MIRA INFORM REPORT

Report Date :

06.05.2013

IDENTIFICATION DETAILS

Name :	PHARMACEUTICAL AND VETERINARY MATERIAL JOINT STOCK COMPANY
Registered Office :	No. 88 Truong Chinh Street, Dong Da District, Ha Noi City,
Country :	Vietnam
Financials (as on) :	31.12.2012
Date of Incorporation :	1988
Com. Reg. No.:	055931
Legal Form :	Joint stock company
Line of Business :	Manufacturing of veterinary products
No. of Employees :	About 410 persons

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 :	No Complaint
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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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 has been transitioning from the rigidities of a centrally-planned economy since 1986. Vietnamese authorities have reaffirmed their commitment to economic modernization in recent years. Vietnam joined the World Trade Organization in January 2007, which has promoted more competitive, export-driven industries. Vietnam became an official negotiating partner in the Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to less than 22% in 2012, while industry's share increased from 36% to nearly 41% in the same period. State-owned enterprises account for roughly 40% of GDP. 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 hurt Vietnam's export-oriented economy, with GDP in 2012 growing at 5%, the slowest rate of growth since 1999. In 2012, however, exports increased by more than 18%, year-on-year; several administrative actions brought the trade deficit back into balance. Between 2008 and 2011, Vietnam's managed currency, the dong, was devalued in excess of 20%, but its value remained stable in 2012. Foreign direct investment inflows fell 4.5% to $10.5 billion in 2012. Foreign donors have pledged $6.5 billion in new development assistance for 2013. Hanoi has oscillated between promoting growth and emphasizing macroeconomic stability in recent years. In February 2011, the Government shifted policy away from policies aimed at achieving a high rate of economic growth, which had stoked inflation, to those aimed at stabilizing the economy, through tighter monetary and fiscal control. Although Vietnam unveiled a broad, "three pillar" economic reform program in early 2012, proposing the restructuring of public investment, state-owned enterprises, and the banking sector, little perceptible progress had been made by early 2013. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses. In September 2012, the official bad debt ratio climbed to 8.8%, though some independent analysts believe it could be higher than 15%.

Source : CIA

SUBJECT IDENTIFICATION & LEGAL FORM
Current legal status
English Name	PHARMACEUTICAL AND VETERINARY MATERIAL JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN DUOC VA VAT TU THU Y
Trade name	HANVET
Short name	HANVET
Type of Business	Joint stock company
Year Established	1988
Establishment Decision	53/1999/QD/BNN-TCCB
Date of Issuance	18 Mar 1999
Place of Issuance	Ministry of Agriculture and Rural Development
Business Registration No.	055931
Date of Registration	19 Apr 1999
Place of Registration	Department Of Planning and Investment of Hanoi City
Chartered capital	VND 30,000,000,000
Status	Unlisted
Tax code	0100114258
Total Employees	About 410 persons

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Chartered capital: 12,000,000,000 VND Changed to: 30,000,000,000 VND	01 Jan 2009
2	Subject has got former Registered Vietnamese Name: XI NGHIEP DUOC VA VAT TU THU Y Changed to: CONG TY CO PHAN DUOC VA VAT TU THU Y	18 Mar 1999
3	Subject has got former Registered English Name: PHARMACEUTICAL & VETERINARY MATERIAL ENTERPRISE Changed to: PHARMACEUTICAL AND VETERINARY MATERIAL JOINT STOCK COMPANY	18 Mar 1999
4	Subject has got former Registered Vietnamese Name: XI NGHIEP BAO BI VA VAT DUNG THU Y Changed to: XI NGHIEP DUOC VA VAT TU THU Y	31 Jul 1991

