MIRA INFORM REPORT

Report Date :

09.07.2014

IDENTIFICATION DETAILS

Name :	FISHER & PAYKEL APPLIANCES LIMITED
Formerly Known as :	FISHER & PAYKEL LIMITED
Registered Office :	78 Springs Road, East Tamaki, Auckland, Zip Code 2013
Country :	New Zealand
Financials (as on) :	31.03.2013 (Group Consolidated)
Date of Incorporation :	25.01.1934
Com. Reg. No.:	43285
Legal Form :	New Zealand Limited Company
Line of Business :	· engaged in Designing, Manufacturing & Marketing of Household Appliances bearing the Brand Name “FISHER & PAYKEL” Subject is part of Haier Group from China. Haier Group is a global leader in Innovative, Award-Winning Consumer Electronics and Home Appliances. Subject product line are as follows: Washing Machine Dishwashers Dryer Built-In Ovens Fridge Outdoor And Indoor Cooking Products Freezer Built-In grills Freestanding Grills Cooktops Rangehoods Freestanding cookers Cooldrawer Spare parts and accessories
No of Employees :	3,000 employees (Fisher & Paykel Group)

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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
New Zealand	A1	A1

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

New Zealand ECONOMIC OVERVIEW

Over the past 20 years the government has transformed New Zealand from an agrarian economy dependent on concessionary British market access to a more industrialized, free market economy that can compete globally. This dynamic growth has boosted real incomes - but left behind some at the bottom of the ladder - and broadened and deepened the technological capabilities of the industrial sector. Per capita income rose for ten consecutive years until 2007 in purchasing power parity terms, but fell in 2008-09. Debt-driven consumer spending drove robust growth in the first half of the decade, helping fuel a large balance of payments deficit that posed a challenge for economic managers. Inflationary pressures caused the central bank to raise its key rate steadily from January 2004 until it was among the highest in the OECD in 2007-08; international capital inflows attracted to the high rates further strengthened the currency and housing market, however, aggravating the current account deficit. The economy fell into recession before the start of the global financial crisis and contracted for five consecutive quarters in 2008-09. In line with global peers, the central bank cut interest rates aggressively and the government developed fiscal stimulus measures. The economy pulled out of recession late in 2009, and achieved 2-3% per year growth in 2010-13. Nevertheless, key trade sectors remain vulnerable to weak external demand. The government plans to raise productivity growth and develop infrastructure, while reining in government spending.

Source : CIA

CORPORATE DETAILS

Verified Address

Subject name FISHER & PAYKEL APPLIANCES LIMITED Business address 78 Springs Road Town East Tamaki Province Auckland Zip / Postal code 2013 Country New Zealand Telephone +64 9 2730600 Fax +64 9 2730609 Website www.fisherpaykel.com

Registered address 78 Springs Road Town East Tamaki Province Auckland Zip / Postal code 2013 Country New Zealand

SUMMARY DETAILS

Report Summary

Date registered 25/01/1934 Legal form New Zealand Limited Company Key personnel Stuart Bruce Broadhurst Line of business The Subject’s business consist of design, manufacture & market of household appliances. Staff employed 3,000 employees (Fisher & Paykel Group)

Paid-up capital NZD178,035,897.00 Sales turnover / Revenue / Income NZD1,021,051,000.00 (Group-Consolidated 12 months, 31/03/2013) Net income / loss NZD-8,182,000.00 (Group-Consolidated 12 months, 31/03/2013) Total assets NZD1,421,601,000.00 (Group-Consolidated 12 months, 31/03/2013) Share equity NZD590,784,000.00 (Group-Consolidated 12 months, 31/03/2013)

CREDIT RISK OUTLOOK

Credit Risk Interpretation

Credit risk theory Reasonable financial and operational base for the group. Small credits may be considered with some confidence that commitments will be sustained under normal circumstances. This is based on criterions such as years of establishment, number of employees, sales turnover, profit after tax, total assets, reserve, and others. A cautious credit control policy applies. Paid-up capital NZD178,035,897.00 Sales turnover / Revenue / Income NZD1,021,051,000.00 (Group-Consolidated 12 months, 31/03/2013) Net income / loss NZD-8,182,000.00 (Group-Consolidated 12 months, 31/03/2013) Total assets NZD1,421,601,000.00 (Group-Consolidated 12 months, 31/03/2013) Share equity NZD590,784,000.00 (Group-Consolidated 12 months, 31/03/2013)

Subject’s Credit Risk Analysis

Country risk Country risk is minimal Operation trend Operational trend is steady Management experience Management is adequately experienced Financial performance Group financial performance is very good Remarks Larger credit can still be considered as the Subject's is well positioned in the market and the financial stability of the group is positive.

