MIRA INFORM REPORT

Report Date :

02.09.2014

IDENTIFICATION DETAILS

Name :	H.I.S. MALDIVES TRAVEL PTE LTD
Registered Office :	100, Tras Street, 17-02, 100 AM, 079027
Country :	Singapore
Financials (as on) :	31.07.2013
Date of Incorporation :	17.03.2001
Com. Reg. No.:	200101799-M
Legal Form :	Private Limited
Line of Business :	Subject is principally engaged in the travel agency.
No of Employees :	Not Available

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 – June 01, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Singapore	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

SINGAPORE - ECONOMIC OVERVIEW

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but rebounded 15.1% in 2010, on the strength of renewed exports, before slowing to in 2011-13, largely a result of soft demand for exports during the second European recession. Over the longer term, the government hopes to establish a new growth path that focuses on raising productivity. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.	:	200101799-M
COMPANY NAME	:	H.I.S. MALDIVES TRAVEL PTE LTD
FORMER NAME	:	N/A
INCORPORATION DATE	:	17/03/2001
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PRIVATE LIMITED
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	100, TRAS STREET, 17-02, 100 AM, 079027, SINGAPORE.
BUSINESS ADDRESS	:	100 TRAS STREET #17-01 AMARA CORPORATE TOWER, 079027, SINGAPORE.
TEL.NO.	:	65-62270076
FAX.NO.	:	65-62272572
CONTACT PERSON	:	KRISHNASAMY NAIDU BALENDRA ( DIRECTOR )
PRINCIPAL ACTIVITY	:	TRAVEL AGENCY
ISSUED AND PAID UP CAPITAL	:	100,000.00 ORDINARY SHARE, OF A VALUE OF SGD 100,000.00
SALES	:	USD 8,917,438 [2013]
NET WORTH	:	USD 1,268,182 [2013]
STAFF STRENGTH	:	N/A
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	STRONG
PAYMENT	:	PROMPT
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	N/A
CURRENCY EXPOSURE	:	N/A
GENERAL REPUTATION	:	SATISFACTORY
INDUSTRY OUTLOOK	:	MARGINAL GROWTH

HISTORY / BACKGROUND

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The Subject is principally engaged in the (as a / as an) travel agency.

The immediate holding company of the Subject is H.I.S. MANAGEMENT SERVICES SDN. BHD., a company incorporated in MALAYSIA.

The ultimate holding company of the Subject is H.I.S. CO. LTD, a company incorporated in JAPAN.

Share Capital History

Date	Issue & Paid Up Capital
23/07/2014	SGD 100,000.00

The major shareholder(s) of the Subject are shown as follows :

Name	Address	IC/PP/Loc No	Shareholding	(%)
H.I.S. MANAGEMENT SERVICES SDN. BHD.	MENARA MILENIUM, JALAN DAMANLELA, PUSAT BANDAR DAMANSARA DAMANSARA HEIGHTS, LEVEL7, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	T12UF4067	100,000.00	100.00
			---------------	------
			100,000.00	100.00
			============	=====

+ Also Director

The Subject's interest in other companies (Subsidiaries/Associates) are shown as follow :

Local No	Country	Company	(%)	As At
	MALDIVES	JAPAN H.I.S TOURS PVT LTD	100.00	31/07/2013

DIRECTORS

DIRECTOR 1

Name Of Subject	:	KRISHNASAMY NAIDU BALENDRA
Address	:	19, CANTONMENT CLOSE, 23-71, 080019, SINGAPORE.
IC / PP No	:	S2658545G
Nationality	:	SINGAPOREAN
Date of Appointment	:	17/03/2001

DIRECTOR 2

Name Of Subject	:	HIKARU WADA
Address	:	1-220, SATSUKIGA OKA, KANI-SHI, GIFU-KEN, JAPAN.
IC / PP No	:	TK2285820
Nationality	:	JAPANESE
Date of Appointment	:	01/12/2009

MANAGEMENT

1)	Name of Subject	:	KRISHNASAMY NAIDU BALENDRA
	Position	:	DIRECTOR

2)	Name of Subject	:	CARMEN
	Position	:	STAFF

AUDITOR

Auditor	:	A. GUAN & CO.
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	AMY LEE MEI LAN
	IC / PP No	:	S1716039G
	Address	:	414, EUNOS ROAD 5, 04-60, 40041, SINGAPORE.

BANKING

No Banker found in our databank. 

ENCUMBRANCE (S)

No encumbrance was found in our databank at the time of investigation. 

LEGAL CHECK AGAINST SUBJECT

* A check has been conducted in our databank againt the Subject whether the subject has been involved in any litigation. 

No legal action was found in our databank. 

No winding up petition was found in our databank. 

