MIRA INFORM REPORT

Report Date :

25.01.2013

IDENTIFICATION DETAILS

Name :	KIEN NAM JOINT STOCK COMPANY
Registered Office :	Lot MB4-3 Duc Hoa 1- Hanh Phuc IP, Hamlet 5, Duc Hoa Dong Commune , Duc Hoa District, Long An Province
Country :	Vietnam
Financials (as on) :	31.12.2011
Date of Incorporation :	2007
Com. Reg. No.:	1100792664
Legal Form :	Joint stock company
Line of Business :	The subject is specializing in manufacturing and trading fertilizer, pesticide, PU paint and chemical for industry.
No. of Employees :	150

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)
Vietnam	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
Registered English Name	KIEN NAM JOINT STOCK COMPANY
Registered Vietnamese Name	CONG TY CO PHAN KIEN NAM
Registered Short name	KINA CO
Type of Business	Joint stock company
Year Established	2007
Business Registration No.	1100792664
Date of Registration	09 Apr 2009
Place of Registration	Business Registration Office of Long An Province
Current Chartered capital	VND 30,000,000,000
Status	Unlisted
Tax code	1100792664
Total Employees	150
Size	Medium

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Chartered capital: VND 12,250,000,000 Changed to: VND 30,000,000,000	02 Nov 2012
2	Subject has got former Business Registration No: 5003000244 issued on August 21st, 2007 Changed to: 1100792664	09 Apr 2009

ADDRESSES

Head Office & Factory
Address	Lot MB4-3 Duc Hoa 1- Hanh Phuc IP, Hamlet 5, Duc Hoa Dong Commune , Duc Hoa District, Long An Province, Vietnam
Telephone	(84-72) 3779 823 - 3779 824 - 3779 825
Fax	(84-72) 3779 826
Transaction office in Ho Chi Minh
Address	K4 Quang Trung Street, Ward 11 , Go Vap District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3589 0880
Fax	(84-8) 3589 0884

SUBSIDIARIES AND RELATED COMPANIES

1. SUBSIDIARY - KIEN NAM COMPANY LIMITED
Business Registration	0303517340
Date of Registration	26 Feb 2010
Place of Registration	Business Registration Office of Hochiminh City
Registered Capital	VND 10,000,000,000
Tax code	0303517340
Address	84/72A Thong Nhat Street, Ward 11 , Go Vap District, Ho Chi Minh City, Vietnam
Tel	(84-8) 3589 0880
Fax	(84-8) 62571909

DIRECTORS

1. NAME	Mr. DUONG DINH HOI
Position	General Director
Date of Birth	10 Jul 1971
ID Number/Passport	240562055
ID Issue Date	26 Feb 1996
ID Issue Place	Police Station of Dak Lak Province
Resident	176 Dinh Tien Hoang Street, Tu An Ward , Buon Ma Thuot City, Dak Lak Province, Vietnam
Current resident	Suite 510 Nhieu Loc C Apartment Building, Son Ky Ward, Tan Phu District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	+84 903 916 368
Email	hoikina@vnn.vn
2. NAME	Mr. DUONG DINH HIEU
Position	Sales Manager
Date of Birth	09 Jan 1977
ID Number/Passport	211618799
ID Issue Date	19 Feb 2002
ID Issue Place	Police Station of Binh Dinh Province
Resident	Hamlet 3, Xuan Phong Nam Town, An Hoa Commune , An Lao District, Binh Dinh Province, Vietnam
Current resident	Suite 510 Nhieu Loc C Apartment Building, Son Ky Ward, Tan Phu District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	+84 903 956 268
3. NAME	Mr. MAI VAN THINH
Position	Deputy General Director
ID Number/Passport	271493340
Resident	156B Ly Thuong Kiet Street, Ward 1 , Vung Tau City, Ba Ria-Vung Tau Province, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	+84 908 178 776
4. NAME	Mr. NGUYEN HUU SU
Position	Production Director
Resident	Long An Province, Vietnam
Nationality	Vietnamese
5. NAME	Ms. NGUYEN PHUONG THI
Position	Chief Accountant
Resident	Long An Province, Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject is specializing in manufacturing and trading fertilizer, pesticide, PU paint and chemical for industry.

