MIRA INFORM REPORT

Report No. :	353372
Report Date :	11.12.2015

IDENTIFICATION DETAILS

Name :	WINBOND ELECTRONICS CORP.
Registered Office :	No.8, Keya 1st Rd., Daya Dist., Taichung City 428
Country :	Taiwan
Date of Incorporation :	29.09.1987
Com. Reg. No.:	22099218
Legal Form :	Joint Stock Company
Line of Business :	Design, manufacture and sale of integrated circuits (ICs) and memory products
No. of Employee :	About 3,893 employees (Group, As of 2015-3-31)

RATING & COMMENTS

MIRA’s Rating :

A

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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Taiwan	A1	A1

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. 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. However, follow-on components of the ECFA, including a signed agreement on trade in services and negotiations on trade in goods and dispute resolution, have stalled. In early 2014, the government bowed to public demand and proposed a new law governing the oversight of cross-Strait agreements, before any additional deals with China are implemented; the legislature has yet to vote on such legislation, leaving the future of ECFA up in the air as President MA enters his final full year in office. MA has portrayed ECFA as Taiwan’s key to greater participation in East Asia’s free trade networks.

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 expected to account for nearly 20% of the island's total population by 2025.

The island runs a trade surplus, largely because of its surplus with China, and its foreign reserves are the world's fifth largest, behind those of China, Japan, Saudi Arabia, 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, the Taiwan Central Bank signed a memorandum of understanding (MOU) 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 has helped Taiwan develop into a local RMB hub.

Closer economic links with the mainland bring greater opportunities for Taiwan’s economy but also pose new challenges as the island becomes more economically dependent on China at a time when political differences remain unresolved. During 2014, the press paid increasing attention to domestic economic issues, while pushing aside the debates over trade liberalization that were a hallmark of MA’s tenure. The media focused on the divide between Taiwan’s “haves” and “have nots,” providing extensive coverage of public frustration with stagnant wages, skyrocketing housing prices, and the difficulty of finding decent entry-level jobs.

Source : CIA

Contact Points

Company Name:	Winbond Electronics Corp.
Supplied Name:	Win Bond Electronics Corp
Trading Address:	No.8, Keya 1st Rd., Daya Dist., Taichung City 428, Taiwan (R.O.C.)
Supplied Address:	No 8, Keya Rd 1, Central Taiwan Science Park, Taichung City 42881
Telephone Number:	+886-4-2521-8168
Fax Number:	+886-3-579-6021
E-mail:	YCWang16@WINBOND.COM

Note: The exact name and address are as above.

Company Identification Details

Registered Name:	Winbond Electronics Corp.
Registered Address:	No.8, Keya 1st Rd., Daya Dist., Taichung City 428, Taiwan (R.O.C.)
Date of Foundation:	1987-9-29
Registration Number:	22099218
Registry:	Central Taiwan Science Park Administration
Registered Capital:	NTD 67,000,000,000 (USD 2,043,500,000) (As of 2015.12, 1 NTD = 0.0305 USD)
Paid-up Capital:	NTD 35,800,001,930 (USD 1,091,900,059)
Legal Representatives:	Youjun Jiao
Legal Form:	Joint Stock Company
Principal Activities:	Design, manufacture and sale of integrated circuits (ICs) and memory products.
Staff:	About 3,893 employees (Group, As of 2015-3-31)
Listed at Stock Exchange:	Yes, Stock Code 2344
Date of Last Annual Return:	2015-11-18

History

Subject was incorporated on 1987-9-29 with registered number 22099218 as Joint Stock Company in Taiwan.

Subject listed on Taiwan Stock Exchange on 1995-10-18

Corporate Structure

Factory

Name:	Zhongke Plant
Address:	No.8, Keya 1st Rd., Daya Dist., Taichung City 428, Taiwan (R.O.C.)
Date of Registration:	2008-10-1
Factory Registration Number:	93A00026
Factory Manager:	Wanshou Wen
Status:	In production
Date of Last Annual Return:	2009-4-24
Major Products:	261 semiconductor

Branch

Name	Taichung Branch
Registration Number	12800674
Date of Registration	2004-11-17
Status	Abolishment
Date of Abolishment	2006-3-22

