MIRA INFORM REPORT

Report Date :

13.12.2013

IDENTIFICATION DETAILS

Name :	PETROCHEM ASIA PTE. LTD.
Formerly Known as:	PETROCHEM CARLESS ASIA PTE LTD
Registered Office :	8, Eu Tong Sen Street, 14-98, The Central, 059818
Country :	Singapore
Financials (as on) :	31.12.2012
Date of Incorporation :	22.02.2001
Com. Reg. No.:	200101217-R
Legal Form :	Private Limited Company
Line of Business :	Wholesaler of petrochemical products
No. of Employees :	06 [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 :	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 – 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.	:	200101217-R
COMPANY NAME	:	PETROCHEM ASIA PTE. LTD.
FORMER NAME	:	PETROCHEM CARLESS ASIA PTE LTD (30/09/2002)
INCORPORATION DATE	:	22/02/2001
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	8, EU TONG SEN STREET, 14-98, THE CENTRAL, 059818, SINGAPORE.
BUSINESS ADDRESS	:	8 EU TONG SEN STREET, #14-98 THE CENTRAL, 059818, SINGAPORE.
TEL.NO.	:	65-63230010
FAX.NO.	:	65-63230090
CONTACT PERSON	:	YOGESH RAMNIKLAL MEHTA ( DIRECTOR )
PRINCIPAL ACTIVITY	:	WHOLESALE OF PETROCHEMICAL PRODUCTS
ISSUED AND PAID UP CAPITAL	:	100,000.00 ORDINARY SHARE, OF A VALUE OF SGD 100,000.00
SALES	:	USD 35,420,942 [2012]
NET WORTH	:	USD 212,936 [2012]
STAFF STRENGTH	:	6 [2013]
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	LIMITED
PAYMENT	:	AVERAGE
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	LOW
CURRENCY EXPOSURE	:	MODERATE
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) wholesale of petrochemical products.

The immediate and ultimate holding company of the SC is PETROCHEM GULF HOLDINGS LTD., a company incorporated in BERMUDA.

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
PETROCHEM GULF HOLDINGS LTD.	MILNER HOUSE, 18, PARLIAMENT STREET HAMILTON BERMUDA, BERMUDA.	T01UF0005	100,000.00	100.00
			---------------	------
			100,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	YOGESH RAMNIKLAL MEHTA
Address	:	8, EU TONG SEN STREET, 14-98, 059818, SINGAPORE.
IC / PP No	:	G5589736R
Nationality	:	INDIAN
Date of Appointment	:	22/02/2001

MANAGEMENT

1)	Name of Subject	:	YOGESH RAMNIKLAL MEHTA
	Position	:	DIRECTOR

AUDITOR

Auditor	:	KPMG LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	SUSAN LIM WIE
	IC / PP No	:	S1837208H
	Address	:	26, LIMAU RISE, LIMAU VILLAS, 465851, SINGAPORE.

BANKING

No Banker found in our databank. 

ENCUMBRANCE (S)

No encumbrance was found in our databank at the time of investigation. 

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 refused to disclose its suppliers. 

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	[	]	Average 61-90 Days	[	X	]
Fair 91-120 Days	[	]	Poor >120 Days	[	]

CLIENTELE

Local	:	YES
Domestic Markets	:	SINGAPORE
Overseas	:	YES
Export Market	:	WORLDWIDE
Credit Term	:	AS AGREED
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Goods Traded

:

CHEMICALS

Total Number of Employees:
YEAR	2013
GROUP	N/A
COMPANY	6

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) wholesale of petrochemical products. 

The SC is one of the largest petrochemical distributor.

The SC sells the products according to its customers' orders. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client	:	6563230010
Current Telephone Number	:	65-63230010
Match	:	YES
Address Provided by Client	:	8 EU TONG SEN STREET # 14-98 THE CENTRAL SINGAPORE 059818
Current Address	:	8 EU TONG SEN STREET, #14-98 THE CENTRAL, 059818, SINGAPORE.
Match	:	YES

Other Investigations

we contacted one of the staff from the SC and she provided some information on the SC.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2010 - 2012	]
Profit/(Loss) Before Tax	:	Decreased	[	2010 - 2012	]
Return on Shareholder Funds	:	Unfavourable	[	<278.65%>	]
Return on Net Assets	:	Unfavourable	[	<199.23%>	]
The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The SC incurred losses during the year due to the inefficient control of its operating costs. The SC's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Nil	[	0 Days	]
Debtor Ratio	:	Favourable	[	3 Days	]
Creditors Ratio	:	Favourable	[	1 Days	]
As the SC is a service oriented company, the SC does not need to keep stocks. The favourable debtors' days could be due to the good credit control measures implemented by the SC. 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	[	1.16 Times	]
Current Ratio	:	Unfavourable	[	1.16 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	:	Unfavourable	[	<71.47 Times>	]
Gearing Ratio	:	Favourable	[	0.58 Times	]
The SC incurred losses in the year. It did not generate sufficient income to service its interest. If the situation does not improve, the SC may be vulnerable to default in servicing the interest. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.
Overall Assessment :
Although the SC's turnover increased its profits however showed a reverse trend. The losses could be due to the management's failure to maintain its competitiveness in the market. 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's interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. The SC as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.
Overall financial condition of the SC : LIMITED

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 2001, the SC is a Private Limited company, focusing on wholesale of petrochemical products. Having been in the industry for over a decade, the SC has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. 

Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. Being a small company, the SC's business operation is supported by 6 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 higher turnover, the SC suffered pre-tax losses which reflected a highly competitive business environment. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. However, 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. Being a lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at USD 212,936, the SC should be able to maintain its business in the near terms. 

Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. 

The SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts. 

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.

PETROCHEM ASIA PTE. LTD.

Financial Year End	2012-12-31	2011-12-31	2010-12-31
Months	12	12	12
Consolidated Account	Company	Company	Company
Audited Account	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES
Financial Type	FULL	FULL	FULL
Currency	USD	USD	USD
TURNOVER	35,420,942	19,525,078	15,481,559
Other Income	12,024	4,116	-
	----------------	----------------	----------------
Total Turnover	35,432,966	19,529,194	15,481,559
Costs of Goods Sold	<34,799,896>	<18,877,162>	<15,029,664>
	----------------	----------------	----------------
Gross Profit	633,070	652,032	451,895
	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	<615,773>	158,642	2,373
	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	<615,773>	158,642	2,373
Taxation	22,431	<14,574>	736
	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	<593,342>	144,068	3,109
	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	752,224	608,156	605,047
	----------------	----------------	----------------
As restated	752,224	608,156	605,047
	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	158,882	752,224	608,156
	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	158,882	752,224	608,156
	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Lease interest	1,834	-	-
Trust receipts	6,663	26,531	52,340
	----------------	----------------	----------------
	8,497	26,531	52,340

BALANCE SHEET

PETROCHEM ASIA PTE. LTD.

ASSETS EMPLOYED:
FIXED ASSETS	232,472	102,603	154,247
	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	232,472	102,603	154,247
CURRENT ASSETS
Trade debtors	281,509	76,204	282
Other debtors, deposits & prepayments	85,666	61,475	46,158
Amount due from related companies	-	430,310	1,441,917
Cash & bank balances	154,814	273,540	408,396
	----------------	----------------	----------------
TOTAL CURRENT ASSETS	521,989	841,529	1,896,753
	----------------	----------------	----------------
TOTAL ASSET	754,461	944,132	2,051,000
	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	126,354	72,576	31,393
Other creditors & accruals	95,075	27,641	23,321
Hire purchase & lease creditors	31,360	-	-
Bill & acceptances payable	-	-	1,311,013
Amounts owing to related companies	196,854	-	-
Provision for taxation	-	14,574	-
	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	449,643	114,791	1,365,727
	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	72,346	726,738	531,026
	----------------	----------------	----------------
TOTAL NET ASSETS	304,818	829,341	685,273
	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	54,054	54,054	54,054
	----------------	----------------	----------------
TOTAL SHARE CAPITAL	54,054	54,054	54,054
RESERVES
Retained profit/(loss) carried forward	158,882	752,224	608,156
	----------------	----------------	----------------
TOTAL RESERVES	158,882	752,224	608,156
	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	212,936	806,278	662,210
LONG TERM LIABILITIES
Lease obligations	91,882	-	-
Deferred taxation	-	23,063	23,063
	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	91,882	23,063	23,063
	----------------	----------------	----------------
	304,818	829,341	685,273
	=============	=============	=============

FINANCIAL RATIO

PETROCHEM ASIA PTE. LTD.

TYPES OF FUNDS
Cash	154,814	273,540	408,396
Net Liquid Funds	154,814	273,540	<902,617>
Net Liquid Assets	72,346	726,738	531,026
Net Current Assets/(Liabilities)	72,346	726,738	531,026
Net Tangible Assets	304,818	829,341	685,273
Net Monetary Assets	<19,536>	703,675	507,963
BALANCE SHEET ITEMS
Total Borrowings	123,242	0	1,311,013
Total Liabilities	541,525	137,854	1,388,790
Total Assets	754,461	944,132	2,051,000
Net Assets	304,818	829,341	685,273
Net Assets Backing	212,936	806,278	662,210
Shareholders' Funds	212,936	806,278	662,210
Total Share Capital	54,054	54,054	54,054
Total Reserves	158,882	752,224	608,156
LIQUIDITY (Times)
Cash Ratio	0.34	2.38	0.30
Liquid Ratio	1.16	7.33	1.39
Current Ratio	1.16	7.33	1.39
WORKING CAPITAL CONTROL (Days)
Stock Ratio	0	0	0
Debtors Ratio	3	1	0
Creditors Ratio	1	1	1
SOLVENCY RATIOS (Times)
Gearing Ratio	0.58	0.00	1.98
Liabilities Ratio	2.54	0.17	2.10
Times Interest Earned Ratio	<71.47>	6.98	1.05
Assets Backing Ratio	5.64	15.34	12.68
PERFORMANCE RATIO (%)
Operating Profit Margin	<1.74>	0.81	0.02
Net Profit Margin	<1.68>	0.74	0.02
Return On Net Assets	<199.23>	22.33	7.98
Return On Capital Employed	<180.64>	22.33	7.98
Return On Shareholders' Funds/Equity	<278.65>	17.87	0.47
Dividend Pay Out Ratio (Times)	0.00	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.62
UK Pound	1	Rs.100.84
Euro	1	Rs.84.98

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.