MIRA INFORM REPORT

Report No. :	491607
Report Date :	17.02.2018

IDENTIFICATION DETAILS

Name :	VKG OIL JSC
Formerly Known As :	VIRU OLITOOSTUS AS
Registered Office :	Jarvekula Road 14, Kohtla-Jarve, Ida-Viru County, 3
Country :	Estonia
Financials (as on) :	31.12.2016
Date of Incorporation :	11.02.1999
Com. Reg. No.:	10528765
Legal Form :	AS (Public Limited Company by Estonian Commercial Law)
Line of Business :	Manufacture of Refined Petroleum Products
No. of Employees :	700

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

B

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Exist

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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
Estonia	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

ESTONIA - ECONOMIC OVERVIEW

Estonia, a member of the EU since 2004 and the euro zone since 2011, has a modern market-based economy and one of the higher per capita income levels in Central Europe and the Baltic region, but its economy is highly dependent on trade, leaving it vulnerable to external shocks. Estonia's successive governments have pursued a free market, pro-business economic agenda, and sound fiscal policies that have resulted in balanced budgets and the lowest debt-to-GDP ratio in the EU.

The economy benefits from strong electronics and telecommunications sectors and strong trade ties with Finland, Sweden, Germany, and Russia. After two years of robust recovery in 2011 and 2012, the Estonian economy faltered in 2013 with only 1.6% GDP growth, mainly due to a continuing recession in much of the EU. GDP growth dropped below 2% in 2015 due to lower demand in key Scandinavian and Russian export markets. Rapid increases in investment, which includes EU development funding, and the recovery of export markets contributed to an estimated 4.2% GDP growth in 2017. Inflation also rose in 2017 alongside increased global prices for food and energy, which make up a large share of Estonia’s consumption basket.

Estonia is challenged by a shortage of labor, both skilled and unskilled, although the government has amended its immigration law to allow easier hiring of highly qualified foreign workers, and wage growth that outpaces productivity gains. The government is also pursuing efforts to boost productivity growth with a focus on innovations that emphasize technology start-ups and e-commerce.

Source : CIA

Identification

Full Name

:

VKG OIL AS

Name in English

:

VKG OIL JSC

Name in national language

:

VKG OIL AS

Previous Names

:

-	VIRU OLITOOSTUS AS

Office Address

:

Jarvekula road 14, Kohtla-Jarve, Ida-Viru county, 30328, Estonia

Legal Address

:

Jarvekula road 14, Kohtla-Jarve, Ida-Viru county, 30328, Estonia

Contacts

:

-	Phone	:	(+372) 3342319
-	Fax	:	(+372) 3342717
-	E-mail	:	vkgoil@vkg.ee
-	WWW	:	www.vkg.ee

SUMMARY

Legal Form : AS (Public limited company by Estonian Commercial Law)

Incorporation : 1999

Staff : 700

Litigation events : yes Remarks on payments : yes

Sales :	90 822 339.00 EUR ( for 12 months, ended 31.12.2016 )
	106 282 898.00 EUR ( for 12 months, ended 31.12.2015 )

Incorporation

:

1999

Registration Data

Date of registration

:

11.02.1999

Registration number

:

10528765

Registr. authority

:

Registration department of the County Court (Estonia)

VAT number

:

EE100373239

Registr. authority

:

Estonian Tax and Customs Board (Estonia)

Legal Form

:

AS (Public limited company by Estonian Commercial Law)

since 11.02.1999

Share Capital

:

639 116 EUR (registered)

since n/a

Shareholders

:

-	VIRU KEEMIA GRUPP (Estonia)				100.00 %
		reg. number	:	10490531
		address	:	Jarvekula road 14, Kohtla-Jarve, Ida-Viru county, 30328, Estonia

Board / Executives

Board

Supervisory Board Chairman

:

Mr Asmann, Ahti (Estonia)

Supervisory Board Member

:

Mrs Revjako, Diana (Estonia)

Supervisory Board Member

:

Mr Sepp, Jaanis (Estonia)

