MIRA INFORM REPORT

Report Date :

02.02.2013

IDENTIFICATION DETAILS

Name :	KG CHEMICAL CORPORATION
Registered Office :	429-1, Okgil-dong, Sosa-gu, Bucheon-si, Gyeonggi-do, Korea 422-080
Country :	South Korea
Financials (as on) :	30.09.2012
Date of Incorporation :	31.12.1954
Com. Reg. No.:	130-81-09693
Legal Form :	Listed Company
Line of Business :	Manufacture of Composite Fertilizers
No. of Employees :	254

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Exist

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)
South Korea	A1	A1

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

SOUTH KOREA - ECONOMIC OVERVIEW

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

Source : CIA

Basic Information

Company Name	KG CHEMICAL CORPORATION (Korean Company Name : “KG케미칼(주)”)
Registered Address	429-1, Okgil-dong, Sosa-gu, Bucheon-si, Gyeonggi-do, Korea
Zip Code	422-080
Tel	+82-2-2680-4114
Fax	+82-2-2680-4328
E-mail	jwkim@kgchem.co.kr;edward@kgchem.co.kr
Website	www.kgchem.co.kr
Trading Address	Rm.603, Pangyo TechnoValley U-Space, 607, Sampyeong-dong, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea
Tel	+82-2-2680-4114
Fax	+82-2-2680-4328
Other Address-Incheon Factory	108B-4L, Namdong Industrial Complex, 658-1, Gojan-dong, Namdong-gu, Incheon, Korea
Tel	+82-32-819-0147
Fax	+82-32-821-0078
Other Address-Onsan Factory	220, Ijin-ri, Onsan-eup, Ulju-gun, Ulsan, Korea
Tel	+82-52-231-1710
Fax	+82-52-231-1719
Other Address-Jeju Factory	407-14, Geumneung-ri, Hallim-eub, Jeju-si, Jeju-do, Korea
Tel	+82-64-773-2020
Fax
Other Address-Seosan Factory	936-9, Hwagok-ri, Daesan-eup, Seosan-si, Chungcheongnam-do, Korea
Type	Export/Import
Industry	Manufacture of Composite Fertilizers
Main Business	Composite Fertilizer, Concrete Admixture
Established (mm/dd/yyyy)	12/31/1954

The Subject owns Bucheon factory(217,860.00㎡), Onsan Factory(194,509.11㎡) and Jeju Factory(10,091.70㎡).

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Nitrogen Phosphorous Potassium Mixtures NPK(10171605)
Sell	Organic fertilizers and plant nutrients(10171500)
Sell	Flocculents(47101608)
Sell	Cement accelerators(12162302)
Sell	Concrete and mortars(30111500)
Sell	Chemical fertilizers and plant nutrients(10171600)

CEO’s

Name	Kwak Jae-Sun
Address
Date of Birth	01/15/1959
Title	Chairman & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

55,808,245,000

Employees

254

Formation

Listed Company (Korea Stock Exchange : 001390) as of 08/1989

A Company of KG Chemical Group

Bank Details

Korea Development Bank

Corporate Registered No.

124311-0008999

Business Registered No.

130-81-09693

Permit & Licenses

Int’l Trade No.: 438988

Shareholder Position

Name	Shares	%
KWAK JAE-SUN	2,230,957	20.85
KIM YOUNG-RAN	111,430	1.04
KWAK JUNG-HYUN	225,315	2.11
KWAK HYE-EUN	60,856	0.57
KG CORPORATION(124311-0044737)	886,752	8.29
KG ZEROIN CO., LTD.(110111-1269540)	655,363	6.12
SUN HYUN FOUNDATION(12122-0001955)	125,590	1.17
TREASURY STOCK	583,916	5.46
OTHERS	5,819,821	54.39
TOTAL	10,700,000	100.00

Company History

02/17/2011 Decide to acquire KG BATECH CO., LTD.(230111-0114501) as of 03/18/2011

