MIRA INFORM REPORT

Report No. :	334161
Report Date :	30.07.2015

IDENTIFICATION DETAILS

Name :	URC [THAILAND] CO., LTD.
Formerly Known As :	THAI PEGGY FOODS CO., LTD
Registered Office :	44, 46 Rajpattana Road, Sapansung, Bangkok 10240
Country :	Thailand
Financials (as on) :	30.09.2014
Date of Incorporation :	26.06.1989
Com. Reg. No.:	0105532057965 [Former : 5795/2532]
Legal Form :	Private Limited Company
Line of Business :	Subject is engaged in manufacturing and distributing wide range of snack foods and confectioneries
No. of Employees :	600

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, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Thailand	B1	A2

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

THAILAND - ECONOMIC OVERVIEW

With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand has historically had a strong economy due in part to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. The economy experienced slow growth and declining exports in 2014, in part due to domestic political turmoil and sluggish global demand. With full employment, Thailand attracts an estimated 4 million migrant workers from neighboring countries, and faces labor shortages. Following the May 2014 coup d’�tat, tourism decreased 6-7% but is beginning to recover. The household debt to GDP ratio is over 80%. The Thai government in 2013 implemented a nation-wide 300 baht ($10) per day minimum wage policy and deployed new tax reforms designed to lower rates on middle-income earners. The Thai baht has remained stable.

Source : CIA

Company name

URC [THAILAND] CO., LTD.

SUMMARY

BUSINESS ADDRESS : 44, 46 RAJPATTANA ROAD, SAPANSUNG,

BANGKOK 10240, THAILAND

TELEPHONE : [66] 2517-4800

FAX : [66] 2517-1616, 2517-1416

E-MAIL ADDRESS : hrd@urcthailand.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1989

REGISTRATION NO. : 0105532057965 [Former : 5795/2532]

TAX ID NO. : 3101720570

CAPITAL REGISTERED : BHT. 3,000,000,000

CAPITAL PAID-UP : BHT. 1,119,918,000

SHAREHOLDER’S PROPORTION : FOREIGN : 100%

FISCAL YEAR CLOSING DATE : SEPTEMBER 30

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. PREMCHAI NAVARASUCHITR, THAI

GENERAL MANAGER

NO. OF STAFF : 600

LINES OF BUSINESS : SNACK AND CONFECTIONERIES

MANUFACTURER, DISTRIBUTOR, EXPORTER AND

CONTRACT MANUFACTURER

CORPORATE PROFILE

OPERATING TREND : STABLE

PRESENT SITUATION : OPERATING NORMALLY

REPUTATION : GOOD WITH NORMAL BUSINESS ENGAGEMENT

MANAGEMENT STANDARD : MANAGEMENT WITH FAIR PERFORMANCE

HISTORY

The subject was established on June 26, 1989 as a private limited company under the name style “Thai Peggy Foods Co., Ltd.”, by Thai groups, to manufacture wide range of savory snack foods and confectioneries to domestic and export markets. It currently employs approximately 600 staff.

On April 2, 2004, the subject’s name was changed to URC [THAILAND] CO., LTD.

URC is a subsidiary of URC Asean Brands Company Limited, in British Virgin Island, which is a member of JG Summit Holdings, Philippines.

JG Summit Holdings is based and fully owned by Filipino entrepreneurs and is one of the Philippine’s top conglomerates, as well as diversified its wings to cover business interests in telecommunications, petrochemicals, air transport, power generation, real estate, hotels, financial services, textiles, consumer food, agro-industrial and commodity food products including supplementary businesses in insurance brokerage, electronic and printing.

The subject’s registered address was initially at 52/136-138 Ramkhamhaeng Rd., Huamark, Bangkapi, Bangkok 10240.

On November 1, 2005, subject’s registered address was relocated to 122-123 Moo 7, Rajpattana Rd., Sapansung, Bangkok 10240.

