MIRA INFORM REPORT

Report Date :

30.07.2014

IDENTIFICATION DETAILS

Name :	HANSOL PAPER CO., LTD.

Registered Office :	100, Eulji-ro, Jung-gu, Seoul, Korea 23~24 FL., B-Dong, Pine Avenue Bldg. 100-192

Country :	South Korea

Financials (as on) :	31.03.2014

Date of Incorporation :	19.01.1965

Com. Reg. No.:	104-81-25772

Legal Form :	Listed Company

Line of Business :	Manufacture of Printing and Writing Paper

No. of Employees	883

RATING & COMMENTS

MIRA’s Rating :

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 – 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	HANSOL PAPER CO., LTD. (Korean Company Name : “한솔제지(주)”)
Registered Address	100, Eulji-ro, Jung-gu, Seoul, Korea
Building	23~24 FL., B-Dong, Pine Avenue Bldg.
Zip Code	100-192
Tel	+82-2-3287-7114
Fax	+82-2-3287-6114
E-mail	heesun@hansol.co.kr
Website	www.hansolpaper.co.kr
Trading Address	23~24 FL., B-Dong, Pine Avenue Bldg., 203, Euljiro 2-ga, Jung-gu, Seoul, Korea (Old Address System : 23~24 FL., B-Dong, Pine Avenue Bldg., 100, Eulji-ro, Jung-gu, Seoul, Korea)
Tel	+82-2-3287-7114
Fax	+82-2-6031-0908
Other Address-Daejeon Factory	1674-2, Sinil-dong, Daedeok-gu, Daejeon, Korea
Tel	+82-42-939-1114
Fax	+82-42-939-1112
Other Address-Cheonan Factory	40-1, Haengjeong-ri, Gwangdeok-myeon, Cheonan-si, Chungcheongnam-do, Korea
Tel	+82-41-559-6126
Fax	+82-41-559-6177
Other Address-Janghang Factory	481-8, Hwacheon-ri, Janghang-eup, Seocheon-gun, Chungcheongnam-do, Korea
Tel	+82-41-955-1111
Fax	+82-41-955-6488
Other Address-Sangju Factory	67-12, Oedap-dong, Sangju-si, Gyeongbuk, Korea
Tel	+82-54-534-6641
Fax
Type	Export
Industry	Manufacture of Printing and Writing Paper
Main Business	Woodfree Paper, Duplex Board, Specialty Paper
Sub Business
Established (mm/dd/yyyy)	01/19/1965

The Subject owns the premises of registered Daejeon Factory, Cheonan Factory, Janghang Factory and Sangju Factory.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Art or craft paper(14111606)
Sell	Label papers(14111537)
Sell	Coated papers(14121800)
Sell	Printer or copier paper(14111507)
Sell	Business cards(14111604)
Sell	Thermal paper(14111818)
Sell	Origami craft papers(60121114)
Sell	Printing and writing paper(14111500)
Sell	Tissue papers(14121600)
Sell	Wallpapers(30161502)
Sell	Paperboard and packaging papers(14121500)
Sell	Computer printout paper(14111506)
Sell	Carbonless paper(14111527)
Sell	Novelty paper(14111600)
Sell	Offset paper(14121904)
Sell	Bleached paperboard(14121501)
Sell	Facsimile paper(14111508)
Sell	Transparency film(44103118)
Sell	Silicone coated papers(14121804)
Buy	Paper pulp(14101501)
Buy	LBKP (Leaf Bleached Kraft Pulp)
Buy	NBKP (Needle Bleached Kraft Pulp)
Buy	BCTMP (Bleached Chemical Thermal Mechenical Pulp)
Buy	OCC (Old Corrugated Container)
Buy	ALUM

CEO’s

Name	Sunwoo Young-Suk
Address
Date of Birth	03/06/1944
Title	Vice Chairman & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

218,122,350,000

Employees

883

Formation

Listed Company (Korea Stock Exchange: 004150) as of 05/17/1972

A Company of HANSOL GROUP

Bank Details

Woori Bank

Kookmin Bank

Hana Bank

Korea Development Bank

Corporate Registered No.

110111-0017867

Business Registered No.