Supervisory Board Member

:

Mr Viirmae, Marti (Estonia)

Supervisory Board Member

:

Mr Eldermann, Meelis (Estonia)

Executives

Board Member

:

Mr Parn, Priit (Estonia)

date of birth: 04.02.1966

Board Member

:

Mr Petrovits, Nikolai (Estonia)

date of birth: 27.02.1962 
ph.: +372 3342319

Authorised signature

:

Mr Parn, Priit

Mr Petrovits, Nikolai

Changes in Registration Data

- 22.12.2017

:

shareholders

- 01.04.2016

:

managers

- 01.10.2015

:

managers

- 02.05.2013

:

managers

- 05.02.2013

:

managers

- 01.07.2012

:

shareholders

- 20.07.2005

:

name

- 08.12.1999

:

name

Obsolete name: Viru Olitoostus AS

/Changes in Registration data are mentioned for the last 10 years./

Activities

:

-	2911	Petroleum Refining, NEC
		(2320 / NACE_1.1: Manufacture of refined petroleum products)
		(1920 / NACE_2: Manufacture of refined petroleum products)

According to company's website data: The biggest Estonian production enterprise for shale oil and oil shale chemistry. Shale oil and shale gas produced by the plant supply heat to households in Estonia and within Northern countries, fine chemical products produced from oil shale find application in perfumery and cosmetics industry, as well as in production of high-class cars. The company purchases shale from its subsidiary VKG Energia OU

Staff employed

:

700 [E]

Staff History

:

-	691
	( the data as of 31.12.2017 )
-	585
	( the data as of 31.12.2016 )
-	660
	( the data as of 31.12.2015 )
-	671
	( the data as of 31.12.2014 )

Export

- 2017

:

Russian Federation, Belarus
About 76%

- 31.12.2016

:

Fiscal period: 12 month(s), currency: EUR

67 457 259.00

- 31.12.2015

:

Fiscal period: 12 month(s), currency: EUR

1 396 586.00

Import

- 2017

:

Russian Federation, Sweden
About 5.5% Goods; Equipment

Facilities

Real estate

:

own:
-	Land, buildings, premises

Other Property

:

The company has a lot of property.

Branches

:

none

Subsidiaries and Participation

:

-	VKG Energia OU (Estonia)				share n/a
		reg. number	:	10516395
		address	:	Jarvekula str. 14, Kohtla-Jarve, Ida-Viru county, 30328, Estonia

Bankers

:

-	LUMINOR BANK (Estonia)
-	SWEDBANK (Estonia)

Clients

:

A lot of customers British Petroleum Silmet Lukoil

Suppliers

:

About 10 VKG Kaevandused OU

Other associated Companies

:

-	OU Kaldapealse (Estonia)
	reg. number	:	11242249
	Member of the Board: Mr Priit Parn
-	SALVETE OU (Estonia)
	reg. number	:	10308354
	Shareholder: Mr Priit Parn
-	Tehpack OU (Estonia)
	reg. number	:	12732197
	Shareholder: Mr Priit Parn
-	VIRU KEEMIA GRUPP AS (Estonia)
	address	:	Jarvekula road 14, Kohtla-Jarve, Ida-Viru county, 30328, Estonia
	reg. number	:	10490531
	Member of the Board: Mr Nikolai Petrovits

Companies incorporated into VIRU KEEMIA GRUPP AS: - VKG Transport AS - VKG Energia OU - Viru RMT OU - VKG Elektrivorgud OU

Litigation

:

Yes

The subject company was/is being involved as a claimant, co-claimant and defendant into several of legal proceedings in the period from 26.05.2008 up to 07.08.2017 (last court sitting). There are no bankruptcy/insolvency records listed in the subject name in the official sources.