IMPORT & EXPORT ACTIVITIES

IMPORT:
Types of products	Chemical
Market	China, Malaysia, India, Germany, Singapore, Thailand
Mode of payment	L/C, T/T (mainly)
EXPORT:
Note: Currently, the subject does not export. However in an interview with Mr. Hieu - Sales director of subject, he said that the subject will export to Cambodia in the near future.

BANKERS

1. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK GO VAP BRANCH
Address	No. 94-96-98 Nguyen Oanh Str Ward 7, Go Vap District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 38943648
Fax	(84-8) 38941918
2. ASIA COMMERCIAL BANK GO VAP BRANCH
Address	No.01 Quang Trung, Go Vap District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3989 4469
Fax	(84-8) 3989 4470
3. VIETNAM EXPORT IMPORT COMMERCIAL JOINT STOCK BANK CHO LON BRANCH
Address	No.55 Nguyen Chi Thanh Street, 5 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3832 1220
Fax	(84-8) 3832 1230
4. ASIA COMMERCIAL BANK DIEN BIEN PHU TRANSACTION
Address	No. 331 Dien Bien Phu Street, Ward 4, 4 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3818 1308
Fax	(84-8) 3818 1309

SHAREHOLDERS

Following is the latest list of the subject’s founding shareholders.
1. NAME	Mr. DUONG DINH HOI
Position	General Director
Date of Birth	10 Jul 1971
ID Number/Passport	240562055
Issued on	26 Feb 1996
Issued Place	Police Station of Dak Lak Province
Resident	176 Dinh Tien Hoang Street, Tu An Ward , Buon Ma Thuot City, Dak Lak Province, Vietnam
Current Resident	Suite 510 Nhieu Loc C Apartment Building, Son Ky Ward, Tan Phu District, Ho Chi Minh City, Vietnam
Email	hoikina@vnn.vn
Mobile phone	+84 903 916 368
Nationality	Vietnamese
Number of Shares	191,276
Value of shares	VND 19,126,700,000
Percentage	63.76%
2. NAME	Mr. HOANG CHI DUNG
ID Number/Passport	020217177
Resident	136/8A Van Kiep Street, Ward 3 , Binh Thanh District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Number of Shares	15,225
Value of shares	VND 1,522,500,000
Percentage	5.08%
3. NAME	Mr. BUI THAI LAN
ID Number/Passport	020163312
Resident	233A Nguyen Trong Tuyen Street, Ward 8 , Phu Nhuan District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Number of Shares	26,916
Value of shares	VND 2,691,600,000
Percentage	8.97%
4. NAME	Mr. TRUONG CONG LY
ID Number/Passport	240375266
Resident	718/1A Tran Hung Dao Street, Ward 2 , 5 District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Number of Shares	592
Value of shares	VND 659,200,000
Percentage	2.2%
5. NAME	Mr. DUONG DINH HIEU
Position	Sales Manager
Date of Birth	09 Jan 1977
ID Number/Passport	211618799
Issued on	19 Feb 2002
Issued Place	Police Station of Binh Dinh Province
Resident	Hamlet 3, Xuan Phong Nam Town, An Hoa Commune , An Lao District, Binh Dinh Province, Vietnam
Current Resident	Suite 510 Nhieu Loc C Apartment Building, Son Ky Ward, Tan Phu District, Ho Chi Minh City, Vietnam
Mobile phone	+84 903 956 268
Nationality	Vietnamese
Number of Shares	30,000
Value of shares	VND 3,000,000,000
Percentage	10%
6. NAME	Mr. MAI VAN THINH
Position	Deputy General Director
ID Number/Passport	271493340
Resident	156B Ly Thuong Kiet Street, Ward 1 , Vung Tau City, Ba Ria-Vung Tau Province, Vietnam
Mobile phone	+84 908 178 776
Nationality	Vietnamese
Number of Shares	30,000
Value of shares	VND 3,000,000,000
Percentage	10%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011	31/12/2010	31/12/2009
Number of weeks	52	52	52
ASSETS
A – CURRENT ASSETS	56,931,000,000	51,572,000,441	17,552,000,000
I. Cash and cash equivalents	197,000,000	37,545,844	436,000,000
1. Cash	197,000,000	37,545,844	436,000,000
