MIRA INFORM REPORT

Report No. :	495407
Report Date :	07.03.2018

IDENTIFICATION DETAILS

Name :	HAFELE (THAILAND) LIMITED
Registered Office :	57 SOI Sukhumvit 64, Sukhumvit Road, Bangchak, Phrakanong, Bangkok 10260
Country :	Thailand
Financials (as on) :	31.12.2016
Date of Incorporation :	04.07.1994
Com. Reg. No.:	0105537076950 [Former: 1737/2537]
Legal Form :	Private Limited Company
Line of Business :	The subject’s activities are importer, distributor and re-exporter of furniture fittings, architectural hardware and related products
No. of Employees :	320

RATING & COMMENTS

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

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Maximum Credit Limit :	US$ 20,000,000
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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
Thailand	A2	A2

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

THAILAND - ECONOMIC OVERVIEW

With a relatively well-developed infrastructure, a free-enterprise economy, and generally pro-investment policies, Thailand is highly dependent on international trade, with exports accounting for about two-thirds of GDP. Thailand’s exports include electronics, agricultural commodities, automobiles and parts, and processed foods. The industry and service sectors produce about 90% of GDP. The agricultural sector, comprised mostly of small-scale farms, contributes only 10% of GDP but employs about one-third of the labor force. Thailand has attracted an estimated 3.0-4.5 million migrant workers, mostly from neighboring countries.

Over the last few decades, Thailand has reduced poverty substantially. In 2013, the Thai Government implemented a nationwide 300 baht (roughly $10) per day minimum wage policy and deployed new tax reforms designed to lower rates on middle-income earners.

Thailand’s economy is recovering from slow growth during the years since the 2014 coup. Thailand’s economic fundamentals are sound, with low inflation, low unemployment, and reasonable public and external debt levels. Tourism and government spending - mostly on infrastructure and short-term stimulus measures – have helped to boost the economy, and The Bank of Thailand has been supportive, with several interest rate reductions.

Over the longer-term, household debt levels, political uncertainty, and an aging population pose risks to growth.

Source : CIA

Company Name

HAFELE (THAILAND) LIMITED

SUMMARY

BUSINESS ADDRESS : 57 SOI SUKHUMVIT 64, SUKHUMVIT ROAD, BANGCHAK,

PHRAKANONG, BANGKOK 10260, THAILAND

TELEPHONE : [66] 2741-7171, 2741-4851-5, 2728-7103-4

FAX : [66] 2741-7272

E-MAIL ADDRESS : info@hafele.co.th

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1994

REGISTRATION NO. : 0105537076950 [Former: 1737/2537]

TAX ID NO. : 3011440865

CAPITAL REGISTERED : BHT. 200,000,000

CAPITAL PAID-UP : BHT. 200,000,000

SHAREHOLDER’S PROPORTION : GERMAN : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. VOLKER RUPERT HELLSTERN, GERMAN

MANAGING DIRECTOR

NO. OF STAFF : 320

LINES OF BUSINESS : FURNITURE FITTING AND EQUIPMENTS

IMPORTER, DISTRIBUTOR AND RE-EXPORTER

CORPORATE PROFILE

OPERATING TREND : STABLE

PRESENT SITUATION : OPERATING NORMALLY

REPUTATION : GOOD WITH NORMAL BUSINESS ENGAGEMENT

MANAGEMENT STANDARD : MANAGEMENT WITH GOOD PERFORMANCE

HISTORY

The subject was established on July 4, 1994 as a private limited company under the registered name HAFELE (THAILAND) LIMITED. It was initially a joint venture between Sahamit Holding Co., Ltd., Thailand and Hafele Holding GmbH, Germany, one of the biggest manufacturers and wholesalers of furniture fittings and architectural hardware in world market.

In 1998, the subject’s 100% shares were held by Hafele Holding GmbH, Germany.

The subject is the market leader in Thailand for supplying all kinds of products in the furniture industry and architectural demand for high-end consumers. It currently employs approximately 320 staff.

It also achieved the quality standard ISO 9001 : 2008 certification.