12/2006 Opened first KG directly-run gas station in Naechon

10/2006 Completed compound fertilizer plant of KGO (Tianjin Corporation, China)(annual production of 150,000 tons)

09/2006 Opened first ‘ORFE’, the specialty store for environment-friendly organic Agricultural products

10/2005 Established KG Energy Co., Ltd. (Sihwa: 892,000 tons of steam / 70,900 MW of electric power)

08/2005 Established KGO (Tianjin Corporation, China)

08/2005 Established KG Vatech Co., Ltd. Specializing in bio-chemicals (Ulsan, annual production of 115 tons)

06/2005 Produced concrete compound (Inchon, annual production of 30,000 tons)

10/2004 Newly established high-tech ceramic bead plant (Ulsan, annual production of 300 tons)

09/2004 Newly established organic solid fertilizer plant (Bucheon, annual production of 60,000 tons)

09/2004 Established the automation facilities in liquid fertilizer plant (Bucheon, annual production of 10,000 tons)

02/2004 Completed OEM fertilizer plant (B.B.) (Seowan, annual production of 50,000 tons)

10/2003 Completed Corporate Closing Procedure after paying 96,400,000,000

09/2003 Changed the corporate name to KG Chemical Corporation, inaugurated Chairman Kwak Jae-sun

08/2003 Changed the company name to KG Chemical Corporation.

07/2003 Changed Corporate Closing Procedure by the Court

02/2001 Newly established organic solid fertilizer plant (Ulsan, annual production of 30,000 tons)

09/1999 Started the Corporate Closing Procedure by the Court

08/1998 Enlarged PNS factory to increase production.(Onsan 60,000ton/year)

04/1998 Separated of water treatment, Liquid&Soluble Fertilizer department.

06/1997 Concluded technical introduction agreement for exclude Dioxin with Marker in Germany.

06/1997 Completed construction of BB fertilizer plant.(Jaeju 50,000ton/year)

03/1997 Completed construction of BB fertilizer plant.(Onsan 40,000ton/year)

01/1997 Sparated processing company of production department.

06/1996 Enlarged PNS factory to increase production.(Onsan 50,000ton/year)

04/1994 Completed construction of PACS plant.(Onsan 15,000ton/year)

05/1993 Completed construction of PNS plant.(Onsan 8,500ton/year)

05/1992 Completed construction of Kyunggi Bulk Terminal in Onsan.(Berthing capacity:30,000DWT)

01/1991 Began production of Clean-Magnesium Hydroxide. (Buchon, Onsan: 45,000ton/year)

09/1990 Completed construction of compaction plant. (Onsan: SOP 10,000ton/year, BB fertilizer 20,000ton/year)

08/1989 Opened the enterprise to the public.

03/1988 Enlarged SOP plan. (Onsan 67,000ton/year) (Total capacity: 90,000ton/year)

01/1986 Began production of MAG-SUL.(Buchon 25,000ton/year)

02/1985 Completed construction of compound fertilizer plant. (Onsan 90,000ton/year)

11/1982 Began production of SOP.(Onsan 22,500ton/year)

02/1977 Began production of compound fertilizer.(Buchon 105,000ton/year)

12/1973 Concluded collaboration contract with Mitsubishi Corporation & Ildong FC.

06/1966 Began production of FMP.(Buchon 50,000ton/year)

09/1958 Began production of Limeston powder fertilizer.

12/1955 Began production of Calcium Hydroxide.

