MIRA INFORM REPORT

Report Date :

12.12.2013

IDENTIFICATION DETAILS

Name :	MAHESH TIMBER SINGAPORE PTE. LTD.
Registered Office :	3, Shenton Way, 08-04, Shenton House, 068805
Country :	Singapore
Financials (as on) :	31.03.2012
Date of Incorporation :	16.08.2007
Com. Reg. No.:	200715054-K
Legal Form :	Private Limited Company
Line of Business :	trader of timber
No. of Employees :	3 [2013]

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 :	Slow but Correct
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 – September 30th, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
Singapore	A1	A1

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

Singapore ECONOMIC OVERVIEW

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. Real GDP growth averaged 8.6% between 2004 and 2007. The economy contracted 0.8% in 2009 as a result of the global financial crisis, but rebounded 14.8% in 2010, on the strength of renewed exports, before slowing to 5.2% in 2011 and 1.3% in 2012, largely a result of soft demand for exports during the second European recession. Over the longer term, the government hopes to establish a new growth path that focuses on raising productivity, which has sunk to an average of about 1.0% in the last decade. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

Source : CIA

* Adopted abbreviations :	SC - Subject Company (the company enquired by you)
	N/A - Not Applicable

EXECUTIVE SUMMARY

REGISTRATION NO.	:	200715054-K
COMPANY NAME	:	MAHESH TIMBER SINGAPORE PTE. LTD.
FORMER NAME	:	N/A
INCORPORATION DATE	:	16/08/2007
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	3, SHENTON WAY, 08-04, SHENTON HOUSE, 068805, SINGAPORE.
BUSINESS ADDRESS	:	3, SHENTON WAY, 08-04, SHENTON HOUSE, 068805, SINGAPORE.
TEL.NO.	:	65-63376485
FAX.NO.	:	65-63396517
CONTACT PERSON	:	ASHOK KUMAR ( DIRECTOR )
PRINCIPAL ACTIVITY	:	TRADING OF TIMBER
ISSUED AND PAID UP CAPITAL	:	2,500,000.00 ORDINARY SHARE, OF A VALUE OF USD 2,500,000.00  259,659.00 ORDINARY SHARE, OF A VALUE OF SGD 259,659.00
SALES	:	USD 74,353,644 [2012]
NET WORTH	:	USD 4,663,747 [2012]
STAFF STRENGTH	:	3 [2013]
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	FAIR
PAYMENT	:	GOOD
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	N/A
CURRENCY EXPOSURE	:	N/A
GENERAL REPUTATION	:	SATISFACTORY
INDUSTRY OUTLOOK	:	AVERAGE GROWTH

HISTORY / BACKGROUND

The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The SC is principally engaged in the (as a / as an) trading of timber.

The immediate holding company of the SC is MAHESH TIMBER PVT LTD, a company incorporated in SINGAPORE.

The ultimate holding company of the SC is SPORTS AND LEISURE PTE LTD, a company incorporated in SINGAPORE.

The major shareholder(s) of the SC are shown as follows :

Name	Address	IC/PP/Loc No	Shareholding	(%)
MAHESH TIMBER PVT LTD [USD 2,500,000 & SGD 259,659]	TIMBER MARKET, KARNAL, 132 001, HARYANA, INDIA.	T07UF2787	2,759,659.00	100.00
			---------------	------
			2,759,659.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	LIONEL KOH JIN KIAT @ LIONEL XU RENJIE
Address	:	118, BUKIT BATOK WEST AVENUE 6, 03-276, 650118, SINGAPORE.
IC / PP No	:	S7316879A
Nationality	:	SINGAPOREAN
Date of Appointment	:	01/05/2013

DIRECTOR 2

Name Of Subject	:	MR. ASHOK KUMAR
Address	:	H 2143, MAHESH TIMBER PVT LTD, MAHESH SADAR BAZAR, KARNAL, HARYANA, INDIA.
IC / PP No	:	F4404023
Nationality	:	INDIAN
Date of Appointment	:	20/07/2009

MANAGEMENT

1)	Name of Subject	:	ASHOK KUMAR
	Position	:	DIRECTOR

AUDITOR

Auditor	:	V. P. KUMARAN & CO.
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	NABOOBALAN S/O RAMASAMY NAIDU
	IC / PP No	:	S1410300G
	Address	:	229, ANG MO KIO AVENUE 3, 07-1290, 560229, SINGAPORE.

BANKING

No Banker found in our databank. 

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
C200709501	05/11/2007	N/A	STATE BANK OF INDIA	N/A	Unsatisfied
C200807586	14/08/2008	N/A	STATE BANK OF INDIA	N/A	Unsatisfied
C201210363	11/09/2012	N/A	STATE BANK OF INDIA	N/A	Unsatisfied

LEGAL CHECK AGAINST SC

* A check has been conducted in our databank against the SC whether the subject has been involved in any litigation. 

