MIRA INFORM REPORT

Report Date :

01.08.2014

IDENTIFICATION DETAILS

Name :	KG CHEMICAL CORPORATION

Registered Office :	322, Dangwol-ro, Onsan-eup, Ulju-gun, Ulsan, Korea 689-892

Country :	South Korea

Financials (as on) :	31.03.2014

Date of Incorporation :	31.12.1954

Com. Reg. No.:	130-81-09693

Legal Form :	Listed Company

Line of Business :	Manufacture of Composite Fertilizers

No. of Employees	221

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Slow but Correct

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 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

South Korea

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

SOUTH KOREA - ECONOMIC OVERVIEW

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion-dollar club of world economies, and is currently the world's 12th largest economy. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea's development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. South Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. South Korea's export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching 6.3% growth in 2010. The US-Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 and 2013 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The administration in 2014 is likely to face the challenge of balancing heavy reliance on exports with developing domestic-oriented sectors, such as services. The South Korean economy's long term challenges include a rapidly aging population, inflexible labor market, dominance of large conglomerates (chaebols), and heavy reliance on exports, which comprise about half of GDP.

Source : CIA

Basic Information

Basic

Company Name	KG CHEMICAL CORPORATION
Registered Address	322, Dangwol-ro, Onsan-eup, Ulju-gun, Ulsan, Korea (Old Address System : 220, Ijin-ri, Onsan-eup, Ulju-gun, Ulsan, Korea)
Zip Code	689-892
Tel	+82-2-2680-4114
Fax	+82-2-2680-4328
E-mail	jwkim@kgchem.co.kr;edward@kgchem.co.kr
Website	www.kgchem.co.kr
Trading Address	Rm.603, Pangyo TechnoValley U-Space, 607, Sampyeong-dong, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea
Tel	+82-2-2680-4114
Fax	+82-2-2680-4328
Other Address-Incheon Factory	108B-4L, Namdong Industrial Complex, 658-1, Gojan-dong, Namdong-gu, Incheon, Korea
Tel	+82-32-819-0147
Fax	+82-32-821-0078
Other Address-Onsan Factory	220, Ijin-ri, Onsan-eup, Ulju-gun, Ulsan, Korea
Tel	+82-52-231-1710
Fax	+82-52-231-1719
Other Address-Jeju Factory	407-14, Geumneung-ri, Hallim-eub, Jeju-si, Jeju-do, Korea
Tel	+82-64-773-2020
Other Address-Seosan Factory	936-9, Hwagok-ri, Daesan-eup, Seosan-si, Chungcheongnam-do, Korea
Type	Export/Import
Industry	Manufacture of Composite Fertilizers
Main Business	Composite Fertilizer, Concrete Admixture
Established (mm/dd/yyyy)	12/31/1954

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Nitrogen Phosphorous Potassium Mixtures NPK(10171605)
Sell	Organic fertilizers and plant nutrients(10171500)
Sell	Flocculents(47101608)
Sell	Cement accelerators(12162302)
Sell	Concrete and mortars(30111500)
Sell	Chemical fertilizers and plant nutrients(10171600)

CEO’s

Name	Kwak Jae-Sun
Date of Birth	01/15/1959
Title	Chairman & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

56,397,140,000

Employees

221

Formation

Listed Company (Korea Stock Exchange : 001390) as of 08/1989

A Company of KG Chemical Group

Bank Details

Korea Development Bank

Corporate Registered No.

124311-0008999

Business Registered No.

130-81-09693

Permit & Licenses

Int’l Trade No.: 438988

Shareholder Position

Name	Shares	%
KWAK JAE-SUN	2,230,957	20.62
KIM YOUNG-RAN	111,430	1.03
KWAK JUNG-HYUN	326,120	3.01
KWAK HYE-EUN	221,765	2.05
KG CORPORATION(124311-0044737)	905,662	8.37
KG ZEROIN CO., LTD.(110111-1269540)	586,363	5.42
SUN HYUN FOUNDATION(12122-0001955)	212,510	1.96
TREASURY STOCK	583,916	5.40
OTHERS	5,639,056	52.13
TOTAL	10,817,779	100.00

Company History

03/29/2013 Moved to the present HQ address from 429-1, Okgil-dong, Sosa-gu, Bucheon-si, Gyeonggi-do, Korea

02/17/2011 Decide to acquire KG BATECH CO., LTD.(230111-0114501) as of 03/18/2011