ADDRESSES
Head Office
Address	No. 88 Truong Chinh Street, Dong Da District, Ha Noi City, Vietnam
Telephone	(84-4) 38685996/ 38691156
Fax	(84-4) 38690097
Email	hanvet@fpt.vn
Website	http://www.hanvet.com.vn
Branch in Can Tho
Address	B1174, Residential Quarter No.91B An Thoi Ward, Ninh Kieu District, Can Tho City, Vietnam
Telephone	(84-710) 378 1049
Fax	(84-710) 378 1049
Branch in Da Nang
Address	The Thanh Loc Dan new urban Area , , Da Nang City, Vietnam
Telephone	(84-511) 247 8929
Fax	(84-511) 376.8322
Branch in Ha Tinh
Address	Xuan Thanh beach resort , Nghi Xuan District, Ha Tinh Province, Vietnam
Telephone	(84-39) 382 7172
Fax	(84-39) 382 7172
Branch in Vinh Phuc
Address	I area, Tam Dao Town , Tam Dao District, Vinh Phuc Province, Vietnam
Telephone	(84-211) 381 6868
Fax	(84-211) 382 4678
Branch in Ho Chi Minh
Address	No. 3 - Rach Sau Street Binh Thanh Ward, 12 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 38919947
Fax	(84-8) 38919947

SUBSIDIARIES AND RELATED COMPANIES
1. HANVET PHARMACEUTICAL COMPANY LIMITED
Business Registration	0900249945
Tax code	0900249945
Address	Pho Noi A Industrial Zone Ban Town, My Hao District, Hung Yen Province, Vietnam
Tel	(84-321) 3967730
Fax	(84-321) 3967730
2. HA LINH JOINT STOCK COMPANY
Business Registration	2500213024
Tax code	2500213024
Address	Thuong Le hamlet Dai Thinh commune, Me Linh District, Ha Noi City, Vietnam
Tel	(84-4) 3386 5627

DIRECTORS
1. NAME	Mr. NGUYEN HUU VU
Position	Chairman cum General Director
Date of Birth	14 May 1946
ID Number/Passport	011712640
ID Issue Date	09 Aug 1999
ID Issue Place	Police Station of Hanoi City
Resident	No. 231 Bach Mai Str - Bach Mai Ward, Hai Ba Trung District, Ha Noi City, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	(84) 913234696
2. NAME	Mr. NGUYEN DUC LUU
Position	Deputy General Director
Date of Birth	07 Mar 1950
ID Number/Passport	010040869
Resident	Room 306 - Phuong Mai Ward, Dong Da District, Ha Noi City, Vietnam
Nationality	Vietnamese
3. NAME	Mr. NGUYEN VAN MINH
Position	Deputy General Director
Nationality	Vietnamese
4. NAME	Mr. TRAN VAN GIANG
Position	Deputy General Director
Nationality	Vietnamese
5. NAME	Mr. HO MINH DUNG
Position	Deputy General Director
Nationality	Vietnamese
Tel/Mobile phone	(84) 913506328
6. NAME	Ms. MAI THI THANH HOA
Position	Chief Accountant
Date of Birth	11 Aug 1973
Nationality	Vietnamese
Tel/Mobile phone	(84-4) 38685303 / (84) 975303158

BUSINESS NATURE AND ACTIVITIES

The subject is specializing in manufacturing of veterinary products. It also acts as a distributor in animal nutrition, feed additives and raw materials supplying to animal feed industry, representing as exclusive distributor in Vietnam for many world manufacturers.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Materials and products
· Market	China (main market), India, Germany, Holland, Italy, etc.
· Ratio	90%
· Mode of payment	T/T, L/C
EXPORT:
· Market	Myanmar, Bangladesh, Sri Lanka and Malaysia etc
· Mode of payment	T/T
BANKERS
1. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM HOAN KIEM TRANSACTION NO.1
Address	No.26 Hang Voi, Hoan Kiem District, Ha Noi City, Vietnam
Telephone	(84-4) 39340720
2. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT HA NOI BRANCH
Address	No.77 Lac Trung Street, Hai Ba Trung District, Ha Noi City, Vietnam
Telephone	(84-4) 36363235
Fax	(84-4) 38219352
3. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM HOAN KIEM BRANCH
Address	No.23 Phan Chu Trinh, Hoan Kiem District, Ha Noi City, Vietnam
Telephone	(84-4) 39335566
Fax	(84-4) 39335580