No legal action was found in our databank. 

No winding up petition was found in our databank. 

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	N/A
Overseas	:	N/A

The SC's registered office refused to disclose its suppliers information. 

The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT
Prompt 0-30 Days	[	]	Good 31-60 Days	[	X	]	Average 61-90 Days	[	]
Fair 91-120 Days	[	]	Poor >120 Days	[		]

CLIENTELE

Local	:	N/A
Overseas	:	N/A

The SC's registered office refused to disclose the SC's clientele information. 

OPERATIONS

Goods Traded

:

TIMBER

Total Number of Employees:
YEAR	2013
GROUP	N/A
COMPANY	3

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) trading of timber. 

The SC's registered office refused to disclose the SC's operation information. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client	:	006591644546
Current Telephone Number	:	65-63376485
Match	:	NO
Address Provided by Client	:	#08-04 SHENTON HOUSE SHENTON WAY
Current Address	:	3, SHENTON WAY, 08-04, SHENTON HOUSE, 068805, SINGAPORE.
Match	:	NO

Other Investigations

we contacted one of the staff from the SC's registered office and they provided limited information on the SC.

The address provided belongs is incomplete.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Decreased	[	2.40%	]
Profit/(Loss) Before Tax	:	Increased	[	3.20%	]
Return on Shareholder Funds	:	Acceptable	[	14.58%	]
Return on Net Assets	:	Acceptable	[	21.93%	]
The lower turnover could be due to the unfavourable market conditions.The SC's management have been efficient in controlling its operating costs. The SC's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Nil	[	0 Days	]
Debtor Ratio	:	Unfavourable	[	91 Days	]
Creditors Ratio	:	Favourable	[	24 Days	]
As the SC is a service oriented company, the SC does not need to keep stocks. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. The SC had a favourable creditors' ratio where the SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Favourable	[	1.25 Times	]
Current Ratio	:	Unfavourable	[	1.25 Times	]
A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Acceptable	[	4.51 Times	]
Gearing Ratio	:	Unfavourable	[	2.92 Times	]
The SC's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the SC is able to generate sufficient income to service its interest and repay the loans. The SC was highly geared, thus it had a high financial risk. The SC was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the SC will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the SC has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the SC's turnover and the interest it needs to pay.
Overall Assessment :
Due to the efficient control of its operating costs, the SC was able to remain profitable despite lower turnover achieved during the year. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the SC's profit, we do believe the SC is able to generate sufficient cash flow to service its interest payment. The SC's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.
Overall financial condition of the SC : FAIR

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators :	2008	2009	2010	2011	2012
Population (Million)	4.84	4.98	5.08	5.18	5.31
Gross Domestic Products ( % )	1.5	<0.8>	14.5	4.9	1.3
Consumer Price Index	6.6	0.6	2.8	5.2	4.6
Total Imports (Million)	450,892.6	356,299.3	423,221.8	459,655.1	474,554.0
Total Exports (Million)	476,762.2	391,118.1	478,840.7	514,741.2	510,329.0
Unemployment Rate (%)	2.2	3.2	2.2	2.1	2.0
Tourist Arrival (Million)	10.12	9.68	11.64	13.17	14.37
Hotel Occupancy Rate (%)	81.0	75.8	85.6	86.5	86.4
Cellular Phone Subscriber (Million)	1.31	1.37	1.43	1.50	1.52
Registration of New Companies (No.)	25,327	26,414	29,798	32,317	31,892
Registration of New Companies (%)	<2.2>	4.3	12.8	8.5	<1.3>
Liquidation of Companies (No.)	10,493	22,393	15,126	19,005	17,218
Liquidation of Companies (%)	13.7	113.4	<32.5>	25.6	9.4
Registration of New Businesses (No.)	24,850	26,876	23,978	23,494	24,788
Registration of New Businesses (%)	0.36	8.15	<10.78>	2.02	5.51
Liquidation of Businesses (No.)	21,150	23,552	24,211	23,005	22,489
Liquidation of Businesses (%)	<0.8>	11.4	2.8	<5>	<2.2>
Bankruptcy Orders (No.)	2,326	2,058	1,537	1,527	1,748
Bankruptcy Orders (%)	<15.9>	<11.5>	<25.3>	<0.7>	14.5
Bankruptcy Discharges (No.)	1,500	3,056	2,252	1,391	1,881
Bankruptcy Discharges (%)	<7.7>	103.7	<26.3>	<38.2>	35.2
INDUSTRIES ( % of Growth ) :
Agriculture
Production of Principal Crops	<0.32>	3.25	<0.48>	4.25	3.64
Fish Supply & Wholesale	<6.31>	<1.93>	<10.5>	12.10	<0.5>
Manufacturing *	74.6	71.5	92.8	100.0	100.3
Food, Beverages & Tobacco	94.8	90.4	96.4	100.0	103.5
Textiles	180.1	145.9	122.1	100.0	104.0
Wearing Apparel	334.6	211.0	123.3	100.0	92.1
Leather Products & Footwear	128.2	79.5	81.8	100.0	98.6
Wood & Wood Products	132.0	101.4	104.0	100.0	95.5
Paper & Paper Products	101.0	95.4	106.1	100.0	97.4
Printing & Media	118.2	100.9	103.5	100.0	93.0
Crude Oil Refineries	113.1	96.4	95.6	100.0	99.4
Chemical & Chemical Products	84.5	80.3	97.6	100.0	100.5
Pharmaceutical Products	43.7	49.1	75.3	100.0	109.7
Rubber & Plastic Products	120.1	101.2	112.3	100.0	96.5
Non-metallic Mineral	96.5	91.9	92.5	100.0	98.2
Basic Metals	109.8	92.6	102.2	100.0	90.6
Fabricated Metal Products	101.3	90.8	103.6	100.0	104.3
Machinery & Equipment	65.0	57.3	78.5	100.0	112.9
Electrical Machinery	81.7	86.8	124.1	100.0	99.3
Electronic Components	93.1	85.2	113.6	100.0	90.6
Transport Equipment	102.0	96.0	94.0	100.0	106.3
Construction	45.90	<36.9>	14.20	20.50	28.70
Real Estate	<11.2>	1.4	21.3	25.4	31.9
Services
Electricity, Gas & Water	<1.3>	1.70	4.00	7.00	6.30
Transport, Storage & Communication	11.60	3.90	12.80	7.40	5.30
Finance & Insurance	<5.9>	<16.4>	<0.4>	8.90	0.50
Government Services	17.40	4.50	9.70	6.90	6.00
Education Services	0.50	0.10	<0.9>	<1.4>	0.30
* Based on Index of Industrial Production (2011 = 100)
(Source : Department of Statistics)

