MIRA INFORM REPORT

Report Date :

17.09.2014

IDENTIFICATION DETAILS

Name :	A. S. WATSON GROUP (HK) LTD.

Registered Office :	22/F., Hutchison House, 10 Harcourt Road

Country :	Hong Kong

Date of Incorporation :	28.03.1996

Com. Reg. No.:	19881299

Legal Form :	Limited Company

Line of Business :	Subject is engaged in Retailing; supermarket operating; water, beverage, fruit juice and frozen products manufacturing and distributing.

No of Employees :	166,117 [Group As At 30.06.2014]

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
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)

Hong Kong

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

HONG KONG - ECONOMIC OVERVIEW

Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 12% of total system deposits in Hong Kong by the end of 2013. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's total trade by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 34.9 million in 2012, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies.

Source : CIA

Company Name & Address

A. S. WATSON GROUP (HK) LTD.

ADDRESS: 22/F., Hutchison House, 10 Harcourt Road, Hong Kong.

PHONE: 852-2128 1188

FAX: 852-2128 1770

E-MAIL: services@asw.com.hk

MANAGEMENT:

Managing Director: Mr. Lai Kai Ming, Dominic

SUMMARY

Incorporated in the British Virgin Islands on: 28th March, 1996.

Registered in Hong Kong on: 21st May, 1996.

Organization: Limited Company (Non-Hong Kong Company).

Capital: Authorized: US$50,000.00

Issued & Paid Up: US$1.00

Business Category: Retailing; supermarket operating; water, beverage, fruit juice and frozen products manufacturing and distributing.

Group Turnover:- (Year ended 31-12-2013)

HK$149,147 million (A. S. Watson Group – including associates and jointly controlled entities)

HK$256,234 million (Hutchison Whampoa Group – excluding associates and jointly controlled entities)

Group Employees: 166,117. (As at 30-06-2014)

Main Dealing Banker: The Hong Kong & Shanghai Banking Corp. Ltd., Hong Kong.

Banking Relation: Excellent.

Name

A. S. WATSON GROUP (HK) LTD.

ADDRESS

Registered Office:-

P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands.

Hong Kong Principal Place of Business:-

22/F., Hutchison House, 10 Harcourt Road, Hong Kong.

Operating Office:-

6-11/F., Watson House, 1-5 Wo Liu Hang Road, Fo Tan, Shatin, New Territories, Hong Kong.

[Tel: 852-2606 8833; Fax: 852-2695 3664]

[P.O. Box 250, Shatin, New Territories, Hong Kong.]

Plant:-

Watson’s Water Centre, 6 Dai Li Street, Tai Po Industrial Estate, Tai Po, New Territories, Hong Kong.

[Tel: 2660 1688; Fax: 2661 6215]

[P.O. Box 103, Tai Po Post Office, New Territories, Hong Kong.]

Intermediate Holding Company:-

A. S. Watson & Co. Ltd., Hong Kong.

Ultimate Holding Company:-

Hutchison Whampoa Ltd., Hong Kong.

Business Names:- (Same BR No. 19881299)

· A.S. Watson Asia, Hong Kong.

· A.S. Watson Beverages, Hong Kong.

· A.S. Watson Industries, Hong Kong.

· Big Deal, Hong Kong.

· Citrus Growers International, Hong Kong.

· Fortress, Hong Kong.

· Fountain Food, Hong Kong.

· Great, Hong Kong.

· Hong Kong Water Bottling, Hong Kong.

· Park’N Shop, Hong Kong.

· Priday Enterprises, Hong Kong.

· Watson’s The Chemist, Hong Kong.

· Watson’s Water, Hong Kong.

· Watson’s Wine Cellar, Hong Kong.

· Watson’s, Hong Kong.

· Watsons Wine Wholesale, Hong Kong.

Associated/Affiliated Companies:-

A. S. Watson Group of Companies

· S. Watson (Europe) Group AG, Switzerland.

· S. Watson (Europe) Holdings B.V., Netherlands.

· S. Watson (France) SNC, France.

· S. Watson (Health & Beauty Continental Europe) BV, Netherlands.

· S. Watson (Health & Beauty UK) Ltd., UK.