SHAREHOLDERS
1. NAME	Mr. HOANG VAN TIEN
ID Number/Passport	010610186
Resident	P5 - A2 - H10 - Phuong Mai Ward , Dong Da District, Ha Noi City, Vietnam
Nationality	Vietnamese
Number of Shares	12,267
Value of shares	VND 1,226,700,000
Percentage	4.08%
2. NAME	Mr. NGUYEN HUU VU
Position	Chairman cum General Director
Date of Birth	14 May 1946
ID Number/Passport	011712640
Issued on	09 Aug 1999
Issued Place	Police Station of Hanoi City
Resident	No. 231 Bach Mai Str - Bach Mai Ward, Hai Ba Trung District, Ha Noi City, Vietnam
Mobile phone	(84) 913234696
Nationality	Vietnamese
Number of Shares	73,036
Value of shares	VND 7,303,600,000
Percentage	24.34%
3. NAME	Mr. NGUYEN HUU THOI
ID Number/Passport	010512160
Resident	C65 - Alley 109 - Truong Chinh Phuong Liet Ward, Thanh Xuan District, Ha Noi City, Vietnam
Nationality	Vietnamese
Number of Shares	1,200
Value of shares	VND 120,000,000
Percentage	0.4%
4. NAME	Ms. NGUYEN THI LIEN
ID Number/Passport	012243701
Resident	P406 H10 Phuong Mai Ward, Dong Da District, Ha Noi City, Vietnam
Nationality	Vietnamese
Number of Shares	4,500
Value of shares	VND 450,000,000
Percentage	1.5%
5. NAME	Mr. NGUYEN DUC LUU
Position	Deputy General Director
Date of Birth	07 Mar 1950
ID Number/Passport	010040869
Resident	Room 306 - Phuong Mai Ward , Dong Da District, Ha Noi City, Vietnam
Nationality	Vietnamese
Number of Shares	20,587
Value of shares	VND 2,058,700,000
Percentage	6.86%
6. NAME	198 OTHER SHAREHOLDERS
Number of shares	167,406
Value of shares	VND 16,740,600,000
Percentage	55.8%

FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2012	31/12/2011	31/12/2010
Number of weeks	52	52	52
Audit status	Unaudited	Unaudited	Unaudited
ASSETS
A – CURRENT ASSETS	164,118,932,872	135,780,000,000	126,967,000,000
I. Cash and cash equivalents	16,240,291,043	6,350,000,000	14,337,000,000
1. Cash	16,240,291,043	6,350,000,000	14,337,000,000
2. Cash equivalents	0	0	0
II. Short-term investments	2,480,000,000	0	0
1. Short-term investments	2,480,000,000	0	0
2. Provisions for devaluation of short-term investments	0	0	0
III. Accounts receivable	62,751,169,707	44,102,000,000	42,728,000,000
1. Receivable from customers	20,927,572,325	21,150,000,000	19,292,000,000
2. Prepayments to suppliers	8,371,882,791	750,000,000	3,829,000,000
3. Inter-company receivable		0	0
4. Receivable according to the progress of construction		0	0
5. Other receivable	33,748,235,691	22,750,000,000	20,155,000,000
6. Provisions for bad debts	-296,521,100	-548,000,000	-548,000,000
IV. Inventories	78,740,344,832	84,150,000,000	68,580,000,000
1. Inventories	78,740,344,832	84,150,000,000	68,580,000,000
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	3,907,127,290	1,178,000,000	1,322,000,000
1. Short-term prepaid expenses	1,467,963,140	0	0
2. VAT to be deducted	776,287,623	320,000,000	464,000,000
3. Taxes and other accounts receivable from the State		0	0
4. Other current assets	1,662,876,527	858,000,000	858,000,000
B. LONG-TERM ASSETS	81,810,278,325	73,919,000,000	67,647,000,000
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	73,235,688,325	65,500,000,000	59,728,000,000
1. Tangible assets	69,625,651,961	65,500,000,000	51,338,000,000
- Historical costs	131,862,032,078	112,000,000,000	93,381,000,000
- Accumulated depreciation	-62,236,380,117	-46,500,000,000	-42,043,000,000
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	3,610,036,364	0	8,390,000,000
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	8,574,590,000	8,419,000,000	7,919,000,000
1. Investments in affiliates	6,224,700,000	6,225,000,000	6,225,000,000
2. Investments in business concerns and joint ventures	400,000,000	400,000,000	400,000,000
3. Other long-term investments	1,949,890,000	1,794,000,000	1,294,000,000
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	0
1. Goodwill	0	0	0
TOTAL ASSETS	245,929,211,197	209,699,000,000	194,614,000,000
LIABILITIES
A- LIABILITIES	176,029,658,950	135,891,000,000	123,484,000,000
I. Current liabilities	175,976,631,754	135,545,000,000	123,138,000,000
1. Short-term debts and loans	147,585,562,117	105,211,000,000	93,819,000,000
2. Payable to suppliers	8,460,924,458	22,000,000,000	20,490,000,000
3. Advances from customers	146,277,180	0	405,000,000
4. Taxes and other obligations to the State Budget	4,085,968,814	2,858,000,000	2,858,000,000
5. Payable to employees	2,740,000,000	2,678,000,000	2,678,000,000
6. Accrued expenses	90,379,465	0	90,000,000
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	9,047,861,587	1,838,000,000	1,838,000,000
10. Provisions for short-term accounts payable	0	960,000,000	960,000,000
11. Bonus and welfare funds	3,819,658,133	0	0
II. Long-Term Liabilities	53,027,196	346,000,000	346,000,000
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	0	0	0
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	53,027,196	346,000,000	346,000,000
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	69,899,552,247	73,808,000,000	71,130,000,000
I. OWNER’S EQUITY	69,899,552,247	69,748,000,000	68,070,000,000
1. Capital	30,000,000,000	28,394,000,000	28,394,000,000
2. Share premiums	394,300,000	394,000,000	394,000,000
3. Other sources of capital	1,561,652,429	1,562,000,000	1,562,000,000
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	18,145,013,935	17,003,000,000	16,003,000,000
8. Financial reserved fund	5,785,044,928	4,124,000,000	4,124,000,000
9. Other funds	270,985,000	271,000,000	271,000,000
10. Retained earnings	13,742,555,955	18,000,000,000	17,322,000,000
11. Construction investment fund	0	0	0
12. Business arrangement supporting fund	0	0	0
II. Other sources and funds	0	4,060,000,000	3,060,000,000
1. Bonus and welfare funds (Elder form)	0	4,060,000,000	3,060,000,000
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	245,929,211,197	209,699,000,000	194,614,000,000