104-81-25772

Permit & Licenses

08/1994 ISO 9002

Int’l Trade No.: 673114

Shareholder Position

Name	Shares	%
LEE IN-HEE	1,530,873	3.51
CHO DONG-KIL	1,458,126	3.34
NATIONAL PENSION SERVICE(110171-0007134)	5,690,078	13.04
HANSOL CSN CO.,LTD(110111-0150659)	3,522,000	8.07
KOREA VALUE ASSET MANAGEMENT CO.,LTD.(110111-3398959)	2,522,153	5.78
HANSOL CHEMICAL CO., LTD(110111-0270895)	1,079,383	2.47
HANSOL CULTURAL FOUNDATION(114622-0020102)	137,111	0.31
TREASURY STOCK	3,166,898	7.26
OTHERS	24,517,848	56.20
TOTAL	43,624,470	100.00

Company History

06/02/2014 Imposed 35,635,000,000 KRW as Penalty on Collusion by Fair Trade Commission

12/23/2011 Moved to the present HQ address from 22^nd Fl., Hansol Bldg., 736-1, Yeoksam 1-dong, Gangnam-gu, Seoul, Korea

09/2007 Acquired the management right of SEOUL PAPER CO., LTD.(110111-0990609)

11/2004 Awarded US$400 Million Export Top Prize

12/2003 Acquisition of Specialty Paper business from Hansolpatech

02/2003 Acquired Hansol Patech Ltd.

08/1999 Acquired South China Paper Ltd.

07/1999 Took over the assets of Concordia Paper, the manufacturer of white duplex board in Hong Kong(Renamed as SCP)

12/1998 Completed to collaborate for newsprint

12/1998 Transferred the facilities for newsprint and groundwood paper in Cheonju paper

07/1998 Made an agreement to transfer sales of newsprint business

04/1998 Completed PM32 at Taejeon mill

03/1998 Head office was moved to 736-1, Yoksam-dong, Kangnam-gu, Seoul

03/1998 Lee In-hee took office as CEO

02/1998 Purchased Cheongju mill (including land and equipment etc.)

12/1997 Made a long term supply agreement with LA TIMES

06/1996 Obtained a right to do business in PCS

05/1996 Collaborated with Shanghai

05/1996 Completed PM7 at Cheonju mill

02/1996 Completed PM23 at Changhang mill

10/1995 Acquired 900,000 stocks of Hansol Finance Co., Ltd.(90%)

10/1995 Completed PM31 at Taejeon mill

08/1995 Collaborated with PSI Co. in U.S.A.(90%)

08/1995 Acquired 303,918 stocks of Korea Marbel Co., Ltd. (4.40->17.75%)

04/1995 Acquired 450,000 stocks of Youngwoo Chemical Co. Ltd.(34.62%)

01/1995 Invested for the facility to manufacture newsprint (PM7 at Cheonju mill->200,000tons/year)

12/1994 Purchased the stocks of Donghea Merchant Bank (10.0%->25.0%)

05/1994 Completed PM22 at Changhang mill

04/1994 Acquired the stocks of Dongchang Paper Manufacturing Company (0%->10.27%)

10/1993 Completed PM6 at Cheonju mill

09/1993 Separated from Samsung Group

10/1992 Renamed as Hansol Paper Co., Ltd

07/1992 Head office was moved to 64-8, Taepyoungro 1-ga, Joong-gu, Seoul

05/1992 Commercialized printing and writing paper (completion of PM2 at Changhang mill)

05/1992 Completed PM21 at Changhang mill(to produce coated woodfree, uncoated woodfree paper)

09/1989 Completed PM5 at Cheonju mill

10/1985 Completed super machine (4th paper machine) at Cheonju mill

10/1984 Head office was moved to 150, Taepyoungro 2-ga, Joong-gu, Seoul

12/1982 Main stockholder was changed (Seven stockholders including Lee Byoung-chol was changed to eight stockholders including Lee In-hee)

02/1977 Completed PM3 at Cheonju mill

02/1969 Completed PM2 at Cheonju mill

09/1968 Completed PM1 at Cheonju mill(to produce newsprint paper)

08/1968 Renamed as Cheonju Paper Manufacturing Co., Ltd

01/1965 Saehan Paper Manufacturing Industries Co., Ltd was founded

Detailed Information

Management

Job Description	Title	Name	Nationality	Date of Birth	Education
Chairman & CEO	Mr.	Cho Dong-Kil	Korean	1955.11.30	Yonsei University, Korea
Vice Chairman & CEO	Mr.	Sunwoo Young-Suk	Korean	1944. 03.06	Yonsei University, Korea
President & CEO	Mr.	Lee Sang-Hoon	Korean	1952.12	Seoul National University, Korea
Vice President Director	Mr.	Lee Cheon-Hyun	Korean	1961.01.08	Sungkyunkwan University, Korea
Outside Director	Mr.	Yoon Jong-Hoon	Korean	1948.03.05	-
Outside Director	Mr.	Kim Woo-Hwang	Korean	1941.10	Kyunghee University, Korea
Outside Director	Mr.	Lee Seung-Sub	Korean	1962.08	Seoul National University, Korea