· S. Watson (Trading Hong Kong) Ltd., Hong Kong.

· S. Watson (Trading) Macao Commercial Offshore Ltd., Macau.

· S. Watson Guzellik ve Bakim Urunleri Tic AS, Turkey.

· S. Watson Industries Ltd., Hong Kong.

· A.S. Watson Water Ltd., Hong Kong.

· A/S Drogras, Latvia.

· Beijing Watson’s Distilled Water Co. Ltd., China.

· Central Watson Co. Ltd., Thailand.

· DC Ukraine, Ukraine.

· Dirk Rossmann GmbH, Germany.

· Fortress Ltd., Hong Kong.

· GS-Watsons, Korea.

· Guangzhou Aircraft Maintenance Engineering Co. Ltd., China.

· Guangzhou Park’N Shop Supermarkets Ltd., China.

· Guangzhou Watson’s Food & Beverages Co. Ltd., China.

· Guangzhou Watson’s Personal Care Stores Ltd., China.

· ICI Paris XL Nederland B.V., Netherlands.

· Kruidvat B.V. B.A., Belgium.

· Kruidvat Retail B.V., Netherlands.

· Marionnaud Parfumeries S.A., France.

· Nuance-Watson (HK) Ltd. Partnership, Hong Kong.

· Nuance-Watson (HK) Ltd., Hong Kong.

· Nuance-Watson (Singapore) Pte. Ltd., Singapore.

· Nuance-Watson General Partner Ltd., Hong Kong.

· Parfumerie ICI Paris XL N.V., Belgium.

· Park’N Shop Ltd., Hong Kong.

· Rossmann Magyarorszag kft, Czech Republic.

· Rossmann Spol s.r.o., Hungary.

· Rossmann Supermarkety Drogeryjne Polska Sp.z.o.o., Poland.

· Savers Health & Beauty Ltd., UK.

· Shanghai Sparkling Drinking Water Co. Ltd., China.

· Shenzhen Park’N Shop Ltd., China.

· Spektr Group Ltd. Liability Co., Russia.

· Superdrug Stores plc, UK.

· The Central Watson Co. Ltd., Thailand.

· The Perfume Shop Ltd., UK.

· Watson’s Park’N Shop Ltd., Taiwan.

· Watson’s Personal Care Stores (Philippines) Inc., Philippines.

· Watson’s Personal Care Stores (Taiwan) Co. Ltd., Taiwan.

· Watson’s Personal Care Stores Pte. Ltd., Singapore.

· Watson’s Personal Care Stores Sdn. Bhd., Malaysia.

· Watson’s The Chemist Ltd., Hong Kong.

· Watsons Indonesia (P.T. Duta Intidaya), Indonesia.

Associated with:-

Hutchison Whampoa Group of Companies

BUSINESS REGISTRATION NUMBER

19881299

COMPANY FILE NUMBER

F0007708

AUTHORIZED REPRESENTATIVE IN HONG KONG:

Name: Mr. Edith SHIH

Address: 13C, 9 Brewin Path, Hong Kong.

CAPITAL

Authorized Share Capital: US$50,000.00 (Divided into 50,000 shares of US$1.00 each)

Issued & Paid Up Capital: US$1.00

DIRECTORS

(As per registry dated 21-05-2014)

Name (Nationality)	Address
Frank John SIXT	House C, Peak Villas, 86-88 Peak Road, Hong Kong.
LAI Kai Ming, Dominic	Flat A, 32/F., 39 Conduit Road, Mid-Levels, Hong Kong.
Philippe Rene GIARD	House B-6, Solemar Villas, 15 Silver Cape Road, Clear Water Bay, Sai Kung, New Territories, Hong Kong.
NGAI Man Lin, Malina	Flat A, 49/F., Tower 1, Harbourfront Landmark, 11 Wan Hoi Street, Whampoa, Hunghom, Kowloon, Hong Kong.
Alan John HEATON	House B3, Chateau Royale, 1 Yung Yi Road, Tai Po, New Territories, Hong Kong.

SECRETARY

(As per registry dated 21-05-2014)

Name

(Nationality)

Address

Edith SHIH

22/F., Hutchison House, 10 Harcourt Road, Hong Kong.

