MIRA INFORM REPORT

Report Date :

21.02.2013

IDENTIFICATION DETAILS

Name :	VIET THANG COMPANY LIMITED
Registered Office :	No. 398 Xuong Giang Street - Ngo Quyen Ward, Bac Giang City, Bac Giang Province
Country :	Viet Nam
Financials (as on) :	31.12.2011
Date of Incorporation :	1994
Com. Reg. No.:	2400101782
Legal Form :	Limited liability company
Line of Business :	Engages in manufacturing and trading pesticides.
No. of Employees :	298

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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
Viet Nam	B1	B1

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

vietnam - ECONOMIC OVERVIEW

Vietnam is a densely-populated developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While Vietnam's economy remains dominated by state-owned enterprises, which still produce about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam joined the World Trade Organization in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 22% in 2011, while industry's share increased from 36% to 40% in the same period. Deep poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. The global recession has hurt Vietnam's export-oriented economy, with GDP in 2009-11 growing less than the 7% per annum average achieved during the last decade. In 2011, exports increased by more than 33%, year-on-year, and the trade deficit, while reduced from 2010, remained high, prompting the government to maintain administrative trade measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance. Since 2008, the government devalued it in excess of 20% through a series of small devaluations. Foreign donors pledged nearly $8 billion in new development assistance for 2011. However, the government's strong growth-oriented economic policies have caused it to struggle to control one of the region's highest inflation rates, which reached as high as 23% in August 2011 and averaged 18% for the year. In February 2011, Vietnam shifted its focus away from economic growth to stabilizing its economy and tightened fiscal and monetary policies. In early 2012 Vietnam unveiled a broad "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises and the banking sector. Vietnam's economy continues to face challenges from low foreign exchange reserves, an undercapitalized banking sector, and high borrowing costs. The near-bankruptcy and subsequent default of the state-owned-enterprise Vinashin, a leading shipbuilder, led to a ratings downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing difficulties.

Source : CIA

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status
Translated English Name	VIET THANG COMPANY LIMITED
Vietnamese Name	CONG TY TNHH VIET THANG
Type of Business	Limited liability company
Year Established	1994
Establishment Decision	002080
Date of Issuance	14 Apr 1994
Place of Issuance	Bac Giang People’s Committee
Business Registration No.	2400101782
Date of Registration	20 Mar 2012
Place of Registration	Bac Giang Province Department of Planning and Investment
Chartered capital	VND 82,889,800,000
Status	Unlisted
Tax code	2400101782
Total Employees	298
Size	Medium
Note: The subject did not register English name.

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 044579 Changed to: 2400101782	20 Mar 2012
2	Subject has got former Chartered capital: 32,900,300,000 VND Changed to: 82,889,800,000 VND	23 Apr 2009

ADDRESSES
Head Office
Address	No. 398 Xuong Giang Street - Ngo Quyen Ward, Bac Giang City, Bac Giang Province, Vietnam
Telephone	(84-240) 385 4838
Factory Address
Address	Song Khe Industrial Zone Noi Hoang, Yen Dung District, Bac Giang Province, Vietnam
Telephone	(84-240) 386 0716
Transaction office in Bac Giang
Address	No.35 Giap Hai, Bac Giang City, Bac Giang Province, Vietnam
Telephone	(84-240) 3558216/ 3858679
Fax	(84-240) 3558720
Branch in Ho Chi Minh
Address	Lot C9-C10 Street No.7C, Le Minh Xuan Industrial part - Le Minh Xuan commune, Binh Chanh District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3768 2158
Fax	(84-8) 3768 2157
Note: Formerly, the branch of the company at No.59/12 Tien Lan Hamlet - Ba Diem commune - Hoc Mon District - Ho Chi Minh City - Vietnam, but recently, the branch of company moved to this location.
Branch in Long An
Address	Lot MA4 Duc Hoa 1 Industrial part Hamle 1 Duc Hoa Dong commune, Duc Hoa District, Long An Province, Vietnam
Branch in Ha Noi
Address	Group 18 Phuc Loi Ward, Long Bien District, Ha Noi City, Vietnam
Telephone	(84-4) 3827 2341
Fax	(84-4) 3872 0112
Note: Previously, the branch of the company located at No.196 Nguyen Van Cu Str - Long Bien District - Ha Noi City - Vietnam. Afterward, the branch moved to this place
Branch in Quang Nam
Address	Highway No.1A Binh Hiep village - Binh Phuc commune, Thang Binh District, Quang Nam Province, Vietnam
Telephone	(84-510) 3665063
Fax	(84-510) 3665063