On November 14, 2010, its registered address was changed from “122-123 Moo 7” to “44, 46” Rajpattana Rd., Sapansung, Bangkok 10240, by the Sapansung District Office of Bangkok Metropolitan Administration, which actually are the same location. This is also the subject’s current operation address.

THE BOARD OF DIRECTORS

Name		Nationality	Age
Mrs. Mary Anne G. Poonsawad		Filipino	56
Mr. Cheng Chung Yuen		Chinese	81
Mr. Premchai Navarasuchitr		Thai	56
Mr. Cornelio Sipin Mapa, Jr.	[x]	Filipino	-

AUTHORIZED PERSON

The mentioned director [x] can jointly sign with one of the rest directors on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Premchai Navarasuchitr is the General Manager.

He is Thai nationality with the age of 56 years old.

Mr. Somnuk Plengsuriyakarn is the Assistant General Manager.

He is Thai nationality.

Mr. Somsak Changsong is the General Sales Manager.

He is Thai nationality.

Mrs. Mary Anne G. Poonsawad is the Finance, Purchase & Administration Manager.

She is Thai nationality with the age of 56 years old.

Mrs. Supaporn Ajjanaromvat is the Accounting Manager.

She is Thai nationality.

Ms. Sangjan Pichitwonglert is the Marketing Manager.

She is Thai nationality.

Mr. Keerati Chulplang is the Marketing Manager.

He is Thai nationality.

Mr. Surachai Kultavarakorn is the Up-Country Sales Manager.

He is Thai nationality.

Mr. Surasak Srisuntisuk is the Bangkok Sales Manager.

He is Thai nationality.

Mr. Apirat Chatupanyachotikul is the National Key Account Manager.

He is Thai nationality.

Mr. Wathawut Ueaphumirat is the Plant Manager.

He is Thai nationality.

Mr. Florencio B. Tesoro Jr. is the QA/R&D Manager.

He is Filipino nationality.

Mr. Jean Carredo is the Logistics Manager.

He is Filipino nationality.

Mr. Thiruvenkatachari Mugunthan is the Biscuit Production Manager.

He is Thai nationality.

Mr. Krirk Lakaphan is the Human Resources Manager.

He is Thai nationality.

Mr. Amphol Nilfoo is the Candy Production Manager.

He is Thai nationality.

Mr. Chalermpol Poolsuk is the Wafer/Snack Production Manager.

He is Thai nationality.

Ms. Mynalee D. Aclan is the Plant Operation Manager.

She is Filipino nationality.

BUSINESS OPERATIONS

The subject’s core business is engaged in manufacturing and distributing wide range of snack foods and confectioneries under its own brands as follows:

Product Brand

Biscuit “CREAM-O”, “JACK’N JILL”, “DEWBERRY”, “FUN-O”,

“MAGIC”, “MAGIC TWIN”

Wafer “LAUSANNE”, “TIVOLI”, “TIVOLI TWIN”

Candy “DYNAMITE”, “DYNAMITE CHEWS”, “X.O.”, “X.O.X.-CITE”

“DYNAMITE TOOB TUUB”, “LUSH”

Snack “ROLLER COASTER”, “FUN BITES”, “TOR TAO”

Chocolate “NIPS”

Marshmallow “WIGGLES”

Chewy Chocolate “CHOOEY CHOCO”

The subject also provides manufacturing service wide range of products under customer’s brands.

TRADEMARKS

“Jack’n Jill”, “Cream O”, “Fun-O”

PURCHASE

Most of raw materials are purchased from local suppliers, and the rest is imported from Singapore, Philippines, Republic of China, Malaysia, Japan, India and Germany.

MAJOR SUPPLIERS

Mitr Phol Sugar Corp. Ltd. : Thailand

Food Ingredients Specialties [Thailand] Co., Ltd. : Thailand

Print Master Co., Ltd. : Thailand

EXPORT

30% of its products is exported to Japan, Pakistan, Malaysia, Indonesia, Korea, Laos, Bangladesh, Ghana, India, Mauritius, Myanmar, Nepal, Maldives, Cambodia, Australia, Tahiti, Bahrain, Nigeria, Ivory Coast, Togo, Hong Kong, South Africa, Vietnam and Taiwan.