HISTORY

The subject was incorporated in the British Virgin Islands on 28th March, 1996 as an International Business Company under The International Business Companies Act (Cap. 291). It has established a principal place of business in Hong Kong and has also registered in the Companies Registry as an oversea company on 21st May, 1996 under Part XI of the Hong Kong Companies Ordinance. The subject has become a non-Hong Kong company since 14th December, 2007.

Originally the subject was registered under the name of Incenta Ltd., name changed to the present style on 28th June, 1996.

Apart from these, neither material change nor amendment has been ever traced and noted.

OPERATIONS

Activities & Lines: Retailing; supermarket operating; water, beverage, fruit juice and frozen products manufacturing and distributing.

Group Employees: 166,117. (As at 30-06-2014)

Commodities Imported:-

· Pharmaceuticals – USA, UK, Sweden and Denmark.

· Cosmetics and perfumes – USA and UK.

· Drugs – UK.

· Family appliances – UK.

· Chemicals – USA and UK.

· Surgical appliance – USA and UK.

· Bar equipment – UK.

· Machinery – Japan.

· Wines and spirits – USA, UK, Portugal, Hungary, Germany, Spain, Australia, France, Singapore, Jamacia and Italy.

Markets: Hong Kong, Southeast Asia and China.

Group Turnover:-

Fiscal Year/Period	A. S. Watson Group (Including associates and jointly controlled entities)	Hutchison Whampoa Group (Excluding associates and jointly controlled entities)
Year ended 31-12-2009	HK$116,098 million	HK$208,808 million
Year ended 31-12-2010	HK$123,177 million	HK$209,180 million
Year ended 31-12-2011	HK$143,564 million	HK$233,700 million
Year ended 31-12-2012	HK$138,519 million	HK$243,089 million
Year ended 31-12-2013	HK$149,147 million	HK$256,234 million
6 months ended 30-06-2014	HK$ 77,398 million	HK$204,485 million

Hutchison Whampoa Group Profit Attributable to Ordinary Shareholders:-

HK$13,722 million (Year ended 31-12-2009)

HK$20,005 million (Year ended 31-12-2010)

HK$55,824 million (Year ended 31-12-2011)

HK$25,897 million (Year ended 31-12-2012)

HK$31,112 million (Year ended 31-12-2013)

HK$28,443 million (6 months ended 30-06-2014)

Terms/Sales: COD or as per contracted.

Terms/Buying: Various terms.

GOVERNMENT CONTRACTS AWARDED SINCE 1990:

Date	GN No.	Particulars	Amount
Park’N Shop — A division of A. S. Watson Group (HK) Ltd.
28-03-2002	GN1976	Supply of supermarket gift coupons	HK$2,087,800 F.I.S./Hong Kong with ±30% variation (not exceeding HK$2,714,140)
25-04-2003	GN2877	Supply of supermarket gift coupons	HK$2,847,000 F.I.S./Hong Kong
27-02-2004	GN1438	Supply of supermarket gift coupons	HK$1,279,800 F.I.S./Hong Kong
25-02-2005	GN924	Supply of supermarket gift coupons	HK$6,446,400 F.I.S./Hong Kong
31-03-2006	GN2210	Supply of supermarket gift coupons	HK$2,275,200 F.I.S./Hong Kong
31-07-2009	GN4838	Supply of supermarket gift coupons	HK$1,681,200 F.I.S./Hong Kong
A. S. Watson Group (HK) Ltd.
27-08-2004	GN5673	Provision of automatic vending machines for soft drinks at venues of the Leisure and Cultural Services Department [01-09-2004 to 31-08-2007]	HK$8,262,330
31-12-2009	GN8248	Provision of coin-operated automatic vending machines for soft drinks at Food and Environmental Hygiene Department venues	A goss monthly sales of 50% payable to the Government
29-07-2011	GN5032	Supply of bottled drinking water	HK$30,270,800 F.I.S./Hong Kong

FINANCIAL INFORMATION

Authorised Share Capital: US$50,000.00 (Divided into 50,000 shares of US$1.00 each)

Issued & Paid Up Capital: US$1.00

Profit & Loss: Operation is profitable.

Condition: Business is active and good.

Facilities: Making very active use of general banking facilities.