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	14,419,000,000	11,776,346,396	3,154,000,000
1. Receivable from customers	9,157,000,000	9,249,544,420	3,039,000,000
2. Prepayments to suppliers	5,253,000,000	2,403,023,350	115,000,000
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	9,000,000	123,778,626	0
6. Provisions for bad debts	0	0	0
IV. Inventories	42,032,000,000	36,513,738,138	11,888,000,000
1. Inventories	42,032,000,000	36,513,738,138	11,888,000,000
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	283,000,000	3,244,370,063	2,074,000,000
1. Short-term prepaid expenses	0	0	20,000,000
2. VAT to be deducted	123,000,000	3,163,370,063	1,988,000,000
3. Taxes and other accounts receivable from the State	2,000,000	0	0
4. Other current assets	158,000,000	81,000,000	66,000,000
B. LONG-TERM ASSETS	25,412,000,000	19,110,213,781	17,193,000,000
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	20,156,000,000	14,173,761,031	16,834,000,000
1. Tangible assets	19,701,000,000	13,393,100,307	11,383,000,000
- Historical costs	26,340,000,000	16,558,747,763	12,232,000,000
- Accumulated depreciation	-6,639,000,000	-3,165,647,456	-849,000,000
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	17,000,000	22,919,414	29,000,000
- Initial costs	28,000,000	28,649,270	29,000,000
- Accumulated amortization	-11,000,000	-5,729,856	0
4. Construction-in-progress	438,000,000	757,741,310	5,422,000,000
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	5,256,000,000	4,936,452,750	359,000,000
1. Long-term prepaid expenses	5,256,000,000	4,936,452,750	359,000,000
2. Deferred income tax assets	0	0	0
3. Other long-term assets	0	0	0
VI. Goodwill	0	0	0
1. Goodwill	0	0	0
TOTAL ASSETS	82,343,000,000	70,682,214,222	34,745,000,000
LIABILITIES
A- LIABILITIES	27,415,000,000	25,708,017,402	24,297,000,000
I. Current liabilities	26,991,000,000	24,992,081,244	23,776,000,000
1. Short-term debts and loans	21,130,000,000	10,295,064,865	15,800,000,000
2. Payable to suppliers	5,201,000,000	14,239,444,560	7,836,000,000
3. Advances from customers	120,000,000	399,825,870	140,000,000
4. Taxes and other obligations to the State Budget	0	28,882,364	0
5. Payable to employees	461,000,000	0	0
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	79,000,000	28,863,585	0
10. Provisions for short-term accounts payable	0	0	0
11. Bonus and welfare funds	0	0	0
II. Long-Term Liabilities	424,000,000	715,936,158	521,000,000
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	383,000,000	715,936,158	521,000,000
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	41,000,000	0	0
7. Provisions for long-term accounts payable	0	0	0
8. Unearned Revenue	0	0	0
9. Science and technology development fund	0	0	0
B- OWNER’S EQUITY	54,928,000,000	44,974,196,820	10,448,000,000
I. OWNER’S EQUITY	54,526,000,000	44,091,892,356	10,430,000,000
1. Capital	12,250,000,000	12,250,000,000	9,776,000,000
2. Share premiums	0	0	0
3. Other sources of capital	26,527,000,000	26,526,674,500	0
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	3,322,000,000	3,322,011,160	409,000,000
9. Other funds	0	0	0
10. Retained earnings	12,427,000,000	1,993,206,696	245,000,000
11. Construction investment fund	0	0	0
12. Business arrangement supporting fund	0
II. Other sources and funds	402,000,000	882,304,464	18,000,000
1. Bonus and welfare funds (Elder form)	402,000,000	882,304,464	18,000,000
2. Sources of expenditure	0	0	0
3. Fund to form fixed assets	0	0	0
MINORITY’S INTEREST	0	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	82,343,000,000	70,682,214,222	34,745,000,000