SALES [LOCAL]

70% of its products is sold locally by wholesale to dealers, as well as by retail through retails store, such as Tesco Lotus, Big C Supermarket, Tops Supermarket, Makro, Foodland Supermarket, 7-Eleven and other convenience stores nationwide.

PARENT COMPANY

URC Asean Brands Company Limited

Address : British Virgin Island

LITIGATION

Bankruptcy and Receivership

There are no litigation on bankruptcy and receivership cases filed against the subject found at Legal Execution Department for the past five years.

Others

There are no legal suits filed against the subject according to the past two years.

SUBSIDIARY AND AFFILIATED COMPANY

The subject is not found to have any subsidiary or affiliated company here in Thailand.

CREDIT

Sales are by cash or on the credit term of 30 days.

Local bills are paid by cash or on the credits term of 30-60 days.

Imports are by L/C at sight or T/T.

Exports are against T/T.

BANKING

Siam Commercial Bank Public Co., Ltd.

[Head Office : 9 Ratchadapisek Rd., Ladyao, Jatujak, Bangkok 10900]

Bangkok Bank Public Co., Ltd.

[Head Office : 333 Silom Rd., Silom, Bangrak, Bangkok 10500]

Kasikornbank Public Co., Ltd.

EMPLOYMENT

The subject employs approximately 600 office staff and factory workers.

LOCATION DETAILS

The premise is rented for administrative office at the heading address. Premise is located in commercial/residential area.

Factory is located at 1/123 Moo 2, Samutsakorn Industrial Estate, Thonburi-Pakthor Rd., T. Thasai, A. Muang, Samutsakorn 74000.

Branches/Warehouses:

- 1/123 Moo 2, Thonburi-Pakthor Road, T. Thasai, A. Muang, Samutsakorn 74000.

- 65 Moo 2, T. Thasai, A. Muang, Samutsakorn 74000.

- 39/74 Moo 2, T. Bangkrachao, A. Muang, Samutsakorn 74000.

- 1/39 Moo 2, T. Thasai, A. Muang, Samutsakorn 74000.

- 1/37 Moo 2, T. Thasai, A. Muang, Samutsakorn 74000.

- 1/46 Moo 2, T. Thasai, A. Muang, Samutsakorn 74000.

- 39/87 Moo 2, T. Bangkrachao, A. Muang, Samutsakorn 74000.

.

COMMENT

Today’s fiercely-fought market, only the best and the fittest survives, the subject is one of the leading manufacturers and distributors of snack and confectionery food products in the Kingdom. The subject is enjoying good rapport and response from the local and international markets with its diversified food products. The company belongs to the world-renowned conglomerate URC Group based in the Philippines, brings about many hands-on experience in the snack food business and with technology transfers from the Philippines.

Its plant in Samutsakorn province is fully operated and able to cope with an increase in demand of the company’s snack and confectioneries from the markets.

FINANCIAL INFORMATION

The capital was initially registered at Bht. 1,000,000 divided into 10,000 shares of Bht. 100 each.

The capital was increased later as follows:

Bht. 8,000,000 on July 22, 1991

Bht. 20,000,000 on March 9, 1995

Bht. 3,000,000,000 on March 29, 2000

The latest registered capital was increased to Bht. 3,000,000,000 divided into 30,000,000 shares of Bht. 100 each, with the current capital paid-up at Bht. 1,119,918,000 or 200,000 shares of Bht. 100 each and 29,800,000 shares of Bht. 36.91 each.

THE SHAREHOLDERS LISTED WERE

[as at January 28, 2015] at Bht. 1,119,918,000 of capitalization.