DIRECTORS
1. NAME	Mr. LE VAN THUA
Position	General Director
Date of Birth	08 Aug 1938
ID Number/Passport	120730194
ID Issue Date	25 Dec 2009
ID Issue Place	Bac Giang Police Office
Current resident	No. 398 Xuong Giang Str - Ngo Quyen Ward, Bac Giang City, Bac Giang Province, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	++84 913257393
Note: Mr. Le Van Thua is the leader of the family company. His sons are the deputy directors and managers of all branches.
2. NAME	Mr. LE VAN THINH
Position	Vice General Director
Date of Birth	1952
ID Number/Passport	012065866
Resident	No. 196 Nguyen Van Cu Str, Long Bien District, Ha Noi City, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	(84-4) 38272 341 / ++84 913217879
Note: He is the son of Mr. Le Van Thua, general director of the Subject
3. NAME	Mr. LE VAN THE
Position	Vice General Director
ID Number/Passport	121199572
Resident	No. 398 Xuong Giang Str - Ngo Quyen Ward, Bac Giang City, Bac Giang Province, Vietnam
Current resident	No. 59/12 Tien Lam hamlet - Ba Diem, Hoc Mon District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	++84 913 57401
Note: Mr. Le Van The is the director of the Southern branch. He is also the son of Mr. Le Van Thua.
4. NAME	Ms. LE PHUONG THUY
Position	Chief Accountant
Current resident	Bac Giang Province, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	(84-240) 3858679 / ++ 84 982 357 682

BUSINESS NATURE AND ACTIVITIES

The company mainly engages in manufacturing and trading pesticides.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Chemical materials
· Market	China, Korea, Japan, France, USA, India, England, etc
· Mode of payment	L/C, T/T
EXPORT:
Note: The subject does not export directly. It distributes products to agents in Southern area near bordering area, then these agents sell to Cambodia.

BANKERS
1. DONG A COMMERCIAL JOINT STOCK BANK BAC GIANG BRANCH
Address	No.195-197 Le Loi Street, Bac Giang City, Bac Giang Province, Vietnam
Telephone	(84-240) 352 8234
Fax	(84-240) 352 8237
2. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM BAC GIANG BRANCH
Address	No.179 Hung Vuong, Bac Giang City, Bac Giang Province, Vietnam
Telephone	(84-240) 3858996 / 3855576
Fax	(84-240) 3855575
3. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT BAC GIANG BRANCH
Address	No.45 Ngo Gia Tu , Bac Giang City, Bac Giang Province, Vietnam