The subject’s registered address was initially at 460 Soi Chokchaijongjumroen, Rama 3 Rd., Bangpongpang, Yannawa, Bangkok 10120.

On September 21, 2001, the subject’s registered address was relocated to 57 Soi Sukhumvit 64, Sukhumvit Rd., Bangchak, Phrakanong, Bangkok 10260, and this is the subject’s current operation address.

THE BOARD OF DIRECTORS

Name	Nationality	Age
Mr. Ulrich Hafele	German	51
Mr. Volker Rupert Hellstern	German	53
Ms. Sibylle Thierer	German	58
Mr. Peerapol Soontornpesach	Thai	58

AUTHORIZED PERSON

Any of the above directors can sign on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Volker Rupert Hellstern is the Managing Director.

He is German nationality with the age of 53 years old.

Mr. Rattana Poonsanga is the Sales Director.

He is Thai nationality.

Mr. Peerapol Soontornpesach is the Finance & Account Manager.

He is Thai nationality with the age of 58 years old.

Mr. Frank Heyer is the Supply Chain Director.

He is German nationality.

Mr. Marivic Hellstern is the CRM Manager.

He is German nationality.

Mr. Wittaya Uampakdee is the Sales Manager [Home Appliance].

He is Thai nationality.

Mr. Sorawish Wiriyatrakoolchai is the Marketing Manager.

He is Thai nationality.

Mr. Yothin Prasertkul is the General Sales and Marketing Manager.

He is Thai nationality.

Mr. Kulchai Duangthawan is the Business Development Manager.

He is Thai nationality.

BUSINESS OPERATIONS

The subject’s activities are importer, distributor and re-exporter of furniture fittings, architectural hardware and related products as follows:

1. Furniture fittings:

Furniture Connectors

Furniture Castors Furniture Feet and Legs

Hinges and Associated Fittings

Furniture Lock and catches

Decorative Hardware

Lighting System for furniture and interior fittings

Folding door

Drawer Runners

2. Architectural hardware:

Door and Window Handles

Door Cylinders and Mechanical Locking system

Door Hinges

Overhead and floor door openers

Door Accessories

Sliding Door fitting

Electronic locking system

Kitchen ware: pull out units, draw unit, carousel unit, attachments, & railing system

3. Kitchen products:

Kitchen chrome wireware

Kitchen sinks and water taps

Kitchen fittings

Kitchen accessories

4. Sanitary products:

“HUEPPE” Hueppe GmbH & Co. Germany -Shower Enclosures

“BROT” Miroir Brot France -Cosmetic Mirrors

“ALAPE” Adolf Lamprecht Betriebs GmbH Germany -Bathroom Furniture

“KWC” KWC GmbH Germany - Faucets

5. Tool and Equipment for:

Woodworking

Painting

Automotive

6. Home Appliances

Subject also provides services for industry, architects and planners, specialist dealers, second fix carpenters and cabinet makers.

MAJOR BRANDS

“HAFELE”, “EMCO”, “HEMI”, “MELOH”, “SANDRA”, “VICTOR”, “LORENTINA”, “HANSA”, “FIMA”, “FELDER”, “ELLIPTA”, “FESTOOL”, “LOOX”, “DIALOCK”, “COMPACT”, “HOESCH”, “VITAFLEX”, “SLIDO” and “HUEPPE”

IMPORT [COUNTRIES]

Most of the products are imported from Germany, France, Italy, Switzerland, Sweden, United Kingdom, U.S.A., Spain, Taiwan, Republic of China, Korea, Japan, and Singapore, and the remaining is purchased from local suppliers.

MAJOR SUPPLIERS

Adolf Lamprecht Betriebs GmbH	: Germany
Kludi GmbH & Co. KG.	: Germany
Hueppe GmbH & Co.	: Germany
Miroir Brot SA	: France
KWC GmbH	: Germany
Emco Bad GmbH	: Germany
Heinrich Wilke GmbH	: Germany
Meloh Armaturen GmbH	: Germany
Festool Group GmbH	: Germany
Felder Inc.	: U.S.A.

SALES [LOCAL]

The products are sold locally by wholesale to dealers and manufacturers.