PROFIT & LOSS STATEMENT
Description	FY2012	FY2011	FY2010
1. Total Sales	323,972,465,950	283,958,000,000	246,920,000,000
2. Deduction item	18,589,049	0	0
3. Net revenue	323,953,876,901	283,958,000,000	246,920,000,000
4. Costs of goods sold	197,472,056,871	197,912,000,000	172,097,000,000
5. Gross profit	126,481,820,030	86,046,000,000	74,823,000,000
6. Financial income	2,679,388,591	21,843,000,000	18,994,000,000
7. Financial expenses	18,295,358,937	12,589,000,000	10,947,000,000
- In which: Loan interest expenses		12,589,000,000	10,947,000,000
8. Selling expenses	39,930,097,061	36,806,000,000	32,005,000,000
9. Administrative overheads	44,999,522,882	37,416,000,000	32,535,000,000
10. Net operating profit	25,936,229,741	21,078,000,000	18,330,000,000
11. Other income	2,260,309,648	0	0
12. Other expenses	2,224,309,648	0	0
13. Other profit /(loss)	36,000,000	0	0
14. Total accounting profit before tax	25,972,229,741	21,078,000,000	18,330,000,000
15. Current corporate income tax	2,258,664,764	2,635,000,000	2,291,000,000
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	23,713,564,977	18,443,000,000	16,039,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2012	FY2011	FY2010	Average Industry
Current liquidity ratio	0.93	1.00	1.03	1.80
Quick liquidity ratio	0.49	0.38	0.47	1.12
Inventory circle	2.51	2.59	2.51	3.56
Average receive period	70.70	56.69	63.16	117.46
Utilizing asset performance	1.32	1.35	1.27	1.10
Liability by total assets	71.58	64.80	63.45	50.87
Liability by owner's equity	251.83	184.11	173.60	169.03
Ebit / Total assets (ROA)	10.56	16.05	15.04	12.05
Ebit / Owner's equity (ROE)	37.16	45.61	41.16	27.25
Ebit / Total revenue (NPM)	8.02	11.86	11.86	12.32
Gross profit / Total revenue (GPM)	39.04	30.30	30.30	29.69
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Good
Liquidity	Low/Medium
Payment status	Above Average
Financial Situation	Above Average
Development trend	Positive
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	T/T (main), L/C
Sale Methods	Retailer and Wholesaler
Public opinion	Good

