MIRA INFORM REPORT

Report Date :

06.08.2013

IDENTIFICATION DETAILS

Name :	HO CHI MINH CITY MEDICAL IMPORT EXPORT JOINT STOCK COMPANY
Registered Office :	181 Nguyen Dinh Chieu Street, Ward 6 , 3 District, Ho Chi Minh City
Country :	Vietnam
Financials (as on) :	31.12.2012
Date of Incorporation :	1984
Com. Reg. No.:	0302366480
Legal Form :	Joint stock company
Line of Business :	Wholesale of pharmaceuticals and medical equipment
No. of Employees :	140

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, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Vietnam	B1	B1

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 has been transitioning from the rigidities of a centrally-planned economy since 1986. Vietnamese authorities have reaffirmed their commitment to economic modernization in recent years. Vietnam joined the World Trade Organization in January 2007, which has promoted more competitive, export-driven industries. Vietnam became an official negotiating partner in the Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to less than 22% in 2012, while industry's share increased from 36% to nearly 41% in the same period. State-owned enterprises account for roughly 40% of GDP. 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 hurt Vietnam's export-oriented economy, with GDP in 2012 growing at 5%, the slowest rate of growth since 1999. In 2012, however, exports increased by more than 18%, year-on-year; several administrative actions brought the trade deficit back into balance. Between 2008 and 2011, Vietnam's managed currency, the dong, was devalued in excess of 20%, but its value remained stable in 2012. Foreign direct investment inflows fell 4.5% to $10.5 billion in 2012. Foreign donors have pledged $6.5 billion in new development assistance for 2013. Hanoi has oscillated between promoting growth and emphasizing macroeconomic stability in recent years. In February 2011, the Government shifted policy away from policies aimed at achieving a high rate of economic growth, which had stoked inflation, to those aimed at stabilizing the economy, through tighter monetary and fiscal control. Although Vietnam unveiled a broad, "three pillar" economic reform program in early 2012, proposing the restructuring of public investment, state-owned enterprises, and the banking sector, little perceptible progress had been made by early 2013. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses. In September 2012, the official bad debt ratio climbed to 8.8%, though some independent analysts believe it could be higher than 15%.

Source : CIA

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status
Registration English Name	HO CHI MINH CITY MEDICAL IMPORT EXPORT JOINT STOCK COMPANY
Registration Vietnamese Name	CONG TY CO PHAN XUAT NHAP KHAU Y TE THANH PHO HO CHI MINH
Registration Short name	YTECO
Type of Business	Joint stock company
Year Established	1984
Establishment Decision	60/2001
Date of Issuance	24 Apr 2001
Place of Issuance	Prime Minister
Business Registration No.	0302366480
Date of Registration	28 Aug 2010
Date of Latest Adjustment (16^th)	12 Jul 2013
Place of Registration	Business registration Office - Planning and Investment Department of Hochiminh City
Chartered capital	VND 28,000,000,000
Status	Unlisted
Tax code	0302366480
Total Employees	140

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 4103000534 issued on August 01st, 2001 Changed to: 0302366480	28 Aug 2010
2	Subject has got former Business Registration No: 102509 issued on 30 March 1993 Changed to: 4103000534	01 Aug 2001
3	Subject has got former registered capital: 14,903,800,000 VND Changed to: 28,000,000,000 VND	N/A
4	Subject has got former Registered English Name: MEDICAL IMPORT EXPORT COMPANY OF HO CHI MINH CITY Changed to: HO CHI MINH CITY MEDICAL IMPORT EXPORT JOINT STOCK COMPANY	N/A
5	Subject has got former Registered Vietnamese Name: CONG TY XUAT NHAP KHAU Y TE THANH PHO HO CHI MINH Changed to: CONG TY CO PHAN XUAT NHAP KHAU Y TE THANH PHO HO CHI MINH	N/A