12/2006 Opened first KG directly-run gas station in Naechon

10/2006 Completed compound fertilizer plant of KGO (Tianjin Corporation, China)(annual production of 150,000 tons)

09/2006 Opened first ‘ORFE’, the specialty store for environment-friendly organic Agricultural products

10/2005 Established KG Energy Co., Ltd. (Sihwa: 892,000 tons of steam / 70,900 MW of electric power)

08/2005 Established KGO (Tianjin Corporation, China)

08/2005 Established KG Vatech Co., Ltd. Specializing in bio-chemicals (Ulsan, annual production of 115 tons)

06/2005 Produced concrete compound (Inchon, annual production of 30,000 tons)

10/2004 Newly established high-tech ceramic bead plant (Ulsan, annual production of 300 tons)

09/2004 Newly established organic solid fertilizer plant (Bucheon, annual production of 60,000 tons)

09/2004 Established the automation facilities in liquid fertilizer plant (Bucheon, annual production of 10,000 tons)

02/2004 Completed OEM fertilizer plant (B.B.) (Seowan, annual production of 50,000 tons)

10/2003 Completed Corporate Closing Procedure after paying 96,400,000,000

09/2003 Changed the corporate name to KG Chemical Corporation, inaugurated Chairman Kwak Jae-sun

08/2003 Changed the company name to KG Chemical Corporation.

07/2003 Changed Corporate Closing Procedure by the Court

02/2001 Newly established organic solid fertilizer plant (Ulsan, annual production of 30,000 tons)

09/1999 Started the Corporate Closing Procedure by the Court

08/1998 Enlarged PNS factory to increase production.(Onsan 60,000ton/year)

04/1998 Separated of water treatment, Liquid&Soluble Fertilizer department.

06/1997 Concluded technical introduction agreement for exclude Dioxin with Marker in Germany.

06/1997 Completed construction of BB fertilizer plant.(Jaeju 50,000ton/year)

03/1997 Completed construction of BB fertilizer plant.(Onsan 40,000ton/year)

01/1997 Sparated processing company of production department.

06/1996 Enlarged PNS factory to increase production.(Onsan 50,000ton/year)

04/1994 Completed construction of PACS plant.(Onsan 15,000ton/year)

05/1993 Completed construction of PNS plant.(Onsan 8,500ton/year)

05/1992 Completed construction of Kyunggi Bulk Terminal in Onsan.(Berthing capacity:30,000DWT)

01/1991 Began production of Clean-Magnesium Hydroxide. (Buchon, Onsan: 45,000ton/year)

09/1990 Completed construction of compaction plant. (Onsan: SOP 10,000ton/year, BB fertilizer 20,000ton/year)

08/1989 Opened the enterprise to the public.

03/1988 Enlarged SOP plan. (Onsan 67,000ton/year) (Total capacity: 90,000ton/year)

01/1986 Began production of MAG-SUL.(Buchon 25,000ton/year)

02/1985 Completed construction of compound fertilizer plant. (Onsan 90,000ton/year)

11/1982 Began production of SOP.(Onsan 22,500ton/year)

02/1977 Began production of compound fertilizer.(Buchon 105,000ton/year)

12/1973 Concluded collaboration contract with Mitsubishi Corporation & Ildong FC.

06/1966 Began production of FMP.(Buchon 50,000ton/year)

09/1958 Began production of Limeston powder fertilizer.

12/1955 Began production of Calcium Hydroxide.

12/1954 Founded Company

Detailed Information

Management

Job Description	Title	Name	Nationality	Date of Birth	Education
Chairman & CEO	Mr.	Kwak Jae-Sun	Korean	1959.01.15	-
President & CEO	Mr.	Shin Young-Ki	Korean	1962.05.
Director	Mr.	Ko Kyu-Young	Korean	1959.03.
Auditor	Mr.	Kim Kyung-Mook	Korean	1969.02.
Outside Director	Mr.	Myung Dong-Sung	Korean	1953.12.

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)03/2014	50,524,629,729	303,923,300,041	2,044,874,004
(*)2013	201,160,693,308	286,621,672,527	-8,625,639,499
(*)2012	287,878,691,507	429,801,796,713	-12,539,862,190
(*)2011	278,260,696,355	486,757,586,867	-6,528,365,848
(*)2010	263,124,281,769	408,839,384,801	3,720,859,611
2009	266,805,076,655	348,960,618,395	8,492,774,504
2008	303,233,116,234	340,586,810,851	5,903,054,600
2007	243,302,739,676	195,197,832,741	-3,695,607,229
2006	226,640,136,977	198,510,487,718	11,300,162,414
2005	227,202,444,066	179,934,912,795	9,639,921,857
2004	196,530,577,957	151,956,611,146	6,463,251,114
2003	140,013,369,392	131,518,710,018	18,794,913,014

(*)Figures are based on the K-IFRS Accounting System.

