MIRA INFORM REPORT

Report Date :

16.02.2013

IDENTIFICATION DETAILS

Name :	HERSIL S.A. LABORATORIOS INDUSTRIALES FARMACEUTICOS
Registered Office :	RUC 20100060150 Los Frutales 220, Urb. Monterrico, Ate, Lima,3
Country :	Peru
Financials (as on) :	31.12.2008
Date of Incorporation :	17.05.1965
Legal Form :	Joint-Stock Company
Line of Business :	Imports, represents and distributes pharmaceutical and veterinary products in general.
No. of Employees :	949

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

Maximum Credit Limited :	USD100,000.= Dollars
Status :	Satisfactory
Payment Behaviour :	No complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
Peru	A2	A2

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

Peru - ECONOMIC OVERVIEW

Peru's economy reflects its varied geography - an arid coastal region, the Andes further inland, and tropical lands bordering Colombia and Brazil. Important mineral resources are found in the mountainous and coastal areas, and Peru's coastal waters provide excellent fishing grounds. The Peruvian economy has been growing by an average of 6.4% per year since 2002 with a stable/slightly appreciating exchange rate and low inflation. Growth in 2010 was close to 9% and in 2011 almost 7%, due partly to a leap in private investment, especially in the extractive sector, which accounts for more than 60% of Peru's total exports. At 3.4%, inflation in 2011 exceeded somewhat the upper range of the Central Bank's 1%-3% target. Despite Peru's strong macroeconomic performance, dependence on minerals and metals exports and imported foodstuffs subjects the economy to fluctuations in world prices. Poor infrastructure hinders the spread of growth to Peru's non-coastal areas. Peru's rapid expansion coupled with cash transfers and other programs have helped to reduce the national poverty rate by 23 percentage points since 2002. A growing number of Peruvians are sharing in the benefits of growth but inequality persists posing a challenge for the new Ollanta HUMALA administration, which has championed indigenous and local disenfranchised groups. The administration seems committed to Peru's free-trade path. Since 2006, Peru has signed trade deals with the US, Canada, Singapore, China, Korea, Mexico, and Japan, concluded negotiations with the European Free Trade Association and Chile, and begun trade talks with Central American countries and others. The US-Peru Trade Promotion Agreement entered into force 1 February 2009, opening the way to greater trade and investment between the two economies. Trade agreements with South Korea, Japan, and Mexico also were signed in 2011. Although Peru has continued to attract foreign investment, political disputes and protests may impede development of some projects related to natural resource extraction.

Source : CIA

IDENTIFICATION

CORRECT COMPANY NAME

HERSIL S.A. LABORATORIOS INDUSTRIALES FARMACEUTICOS

TRADE NAME

HERSIL S.A. LAB.IND.FARMAC.

TAXPAYER REGISTRATION

RUC 20100060150

MAIN ADDRESS

Los Frutales 220, Urb. Monterrico, Ate,

POSTAL CODE

Lima,3

PROVINCE / DEPARTAMENT

Lima / Lima

COUNTRY

PERU

TELEPHONE

(511) 7133333 - 4359377 - 4359604

E-MAIL

msd@hersil.com.pe/ aaq@hersil.com.pe

WEB

www.hersil.com.pe

COMMENTS

No telephone numbers were provided in your order to expedite our investigation.

SUMMARY
Date of foundation	1965
Capital stock	S/.7,171,544.= Nuevos Soles
Shareholders' equity	31,733,627.00 Nuevos Soles (31DEC2008)
Annual revenues	US$ 31,888,100.32 Nuevos Soles (31DEC2008)
Profits (loss)	9,041,530.00 Nuevos Soles (31DEC2008)
permanent employees	949
Chief Executive	SILVA TAPIA, GUILLERMO
Disposition	POOR (Politely provided very few information).
Payments policy	Usually to terms/good
Credit (**)	Risk is Minimal, Solvent, Satisfactory Financial Situation.