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	N/A
Overseas	:	N/A

The Subject is a service provider. 

The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT
Prompt 0-30 Days	[	X	]	Good 31-60 Days	[	]	Average 61-90 Days	[	]
Fair 91-120 Days	[		]	Poor >120 Days	[	]

CLIENTELE

Local	:	N/A
Overseas	:	N/A

The Subject refused to disclose its clientele. 

OPERATIONS

Services

:

TRAVEL AGENCY

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) travel agency. 

The Subject refused to disclose its operation. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-62270076
Match	:	N/A
Address Provided by Client	:	100 TRAS STREET #17 -02 AMARA CORPORATE TOWER
Current Address	:	100 TRAS STREET #17-01 AMARA CORPORATE TOWER, 079027, SINGAPORE.
Match	:	NO

Other Investigations

On 22nd August 2014 we contacted one of the staff from the Subject and she provided some information.

The address provided belongs to the Subject's registered office.

The Subject refused to disclose the number of employees.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	56.71%	]
Profit/(Loss) Before Tax	:	Decreased	[	49.07%	]
Return on Shareholder Funds	:	Unfavourable	[	7.17%	]
Return on Net Assets	:	Unfavourable	[	7.48%	]
The increase in turnover could be due to the Subject adopting an aggressive marketing strategy.The Subject's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Nil	[	0 Days	]
Debtor Ratio	:	Favourable	[	6 Days	]
Creditors Ratio	:	Favourable	[	0 Days	]
As the Subject is a service oriented company, the Subject does not need to keep stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Favourable	[	3.10 Times	]
Current Ratio	:	Favourable	[	3.10 Times	]
A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Nil	[	0.00 Times	]
Gearing Ratio	:	Favourable	[	0.00 Times	]
The Subject's interest cover was nil as it did not pay any interest during the year. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.
Overall Assessment :
Although the Subject's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the Subject's profit margin. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject did not make any interest payment during the year. The Subject was dependent on its shareholders' funds to finance its business needs. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.
Overall financial condition of the Subject : STRONG

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators :	2009	2010	2011	2012	2013
Population (Million)	4.98	5.08	5.18	5.31	5.40
Gross Domestic Products ( % )	(0.8)	14.5	4.9	1.3	3.7
Consumer Price Index	0.6	2.8	5.2	4.6	2.4
Total Imports (Million)	356,299.3	423,221.8	459,655.1	474,554.0	466,762.0
Total Exports (Million)	391,118.1	478,840.7	514,741.2	510,329.0	513,391.0
Unemployment Rate (%)	3.2	2.2	2.1	2.0	1.9
Tourist Arrival (Million)	9.68	11.64	13.17	14.49	15.46
Hotel Occupancy Rate (%)	75.8	85.6	86.5	86.4	86.3
Cellular Phone Subscriber (Million)	1.37	1.43	1.50	1.52	1.97
Registration of New Companies (No.)	26,414	29,798	32,317	31,892	37,288
Registration of New Companies (%)	4.3	12.8	8.5	(1.3)	9.8
Liquidation of Companies (No.)	22,393	15,126	19,005	17,218	17,369
Liquidation of Companies (%)	113.4	(32.5)	25.6	9.4	(5.3)
Registration of New Businesses (No.)	26,876	23,978	23,494	24,788	22,893
Registration of New Businesses (%)	8.15	(10.78)	2.02	5.51	1.70
Liquidation of Businesses (No.)	23,552	24,211	23,005	22,489	22,598
Liquidation of Businesses (%)	11.4	2.8	(5)	(2.2)	0.5
Bankruptcy Orders (No.)	2,058	1,537	1,527	1,748	1,992
Bankruptcy Orders (%)	(11.5)	(25.3)	(0.7)	14.5	14.0
Bankruptcy Discharges (No.)	3,056	2,252	1,391	1,881	2,584
Bankruptcy Discharges (%)	103.7	(26.3)	(38.2)	35.2	37.4
INDUSTRIES ( % of Growth ) :
Agriculture
Production of Principal Crops	3.25	(0.48)	4.25	3.64	-
Fish Supply & Wholesale	(1.93)	(10.5)	12.10	(0.5)	-
Manufacturing *	71.5	92.8	100.0	100.3	102.0
Food, Beverages & Tobacco	90.4	96.4	100.0	103.5	103.5
Textiles	145.9	122.1	100.0	104.0	87.1
Wearing Apparel	211.0	123.3	100.0	92.1	77.8
Leather Products & Footwear	79.5	81.8	100.0	98.6	109.8
Wood & Wood Products	101.4	104.0	100.0	95.5	107.4
Paper & Paper Products	95.4	106.1	100.0	97.4	103.2
Printing & Media	100.9	103.5	100.0	93.0	86.1
Crude Oil Refineries	96.4	95.6	100.0	99.4	93.5
Chemical & Chemical Products	80.3	97.6	100.0	100.5	104.1
Pharmaceutical Products	49.1	75.3	100.0	109.7	107.2
Rubber & Plastic Products	101.2	112.3	100.0	96.5	92.9
Non-metallic Mineral	91.9	92.5	100.0	98.2	97.6
Basic Metals	92.6	102.2	100.0	90.6	76.5
Fabricated Metal Products	90.8	103.6	100.0	104.3	105.1
Machinery & Equipment	57.3	78.5	100.0	112.9	114.5
Electrical Machinery	86.8	124.1	100.0	99.3	108.5
Electronic Components	85.2	113.6	100.0	90.6	94.3
Transport Equipment	96.0	94.0	100.0	106.3	107.5
Construction	(36.9)	14.20	20.50	28.70	-
Real Estate	1.4	21.3	25.4	31.9	-
Services
Electricity, Gas & Water	1.70	4.00	7.00	6.30	-
Transport, Storage & Communication	3.90	12.80	7.40	5.30	-
Finance & Insurance	(16.4)	(0.4)	8.90	0.50	-
Government Services	4.50	9.70	6.90	6.00	-
Education Services	0.10	(0.9)	(1.4)	0.30	-
* Based on Index of Industrial Production (2011 = 100)