Financial Description

Authorized Capital(KRW)	75,000,000,000
Paid-Up Capital(KRW)	56,397,140,000
Total Issues Shares	10,817,779

Balance Sheet
Unit : Korean Won	01/01/2014~03/31/2014	As of 12/31/2013	As of 12/31/2012
Total Assets	303,923,300,041	286,621,672,527	429,801,796,713
Current Assets	122,138,093,538	106,966,318,343	123,670,518,356
Cash & Cash Equivalents	8,430,141,835	5,904,613,746	2,675,058,455
Finance Assets from this year's Income	569,381,564	569,381,564
Trade Receivables	53,651,873,202	39,861,280,862	63,114,757,474
Short-Term Loans	1,600,200,000	1,600,200,000	1,600,200,000
Other Receivables	27,424,348,131	27,557,911,911	2,534,156,209
Accrued Income	508,879,818	468,105,702	319,004,741
Advance Payments	1,551,084,362	1,231,601,518	3,064,266,224
Prepaid Expenses	355,316,990	28,103,466	461,967,699
VAT	2,137,113,933
Inventories	25,909,753,703	29,745,119,574	49,885,726,813
Other Current Assets			15,380,741
Non-Current Assets	181,785,206,503	179,655,354,184	306,131,278,357
Non-Current Financial Instruments	4,688,646	4,688,646	509,705,476
Marketable Financial Instruments	1,302,003,380	1,302,003,380	1,348,720,000
Held-to-Maturity Financial Assets	114,610,000	114,610,000	254,610,000
Investment_Related Companies	133,726,368,572	133,726,368,572	158,929,172,672
Investment_Real Estate	1,478,091,889	1,486,434,082	1,514,144,521
Tangibles	41,441,852,870	38,753,506,731	38,152,223,392
Intangibles	1,201,635,051	1,325,786,678	1,944,735,264
Non-Current Assets to be Sold			101,025,707,121
Guarantees	2,515,956,095	2,941,956,095	2,452,259,911
Total Liabilities	155,678,073,465	128,614,442,154	266,739,918,048
Current Liabilities	122,029,442,440	97,813,390,099	233,035,198,611
Trade Payables	14,914,083,592	13,002,696,668	16,233,288,633
Short-Term Borrowings	77,294,656,722	64,608,626,032	160,278,006,620
Accrued Dividends	10,116,104,550
Account Payables	11,085,730,309	7,279,464,070	9,402,239,333
Advance Receipts	594,648,509	166,743,186	469,365,729
Withholdings	146,649,738	93,108,948	114,729,268
Accrued Expenses	588,142,686	812,436,140	932,412,649
Accrued Income Tax	7,117,426,334	11,672,427,380
Current Portion of Long-Term Debts			45,500,000,000
Other Current Liabilities	172,000,000	177,887,675	105,156,379
Non-Current Liabilities	33,648,631,025	30,801,052,055	33,704,719,437
Bond with Warrant	27,844,340,341	24,234,302,249
Long-Term Borrowings			13,500,000,000
Provision for Severance & Retirement	477,753,506	253,431,645
Deferred Income Tax Credit	5,225,419,679	6,207,100,662	19,656,094,364
Finance Guarantee Debts	12,279,452	12,279,452	62,459,392
Other Non-Current Liabilities	88,838,047	93,938,047	486,165,681
Capital Stock	56,397,140,000	55,808,245,000	55,808,245,000
Capital Surplus	7,587,391,228	9,867,080,029	4,866,431,284
Others	-5,678,768,545	-5,678,768,545	-6,026,660,461
Installments	-3,716,418	-3,716,418
Profit Surplus	89,943,180,311	98,014,390,307	108,413,862,842
Total Equity	148,245,226,576	158,007,230,373	163,061,878,665
Liab. & Shareholder’s Equity	303,923,300,041	286,621,672,527	429,801,796,713