CREDIT OPINION

Requested credit	Maximum
Suggested credit (*)	USD100,000.= Dollars
(*) After analyzing different factors and other opinions.

LEGAL BACKGROUNDS

LEGAL STATUS	Joint-Stock Company
DATE OF INCORPORATION	17MAY1965
STARTING DATE	17/05/1965
PLACE OF REGISTRY	Lima
NOTARY OFFICE	Julio Espino P.
DURATION	Perpetual
REGISTRATION	Entry 1, Pages 479, Volume 244 (06/08/1965)
INITIAL CAPITAL	S/.2,000,000.= Soles Oro (old currency)
CURRENT PAID-IN CAPITAL	S/.7,171,544.= Nuevos Soles
LAST CAPITAL INCREASE	May 2008
SHAREHOLDERS EQUITY	31,733,627.00 Nuevos Soles (31DEC2008)
CLASS OF SHARES	Registered
LISTED AT STOCK EXCHANGE	No
SHARE VALUE	S/.1.= Nuevo Sol
CURRENT EXCHANGE RATE (US$)	S/.2.57.= per USD.1.=
COMMENTS	The Company has been incorporated in the Sales Tax Withholding Agent System (R.S.037-2002) as from June 1, 2002. It operates under the following registries: - Industrial Registry No. 10700 - Patent Register No. 14867 - Sale Register No. 016172 - Employer Registration No. 164-33954 The 1,10% of the Company's shares is controlled by unknown minority shareholders.

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
SILVA TAPIA, GUILLERMO	Executive President	38.90%	04.04.98
SILVA TAPIA, ENRIQUE DAVID	Director	16.80%	01.04.98
SILVA TAPIA, CARLOS	Director	16.80%
SILVA TABUSSO, GUILLERMO MARTIN	Executive Manager		01.04.98
SILVA TAPIA, JOSE FELIX	Executive Manager	16.80%	01.04.98
SILVA MARTINOT, JOSE LUIS	Deputy General Manager
SILVA LA TORRE, CARLOS FELIPE	Production Manager
TEULLEC, PATRICK	Customer Service Manager
MARTINOT SEGURA, CRISTOBAL ERNESTO	Commercial Manager
SILVA LINARES, JOSE CARLOS	Finance Manager
SILVA DELLAHA, MARC	Export Manager
ALTAMIRANO QUINTANA, ANGEL EDUARDO	General Accountant
ROJAS TRUE, CARLOS ENRIQUE	Representative
RAMIREZ VASQUEZ, GINO RAPHAEL	Representative
BENITEZ ZAVALETA, ANTONIO	Representative
SHIMABUKU AZATO, MANUEL LUIS	Representative
SILVA TAPIA, JUAN LUIS (SUCESION)	Shareholder	9.60%	01.04.98

WHO IS WHO?

SILVA TAPIA, GUILLERMO

NATIONALITY

Peruvian

D.O.B.

05FEB1926

ID

DNI 08786527

DOMICILE

Paseo de la República 5453, Miraflores , Lima ,Lima

TELEPHONE

447.3512

TAX ID

10087865270

SILVA TAPIA, ENRIQUE DAVID

NATIONALITY

Peruvian

D.O.B.

14FEB1927

ID

DNI 08799520

DOMICILE

Pardo 257 Dpto.302, Miraflores , Lima ,Lima

TAX ID

10087995203

SILVA TAPIA, CARLOS

NATIONALITY

Peruvian

D.O.B.

05JUL1931

ID

DNI 09375471

DOMICILE

Reinaldo de Vivanco 395, Surco , Lima ,Lima

TELEPHONE

372.4900

TAX ID

10093754714

SILVA TABUSSO, GUILLERMO MARTIN

NATIONALITY

Peruvian

D.O.B.

18JUN1967

ID

DNI 09152361

DOMICILE

La Compuerta s/n Mz.A, Lt.6

TELEPHONE

308.2578

TAX ID

10091523618

SILVA TAPIA, JOSE FELIX

NATIONALITY

Peruvian

D.O.B.