EXPORT

The products are re-exported to Myanmar, Laos, Cambodia, Indonesia, Philippines, Vietnam and Malaysia.

MAJOR CUSTOMERS [OVERSEAS]

YTT Co., Ltd. : Myanmar

Souvanny Imp-Export Co., Ltd. : Laos

German Hardware Supply Co., Ltd. : Cambodia

SUBSIDIARY AND AFFILIATED COMPANY

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

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.

CREDIT

Sales are by cash or on the credits term of 30-60 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

Bangkok Bank Public Company Limited

[Bangkapi Branch : Sukhumvit Rd., Wattana, Bangkok 10110]

The Siam Commercial Bank Public Company Limited

[Silom Branch : Silom Rd., Silom, Bangrak, Bangkok 10500]

Kasikornbank Public Company Limited

EMPLOYMENT

The subject employs approximately 320 staff. [office and sales staff]

LOCATION DETAILS

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

Branches:

- 81 Moo 5, T. Vichit, A. Muang, Phuket 83000

Tel: [66] 76 264-481, Fax: [66] 76 264-482.

- 140/89 Moo 11, T. Nongprue, A. Banglamung, Pattaya City, Chonburi 20150

Tel: [66] 38 332-485, Fax: [66] 38 332-489.

- 15/84 Soi Mubanborfai, T. Huahin, A. Huahin, Prachuabkirikhan 77110

Tel. [66] 32 547-704, Fax: [66] 32 547-705.

- 44/3 Moo 1, Bangna-Trad Road, K.M. 22, T. Seesajarakaeyai, A. Bangsaothong,

Samutprakarn 10540

REMARK

MAXIMUM CREDIT SHOULD BE GRANTED AT US$ 20,000,000.

COMMENT

The subject is an importer and distributor of furniture fitting. With more than 30,000 furniture fittings, it provides a comprehensive and top quality product range for the wood processing trade, specialist dealers and industry.

Despite a decrease in sales or service income in 2016 comparing to the previous year, it obtained higher net profit. Generally, the subject’s business remains healthy and promising.

FINANCIAL INFORMATION

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

Bht. 100 each.

The capita was increased later as followings :

Bht. 20,000,000 on January 9, 1998

Bht. 50,000,000 on April 29, 1998

Bht. 200,000,000 on November 1, 2004

The latest registered capital was increased to Bht. 200,000,000 divided into 2,000,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE : [as at April 30, 2017]

NAME	HOLDING	%
Hafele Holding GmbH Nationality: German Address : Germany	1,999,994	100.00
Ms. Sibylle Thierer Nationality: German Address : 57 Soi Sukhumvit 64, Bangchak, Prakanong, Bangkok	2	-
Mr. Volker Hellstern Nationality: German Address : 57 Soi Sukhumvit 64, Bangchak, Prakanong, Bangkok	2	-
Mr. Stefan Huber Nationality: German Address : 57 Soi Sukhumvit 64, Bangchak, Prakanong, Bangkok	2	-

Total Shareholders : 4

Share Structure [as at April 30, 2017]

Nationality	Shareholders	No. of Share	% Shares
Thai	-	-	-
Foreign - German	4	2,000,000	100.00
Total	4	2,000,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Ms. Sumana Phanpongsanon No. 5872

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2016, 2015 and 2014 were:

ASSETS

Current Assets	2016	2015	2014
Cash and Cash Equivalents	39,365,721	16,697,370	33,303,415
Trade Accounts and Other Receivable	862,357,980	932,649,589	912,284,520
Inventories	1,096,097,638	1,010,832,660	1,048,777,952
Prepaid Expense	-	-	35,395,466
Other Current Assets	37,755,424	36,240,797	40,873,162
Total Current Assets	2,035,576,763	1,996,420,416	2,070,634,515
Cash at Bank pledged as a Collateral	-	-	4,005,552
Investment in Subsidiaries	1,421,745	3,056,055	3,056,055
Property, Plant and Equipment	1,062,950,660	1,104,587,506	1,154,614,625
Computer Software	-	-	807,954
Leasehold Right	-	-	21,466,666
Deposits	-	-	25,507,752
Intangible Assets	28,321,958	8,425,822	-
Other Non-current Assets	39,931,272	34,091,444	7,750,236
Total Assets	3,168,202,398	3,146,581,243	3,287,843,355