ADDRESSES

Head Office
Address	181 Nguyen Dinh Chieu Street, Ward 6 , 3 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3930 4372 - 3930 5986
Fax	(84-8) 3930 6909
Email	yteco-hcm@yteco.vn
Website	www.yteco.vn
Transaction office in Ho Chi Minh
Address	No.65 Thuan Kieu Street, Ward 12, 5 District, Ho Chi Minh City, Vietnam
Transaction office in Ho Chi Minh
Address	No.90 Ham Nghi Street, Ben Nghe Ward, 1 District, Ho Chi Minh City, Vietnam
Transaction office in Ho Chi Minh
Address	E3, No.134/1 To Hien Thanh Ward 15, 10 District, Ho Chi Minh City, Vietnam
Branch in Can Tho
Address	24A1, Resident Area 91B, An Khanh Ward , Ninh Kieu District, Can Tho City, Vietnam
Branch in Da Nang
Address	Lot 10, Resident Area Dong Da-Le Loi-Tran Quy Cap, Thach Thang Ward , Hai Chau District, Da Nang City, Vietnam
Branch in Da Nang
Address	K49/51 Ong Ich Khiem Street, Thanh Binh Ward , Hai Chau District, Da Nang City, Vietnam
Warehouse
Address	24 Road 17, Hiep Binh Phuoc Ward , Thu Duc District, Ho Chi Minh City, Vietnam
Warehouse
Address	181 Nguyen Dinh Chieu Street, Ward 6 , 3 District, Ho Chi Minh City, Vietnam

DIRECTORS

1. NAME	Mr. LE VAN QUE
Position	Chairman
Date of Birth	28 Feb 1961
ID Number/Passport	020743375
ID Issue Date	30 Oct 1997
ID Issue Place	Police Station of Ho Chi Minh city
Resident	6/11 Phan Boi Chau Street, Ward 2 , Binh Thanh District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
2. NAME	Mr. TRINH DAO CUNG
Position	General Director
Date of Birth	06 Sep 1970
ID Number/Passport	023091906
ID Issue Date	30 Nov 2009
ID Issue Place	Police Station of Ho Chi Minh City
Resident	107/787B Nguyen Kiem Street, Ward 03 , Go Vap District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Qualification	Pharmacist
3. NAME	Mr. NGUYEN HAI HA
Position	Chief Accountant
Resident	Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Qualification	Bacherlor

BUSINESS NATURE AND ACTIVITIES

The subject registered in:

Wholesale of pharmaceuticals and medical equipment

Wholesale of other machinery and equipment n.e.c

Manufacture of irradiation, electromedical and electrotherapeutic equipment

Wholesale of food

Wholesale of agricultural raw materials (except wood, bamboo) and live animals

Manufacture of medical and dental instruments and supplies, shape- adjusted and ability recovery apparatus

Manufacture of measuring, testing, navigating and control equipment

Wholesale of motor vehicles

Manufacture of lifting and handling equipment

Manufacture of domestic appliances

Wholesale of electronic and telecommunications equipment and supplies

Construction of other civil engineering projects

Freight transport by road

Wholesale on a fee or contract basis

Restaurants and mobile food service activities

Washing and cleaning of textile and fur

Organization of conventions and trade shows

Retail sale of pharmaceutical and medical goods, cosmetic and toilet articles in specialized stores

Other human health care n.e.c

Manufacture of tobacco products

Non-specialized wholesale trade

Wholesale of specialized others n.e.c

Repair of electronic and optical equipment

Real estate activities with own or leased property

Manufacture of other chemical products n.e.c

Sale of motor vehicles on a fee or contract basis

Manufacture of ovens, furnaces and furnace burners

Manufacture of electronic components

Educational support services

Advertising

Other retail sale of new goods in specialized stores

Printing

Other transportation support activities

Travel agency activities

Other manufacturing n.e.c

IMPORT & EXPORT ACTIVITIES

IMPORT:
Market	Japanese, American, France, Thailand, Singapore, Korea…
EXPORT:
Market	N/A

BANKERS

1. VIETNAM EXPORT IMPORT COMMERCIAL JOINT STOCK BANK
Address	8th Floor, VinCom Center, No. 72 Le Thanh Ton street , 1 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3821 0055 - 3821 0056
Fax	(84-8) 3829 6063 - 3821 6913
VND Account	10001485108951
2. BANK FOR INVESTMENT & DEVELOPMENT OF VIETNAM- HCM CITY BRANCH
Address	134 Nguyen Cong Tru Street, Nguyen Thai Binh Ward, 1 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3823 0125
Fax	(84-8) 3829 8862
SWIFT Code	BIDVVNVX310
3. MARITIME COMMERICAL STOCK BANK HO CHI MINH BRANCH
Address	No. 26-28 Hai Ba Trung Street, Ben Nghe Ward, 1 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3822 2177
Fax	(84-8) 3822 2141
SWIFT Code	MCOBVNVX003
4. VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Address	No. 50 Ben Chuong Duong Street, 1 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3822 2752
Fax	(84-8) 3829 4063
SWIFT Code	VBAAVNVX
5. JOINT STOCK BANK FOR FOREIGN TRADE OF VIETNAM HO CHI MINH BRANCH
Address	No.10 Vo Van Kiet Street, 1 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3829 7245
Fax	(84-8) 3829 7228
Foreign Currency Account	0071370082167
VND Account	0071000005663
6. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE TRANSACTION CENTER NO.2
Address	No.79A Ham Nghi Str, Nguyen Thai Binh Ward, 1 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3829 0715
Fax	(84-8) 3829 5342