INTERPRETATION ON THE SCORES

The subject was originally established in 1988 with former name "Pharmaceutical & Veterinary Enterprise" following the decision No. 25/NN/TCCB/QD. In 1999, the company was equitized under the decision No. 53/QD/BNN-TCCB issued by Ministry of Agriculture and Rural Development and renamed to “Pharmaceutical And Veterinary Material Joint Stock Company”. The subject has business registration No. 055931 issued by Ha Noi Department of Planning and Investment. Its tax code is 01001114258. Currently, the company has total chartered capital of VND 30 billion.

The head office is located at No.88, Truong Chinh Street, Dong Da district, Ha Noi city, Vietnam. The subject has branches in Ho Chi Minh City, Ha Tinh province, Vinh Phuc province; Can Tho province, Da Nang cities. It also has some animal clinics in Ha Noi city and Da Nang city. Currently, the subject has about 410 employees and staffs working in fair condition of premises, facilities and labor treatments.

HANVET is specializing in manufacturing of veterinary products. Its products are manufactured at its subsidiaries which have named Hanvet Pharmaceutical Company Limited (GMP - WHO factory) and Ha Linh Joint Stock Company. It also acts as a distributor in animal nutrition, feed additives and raw materials supplying to animal feed industry, representing as exclusive distributor in Vietnam for many world manufacturers. Recently, the subject has expanded its operation to hotel service. In interview, Ms. Mai Thi Thanh Hoa - Chief Accountant said the subject imports materials from China, India, Germany, Holland, Italia, etc (mainly in China). Its products usually are consumed in domestic market. It has about 900 agencies that distribute its products to domestic market. It also exports its products to foreign countries such as: Myanmar, Bangladesh, Sri Lanka and Malaysia etc.

Financially, the subject's business situation is above average. The total revenue increased year after year (chart). In 2012, the subject gained VND 323,972 million in total sales; rose 14.09% in comparison with 2011 and The profit after tax was VND 23,714 million; increased nearly 28.58% in comparison with 2011. In 2011, the subject gained VND 283,958 million in total sales; rose 15% and 87.5% in comparison with 2010 and 2009 in turn. The profit after tax was VND 18,443 million; increased nearly 15% in comparison with 2010 and higher many times than 2009. Although economic situation seem difficult recently, the subject still overcame challenges and get high profit. However, its liquidity ratios were rather humble. The company should improve them to ensure its financial commitments.

Through discussions with Ms. Mai Thi Thanh Hoa - Chief accountant of the subject, said that revenue of subjects reached about over VND 70 billion in 3 month fist 2013.

Shortly, the subject scale is rather large. It has reputation, experience in the market. Its future prospect is bright. The subject has capacity to meet small and medium financial commitment. No caution needed for small-normal business transaction with the subject.

------------ APPENDIX 1 ----------

INDUSTRY DATA
Industry code	GDP growth speed by price compared with 1994 (%)		Total enterprises 2010		Total employees 2011 (Thous.pers.)	Annual average capital of enterprises 2010 (billion dongs)
	2012	2011
Agriculture, Forestry and Fishing	2.72	4.00	8,887		24,362.9	95,227
Industry and Construction	4.52	5.53	95,217		10,718.9	3,641,376
Trade and Services	6.42	6.69	187,195		15,270.2	6,957,082
ECONOMIC INDICATORS
			2012	2011		2010
Population (Million person)			88.78	87.84		86.93
Gross Domestic Products (USD billion)			136	119		102.2
GDP Growth (%)			5.03	5.89		6.78
GDP Per Capita (USD/person/year)			1,540	1,300		1,160
Inflation (% Change in Composite CPI)			9.21	18.58		11.75
State Budget Deficit compared with GDP (%)			4.8	4.9		5.8
SERVICE TRADE PERFORMANCE
Billion USD			2012	2011		2010
Exports			114.6	96.3		72.2
Imports			114.3	105.8		84.8
Trade Balance			0.3	-9.5		-12.6

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.94
UK Pound	1	Rs.84.03
Euro	1	Rs.70.72

INFORMATION DETAILS

Report Prepared by :

NLM

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.