Payment: Reliable.

Commercial Morality: Good.

Bankers:-

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

Standing: Sound.

GENERAL

A. S. Watson Group (HK) Ltd. [ASWGHK] was incorporated in 1996 as a wholly-owned subsidiary of A. S. Watson & Co. Ltd. [ASW].

ASWGHK was set up to take over part of the business of A S Watson due to the group’s reorganization. It is now responsible for the retailing; supermarket operating; water, beverage, fruit juice and frozen products manufacturing and distributing; while A S Watson has become as a ‘holiday company’.

ASWGHK has had a subsidiary company known as A. S. Watson (Trading) Macao Commercial Offshore Ltd. [A. S. Watson (Trading) Macao] which is a Macau-based firm. A. S. Watson (Trading) Macao is also known as A. S. Watson (Comercio) Comercial Offshore de Macau in Portuguese. Incorporated in August 2003, A. S. Watson (Trading) Macao is a wholly‑owned subsidiary of A. S. Waton (BVI) Ltd., a BVI-registered firm, which is in turn a subsidiary of ASW. A. S. Watson (Trading) Macao is located at Avenida Comercial de Macau, nos 251A-301, Edif. AIA Tower, Edificio AIA Tower, 17o andar, sala 1701, Macau.

After the restructure of the A S Watson Group, ASWGHK has the following divisions in operations in Hong Kong:-

· A.S. Watson Asia;

· A.S. Watson Beverages;

· A.S. Watson Industries;

· Big Deal;

· Citrus Growers International;

· Fortress;

· Fountain Food;

· Great;

· Hong Kong Water Bottling;

· Park’N Shop;

· Priday Enterprises;

· Watson’s;

· Watson’s The Chemist;

· Watson’s Water;

· Watson’s Wine Cellar; &

· Watsons Wine Wholesale.

ASWGHK and its divisions are all bearing the same Business Registration No. 19881299.

ASW is one of the best known trading companies in Asia. It began as a small dispensary in Guangzhou, China, in 1828. Operation started in Hong Kong in 1841, and became one of the first companies in the world to produce carbonated soft drinks. ASW in 1964 became a subsidiary of Hutchison International Ltd. The ultimate holding company of ASW is Hutchison Whampoa Ltd. [HWL], one of the largest and most profitable corporations in Hong Kong with shares quoted on local and London stock exchanges. Today, ASW controls a group of subsidiary and associated companies.

Through its retailing, manufacturing, and distribution arms, the A. S. Watson Group [ASW Group] has become significant in the Mainland China, Hong Kong, Macau, Taiwan, Singapore, Malaysia, Thailand and the Philippines.

ASW Group is a major international retail and manufacturing group headquartered in Hong Kong. ASW currently operates 14 retail brands with over 10,500 stores in 25 markets worldwide, providing high quality personal care, health and beauty products; food and fine wines; as well as consumer electronics and electrical appliances. ASW also manufactures and distributes various bottled waters and other beverages in Hong Kong and the Mainland. ASW employs over 98,000 staff and is a member of the world renowned Hong Kong-based conglomerate Hutchison Whampoa Limited, which has major interests in ports and related services, telecommunications, property and hotels, retail, and energy, infrastructure, investments and others, in 56 countries.

ASW Group has businesses in the following regions and countries apart from Hong Kong:-

Mainland China, Taiwan, Macau, Thailand, Singapore, Malaysia, Philippines, Indonesia, Korea, Netherlands, Belgium, United Kingdom, Ireland, Switzerland, Luxembourg, Poland, Hungary, Czech Republic, Germany, Latvia, Lithuania, Turkey, France, Italy, Spain, Austria, Portugal, Israel, Russia, Morocco, Romania, Slovakia, Estonia, Slovenia , Ukraine.

ASW Group’s portfolio encompasses some of Asia’s favourite brands and retail chains. These include health and beauty specialist “Watsons “Your Personal Store”.

In Europe, ASW now operates stores in 24 countries under the following brands:-

· DC (Ukraine);

· Drogas (Latvia, Lithuania);

· Kruidvat (Netherlands, Belgium);

· Rossmann (Poland, Hungary, Czech Republic, Germany);

· Savers (United Kingdom);

· Spektr (Russia);

· Superdrug (United Kingdom);

· Trekpleister (Netherlands); &

· Watsons Your Personal Store (Estonia and Slovenia).

