MIRA INFORM REPORT

Report No. :	302937
Report Date :	17.01.2015

IDENTIFICATION DETAILS

Name :	NANTEX INDUSTRY COMPANY LIMITED
Registered Office :	No.9, Industrial 1st Rd., Linyuan Dist., Kaohsiung City 832
Country :	Taiwan
Financials (as on) :	31.12.2013
Date of Incorporation :	10.01.1979
Com. Reg. No.:	12209807
Legal Form :	Joint Stock Company
Line of Business :	Manufacture and sales of synthetic rubber products
No. of Employee :	300

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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
Taiwan	A2	A2

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

Company name and address

Company Name:	NANTEX INDUSTRY CO., LTD.
Supplied Name:	NANTEX INDUSTRY CO,LTD.
Trading Address:	No.9, Industrial 1st Rd., Linyuan Dist., Kaohsiung City 832, Taiwan (R.O.C.)
Supplied Address:	NO,9 INDUSTRIAL IST ROAD LIN-YUAN DIST, KAOHSIUNG CITY TAIWAN
Telephone Number:	+886-7-641-3621
Fax Number:	+886-7-642-4828
E-mail:	susan@nantex.com.tw
Website:	www.nantex.com.tw

The exact name and address are as above.

Company Identification Details

Registered Name:	NANTEX INDUSTRY CO., LTD.
Registered Address:	No.9, Industrial 1st Rd., Linyuan Dist., Kaohsiung City 832, Taiwan (R.O.C.)
Date of Foundation:	1979-1-10
Registration Number:	12209807
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 4,149,931,920 (USD 131,137,849) (As of 2015.01, 1 NTD = 0.0316 USD)
Paid-up Capital:	NTD 4,149,931,920 (USD 131,137,849)
Legal Representatives:	Dongyuan Yang
Legal Form:	Joint Stock Company
Principal Activities:	Manufacture and sales of synthetic rubber products, etc
Staff:	About 300 Employees
Listed at Stock Exchange:	Yes, Stock Symbol: 2108
Date of Last Annual Return:	2014-8-22

History

Subject was incorporated on 1979-1-10 with registered number 12209807 as Joint Stock Company in Taiwan.

Subject was listed in Taiwan Stock Exchange on 1992-10-27.

Corporate Structure

Factory

Address:	No.9, Industrial 1st Rd., Linyuan Dist., Kaohsiung City 832, Taiwan (R.O.C.)
Date of Foundation:	1982-3-15
Date of Registration:	1990-12-31
Factory Registration Number:	99664502
Factory Manager:	Dongyuan Yang
Status:	In production
Date of Last Annual Return:	2011-10-13
Major Products:	151 pulp, paper, paperboard 152 paper container 184 synthetic resin, plastic and rubber 199 other chemical products

Major Related Companies

1
Name:	Intermedium International Ltd.
Address:	P.O. Box 957, Offshore Incorporations Centre Road, Town Tortola, British Virgin Islands
Principal Activities:	Overseas investment management
2
Name:	Zhenjiang Nantex Chemical Industry Co., Ltd.
Address:	No.99, Linjiang West Road, Zhenjiang New Area, Zhenjiang City, Jiangsu Province, China
Telephone Number:	+86-511-8336-6688
Fax Number:	+86-511-8336-6788
Staff:	About 186 Employees
Date of Registration:	2001-10-29
Registration Number:	321100400003668
Registered Capital:	CNY 62,600,000
Legal Representatives:	Dongyuan Yang
Legal Form:	Limited Liabilities Company
3
Name	Nanmat Technology Co., Ltd.
Address	No.36, Central Road, Nan-Tze E.P.Z, Kaohsiung 811, Taiwan, ROC
Telephone Number	+886-7-368-6666
Fax Number	+886-7-368-1234
Staff:	About 192 Employees

Shareholders

Major Shareholders

Name	Subscription Shares
Tainan Textile Co., Ltd (Literal Translation)	88,953,405
Wenteng Hou
3,855,516
Liling Zheng	2,359,895
Jiu Fu Investment Co., Ltd (Literal Translation)	20,193,295
Ta Chen Construction & Engineering Corp.	11,231,982
Cheng Long Investment Co., Ltd (Literal Translation)	3,992,374
Yong Yuan Investment Co., Ltd (Literal Translation)	879,136
Yaoming Zhuang	2,094,449
Shen Qiu	290,139
Hon Han Enterprise Corporation	9,027,009
Xin He Xing Investment Co., Ltd (Literal Translation)	8,302,479
Baicang Du	109,200
Wuming Hou	964,978
Huilan Wu	1,214
Yijun Wu	935,657
Guodong Li	519,956

Shareholder Information:

