MIRA INFORM REPORT

Report Date :

31.10.2013

IDENTIFICATION DETAILS

Name :	PHU TAI JSC
Registered Office :	278 Nguyen Thi Dinh St Nguyen Van Cu Ward, Quy Nhon, Binh Dinh
Country :	Vietnam
Financials (as on) :	December 2012
Date of Incorporation :	30.10.2008
Legal Form :	Joint Stock Company
Line of Business :	Manufacturer of Plywood, Timber & Wood Products
No. of Employees :	2,200

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)
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 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 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

REGISTERED NAME & COMPANY SUMMARY

Organization Name	:	PHU TAI JSC
Address	:	278 Nguyen Thi Dinh St Nguyen Van Cu Ward, Quy Nhon, Binh Dinh
Country	:	Vietnam
Phone (S)	:	[+84] 56-3847668
Facsimile	:	[+84] 56-3847246
Email	:	phutaico@dng.vnn.vn
Website	:	http://www.phutai.com.vn
Primary Business Activity	:	Manufacturer
Key Industry	:	Plywood, Timber & Wood Products

Registered Legal Address

:

278 Nguyen Thi Dinh St Nguyen Van Cu Ward, Quy Nhon, Binh Dinh

Operational Address

:

278 Nguyen Thi Dinh St Nguyen Van Cu Ward, Quy Nhon, Binh Dinh

Trading Name

:

PHUTAICO

Name History

:

Business Entity Name	Effective Date
PHU TAI CO	18 Apr, 1996
PHU TAI JSC	30 Dec, 2004

Issuing Authority

:

Dept. of Planning & Investment - Binh Dinh

License Number

:

4100259236

License Status

:

License exists - Normal.

Legal Form - Category

:

Joint Stock Company

Legal Form

:

Joint Stock Company

Legal Form - Abbreviation

:

JSC

Operational Status of Business

:

Normal

Date of Registration

:

30 Oct, 2008

Employees

:

2,200

Capital

:

US$ 5,684,705

DIRECTORS/MANAGEMENT

Key Person

Legal Title	:	Managing Director
Name	:	Mr. Le Vy
Nationality	:	Vietnamese

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Mr. Tran Thanh Cung	Vietnamese	Deputy Managing Director	-
2	Mr. Phan Quoc Hoai	Vietnamese	Deputy Managing Director	-
3	Mr. Doan Minh Son	Vietnamese	Chief Accountant	-
4	Mr. Le Van Thao	Vietnamese	Deputy Managing Director	-
5	Mr. Le Vy	Vietnamese	Managing Director	-

Management Details - 1

Personal Unique Identifier	:	MI03122876
Name	:	Mr. Tran Thanh Cung
Date of Birth	:	1957

Management Details - 2

Personal Unique Identifier	:	MI03122877
Name	:	Mr. Phan Quoc Hoai
Date of Birth	:	1957

Management Details - 3

Personal Unique Identifier	:	MI03122880
Name	:	Mr. Doan Minh Son
Date of Birth	:	1971

Management Details - 4

Personal Unique Identifier	:	MI03122879
Name	:	Mr. Le Van Thao
Date of Birth	:	1971

Management Details - 5

Personal Unique Identifier	:	MI02226999
Name	:	Mr. Le Vy
Date of Birth	:	1956

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03122879
Name	:	Mr. Le Van Thao
Date of Birth	:	1971
Nationality	:	Vietnamese
2
Personal Unique Identifier	:	MI02226999
Name	:	Mr. Le Vy
Date of Birth	:	1956
Nationality	:	Vietnamese
3
Personal Unique Identifier	:	MI03122877
Name	:	Mr. Phan Quoc Hoai
Date of Birth	:	1957
Nationality	:	Vietnamese
4
Personal Unique Identifier	:	MI03122876
Name	:	Mr. Tran Thanh Cung
Date of Birth	:	1957
Nationality	:	Vietnamese

NEGATIVE INFORMATION

REPUTATION

Reference checking for the purpose of establishing the PHU TAI JSC's reputation within the respective industry failed to reveal any adverse information.