Related Companies

1
Name:	Winbond Electronics (Suzhou) Limited
Address:	Room 515, International Corporation Garden (4 floor, District E), No.2, Xugongqiao Road, Huaqiao Town, Kunshan City, Jiangsu Province, China
Tel.:	+86-512-8163-8168
2
Name:	Winbond Electronics (H.K.) Limited
Address:	Unit 9-11, 22F, Millennium City 2, 378 Kwun Tong Road, Kowloon, Hong Kong
Tel.:	+852-2751-3126
3
Name:	Winbond Technology Ltd
Address:	Abba Eban 1, Building B, First Floor, Herzliya 4672519, Israel
Tel.:	+972 -9 -866 -0700
4
Name:	Winbond Electronics Corp. Japan
Address:	Shin-Yokohama Square Bldg. 9F 2-3-12 Shin-Yokohama, Kouhoku-ku, Yokohama, kanagawa 222-0033, Japan
Tel.:	+81-45-478-1881
5
Name:	Winbond Electronics Corporation America
Address:	2727 North First Street, San Jose, CA 95134, U.S.A
Tel.:	+1-408-943-6666

Offices

1
Name	Taipei Office 1
Address:	2F., No.192, Jingye 1st Rd., Zhongshan Dist., Taipei City 104, Taiwan, R.O.C.
Tel.:	+886-2-8177-7168
2
Name	Taipei Office 2
Address:	26F, No.1, SongZhi Rd., Xinyi Dist., Taipei City 110, Taiwan, R.O.C..
Tel.:	+886-2-8177-7168
3
Name:	Jhubei Office
Address:	No. 539, Sec. 2, Wenxing Rd., Jhubei City, Hsinchu County 302, Taiwan, R.O.C.
Tel.:	+886-3-567-8168

Shareholders

Major Shareholders

Name	Subscription Shares
Youjun Jiao	58,264,955
Fengqiang Miao
100,000
Rong Jin	10,720,537
Walsin Lihwa Corporation	811,327,531
Dongyi Zhan	500,000
Jinxin Investment Co., Ltd. (Literal translation)	182,047,000

Shareholder Information:

1
Registered Name:	Walsin Lihwa Corporation
Registered Address:	25/F., No. 1, Songzhi Rd., Xinyi Dist., Taipei City, Taiwan
Date of Foundation:	1966-12-1
Registration Number:	35412204
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 65,000,000,000 (USD 1,982,500,000) (As of 2015.12, 1 NTD = 0.0305 USD)
Paid-up Capital:	NTD 35,760,002,580 (USD 1,090,680,079)
Legal Representatives:	Youjun Jiao
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2015-6-16
2
Registered Name:	Jinxin Investment Co., Ltd. (Literal translation)
Registered Address:	26/F., No. 1, Songzhi Rd., Xinyi Dist., Taipei City, Taiwan
Date of Foundation:	1982-1-22
Registration Number:	30965368
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 6,000,000,000 (USD 183,000,000) (As of 2015.12, 1 NTD = 0.0305 USD)
Paid-up Capital:	NTD 4,851,072,640 (USD147,957,716)
Legal Representatives:	Youjun Jiao
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2015-7-13

Management Information

Core Management

Directors

1
Name		Youjun Jiao
Position		Board Chairman & Manager
Date of Appointment of Manager		2005-6-10
2
Name	Fengqiang Miao
Position		Director
3
Name	Rong Jin
Position		Director
4
Name	Huiming Zheng
Position		Director
5
Name	Dongyi Zhan
Position		Director & Manager
Date of Appointment of Manager		2009-2-9
6
Name	Fengci Cai
Position		Independence Director
7
Name	Shanke Xu
Position		Independence Director
8
Name	Jieli Xu
Position		Independence Director
9
Name	Jian Wen
Position		Supervisor
10
Name	Youyi Zhu
Position		Supervisor
11
Name	Hongqi Yu
Position		Supervisor
12
Name	Wanshou Wen
Position		Manager
Date of Appointment		2003-2-1
13
Name	Yuanmao Su
Position		Manager
Date of Appointment		2005-2-1
14
Name	Chenxi Lin
Position		Manager
Date of Appointment		2005-2-1
15
Name	Peiming Chen
Position		Manager
Date of Appointment		2005-10-1
16
Name	Zhenggong Lin
Position		Manager
Date of Appointment		2006-11-1
17
Name	Jinfeng Cai
Position		Manager
Date of Appointment		2011-11-1
18
Name	Peilin Bai
Position		Manager
Date of Appointment		2014-10-1
19
Name	Qiuji Huang
Position		Manager
Date of Appointment		2015-4-1

Personnel Structure

Total Employees

About 3,893 employees (Group, As of 2015-3-31)

Operation Information

Offices & Factories

	Headquarters
Add	No.8, Keya 1st Rd., Daya Dist., Taichung City 428, Taiwan (R.O.C.)