PROFIT & LOSS STATEMENT

Description	FY2011	FY2010	FY2009
1. Total Sales	73,644,000,000	60,087,885,487	17,473,000,000
2. Deduction item	203,000,000	0	23,000,000
3. Net revenue	73,441,000,000	60,087,885,487	17,450,000,000
4. Costs of goods sold	49,220,000,000	43,779,839,677	12,277,000,000
5. Gross profit	24,221,000,000	16,308,045,810	5,173,000,000
6. Financial income	11,000,000	16,069,112	6,000,000
7. Financial expenses	4,019,000,000	3,363,011,776	1,101,000,000
- In which: Loan interest expenses	0	1,438,978,331	976,000,000
8. Selling expenses	786,000,000	400,030,388	3,000,000
9. Administrative overheads	8,881,000,000	6,612,442,253	3,180,000,000
10. Net operating profit	10,546,000,000	5,948,630,505	895,000,000
11. Other income	0	700	0
12. Other expenses	1,000,000	52,923,199	0
13. Other profit /(loss)	-1,000,000	-52,922,499	0
14. Total accounting profit before tax	10,545,000,000	5,895,708,006	895,000,000
15. Current corporate income tax	0	0	0
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	10,545,000,000	5,895,708,006	895,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2011	FY2010	FY2009	Average Industry
Current liquidity ratio	2.11	2.06	0.74	1.42
Quick liquidity ratio	0.55	0.60	0.24	0.78
Inventory circle	1.17	1.20	1.03	5.13
Average receive period	71.66	71.53	65.97	72.48
Utilizing asset performance	0.89	0.85	0.50	1.61
Liability by total assets	33.29	36.37	69.93	65.76
Liability by owner's equity	49.91	57.16	232.55	269.57
Ebit / Total assets (ROA)	12.81	10.38	5.38	11.97
Ebit / Owner's equity (ROE)	19.20	16.31	17.91	36.02
Ebit / Total revenue (NPM)	14.32	12.21	10.71	7.56
Gross profit / Total revenue (GPM)	32.89	27.14	29.61	14.67
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Normal
Liquidity	Medium
Payment status	Average
Financial Situation	Average
Development trend	Developing
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	L/C, T/T (mainly)
Sale Methods	Retailer and Wholesaler
Public opinion	Normal

INTERPRETATION ON THE SCORES

KIEN NAM JOINT STOCK COMPANY was founded in 2007 under the business registration No. 500300244, granted on August 21st 2007 by Long An Department of Planning and Investment. Currently, the subject has been operating according to the number 1100792664 (the same as tax code number) with lifted chartered capital up VND 30 billion. Mr. DUONG DINH HOI is the main shareholder (holds 63.76% of total shares) and simultaneously the subject's general director.

The head office and factory of subject are located at Lot MB4-3 Duc Hoa 1, Hanh Phuc Industrial Park, Hamlet 5, Duc Hoa Dong Commune, Duc Hoa District, Long An Province, Vietnam. Besides, it has a transaction office and a subsidiary in Hochiminh City. Premises and facilities of subject are average. Besides the subject, Mr. Duong Dinh Hoi (General Director), Mr. Duong Dinh Hieu (Sale Director) and Mr. Mai Van Thinh (Deputy General Director) are also the shareholders and board of director of other companies: KIEN NAM COMPANY LIMITED (subsidiary of subject) and EAST ASIA CHEMICAL COMPANY LIMITED. These companies also operate in the same field and they have support each other in business. Up to now, the subject has about 150 employees in total.

The subject is specializing in manufacturing and trading fertilizer, pesticide, PU paint and chemical for industry. It imports materials mainly from China, Malaysia, India; sometimes in Germany, Singapore, Thailand. Because the subject is considered as a familiar customer to the partners, about 80% to 90% transactions are paid by TT payment method. The finished products of subject are providing in domestic market. However, in an interview with Mr. Hieu – Sales director of subject, he said that the subject will export to Cambodia in the near future.

Financially, the subject’s business result tends to increase year after year. In 2011, the subject gained VND 73,644 million in total revenue; increased about 22.56% compared with 2010 and higher over 4 times than the year 2009. As a result, the profit after tax 2011 met the figure of VND 10,545 million. This number doubled the previous year. The profitability is considered to be rather good.

In view of balance sheet, we can see total assets also had uptrend. In 2011, the subject had total assets of VND 82,343 million; rose about 16.5% and 137% in comparison with the years 2010, 2009 respectively. That proves the subject’s business scale has been expanded and that was also the reason why total sales from 2010 were so much higher than 2009. The capital structure was safe. Its self-financing capacity was high. However, its quick liquidity ratio was rather humble, lower than the average industry. The operation ratio was not effective.

In general, the subject has just established for 5 years and been being developing period. The management capacity seems rather good. With current financial situation, the subject has capacity to meet small financial commitments. Caution is need for medium and more business transactions with it.

INDUSTRY 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

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.85
UK Pound	1	Rs.85.25
Euro	1	Rs.71.72

INFORMATION DETAILS

Report Prepared by :

SDA

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.