NEGA-SCAN - ADVERSE DATA MONITORING

DISHONORED CHECKS

No Record Found

DEBT	No Record Found

LITIGATION

No Record Found

PERFORMANCE DEFAULTS

No Record Found

ADVERSE LOCAL MEDIA COVERAGE / ADVERSE FILING HISTORY

No Record Found

SHARE & SHARE CAPITAL INFORMATION

CAPITAL (Currency: VND - Vietnam Dong)

Authorized Capital

:

120,006,460,000

Date	Authorized Capital - History
2010	85,998,000,000
2011	120,000,000,000
Dec, 2011	120,006,460,000

SHAREHOLDERS

Total number of shareholders	:	n/a
Total number of shares	:	n/a

Currency

:

VND - Vietnam Dong

No.	Shareholders	Country	Shares
			Number	Amount (VND)	%
1	Undisclosed Shareholders	n/a	n/a	n/a	n/a
2	MINISTRY OF DEFENSE	Vietnam	n/a	n/a	13.00
3	Mr. Le Vy	Vietnam	n/a	n/a	7.00
4	Mr. Le Van Thao	Vietnam	n/a	n/a	5.00
Total			n/a	n/a	25.00

Based on corporate statutory laws / regulations in Vietnam, there is no requirement for public disclosure of Shareholders. In this case, the Shareholders information was supplied by the Subject Business Entity.
However in the absence of data normally obtained from local Statutory Authorities, it is not possible to verify the accuracy of data supplied and hence is provided as reference ONLY.

PAYMENT INFORMATION

DOMESTIC SALES & PURCHASES

Annual Sales Analysis	Percentage
Domestic Sales	60%
International Sales (Export)	40%

Annual Purchases Analysis	Percentage
Local Purchases	40%
Imports	60%

PAYMENT TERMS

Selling

Type	Terms
Local	Cash on delivery (COD) Credit - Unsecured 30~90 days
Export	Letter of Credit (At-sight) Telegraphic Transfer (T/T) - Received at time of transaction

Purchasing

Type	Terms
Local	Cash on delivery (COD) Credit - Unsecured 30~90 days
Import	Letter of Credit (At-sight) Telegraphic Transfer (T/T) - Executed at time of transaction

GROUP STRUCTURE & AFFILIATED COMPANIES

N/a

FINANCIAL INFORMATION

Financials - Summary  (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2010 Annual	83,450,334	30,263,828	1,981,888
2011 Annual	85,784,590	30,063,418	2,822,468
2012 Annual	83,507,630	35,674,052	3,387,714