Production Information

Subject is engaged in the research, development, design, manufacturing of integrated circuits (ICs) and memory products.

Subject has a factory in Taiwan for production.

Subject obtained the certifications of ISO 9001, TS 16949, QC080000, ISO 14001, and OHSAS 18001.

Purchase Information

The registered activities of subject:

Business Code	Details
CC01080	Manufacturing of electronic components.
CC01110	Manufacturing of computer and its related equipment.
CC01120	Manufacturing and copying of media for storing files.
F401010	International trading business.
I301010	Service of information software.
I301020	Service of data processing.
I501010	Designing of products.
Researching, development, designing, manufacturing, repairing and sales of the following products:
1	Integrated circuit.
2	Semiconductor memory components and related products of its system.
3	Semiconductor components and related products of its system for computer’s system.
4	Semiconductor components and related products of its system for digital communication.
5	Semiconductor components and related products of its system for the related equipment.
6	Other semiconductor components.
7	Designing and data processing for computer software programs.
8	Related importing and exporting business of the company.

The components and raw material for production are purchased from both home and abroad.

It is introduced that subject imports technologies from USA and Japan, etc.

Sales Information

Subject is engaged in sale of integrated circuits (ICs) and memory products.

The major products sold by the subject are logic ICs, dynamic random access memory (DRAM) products, including mobile RAM products, specialty DRAM products and graphics DRAM products and flash memory products

Subject’s products are mainly applied in computers, communications and consumer electronics (3Cs), such as personal computers, wireless networks, set-top boxes, televisions and digital cameras

Subject’s sales regions include Asia, United States and Europe

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Products	Raw material
Payment Terms	T/T, Cash

Import

Products	Raw material
Payment Terms	L/C, T/T

Sales

Domestic Markets

Product	Integrated circuits (ICs) and memory products.
Selling Terms	T/T, Cash

Export

Product	Integrated circuits (ICs) and memory products.
Selling Terms	L/C, T/T

Balance Sheet

Unit: NTD/000

Consolidated	2014-12-31	2013-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	6,975,514	7,670,379
Current available-for-sale financial assets
Current available-for-sale financial assets, net	2,902,576	1,790,113
Accounts receivable, net
Accounts receivable, net	5,433,212	4,906,167
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	85,234	89,754
Other receivables
Other receivables, net	310,447	300,116
Inventories
Inventories, manufacturing business
Inventories, manufacturing business, net	6,316,936	6,973,887
Total inventories	6,316,936	6,973,887
Other current assets
Total other current assets	952,819	677,839
Total current assets	22,976,738	22,408,255
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	0	281,070
Held-to-maturity non-current financial assets
Non-current held-to-maturity financial assets, net	101,840	97,770
Non-current financial assets at cost
Non-current financial assets at cost, net	719,378	656,676
Investments accounted for using equity method
Investments accounted for using equity method, net	2,416,386	2,407,094
Property, plant and equipment
Total property, plant and equipment	33,986,751	24,804,025
Investment property, net
Investment property, net	78,506	80,401
Intangible assets
Total intangible assets	311,616	193,947
Deferred tax assets	3,490,222	4,088,406
Other non-current assets
Other non-current assets, others
Total other non-current assets, others	810,271	661,034
Total other non-current assets	810,271	661,034
Total non-current assets	41,914,970	33,270,423
Total assets	64,891,708	55,678,678
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	390,213	2,072,708
Current financial liabilities at fair value through profit or loss
Total current financial liabilities at fair value through profit or loss	16,894	16,545
Accounts payable
Total accounts payable	3,823,082	3,262,977
Accounts payable to related parties
Total accounts payable to related parties	642,564	521,618
Other payables
Payable on machinery and equipment	1,287,996	472,496
Other payables, others	2,290,033	2,213,020
Total other payables	3,578,029	2,685,516
Other current liabilities
Long-term liabilities, current portion
Long-term borrowings, current portion	5,879,760	3,863,097
Total long-term liabilities, current portion	5,879,760	3,863,097
Other current liabilities, others	120,836	79,149
Total other current liabilities	6,000,596	3,942,246
Total current liabilities	14,451,378	12,501,610
Non-current liabilities
Long-term borrowings
Total long-term borrowings	9,814,030	6,076,193
Other non-current liabilities
Accrued pension liabilities	974,840	929,453
Other non-current liabilities, others	351,369	283,320
Total other non-current liabilities	1,326,209	1,212,773
Total non-current liabilities	11,140,239	7,288,966
Total liabilities	25,591,617	19,790,576
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	36,949,822	36,940,232
Total capital stock	36,949,822	36,940,232
Capital surplus
Total capital surplus	2,143,393	2,148,359
Retained earnings
Unappropriated retained earnings (accumulated deficit)
Accumulated profit and loss	-1,119,684	-4,187,772
Total unappropriated retained earnings (accumulated deficit)	-1,119,684	-4,187,772
Total retained earnings	-1,119,684	-4,187,772
Other equity interest
Exchange differences on translation of foreign financial statements
Total exchange differences on translation of foreign financial statements	23,265	-59,567
Unrealized gains (losses) on available-for-sale financial assets
Total unrealized gains (losses) on available-for-sale financial assets	292,835	79,055
Total other equity interest	316,100	19,488
Treasury shares	106,387	106,387
Total equity attributable to owners of parent	38,183,244	34,813,920
Non-controlling interests	1,116,847	1,074,182
Total equity	39,300,091	35,888,102
Number of share capital awaiting retirement	0	0
Equivalent issue shares of advance receipts for ordinary share	0	0
Number of shares in entity held by entity and by its subsidiaries	7,518,364	7,518,364