Income Statement
Unit : Korean Won	01/01/2014~03/31/2014	As of 12/31/2013	As of 12/31/2012
Sales	50,524,629,729	201,160,693,308	287,878,691,507
Cost of Sold Goods	39,899,069,817	166,673,138,919	253,748,286,937
Gross Profit	10,625,559,912	34,487,554,389	34,130,404,570
Selling & Admin. Expenses	8,332,715,486	26,209,491,551	35,260,057,105
Operating Income	2,292,844,426	8,278,062,838	-1,129,652,535
Finance Income	159,484,686	508,473,522	9,299,612,585
Finance Expenses	1,031,590,313	9,294,997,184	13,679,523,840
Other Income	1,576,449,164	11,524,573,832	12,273,545,038
Other Expenses	247,717,583	22,829,223,853	19,223,687,543
Income Before Taxes	2,749,470,380	-11,813,110,845	-12,459,706,295
Income Taxes Expenses	704,596,376	-3,187,471,346	80,155,895
Net Income	2,044,874,004	-8,625,639,499	-12,539,862,190

Cash Flows
Unit : Korean Won	01/01/2014~03/31/2014	As of 12/31/2013	As of 12/31/2012
Operating Activities Cash Flows	-7,881,618,173	10,847,665,354	10,209,955,039
Net Income	2,044,874,004	-8,625,639,499	-12,539,862,190
Adjustment	2,832,610,833	21,872,965,411	25,361,195,574
Changes in Asset/ & Liability	-6,849,453,613	6,153,659,927	9,938,363,808
Interests Received	1,994,570	39,786,840	207,317,750
Interests Paid	-596,569,152	-8,568,821,531	-12,749,464,291
Income Taxes	-5,315,074,815	-24,285,794	-7,595,612
Cash Flows from Investing	-2,882,340,650	118,562,486,700	15,597,498,235
Cash Flows from Financing	13,289,486,912	-126,180,596,763	-27,978,234,713
Increase/Decrease in Cash	2,525,528,089	3,229,555,291	-2,170,781,439
Cash at the Beginning of Year	5,904,613,746	2,675,058,455	4,845,839,894
Cash at the End of Year	8,430,141,835	5,904,613,746	2,675,058,455

Products, Technologies, Services Description

Main Products & Services

Bio-Agr

Compound fertilizer

Bulk blending fertilizer(made-to-order)

Fertigation & Soilless culture fertilizer

Slow-release fertilizer

Phosphate fertilizer

Potassium fertilizer

Construction Materials

POWERCON is a PNS(polynaphthalene sulfonate) type superplasticizer which has made it possible to make high-performance concrete. By using POWERCON in making concrete, the properties of fresh concrete(workability) and hardened concrete(compressive strength and durability) improve..

Environmental

Started to supply Mg(OH)2 in 1991, which is most economical Flue Gas Desulfurization, Poly Aluminium Silicate Sulfate(PASS) in 1992, and more updated Poly Aluminium Chloride Silicate(PACS) in 1993.

Over 44 % of the doestic market share in this coagulant field at present. and 45% of the market share in the Mg(OH)2 field.

Detailed Products Spec.

The Subject has been producing and supplying the compounded fertilizer which is exclusively used for fruit trees and vegetables.

Since 1996, The Subject, as a company in the fertilizer industry with the market share by 40%, has also made a contribution to boost the farmer’s income and keep remaining fertile soil by developing and supplying the customized, environment-friendly B.B. that is suitable

for soil and the crops and eventually enables environmental farming and precise fertilization.

Plant	Description	Capacity
Bucheon	Compound Fertilizer	120,000ton
	Bulk Blending	50,000ton
	Slow Release Fertilizer	25,000ton
Onsan	Compound Fertilizer	120,000ton
	Bulk Blending	50,000ton
	Compaction	30,000ton
	SOP	90,000ton
	MAG-SUL	7,500ton
	Organic Pellet	40,000ton
Jaeju	Bulk Blending	50,000ton

After completing POWERCON plant in 1993, The Subject has been keeping the largest production capacity over 90 thousand ton per year in the world.

Trade Partners & Competitors

Suppliers

CAPRO CORPORATION(110111-0111825)

POSCO(174611-0000741)

OCI COMPANY LTD.(174611-0000981)

SK ENERGY CO., LTD.(110111-3710385)

Customers

NONGHYUP

GYUNGBUK APPLE ASSOCIATION

DONGBU HANNONG CHEMICAL

POONGNONG

CHOBI CO.,LTD

NAMHAE CHEMICAL CORPORATION

Sales Channel

Nonghyup: The Subject sells its products to Nonghup’s local branches through Nonghyup.

Factory=> Local Nonghyup Branches=>Farmers

Factory=> Customers

Export: Sells through int’l trading companies by local L/C.