12/1954 Founded Company

Management

Job Description	Title	Name	Nationality	Date of Birth	Education
Chairman & CEO	Mr.	Kwak Jae-Sun	Korean	1959.01.15	-
Vice President	Mr.	Jang Ji-Hwui	Korean	1964.08.30	Inha University, Korea
Executive Director	Mr.	Eom Ki-Min	Korean	1965.04.	Sungsil University, Korea
Outside Director	Mr.	Kim Yong-Jik	Korean	1955.11.	-
Auditor	Mr.	Kang Won-Kook	Korean	1962.07.	-

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)09/2012	239,024,613,924	475,170,477,522	-766,269,625
(*)2011	278,260,696,355	486,757,586,867	-6,528,365,848
(*)2010	263,124,281,769	408,839,384,801	3,720,859,611
2009	266,805,076,655	348,960,618,395	8,492,774,504
2008	303,233,116,234	340,586,810,851	5,903,054,600
2007	243,302,739,676	195,197,832,741	-3,695,607,229
2006	226,640,136,977	198,510,487,718	11,300,162,414
2005	227,202,444,066	179,934,912,795	9,639,921,857
2004	196,530,577,957	151,956,611,146	6,463,251,114
2003	140,013,369,392	131,518,710,018	18,794,913,014

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

Financial Description

Authorized Capital(KRW)	75,000,000,000
Paid-Up Capital(KRW)	55,808,245,000
Total Issues Shares	10,700,000

Balance Sheet
Unit : Korean Won	01/01/2012~09/30/2012	As of 12/31/2011	As of 12/31/2010
Total Assets	475,170,477,522	486,757,586,867	408,839,384,801
Current Assets	155,807,263,098	147,489,540,683	144,847,289,133
Cash & Cash Equivalents	3,891,544,008	4,845,839,894	5,688,115,303
Trade Receivables	90,624,821,187	61,316,807,051	62,188,204,693
Short-Term Loans	1,463,263,476	2,884,865,378	2,583,554,160
Other Receivables	5,862,837,976	2,940,251,507	3,150,472,808
Accrued Income	357,739,350	216,857,289	369,043,371
Advance Payments	5,326,987,786	6,482,225,398	5,134,697,292
Prepaid Expenses	1,229,944,318	502,664,323	64,646,960
Inventories	47,031,848,594	67,266,302,000	65,577,588,564
Current Non-Financial Instruments	18,276,403	1,033,727,843	90,965,982
Non-Current Assets	319,363,214,424	339,268,046,184	263,992,095,668
Non-Current Financial Instruments	90,688,646	455,895,685	647,555,725
Marketable Financial Instruments	1,398,220,000	1,398,220,000	4,780,561,000
Held-to-Maturity Financial Assets	254,610,000	255,088,776	11,272,317,461
Investment_Related Companies	171,324,549,884	191,515,126,636	101,915,847,612
Investment_Related Companies	1,522,344,053	1,533,068,825	3,091,547,156
Tangibles	37,982,216,899	36,019,139,174	38,425,778,730
Intangibles	2,098,430,866	2,565,411,975	2,973,498,096
Non-Current Assets to be Sold	102,355,894,165	102,436,135,202	97,839,180,377
Guarantees	2,336,259,911	3,089,959,911	3,045,809,511
Total Liabilities	299,830,052,574	311,748,183,055	224,220,092,115
Current Liabilities	227,311,359,274	221,789,256,651	173,516,237,096
Trade Payables	18,384,018,972	17,066,762,664	17,449,518,092
Short-Term Borrowings	179,625,924,813	182,457,202,590	144,136,804,597
Account Payables	15,805,931,912	8,260,949,496	9,029,960,202
Advance Receipts	3,744,572,061	1,061,378,405	578,378,138
Withholdings	101,083,938	101,393,558	238,073,416
Accrued Expenses	544,671,199	549,812,562	391,849,626
Accrued Income Tax	-	-	1,041,454,615
Current Financial Debts	105,156,379	105,156,379	107,156,379
Current Portion of Long-Term Debts	9,000,000,000	8,000,000,000	543,042,031
Provisions	-	4,160,000,000	-
Other Non-Current Financial Debts	-	26,600,997	-
Non-Current Liabilities	72,518,693,300	89,958,926,404	50,703,855,019
Provision for Severance & Retirement	585,770	-	-
Long-Term Borrowings	50,000,000,000	59,000,000,000	25,000,000,000
Deferred Income Tax Credit	19,408,402,501	19,824,080,286	21,537,266,661
Finance Guarantee Debts	2,485,803,849	3,090,766,175	3,820,488,358
Derivatives	139,612,199	7,655,279,943
Other Non-Current Liabilities	484,288,981	388,800,000	346,100,000
Capital Stock	55,808,245,000	55,808,245,000	55,808,245,000
Capital Surplus	4,866,431,284	4,866,431,284	4,893,007,452
Profit Surplus	120,692,409,125	123,037,812,796	133,579,120,261
Others	-6,026,660,461	-8,703,085,268	-9,658,867,844
Installments	-	-	-2,212,183
Total Equity	175,340,424,948	175,009,403,812	184,619,292,686
Liab. & Shareholder’s Equity	475,170,477,522	486,757,586,867	408,839,384,801