SHAREHOLDERS
1. NAME	Mr. LE VAN THUA
Position	General Director
Date of Birth	08 Aug 1938
ID Number/Passport	120730194
Issued on	25 Dec 2009
Issued Place	Bac Giang Police Office
Current Resident	No. 398 Xuong Giang Str - Ngo Quyen Ward, Bac Giang City, Bac Giang Province, Vietnam
Mobile phone	++84 913257393
Nationality	Vietnamese
Value of shares	VND 26,129,200,000
Percentage	31.52%
2. NAME	Ms. DO THI LIEN
ID Number/Passport	120007098
Current Resident	Ngo Quyen Ward, Bac Giang City, Bac Giang Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 2,246,400,000
Percentage	2.71%
3. NAME	Mr. LE VAN THINH
Position	Vice General Director
Date of Birth	1952
ID Number/Passport	012065866
Resident	No. 196 Nguyen Van Cu Str, Long Bien District, Ha Noi City, Vietnam
Work phone	(84-4) 38272 341
Mobile phone	++84 913217879
Nationality	Vietnamese
Value of shares	VND 16,905,000,000
Percentage	20.39%
4. NAME	Mr. LE VAN THE
Position	Vice General Director
ID Number/Passport	121199572
Resident	No. 398 Xuong Giang Str - Ngo Quyen Ward, Bac Giang City, Bac Giang Province, Vietnam
Current Resident	No. 59/12 Tien Lam hamlet - Ba Diem, Hoc Mon District, Ho Chi Minh City, Vietnam
Mobile phone	++84 913 57401
Nationality	Vietnamese
Value of shares	VND 16,405,000,000
Percentage	19.79%
5. NAME	Mr. LE NGOC TUYEN
ID Number/Passport	121575568
Current Resident	Lang Son Commune, Yen Dung District, Bac Giang Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 434,400,000
Percentage	0.52%
6. NAME	Ms. THAI THI CHIN
ID Number/Passport	120929687
Current Resident	Lang Son Commune, Yen Dung District, Bac Giang Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 2,246,400,000
Percentage	2.71%
7. NAME	Ms. LE THI THUY
ID Number/Passport	120929790
Current Resident	Ngo Quyen Ward, Bac Giang City, Bac Giang Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 1,946,400,000
Percentage	2.35%
8. NAME	Mr. NGUYEN VAN TUONG
ID Number/Passport	121352569
Current Resident	Lang Son Commune, Yen Dung District, Bac Giang Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 805,000,000
Percentage	0.97%
9. NAME	Ms. LE THI LOAN
ID Number/Passport	121381488
Current Resident	Ngo Quyen Ward, Bac Giang City, Bac Giang Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 1,946,400,000
Percentage	2.35%
10. NAME	Mr. NGUYEN VAN HUNG
Current Resident	Lang Son Commune, Yen Dung District, Bac Giang Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 805,000,000
Percentage	0.97%
11. NAME	Mr. LE VAN HAU
ID Number/Passport	121476415
Current Resident	Phu Thinh Commune - Lang Son Ward, Yen Dung District, Bac Giang Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 1,270,000,000
Percentage	1.53%
12. NAME	Ms. NGUYEN THI VE
Resident	Lang Son Commune, Yen Dung District, Bac Giang Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 2,455,100,000
Percentage	2.96%
13. NAME	Mr. LE DUC THANG
ID Number/Passport	121599715
Current Resident	Bac Giang City, Bac Giang Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 2,746,400,000
Percentage	3.31%
14. NAME	Ms. HOANG THI NGOAN
ID Number/Passport	121394267
Resident	Phu Thinh Commune - Lang Son Ward, Yen Dung District, Bac Giang Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 1,860,000,000
Percentage	2.24%
15. NAME	Mr. LE VAN VIET
ID Number/Passport	121509714
Current Resident	Phu Thinh Commune - Lang Son Ward, Yen Dung District, Bac Giang Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 2,742,700,000
Percentage	3.31%
16. NAME	Ms. LE THI HANH
ID Number/Passport	121230828
Resident	Ngo Quyen Ward, Bac Giang City, Bac Giang Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 1,946,400,000
Percentage	2.35%