Organisation structure Organisational structure is consistent Detrimental No detrimental found Payment history No payment delays noted

STATUTORY DETAILS

Registry Information

Date registered 25/01/1934 Legal form New Zealand Limited Company Registration number 43285 Registered authority The Companies Office Tax / VAT number 9429040747378

Statutory status Active Previous name The Subject was previously known as FISHER & PAYKEL LIMITED and changed to its current style on 19-11-2001. Change of legal form None reported.

BOARD OF MANAGEMENT

Key Personnel

Name Stuart Bruce Broadhurst Designation Managing Director Name David Alexander Sullivan Designation Chief Financial Officer

BOARD OF DIRECTORS

Appointments

Name Stuart Bruce Broadhurst Title Director Appointment date 07/10/09 Address 20 Springcombe Road Saint Heliers, Auckland 1071 New Zealand Biography Stuart Bruce Broadhurst was appointed Managing Director and Chief Executive Officer on 11 December 2009. He has over 25 years industry experience in every aspect of the Company's global operations. Since 1988 he has held a number of senior management positions within New Zealand and Australia. He has been employed in key leadership roles for the Fisher & Paykel Appliances Group in the USA, the United Kingdom and Europe, where he project managed, established and developed major business units. He received a Bachelor of Commerce degree from the University of Auckland. Name Andrew Peter Cooke Title Director Appointment date 11/07/13 Address 8 San Jose Rise Shamrock Park, Auckland 2016 New Zealand Biography Andrew Peter Cooke joined Fisher & Paykel Appliances in 1987 as a Control Systems Engineer in the East Tamaki Refrigeration Division. He has held several manufacturing support roles in Australia and New Zealand before moving to Information Technology in 1997, with his appointment as VP Information Technology in 2002. Additional responsibilities followed in 2009 with his appointment as VP Supply Chain Management, and in 2013 Executive VP Manufacturing, Quality, Supply Chain and Information Technology. Name Laurence Andrew Mawhinney Title Director Appointment date 11/07/13 Address 28B Godden Crescent Mission Bay, Auckland 1071 New Zealand Biography Laurence was appointed Executive VP Sales and Customer Experience in April 2013. He has 22 years of international business experience, having served in some of Fisher & Paykel's most critical markets. He commenced employment with Fisher & Paykel in 1991 and has held senior sales roles in Australia and North America. Laurence joined the inaugural team that pioneered Fisher & Paykel's entry into the North American market, and in 2000 he was appointed VP Sales & Marketing North America. In 2009 he was appointed President North America. Name David Alexander Sullivan Title Director Appointment date 23/08/12 Address 1B Bath Street Narrow Neck, Auckland 0624 New Zealand Biography David joined Fisher & Paykel Appliances in August 2011 as Chief Financial Officer. He has extensive financial and global commercial experience spanning 28 years. His previous background includes Chief Financial Officer roles at SkyCity Entertainment Group and Vodafone New Zealand. He has also worked in a number of senior finance executive roles in New Zealand and internationally. Name Daniel Witten-Hannah Title Director Appointment date 11/07/13 Address 33 Nottingham Street Westmere, Auckland 1022 New Zealand Biography Daniel was appointed VP of Product Development in February 2010. He has extensive experience in all aspects of the Company's engineering and project management operations. In 2013 he was also appointed Executive VP Marketing, assuming responsibility for the Company's global marketing activities, including a review of the Company's Go to Market Opportunities. Previous experience within the Company includes appointments in 2008 to the position of Dunedin Site Manager and prior to that, management positions within Cooking, Dishwashing and Refrigeration Engineering Operations.

