MIRA INFORM REPORT

Report Date :

28.05.2014

IDENTIFICATION DETAILS

Name :	ARIS INDUSTRIAL S.A.
Registered Office :	Industrial 491, Cercado, Lima, 1
Country :	Peru
Year of Establishment :	1943
Legal Form :	Joint Stock Company
Line of Business :	Industrial company that operates under two business units: TEXTILE: It produces wool and mixtures with polyester. Its facilities are equipped with: - Combed Spinning mill - Dyeing facility (fiber, thread and fabric) - Weavings and finish processes. CHEMICALS: It offers the products listed below: - Sulfur: for agricultural and industrial applications - Agrochemicals and fertilizers - Aluminum sulphate - Aluminum polychloride - Calcium hypochlorite - Sodium sulfate anhydrous - Sulfonic acid: linear and ramified
No. of Employees :	725

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)
Peru	A2	A2

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

PERU - ECONOMIC OVERVIEW

Peru's economy reflects its varied topography - an arid lowland coastal region, the central high sierra of the Andes, the dense forest of the Amazon, with tropical lands bordering Colombia and Brazil. A wide range of important mineral resources are found in the mountainous and coastal areas, and Peru's coastal waters provide excellent fishing grounds. Peru is the world's second largest producer of silver and third largest producer of copper. The Peruvian economy has been growing by an average of 5.6% for the past five years with a stable exchange rate and low inflation, which in 2013 was just below the upper limit of the Central Bank target range of 1 to 3%. For the last three years, this growth was due partly to high international prices for Peru's metals and minerals exports, which account for almost 60% of the country's total exports. Despite Peru's strong macroeconomic performance, dependence on minerals and metals exports and imported foodstuffs makes the economy vulnerable to fluctuations in world prices. Peru's rapid expansion coupled with cash transfers and other programs have helped to reduce the national poverty rate by 28 percentage points since 2002, but inequality persists and continues to pose a challenge for the Ollanta HUMALA administration, which has championed a policy of social inclusion and a more equitable distribution of income. Poor infrastructure hinders the spread of growth to Peru's non-coastal areas. Peru's free trade policy has continued under the HUMALA administration; since 2006, Peru has signed trade deals with the US, Canada, Singapore, China, Korea, Mexico, Japan, the EU, the European Free Trade Association, Chile, Thailand, Costa Rica, Panama, Venezuela, concluded negotiations with Guatemala, and begun trade talks with Honduras and El Salvador, Turkey and the Trans-Pacific Partnership. Peru also has signed a trade pact with Chile, Colombia, and Mexico, called the Pacific Alliance, that rivals Mercosur. Since the US-Peru Trade Promotion Agreement entered into force in February 2009, total trade between Peru and the United States has doubled. Although Peru has continued to attract foreign investment, political activism and protests are hampering development of some projects related to natural resource extraction.

Source : CIA

IDENTIFICATION

CORRECT COMPANY NAME	ARIS INDUSTRIAL S.A.
TAXPAYER REGISTRATION	RUC 20100257298
MAIN ADDRESS	Industrial 491, Cercado
POSTAL CODE	Lima, 1
DEPT/PROV/REGION/STATE	Lima / Lima
COUNTRY	PERU
TELEPHONE	(511) 3365428 - 3365429 - 3365470FAX 3365418
CORPORATE E-MAIL	aris@aris.com.pe
WEB	www.aris.com.pe
COMMENTS
We remaind you that your order was received without telephone number or tax file number that could have helped to streamline our management.