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)03/2014	332,892,901,599	1,830,050,925,181	3,995,639,746
(*)2013	1,399,118,728,211	1,732,428,305,354	34,764,780,439
(*)2012	1,482,493,773,807	1,714,005,524,211	51,336,055,513
2011	1,541,804,879,269	1,764,297,840,820	14,268,212,563
2010	1,560,223,250,741	1,726,767,230,145	28,883,280,385
2009	1,367,948,076,345	1,582,355,019,138	44,261,408,197
2008	1,336,006,617,732	1,472,766,109,465	31,822,956
2007	1,120,365,050,230	1,436,068,929,577	(-)8,926,557,573
2006	1,077,727,816,071	1,449,617,726,411	(-)126,180,128,252
2005	1,126,856,912,011	1,595,044,295,662	22,187,447,396
2004	1,176,084,818,593	1,741,326,091,269	47,523,469,030

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

Financial Description

Authorized Capital(KRW)	350,000,000,000
Paid-Up Capital(KRW)	218,122,350,000
Total Issued Shares	43,624,470

Balance Sheet
Unit : Korean Won	01/01/2014~03/31/2014	As of 12/31/2013	As of 12/31/2012
Total Assets	1,830,050,925,181	1,732,428,305,354	1,714,005,524,211
Current Assets	414,230,719,482	398,689,203,493	447,174,934,286
Cash & Cash Equivalents	11,198,378,450	24,381,747,958	43,764,688,755
Trade Receivables	235,561,397,230	212,169,263,434	236,891,941,378
Inventories	148,176,950,489	142,198,551,138	139,757,377,536
Held-to-Maturity Financial Assets	1,000,000,000	1,000,000,000	3,000,000,000
Other Financial Assets	7,419,102,122	10,608,219,693	18,467,871,821
Deferred Income Tax Assets	376,857,141	550,794,580	54,980,121
Other Current Assets	10,248,034,050	7,530,626,690	4,988,074,675
Assets to be Sold	250,000,000	250,000,000	250,000,000
Non-Current Assets	1,415,820,205,699	1,333,739,101,861	1,266,830,589,925
Marketable Financial Instruments	64,923,451,821	63,748,054,821	35,590,416,905
Held-to-Maturity Financial Assets	3,000,000,000	3,000,000,000	1,000,000,000
Other Financial Assets	2,106,631,594	2,076,493,662	2,274,078,581
Investment_Subsidiaries	359,090,733,158	279,090,722,758	205,770,294,208
Investment_Related Companies	53,793,350,316	53,793,350,316	91,415,222,655
Tangibles	926,335,817,968	925,345,687,546	912,411,918,817
Intangibles	5,959,342,190	6,040,593,451	6,211,921,839
Other Non-Current Assets	610,878,652	644,199,307	777,481,927
Deferred Income Tax Assets			11,379,254,993
Total Liabilities	1,023,976,243,097	919,033,000,985	938,543,666,695
Current Liabilities	564,784,030,431	492,165,019,431	654,330,039,835
Debentures	308,621,692,563	270,056,831,083	413,344,857,229
Trade Payables	118,545,849,062	94,173,541,185	135,906,428,382
Advance Receipts	2,675,819,301	1,360,486,027	2,987,149,690
Other Current Financial Debts	91,739,552,404	93,176,279,856	97,914,119,128
Other Current Liabilities	43,201,117,101	33,397,881,280	4,177,485,406
Non-Current Liabilities	459,192,212,666	426,867,981,554	284,213,626,860
Long-Term Borrowings	433,543,078,336	402,958,468,128	268,280,897,273
Other Non-Current Financial Debts	1,328,445,439	2,943,247,500	2,988,661,601
Provision for Severance & Retirement	17,062,099,776	15,056,480,810	12,181,467,171
Provisions	819,506,278	807,594,263	762,600,815
Deferred Income Tax Credit	6,439,082,837	5,102,190,853
Capital Stock	218,122,350,000	218,122,350,000	218,122,350,000
Capital Surplus	299,650,301,168	299,650,301,168	299,648,155,808
Profit Surplus	303,691,775,162	311,906,547,807	285,621,317,236
Others	-15,389,744,246	-16,283,894,606	-27,929,965,528
Total Equity	806,074,682,084	813,395,304,369	775,461,857,516
Liab. & Shareholder’s Equity	1,830,050,925,181	1,732,428,305,354	1,714,005,524,211