Staff employed 3,000 employees (Fisher & Paykel Group)

SHARE CAPITAL

Composition

Authorized capital NZD178,035,897.00 Number / Type of shares 178,035,897 Shares Share par value NZD1.00 Issued capital NZD178,035,897.00

Paid-up capital NZD178,035,897.00

OWNERSHIP / SHAREHOLDERS

Composition

How listed Full list Shareholder name AF INVESTMENTS LIMITED Address 78 Springs Road East Tamaki, Auckland 2013 New Zealand Number / Type of shares 178,035,897 Shares Percentage (%) of shares 100%

CORPORATE AFFILIATIONS AND RELATED COMPANIES

Structure

Company name HAIER GROUP CORPORATION Affiliation type Ultimate Holding Company Country of business China Comments Haier Group Corporation, through its subsidiaries, engages in the businesses of technology research, product development and manufacturing, trade, and financial services. The company manufactures white goods home appliances, such as refrigerators, household and commercial air conditioners, washing machines, freezers, vacuum cleaners, water heaters, kitchen wares, dishwashers, and microwave ovens, as well as audio and video products, such as televisions and DVD players. It also offers communication and information products, including smartphones, mobile phones, computers, and digital information products; medical raw materials, tablets, capsules, granules, oral liquids, medicine powders for injection, lyophilized powders for injection, and eye drops; digital video phone systems, security monitoring systems, anti-burglary alarms, home environment controls, and access control systems; and networked digital home solutions, as well as high definition liquid-crystal display televisions. In addition, the company provides energy-saving refrigerators in Japan. Further, it offers conference, accommodation, catering, and entertainment services for meetings and conferences; and supply chain management and logistics services. Furthermore, the company focuses on the development of embedded systems, software outsourcing, system integration, and multimedia systems, as well as on the real estate development and investment. It serves customers in the United States, Europe, South Asia, the Asia-Pacific region, ASEAN, the Middle East, Africa, and China. Haier Group Corporation has a strategic cooperation with Honeywell International Inc. The company was formerly known as Qingdao Refrigerator Co., Ltd. and changed its name to Haier Group Corporation in 1991. The company was founded in 1984 and is headquartered in Qingdao, China. It has an administrative center and showroom in Manila, the Philippines. Company name HAIER (SINGAPORE) MANAGEMENT HOLDING CO. PTE. LTD. Affiliation type Superior Holding Company Country of business Singapore Company name HAIER NEW ZEALAND INVESTMENT HOLDING COMPANY LIMITED Affiliation type Holding Company Country of business New Zealand Company name FISHER & PAYKEL APPLIANCES HOLDINGS LIMITED Affiliation type Intermediate Holding Company Country of business New Zealand Company name AF INVESTMENTS LIMITED Affiliation type Parent Company Country of business New Zealand Company name FISHER & PAYKEL PRODUCTION MACHINERY LIMITED Affiliation type Wholly-owned Subsidiary Country of business New Zealand Company name FISHER & PAYKEL APPLIANCES 2014 LIMITED Affiliation type Wholly-owned Subsidiary Country of business New Zealand Company name NEW ZEALAND EXPORT CORPORATION LIMITED Affiliation type Wholly-owned Subsidiary Country of business New Zealand Company name ALLIED INDUSTRIES LIMITED Affiliation type Wholly-owned Subsidiary Country of business New Zealand Company name FISHER & PAYKEL FINANCE LIMITED Affiliation type Sister Company Country of business New Zealand

Remarks on corporate affiliations and related companies Other companies of the Haier group should be considered affiliates of the Subject.

BANK AND MORTGAGES

Bank Details

Name of bank ANZ Bank New Zealand Limited Address New Zealand

Comments It is generally not the policy of local banks to provide credit status information to non related parties, however interested parties would be advised to consult first with the Subject if banker's references are required.

Mortgages

None reported.

Legal Filings

Bankruptcy filings None reported. Court judgements None reported.

Tax liens None reported. Others None reported.