EXECUTIVE SUMMARY

Date of foundation	1943
permanent employees	725
Chief Executive	MARAVI FALCON, ANGEL MARTIN
Disposition	Very few information was given. Politely.
Payments policy	Usually to terms / good
Credit (**)	Risk is Minimal, Solvent, Satisfactory Financial Situation.
Number of times that this company was required: 28

LEGAL STRUCTURE

LEGAL STATUS	Joint-Stock Company
DATE OF INCORPORATION	1943	STARTING DATE	1943
PLACE OF REGISTRY	Lima
NOTARY OFFICE		DURATION	Perpetual
REGISTRATION	Volume 319, Entry 1, Page 25/ Record No.03019843
INITIAL CAPITAL	S/.1,038,100.= Soles Oro
CURRENT EXCHANGE RATE (US$)	S/.2.76 per 1USD
MEMBERSHIP	Cámara de Comercio de Lima / Sociedad Nacional de Industrias
COMMENTS
Municipal License: 47195 Subject was founded in 1943 as FABRICA DE HILADOS Y TEJIDOS SAN MIGUEL. On November 16, 1968 it became INDUSTRIAS TEXTILES S.A. On May 9, 1994, before Manuel Noya de la Piedra, Notary Public, its corporate name was changed to SAN MIGUEL INDUSTRIAL S.A., which was recorded in Volume 319, Entry 12, Pages 70 of the Public Registry of Lima, dated 17/06/1994. In accordance with Public Deed dated 07/05/1994, before Ricardo Ortiz de Zevallos Villarán, Notary Public, SAN MIGUEL INDUSTRIAL S.A. took over the split assets of FABRICA DE HILADOS Y TEJIDOS SAN MIGUEL (under LIQUIDATION) and RAYON INDUSTRIAL S.A., and formed a process known as split-off- merger in order to strengthen their activities. On 03/10/2009 SAN MIGUEL INDUSTRIAL S.A. changed its name to ARIS INDUSTRIAL S.A. According to the Board of Directors' Meeting held on 09/05/2011, the following was resolved: RESOLUTION 1: Granting powers of attorney in favor of Javier Barrios Teixidor, with ID No. 06514227 and Adolfo Enrique Barrios Teixidor, with ID 10544598, Mauricio Salgado Gerbi, with ID 07876109, Angel Martin Maravi Falcon, with ID 06766142, Jorge Luis Beltran Conza, with ID 09344575, and Moises Ernesto Rosas Tejada with ID 25591061, so on their own accord acting jointly or severally shall collect and/or cash, judicial and/or administrative deposit certificates, for and on behalf of the Company. RESOLUTION 2: Granting powers of attorney in favor of Mauricio Salgado Gerbi with ID 07876109, Angel Martín Maravi Falcón with ID 06766142, Jorge Luis Beltrán Conza, con ID 09344575, and Moisés Ernesto Rosas Tejada, with ID 25591061, so acting jointly or severaly, they can execute for and on behalf of the Company, the transfer notarial minutes as well as all the necessary documentation intended to improve the transfer of ownership of vehicles owned by the Company. RESOLUTION 3: Granting powers of attorney in favor of Jorge Alejandro Arenas Julian, ID 20074611, so on his own accord, he can execute for and on behalf of the Company, the transfer notarial minutes as well as all the necessary documentation intended for improving the transfer of ownership of a small motor vehicle, a Zongshen motorcycle, model zs125gy, year 2004, red, Serial No. lzsjcjl0945159149, owned by the company. This act has been entered under Record C000016, Electronic Entry 03019843 (09/22/2011). In accordance with Public Deed dated 12/12/2011, before Manuel Noya De la Piedra, Notary Public of the City of Lima and acording to the General Shareholders' Meeting held on 12/12/2011 it was resolved: To grant power of attorney in favor of Rafael Angiolo Ricci Calle (ID 08275744) so he can act and represent the Company before any political, administrative, police, judicial authorities, public and private entities. For that purpose, he shall file every kind of document and request, send simple letters and notarized letter, vested with general and special powers contained in Articles 74 and 75 of the Peruvian Civil Code, and Article 115, paragraphs 115.1 and 115.2 of the General Administrative Procedure Act, being entitled to file claims, criminal charges, administrative procedures, defenses and counterclaims amend them desist from any proceeding, the process or the claim, initiate non-contentious proceedings, submit a dispute to arbitration, give depositions, present depositions, act as a part or for third-party, recognize or produce documents, impeach or oppose evidence or means of proof; contest, challenge and/or delete those offered by the other party, request clarification and/or correction of judgments; attend any type of process, hearings, object means, such as motions to vacate, appeal, grievance at any other type of processes, settle the claim judicial or extrajudicially, court settlements; ask for any precautionary measures, expand and/or modify and/or replace and/or withdraw from them; offer counter precautionary measures, including counter guarantee. This event is recorded in Entry C00047, Electronic Certificate 03,019,843 (12/26/2011). According to SUNAT, Subject Company has been incorporated into the Regime of Sales Tax Withholding Agents (RS 008-2004) as from 02/01/2004; incorporated into the Regime of Sales Tax Collection Agents - Internal Sales (RS058-2006) as from 01/04/2006.

