MIRA INFORM REPORT

Report Date :

24.12.2014

IDENTIFICATION DETAILS

Name :	CINETECH INDUSTRIAL CO., LTD.

Registered Office :	7F, No.10, Lane 235, Pao Chiao Rd., Xindian Dist., New Taipei City 231

Country :	Taiwan

Date of Incorporation :	07.05.1985

Com. Reg. No.:	21258906

Legal Form :	Joint Stock Company

Line of Business :	Manufacturing and Sale of Electronic Components.

No. of Employee :	About 50 Employees

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Unknown

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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Taiwan

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

TAIWAN ECONOMIC OVERVIEW

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are other major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, and following the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, Taiwan in July 2013 signed a free trade deal with New Zealand—Taipei’s first-ever with a country with which it does not maintain diplomatic relations—and in November inked a trade pact with Singapore. Negotiations continue on follow-on components of ECFA regarding trade in goods and a dispute resolution mechanism; a trade in services agreement is under review in the legislature. Taiwan's Total Fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting for 11.2% of the island's total population as of 2012. The island runs a large overall trade surplus largely because of its surplus with China, and its foreign reserves are the world's sixth largest, behind China, Japan, Saudi Arabia, Russia, and Switzerland. In 2006 China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Taiwan since 2009 has gradually loosened rules governing Chinese investment on the island, and has also secured greater market access for its investors in the mainland. In August 2012, Taiwan Central Bank signed a memorandum of understanding on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese RMB and the New Taiwan dollar across the Strait, which could help develop Taiwan into a local RMB hub. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved.

Source : CIA

Contact Points

Company Name:	CINETECH INDUSTRIAL CO., LTD.
Supplied Name:	Cinetech Industrial Co Ltd
Trading Address:	7F, No.10, Lane 235, Pao Chiao Rd., Xindian Dist., New Taipei City 231, Taiwan (R.O.C.)
Supplied Address:	7th Fl, No 10, Lane 235, Bao Chiao Rd., Hsintien City, New Taipei City
Telephone Number:	+886-2-2915-9601
Fax Number:	+886-2-2915-9600
E-mail:	cinetech@cinetech.com.tw
Website:	www.cinetech.com.tw

Notes: The exact name and address are as above.

Company Identification Details

Registered Name:	Cinetech Industrial Co., Ltd.
Registered Address:	7F, No.10, Lane 235, Pao Chiao Rd., Xindian Dist., New Taipei City 231, Taiwan (R.O.C.)
Date of Foundation:	1985-5-7
Registration Number:	21258906
Registry:	New Taipei City Government
Registered Capital:	NTD 29,800,000 (USD 1,013,200) (As of 2014.12, 1 NTD = 0.0340 USD)
Paid-up Capital:	NTD 29,800,000 (USD 1,013,200)
Legal Representatives:	Baojun Xu
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale of electronic components
Staff:	About 50 Employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	2011-4-29

History

Subject was incorporated on 1985-5-7 with registered number 21258906 as Joint Stock Company in Taiwan.

Corporate Structure

Factory

Address:	7F, No.10, Lane 235, Pao Chiao Rd., Xindian Dist., New Taipei City 231, Taiwan (R.O.C.)
Date of Foundation:	1994-10-26
Date of Registration:	1994-11-17
Factory Registration Number:	99603057
Factory Manager:	Baojun Xu
Status:	In Production
Date of Last Annual Return:	2002-1-30
Major Products:	262 electronic passive component

Related Company

Name:	Meftech Corporation
Address:	7F, No.10, Lane 235, Pao Chiao Rd., Xindian Dist., New Taipei City 231, Taiwan (R.O.C.)

Note: It is introduced that subject has a related company in Suzhou City, China; while the detail information we cannot obtain from any sources.

Shareholders

Major Shareholders

Name	Subscription Shares
Baojun Xu
1,641,000
Baoming Xu	210,600
Kunsheng Chen	119,200
Xiaozhu Guo	119,200

Management Information

Core Management

Directors

1
Name		Baojun Xu
Position		Board Chairman
2
Name	Baoming Xu
Position		Director
3
Name	Kunsheng Chen
Position		Director
4
Name	Xiaozhu Guo
Position		Supervisor

Personnel Structure

Total Employees

About 50 Employees

Operation Information

	Headquarters
Add	7F, No.10, Lane 235, Pao Chiao Rd., Xindian Dist., New Taipei City 231, Taiwan (R.O.C.)

Production Information

Subject is engaged in manufacturing of electronic components

It is introduced that subject has a factory in Taiwan for production.

Subject obtained the certification of RoHs.

Purchase Information

The registered activities of subject:

Business Code	Details
F102030	Wholesale of alcohol and tobacco
F104110	Wholesale of textile, garment, shoes, hat, umbrella and accessories
F106010	Wholesale of hardware
F106020	Wholesale of daily supplies
F109070	Wholesale of stationery, music instrument, recreational supplies
F113050	Wholesale of computer and office equipment
F114030	Wholesale of automobile and haulage motor components
F119010	Wholesale of electronic materials
F203010	Retail of food and beverage
F203020	Retail of alcohol and tobacco
F206010	Retail of hardware
F401010	International trade business
F401171	Import of alcohol
CC01080	Manufacturing of electronic components
I102010	Investment consulting business
I103060	Management consulting business
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

The components and raw materials for production are mostly purchased in domestic market.

Sales Information

Subject is engaged in sale of electronic components

Subject’s major products include network resistors, chip resistors, metal film resistors, carbon film resistors, power wire wound resistors, ceramic rods and caps for making resistors, ceramic disc capacitors, multitier capacitors, chip capacitors, crystal products and aluminum electrolytic capacitors.

Subject’s sales regions include Japan, Southeast Asia, Europe and America

Subject’s major foreign customers are Megastar Electroniques Inc and RCD Components Inc.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Products	Raw materials
Payment Terms	Cash, T/T

Import

Subject has little import.

Sales

Domestic Markets

Product	Electronic components
Selling Terms	Cash, T/T

Export

Product	Electronic components
Selling Terms	T/T (100% in advance for new customers)

Financial Information

Subject has no obligations to disclose its financial statements to the third party according to the relevant policy in Taiwan and the only source from which we can obtain the information is the subject itself.

Subject’s relevant staff Ms. Alice declined to disclose its financials citing the grounds of company’s confidentiality; from other sources we could not obtain such information, either.

Bankers

1
Name:	Taipei Fubon Commercial Bank Co., Ltd.
2
Name:	First Commercial Bank

Public Record

Mortgage

No chattel mortgage record of subject has been found within the recent 3 months.

Lawsuit

Up to date of reporting, no existing or latent litigation of the subject has been found.

Special Note

Interview Details

Name	Ms. Alice
Department	Sales Department
E-mail	alice@cinetech.com.tw

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.45
UK Pound	1	Rs.98.88
Euro	1	Rs.77.62

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	ANK

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.