MIRA INFORM REPORT

Report Date :

17.10.2013

IDENTIFICATION DETAILS

Name :	ZEON ASIA PTE LTD
Registered Office :	331, North Bridge Road, 20-01/02, Odeon Towers, 188720,
Country :	Singapore
Financials (as on) :	31.12.2012
Date of Incorporation :	04.12.1997
Com. Reg. No.:	199708247-R
Legal Form :	Private Limited
Line of Business :	Wholesale of rubber
No. of Employees :	10

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 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Singapore	A1	A1

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

SINGAPORE - ECONOMIC OVERVIEW

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. Real GDP growth averaged 8.6% between 2004 and 2007. The economy contracted 0.8% in 2009 as a result of the global financial crisis, but rebounded 14.8% in 2010, on the strength of renewed exports, before slowing to 5.2% in 2011 and 1.3% in 2012, largely a result of soft demand for exports during the second European recession. Over the longer term, the government hopes to establish a new growth path that focuses on raising productivity, which has sunk to an average of about 1.0% in the last decade. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

Source : CIA

* Adopted abbreviations :	SC - Subject Company (the company enquired by you)
	N/A - Not Applicable

EXECUTIVE SUMMARY

REGISTRATION NO.	:	199708247-R
COMPANY NAME	:	ZEON ASIA PTE LTD
FORMER NAME	:	N/A
INCORPORATION DATE	:	04/12/1997
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	331, NORTH BRIDGE ROAD, 20-01/02, ODEON TOWERS, 188720, SINGAPORE.
BUSINESS ADDRESS	:	331 NORTH BRIDGE ROAD, #20-01/02, ODEON TOWERS, 188720, SINGAPORE.
TEL.NO.	:	65-63322338
FAX.NO.	:	65-63322339
CONTACT PERSON	:	HIROYUKI HIRAKAWA ( DIRECTOR )
PRINCIPAL ACTIVITY	:	WHOLESALE OF RUBBER (INCLUDING RUBBER BROKERS)
ISSUED AND PAID UP CAPITAL	:	500,000.00 ORDINARY SHARE, OF A VALUE OF SGD 500,000.00
SALES	:	USD 127,081,773 [2012]
NET WORTH	:	USD 8,387,805 [2012]
STAFF STRENGTH	:	10 [2013]
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	FAIR
PAYMENT	:	AVERAGE
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	N/A
CURRENCY EXPOSURE	:	N/A
GENERAL REPUTATION	:	SATISFACTORY
INDUSTRY OUTLOOK	:	AVERAGE GROWTH

HISTORY / BACKGROUND

The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The SC is principally engaged in the (as a / as an) wholesale of rubber (including rubber brokers).

The immediate and ultimate holding company of the SC is ZEON CORPORATION, a company incorporated in JAPAN.

The major shareholder(s) of the SC are shown as follows :

Name	Address	IC/PP/Loc No	Shareholding	(%)
ZEON CORPORATION	SHIN MARUNOUCHI CENTRE BUILDING, 1-6-2 MARUNOUCHI, CHIYODA-KU, TOKYO 100-8246, JAPAN.	T05UF0352	500,000.00	100.00
			---------------	------
			500,000.00	100.00
			============	=====

+ Also Director

The SC interest in other companies (Subsidiaries/Associates) are shown as follow :

Local No	Country	Company	(%)	As At
810709A	MALAYSIA	ZEON ASIA MALAYSIA SDN. BHD.	100.00	31/12/2012

DIRECTORS

DIRECTOR 1

Name Of Subject	:	HIROYUKI HIRAKAWA
Address	:	63, PATERSON ROAD, 11-05, PATERSON, THE, 238539, SINGAPORE.
IC / PP No	:	G5106977W
Nationality	:	JAPANESE
Date of Appointment	:	01/02/2011