INDUSTRY ANALYSIS

INDUSTRY :	ECONOMY
According to Ministry of Trade and Industry (MTI), the Singapore economy is expected to grow by 1.0 to 3.0% in 2013 as growth in the global economy is likely to remain subdued despite macroeconomic conditions stablising in recent months of 2013.
However, the global economic outlook is still clouded with uncertainties. Notably, concerns remain over the extent of the fiscal cutback with the budget sequester in the US and potential flareup of the debt crisis in the Eurozone. Should any of these risks materialise, Singapore's economic growth could come in lower than expected.
Although resilient domestic demand in emerging Asia will provide some support to global demand, it will not fully mitigate the effects of an economic slowdown in the advanced economies. Consequently, Singapore's externally-oriented sectors such as electronics and wholesale trade will continue to perform poorly, while the financial services sector will be affected by heightened uncertainties in the external environment. Nevertheless, there will be some modest support to growth from the biomedical manufacturing cluster and tourism-related sectors. The former will likely see increased production of active pharmaceutical ingredients and biologics while the latter will benefit from rising visitor arrivals from the region.
For the whole of 2012, Singapore's GDP growth slowed to 1.3%, from 5.2% in 2011, mainly due to weakness in the externally-oriented sectors. Manufacturing sector growth slowed sharply from 7.8% in the year 2011 to 0.1%. The hudge decline was largely due to a rebound in the output of the biomedical manufacturing and transport engineering clusters, which together helped to mitigate part of the fall in output in the electronics cluster. By contrast, the construction sector growth accelerated from 6.3% to 8.2% in 2012, due to the expansion in both public and private building activities.
Growth in the services producing industries also moderated to 1.2% in 2012, compared to 4.6% in 2011. This was mainly due to the slowdown in wholesale and retail trade, accommodation and food services as well as other services industries. In particular, the wholesale and retail trade sector contracted by 0.7%, compared to the 1.6% growth in year 2011. The accommodation and food services as well as other services industries posted lower gains of 2.8% and 0.1% respectively, compared to 8.2% and 6.3% in 2011.
For the whole of 2012, all sectors, except the wholesale and retail trade, contributed to growth. Business services was the largest contributor with 0.4 percentage-points, followed by construction with 0.3 percentage-points and transportation and storage at 0.2 percentagepoints. Besides, growth in total demand moderated to 2.4%, compared to 4.2% in 2011. Domestic demand was the key contributor to total demand growth, accounting for 2.2 percentage-points, or over 90 per cent, of the increase.
In 2012, total domestic demand rose by 9.7%, following the 6.5% increase in 2011. The growth in total domestic demand was broad-based across consumption, gross fixed capital formation (GFCF) and changes in inventories. The total consumption expenditure in 2012 grew slightly by 0.9%, easing from the 3.7% growth in 2011. Public consumption expenditure fell by 3.6%, reversing the 0.5% growth in 2011. Private consumption expenditure registered a 2.2% gain, moderating from the 4.6% increase in the preceding year.
Overall, the Singapore economy is expected to grow by 1.0 to 3.0% in 2013.
OVERALL INDUSTRY OUTLOOK : MARGINAL GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 2001, the Subject is a Private Limited company, focusing on travel agency. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. 

Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 

Financially, the Subject registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject however is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at USD 1,268,182, the Subject should be able to maintain its business in the near terms. 