INDUSTRY ANALYSIS

INDUSTRY :	TRADING
The wholesale and retail trade sector contracted by 1.5% in the fourth quarter of 2012, extending the 0.2% decline in the preceding quarter. For the whole of 2012, the sector declined by 0.7%, reversing the 1.6% growth in 2011. The sector was weighed down primarily by the wholesale trade segment. In 2012, the wholesale trade segment contracted by 1.0%, a reversal from the 1.4% growth in 2011. Growth of the retail trade segment also moderated to 2.0%, from 3.2% in the year 2011.
The domestic wholesale trade index grew by 1.2% in the fourth quarter of 2012, an improvement from the 5.4% decline in the third quarter. This was partly due to an increase in the sales of chemicals & chemical products and ship chandlers & bunkering. For the full year of 2012, the domestic wholesale trade index contracted by 2.2%, extending the 1.7% decline in 2011. The foreign wholesale trade index grew by 8.6% in the fourth quarter, an increase from the 6.6% growth in the third quarter. The expansion was partly due to resilient sales of petroleum & petroleum products. For the whole of 2012, the foreign wholesale trade index expanded by 9.1%, faster than the 4.3% increase in 2011.
In the fourth quarter of 2012, retail sales volume declined by 2.0%, extending the 0.3% decline in the third quarter. Excluding motor vehicles, retail sales volume grew by 0.4%, a slight moderation compared to the 1.5% gain in the third quarter of 2012. The sales volume of motor vehicles fell by 11% in the fourth quarter of 2012, after contracting by 6.1% in the third quarter. The sales of several discretionary items also declined in the fourth quarter. Besides, the sales of optical goods & books in 2012 fell by 3.6%, while the sales of telecommunications apparatus & computers declined by 1.4%.
For 2012 as a whole, retail sales volume grew by 1.3%, compared to the 2.0% expansion in 2011. Excluding motor vehicle sales, the increase in retail sales volume also moderated from 5.4% in 2011 to 1.7% in 2012. Medical goods & toiletries registered the largest increase (9.3%) in sales, followed by telecommunications apparatus & computers (6.9%). By contrast, the sales of watches & jewellery (-2.2%) and optical goods & books (-3.6%) declined.
OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 2007, the SC is a Private Limited company, focusing on trading of timber. Having been in business for more than 5 years, the SC has established a remarkable clientele base for itself which has contributed to its business growth. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future. 

Being a small company, the SC's business operation is supported by 3 employees. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC. 

Despite the lower turnover, the SC's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. Return on shareholders' funds of the SC was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. The high gearing ratio clearly implied that the SC was supported by more debt than equity. Thus, the SC is exposed to high financial risk. Given a positive net worth standing at USD 4,663,747, the SC should be able to maintain its business in the near terms. 