FINANCIAL STATISTICS

Description

Financial statement source Commercial Registry Filings Financial statement date 31/03/13 Style of financial statement Full audited

Currency of financial statement New Zealand, Dollar (NZD) Exchange rate 1 USD = NZD 1.14 as of 08-07-2014

Concise Financial Data	Consolidation style	Group Consolidated	Group Consolidated
	Currency	New Zealand, Dollar (NZD)	New Zealand, Dollar (NZD)
	Date of financial year end	31/03/13	31/03/12
	Length of financial accounts	12 months	12 months
	Sales turnover / Revenue / Income	1,021,051,000.00	1,026,820,000.00
	Operating profit / Profit from operations	50,282,000.00	38,387,000.00
	Profit / Loss before tax	42,287,000.00	27,530,000.00
	Net income / loss	-8,182,000.00	18,431,000.00
	Non-current assets	675,704,000.00	689,022,000.00
	Property, plant and equipment	213,595,000.00	200,521,000.00
	Current assets	745,897,000.00	764,664,000.00
	Inventories	171,965,000.00	151,772,000.00
	Cash and cash equivalents	47,080,000.00	109,347,000.00
	Accounts receivable	130,378,000.00	119,971,000.00
	Total assets	1,421,601,000.00	1,453,686,000.00
	Current liabilities	484,548,000.00	506,870,000.00
	Non-current liabilities	346,269,000.00	341,635,000.00
	Accounts payable	98,981,000.00	86,436,000.00
	Total liabilities	830,817,000.00	848,505,000.00
	Share equity	590,784,000.00	605,181,000.00
	Retained earnings	-154,204,000.00	-147,992,000.00
	Reserves	-96,881,000.00	-88,696,000.00

Remarks

The group consolidated financial statement above relates to the Subject's Intermediate Holding Company Fisher & Paykel Appliances Holdings Limited and all its subsidiaries.

BUSINESS DETAILS

Operational Details

Main activities The Subject engages in design, manufacture & market of household appliances. The Subject has the number 1 market position for household appliances in New Zealand and number 2 in Australia. It also has a niche high-end market positions in North America, Europe, China and markets and sells its product in more than 50 countries worldwide. The Subject is part of Haier Group from China. Haier Group is a global leader in innovative, award-winning consumer electronics and home appliances. Headquartered in Qingdao, Shandong, China, Haier Group employs more than 80,000 people around the world and distributes products in more than 100 countries and regions with global revenues reaching US$29.5 billion in 2013 and net profit reaching US$1.76 billion. Products and services Washing machine Dishwashers Dryer Built-In ovens Fridge Outdoor and indoor cooking products Freezer Built-In grills Freestanding grills Cooktops Rangehoods Freestanding cookers Cooldrawer Spare parts and accessories Brands FISHER & PAYKEL

Purchases

Local The Subject sources its product(s) / material(s) locally.

International The Subject sources its product(s) / material(s) from countries worldwide.

Sales

Local The Subject sells its product(s) locally.

International The Subject exports its product(s) to countries worldwide.

Key events
12 March, 2014
Fisher and Paykel thinks big with $4b goal

FISHER & Paykel Appliances has unveiled plans for a state-of-the-art new research and development hub at its East Tamaki headquarters that will allow the company to take on 160 additional Auckland-based engineers.

The almost 80-year-old whiteware maker, which was acquired by Chinese home goods giant Haier in 2012, has set a lofty goal of boosting annual revenue from around $1 billion to $4 billion over the next decade as it pushes to become the "world's leading premium appliance maker".

Haier appears to be keeping promises made during the takeover, when the Qingdao-based firm said it would beef up the New Zealand company's R&D capabilities.

But F&P Appliances' Auckland manufacturing staff are facing a less than certain future, with chief executive Stuart Broadhurst saying production at the East Tamaki factory - which employs around 180 workers - is expected to fall and the facility will be closed "at some point".

The appliance maker has employed 80 new engineers in Dunedin and Auckland since February 2013 and last week announced a $2.5 million expansion of its South Island R&D facility. Broadhurst said the firm was looking to recruit another 50 engineering staff in the two cities over the next two years. The fit out of the research hub, in an existing 5000sq m building, will cost $5.5 million, and it is expected to be up and running by the middle of this year.

Vice-president of product development and marketing Dan Witten-Hannah said F&P Appliances wanted to increase its East Tamaki R&D team from 240 to 400 - the capacity of the new facility. But it was not clear how long that might take as securing suitable talent was a challenge.

"We're growing our key brands in the USA and we're starting to expand into other markets," Witten-Hannah said. "Those markets drive the need for new products and new products drive the need for investment in engineering."

F&P Appliances released 70 new products last year and new markets such as China and India are introducing fresh challenges for the design team. Broadhurst said Chinese consumers had very specific kitchen requirements - such as powerful gas burners for wok cooking - and "adapted" appliances would be released in China this year.