09AUG1934

ID

DNI 08803803

TAX ID

10088038032

SILVA MARTINOT, JOSE LUIS

NATIONALITY

Peruvian

D.O.B.

23FEB1966

ID

DNI 08770302

TAX ID

10087703024

PARTICIPATED IN

COMPANY	TITLE	COUNTRY	YEAR / REF
ADEX		PERU	2008

BUSINESS HISTORY

Charter Members: José Félix, Juan Luis, Miguel Angel, Guillermo, Julio, César, Enrique and Carlos Silva Tapia; José Andreu Villavicencio, Otto León Zagaceta, Francisco Javier Sánchez Buitrón and Alfredo Ode Howitt. They implemented an ambitious project to supply preferably natural medicine.
 
Being aware that the global trend is towards natural medicines, HERSIL SA LABORATORIOS INDUSTRIALES FARMACEUTICOS embarked on this adventure as from 1995. Since then, it has entered into strategic alliances both in Peru and abroad, in order not only to promote Peruvian products, but to conduct scientific studies that support each of them.
 
In 1995 it signed a Joint Venture with TRACKER SA for extraction, manufacturing and marketing of natural products, among which stands out the cat's claw Oscar Schuler Egg.
 
In 1996 HERSIL formed a joint venture with the Ashaninka Community to join their ancestral knowledge in the use of traditional medicine with the experience of the firm in the marketing of natural products and producing freeze-dried cat's claw under the "Vive" brand. By this agreement the Ashaninkas cultivate and sell them the product, which benefits these communities with 50% of the profits generated.
 
In 1997, a new Joint Venture Agreement was entered into with UNIVERSIDAD AGRARIA, a leading research institution, to sell a complete line of natural products.
 
In July 1999, HERSIL was awarded the Certification GMP (Good Manufacturing Practices) by the DIRECCION DE MEDICAMENTOS, INSUMOS Y DROGAS-DIGEMID-(General Bureau of Medicines and Drugs - DIGEMID), meeting the Internaciotal Standards required by WHO for exporting medicines worldwide.
 
In July 1999 opened a new enclosed plant for the processes of storage, production and distribution, with an investment of US$ 2,000,000 .= Dollars.
 
On the other hand, in late 2008, Miguel Silva Tapia withdrew from the company, and his shares (1.09%) were distributed among the remaining shareholders in proportion to their contributions.

BUSINESS

SIC Classification
2 8 - CHEMICALS, PHARMACEUTICALS INDUSTRY AND ALLIED PRODUCTS. (Manuf.Pigments, Resins, Plastics, Serums, Perfums, Paints, Fertilizers, Explosives. Medicines.)

Main activity

The Company produces, imports, represents and distributes pharmaceutical and veterinary products in general.
Furthermore, it produces industrial inputs for bread-making and provides manufacturing services to third parties, and storage.
 
Operations are divided as follows:
 - Human Products
 - Veterinary Products (sometimes, upon request)
 - Natural Products of three lines: Vibe, La Molina and Schuler.
 - Social Support (basic medicines).
 - Generic Products
 - Industrial prodducts
 
Main products of the Human Line include, among other: Alergical, Cefasabal, Dilabron, Isorvide, Insuven, Gero Mucovit, Mucovit, Mucovit (drops), PVM Powder T-75 and Theophylline.
 
Some of the main products of the natural line are Cat's claw (uncaria tomentosa), maca, hercampuri (gentianella alborosea), sangre de grado (croton lechleri), chancapiedra (stone breaker - phyllanthus niruri), pasuchaca (geranium dielsianum).

Import

Yes

Country

Argentina, Canadaa, Chile, China, Colombia, Domican Republic, France, Germany, India, Ireland, Italy, Japan, Mexico, Holland, Spain, Sweden, UK, USA.