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2016	2015	2014
Bank Overdraft and Short-term Loan from Financial Institution	590,592,542	714,143,916	1,039,773,096
Trade Accounts and Other Payable	237,873,139	255,130,560	256,709,320
Short-term Loan s	79,353,244	67,426,301	65,132,817
Accrued Income Tax	30,939,458	45,987,146	40,838,208
Advance Income from Customer	-	-	50,435,418
Other Current Liabilities	81,062,251	90,109,071	23,243,837
Total Current Liabilities	1,019,820,634	1,172,796,994	1,476,132,696
Provision for Employee Benefits	10,167,418	8,612,824	6,872,165
Total Liabilities	1,029,988,052	1,181,409,818	1,483,004,861
Shareholders’ Equity
Share capital : Baht 100 par value authorized, and issued share capital 2,000,000 shares	200,000,000	200,000,000	200,000,000
Capital Paid	200,000,000	200,000,000	200,000,000
Retained Earnings: [Deficit] Appropriated for statutory reserve	20,000,000	20,000,000	20,000,000
Unappropriated	1,918,214,346	1,745,171,425	1,584,838,494
Total Shareholders’ Equity	2,138,214,346	1,965,171,425	1,804,838,494
Total Liabilities and Shareholders’ Equity	3,168,202,398	3,146,581,243	3,287,843,355

PROFIT & LOSS ACCOUNT

Revenue	2016	2015	2014
Sales or Services Income	3,317,815,670	3,411,541,253	3,270,026,138
Other Income	33,883,823	16,582,078	57,010,475
Total Revenues	3,351,699,493	3,428,123,331	3,327,036,613
Expenses
Cost of Goods Sold or Services	1,935,346,066	1,999,367,621	1,920,188,262
Selling Expenses	562,407,527	598,892,764	572,618,308
Administrative Expenses	508,338,315	475,082,144	473,473,306
Total Expenses	3,006,091,908	3,073,342,529	2,966,279,876
Profit /[Loss] before Financial Cost & Income Tax	345,607,585	354,780,802	360,756,737
Financial Cost	[11,409,068]	[23,371,274]	[38,610,134]
Profit /[Loss] before Income Tax	334,198,517	331,409,528	322,146,603
Income Tax expenses	[74,978,220]	[85,187,715]	[76,749,797]
Net Profit / [Loss]	259,220,297	246,221,813	245,396,806

FINANCIAL ANALYSIS

ITEM	UNIT	2016	2015	2014
LIQUIDITY RATIO
CURRENT RATIO	TIMES	2.00	1.70	1.40
QUICK RATIO	TIMES	0.88	0.81	0.64
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	3.12	3.09	2.83
TOTAL ASSETS TURNOVER	TIMES	1.05	1.08	0.99
INVENTORY CONVERSION PERIOD	DAYS	206.72	184.54	199.36
INVENTORY TURNOVER	TIMES	1.77	1.98	1.83
RECEIVABLES CONVERSION PERIOD	DAYS	94.87	99.78	101.83
RECEIVABLES TURNOVER	TIMES	3.85	3.66	3.58
PAYABLES CONVERSION PERIOD	DAYS	44.86	46.58	48.80
CASH CONVERSION CYCLE	DAYS	256.73	237.74	252.39
PROFITABILITY RATIO
COST OF GOODS SOLD	%	58.33	58.61	58.72
SELLING & ADMINISTRATION	%	32.27	31.48	31.99
INTEREST	%	0.34	0.69	1.18
GROSS PROFIT MARGIN	%	42.69	41.88	43.02
NET PROFIT MARGIN BEFORE EX. ITEM	%	10.42	10.40	11.03
NET PROFIT MARGIN	%	7.81	7.22	7.50
RETURN ON EQUITY	%	12.12	12.53	13.60
RETURN ON ASSET	%	8.18	7.83	7.46
EARNING PER SHARE	BAHT	129.61	123.11	122.70
LEVERAGE RATIO
DEBT RATIO	TIMES	0.33	0.38	0.45
DEBT TO EQUITY RATIO	TIMES	0.48	0.60	0.82
TIME INTEREST EARNED	TIMES	30.29	15.18	9.34
ANNUAL GROWTH
SALES GROWTH	%	(2.75)	4.33
OPERATING PROFIT	%	(2.59)	(1.66)
NET PROFIT	%	5.28	0.34
FIXED ASSETS	%	(3.77)	(4.33)
TOTAL ASSETS	%	0.69	(4.30)