Remarks on payment

- 15.11.2017

:

Debt collection (unconfirmed)				0.00 EUR
	payment status	:	none

/Debt's range: EUR 65 - 320/

- 18.11.2014

:

Debt collection (confirmed)				0.00 EUR
	payment status	:	complete

/Debt's range: 65 - 320 EUR/

( the data as of 18.11.2014, cancelled since 12.02.2015 )

- 18.11.2014

:

Debt collection (confirmed)				0.00 EUR
	payment status	:	complete

/Debt's range: 12 800 - 64 000 EUR/

( the data as of 18.11.2014, cancelled since 05.03.2015 )

- 18.11.2014

:

Debt collection (confirmed)				0.00 EUR
	payment status	:	complete

/Debt's range: 320 - 640 EUR/

( the data as of 18.11.2014, cancelled since 12.02.2015 )

- 31.07.2012

:

Debt collection (unconfirmed)				0.00 EUR
	payment status	:	none

/Debt's range: EUR 30 - 65/

Debts to Estonian government: By the Tax Authorities there are no tax debts registered on the subject. IGK databases: No current records are reported on the company required.

Business mortgages

- 13.12.2013

:

Commercial pledge				20 000 000 EUR
	pledgee	:	AS SEB Pank (Estonia)

- 09.03.2011

:

Commercial pledge				3 000 000 EUR
	pledgee	:	AS SEB Pank (Estonia)

- 22.07.2010

:

Commercial pledge				219 500 000 EEK
	pledgee	:	AS SEB Pank (Estonia)

- 09.04.2003

:

Commercial pledge				55 500 000 EEK
	pledgee	:	Eesti Uhispank As (Estonia)

Financial Elements

Period, months	12	12	12
Ended	31.12.2016	31.12.2015	31.12.2014
Currency	EUR	EUR	EUR
===== BALANCE SHEET ====================
--- A S S E T S --------------------
NON-CURRENT ASSETS
- Intangible assets	4 583 491.00	3 227 780.00	4 406 044.00
- Fixed assets	204 183 158.00	185 283 666.00	147 822 652.00
- Investments in tangible assets
- Financial assets	79 193 093.00	75 201 882.00	41 493 444.00
- Other non-current assets
Non-current assets total	287 959 742.00	263 713 328.00	193 722 140.00
CURRENT ASSETS
- Stock	12 554 540.00	4 171 980.00	8 848 273.00
- Debtors	10 539 089.00	11 616 498.00	19 327 227.00
- Other receivables
- Short-term financial investments
- Cash	10 973 543.00	3 129 135.00	4 270 319.00
- Other current assets
Current assets total	34 067 172.00	18 917 613.00	32 445 819.00
Assets total	322 026 914.00	282 630 941.00	226 167 959.00
--- EQUITY AND LIABILITIES ---------
CAPITAL AND RESERVES
- Share capital	639 116.00	639 116.00	639 116.00
- Additional capital
- Other capital	76 694.00	76 694.00	76 694.00
- Reserve capital	37 876 994.00	18 421 846.00	6 614 611.00
- Retained earnings (Non-covered loss)	120 703 660.00	131 357 298.00	175 444 283.00
Capital and reserves total	159 296 464.00	150 494 954.00	182 774 704.00
Provisions	158 748.00	158 489.00	176 290.00
LONG-TERM LIABILITIES