DIRECTOR 2

Name Of Subject	:	YOSHIMASA FUSHIMI
Address	:	2-40-4, NOGATA, NAKANO-KU, TOKYO-TO, JAPAN.
IC / PP No	:	TH7302764
Nationality	:	JAPANESE
Date of Appointment	:	01/09/2005

DIRECTOR 3

Name Of Subject	:	TOSHIHIRO INOUE
Address	:	6-11-22, HONFUJISAWA, FUJISAWA, KANAGAWA, 251-0875, JAPAN.
IC / PP No	:	TH9673362
Nationality	:	JAPANESE
Date of Appointment	:	27/06/2013

MANAGEMENT

1)	Name of Subject	:	HIROYUKI HIRAKAWA
	Position	:	DIRECTOR

AUDITOR

Auditor	:	ERNST & YOUNG LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	NG LEE ING
	IC / PP No	:	S6866255I
	Address	:	11, JALAN BATU, 09-144, 431011, SINGAPORE.

BANKING

No Banker found in our databank.

ENCUMBRANCE (S)

No encumbrance was found in our databank at the time of investigation.

LEGAL CHECK AGAINST SC

* A check has been conducted in our databank againt the SC whether the subject has been involved in any litigation.

No legal action was found in our databank.

No winding up petition was found in our databank.

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	N/A
Overseas	:	N/A

The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT
Prompt 0-30 Days	[	]	Good 31-60 Days	[	]	Average 61-90 Days	[	X	]
Fair 91-120 Days	[	]	Poor >120 Days	[	]

CLIENTELE

Local	:	N/A
Overseas	:	N/A

The SC refused to disclose its clientele.

OPERATIONS

Goods Traded

:

RUBBER

Total Number of Employees:
YEAR	2013
GROUP	N/A
COMPANY	10

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) wholesale of rubber (including rubber brokers).

The SC refused to disclose its operation.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-63322338
Match	:	N/A
Address Provided by Client	:	331 NORTH BRIDGE ROAD, NO. 20-1/02 OPEON TOWERS SINGAPORE 188720
Current Address	:	331 NORTH BRIDGE ROAD, #20-01/02, ODEON TOWERS, 188720, SINGAPORE.
Match	:	NO

Other Investigations

On 14th October 2013 we contacted one of the staff from the SC and she provided some information on the SC.

The address provided is incorrect.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Decreased	[	22.22%	]
Profit/(Loss) Before Tax	:	Decreased	[	41.74%	]
Return on Shareholder Funds	:	Acceptable	[	14.50%	]
Return on Net Assets	:	Acceptable	[	17.11%	]
The lower turnover could be due to the intense market competition.The SC's profit fell sharply because of the high operating costs incurred. The SC's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Favourable	[	4 Days	]
Debtor Ratio	:	Favourable	[	49 Days	]
Creditors Ratio	:	Unfavourable	[	81 Days	]
The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the SC. The unfavourable creditors' ratio could be due to the SC taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies.
Liquidity
Liquid Ratio	:	Favourable	[	1.23 Times	]
Current Ratio	:	Unfavourable	[	1.29 Times	]
A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Nil	[	0.00 Times	]
Gearing Ratio	:	Favourable	[	0.00 Times	]
The SC's interest cover was nil as it did not pay any interest during the year. The SC had no gearing and hence it had virtually no financial risk. The SC was financed by its shareholders' funds and internally generated fund. During the economic downturn, the SC, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.
Overall Assessment :
The SC's performance deteriorated over the years with lower turnover and profit. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC did not make any interest payment during the year. The SC was dependent on its shareholders' funds to finance its business needs. The SC was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.
Overall financial condition of the SC : FAIR