ANNUAL Imports In US$ (CIF)

YEAR	AMOUNT
2013	209,359.00
2012	1,817,443.00
2011	2,008,710.00
2010	1,763,671.00
2009	1,744,218.00
2008	1,681,313.00
2007	1,265,160.00
2006	1,217,607.00
2005	1,748,965.00
2004	2,200,357.00
2003	1,410,212.00

Export

Yes

COUNTRY

Chile, China, Australia, Japan, Singapore, Sweden, USA

Annual exports in US$ (FOB)

YEAR	AMOUNT
2012	2,443,006.00
2011	2,254,451.00
2010	1,677,519.00
2009	1,433,311.00
2008	708,372.00
2007	594,025.00
2006	249,177.00
2005	191,176.00
2004	352,137.00
2003	289,820.00

% CASH SALES / METHOD

05%

% Credit SALES / Terms

95% within 30 and 60 days

% Ventas exterior (Paises)

05%

% DOMESTIC PURCHASES

40%

% FOREIGN PURCHASES

60%

SELLING TerritorY

Domestic market - 95%

EMPLOYEES

949

LOCATION
PREMISES	Own
FLOORS	3
AREA	16,000 m2
OTHER PREMISES	Headquarters operate at the above address. They occupy the first and second floors of a three-story building. OTHER PREMISES: - Jr. Los Frailes 123, Urb. Santa Felicia, La Molina/Lima 12 - Pj. Ticino 160, Urb. Santa Anita (a una Cuadra del Ovalo de Santa Anita), Santa Anita, Lima 43 - Jr. Mariscal José de la Mar 377, Urb. El Pino (Mz. C, Lote 18), San Luis/Lima 30

Comments

It has an extensive client portfolio that is made up of 51% of private clients and 49% of institutional clients. Some of them include:
 - MINISTRY OF HEALTH
 - NATIONAL INSTITUTE OF SOCIAL SECURITY - ESSALUD
 
Main Distributors:
 - DISTRIBUIDORA ALBIS SA
 - DROGUERIA ALFARO SA
 - REPRESENTACIONES DECO SA
 
Main Clients and Services:
 - GRUNENTHAL PERUANA SA (manufacturing services)
 - MERCK PERUANA SA (Know How)
 - BAGO DEL PERU SA (Storage and distribution service)
 - UNIVERSIDAD NACIONAL AGRARIA LA MOLINA (Processing, industrialization and sale of natural products)
 - ABBOT LABORATORIOS SA
 - AC FARMA
 - AGROVET
 - COOPERACION TECNICA ALEMANA - GTZ
 - DIGEMID - MINSA
 - FARMINDUSTRIA SA
  - FARMACEUTICA DEL PACÍFICO SA
 - GARDEN HOUSE
 - M.G. ROCSA SA
 - MINISTRY OF HEALTH
 - NEWPHARM SA
 - NEW ZEALAND MILK PRODUCTS (PERU) SA
 - NOVARTIS
 - OVERSEAS BUSINESS CORPORATION
 - PFIZER SA
 - PROFARMA
 - ROCSA INTERNACIONAL
 - UNILEVER SAA
 - INDUSTRIAS PACOCHA SA
 
It should be mentioned that HERSIL operates under the GMP standards issued by the WHO. This entity ranks companies engaged in the pharmaceutical sector as per its good quality products.
Quality guaranted by experts who control exhaustively all the operations involved in the production, quality control, storage and distribution of products.

FINANCIAL INFORMATION

Interviewee(s)

Angel Altamirano Quintana

Position(s)

General Accountant

Disposition

POOR (Politely provided very few information).

Information provided

Mr. Altamirano was very busy and merely confirmed only specific data. He agreed to complete information once he has time, so in case of favorable answer, additional information will be sent, otherwise, consider this report definitive.
 
We have completed this report with data collected from third-party sources where no balance sheets or estimated accounting figures were available.
 
Latest available information kept in our databases is the Interim Balance Sheet as o November 30, 2010, as well as the Balance Sheet for the FY as of 31/12/2008, 31/12/2007 and 31/12/2006,expressed in Nuevos Soles. 