- Loans and credits	130 810 208.00	98 334 816.00	10 123 791.00
- long-term amounts owed to banks
- Other long-term liabilities		17 292.00	66 926.00
Long-term liabilities total	130 810 208.00	98 352 108.00	10 190 717.00
SHORT-TERM LIABILITIES
- Loans and credits	18 136 407.00	21 084 611.00	11 405.00
- short-term amounts owed to banks
- Creditors	12 433 844.00	12 491 145.00	31 863 090.00
- trade debts	8 343 575.00	8 424 155.00	27 409 928.00
- accrued payroll	1 006 952.00	973 962.00	2 473 480.00
- tax liabilities	2 947 356.00	2 618 415.00	1 471 297.00
- other creditors	1 196 395.00	53 730.00	1 154 023.00
- advances received	130 809.00	470 517.00	506 115.00
- Dividends in arrears
- Accrued income, deferred charges
- Other short-term liabilities
Short-term liabilities total	31 761 494.00	33 625 390.00	33 026 248.00
Liabilities total	162 571 702.00	131 977 498.00	43 216 965.00
Equity and liabilities total	322 026 914.00	282 630 941.00	226 167 959.00
===== PROFIT AND LOSS ACCOUNT ==========
ORDINARY ACTIVITY INCOME AND CHARGES
Net sales	90 822 339.00	106 282 898.00	146 394 964.00
Cost of goods sold	97 149 704.00	162 537 060.00	155 123 764.00
Gross profit
Distribution costs	5 128 382.00	4 922 891.00	4 736 670.00
Administrative and management costs	3 616 165.00	3 911 873.00	4 219 660.00
Profit on sales
OPERATING INCOME AND CHARGES
Interest receivable
Interest payable
Income from participating interests
Other operating income	3 616 648.00	4 525 073.00	4 397 389.00
Other operating charges	287 704.00	28 726.00	1 178 678.00
Operating profit
INVESTMENT INCOME AND CHARGES
Investment income less charges	-2 379 806.00	3 463 189.00	405 758.00
Profit before taxation	-14 122 774.00	-57 129 390.00	-14 060 661.00
Income-tax and other similar payments
Profit (loss) from ordinary activity
Extraordinary income less charges
Net profit	-14 122 774.00	-57 129 390.00	-14 060 661.00
- - - - - - - KEY RATIOS - - - - - - -
Return on sales, %	-15.55	-53.75	-9.60
Profit before taxation / Net sales
Operating margin of profit, %
Operating profit / Net sales
Return on investment, %	-8.87	-37.96	-7.69
Profit before taxation / Equity
Current assets turnover	2.67	5.62	4.51
Net sales / Current assets
Working capital	2 305 678.00	-14 707 777.00	-580 429.00
Current assets - Short-term liabilities
Leverage	0.49	0.53	0.81
Equity / Total assets
Current ratio	1.07	0.56	0.98
Current assets / Short-term liabilities
Quick ratio	0.68	0.44	0.71
(Current assets - Stock) / Short-term liabilities
Debt-to-equity ratio	1.02	0.88	0.24
Total liabilities / Equity
Debtor days	42.35	39.89	48.19
Debtors / Net sales *365
Creditor days	31.35	18.92	64.49
Trade debts / Cost of goods sold *365