NAME	HOLDING	%
URC Asean Brands Company Limited Nationality: British Virgin Island Address : British Virgin Island	29,999,994	100.00
Mr. James L. Go Nationality: Filipino Address : Philippines	1	-
Mrs. Anne Rachel C Wong Nationality: Singaporean Address : Bishan Street, Singapore	1	-
Mr. Patrick Ong Ng Nationality: Filipino Address : Philippines	1	-
Mr. Lance Gokongwei Nationality: Filipino Address : Philippines	1	-
Mr. John Gokongwei Jr. Nationality: Filipino Address : Philippines	1	-
Mr. Cheng Chung Yuen Nationality: Chinese Address : Kao Loon, Hong Kong	1	-

Total Shareholders : 7

Share Structure [as at January 28, 2015]

Nationality	Shareholders	No. of Share	% Shares
Thai	-	-	-
Foreign	7	30,000,000	100.00
Total	7	30,000,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mr. Chayapol Supasethanont No. 3972

BALANCE SHEET [BAHT]

The latest financial figures published as at September 30, 2014, 2013 & 2012 were:

ASSETS

Current Assets	2014	2013	2012
Cash and Cash Equivalents	165,161,785	109,258,319	90,986,401
Short-term Investment	2,099,302	2,060,861	2,019,413
Trade Accounts & Other Receivable	1,003,967,443	917,183,993	878,043,052
Inventories	447,231,888	414,719,004	438,104,821
Other Current Assets	32,994,985	33,911,639	36,129,740
Total Current Assets	1,651,455,403	1,477,133,816	1,445,283,427
Loan & Deferred Interest from Subsidiaries	23,754,931	23,547,200	25,547,200
Advance Paid to Subsidiaries	184,274,453	87,507,167	-
Investment in Subsidiaries	4,845,280	588,845,280	2,449,800
Fixed Assets	2,118,277,667	2,232,876,530	2,092,770,185
Intangible Assets	473,390	892,763	1,592,707
Other Non-current Assets	7,058,373	7,113,622	32,108,444
Total Assets	3,990,139,497	4,417,916,378	3,599,751,763

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2014	2013	2012
Short-term Loan from Financial Institute	600,800,000	1,192,800,000	593,800,000
Trade Accounts & Other Payable	925,232,508	921,900,669	809,952,992
Accrued Income Tax	20,701,889	15,334,703	34,286,406
Other Current Liabilities	12,429,816	11,877,693	18,271,004
Total Current Liabilities	1,559,164,213	2,141,913,065	1,456,310,402
Reserve for Long-term Employee Benefits	51,268,722	45,377,185	40,462,267
Other Non-current Liabilities	288,554	-	-
Total Liabilities	1,610,721,489	2,187,290,250	1,496,772,669
Shareholders' Equity
Share capital : Baht 100 par value Authorized & issued share capital 30,000,000 shares	3,000,000,000	3,000,000,000	3,000,000,000
Capital Paid	1,119,918,000	1,119,918,000	1,119,918,000
Unappropriated [Deficit]	1,259,500,008	1,110,708,128	983,061,094
Total Shareholders' Equity	2,379,418,008	2,230,626,128	2,102,979,094
Total Liabilities & Shareholders' Equity	3,990,139,497	4,417,916,378	3,599,751,763

PROFIT & LOSS ACCOUNT

Revenue	2014	2013	2012
Sales	5,582,118,534	5,035,952,849	5,156,740,934
Other Income	42,255,017	33,267,576	31,498,596
Total Revenues	5,624,373,551	5,069,220,425	5,188,239,530
Expenses
Cost of Goods Sold	4,308,761,702	3,781,070,988	3,823,900,158
Selling Expenses	1,007,455,391	1,006,695,344	985,178,358
Administrative Expenses	87,883,351	89,190,247	94,990,374
Loss on Diminution of Assets [reversal]	[1,556,316]	[1,556,316]	5,567,899
Total Expenses	5,402,544,128	4,875,400,263	4,909,636,789
Profit before Financial Expenses & Income Tax	221,829,423	193,820,162	278,602,741
Financial Expenses	[35,054,271]	[27,327,567]	[17,765,204]
Profit before Income Tax	186,775,152	166,492,595	260,837,537
Income Tax	[37,983,272]	[38,845,561]	[90,366,913]
Net Profit / [Loss]	148,791,880	127,647,034	170,470,624