Income Statement
Unit : Korean Won	01/01/2014~03/31/2014	As of 12/31/2013	As of 12/31/2012
Sales	332,892,901,599	1,399,118,728,211	1,482,493,773,807
Cost of Sold Goods	278,922,600,304	1,138,805,793,964	1,207,997,036,744
Gross Profit	53,970,301,295	260,312,934,247	274,496,737,063
Selling & Admin. Expenses	39,999,959,485	160,534,834,440	170,990,496,412
Operating Income	13,970,341,810	99,778,099,807	103,506,240,651
Other Income	1,379,420,656	11,995,816,285	24,442,946,198
Other Expenses	2,119,061,386	43,510,899,172	20,409,619,735
Finance Income	1,192,003,643	11,502,319,096	10,013,498,371
Finance Expenses	8,939,568,933	32,943,394,347	36,894,839,624
Profits from Investment on Related Companies			10,281,245,441
Income Before Taxes	5,483,135,790	46,821,941,669	70,376,980,420
Income Taxes Expenses	1,487,496,044	12,057,161,230	19,040,924,907
Net Income	3,995,639,746	34,764,780,439	51,336,055,513

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	13,145,232,172	101,995,353,405	184,394,477,844
Cash Flows from Operating	18,558,685,488	125,285,534,293	212,583,306,241
Interests Received	1,742,559,257	993,853,468	521,760,967
Interests Paid	-6,878,120,526	-30,489,361,987	-34,857,832,792
Dividends Received		7,159,692,211	178,853,100
Income Taxes	-277,892,047	-954,364,580	5,968,390,328
Cash Flows from Investing	-94,241,900,460	-100,325,990,329	-71,091,635,647
Cash Inflow from Investing	165,573,577	53,867,317,339	15,529,586,808
Cash Outflows for Investing	-94,407,474,037	-154,193,307,668	-86,621,222,455
Cash Flows from Financing	67,913,298,780	-21,052,303,873	-76,920,618,684
Cash Inflows from Financing	221,005,157,419	795,480,053,814	699,956,090,544
Cash Outflows from Financing	-153,091,858,639	-816,532,357,687	-776,876,709,228
Increase/Decrease in Cash	-13,183,369,508	-19,382,940,797	36,382,223,513
Cash at the Beginning of Year	24,381,747,958	43,764,688,755	7,382,465,242
Cash at the End of Year	11,198,378,450	24,381,747,958	43,764,688,755

Products, Technologies, Services Description

Main Products & Services

Printing & Writing Papaer Business Div.

Recomposing and selling printing paper such as uncoated woodfree series, coated woodfree series and information paper series produced at the paper mill in Changhang

Industrial Paper Business Div.

Recomposing and selling packaging paper such as duplex board series and common type of cartonboard series produced at the mills in Taejeon and Cheongju City.

Other Business Div.

Engineering Business Division which runs environment business and paper manufacturing plant business.

Detailed Products Spec.

Technologies Acquired

Trade Partners & Competitors

Suppliers

DONGHAEPULP CO., LTD(181211-0002548)

APRIL(INDIA)

INTERNATIONAL PAPER(USA)

FIBRZA(BRAZIL)

Customers

GS RETAIL CO., LTD.(110111-0090037)

Competitors

-Printing Paper

EN PAPER MFG CO.,LTD(134811-0000034)

MOORIM PAPER CO.,LTD(191111-0000782)

HONG WON PAPER MFG CO., LTD.(110111-0239221)

HANKUK PAPER MFG CO.,LTD(110111-0002818)

-Industrial Paper

DAEHAN PAPERTECH CO.,LTD(204311-0008603)

SERIM(110111-0233645)

HANCHANG PAPER CO.,LTD(184511-0000105)

SHINPOONG PAPER MFG CO.,LTD(134711-0002644)