Sales Trend – Analysis

2003	2004	2005	2006	2007	2008	2009	2010	2011	2012
-	-	-	-	-	-	-	-

FINANCIAL STATEMENT - DETAILED

Balance Sheet

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2010 Annual	2011 Annual	2012 Annual
Current Assets	418,831,000,000	430,747,000,000	540,800,000,000
Non Current Assets	171,011,000,000	195,474,000,000	202,100,000,000
Non Current Liabilities	23,937,000,000	25,675,000,000	18,213,000,000
Share Capital	85,998,000,000	120,006,000,000	120,006,000,000
Other long term assets
Total Assets	589,842,000,000	626,221,000,000	742,900,000,000
Total Liabilities	451,185,000,000	434,186,000,000	532,402,000,000
Current Liabilities	427,248,000,000	408,511,000,000	514,189,000,000
Long term liabilities
Shareholders Funds	138,657,000,000	192,035,000,000	210,498,000,000
Assets
Current assets & short term investments	418,831,000,000	430,747,000,000	540,800,000,000
Cash & cash equivalents	43,023,000,000	36,961,000,000	98,835,000,000
Cash	43,023,000,000	36,961,000,000	47,302,000,000
Cash equivalents	-	-	51,533,000,000
Short term investments	4,242,000,000	3,801,000,000	4,241,000,000
Short term securities investments	9,071,000,000	9,191,000,000	8,359,000,000
Provision for short term investments	(4,829,000,000)	(5,390,000,000)	(4,118,000,000)
Accounts receivable	252,356,000,000	211,966,000,000	212,359,000,000
Accounts receivable trade	238,619,000,000	195,280,000,000	204,286,000,000
Trade prepayment	12,774,000,000	18,408,000,000	17,516,000,000
Others receivables	1,072,000,000	376,000,000	639,000,000
Provision for bad debts	(109,000,000)	(2,098,000,000)	(10,082,000,000)
i.Inventories	107,705,000,000	166,393,000,000	207,472,000,000
ii.Inventories	110,596,000,000	166,936,000,000	207,674,000,000
Provision for decline in inventory	(2,891,000,000)	(543,000,000)	(202,000,000)
i.Other short term asset	11,505,000,000	11,626,000,000	17,893,000,000
Prepaid expenses	3,350,000,000	2,743,000,000	2,839,000,000
VAT deductible	6,147,000,000	7,335,000,000	13,211,000,000
Other tax receivables	-	-	4,000,000
ii.Other short term asset	2,008,000,000	1,548,000,000	1,839,000,000
Long term assets	171,011,000,000	195,474,000,000	202,100,000,000
Accounts of long term receivable	-	1,014,000,000	721,000,000
Other long term receivables	-	1,014,000,000	721,000,000
Fixed assets	135,561,000,000	165,862,000,000	193,232,000,000
Tangible fixed assets	126,665,000,000	150,965,000,000	155,029,000,000
i.Cost	261,826,000,000	319,282,000,000	346,921,000,000
i.Accumulated depreciation	135,161,000,000	168,317,000,000	191,892,000,000
Intangible fixed assets	5,221,000,000	4,844,000,000	5,100,000,000
ii.Cost	5,882,000,000	5,882,000,000	6,549,000,000
ii.Accumulated depreciation	661,000,000	1,038,000,000	1,449,000,000
Construction in progress	3,675,000,000	10,053,000,000	33,103,000,000
Long term investments	30,802,000,000	18,663,000,000	-
Other long term investments	15,150,000,000	24,817,000,000	-
Provision for long term investments	(4,145,000,000)	(6,154,000,000)	-
i.Other long term assets	4,648,000,000	9,935,000,000	8,147,000,000
Long term prepayments	3,526,000,000	6,719,000,000	4,836,000,000
Asset of income tax delay	422,000,000	235,000,000	136,000,000
ii.Other long term assets	700,000,000	2,981,000,000	3,175,000,000
Total assets	589,842,000,000	626,221,000,000	742,900,000,000
Liabilities & Owner's Equity
Liabilities	451,185,000,000	434,186,000,000	532,402,000,000
Current liabilities	427,248,000,000	408,511,000,000	514,189,000,000
Short term borrowings	318,931,000,000	282,078,000,000	360,507,000,000
Accounts payables-trade	55,250,000,000	65,016,000,000	75,671,000,000
Advances from customers	8,181,000,000	8,553,000,000	14,557,000,000
Taxes and payable to state budget	4,951,000,000	8,403,000,000	13,043,000,000
Payable to employees	29,796,000,000	34,440,000,000	36,000,000,000
Accrued expenses payable	6,496,000,000	6,964,000,000	7,610,000,000
Other payables	3,643,000,000	3,057,000,000	1,351,000,000
i.Bonus and welfare funds	2,134,000,000	-	5,450,000,000
Long term liabilities	23,937,000,000	25,675,000,000	18,213,000,000
Long term other payables	-	118,000,000	248,000,000
Long term borrowings	23,608,000,000	25,023,000,000	17,965,000,000
Provision funds for unemployment	329,000,000	534,000,000	-
i.Owner's equity	138,657,000,000	184,676,000,000	202,319,000,000
ii.Owner's equity	136,523,000,000	180,487,000,000	202,319,000,000
Business capital	85,998,000,000	120,006,000,000	120,006,000,000
Share capital's surplus	8,370,000,000	(94,000,000)	(94,000,000)
Other owner's equity	-	-	20,878,000,000
Foreign exchange differences	765,000,000	407,000,000	-
Business development funds	-	1,267,000,000	1,787,000,000
Financial reserved funds	2,762,000,000	4,450,000,000	6,730,000,000
Retained earnings	38,628,000,000	54,451,000,000	53,012,000,000
Budget sources	2,134,000,000	4,189,000,000	-
ii.Bonus and welfare funds	-	4,189,000,000	-
Minority Interest	-	7,359,000,000	8,179,000,000
Total resources	589,842,000,000	626,221,000,000	742,900,000,000