Profit and Loss Account

Unit: NTD/000

Consolidated	2014	2013
Operating revenue
Total operating revenue	37,989,660	33,135,448
Operating costs
Total operating costs	27,199,199	26,226,516
Gross profit (loss) from operations	10,790,461	6,908,932
Gross profit (loss) from operations	10,790,461	6,908,932
Operating expenses
Selling expenses
Total selling expenses	1,127,300	972,433
Administrative expenses
Total administrative expenses	1,112,579	980,725
Research and development expenses
Total research and development expenses	4,892,159	4,190,576
Total operating expenses	7,132,038	6,143,734
Net operating income (loss)	3,658,423	765,198
Non-operating income and expenses
Other income
Interest income
Total interest income	166,289	53,033
Dividend income	114,709	29,715
Gains on doubtful debt recoveries	902	6,330
Other income, others	43,045	33,742
Total other income	324,945	122,820
Other gains and losses
Gains on disposals of investments	40,657	-7,674
Foreign exchange gains	250,790	161,934
Miscellaneous disbursements	34,162	37,652
Losses on disposals of property, plant and equipment	7,643	3,807
Losses on financial assets (liabilities) at fair value through profit or loss	129,296	89,923
Impairment loss
Impairment loss on financial assets	0	783
Total impairment loss	0	783
Other gains and losses, net	120,346	22,095
Finance costs
Interest expense	177,339	259,402
Finance costs, net	177,339	259,402
Share of profit (loss) of associates and joint ventures accounted for using equity method
Share of profit of associates and joint ventures accounted for using equity method	14,663	-92,057
Share of profit (loss) of associates and joint ventures accounted for using equity method, net	14,663	-92,057
Total non-operating income and expenses	282,615	-206,544
Profit (loss) from continuing operations before tax	3,941,038	558,654
Tax expense (income)
Total tax expense (income)	730,494	271,288
Profit (loss) from continuing operations	3,210,544	287,366
Profit (loss)	3,210,544	287,366
Other comprehensive income
Exchange differences on translation	90,597	43,138
Unrealised gains (losses) on valuation of available-for-sale financial assets	213,780	1,487,472
Actuarial gains (losses) on defined benefit plans	-10,274	36,810
Other comprehensive income, net	294,103	1,567,420
Total comprehensive income	3,504,647	1,854,786
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	3,075,969	206,564
Profit (loss), attributable to non-controlling interests	134,575	80,802
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	3,364,700	1,752,631
Comprehensive income, attributable to non-controlling interests	139,947	102,155
Basic earnings per share
Basic earnings (loss) per share from continuing operations	0.83	0.06
Total basic earnings per share	0.83	0.06
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations	0.83	0.06
Total diluted earnings per share	0.83	0.06