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators :	2008	2009	2010	2011	2012
Population (Million)	4.84	4.98	5.08	5.18	5.31
Gross Domestic Products ( % )	1.5	<0.8>	14.5	4.9	1.3
Consumer Price Index	6.6	0.6	2.8	5.2	4.6
Total Imports (Million)	450,892.6	356,299.3	423,221.8	459,655.1	474,554.0
Total Exports (Million)	476,762.2	391,118.1	478,840.7	514,741.2	510,329.0
Unemployment Rate (%)	2.2	3.2	2.2	2.1	2.0
Tourist Arrival (Million)	10.12	9.68	11.64	13.17	14.37
Hotel Occupancy Rate (%)	81.0	75.8	85.6	86.5	86.4
Cellular Phone Subscriber (Million)	1.31	1.37	1.43	1.50	1.52
Registration of New Companies (No.)	25,327	26,414	29,798	32,317	31,892
Registration of New Companies (%)	<2.2>	4.3	12.8	8.5	<1.3>
Liquidation of Companies (No.)	10,493	22,393	15,126	19,005	17,218
Liquidation of Companies (%)	13.7	113.4	<32.5>	25.6	9.4
Registration of New Businesses (No.)	24,850	26,876	23,978	23,494	24,788
Registration of New Businesses (%)	0.36	8.15	<10.78>	2.02	5.51
Liquidation of Businesses (No.)	21,150	23,552	24,211	23,005	22,489
Liquidation of Businesses (%)	<0.8>	11.4	2.8	<5>	<2.2>
Bankruptcy Orders (No.)	2,326	2,058	1,537	1,527	1,748
Bankruptcy Orders (%)	<15.9>	<11.5>	<25.3>	<0.7>	14.5
Bankruptcy Discharges (No.)	1,500	3,056	2,252	1,391	1,881
Bankruptcy Discharges (%)	<7.7>	103.7	<26.3>	<38.2>	35.2
INDUSTRIES ( % of Growth ) :
Agriculture
Production of Principal Crops	<0.32>	3.25	<0.48>	4.25	3.64
Fish Supply & Wholesale	<6.31>	<1.93>	<10.5>	12.10	<0.5>
Manufacturing *	74.6	71.5	92.8	100.0	100.3
Food, Beverages & Tobacco	94.8	90.4	96.4	100.0	103.5
Textiles	180.1	145.9	122.1	100.0	104.0
Wearing Apparel	334.6	211.0	123.3	100.0	92.1
Leather Products & Footwear	128.2	79.5	81.8	100.0	98.6
Wood & Wood Products	132.0	101.4	104.0	100.0	95.5
Paper & Paper Products	101.0	95.4	106.1	100.0	97.4
Printing & Media	118.2	100.9	103.5	100.0	93.0
Crude Oil Refineries	113.1	96.4	95.6	100.0	99.4
Chemical & Chemical Products	84.5	80.3	97.6	100.0	100.5
Pharmaceutical Products	43.7	49.1	75.3	100.0	109.7
Rubber & Plastic Products	120.1	101.2	112.3	100.0	96.5
Non-metallic Mineral	96.5	91.9	92.5	100.0	98.2
Basic Metals	109.8	92.6	102.2	100.0	90.6
Fabricated Metal Products	101.3	90.8	103.6	100.0	104.3
Machinery & Equipment	65.0	57.3	78.5	100.0	112.9
Electrical Machinery	81.7	86.8	124.1	100.0	99.3
Electronic Components	93.1	85.2	113.6	100.0	90.6
Transport Equipment	102.0	96.0	94.0	100.0	106.3
Construction	45.90	<36.9>	14.20	20.50	28.70
Real Estate	<11.2>	1.4	21.3	25.4	31.9
Services
Electricity, Gas & Water	<1.3>	1.70	4.00	7.00	6.30
Transport, Storage & Communication	11.60	3.90	12.80	7.40	5.30
Finance & Insurance	<5.9>	<16.4>	<0.4>	8.90	0.50
Government Services	17.40	4.50	9.70	6.90	6.00
Education Services	0.50	0.10	<0.9>	<1.4>	0.30
* Based on Index of Industrial Production (2011 = 100)
(Source : Department of Statistics)