Overall, the SC's payment habit is good as the SC has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors. 

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry. 

Based on the above condition, we recommend credit be granted to the SC normally.

PROFIT AND LOSS ACCOUNT

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH SINGAPORE FINANCIAL REPORTING STANDARDS.

MAHESH TIMBER SINGAPORE PTE. LTD.

Financial Year End	2012-03-31	2011-03-31
Months	12	12
Consolidated Account	Company	Company
Audited Account	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES
Financial Type	FULL	FULL
Currency	USD	USD
TURNOVER	74,353,644	76,185,279
Other Income	108,624	167,967
	----------------	----------------
Total Turnover	74,462,268	76,353,246
Costs of Goods Sold	<73,120,003>	<75,031,040>
	----------------	----------------
Gross Profit	1,342,265	1,322,206
	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	795,606	770,969
	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	795,606	770,969
Taxation	<115,567>	<106,489>
	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	680,039	664,480
	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	1,373,596	709,116
	----------------	----------------
As restated	1,373,596	709,116
	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	2,053,635	1,373,596
	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	2,053,635	1,373,596
	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Others	226,951	360,422
	----------------	----------------
	226,951	360,422

BALANCE SHEET

MAHESH TIMBER SINGAPORE PTE. LTD.

ASSETS EMPLOYED:
FIXED ASSETS	5,657	11,315
	----------------	----------------
TOTAL LONG TERM ASSETS	5,657	11,315
CURRENT ASSETS
Trade debtors	18,472,731	-
Other debtors, deposits & prepayments	-	474,673
Short term deposits	552,337	552,337
Amount due from related companies	-	15,910,992
Cash & bank balances	8,477	8,825
Others	4,182,268	-
	----------------	----------------
TOTAL CURRENT ASSETS	23,215,813	16,946,827
	----------------	----------------
TOTAL ASSET	23,221,470	16,958,142
	=============	=============
CURRENT LIABILITIES
Trade creditors	4,785,630	378,594
Other creditors & accruals	32,263	16,887
Short term borrowings/Term loans	13,616,843	12,391,652
Provision for taxation	122,987	187,301
	----------------	----------------
TOTAL CURRENT LIABILITIES	18,557,723	12,974,434
	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	4,658,090	3,972,393
	----------------	----------------
TOTAL NET ASSETS	4,663,747	3,983,708
	=============	=============
SHARE CAPITAL
Ordinary share capital	2,610,112	2,610,112
	----------------	----------------
TOTAL SHARE CAPITAL	2,610,112	2,610,112
RESERVES
Retained profit/(loss) carried forward	2,053,635	1,373,596
	----------------	----------------
TOTAL RESERVES	2,053,635	1,373,596
	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	4,663,747	3,983,708
	----------------	----------------
	4,663,747	3,983,708
	=============	=============

FINANCIAL RATIO

MAHESH TIMBER SINGAPORE PTE. LTD.

TYPES OF FUNDS
Cash	560,814	561,162
Net Liquid Funds	560,814	561,162
Net Liquid Assets	4,658,090	3,972,393
Net Current Assets/(Liabilities)	4,658,090	3,972,393
Net Tangible Assets	4,663,747	3,983,708
Net Monetary Assets	4,658,090	3,972,393
BALANCE SHEET ITEMS
Total Borrowings	13,616,843	12,391,652
Total Liabilities	18,557,723	12,974,434
Total Assets	23,221,470	16,958,142
Net Assets	4,663,747	3,983,708
Net Assets Backing	4,663,747	3,983,708
Shareholders' Funds	4,663,747	3,983,708
Total Share Capital	2,610,112	2,610,112
Total Reserves	2,053,635	1,373,596
LIQUIDITY (Times)
Cash Ratio	0.03	0.04
Liquid Ratio	1.25	1.31
Current Ratio	1.25	1.31
WORKING CAPITAL CONTROL (Days)
Stock Ratio	0	0
Debtors Ratio	91	0
Creditors Ratio	24	2
SOLVENCY RATIOS (Times)
Gearing Ratio	2.92	3.11
Liabilities Ratio	3.98	3.26
Times Interest Earned Ratio	4.51	3.14
Assets Backing Ratio	1.79	1.53
PERFORMANCE RATIO (%)
Operating Profit Margin	1.07	1.01
Net Profit Margin	0.91	0.87
Return On Net Assets	21.93	28.40
Return On Capital Employed	21.93	28.40
Return On Shareholders' Funds/Equity	14.58	16.68
Dividend Pay Out Ratio (Times)	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.33
UK Pound	1	Rs.100.79
Euro	1	Rs.84.38

INFORMATION DETAILS

Report Prepared by :

MNL

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.