Cash Flows

Unit: NTD/000

Consolidated	2014	2013
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	3,941,038	558,654
Profit (loss) before tax	3,941,038	558,654
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	4,759,388	6,277,692
Amortization expense	115,818	169,142
Provision (reversal of provision) for bad debt expense	5,285	5,138
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	349	39,904
Interest expense	177,339	259,402
Interest income	-166,289	-53,033
Dividend income	-114,709	-29,715
Share of loss (profit) of associates and joint ventures accounted for using equity method	-14,663	92,057
Loss (gain) on disposal of property, plan and equipment	7,643	3,807
Loss (gain) on disposal of investments	-40,657	7,674
Impairment loss on financial assets	0	783
Realized loss (profit) on from sales	-118	-137
Other adjustments to reconcile profit (loss)	230,527	-177,945
Total adjustments to reconcile profit (loss)	4,959,913	6,594,769
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	0	5,529
Decrease (increase) in accounts receivable	-533,864	-308,018
Decrease (increase) in accounts receivable due from related parties	4,520	-43,681
Decrease (increase) in other receivable	26,629	62,983
Decrease (increase) in inventories	426,424	1,312,735
Decrease (increase) in other current assets	-274,980	-150,998
Decrease (increase) in other operating assets	-83,558	-5,567
Total changes in operating assets	-434,829	872,983
Changes in operating liabilities
Increase (decrease) in accounts payable	560,105	-436,803
Increase (decrease) in accounts payable to related parties	120,946	-12,721
Increase (decrease) in other payable	123,711	-60,474
Increase (decrease) in other current liabilities	41,687	1,320
Increase (decrease) in other operating liabilities	58,681	81,803
Total changes in operating liabilities	905,130	-426,875
Total changes in operating assets and liabilities	470,301	446,108
Total adjustments	5,430,214	7,040,877
Cash inflow (outflow) generated from operations	9,371,252	7,599,531
Interest received	48,770	44,203
Dividends received	122,653	34,530
Interest paid	-272,935	-298,559
Income taxes refund (paid)	-134,535	-122,104
Net cash flows from (used in) operating activities	9,135,205	7,257,601
Cash flows from (used in) investing activities
Acquisition of available-for-sale financial assets	-828,260	-631,036
Proceeds from disposal of available-for-sale financial assets	148,292	206,111
Acquisition of held-to-maturity financial assets	0	-94,584
Acquisition of financial assets at cost	0	-16,000
Proceeds from disposal of financial assets at cost	0	2,467
Proceeds from capital reduction of financial assets at cost	5,368	32,603
Acquisition of investments accounted for using equity method	0	-151,236
Proceeds from disposal of investments accounted for using equity method	33,872	0
Acquisition of property, plant and equipment	-13,192,897	-2,245,724
Proceeds from disposal of property, plant and equipment	1,351	5,076
Acquisition of intangible assets	-192,673	-155,663
Decrease in long-term lease and installment receivables	152,728	64,246
Net cash flows from (used in) investing activities	-13,872,219	-2,983,740
Cash flows from (used in) financing activities
Decrease in short-term loans	-1,682,495	-643,766
Decrease in short-term notes and bills payable	0	-500,000
Proceeds from long-term debt	9,617,600	3,510,000
Repayments of long-term debt	-3,863,100	-4,604,040
Cash dividends paid	-97,121	-137,588
Exercise of employee share options	4,876	25,890
Change in non-controlling interests	7,764	21,352
Net cash flows from (used in) financing activities	3,987,524	-2,328,152
Effect of exchange rate changes on cash and cash equivalents	54,625	13,757
Net increase (decrease) in cash and cash equivalents	-694,865	1,959,466
Cash and cash equivalents at beginning of period	7,670,379	5,710,913
Cash and cash equivalents at end of period	6,975,514	7,670,379
Cash and cash equivalents reported in the statement of financial position	6,975,514	7,670,379

Note: Subject didn’t submit its individual financial information; we obtained its consolidated financials as above for reference.

The above financial figures are based on the IFRSs Accounting System.

Bankers

Subject declined to disclose its bank details; from other source we could not obtain the relevant information, either.

Public Record

Lawsuit

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

Special Note

Interview Details

Name	Ms. Yu
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.79
UK Pound	1	Rs.101.37
Euro	1	Rs.73.46
NTD	1	Rs.2.04

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

INFORMATION DETAILS

Analysis Done by :	KAS
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%)

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.