Income Statement
Unit : Korean Won	01/01/2012~09/30/2012	As of 12/31/2011	As of 12/31/2010
Sales	239,024,613,924	278,260,696,355	263,124,281,769
Cost of Sold Goods	210,864,519,878	240,939,080,443	222,335,605,950
Gross Profit	28,160,094,046	37,321,615,912	40,788,675,819
Selling & Admin. Expenses	24,843,406,852	28,839,982,061	28,374,939,619
Other Operating Income	3,569,363,791	1,722,945,591	3,033,598,111
Other Operating Expenses	2,446,410,095	3,998,160,059	1,181,227,894
Operating Income	4,439,640,890	6,206,419,383	14,266,106,417
Finance Income	9,524,257,461	6,013,097,925	3,408,852,328
Finance Expenses	10,541,778,128	13,606,071,342	8,940,707,133
Non-Operating Income	-4,537,559,387	-6,614,004,768	-1,228,167,427
Income Before Taxes	-1,115,439,164	-8,000,558,802	7,506,084,185
Income Taxes Expenses	-349,169,539	-1,472,192,954	3,785,224,574
Net Income	-766,269,625	-6,528,365,848	3,720,859,611

Cash Flows
Unit : Korean Won	01/01/2012~09/30/2012	As of 12/31/2011	As of 12/31/2010
Operating Activities Cash Flows	-3,969,435,423	-5,620,156,240	4,886,606,708
Net Income	-766,269,625	-6,528,365,848	3,720,859,611
Adjustment	7,279,104,993	18,890,609,724	14,771,670,989
Changes in Asset/ & Liability	-1,372,905,176	-9,325,278,597	-2,947,673,389
Interests Received	498,647,754	1,302,096,803	779,822,382
Interests Paid	-9,258,843,830	-10,389,956,661	-7,338,070,639
Income Taxes	-349,169,539	430,738,339	-4,100,002,246
Cash Flows from Investing	14,455,543,339	-69,938,799,080	-51,426,576,623
Cash Flows from Financing	-11,440,403,802	74,501,862,364	46,878,124,869
Increase/Decrease in Cash	-954,295,886	-842,275,409	338,154,954
Cash at the Beginning of Year	4,845,839,894	5,688,115,303	5,349,960,349
Cash at the End of Year	3,891,544,008	4,845,839,894	5,688,115,303

Products, Technologies, Services Description

Main Products & Services

Bio-Agr

Compound fertilizer

Bulk blending fertilizer(made-to-order)

Fertigation & Soilless culture fertilizer

Slow-release fertilizer

Phosphate fertilizer

Potassium fertilizer

Construction Materials

POWERCON is a PNS(polynaphthalene sulfonate) type superplasticizer which has made it possible to make high-performance concrete. By using POWERCON in making concrete, the properties of fresh concrete(workability) and hardened concrete(compressive strength and durability) improve..