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. 

We regard that the Subject's overall payment habit is prompt. The Subject had a favourable creditors' ratio as evidenced by its favourable collection days. 

The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject's future performance is very much depend on its marketing strategies in order to retain its position in the market. 

Based on the above condition, we recommend credit be granted to the Subject promptly.

PROFIT AND LOSS ACCOUNT

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH SINGAPORE FINANCIAL REPORTING STANDARDS.

Financial Year End	2013-07-31	2012-07-31
Months	12	12
Consolidated Account	Company	Company
Audited Account	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES
Financial Type	FULL	FULL
Currency	USD	USD
TURNOVER	8,917,438	5,690,254
	----------------	----------------
Total Turnover	8,917,438	5,690,254
Costs of Goods Sold	(8,406,016)	(5,268,169)
	----------------	----------------
Gross Profit	511,422	422,085
	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	94,938	186,403
	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	94,938	186,403
Taxation	(3,959)	(15,220)
	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	90,979	171,183
	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	1,183,678	1,035,002
	----------------	----------------
As restated	1,183,678	1,035,002
	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	1,274,657	1,206,185
TRANSFER TO RESERVES - General	-	(20)
DIVIDENDS - Ordinary (paid & proposed)	(86,787)	(22,487)
	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	1,187,870	1,183,678
	=============	=============

BALANCE SHEET

ASSETS EMPLOYED:
FIXED ASSETS	4,432	-
LONG TERM INVESTMENTS/OTHER ASSETS
Subsidiary companies	784	784
	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	784	784
	----------------	----------------
TOTAL LONG TERM ASSETS	5,216	784
Stocks	-	2,045
Trade debtors	137,016	2,722
Other debtors, deposits & prepayments	1,089	2,594
Amount due from holding company	275,079	184,125
Amount due from related companies	544,420	672,755
Cash & bank balances	906,993	1,004,951
	----------------	----------------
TOTAL CURRENT ASSETS	1,864,597	1,869,192
	----------------	----------------
TOTAL ASSET	1,869,813	1,869,976
	=============	=============
Other creditors & accruals	562,937	588,613
Amounts owing to related companies	33,730	1,550
Provision for taxation	4,211	15,823
	----------------	----------------
TOTAL CURRENT LIABILITIES	600,878	605,986
	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	1,263,719	1,263,206
	----------------	----------------
TOTAL NET ASSETS	1,268,935	1,263,990
	=============	=============
SHARE CAPITAL
Ordinary share capital	80,312	80,312
	----------------	----------------
TOTAL SHARE CAPITAL	80,312	80,312
Retained profit/(loss) carried forward	1,187,870	1,183,678
	----------------	----------------
TOTAL RESERVES	1,187,870	1,183,678
	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	1,268,182	1,263,990
Deferred taxation	753	-
	----------------	----------------
TOTAL LONG TERM LIABILITIES	753	-
	----------------	----------------
	1,268,935	1,263,990
	=============	=============

FINANCIAL RATIO

TYPES OF FUNDS
Cash	906,993	1,004,951
Net Liquid Funds	906,993	1,004,951
Net Liquid Assets	1,263,719	1,261,161
Net Current Assets/(Liabilities)	1,263,719	1,263,206
Net Tangible Assets	1,268,935	1,263,990
Net Monetary Assets	1,262,966	1,261,161
BALANCE SHEET ITEMS
Total Borrowings	0	0
Total Liabilities	601,631	605,986
Total Assets	1,869,813	1,869,976
Net Assets	1,268,935	1,263,990
Net Assets Backing	1,268,182	1,263,990
Shareholders' Funds	1,268,182	1,263,990
Total Share Capital	80,312	80,312
Total Reserves	1,187,870	1,183,678
LIQUIDITY (Times)
Cash Ratio	1.51	1.66
Liquid Ratio	3.10	3.08
Current Ratio	3.10	3.08
WORKING CAPITAL CONTROL (Days)
Stock Ratio	0	0
Debtors Ratio	6	0
Creditors Ratio	0	0
SOLVENCY RATIOS (Times)
Gearing Ratio	0.00	0.00
Liabilities Ratio	0.47	0.48
Times Interest Earned Ratio	0.00	0.00
Assets Backing Ratio	15.80	15.74
PERFORMANCE RATIO (%)
Operating Profit Margin	1.06	3.28
Net Profit Margin	1.02	3.01
Return On Net Assets	7.48	14.75
Return On Capital Employed	7.48	14.75
Return On Shareholders' Funds/Equity	7.17	13.54
Dividend Pay Out Ratio (Times)	0.95	0.13
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.47
UK Pound	1	Rs.100.43
Euro	1	Rs.79.40

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	SMN

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.