INDUSTRY ANALYSIS

INDUSTRY :	TRADING
The wholesale and retail trade sector contracted by 1.5% in the fourth quarter of 2012, extending the 0.2% decline in the preceding quarter. For the whole of 2012, the sector declined by 0.7%, reversing the 1.6% growth in 2011. The sector was weighed down primarily by the wholesale trade segment. In 2012, the wholesale trade segment contracted by 1.0%, a reversal from the 1.4% growth in 2011. Growth of the retail trade segment also moderated to 2.0%, from 3.2% in the year 2011.
The domestic wholesale trade index grew by 1.2% in the fourth quarter of 2012, an improvement from the 5.4% decline in the third quarter. This was partly due to an increase in the sales of chemicals & chemical products and ship chandlers & bunkering. For the full year of 2012, the domestic wholesale trade index contracted by 2.2%, extending the 1.7% decline in 2011. The foreign wholesale trade index grew by 8.6% in the fourth quarter, an increase from the 6.6% growth in the third quarter. The expansion was partly due to resilient sales of petroleum & petroleum products. For the whole of 2012, the foreign wholesale trade index expanded by 9.1%, faster than the 4.3% increase in 2011.
In the fourth quarter of 2012, retail sales volume declined by 2.0%, extending the 0.3% decline in the third quarter. Excluding motor vehicles, retail sales volume grew by 0.4%, a slight moderation compared to the 1.5% gain in the third quarter of 2012. The sales volume of motor vehicles fell by 11% in the fourth quarter of 2012, after contracting by 6.1% in the third quarter. The sales of several discretionary items also declined in the fourth quarter. Besides, the sales of optical goods & books in 2012 fell by 3.6%, while the sales of telecommunications apparatus & computers declined by 1.4%.
For 2012 as a whole, retail sales volume grew by 1.3%, compared to the 2.0% expansion in 2011. Excluding motor vehicle sales, the increase in retail sales volume also moderated from 5.4% in 2011 to 1.7% in 2012. Medical goods & toiletries registered the largest increase (9.3%) in sales, followed by telecommunications apparatus & computers (6.9%). By contrast, the sales of watches & jewellery (-2.2%) and optical goods & books (-3.6%) declined.
OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1997, the SC is a Private Limited company, focusing on wholesale of rubber (including rubber brokers). Having been in the industry for over a decade, the SC has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment.

Being a small company, the SC's business operation is supported by 10 employees. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.

The SC's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. Return on shareholders' funds of the SC was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the SC virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at USD 8,387,805, the SC should be able to maintain its business in the near terms.

Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises.

The SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts.

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry.

Based on the above condition, we recommend credit be granted to the SC promptly.

PROFIT AND LOSS ACCOUNT

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH SINGAPORE FINANCIAL REPORTING STANDARDS.

ZEON ASIA PTE LTD

Financial Year End	2012-12-31	2011-12-31
Months	12	12
Consolidated Account	Company	Company
Audited Account	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES
Financial Type	FULL	FULL
Currency	USD	USD
TURNOVER	127,081,773	163,382,170
Other Income	40,591	56,402
	----------------	----------------
Total Turnover	127,122,364	163,438,572
Costs of Goods Sold	<122,289,650>	<157,046,047>
	----------------	----------------
Gross Profit	4,832,714	6,392,525
	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	1,435,557	2,464,176
	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	1,435,557	2,464,176
Taxation	<219,590>	<422,089>
	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	1,215,967	2,042,087
	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	7,370,542	6,728,455
	----------------	----------------
As restated	7,370,542	6,728,455
	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	8,586,509	8,770,542
DIVIDENDS - Ordinary (paid & proposed)	<500,000>	<1,400,000>
	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	8,086,509	7,370,542
	=============	=============