Environmental

Started to supply Mg(OH)2 in 1991, which is most economical Flue Gas Desulfurization, Poly Aluminium Silicate Sulfate(PASS) in 1992, and more updated Poly Aluminium Chloride Silicate(PACS) in 1993.

Over 44 % of the doestic market share in this coagulant field at present. and 45% of the market share in the Mg(OH)2 field.

Detailed Products Spec.

The Subject has been producing and supplying the compounded fertilizer which is exclusively used for fruit trees and vegetables.

Since 1996, The Subject, as a company in the fertilizer industry with the market share by 40%, has also made a contribution to boost the farmer’s income and keep remaining fertile soil by developing and supplying the customized, environment-friendly B.B. that is suitable

for soil and the crops and eventually enables environmental farming and precise fertilization.

Plant	Description	Capacity
Bucheon	Compound Fertilizer	120,000ton
	Bulk Blending	50,000ton
	Slow Release Fertilizer	25,000ton
Onsan	Compound Fertilizer	120,000ton
	Bulk Blending	50,000ton
	Compaction	30,000ton
	SOP	90,000ton
	MAG-SUL	7,500ton
	Organic Pellet	40,000ton
Jaeju	Bulk Blending	50,000ton

After completing POWERCON plant in 1993, The Subject has been keeping the largest production capacity over 90 thousand ton per year in the world.

Technologies Acquired

Trade Partners & Competitors

Suppliers	CAPRO CORPORATION(110111-0111825) POSCO(174611-0000741) OCI COMPANY LTD.(174611-0000981) SK ENERGY CO., LTD.(110111-3710385)
Customers	NONGHYUP GYUNGBUK APPLE ASSOCIATION DONGBU HANNONG CHEMICAL POONGNONG CHOBI CO.,LTD NAMHAE CHEMICAL CORPORATION Sales Channel Nonghyup: The Subject sells its products to Nonghup’s local branches through Nonghyup. Factory=> Local Nonghyup Branches=>Farmers Factory=> Customers Export: Sells through int’l trading companies by local L/C. Payment Condition: Nonghyup: Cash within 91 days Others: Normally cash within 3 Months to 6 Months
Competitors	NAMHAE CHEMICAL DONGBU HANNONG CHEMICAL POONGNONG CHOBI The Subject’s fertilizer is ranked as 2nd player next to NAMHAE CHEMICAL in terms of domestic market share. JMC The Subject’s CTC is ranked the 1st player in terms of domestic market share. The domestic market share of the Subject’s POWERCON is about 60%.

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Affiliates-Domestic

JEIL BUNSEOK CO., LTD.,(124311-0041535) (33.00% held by the subject company) KG L&B CO., LTD.(181211-0009289) (99.95% held by the subject company) KG ENGINEERING CO., LTD. (98.00% held by the subject company) KC CORPORATION(124311-0044737) SEIL ENGINEERING & CONSTRUCTION CO., LTD.(110111-0393069) KG BATECH CO., LTD.(230111-0114501) (19.67% held by the subject company) KG ENERGY CO., LTD.(135011-0075404) (69.95% held by the subject company) KG JEJU CO., LTD.(220111-0058016) (100.0% held by the subject company) KG YELLOWCAP CO., LTD.(110111-2092205) KG INICIS CO., LTD.(110111-1602667) KG MOBILIANS CO., LTD.(110111-1911050)