DIRECTORS - EXECUTIVES - SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
BARRIOS TEIXIDOR, JAVIER	CEO		24/072001
BARRIOS TEIXIDOR, ENRIQUE ADOLFO	Director		24/07/2001
MARAVI FALCON, ANGEL MARTIN	General Manager		26/022009
RODRIGUEZ PANTIGOSO, HEBERTH	Fabric Production Manager
HERRERA, RICARDO	Production Manager
SALGADO GERBI, MAURICIO	Business Unit Manager		07/01/2009
MACHUCA GARDINI, JUAN	Logistics Manager
CONDORI FERNANDEZ, RICARDO MARCELINO	Head of Human Resources
RICCI CALLE, RAFAEL ANGIOLO	Representative
BELTRAN CONZA, JORGE LUIS	Representative
ROSAS TEJADA, MOISES ERNESTO	Proxy
CABALLERO, PERCY	General Accountant

WHO IS WHO?

BARRIOS TEIXIDOR, JAVIER

TITLE

CEO

NATIONALITY

Peruvian

D.O.B.

031971

ID

DNI 06514227

DOMICILE

Paul de Beaudiez 555, Urb. Orrantia, San Isidro, , Lima ,Lima

TELEPHONE

2645321

BACKGROUND INFORMATION

He was a shareholder of RAYON INDUSTRIAL and FABRICA DE HILADOS Y TEJIDOS SAN MIGUEL. According to SUNAT (Tax Authority), the latter is under liquidation process by the liquidator Mr. Marcos Julio Cuba Cuadros.
 
Member of the National Society of Industries for the 2011-2012 period.

BARRIOS TEIXIDOR, ENRIQUE ADOLFO

TITLE

Director

NATIONALITY

Peruvian

D.O.B.

101972

ID

DNI 10544598

DOMICILE

Octavio Espinoza 273, San Isidro , Lima ,Lima

TELEPHONE

2642445

MARAVI FALCON, ANGEL MARTIN

TITLE

General Manager

NATIONALITY

Peruvian

D.O.B.

08MAY1967

ID

DNI 06766142

DOMICILE

Central, Ed. 7, 365-301, Urb. Portada de Monterrico, Surco, Lima, Lima ,Lima

TELEPHONE

3451731

TAX ID

10067661422

BACKGROUND INFORMATION

The Banking And Insurance Superintendency in its last report as of 03/31/201, registers below-mentioned:
 
- Loan S/. 22,921.=
- Credi cards 6,151.=
- Accrued yield  108.=
-------------------------------------------------------
TOTAL DEBT S/. 29,180.=
No committed guarantees were found. 

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	SIT.	COUNTRY
LONTON HOLDING PERU S.A.C.	General Manager	20521998831		PERU
MINERA DON ADOLFO S.A.C.	General Manager	20548297797		PERU
CONSORCIO INDUSTRIAL MATERIALES	Representative	20538593134		PERU
AGROPUNTO S.A.C.	Representative	20550844321		PERU
MINERA DON DARIO S.A.C.	General Manager	20553560846		PERU

RODRIGUEZ PANTIGOSO, HEBERTH

TITLE

Fabric Production Manager

NATIONALITY

Peruvian

D.O.B.