FINANCIAL DATA
BALANCE SHEET
Unit: Million VND
Balance sheet date	31/12/2011	31/12/2010	31/12/2009
Number of weeks	52	52	52
Audit status	Unaudited	Unaudited	Unaudited
ASSETS
A – CURRENT ASSETS	482,608	425,780	428,891
I. Cash and cash equivalents	4,027	8,389	13,894
1. Cash	4,027	8,389	13,894
2. Cash equivalents	0	0	0
II. Short-term investments	0	0	0
1. Short-term investments	0	0	0
2. Provisions for devaluation of short-term investments	0	0	0
III. Accounts receivable	98,773	95,779	61,506
1. Receivable from customers	97,010	92,851	56,983
2. Prepayments to suppliers	0	0	0
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	1,763	2,928	4,523
6. Provisions for bad debts	0	0	0
IV. Inventories	368,507	310,780	333,503
1. Inventories	368,507	310,780	333,503
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	11,301	10,831	19,988
1. Short-term prepaid expenses	0	0	0
2. VAT to be deducted	1,210	4,190	12,498
3. Taxes and other accounts receivable from the State	0	0	1,482
4. Other current assets	10,091	6,642	6,008
B. LONG-TERM ASSETS	134,157	117,055	101,750
I. Long term accounts receivable	0	0	0
1. Long term account receivable from customers	0	0	0
2. Working capital in affiliates	0	0	0
3. Long-term inter-company receivable	0	0	0
4. Other long-term receivable	0	0	0
5. Provisions for bad debts from customers	0	0	0
II. Fixed assets	134,157	117,055	101,750
1. Tangible assets	124,347	48,278	54,439
- Historical costs	167,140	80,888	78,906
- Accumulated depreciation	-42,793	-32,610	-24,467
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	0	0	0
- Initial costs	0	0	0
- Accumulated amortization	0	0	0
4. Construction-in-progress	9,810	68,778	47,311
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	0	0	0
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	0	0	0
3. Other long-term investments	0	0	0
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	0	0	0
1. Long-term prepaid expenses	0	0	0
2. Deferred income tax assets	0	0	0
3. Other long-term assets	0	0	0
VI. Goodwill		0	0
1. Goodwill		0	0
TOTAL ASSETS	616,765	542,836	530,642
LIABILITIES
A- LIABILITIES	495,588	402,295	414,101
I. Current liabilities	468,697	365,501	387,766
1. Short-term debts and loans	268,239	164,936	193,275
2. Payable to suppliers	196,407	191,894	182,812
3. Advances from customers	0	0	0
4. Taxes and other obligations to the State Budget	2,129	1,925	10,448
5. Payable to employees	67	67	104
6. Accrued expenses	0	0	0
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	1,855	6,678	1,126
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	26,891	36,794	26,335
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	0	0	0
4. Long-term debts and loans	26,891	36,794	26,335
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	0	0	0
7. Provisions for long-term accounts payable	0	0	0
8. Unearned Revenue
9. Science and technology development fund
B- OWNER’S EQUITY	121,177	140,541	116,540
I. OWNER’S EQUITY	121,177	140,357	116,387
1. Capital	82,889	82,890	82,890
2. Share premiums	0	0	0
3. Other sources of capital	0	35,000	15,000
4. Treasury stocks	0	0	0
5. Differences on asset revaluation	0	0	0
6. Foreign exchange differences	0	0	0
7. Business promotion fund	0	0	0
8. Financial reserved fund	0	0	0
9. Other funds	21,204	16,623	10,028
10. Retained earnings	17,084	5,844	8,469
11. Construction investment fund	0	0	0
12. Business arrangement supporting fund
II. Other sources and funds	0	183	154
1. Bonus and welfare funds	0	183	154
2. Sources of expenditure	0	0	0
3. Fund to form fixed assets	0	0	0
MINORITY’S INTEREST		0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	616,765	542,836	530,642

PROFIT & LOSS STATEMENT
Description	FY2011	FY2010	FY2009
1. Total Sales	840,340	712,604	684,220
2. Deduction item	0	0	0
3. Net revenue	840,340	712,604	684,220
4. Costs of goods sold	753,939	645,318	629,153
5. Gross profit	86,401	67,286	55,067
6. Financial income	0	0	0
7. Financial expenses	51,478	42,000	31,375
- In which: Loan interest expenses	33,559	26,542	12,120
8. Selling expenses	0	0	0
9. Administrative overheads	31,176	24,023	20,033
10. Net operating profit	3,747	1,262	3,659
11. Other income	13,158	6,530	6,503
12. Other expenses	0	0	1,694
13. Other profit /(loss)	13,158	6,530	4,809
14. Total accounting profit before tax	16,905	7,792	8,469
15. Current corporate income tax	2,958	1,948	1,482
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies		0	0
18. Profit after tax	13,947	5,844	6,987