SHAREHOLDERS

1. NAME	STATE OWNED
Representative person	Mr. HUYNH KIM HOANG Ms. NGUYEN THI QUOC LINH
Value of shares	VND 8,120,000,000
Percentage	29%
2. NAME	Ms. DU MY HANH
Resident	18B/27/23 Ba Thang Hai Street, Ward 12, 10 District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Value of shares	VND 350,000,000
Percentage	1.25%
3. NAME	Ms. DUONG THI XUAN HA
Resident	68/14 Bui Thi Xuan Street, Ward 2, Tan Binh District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Value of shares	VND 350,000,000
Percentage	1.25%
4. NAME	Mr. LE THIEN PHUOC
Date of Birth	05 Sep 1946
ID Number/Passport	0215899226
Issued on	22 May 1994
Issued Place	Police Station of Ho chi minh City
Resident	187/11 Co Giang Street, Co Giang Ward, 1 District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Value of shares	VND 70,000,000
Percentage	0.25%
5. NAME	Mr. PHAN DUC BINH
Resident	152 Ly Chinh Thang Street, 3 District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Value of shares	VND 70,000,000
Percentage	0.25%
6. NAME	Mr. VU KHANH
Resident	139 Ham Nghi Street, Nguyen Thai Binh Ward, 1 District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Value of shares	VND 50,000,000
Percentage	0.18%
7. NAME	469 Other Shareholders
Value of shares	VND 18,990,000,000
Percentage	67.82%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2012	31/12/2011
Number of weeks	52	52
Audit status	Audited	Audited
ASSETS
A – CURRENT ASSETS	530,408,074,680	545,849,911,359
I. Cash and cash equivalents	19,769,443,175	27,459,633,847
1. Cash	19,769,443,175	24,459,633,847
2. Cash equivalents	0	3,000,000,000
II. Short-term investments	0	0
1. Short-term investments	0	0
2. Provisions for devaluation of short-term investments	0	0
III. Accounts receivable	424,274,091,720	384,536,672,407
1. Receivable from customers	383,214,145,903	343,642,622,567
2. Prepayments to suppliers	32,494,258,825	31,641,133,192
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	10,249,528,242	10,490,813,168
6. Provisions for bad debts	-1,683,841,250	-1,237,896,520
IV. Inventories	83,909,361,509	130,510,286,810
1. Inventories	84,641,475,487	130,707,905,605
2. Provisions for devaluation of inventories	-732,113,978	-197,618,795
V. Other Current Assets	2,455,178,276	3,343,318,295
1. Short-term prepaid expenses	359,035,500	61,322,430
2. VAT to be deducted	300,200,036	504,147,458
3. Taxes and other accounts receivable from the State	8,882,280	0
4. Other current assets	1,787,060,460	2,777,848,407
B. LONG-TERM ASSETS	12,076,490,767	12,057,866,153
I. Long term accounts 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	9,454,173,218	9,705,511,018
1. Tangible assets	7,276,429,938	7,446,149,406
- Historical costs	18,181,436,647	17,171,683,001
- Accumulated depreciation	-10,905,006,709	-9,725,533,595
2. Financial leasehold assets	0	0
