	0	0	0
7. Provisions for long-term accounts payable	0	0	0
8. Unearned Revenue	0
9. Science and technology development fund	0
B- OWNER’S EQUITY	371,236,247,388	58,963,808,810	42,589,481,448
I. OWNER’S EQUITY	371,236,247,388	58,963,808,810	42,589,481,448
1. Capital	245,041,212,400	0	0
2. Share premiums	0	0	0
3. Other sources of capital	0	0	0
4. Treasury stocks	0	0	0
5. Differences on asset revaluation	0	0	0
6. Foreign exchange differences	0	0	0
7. Business promotion fund	0	0	0
8. Financial reserved fund	0	0	0
9. Other funds	0	0	0
10. Retained earnings	126,195,034,988	58,963,808,810	42,589,481,448
11. Construction investment fund	0	0	0
12. Business arrangement supporting fund	0
II. Other sources and funds	0	0	0
1. Bonus and welfare funds (Elder form)	0	0	0
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	683,926,075,739	129,962,607,255	82,257,027,259

PROFIT & LOSS STATEMENT

Description	FY2011	FY2010	FY2009
1. Total Sales	396,562,481,114	325,010,056,194	251,729,491,011
2. Deduction item	3,492,858,333	1,832,438,553	1,873,041,353
3. Net revenue	393,069,622,781	323,177,617,641	249,856,449,658
4. Costs of goods sold	243,788,872,985	200,600,682,220	161,361,160,934
5. Gross profit	149,280,749,796	122,576,935,421	88,495,288,724
6. Financial income	4,949,225,948	3,986,193,335	5,229,908,197
7. Financial expenses	21,316,718,827	32,104,959,365	25,474,528,589
- In which: Loan interest expenses		888,199,580	1,502,116,535
8. Selling expenses	28,639,459,509	25,350,409,799	1,680,838,956
9. Administrative overheads	26,552,648,544	18,456,925,841	31,055,184,416
10. Net operating profit	77,721,148,864	50,650,833,751	35,514,644,960
11. Other income	715,592,436	1,360,427,346
12. Other expenses	817,131,869	2,716,971,767	7,994,322
13. Other profit /(loss)	-101,539,433	-1,356,544,421	-7,994,322
14. Total accounting profit before tax	77,619,609,431	49,294,289,330	35,506,650,638
15. Current corporate income tax	6,085,829,453	3,734,529,188	3,201,717,525
16. Deferred corporate income tax	0
17. Interest from subsidiaries/related companies	0
18. Profit after tax	71,533,779,978	45,559,760,142	32,304,933,113

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2011	FY2010	FY2009	Average Industry
Current liquidity ratio	0.66	1.73	1.93	1.21
Quick liquidity ratio	0.29	0.63	0.91	0.68
Inventory circle	2.10	3.37	3.98	3.59
Average receive period	46.58	31.27	38.80	52.13
Utilizing asset performance	0.57	2.49	3.04	0.53
Liability by total assets	45.72	54.63	48.22	67.33
Liability by owner's equity	84.23	120.41	93.14	255.00
Ebit / Total assets (ROA)	11.35	38.61	44.99	6.11
Ebit / Owner's equity (ROE)	20.91	85.11	86.90	20.43
Ebit / Total revenue (NPM)	19.57	15.44	14.70	11.45
Gross profit / Total revenue (GPM)	37.64	37.71	35.15	19.51
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