He said the Auckland plant produced "legacy products" such as bar fridges and cheap chest freezers. Production would decrease as the company focused on the premium end of the market.

Source: www.tweeddailynews.com.au

25 November, 2012
China’s Haier riding a New Zealand buyout
Haier on betting overseas deals to keep growth alive

BEIJING ( Caixin Online ) — Haier Group’s successful takeover of New Zealand manufacturer Fisher & Paykel Appliances has stoked the market with fresh confidence in China’s largest white goods manufacturer.

The deal sealed in early November also bought time for Haier as it strives to maintain growth momentum in an increasingly competitive environment for makers of washing machines, refrigerators, stoves and air conditioners around the world.

Several rounds of buyout negotiations ended when Fisher & Paykel’s shareholders agreed to sell more than 70% of the company to Haier, which already controlled about 20%, for 927 million New Zealand dollars ($760 million), or NZ$1.28 a share.

With a majority stake in hand, Haier said it will launch a forced buyout of minority shareholders and grabbed the remaining stakes of the company which, like Haier, makes home appliances at factories around the world.

In initiating the successful takeover, Haier officials were apparently eyeing more than additional manufacturing space: The plum parts of the deal, say industry analysts, are Fisher & Paykel’s research and development division and its global sales network.

Analysts say Haier was attracted to the New Zealand company’s technological capacity and global customer base — business factors that could help the Chinese company maintain growth.

Haier’s revenues increased to 151 billion yuan ($24.2 billion) last year from 100 billion yuan in 2004. The company last year accounted for 7.8% of all large, household appliance sales in terms of revenues around the world, according to the market data watcher Euromonitor.

It’s also No. 1 in China for refrigerator and washing machine sales, although of late it’s faced fierce competition in the TV and air conditioner business.

In recent years, Haier built production and marketing facilities in the United States, Malaysia, Indonesia and the Philippines. Sales in Europe rose 15% in the first half of this year from the same period 2011.

Haier’s overseas sales account for about 26% of total revenues. But appliance industry analysts aren’t happy. Liu Buchen of Kuafu Enterprise Management Consultancy, for example, says the company would be better off with a 50-50 domestic-foreign sales split.

Meanwhile, Chinese rivals including Midea Group and Gree Electric Appliances Inc. have seen sales surge much more rapidly, with each engineering a sales leap to more than 100 billion yuan last year from about 20 billion yuan in 2004.

Market watchers say Haier is under pressure to keep up with Midea and Gree at home, and compete against powerful multinationals such as Samsung and Siemens in other countries.

Liu said low brand awareness, technological limits and a lack of attention-getting breakthrough products have hurt Haier’s internationalization effort. In recent years, “Haier had been quite worried” about its ability to compete, he said.

Buying a foreign company such as Fisher & Paykel offered Haier “the only way out,” said a home appliance industry insider.

Source: www.marketwatch.com

11 September, 2012
Haier Offers $702.7 Million for Fisher & Paykel

Appliance maker Haier Group Corp. Tuesday offered 869 million New Zealand dollars (US$702.7 million) to buy Fisher & Paykel Appliances Holdings Ltd. in a deal that will help propel the Chinese company further onto the global stage.

Haier offered NZ$1.20 a share for the 80% of the appliance maker that it didn't already own, Fisher & Paykel said after the close of New Zealand trading Tuesday. The New Zealand company said Monday that Haier was considering a takeover.

Haier's offer is a 15% premium to Fisher & Paykel's Tuesday closing price and a 60% premium to Friday's close. Fisher & Paykel's shares rose 7.2% Tuesday to close at NZ$1.04.

The bid is subject to Haier gaining control of more than 50% of Fisher & Paykel and to approval by the New Zealand government as a foreign investment.

Haier has an agreement with Allan Gray Australia Pty. Ltd. that essentially gives the Chinese control of the fund manager's 17.46% stake. That means Haier already effectively controls 37.46% of Fisher & Paykel.

Fisher & Paykel said its board supports the offer, pending a report by an independent adviser and in the absence of a superior bid.

Liang Haishan, a director of Haier's New Zealand branch, said the Chinese company respected Fisher & Paykel's history, achievements and management and plans to keep the brand as well the company's development base in New Zealand.