Brands of Luxury Perfumeries & Cosmetics:

· Marionnaud (France, Italy, Germany, Spain, Austria, Switzerland, Poland, Hungary, Portugal, Israel, Morocco, Romania and Slovakia, Philippines);

· ICI PARIS XL (Netherlands, Belgium, Luxembourg); &

· The Perfume Shop (United Kingdom, Ireland).

Food Brands:

· GOURMET boutique style fine food hall (Hong Kong)

· Great Food Hall (Hong Kong);

· PARKnSHOP supermarket chain (Hong Kong, Macau, Mainland China); &

· TASTE food galleria (Hong Kong).

Electronics:-

Fortress (Hong Kong, Macau)

Fine Wine:-

· Badaracco wine wholesale (Switzerland);

· Watson's Wine Cellar and Wholesale (Hong Kong, Mainland China).

Airport Retail:-

Nuance-Watson airport duty free shops (Hong Kong, Singapore)

Manufacturing:-

· Cool (Hong Kong, Mainland China);

· Crystal Spring teas (Hong Kong, Mainland China)

· Mr. Juicy (Hong Kong, Mainland China);

· Shanghai Sparkling (Mainland China);

· Sunkist (Hong Kong, Mainland China);

· V-Pro (Hong Kong);

· Watson’s cordials and mixers (Hong Kong, Mainland China);

· Watson’s Sarsae carbonated soft drinks

· (Hong Kong, Mainland China);

· Watsons Iso-Tone (Hong Kong); &

· Watsons Water (Hong Kong, Mainland China, Taiwan, Macau, Singapore, Malaysia, Philippines, Netherlands, Belgium).

ASW International Buying Division centralises and harmonises the buying practices of the Group’s global retail operations. Categories of products sourced through International Buying include Branded Goods, Own Label, General Merchandise, Food and Electrical. It currently work with more than 5,000 suppliers, providing 180,000 individual SKUs to its consumers.

For the year ended 31st December, 2013, the sales of ASW Group (including associates and jointly controlled entities) amounted to HK$149,147 million, grew by 7.7% as compared with HK$138,519 million in FY 2012.

For the 6 months ended 30th June, 2014, the sales of the ASW Group amounted to HK$77,398 million, grew by 8.6% as compared with HK$ 71,258 million in the same period of previous year.

The ultimate holding company, HWL, is a Hong Kong-based conglomerate with its origins dating back to the 1800s. In terms of market capitalisation, HWL is one of the largest companies in Hong Kong.

HWL is a leading international corporation committed to innovation and technology with businesses spanning the globe. Its diverse array of holdings range from some of the world’s biggest port operators and retailers to property development and infrastructure to the most technologically‑advanced and marketing-savvy telecommunications operators. With operations in 54 countries and over 250,000 employees worldwide, HWL has five core businesses — Ports and Related Services; Property and Hotels; Retail; Energy and infrastructure, Finance and Investments, and Others; and Telecommunications.

For the year ended 31st December, 2013, the revenues of the Hutchison Whampoa Group (excluding associates and jointly controlled entities) amounted to HK$256,234 million, grew by 5.4% as compared with HK$243,089 million in FY 2012; profit attributable to shareholders was HK$31,112 million, increased by 20.1% as compared with HK$25,897 million in FY 2012.

On the whole, in view of the background and parentage of ASWGHK, consider it good for normal business engagements.

REMARKS

Brief introduction to the principal director:-

Mr. LAI Kai Ming, Dominic, aged 60, is the Managing Director of the ASW Group. He has been an Executive Director of HWL since 2000. Mr. Lai is also the Deputy Chairman of Hutchison Harbour Ring and a Director of Hutchison Telecommunications Australia. He has over 25 years of management experience in different industries. He holds a Bachelor of Science (Hons) degree and a Master’s degree in Business Administration.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.10
UK Pound	1	Rs.99.05
Euro	1	Rs.79.03

INFORMATION DETAILS

Analysis Done by :	KAR

Report Prepared by :	TPT

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.