Taxes paid: In Q4 2017, the company paid: 1 924 500.52 EUR as state taxes 1 341 188.06 EUR as payroll taxes

Publications

- 0001

:

Subject

:

About

VKG Oil AS is the leading Estonian enterprise in the production of shale oil and oil shale chemicals. Shale oil and shale gas produced by the plant supply heat to households in Estonia and within the Nordic countries. Due to its useful properties, shale oil produced by VKG is in high demand from ships that navigate the severe conditions of the Arctic and Atlantic Oceans. Fine chemical products generated from oil shale are used in the perfumery and cosmetics industries, as well as in the production of high-class cars. The enterprise produces 451,300 tons of shale oil per year, with over 23.48 million tons of the so-called brown gold being processed. In 2009, VKG Oil AS won the title of Best Estonian Enterprise. In December 2009, a new plant, Petroter, came into use. In August 2014, the Petroter II plant was launched successfully at VKG and the Petroter III wa slaunched in autumn 2015. At present, VKG Oil AS employs 690 people.

FINAL COMMENTS

We contacted Mr Nikolai Petrovits, Member of the Board, by the ph.number +372 3342319 and he provided us with the general information about the company.

APPENDIX A

Financial Statements

Period, months	12	12	12
Ended	31.12.2016	31.12.2015	31.12.2014
Currency	EUR	EUR	EUR
BALANCE SHEET
A S S E T S
CURRENT ASSETS
1. CASH IN BANK AND IN HAND	10 973 543.00	3 129 135.00	4 270 319.00
2. SHORT-TERM FINANCIAL INVESTMENTS
3. RECEIVABLES AND PREPAYMENTS
3.1 Customer receivables	10 444 933.00	11 559 686.00	19 294 981.00
3.2. Prepaid and deferred taxes
3.3. Other short-term receivables	94 156.00	56 812.00	32 246.00
3.4. Prepaid services
3. RECEIVABLES AND PREPAYMENTS TOTAL	10 539 089.00	11 616 498.00	19 327 227.00
4. INVENTORIES
4.1 Raw materials	5 602 377.00	1 641 817.00	4 763 275.00
4.2 Work in progress	840 486.00	779 409.00	900 091.00
4.3 Finished goods	6 024 445.00	1 656 701.00	3 109 003.00
4.4 Goods for resale	10 311.00	11 304.00	18 204.00
4.5 Prepayments for inventories	76 921.00	82 749.00	57 700.00
4. INVENTORIES TOTAL	12 554 540.00	4 171 980.00	8 848 273.00
5. BIOLOGICAL ASSETS
6. NON-CURRENT ASSETS HELD FOR SALE
TOTAL CURRENT ASSETS	34 067 172.00	18 917 613.00	32 445 819.00
NON-CURRENT ASSETS
7. LONG-TERM FINANCIAL INVESTMENTS
7.1 Shares in subsidiary companies	79 193 093.00	75 201 882.00	41 493 444.00
7.2 Shares in associates
7.3 Other shares and securities
7.4 Long-term accounts receivable
7. LONG-TERM FINANCIAL INVESTMENTS TOTAL	79 193 093.00	75 201 882.00	41 493 444.00
8. INVESTMENT PROPERTIES
9. TANGIBLE ASSETS
9.1. Land	469 688.00	469 688.00	469 688.00
9.2. Buildings	106 799 491.00	88 154 595.00	75 998 347.00
9.3. Machinery and equipment	94 331 831.00	81 553 916.00	130 341 282.00
9.4. Other tangible assets	1 167 223.00	1 170 040.00	1 156 528.00
9.5. Construction-in-progress and prepayments for	2 463 126.00	14 928 191.00	1 710 994.00
tangible assets
9.6. Accumulated depreciation (-)	1 048 201.00	992 764.00	61 854 187.00
9. TANGIBLE ASSETS TOTAL	204 183 158.00	185 283 666.00	147 822 652.00
10. BIOLOGICAL ASSETS
11. INTANGIBLE ASSETS
11.1. Goodwill	235 258.00	3 227 780.00	65 888.00
11.2. Development costs
11.3. Other intangible assets	4 348 233.00	3 170 569.00	4 340 156.00
11.4. Prepayments for intangible assets
11. INTANGIBLE ASSETS TOTAL	4 583 491.00	3 227 780.00	4 406 044.00
NON-CURRENT ASSETS TOTAL	287 959 742.00	263 713 328.00	193 722 140.00
TOTAL ASSETS	322 026 914.00	282 630 941.00	226 167 959.00
SHORT-TERM LIABILITIES
12. LOAN LIABILITIES
12.1. Short-term loans and notes
12.2. Current portion of long-term debt
12.3. Convertible debts	136 407.00	127 469.00	11 405.00
12. LOAN LIABILITIES TOTAL	18 136 407.00	21 084 611.00	11 405.00