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2011	FY2010	FY2009	Average Industry
Current liquidity ratio	1.03	1.16	1.11	1.42
Quick liquidity ratio	0.24	0.31	0.25	0.78
Inventory circle	2.05	2.00	2.21	5.13
Average receive period	42.90	49.06	32.81	72.48
Utilizing asset performance	1.36	1.31	1.29	1.61
Liability by total assets	80.35	74.11	78.04	65.76
Liability by owner's equity	408.98	286.25	355.33	269.57
Ebit / Total assets (ROA)	8.18	6.33	3.88	11.97
Ebit / Owner's equity (ROE)	41.64	24.43	17.67	36.02
Ebit / Total revenue (NPM)	6.01	4.82	3.01	7.56
Gross profit / Total revenue (GPM)	10.28	9.44	8.05	14.67
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Fair
Liquidity	Low
Payment status	Average
Financial Situation	Average
Development trend	Stable
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	L/C, T/T
Sale Methods	Wholesaler
Public opinion	Good

INTERPRETATION ON THE SCORES

The company was originally established in 1994 following the Decision No. 002082 issued by Bac Giang People’s Committee. Currently, it is operating under the business registration No. 2400101782, which is coincident with its tax code. Now, the subject has registered capital of VND 82,889,800,000 and about 298 official employees.

The company registered office at No. 398, Xuong Giang street, Bac Giang city, Bac Giang province. This is private house of the director. Currently, it has 3 factories in Bac Giang province, Long An province and Ho Chi Minh city and about 700 agents nationwide. It specializes in bottling, packaging and trading pesticides. The subject now has produced nearly 40 kinds of pesticides. Previously, it also manufactured feeds and traded in cars (4-7 seat type). However, now it only concentrates on pesticides business.

On the financial hand, in 2010, the company attained total sale of VND 712.6 billion, increased 4.15% compared with that in 2009 and 80.34% in comparison to 2008, but profit after tax went down by nearly VND 1.2 billion. The reason is the higher financial expenses and administrative overheads in 2010. Up to 2011, the company's turnover raised continuously, noticeably its profit after tax reached VND 13,947 million, augmented 138.66% in relation to that in 2010 and 99.61% compared with that in 2009. This proves that, in 2011, the company's costs management ability improved. Profitability ratios in 2011 were also better than those in previous years. However, debt rate and liquidity factors were not as good as those of previous years.

In 2011, the company's total asset was VND 616.7 billion but it was financed mainly by liabilities. Liability by total asset was 80.35%, shows that the subject's capital structure was unsafe for its creditors. Besides, the subject's liquidity indexes were also lower than the average industry, in which, the quick liquidity ratio was only 0.24 times (in 2011), and cause of this were subject's high current liabilities and large volume of inventories. The bellowing charts show total assets and total sales growth over years.

An interview was conducted with Ms. Le Phuong Thuy - Chief Accountant. She shared that, in 2012 the company is expected to reach over VND 1000 billion in revenue and about VND 20 billion in profit after tax.

In conclusion, the subject runs on medium scale. Its business activities are effective. However, its self-financing is not good and liquidity is somewhat limited. Thus, caution is needed for medium and big transactions with the subject.

APPENDIX

NDUSTRY DATA
Industry code	Growth speed by price compared with 1994 (%)		Total enterprises 2010		Total employees 2011 (Thous.pers.)	Annual average capital of enterprises 2010 (billion dongs)
	2011	2010
Agriculture, Forestry and Fishing	4.00	2.78	8,887		24,362.9	95,227
Industry and Construction	5.53	7.70	95,217		10,718.9	3,641,376
Trade and Services	6.69	7.52	187,195		15,270.2	6,957,082
ECONOMIC INDICATORS
			2011	2010		2009
Population (Million person)			87.84	86.93		86.02
Gross Domestic Products (USD billion)			119	102.2		91
GDP Growth (%)			5.89	6.78		5.32
GDP Per Capita (USD/person/year)			1,300	1,160		1,080
Inflation (% Change in Composite CPI)			18.58	11.75		6.88
State Budget Deficit compared with GDP (%)			4.9	5.8		6.9
SERVICE TRADE PERFORMANCE
Billion USD			2011	2010		2009
Exports			96.3	72.2		57.1
Imports			105.8	84.8		69.9
Trade Balance			-9.5	-12.6		-12.8

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.05
UK Pound	1	Rs.83.44
Euro	1	Rs.72.53

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