Subsidiary

KG DYWELL INC. 429-1, OKGIL-DONG, SOSA-GU, BUCHEON-SI, GYEONGGI-DO, KOREA TEL:+82-2-2680-4515~8 FAX:+82-2-2680-4519 KG EZCON 429-1, OKGIL-DONG, SOSA-GU, BUCHEON-SI, GYEONGGI-DO, KOREA TEL:+82-2-2680-4410~7 FAX:+82-2-2680-4419 KG ASTECH 429-1, OKGIL-DONG, SOSA-GU, BUCHEON-SI, GYEONGGI-DO, KOREA TEL:+82-2-2680-4381~3 FAX:+82-2-2680-4589 KG ENGINEERING 429-1, OKGIL-DONG, SOSA-GU, BUCHEON-SI, GYEONGGI-DO, KOREA TEL:+82-2-2680-4541~4 FAX:+82-2-2680-4559 KG ALMATERA 429-1, OKGIL-DONG, SOSA-GU, BUCHEON-SI, GYEONGGI-DO, KOREA TEL:+82-2-2680-4221~3 FAX:+82-2-2680-4209 KG BULK TERMINAL 143-1, SANAM-RI, ONSAN-EUP, ULJU-GUN, ULSAN, KOREA TEL:+82-52-239-1981~2 FAX:+82-52-238-7469

Sales by Region

(Activity & Markets)

Sales/ Unit :Mil KRW	09/2012	2010	2009
Export	56,955	78,938	51,692
Domestic	166,829	199,323	211,432
Total	239,025	278,261	263,124

The Subject imports the raw materials from China, Malaysia, Russia, Israel and Jordan.

Court Action

Case No.	Court	Plaintiff(s)/ Creditor(s)/ Applicant(s)	Defendant(s)/ Debtor(s)/ Respondent(s)	Cause	Amount (Thousand KRW)	Status
		Jeil Bunseok Co., Ltd.	The Subject Company & Others(9)	Refund for the Inappropriiated Profit	1,439,657	Preparing
		Kwon Hoi-Seob & Others(1)	The Subject Company	Compensation for Damages	4,169,665	Documens Proceeding
		KG Astech Co., Ltd.	The Subject Company	Compensation for Damages	878,000	Preparing
		Jeil Bunseok Co., Ltd.	The Subject Company	Compensation for Damages	351,270	Preparing
		Kwon Hoi-Seob & Others(3)	The Subject Company & Others(7)	Compensation for Damages	665,178	Preparing
		Kwon Hoi-Seob	The Subject Company & Others(6)	Compensation for Damages	378,149	The Subject won and 2nd round is proceeding.
		Kwon Hoi-Seob	Republic of Korea & Others(8)	Compensation for Damages	100,000	The Subject won and 2nd round is proceeding.
		KG Daiwel Co., Ltd.	The Subject Company & Others(2)	Compensation for Damages	100,000	Filed
		Kwon Hoi-Seob	The Subject Company & Others(2)	Confirmation on Shareholdership	-	Filed
		Lee Eun-Mi	The Subject Company & Others(4)	Compensation for Damages	1,383,000	The Subject won and 2nd round is proceeding.
		Kwon Hoi-Seob	The Subject Company	Stopping the operation	200,000	The Subject won and 2nd round is proceeding.
		Lee Eun-Mi	Jeil Bunseok Co., Ltd., & Others(4)	Cancellation on the decision at general Meeting	-	The Subject won and 2nd round is proceeding.
		Kwon Hoi-Seob	The Subject Company & Others(1)	-	-	The Subject was defeated and 2nd round is proceeding.
		Kwon Hoi-Seob & Others(4)	Nonghyup	Refund for the Inappropriiated Profit	1,151,000	The Subject was defeated and 2nd round is proceeding.
		Dau Technology Co., Ltd.	The Subject Company	Claim for Receivables	25,988	1st Round is proceeding
		CJ Chemical Co., Ltd.	The Subject Company & Others(1)	Claim for Loan	106,000	Proceeding
		KOREA CREDIT GUARANTEE FUND(114271-0001636)	The Subject Company & Others(1)	Fraud Activities	594,000	1st Round is proceeding
		Eco Guard Co., Ltd.	The Subject Company	Not Existing the Debts	78,000	1st Round is proceeding

News Clipping

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FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.32
UK Pound	1	Rs.84.60
Euro	1	Rs.72.63

INFORMATION DETAILS

Report Prepared by :

PRL

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.