Haier bought its 20% stake in Fisher & Paykel three years ago for about NZ$80 million, or roughly US$65 million. The Chinese company got access to Fisher & Paykel's marketing and research and development, and the right to sell the New Zealand company's products in China. Fisher & Paykel has the right to sell Haier appliances in New Zealand, Australia and Ireland.

Fisher & Paykel reported revenue of NZ$891 million (US$720.5 million) in the fiscal year ended March 31. Haier posted US$23.3 billion in revenue for last year.

But the New Zealand company, which employs about 3,400 people world-wide, has developed useful technologies and holds valuable patents, including one for a dishwasher that features two drawers rather than the usual single pull-down door.

The Auckland-based appliance maker's shares have been hammered in recent years as the strong New Zealand dollar and weak economy have reduced earnings and forced the company to suspend dividend payments.

Haier began as a refrigerator maker in 1984. The Qingdao-based company was one of China's first companies to move overseas, introducing its brand in Europe, Japan and the U.S. in the 1990s, and has been moving to build its business abroad. Haier, which has 80,000 employees and distribution in more than 100 countries, last year acquired the washing-machine and consumer-refrigerator business of Japan's Sanyo Electric Co.

Source: online.wsj.com

Business Facilities and Assets

Premises The Subject operates from the verified heading address consisting of a production facility, warehouse and an administrative office.

Branches In addition, the Subject operates from production facility located at Dunedin and South Island, New Zealand.

SUMMARIZED COUNTRY RISK

Gross Domestic Products (GDP) and Economic Overview

Central bank Reserve Bank of New Zealand Reserve of foreign exchange and gold US$ 20.562 billion Gross domestic product (GDP) US$ 180.548 billion Purchasing power parity (GPP) 126.628 billion of International dollars GDP per capita (current prices) US$ 40,454 GDP composition by sector agriculture: 4.7% industry: 24% services: 71.3% Inflation 2009: 2.1% 2010: 2.3% 2011: 4% Unemployment rate 2009: 6.1% 2010: 6.5% 2011: 6.5%

Public debt (general Government gross debt as percentage (%) of GDP) 2009: 26.1% 2010: 32.3% 2011: 37% Government bond ratings Standard & Poor's: AA+/Stable/A-1+ Moody's rating: Aaa Moody's outlook: STA Market value of publicly traded shares US$67.061 billion Largest companies Westpac Limited, Transpower, Fletcher Building Limited, National Bank of New Zealand, Fonterra Co-Operative Group Ltd, Air New Zealand Limited, The Warehouse Group Limited, Progressive Enterprises Ltd

Trade and Competitiveness Overview

Total exports US$33.24 billion Export commodities Dairy products, meat, wood and wood products, fish, machinery Total imports US$31.11 billion Import commodities Machinery and equipment, vehicles and aircraft, petroleum, electronics, textiles, plastics Best countries for doing business 3 out of 183 countries Global competitiveness ranking 25 (ranking by country on a basis of 142, the first is the best)

Major export partners Australia 22%, US 11.5%, Japan 9.2%, China 5.3%, UK 4.6% Major import partners Australia 20.7%, China 13.4%, US 9.7%, Japan 9.5%, Singapore 4.9%, Germany 4.7% FDI inflows 2008: US$4,598 million 2009: US$-1,293 million 2010: US$561 million FDI outflows 2008: US$462 million 2009: US$-308 million 2010: US$589 million

Country and Population Overview

Total population 4.37 million Total area 270,467 km2 Capital Wellington

Currency New Zealand dollars (NZD) Internet users as percentage (%) of total population 83%

PAYMENT OUTLOOK

Purchases Term

Local Bank transfer, Prepayment, D/P, Credit 30-120 days

International L/C, Prepayment, Telegraphic transfer, D/P, Credit 30-120 days

Sales Term

Local Bank transfer, Prepayment, D/P, Credit 30-120 days

International L/C, Prepayment, Telegraphic transfer, D/P, Credit 30-120 days

Trade Reference / Payment Behaviour

Comments As local and international trade references were not supplied, the Subject's payment track record history cannot be appropriately determined but based on our research, payments are believed to be met without delay.

Investigation Note

Sources Interviews and material provided by the Subject Other official and local business sources

Attachments

Attachments Group consolidated financial statements List of affiliated companies

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.79
UK Pound	1	Rs.102.42
Euro	1	Rs.81.32

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	MNL

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.