CASH FLOW STATEMENT

(Indirect method)
Items	FY2011	FY2010	FY2009
I. Cash flows from operating activities
1. Profit before tax	77,619,609,431	49,294,289,283	35,506,650,638
2. Adjustments
- Depreciation and amortization	66,845,545,636	50,925,370,556	81,348,212,467
- Provisions	0	0	0
- Unrealized foreign exchange difference	0	0	0
- Gain/loss from investing activities	0	0	0
- Interest expense	0	888,199,580	1,502,116,535
3. Operating profit before movements in working capital	144,465,155,067	101,107,859,419	118,356,979,640
- (Increase)/Decrease in receivables	-10,568,229,393	-6,050,414,890	-13,336,158,909
- (Increase)/Decrease in inventories	15,493,173,989	27,258,750,110	-29,369,265,376
- Increase/(Decrease) in accounts payable	16,142,040,816	-38,143,738,761	58,402,420,490
- (Increase)/Decrease in prepaid expenses	-16,673,102,846	-5,991,557,318	-642,757,885
- Interest paid	0	-888,199,580	-1,502,116,535
- Corporate income tax paid	-4,456,698,165	-4,103,531,769	-4,124,679,243
- Other cash inflows	281,063,234		761,073,013
- Other cash outflows	0	0	0
Net cash from (used in) operating activities	144,683,402,702	73,189,167,211	128,545,495,195
II. Cash flows from investing activities
1. Acquisition of fixed assets and other long - term assets	-169,761,006,399	-47,459,557,076	-89,349,932,545
2. Proceeds from fixed assets and long - term assets disposal	0	0	0
3. Cash outflow for lending, buying debt instruments of other companies	0	0	0
4. Cash recovered from lending, selling debt instruments of other companies	0	0	0
5. Investment in other entities	0	0	0
6. Cash recovered from investments in other entities	0	0	0
7. Interest income, dividend and profit paid	0	0	0
Net cash from (used in) investing activities	-169,761,006,399	-47,459,557,076	-89,349,932,545
III. Cash flows from financing activities
1. Proceeds from issuing stocks, receiving capital from owners	61,296,168,703	0	0
2. Capital withdrawal, buying back issued stocks	0	-12,858,300,000	0
3. Proceeds from borrowings	0	633,995,574	0
4. Repayment of borrowings	0	-31,379,310,044	-16,631,300,615
5. Repayment of obligations under finance leased	0	0	0
6. Dividends paid	-24,933,631,073	-12,858,300,000	10,000,000,000
Net cash from (used in) financing activities	36,362,537,630	-56,461,914,470	-26,631,300,615
Net increase/(decrease) in cash and cash equivalents	11,284,933,933	-30,732,304,335	12,564,262,035
Cash and cash equivalents at beginning of year	18,583,758,298	49,316,062,633	36,751,800,598
Effect from changing foreign exchange rate	0
Cash and cash equivalents at end of year	29,868,692,231	18,583,758,298	49,316,062,633

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Fair
Liquidity		Low/Medium
Payment status		Average
Financial Situation		Above Average
Development trend		Positive
Litigation data		No Record
Bankruptcy		No Record
Payment Methods		Through its bank, L/C, T/T
Sale Methods		Retailer and Wholesaler
Public opinion		Normal

INTERPRETATION ON THE SCORES

CHUAN KUO CERAMICS JOINT STOCK COMPANY was founded in year of 1999. Its total investment capital now increased to USD 50,000,000 and the chartered capital is USD 15,000,000.

Its head office and factory are located at Go Dau Industrial Zone, Phuoc Thai Commune, Long Thanh District, Dong Nai Province, Vietnam. Besides, the firm has branches in Ho Chi Minh, Ha Noi, Da Nang, Can Tho and Vinh Long. Its factory has capacity of 30 million pieces annually was set up in year 2011 and the capacity is now 40 million pieces annually. It has over 700 employees in total.

The main business activities are manufacturing and trading porcelain tableware products such as cups, plates, teapots, ashtrays, etc. Its parent company is in Taiwan and the subject was founded by its president, Mr. Yen-San Wu in 1989, located in Yinko which is famous ceramics town in Taiwan. It has been expanding its market share all over Vietnam and also exports its products to USA, England, Germany, Japan and Taiwan. Capacity production of subject is about 29,000,000 products per year.

From the figures above, we can see a strong growth in total assets In 2011, its total assets were VND 683.9 billion, which was increased more than 5 times higher than previous years. And in total asset, the fixed asset was increased very quickly. That is suitable because subject is a manufacturing company. The historical cost of tangible asset in 2011 was VND 815.7 billion, an increase of 7,012.5% compared with 2010. The subject invested more in tangible asset to go up its productivity. Along with that, its liabilities in 2011 was raised more than 4 times higher than 2010. However, its total asset still can meet its liabilities.

In 2011, its net revenue was VND 396.5 billion and profit after tax was VND 71.5 billion against year 2010. Both liquidity ratios of subject were reduced in 2011. The ratio of ROA, ROE were fair.

In general, the subject is operating in medium scale. It has a long-term operation in this field so it has a stable position and market share. In our opinion, it has ability to meet small and medium business transaction.

INDUSTRY DATA

Industry code	Growth speed by price compared with 1994 (%)		Total enterprises 2010	Total employees 2011 (Thous.pers.)	Annual average capital of enterprises 2010 (billion dongs)
Industry code	2011	2010	Total enterprises 2010	Total employees 2011 (Thous.pers.)
Agriculture, Forestry and Fishing	4.00	2.78	8,887	24,362.9	95,227
Industry and Construction	5.53	7.70	95,217	10,718.9	3,641,376
Trade and Services	6.69	7.52	187,195	15,270.2	6,957,082

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.55.34
UK Pound	1	Rs.88.30
Euro	1	Rs.71.37

INFORMATION DETAILS

Report Prepared by :

SDA

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.