BALANCE SHEET

ZEON ASIA PTE LTD

ASSETS EMPLOYED:
FIXED ASSETS	13,411	31,808
LONG TERM INVESTMENTS/OTHER ASSETS
Subsidiary companies	320,793	-
	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	320,793	-
INTANGIBLE ASSETS
Others	45,312	50,976
	----------------	----------------
TOTAL INTANGIBLE ASSETS	45,312	50,976
	----------------	----------------
TOTAL LONG TERM ASSETS	379,516	82,784
CURRENT ASSETS
Stocks	1,542,115	855,225
Trade debtors	17,207,120	26,582,503
Other debtors, deposits & prepayments	115,594	104,920
Short term deposits	4,000,000	3,500,000
Amount due from holding company	11,806,974	8,000,000
Amount due from related companies	8,156	8,083
Cash & bank balances	1,114,027	2,136,965
	----------------	----------------
TOTAL CURRENT ASSETS	35,793,986	41,187,696
	----------------	----------------
TOTAL ASSET	36,173,502	41,270,480
	=============	=============
CURRENT LIABILITIES
Trade creditors	27,267,311	32,971,054
Other creditors & accruals	279,166	258,760
Amounts owing to related companies	12,569	12,861
Provision for taxation	225,045	354,361
	----------------	----------------
TOTAL CURRENT LIABILITIES	27,784,091	33,597,036
	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	8,009,895	7,590,660
	----------------	----------------
TOTAL NET ASSETS	8,389,411	7,673,444
	=============	=============
SHARE CAPITAL
Ordinary share capital	301,296	301,296
	----------------	----------------
TOTAL SHARE CAPITAL	301,296	301,296
RESERVES
Retained profit/(loss) carried forward	8,086,509	7,370,542
	----------------	----------------
TOTAL RESERVES	8,086,509	7,370,542
	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	8,387,805	7,671,838
LONG TERM LIABILITIES
Deferred taxation	1,606	1,606
	----------------	----------------
TOTAL LONG TERM LIABILITIES	1,606	1,606
	----------------	----------------
	8,389,411	7,673,444
	=============	=============

FINANCIAL RATIO

ZEON ASIA PTE LTD

TYPES OF FUNDS
Cash	5,114,027	5,636,965
Net Liquid Funds	5,114,027	5,636,965
Net Liquid Assets	6,467,780	6,735,435
Net Current Assets/(Liabilities)	8,009,895	7,590,660
Net Tangible Assets	8,344,099	7,622,468
Net Monetary Assets	6,466,174	6,733,829
BALANCE SHEET ITEMS
Total Borrowings	0	0
Total Liabilities	27,785,697	33,598,642
Total Assets	36,173,502	41,270,480
Net Assets	8,389,411	7,673,444
Net Assets Backing	8,387,805	7,671,838
Shareholders' Funds	8,387,805	7,671,838
Total Share Capital	301,296	301,296
Total Reserves	8,086,509	7,370,542
LIQUIDITY (Times)
Cash Ratio	0.18	0.17
Liquid Ratio	1.23	1.20
Current Ratio	1.29	1.23
WORKING CAPITAL CONTROL (Days)
Stock Ratio	4	2
Debtors Ratio	49	59
Creditors Ratio	81	77
SOLVENCY RATIOS (Times)
Gearing Ratio	0.00	0.00
Liabilities Ratio	3.31	4.38
Times Interest Earned Ratio	0.00	0.00
Assets Backing Ratio	27.69	25.30
PERFORMANCE RATIO (%)
Operating Profit Margin	1.13	1.51
Net Profit Margin	0.96	1.25
Return On Net Assets	17.11	32.11
Return On Capital Employed	17.02	31.90
Return On Shareholders' Funds/Equity	14.50	26.62
Dividend Pay Out Ratio (Times)	0.41	0.69
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.69
UK Pound	1	Rs.98.59
Euro	1	Rs.83.67

INFORMATION DETAILS

Report Prepared by :

NIS

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.