FINANCIAL ANALYSIS

ITEM	UNIT	2014	2013	2012
LIQUIDITY RATIO
CURRENT RATIO	TIMES	1.06	0.69	0.99
QUICK RATIO	TIMES	0.75	0.48	0.67
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	2.64	2.26	2.46
TOTAL ASSETS TURNOVER	TIMES	1.40	1.14	1.43
INVENTORY CONVERSION PERIOD	DAYS	37.89	40.03	41.82
INVENTORY TURNOVER	TIMES	9.63	9.12	8.73
RECEIVABLES CONVERSION PERIOD	DAYS	65.65	66.48	62.15
RECEIVABLES TURNOVER	TIMES	5.56	5.49	5.87
PAYABLES CONVERSION PERIOD	DAYS	78.38	88.99	77.31
CASH CONVERSION CYCLE	DAYS	25.15	17.52	26.66
PROFITABILITY RATIO
COST OF GOODS SOLD	%	77.19	75.08	74.15
SELLING & ADMINISTRATION	%	19.62	21.76	20.95
INTEREST	%	0.63	0.54	0.34
GROSS PROFIT MARGIN	%	23.57	25.58	26.46
NET PROFIT MARGIN BEFORE EX. ITEM	%	3.97	3.85	5.40
NET PROFIT MARGIN	%	2.67	2.53	3.31
RETURN ON EQUITY	%	6.25	5.72	8.11
RETURN ON ASSET	%	3.73	2.89	4.74
EARNING PER SHARE	BAHT	13.29	11.40	15.22
LEVERAGE RATIO
DEBT RATIO	TIMES	0.40	0.50	0.42
DEBT TO EQUITY RATIO	TIMES	0.68	0.98	0.71
TIME INTEREST EARNED	TIMES	6.33	7.09	15.68
ANNUAL GROWTH
SALES GROWTH	%	10.85	(2.34)
OPERATING PROFIT	%	14.45	(30.43)
NET PROFIT	%	16.57	(25.12)
FIXED ASSETS	%	(5.13)	6.69
TOTAL ASSETS	%	(9.68)	22.73

ANNUAL GROWTH : SATISFACTORY

An annual sales growth is 10.85%. Turnover has increased from THB 5,035,952,849.00 in 2013 to THB 5,582,118,534.00 in 2014. While net profit has increased from THB 127,647,034.00 in 2013 to THB 148,791,880.00 in 2014. And total assets has decreased from THB 4,417,916,378.00 in 2013 to THB 3,990,139,497.00 in 2014.

PROFITABILITY : ACCEPTABLE

PROFITABILITY RATIO

Gross Profit Margin	23.57	Deteriorated	Industrial Average	61.69
Net Profit Margin	2.67	Acceptable	Industrial Average	3.66
Return on Assets	3.73	Acceptable	Industrial Average	5.57
Return on Equity	6.25	Acceptable	Industrial Average	11.16

Gross Profit Margin used to assess a firm's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold. Gross profit margin serves as the source for paying additional expenses and future savings. The company's figure is 23.57%. When compared with the industry average, the ratio of the company was lower. This indicated that company may have problems with control over its costs.

Net Profit Margin is the indicator of the company's efficiency in that net profit takes into consideration all expenses of the company. A low profit margin indicates a low margin of safety, higher risk that a decline in sales will erase profits and result in a net loss. The company's figure is 2.67%. When compared with the industry average, the ratio of the company was lower.

Return on Assets measures how efficiently profits are being generated from the assets employed in the business when compared with the ratios of firms in a similar business. A low ratio in comparison with industry averages indicates an inefficient use of business assets. When compared with the industry average, it was lower, the company's figure is 3.73%.