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates-Domestic	HANSOL HOMEDECO CO.,LTD.(110111-0825624) (26.87% held by the subject company) HANSOL CHEMICAL CO., LTD(110111-0270895) HANSOL CONSTRUCTION CO.,LTD.(110111-2664400) (99.48% held by the subject company) HANSOL DEVELOPMENT CO., LTD.(141211-0005540) (91.01%held by the subject company) HANSOL LCD INC.(110111-0004682) HANSOL CSN CO.,LTD(110111-0150659) HANSOL EME CO., LTD.(160111-0123185) (18.97% held by the subject company) INNOPTIX CO.,LTD(110111-2296253) HANSOL PNS CO.,LTD. (110111-0175970) (46.07% held by the subject company) SEOUL PAPER CO., LTD.(110111-0990609) (52.5% held by the subject company) CNP CHEMICAL CO., LTD.(124411-0043349) E-SERVICE CO.,LTD.(284311-0011634) HANSOL LIGHTING INC.(110111-3626003) (47.22% held by the subject company) SEOUL PAPER CO.,LTD.(110111-0990609) MUNGYEONG ESCO CO.,LTD.(131311-0079553) HANSOL INTICUBE CO., LTD.(110111-2915605) MAUL SOUP CO., LTD.(110111-3858078) ARTONE PAPER MFG. CO.,LTD.(134811-0000034) (64.98% held by the subject company) HANSOL PAPERTECH CO.,LTD.(204311-0008603) (99.94% held by the subject company)
Affiliates-Overseas	HANSOL AMERICA INC FORT LEE EXECUTIVE DR SUITE 750, NEW JERSEY, US HANSOL DENMARK APS ØSTER FÆLLED VEJ 5 7800 SKIVE, DENMARK SCHADES HOLDING A/S ØSTER FÆLLED VEJ 5 7800 SKIVE, DENMARK SCHADES A/S ØSTER FÆLLED VEJ 5 7800 SKIVE, DENMARK SCHADES NORDIC A/S ØSTER FÆLLED VEJ 5 7800 SKIVE, DENMARK SCHADES OY GRANT THORNTON, P.O. BOX 18, 00271 HELSINKI, FINLAND. SCHADES SWEDEN AB PALSGATAN 4, 252 51 HELSINGBORG, SWEDEN. SCHADES HOLDING LTD CODNOR GATE INDUSTRIAL ESTATE, RIPLEY, DERBYSHIRE, DE5 3RZ, UK SCHADES LTD. CODNOR GATE INDUSTRIAL ESTATE, RIPLEY, DERBYSHIRE, DE5 3RZ, UK SCHADES HOLDING S.A.S AVENUE TOUSSAINT-CATROS, LE HAILLAN, 33160, FRANCE. SCHADES FRANCE EURL AVENUE TOUSSAINT-CATROS, LE HAILLAN, 33160, FRANCE. SNC SCHADES HOLDING AVENUE TOUSSAINT-CATROS, LE HAILLAN, 33160, FRANCE. SCHADES SNC AVENUE TOUSSAINT-CATROS, LE HAILLAN, 33160, FRANCE. HEIPA TECHNISCHE PAPIERE GMBH STR. 4, 37308 HEILBAD HEILIGENSTADT., GERMANY SCHADES BENELUX N.V-S.A SINT-DENIJSSTRAAT 112-114, B-1190 VORST, BELGIUM.
Affiliates-Overseas	HANZEE INDUSTRIAL CO.,LTD. HANSOL NEW ZEALAND KOPRI INC. HANSOL TECHNICS THAILAND HANSOL TECHNICS EUROPE S.R.O HANSOL CSN LOGISTICS (SHAGHAI) CO.,LTD. HANSOL CSN LOGISTICS (TIANJIN) CO.,LTD. HANSOL GOLD POINT LLC HANSOL CSN LOGISTICS INDIA PRIVATE LIMITED HANSOL CSN LOGISTICS MALAYSIA SDN.BHD HANSOL CSN LOGISTICS (HONG KONG) CO.LTD. HANSOL LOGISTICS VINA CO.LTD. TIANJIN C&P CHEMICAL CO.,LTD. HANSOL CNP VINA CO.,LTD. HANSOL ELECTRONIC MATERIALS (XI'AN) CO.,LTD. HANSOL ELECTRONIC VIETNAM CO.,LTD. TOKYO KAKOHKI CO.,LTD.
Overseas Office
Liaison Office
Overseas Branch
Joint Venture
Subsidiary
Corporate Ownership
Major Shareholders
Cooperative Enterprise	-Insured Company SAMSUNG FIRE & MARINE INSURANCE CO., LTD(110111-0005078)

Sales by Region (Activity & Markets)

Sales/ Unit :Mil KRW	09/2011	2010	2009
Export	547,430	672,056	585,524
Domestic	590,529	888,167	782,424
Total	1,137,959	1,560,223	1,367,948

The Subject deals with the companies in China, New Zealand, Thailand, and Hong Kong.

Court Action

There are 5 cases filed as Defendant(s)/ Debtor(s)/ Respondent(s) amounting 1,793,000,000 KRW.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.10
UK Pound	1	Rs.102.04
Euro	1	Rs.80.74

INFORMATION DETAILS

Analysis Done by :	DIV

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.