- Historical costs	0	0
- Accumulated depreciation	0	0
3. Intangible assets	1,147,201,019	1,367,387,690
- Initial costs	2,941,828,300	2,941,828,300
- Accumulated amortization	-1,794,627,281	-1,574,440,610
4. Construction-in-progress	1,030,542,261	891,973,922
III. Investment property	0	0
Historical costs	0	0
Accumulated depreciation	0	0
IV. Long-term investments	1,326,000,000	1,326,000,000
1. Investments in affiliates	0	0
2. Investments in business concerns and joint ventures	1,326,000,000	1,326,000,000
3. Other long-term investments	0	0
4. Provisions for devaluation of long-term investments	0	0
V. Other long-term assets	1,296,317,549	1,026,355,135
1. Long-term prepaid expenses	4,853,093	120,845,011
2. Deferred income tax assets	1,177,464,456	793,510,124
3. Other long-term assets	114,000,000	112,000,000
VI. Goodwill	0	0
1. Goodwill	0	0
TOTAL ASSETS	542,484,565,447	557,907,777,512
LIABILITIES
A- LIABILITIES	499,785,045,352	516,989,913,023
I. Current liabilities	498,540,140,352	516,748,913,023
1. Short-term debts and loans	132,511,609,718	112,845,295,842
2. Payable to suppliers	284,855,854,024	337,281,883,337
3. Advances from customers	65,751,033,007	50,307,428,405
4. Taxes and other obligations to the State Budget	3,681,979,756	6,156,288,777
5. Payable to employees	2,700,000	0
6. Accrued expenses	4,045,422,363	2,955,549,764
7. Inter-company payable	0	0
8. Payable according to the progress of construction contracts	0	0
9. Other payable	7,691,541,484	7,682,984,494
10. Provisions for short-term accounts payable	0	0
11. Bonus and welfare funds	0	-480,517,596
II. Long-Term Liabilities	1,244,905,000	241,000,000
1. Long-term accounts payable to suppliers	0	0
2. Long-term inter-company payable	0	0
3. Other long-term payable	241,000,000	241,000,000
4. Long-term debts and loans	0	0
5. Deferred income tax payable	0	0
6. Provisions for unemployment allowances	0	0
7. Provisions for long-term accounts payable	0	0
8. Unearned Revenue	1,003,905,000	0
9. Science and technology development fund	0	0
B- OWNER’S EQUITY	42,699,520,095	40,917,864,489
I. OWNER’S EQUITY	42,699,520,095	40,917,864,489
1. Capital	28,000,000,000	28,000,000,000
2. Share premiums	0	0
3. Other sources of capital	0	0
4. Treasury stocks	0	0
5. Differences on asset revaluation	0	0
6. Foreign exchange differences	0	-2,072,193,691
7. Business promotion fund	6,675,782,228	6,116,793,854
8. Financial reserved fund	2,704,722,887	2,305,445,477
9. Other funds	0	0
10. Retained earnings	5,319,014,980	6,567,818,849
11. Construction investment fund	0	0
12. Business arrangement supporting fund	0	0
II. Other sources and funds	0	0
1. Bonus and welfare funds (Elder form)	0	0
2. Sources of expenditure	0	0
3. Fund to form fixed assets	0	0
MINORITY’S INTEREST	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	542,484,565,447	557,907,777,512