Payment Condition:

Nonghyup: Cash within 91 days

Others: Normally cash within 3 Months to 6 Months

Competitors

NAMHAE CHEMICAL

DONGBU HANNONG CHEMICAL

POONGNONG

CHOBI

The Subject’s fertilizer is ranked as 2nd player next to NAMHAE CHEMICAL in terms of domestic market share.

JMC

The Subject’s CTC is ranked the 1st player in terms of domestic market share.

The domestic market share of the Subject’s POWERCON is about 60%.

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

KG JEJU CO., LTD.(220111-0058016)

KG ALMATERA CO., LTD.(181211-0041140)

ONE PAYMENT ALLIANCE CORPORATION

KG PASSONE CO., LTD.(110111-1959183)

KG EASYCON CO., LTD.(211211-0007640)

BEIJING MOBILIANS ADVISORY CO., LTD.(CHINA)

Subsidiary

KC CORPORATION(124311-0044737)

KGETS CO., LTD.(110111-1799183)

KOREA ENVIRONMENTAL ENERGY CO., LTD.(131411-0163924)

KG YELLOWCAP CO., LTD.(110111-2092205)

KG INICIS CO., LTD.(110111-1602667)

KG MOBILIANS CO., LTD.(110111-1911050)

M&C PAYMENT CO., LTD.(110114-0077162)

EDAILY CO., LTD.(110111-1853608)

EDAILY TV CO., LTD.(110111-2810128)

KG ZEROIN CO., LTD.(110111-1269540)

Sales by Region (Activity & Markets)

Sales/ Unit :Mil KRW	09/2012	2010	2009
Export	56,955	78,938	51,692
Domestic	166,829	199,323	211,432
Total	239,025	278,261	263,124

The Subject imports the raw materials from China, Malaysia, Russia, Israel and Jordan.

Court Action

Plaintiff(s)/ Creditor(s)/ Applicant(s)	Defendant(s)/ Debtor(s)/ Respondent(s)	Cause	Amount (Thousand KRW)	Status
Jeil Bunseok Co., Ltd.	The Subject Company & Others(9)	Refund for the Inappropriiated Profit	1,439,657	Preparing
Kwon Hoi-Seob & Others(1)	The Subject Company	Compensation for Damages	4,169,665	Documens Proceeding
KG Astech Co., Ltd.	The Subject Company	Compensation for Damages	878,000	Preparing
Jeil Bunseok Co., Ltd.	The Subject Company	Compensation for Damages	351,270	Preparing
Kwon Hoi-Seob & Others(3)	The Subject Company & Others(7)	Compensation for Damages	665,178	Preparing
Kwon Hoi-Seob	The Subject Company & Others(6)	Compensation for Damages	378,149	The Subject won and 2nd round is proceeding.
Kwon Hoi-Seob	Republic of Korea & Others(8)	Compensation for Damages	100,000	The Subject won and 2nd round is proceeding.
KG Daiwel Co., Ltd.	The Subject Company & Others(2)	Compensation for Damages	100,000	Filed
Kwon Hoi-Seob	The Subject Company & Others(2)	Confirmation on Shareholdership	-	Filed
Lee Eun-Mi	The Subject Company & Others(4)	Compensation for Damages	1,383,000	The Subject won and 2nd round is proceeding.
Kwon Hoi-Seob	The Subject Company	Stopping the operation	200,000	The Subject won and 2nd round is proceeding.
Lee Eun-Mi	Jeil Bunseok Co., Ltd., & Others(4)	Cancellation on the decision at general Meeting	-	The Subject won and 2nd round is proceeding.
Kwon Hoi-Seob	The Subject Company & Others(1)	-	-	The Subject was defeated and 2nd round is proceeding.
Kwon Hoi-Seob & Others(4)	Nonghyup	Refund for the Inappropriiated Profit	1,151,000	The Subject was defeated and 2nd round is proceeding.
Dau Technology Co., Ltd.	The Subject Company	Claim for Receivables	25,988	1st Round is proceeding
CJ Chemical Co., Ltd.	The Subject Company & Others(1)	Claim for Loan	106,000	Proceeding
KOREA CREDIT GUARANTEE FUND(114271-0001636)	The Subject Company & Others(1)	Fraud Activities	594,000	1st Round is proceeding
Eco Guard Co., Ltd.	The Subject Company	Not Existing the Debts	78,000	1st Round is proceeding

News Clipping

Not Available

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.25
UK Pound	1	Rs.101.92
Euro	1	Rs.80.70

INFORMATION DETAILS

Analysis Done by :	SUM

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.