061959

ID

DNI 29270722

SALGADO GERBI, MAURICIO

TITLE

Business Unit Manager

NATIONALITY

Peruvian

D.O.B.

02FEB1972

ID

DNI 07876109

TAX ID

10078761097

MACHUCA GARDINI, JUAN

TITLE

Logistics Manager

NATIONALITY

Peruvian

D.O.B.

051963

ID

DNI 08566200

CONDORI FERNANDEZ, RICARDO MARCELINO

TITLE

Head of Human Resources

NATIONALITY

Peruvian

D.O.B.

03SEP1964

ID

DNI 08043032

RICCI CALLE, RAFAEL ANGIOLO

TITLE

Representative

NATIONALITY

Peruvian

ID

DNI 08275744

CIVIL STATUS

Married to Claudia Rosa Rainuzzo Velásquez

DOMICILE

Mariscal Sucre 198, Miraflores, Lima

PROFESSION

Lawyer

TAX ID

10082757444

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	SIT.	COUNTRY
PERUVIAN SPORTING GOODS S.A.C.	Representative	20532477418		PERU
MUNDO DEPORTIVO S.A.C.	Shareholder	20516264609		PERU
REVO.RICCI.RIVAD.Y NOVOA ABOG.EN LIQUID	Liquidator	20220186394		PERU
LA MADRID MERCANTI Y RICCI ABOGADOS S.A.	Manager	20300283927		PERU
RICCI Y ASOCIADOS S.A.C.	General Manager	20421422631		PERU
RAINER S.A.C.	Representative	20517051226		PERU
EQUISHOPS S.A.C. EN LIQUIDACION	Liquidator	20524133114		PERU
N STORES S.A.C.	Representative	20537390086		PERU

BELTRAN CONZA, JORGE LUIS

TITLE

Representative

NATIONALITY

Peruvian

D.O.B.

09NOV1971

ID

DNI 09344575

DOMICILE

, Lima

PROFESSION

Lawyer ( C.A.L.: 35850)

TAX ID

10093445754

ROSAS TEJADA, MOISES ERNESTO

TITLE

Proxy

NATIONALITY

Peruvian

D.O.B.

051961

ID

DNI 25591061

TAX ID

10255910618

BUSINESS HISTORY

The Company started operating in 1943. Its main product, then, was the skein of knitting wool of the brand "La Cigüeña", with a great success in the market.
 
In 1946, it started producing spun of combed wool for cashmere production, a product that was soon recognized for its excellent quality, encouraging the production of weaving.
 
Thus, the Company created the fabric brand "Barrington" to differentiate its products. Quickly, its quality and designs turned the brand into a symbol of elegance and quality assurance, leadership since the mid-fifties and which remains to date.
 
In 1984, as part of its successful diversification strategy, Rayón y Celanese Peruana was acquired a company dedicated to producing chemicals. This was the beginning of a long story that consolidated with new totally different business units, which are the key to growth and leadership of Industrial Aris.
 
It has two business units: Textiles and Chemicals. In the textile sector, it produces fabrics and wool yarns and works under the brand Barrington. Main international clients include prestigious brands like Oscar De la Renta, Tommy Hilfiger, Ungaro and Ralph Lauren and its exports are intended for the United States, Europe and Latin America.
 
Nationally, Aris Industrial is a supplier of the Peruvian State. In 2009, it was awarded a bidding tosell fabrics to manufacture police uniforms and recently they were awarded a bidding to manufacture uniforms for the Peruvian Air Force.

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

COMPANY NAME	COUNTRY	TAX REG.	RELATION %
SAN MIGUEL INMOBILIARIA S.A.C. (TERLAN SAC)	PERU	(AC) 20463271101	Related

BUSINESS

SIC Classification
Y - TEXTILES- HILANDERIA- TEJEDURIA Y CONEXOS (Industria textil: Hilanderia, tejeduria y teñido de telas. Producción y comercialización de textiles en general. No confeccion.)

Main activity

Industrial company that operates under two business units:
 
TEXTILE: It produces wool and mixtures with polyester. Its facilities are equipped with:
- Combed Spinning mill
- Dyeing facility (fiber, thread and fabric) 
- Weavings and finish processes.
 