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2010 Annual	2011 Annual	2012 Annual
Turnover	1,626,447,000,000	1,786,893,000,000	1,739,018,000,000
Profit (Loss) Before Tax	50,113,000,000	73,138,000,000	87,280,000,000
Profit After Tax attributable to Shareholders	38,627,000,000	58,792,000,000	70,548,000,000
Gross sales	1,626,447,000,000	1,786,893,000,000	1,739,018,000,000
Less deductions	3,642,000,000	2,540,000,000	490,000,000
Net income	1,622,805,000,000	1,784,353,000,000	1,738,528,000,000
Cost of goods sold	1,455,408,000,000	1,554,167,000,000	1,520,094,000,000
Gross margin	167,397,000,000	230,186,000,000	218,434,000,000
Income from financial activities	7,272,000,000	7,531,000,000	5,855,000,000
Expenses from financial activities	38,195,000,000	55,878,000,000	31,548,000,000
In which: Interest expenses	35,669,000,000	45,318,000,000	30,483,000,000
Selling expenses	50,820,000,000	63,830,000,000	67,539,000,000
General & administration expenses	39,318,000,000	49,311,000,000	58,072,000,000
Net income from operating activities	46,336,000,000	68,698,000,000	67,130,000,000
Extraordinary income	4,922,000,000	7,357,000,000	23,189,000,000
Extraordinary expenses	1,145,000,000	2,917,000,000	3,039,000,000
Extraordinary gains	3,777,000,000	4,440,000,000	20,150,000,000
Net profit before tax	50,113,000,000	73,138,000,000	87,280,000,000
Income tax	11,307,000,000	14,159,000,000	16,633,000,000
Income tax delay	(179,000,000)	(187,000,000)	(99,000,000)
Net profit after tax	38,627,000,000	58,792,000,000	70,548,000,000

Financial Ratios

Financial Highlights	2010 Annual	2011 Annual	2012 Annual
Growth %
Year-on-Year Growth	-	9.86	(2.68)
Profitability
Profit Margin (%)	2.37	3.29	4.06
Return on Equity (%)	27.86	30.62	33.51
Return on Assets (%)	6.55	9.39	9.50
Leverage
Total Debt Equity (Times)	3.25	2.26	2.53
Current Debt Equity (Times)	3.08	2.13	2.44
Long Term Debt to Equity	0.17	0.13	0.09
Total Asset To Total Equity	4.25	3.26	3.53
Asset Management
Total Assets Turnover (Times)	2.76	2.85	2.34
Fixed Assets Turnover (Times)	9.51	9.14	8.60
Liquidity
Current Ratio	0.98	1.05	1.05

Based on the corporate laws of Vietnam, legal entities which are Joint Stock Company are not required to make public disclosure of their annual financials. Although financials were obtained for reference.

FOREIGN EXCHANGE RATES

Today's Exchange rate

:

1.00 VND Vietnam Dong

=

0.000047 USD United States Dollars

ADDITIONAL INFORMATION

Country	:	Vietnam
Business Entity Name	:	PHU TAI JSC
Primary Business Activity	:	Manufacturer
Primary Industry	:	Plywood, Timber & Wood Products
Office Contact Details
Operating Address	:	278 Nguyen Thi Dinh St Nguyen Van Cu Ward, Quy Nhon, Binh Dinh
Tel	:	[+84] 56-3847668
	:	[+84] 56-3847078
Fax	:	[+84] 56-3847246
	:	[+84] 56-3847556
Email	:	phutaico@dng.vnn.vn phutai380@dng.vnn.vn
Website Details
Website	:	http://www.phutai.com.vn
Status	:	Normal - operational
Country of Registration	:	Vietnam
Ownership Type	:	Registered ownership by Subject Business Entity
Tax / VAT Details
Tax Issuing Authority	:	Ministry of Finance
Local Name Used	:	Gia Trj Gia Tang (Value Added Tax)
Acronym	:	GTGT / VAT
GTGT / VAT Number	:	4100259236