ANNUAL GROWTH : ACCEPTABLE

An annual sales growth is -2.75%. Turnover has decreased from THB 3,411,541,253.00 in 2015 to THB 3,317,815,670.00 in 2016. While net profit has increased from THB 246,221,813.00 in 2015 to THB 259,220,297.00 in 2016. And total assets has increased from THB 3,146,581,243.00 in 2015 to THB 3,168,202,398.00 in 2016.

PROFITABILITY : EXCELLENT

PROFITABILITY RATIO

Gross Profit Margin	42.69	Impressive	Industrial Average	-
Net Profit Margin	7.81	Impressive	Industrial Average	5.78
Return on Assets	8.18	Impressive	Industrial Average	4.27
Return on Equity	12.12	Impressive	Industrial Average	6.99

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. Gross Profit Margin is 42.69%. When compared with the industry average, the ratio of the company was higher, indicated that company was more profitable than the same industry.

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. Net Profit Margin ratio is 7.81%, higher figure when compared with those of its average competitors in the same industry, indicated that business was an efficient operator in a dominant position within its industry.

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. Return on Assets ratio is 8.18%, higher figure when compared with those of its average competitors in the same industry, indicated that business was an efficient profit in a dominant position within its industry.

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. Return on Equity ratio is 12.12%, higher figure when compared with those of its average competitors in the same industry, indicated that business was an efficient profit in a dominant position within its industry.

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

Return on Assets Downtrend

Return on Equity Downtrend

LIQUIDITY : ACCEPTABLE

LIQUIDITY RATIO

Current Ratio	2.00	Impressive	Industrial Average	1.48
Quick Ratio	0.88
Cash Conversion Cycle	256.73

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 2 times in 2016, increase from 1.7 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 higher, indicated that company was an efficient operator in a dominant position within its industry.

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 0.88 times in 2016, increase from 0.81 times, by excluding inventory, the company may have problems meeting current liabilities.

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 257 days.

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

Current Ratio Downtrend

LEVERAGE : EXCELLENT

LEVERAGE RATIO

Debt Ratio	0.33	Impressive	Industrial Average	0.41
Debt to Equity Ratio	0.48	Impressive	Industrial Average	0.70
Times Interest Earned	30.29	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 30.3 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 0.33 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 Uptrend

Times Interest Earned Stable

ACTIVITY : EXCELLENT

ACTIVITY RATIO

Fixed Assets Turnover	3.12	Impressive	Industrial Average	-
Total Assets Turnover	1.05	Impressive	Industrial Average	0.74
Inventory Conversion Period	206.72
Inventory Turnover	1.77	Impressive	Industrial Average	1.36
Receivables Conversion Period	94.87
Receivables Turnover	3.85	Impressive	Industrial Average	2.66
Payables Conversion Period	44.86

The company's Account Receivable Ratio is calculated as 3.85 and 3.66 in 2016 and 2015 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 2016 increased from 2015. 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 increased from 185 days at the end of 2015 to 207 days at the end of 2016. This represents a negative trend. And Inventory turnover has decreased from 1.98 times in year 2015 to 1.77 times in year 2016.

The company's Total Asset Turnover is calculated as 1.05 times and 1.08 times in 2016 and 2015 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 Downtrend

Inventory Turnover Downtrend

Receivables Turnover Downtrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.99
UK Pound	1	INR 89.91
Euro	1	INR 80.21
Thai Baht	1	INR 2.07

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

INFORMATION DETAILS

Analysis Done by :	PRA
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.