13. DEBTS AND PAYABLES
13.1. Supplier payables	8 343 575.00	8 424 155.00	27 409 928.00
13.2. Employee-related liabilities	1 006 952.00	973 962.00	2 473 480.00
13.3. Taxes payable	2 947 356.00	2 618 415.00	1 471 297.00
13.4. Other debts	5 152.00	4 096.00	2 270.00
13.5. Prepayments received	130 809.00	470 517.00	506 115.00
13. DEBTS AND PAYABLES TOTAL	12 433 844.00	12 491 145.00	31 863 090.00
14. SHORT-TERM PROVISIONS	155 034.00	158 489.00	176 290.00
15. TARGETED FINANCING	1 191 243.00	49 634.00	1 151 753.00
SHORT-TERM LIABILITIES TOTAL	31 916 528.00	33 783 879.00	33 202 538.00
LONG-TERM LIABILITIES
16. LONG-TERM LOAN LIABILITIES
16.1. Loans, notes and financial lease payables	130 810 208.00	98 334 816.00	10 123 791.00
16.2. Covertible debts
16. LONG-TERM LOAN LIABILITIES TOTAL	130 810 208.00	98 334 816.00	10 123 791.00
17. OTHER LONG-TERM DEBTS
18. LONG-TERM PROVISIONS	3 714.00
19. TARGETED FINANCING		17 292.00	66 926.00
LONG-TERM LIABILITIES TOTAL	130 813 922.00	98 352 108.00	10 190 717.00
LIABILITIES TOTAL	162 730 450.00	132 135 987.00	43 393 255.00
20. SHARE CAPITAL	639 116.00	639 116.00	639 116.00
20.a. OTHER CAPITAL
21. UNREGISTERED SHARE CAPITAL
22. SHARE PREMIUM	76 694.00	76 694.00	76 694.00
23. LESS TREASURY SHARES
24. Statutory legal reserve	37 876 994.00	18 421 846.00	6 614 611.00
25. Other reserves
26. RETAINED EARNINGS	134 826 434.00	188 486 688.00	189 504 944.00
27. NET PROFIT/ LOSS FOR FINANCIAL YEAR	-14 122 774.00	-57 129 390.00	-14 060 661.00
EQUITY TOTAL	159 296 464.00	150 494 954.00	182 774 704.00
EQUITY AND LIABILITIES TOTAL	322 026 914.00	282 630 941.00	226 167 959.00
INCOME STATEMENT format 1 or 2
1. NET SALES format 1
2. Other income
3. Change in inventories of agricultural goods
4. Profit (loss) on biological inventories
5. Changes in inventories of finished goods and work in
progress
6. Work performed by the undertaking for its own purpose
and capital
7. Goods, raw materials and services
8. Other operating expenses
9. STAFF COSTS
9.a. Wages and salaries
9.b. Social security costs
9.c. Pension expenses
9.d. Other employee expenses
9. STAFF COSTS TOTAL
10. Depreciation and impairment of fixed assets
11. Other expenses
1. NET SALES format 2	90 822 339.00	106 282 898.00	146 394 964.00
2. Change in inventories of agricultural goods
3. Profit (loss) on biological inventories
4. Cost of sales	97 149 704.00	162 537 060.00	155 123 764.00
GROSS PROFIT (LOSS)	-6 327 365.00	-56 254 162.00	-8 728 800.00
5. Marketing expenses	5 128 382.00	4 922 891.00	4 736 670.00
6. Administration and general expenses	3 616 165.00	3 911 873.00	4 219 660.00
7. Other income	3 616 648.00	4 525 073.00	4 397 389.00
8. Other expenses	287 704.00	28 726.00	1 178 678.00
OPERATING PROFIT (LOSS)	-11 742 968.00	-60 592 579.00	-14 466 419.00
12. FINANCIAL INCOME AND EXPENSES
12.a. Financial income and expenses from shares in subsidiaries
12.b. Financial income and expenses from shares in associates	3 991 211.00	5 023 593.00
12.c. Financial income and expenses from long-term
financial investments
12.d. Interest expense	6 350 061.00	1 387 287.00	34 975.00
12.e. Profit (loss) on converting of foreign currencies
12.f. Other financial income and expenses	-20 956.00	-173 117.00	440 733.00
12. TOTAL FINANCIAL INCOME AND EXPENSES	-2 379 806.00	3 463 189.00	405 758.00
PROFIT(LOSS) ON ORDINARY ACTIVITIES	-14 122 774.00	-57 129 390.00	-14 060 661.00
13. Income tax expense
NET PROFIT (LOSS) FOR FINANCIAL YEAR	-14 122 774.00	-57 129 390.00	-14 060 661.00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.90
UK Pound	1	INR 90.31
Euro	1	INR 80.17
EEK [EUR]	1	INR 3.81

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	NIY
Report Prepared by :	TPT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.