Primary Products

Products / Materials / Services Description	Activity
Wooden products	Manufacturing, Exporting

International Trade - Statistics  (Currency: USD - US Dollar)

Year	Imports	Exports	Total
2010	n/a	33,380,133	33,380,133
2011	n/a	34,313,836	34,313,836
2012	n/a	33,403,052	33,403,052

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Excavation Work	1794	Service
Heavy Construction, NEC	1629	Service
Wood products, nspf	2499	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Articles of wood	4421909540	Manufacturing, Exporting
Excavation work	9829	Service
Heavy construction	9818	Service

DETAILED PRODUCT CLASSIFICATION & ACTIVITY

Products / Materials / Services Description	Ranking	Activity
Construction	Secondary	Service
Stone mining	Secondary	Service

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of PHU TAI JSC is Manufacturing - Finished products.

Key product include :

Wooden products

An integral part of the core business includes:

Distribution

Supplementary Business

In addition to the core business, PHU TAI JSC also is engaged in the following areas of business:

Exporting

Exporting - Finished products

Importing

Importing - Raw materials

Service

Specialized professional services, including:

Construction

BANK DETAILS

Bank Name	:	ANZ BANK (VIETNAM) LTD
Global Identifier	:	P1310499
Branch	:	District 1,Ho Chi Minh
Branch Address	:	39 Le Duan St District 1 Ho Chi Minh (Head Office)
SWIFT Code	:	This bank does not have a SWIFT Code
Bank Name	:	JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM
Global Identifier	:	P1072025
Branch	:	Hanoi
Branch Address	:	31-33 Ngo Quyen Hanoi (Head Office)
SWIFT Code	:	BFTVVNVX
Bank Name	:	JOINT STOCK COMMERCIAL BANK FOR INVESTMENT & DEVELOPMENT OF VIETNAM
Global Identifier	:	32400483
Branch	:	Hoan Kiem Dist,Hanoi
Branch Address	:	194 Tran Quang Khai Hoan Kiem Dist Hanoi (Head Office)
SWIFT Code	:	BIDVVNVX
Bank Name	:	MILITARY COMMERCIAL JOINT STOCK BANK
Global Identifier	:	P0387295
Branch	:	Dong Da,Hanoi
Branch Address	:	21 Cat Linh Cat Linh Ward Dong Da Hanoi (Head Office)
SWIFT Code	:	MSCBVNVX

LOCAL BRANCHES & MANAGEMENT

Branch	:	PHU TAI JSC - LONG THANH, DONG NAI
Branch Address	:	Tam Phuoc Industrial Park Lot 14 Tam Phuoc Hamlet, Long Thanh, Dong Nai
Branch Tel	:	84-61-3512836
Branch Fax	:	84-61-3512597
Branch	:	PHU TAI JSC - TAN BINH DIST, HO CHI MINH
Branch Address	:	3Fl Scetpa Bldg 19 A Cong Hoa St Ward 12, Tan Binh Dist, Ho Chi Minh
Branch Tel	:	84-8-62966540
Branch Fax	:	84-8-62966540

INTERNATIONAL TRADE - Activity & Markets

Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	Medium	Importing, Exporting
Europe	Medium	Importing, Exporting
North America	Medium	Exporting
Australia	Medium	Importing
Denmark	Medium	Importing
Hong Kong	Medium	Exporting
Italy	Medium	Exporting
New Zealand	Medium	Importing
Singapore	Medium	Exporting
USA	Medium	Exporting
United Kingdom	Medium	Exporting

OFFICE & FACILITIES

Name	:	PHU TAI JSC - QUY NHON, BINH DINH
Address	:	278 Nguyen Thi Dinh St Nguyen Van Cu Ward, Quy Nhon, Binh Dinh
Country	:	Vietnam
Status	:	Operational

COMPANY HISTORY

Date	Details
1996 - Apr	Established as a Government Enterprise.
2004 - Dec	Changed its legal form into Joint Stock Company.

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
18 Apr, 1996	482/ QD - BQP
24 Jun, 1996	110688
30 Dec, 2004	3503000054

NOTES & COMMENTS

N/a

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.48
UK Pound	1	Rs.98.70
Euro	1	Rs.84.48

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%)