INTERIM BALANCE SHEET
Balance Sheet Date	30NOV2010
Type of balance sheet	Interim
Period	11 months
Currency	Nuevos Soles
Exchange Rate per US$	2.83
A S S E T S
Current Assets	77,994,113.00
Fixed	40,397,096.00
Total Assets	118,391,209.00
L I A B I L I T I E S
Current liabilities	44,774,331.00
Long term	14,575,114.00
S H A R E H O L D E R S'  E Q U I T Y
Total shareholders equity	59,041,764.00
Total liab. / Sh. equity	118,391,209.00
Sales	105,935,605.00
Profit (Loss)	17,066,100.00

R A T I O
Liquidity ratio	1.74	(Current assets / Current liabilities)
Debt-to-equity ratio	131.87 %	(Shareholders' equity / Current liabilities %)
Profitability ratio	16.11 %	(Profits / Sales %)
Working capital	33,219,782.00	(Current assets - Current liabilities)

BALANCE SHEET
Balance sheet date	31DEC2008	31DEC2007	31DEC2006
Type of balance sheet	Annual	Annual	Annual
Period	12 months	12 months	12 months
Currency	Nuevos Soles	Nuevos Soles	Nuevos Soles
Exchange rate per US$	3.14	2.98	3.2
A S S E T S
Current Assetsd	50,704,826.00	41,406,631.00	39,702,000.00
Fixed	28,087,223.00	16,819,693.00	7,090,000.00
Others		6,373,500.00	3,548,000.00
Total Assets	78,792,049.00	64,599,824.00	50,340,000.00
L I A B I L I T I E S
Current liabilities	35,461,039.00	26,365,150.00	28,650,000.00
Long term	11,597,383.00	12,977,577.00	4,720,000.00
S H A R E H O L D E R S'  E Q U I T Y
Total shareholders equity	31,733,627.00	25,257,097.00	16,970,000.00
Total Liab. / Sh. equity	78,792,049.00	64,599,824.00	50,340,000.00
Sales	100,128,635.00	87,634,851.00	72,042,000.00
Profit (Loss)	9,041,530.00	8,287,940.00	4,549,000.00

R A T I O
Liquidity ratio	1.43	Current assets / Current liabilities
Debt-to-equity ratio	89.49 %	(Shareholders' equity / Current liabilities %)
Profitability margin	9.03 %	(Profits / Sales %)
Working capital	15,243,787.00	(Current assets - Current liabilities)

FINANCIAL SITUATION

A-: SATISFACTORY
Taking into account the last Financial Statement as of 30/10/2010 and/or other factors analyzed, we believe that financial Situation of the Company is SATISFACTORY due to the following considerations:
- Liquidity Ratio is slightly adequate
- Working capital shows a slightly satisfactory margin
- Shareholders' equity covers moderately its liabilities 
- Economic results are satisfactory
- It is publicly known that the Company operates without problems.
 
Business circles did not report negative backgrounds.
Likewise, credit experience with financial entities is rated normal according to the latest report by the SBS.

Property of company comments

Properties:
 - Av. Los Frutales 220, Ate (Lima 3).
 
Besides for its activities Subject has the following assets:
- Office furniture and equipment
- Machinery 
- Various laboratory equipment 
 
 

INSURANCE

COMPANY	AGAINST	EXPIRATION	AMOUNT
RIMAC INTERNACIONAL CIA.DE SEG.Y REASEG.	Various risks	Not specif	Not specified

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

(Confidential Information)