PROFIT & LOSS STATEMENT
Description	FY2012	FY2011
1. Total Sales	415,428,074,529	378,925,558,131
2. Deduction item	806,253,618	2,107,704,274
3. Net revenue	414,621,820,911	376,817,853,857
4. Costs of goods sold	361,318,565,511	335,441,955,643
5. Gross profit	53,303,255,400	41,375,898,214
6. Financial income	8,791,196,711	36,182,778,402
7. Financial expenses	16,514,173,417	40,796,208,108
- In which: Loan interest expenses	16,503,623,911	9,082,837,012
8. Selling expenses	18,309,778,020	14,516,933,229
9. Administrative overheads	15,652,618,241	13,168,212,802
10. Net operating profit	11,617,882,433	9,077,322,477
11. Other income	1,816,112,881	1,631,617,693
12. Other expenses	96,351,133	107,158,513
13. Other profit /(loss)	1,719,761,748	1,524,459,180
14. Total accounting profit before tax	13,337,644,181	10,601,781,657
15. Current corporate income tax	3,814,321,376	3,409,743,579
16. Deferred corporate income tax	-383,954,332	-793,510,124
17. Interest from subsidiaries/related companies	0	0
18. Profit after tax	9,907,277,137	7,985,548,202

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2012	FY2011	Average Industry
Current liquidity ratio	1.06	1.06	1.74
Quick liquidity ratio	0.90	0.80	0.95
Inventory circle	4.31	2.57	5.39
Average receive period	373.50	372.48	100.84
Utilizing asset performance	0.76	0.68	1.64
Liability by total assets	92.13	92.67	60.51
Liability by owner's equity	1,170.47	1,263.48	309.92
Ebit / Total assets (ROA)	5.50	3.53	9.59
Ebit / Owner's equity (ROE)	69.89	48.11	28.73
Ebit / Total revenue (NPM)	7.18	5.19	7.66
Gross profit / Total revenue (GPM)	12.83	10.92	22.62
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Fair
Liquidity	Medium
Payment status	Limited
Financial Situation	Average
Development trend	Even
Litigation data	Yes
Bankruptcy	No Record
Payment Methods	Direct payment or through its corresponding bank
Sale Methods	Retailer and Wholesaler
Note: According to the investigations, the subject had involved in the illegal import of 6.5 million USD worth of pharmaceuticals. YTECO altered allotted imported quota volumes, imported unlicensed medicines, and purchased controlled substances, which are excluded from Vietnam's list of drugs permitted for import according to the HCM city customs department's post-customs investigative team. YTECO subverted authorities to import nearly 50,000 kg of medical goods. Thousands of vaccine doses were also imported into the country, including over 17,600 doses of OKAVAX, 10,600 doses over the legal import limit. People related in the case have been dismissed and judged by the authority. The company's illegal activity caused instability on the price of drugs in Ho Chi Minh City and nationwide. Because of mistakes in operation, YTECO had been stopped approving for material and medicine import from November 2004. Since YTECO illegal action’s foundation, loan accounts of the subject at bankers had been blockaded. More than 80 percent of suppliers and customers had stopped businesses with YTECO. And the subject’s operation had fallen to crisis at that time.

INTERPRETATION ON THE SCORES

The subject - HO CHI MINH CITY MEDICAL IMPORT EXPORT JOINT STOCK COMPANY - has operated since 1984. The subject has many changes during operation (type of business, business registration, branch…). Currently, the subject is operating under business registration No. 0302366480 issued by Business registration Office - Planning and Investment Department of Hochiminh City with chartered capital of VND 28 billion.

The subject specializes in trading in pharmaceutical products, functional food, medical equipment and vaccines. Subject imports products from many suppliers in the world such as Japanese, American, France, Thailand, Singapore, Korea… Most of products of the subject are consumed in domestic market. Its distribution network is fair remarkable.

During operation, the subject had an illegal activity caused the instability of the price of drugs in Ho Chi Minh City and nationwide. Therefore, it met difficulties in operation in these years (2004-2005). However, currently, business operation of the subject has been improved. It is now operating normally and fair stably under the management and controlling of the State (the subject is a joint stock company, however, the main shareholder of the subject is still the State with 29% of share value).

According to financial data, financial situation of the subject is normal. Revenue and profit after tax in 2012 were increased compared with year 2011. However, the liability of the subject were high compared with the average industry ratios. Liquidity ratios were at acceptable level. In our opinion, the future prospect of the subject is average. It has capacity to meet small-medium financial commitments.

INDUSTRY DATA
Industry code	GDP growth speed by price compared with 1994 (%)		Total enterprises 2010		Total employees 2011 (Thous.pers.)	Annual average capital of enterprises 2010 (billion dongs)
	2012	2011
Agriculture, Forestry and Fishing	2.72	4.00	8,887		24,362.9	95,227
Industry and Construction	4.52	5.53	95,217		10,718.9	3,641,376
Trade and Services	6.42	6.69	187,195		15,270.2	6,957,082
ECONOMIC INDICATORS
			2012	2011		2010
Population (Million person)			88.78	87.84		86.93
Gross Domestic Products (USD billion)			136	119		102.2
GDP Growth (%)			5.03	5.89		6.78
GDP Per Capita (USD/person/year)			1,540	1,300		1,160
Inflation (% Change in Composite CPI)			9.21	18.58		11.75
State Budget Deficit compared with GDP (%)			4.8	4.9		5.8
SERVICE TRADE PERFORMANCE
Billion USD			2012	2011		2010
Exports			114.6	96.3		72.2
Imports			114.3	105.8		84.8
Trade Balance			0.3	-9.5		-12.6

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.82
UK Pound	1	Rs.92.97
Euro	1	Rs.80.73

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%)

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