CHEMICALS: It offers the products listed below:
- Sulfur: for agricultural and industrial applications
- Agrochemicals and fertilizers
- Aluminum sulphate
- Aluminum polychloride
- Calcium hypochlorite
- Sodium sulfate anhydrous
- Sulfonic acid: linear and ramified
 
Trademarks: PANTERA (Chemicals), BARRINGTON, FIFTY FIFTY, CARDIF (Textiles).

O P E R A T I O N S

Import

Yes

Country

Argentina, Belgium, Brazil, Chile, China, Colombia, Czech Republic, Ecuador, France, Germany, Hong Kong, India, Indonesia, Israel, Italy

ANNUAL Imports In US$ (CIF)

YEAR	AMOUNT
2014	10,069,280.00
2013	50,539,643.00
2012	51,414,313.00
2011	46,753,868.00
2010	35,692,101.00
2009	21,514,137.00

Export

Yes

COUNTRY

Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador

Annual exports in US$ (FOB)

YEAR	AMOUNT
2014	3,228,002.00
2013	12,666,770.00
2012	15,114,727.00
2011	12,689,516.00
2010	10,956,832.00
2009	10,511,112.00

% Credit SALES / Terms

100% (30 days-invoice)

% Ventas exterior (Paises)

20%

% DOMESTIC PURCHASES

35%

% FOREIGN PURCHASES

65%

SELLING TerritorY

80% (Domestic market)

EMPLOYEES

725

LOCATION
PREMISES	Own Settled
AREA	70,000 m2
OTHER PREMISES	Registered and main offices operate in the address stated in the identification field. It is located at an industrial area in the city. Premises are next to the production plant located at Av. Maquinarias 2970, Lima (rented premises). PRODUCTION SITES: - Av. Maquinarias 2970, Lima / Lima, 1 - Sub Lote 4-4, Predio Almonte (cruce Polongación Pachácutec y Av. Industrial, Lurín / Lima WAREHOUSES: - Carretera Panamericana Sur Km. 293, Salas, Ica. - Calle Mariscal Castilla 292, Chincha Alta, Chincha / Ica Subject has 8 stores in different districts of Lima.
PREVIOUS ADDRESS
Av.Industrial 491, Lima / Lima (De baja el 02/12/2002)

Comments

Subject also imports from Korea, Malaysia, Mexico, Morocco, Holland, Portugal, Russia, Singapore, Slovakia, Spain, Switizerland, Taiwan, Turkey, United Kingdom, USA, Venezuela.
 
Likewise, It exports to Italy, USA, Mexico, Spain, Panama and Venezuela.
 
 
Subject has an extensive client portfolio by line of products. Major clients are listed below:
 
Chemical Line:
- Industrias Pacocha SA
- Procter & Gamble Perú SRL
- Colgate Palmolive SA
 
Synthetic Fiber Line: 
- Western Cotton SA
- Ternos Monett SA
 
Foreign Clients: 
- Unilever de Bolivia 
- Oscar de la Renta
- Ungaro
- Brooks Brothers
- Calvin Klein
- Ralph Lauren
- Tommy Hilfiger

FINANCIAL INFORMATION

Disposition

Very few information was given. Politely.

Interviewee(s)

Percy Caballero

Information provided

Mr. Percy Caballero provided operating data, except for financial figures since Subject does not provide information under confidentiality reasons. 

SALES

US$ 0.00 ()

FINANCIAL SITUATION

Subject is a long-standing and well-managed company which has been operating without problems. Its personnel are high-skilled members who meet properly the regular development of its operations. 

Sales History in US$ (of Balance Sheet, statement of third parties)

Date	Sales (US$)
31/12/2011	102,542,857.14
31/12/2010	89,165,000.00
31/12/2009	80,799,480.97
31/12/2008	188,976,433.12
31/12/2007	154,241,666.67

Property of company comments

Subject is referred to be the owner of the premises where it operates (address in the heading).