Return on Equity indicates how profitable a company is by comparing its net income to its average shareholders' equity, ROE measures how much the shareholders earned for their investment in the company. When compared with the industry average, it was lower, the company's figure is 6.25%.

Trend of the average competitors in the same industry for last 5 years

Return on Assets Downtrend

Return on Equity Downtrend

LIQUIDITY : SATISFACTORY

LIQUIDITY RATIO

Current Ratio	1.06	Satisfactory	Industrial Average	1.17
Quick Ratio	0.75
Cash Conversion Cycle	25.15

The Current Ratio is to ascertain whether a company's short-term assets are readily available to pay off its short-term liabilities. The company's figure is 1.06 times in 2014, increased from 0.69 times, then it is generally considered to have good short-term financial strength. When compared with the industry average, the ratio of the company was lower.

The Quick Ratio is a liquidity indicator that further refines the current ratio by measuring the amount of the most liquid current assets there are to cover current liabilities. The company's figure is 0.75 times in 2014, increased from 0.48 times, then the company has not enough current assets that presumably can be quickly converted to cash for pay financial obligations.

The Cash Conversion Cycle measures the number of days a company's cash is tied up in the production and sales process of its operations and the benefit from payment terms from its creditors. It meant the company could survive when no cash inflow was received from sale for 26 days.

Trend of the average competitors in the same industry for last 5 years

Current Ratio Downtrend

LEVERAGE : EXCELLENT

LEVERAGE RATIO

Debt Ratio	0.40	Impressive	Industrial Average	0.49
Debt to Equity Ratio	0.68	Impressive	Industrial Average	0.95
Times Interest Earned	6.33	Impressive	Industrial Average	-

Debt to Equity Ratio a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. A lower the percentage means that the company is using less leverage and has a stronger equity position.

Times Interest Earned measuring a company's ability to meet its debt obligations. Ratio is 6.33 higher than 1, so the company can pay interest expenses on outstanding debt.

Debt Ratio shows the proportion of a company's assets which are financed through debt. The company's figure is 0.4 less than 0.5, most of the company's assets are financed through equity.

Trend of the average competitors in the same industry for last 5 years

Debt Ratio Downtrend

Times Interest Earned Stable

ACTIVITY : IMPRESSIVE

ACTIVITY RATIO

Fixed Assets Turnover	2.64	Impressive	Industrial Average	-
Total Assets Turnover	1.40	Satisfactory	Industrial Average	1.52
Inventory Conversion Period	37.89
Inventory Turnover	9.63	Impressive	Industrial Average	9.26
Receivables Conversion Period	65.65
Receivables Turnover	5.56	Impressive	Industrial Average	3.18
Payables Conversion Period	78.38

The company's Account Receivable Ratio is calculated as 5.56 and 5.49 in 2014 and 2013 respectively. This ratio measures the efficiency of the company in managing its trade debtors to generate revenue. A lower ratio may indicate over extension and collection problems. Conversely, a higher ratio may indicate an overtly stringent policy. In this case, the company's A/R ratio in 2014 increased from 2013. This would suggest the company had good performance in the management of its debt collections.

Inventory Turnover in Days Ratio indicates the liquidity of inventory. It estimates the number of days that it will take to sell the current inventory. Inventory is particularly sensitive to change in business activities. The inventory turnover in days has decreased from 40 days at the end of 2013 to 38 days at the end of 2014. This represents a positive trend. And Inventory turnover has increased from 9.12 times in year 2013 to 9.63 times in year 2014.

The company's Total Asset Turnover is calculated as 1.4 times and 1.14 times in 2014 and 2013 respectively. This ratio is determined by dividing total assets into total sales turnover. The ratio measures the activity of the assets and the ability of the firm to generate sales through the use of the assets.

Trend of the average competitors in the same industry for last 5 years

Fixed Assets Turnover Stable

Total Assets Turnover Uptrend

Inventory Turnover Uptrend

Receivables Turnover Downtrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.89
UK Pound	1	Rs.99.71
Euro	1	Rs.70.63

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TRU

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.