TRADE REFERENCES

Supplier: CIMATEC S.A.	Tel.: (511) 3365151	Country: PERU
Goods/Services? : Laboratory products
Highest credit? : US$ 2,000.=
Client since? : 2001.	Terms? : 30 days	Performance? : Prompt
Supplier: LITOGRAFÍA GOICOCHEA	Tel.: (511) 4263602	Country: PERU
Goods/Services? : Printing service
Highest credit? : Not specified
Client since? : 2005	Terms? : 30 days	Performance? : Prompt
Comments : It was their client until 2010. No problems reported
Supplier: INDUSTRIAS DEL CARTÓN SA	Tel.: (511) 3263139	Country: PERU
Goods/Services? : Carton containers
Highest credit? : No specified
Client since? : 2002	Terms? : 45 days	Performance? : Prompt
Supplier: IMPRESIONES & EDICIONES AGUILAR	Tel.: (511) 7196926	Country: PERU
Goods/Services? : Printing services
Highest credit? : No specified
Client since? : 2003	Terms? : 30 days	Performance? : Prompt
Comments : It was their client until 2010. No problems reported

Note : Other suppliers did not provide information or could not be consulted

Supplier	Country	Comment
MARVA SA	PERU	No references were given
CARLOS ROCH PRATTES S.A.	PERU	No reply
QUÍMICA SUIZA S.A.	PERU
DHL EXPRESS ADUANAS PERÚ S.A.C.	PERU
KOSSODO S.A.	PERU
ASESORES DE DESARROLLO EMPRESARIAL	PERU
KNOLL AG	GERMANY
CEFAK	GERMANY
ANDENEX CHEMIE GMBH	GERMANY
SHERES	CANADA
INDUSTRIAS UNIPLASTICAS C.A.	VENEZUELA
NEW ZELAND
SAGRAN S.R.L	ITALY

SUPERINTENDENCY OF BANK & INSURANCE (SBS)

Debt structure for bank. SBS Latest Consolidated Credit Report as of : 31/12/2012

Bank	Debt Rating	Current Debt
		S/.	US$
CREDITO	NORMAL	18,532,209.00
SCOTIABANK	NORMAL	8,962,846.00
CONTINENTAL	NORMAL	4,900,706.00
SANTANDER PERU	NORMAL	347,250.00
Total		32,743,011.00
Guarantees		15,668,266.00

CONSOLIDATED DEBT (ALL BANKS)                              ENTITIES NUMBER : 4                           31/12/2012

		Domestic Currency	Foreign Currency
LOANS	:	11,681,090.00
DISCOUNTS	:	491,844.00
FINANCIAL LEASING	:	7,380,553.00
FOREIGN TRADE	:	7,953,450.00
CREDIT CARDS	:	1,092.00
OTHER INDIRECT CONTINGENT DEBTS	:	5,151,275.00
FACTORING / OTHER CHARGES	:	83,707.00
		--------------------------------------------	--------------------------------------------
TOTAL DEBT	:	32,743,011.00
		=========================	=========================

Comments :

The SBS has rated the Company 100% NORMAL since 31/12/2010.

RATING DESCRIPTION ACCORDING TO THE SBS (Caption)
Normal	Good Finantial Situation, Prompt payments, Consistent information. Increasing Trend, Creditworthy.
Potential Problem	Satisfactory Finantial Situation but cash flow can be weak. Irregular payments. Irregular Trend.
Deficient	Fair Finantial Situation, cash problems, profits shortage, delayed and overdue payments.
Doubtful	Heavy Finantial Situation, liquidity shotage, notorious delayed payments, Judicial Collection, Bad Management.
Loss	Bad Finantial Situation, Insufficient funds, declared bankruptcy, debt default.

CREDIT HISTORY

Previous reports show similar payments.
 
NB. It should be mentioned that a document may continue appearing as unsettled unless appropriate regularization is made before the relevant chamber of commerce.
 
Found no protested documents, cancelled current accounts or credit cards, neither tax nor social security debts owed to any AFP (Pension Fund Private Administrators).

BANKERS

Subject is client of the above mentioned banks which when being consulted told us that according to the current legal regulations they cannot provide any information on Subject's operations under bank secrecy.
 
However, through external sources we learnt that it makes use of banking credit facilities without any adverse information.

GENERAL INFORMATION

REPUTATION

NOTHING AGAINST COMPANY

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.98
UK Pound	1	Rs.83.72
Euro	1	Rs.72.08

INFORMATION DETAILS

Report Prepared by :

PDT

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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