INSURANCE

COMPANY	AGAINST
PACIFICO PERUANO SUIZA CIA. DE SEGUROS	All risk

Main fixed assets of the company (general detail)

Broker: Segumar S.A. Corredores de Seguros.

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

(Confidential Information)

TRADE REFERENCES

Supplier: TRANSPORTE Y MANIOBRAS S.R.L.	Tel.: (511) 4733103	Country: PERU
Goods/Services? : Heavy transport service
Highest credit? : Not specified
Client since? : 2006	Terms? : 30 days	Performance? : Prompt
Supplier: DISALTEX SA	Tel.: (511) 2615261	Country: PERU
Goods/Services? : Customs service
Highest credit? : DC 50,000
Client since? : 2007	Terms? : 30-45 days	Performance? : Prompt
Supplier: LINDE PERÚ S..A	Tel.: (511) 4132000	Country: PERU
Goods/Services? : Industrial gas
Highest credit? : US$ 15,000
Client since? : 2004	Terms? : 30 days	Performance? : Prompt
Supplier: CASOR ADUANERO SA	Tel.: (511) 4575011	Country: PERU
Goods/Services? : Customs service
Highest credit? : US$ 5,000
Client since? : 2007	Terms? : 30 days	Performance? : Prompt
Supplier: DLK SOLUCIONES ESTRATEGICAS SA	Tel.: (511) 4212828	Country: PERU
Goods/Services? : IT and consulting service
Highest credit? : US$ 2,500
Client since? : 2006	Terms? : 30 days	Performance? : Prompt
Supplier: CALIBRACIONES SA	Tel.: (511) 2210845	Country: PERU
Goods/Services? : Gauge equipment
Highest credit? : Not specified
Client since? : 2004	Terms? : 30 days	Performance? : Prompt
Comments : Client until 2009

Note : Other suppliers did not provide information or could not be consulted

Supplier	Country	Comments
ADUAMÉRICA SA	PERU
EQUIPOS TÉRMICOS S.A.	PERU
FM INDUSTRIAL S.A.	PERU
RAM ELECTROSERVICIOS SRL	PERU
MANUFACURA DE PAPELES Y CARTONES SA	PERU
ELECTROTECNIA SERVICIOS Y COMERCIO S.R.L	PERU
JARA RESISTENCIAS S.R.L.	PERU
QUÍMICA SUIZA	PERU
QUÍMICA VENOCO	VENEZUELA
TRAVI PERU S.A.	PERU
WAYRA COOL E.I.R.L.	PERU
HYOSUG	SOUTH COREA
FURHMANN S.A.	ARGENTINA
SUDANTEX VENEZUELA SA	VENEZUELA
WELLMAN	U.S.A.

CREDIT BUREAU COMMENTS

Subject has a debt, regarding to two periods, amounted to S/.1,737 with AFP INTEGRA S.A. 

SUPERINTENDENCY OF BANK & INSURANCE (SBS)                    AS OF: 31/03/2014          T/C per USD: 2.81

Bank	Debt Rating (*) See caption	Current Debt
		DOMESTIC CURRENCY	FOREIGN CURRENCY
CREDITO	NORMAL	67,911,655.00
CITIBANK DEL PERU	NORMAL	16,657,652.00
SCOTIABANK	NORMAL	15,609,176.00
BBVA CONTINENTAL	NORMAL	13,444,266.00
BIF	NORMAL	4,844,555.00
INTERBANK	NORMAL	1,773,775.00
Total		120,241,079.00
Guarantees		39,965,506.00

LAWSUITS

On July 18, 2001, San Miguel Industrial S.A. (currently called ARIS INDUSTRIAL S.A.) was reported with a Real Estate Auction in the District of La Victoria (Lima, 13) for S/.32,588.= Nuevos Soles, before the Court 48JECL, in favor of Banco de La Nacion for enforcement of guarantees.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.06
UK Pound	1	Rs.99.61
Euro	1	Rs.80.60

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	NIT

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.