1
Registered Name:	Xin He Xing Investment Co., Ltd (Literal Translation)
Registered Address:	9F, No. 560, 4 Sec, Zhongxiao E Road, Xinyi District, Taipei City
Date of Foundation:	1981-2-11
Registration Number:	12314771
Registry:	Taipei City Government
Registered Capital:	NTD 218,240,000 (USD 6,896,384) (As of 2015.01, 1 NTD = 0.0316 USD)
Paid-up Capital:	NTD 218,240,000 (USD 6,896,384)
Legal Representatives:	Qingfeng Wu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2014-7-8
2
Registered Name:	Hon Han Enterprise Corporation
Registered Address:	2F. No.102, Ho-Nan Rd., Lin Ya Area, Kaohsiung
Date of Foundation:	1975-1-31
Registration Number:	83700774
Registry:	Economic Development Board of Kaohsiung City Government
Registered Capital:	NTD 81,000,000 (USD 2,559,600) (As of 2015.01, 1 NTD = 0.0316 USD)
Legal Representatives:	Qingchang Huang
Legal Form:	Private Limited Liability Company
Date of Last Annual Return:	2013-10-31
3
Registered Name:	Yong Yuan Investment Co., Ltd (Literal Translation)
Registered Address:	6F-1, No. 28, 10 Alley, 30 Lane, Dong-An Road, Dongming, East District, Tainan City
Date of Foundation:	1987-10-20
Registration Number:	22661406
Registry:	Tainan City Government
Registered Capital:	NTD 141,200,000 (USD 4,461,920) (As of 2015.01, 1 NTD = 0.0316 USD)
Paid-up Capital:	NTD 141,200,000 (USD 4,461,920)
Legal Representatives:	Zhonghe Wu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2013-9-2
4
Registered Name:	Cheng Long Investment Co., Ltd (Literal Translation)
Registered Address:	2F, No. 289, Chang-An West Road, Datong District, Taipei City
Date of Foundation:	1982-10-12
Registration Number:	07698538
Registry:	Taipei City Government
Registered Capital:	NTD 150,000,000 (USD 4,740,000) (As of 2015.01, 1 NTD = 0.0316 USD)
Paid-up Capital:	NTD 150,000,000 (USD 4,740,000)
Legal Representatives:	Yingzhi Zhuang
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2013-11-22
5
Registered Name:	Ta Chen Construction & Engineering Corp.
Registered Address:	19F., No.30, Jhongjheng S. Rd., Yongkang Dist., Tainan City 710, Taiwan (R.O.C.)
Date of Foundation:	1959-5-11
Registration Number:	68026203
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 1,240,000,000 (USD 39,184,000) (As of 2015.01, 1 NTD = 0.0316 USD)
Paid-up Capital:	NTD 1,240,000,000 (USD 39,184,000)
Legal Representatives:	Rongtian Zhang
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2013-3-14
6
Registered Name:	Jiu Fu Investment Co., Ltd (Literal Translation)
Registered Address:	No. 171, 2 Sec, Minquan Road, Yongfu Alley, Zhongxi District, Tainan City
Date of Foundation:	1986-4-30
Registration Number:	22001545
Registry:	Tainan City Government
Registered Capital:	NTD 199,990,000 (USD 6,319,684) (As of 2015.01, 1 NTD = 0.0316 USD)
Paid-up Capital:	NTD 199,990,000 (USD 6,319,684)
Legal Representatives:	Liling Zheng
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2014-9-18
7
Registered Name:	Tainan Textile Co., Ltd (Literal Translation)
Registered Address:	No.511, Yu-Nung Road, Tainan, Taiwan, R.O.C.
Date of Foundation:	1955-3-21
Registration Number:	68919301
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 16,404,117,400 (USD 518,370,110) (As of 2015.01, 1 NTD = 0.0316 USD)
Paid-up Capital:	NTD 16,404,117,400 (USD 518,370,110)
Legal Representatives:	Gaohui Zheng
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2014-8-21

Management Information

Core Management

Directors

1
Name		Dongyuan Yang
Position		Board Chairman
2
Name	Lianghong Wu
Position		Executive Director
3
Name	Boming Hou
Position		Executive Director
4
Name	Wenteng Hou
Position		Executive Director
5
Name	Liling Zheng
Position		Executive Director
6
Name		Boyu Hou
Position		Director
7
Name		Zhaoyuan Zheng
Position		Director
8
Name		Juncheng Guo
Position		Director
9
Name		Yingzhi Zhuang
Position		Director
10
Name		Zhonghe Wu
Position		Director
11
Name		Biying Zheng
Position		Director
12
Name		Kunhuang Zeng
Position		Director
13
Name		Yaoming Zhuang
Position		Director
14
Name		Shen Qiu
Position		Director
15
Name		Mengxing Liao
Position		Director
16
Name		Qingfeng Wu
Position		Supervisor
17
Name		Mingfan Xie
Position		Supervisor
18
Name		Baicang Du
Position		Supervisor
19
Name		Wuming Hou
Position		Supervisor
20
Name		Huilan Wu
Position		Supervisor
21
Name		Yijun Wu
Position		Supervisor
22
Name		Guodong Li
Position		Supervisor
23
Name		Huatang Zheng
Position		Manager
Date of Appointment		2009-9-15

Personnel Structure

Total Employees

About 300 Employees

Operation Information

Offices & Factories

	Headquarters
Add	No.9, Industrial 1st Rd., Linyuan Dist., Kaohsiung City 832, Taiwan (R.O.C.)

Production Information

l Subject is engaged in manufacturing of synthetic rubber products, etc.

l It’s introduced that subject has a factory in Taiwan for production.

l Subject obtained the certification of ISO9001, ISO 9002, ISO14001 and OHSAS 18001, etc.

Purchase Information

l The registered activities of subject:

Business Code	Details
C303010	Non-woven industry
C601020	Manufacturing of paper
C601030	Manufacturing of paper container
C601040	Manufacturing and processing of paper
C801020	Manufacturing of petroleum chemical materials
C801060	Manufacturing of synthetic rubber
C801100	Manufacturing of Synthetic resin and plastic
C804020	Manufacturing of Industrial rubber products
C804990	non-woven fabric other rubber products
C805050	non-woven fabric Industrial plastic products
CK01010	Shoemaking industry
F401010	International trade business
ZZ99999	Besides licensed business, all other business items those are not banned or restricted

l The raw materials for production are purchased from both home and abroad.

Sales Information

l Subject is engaged in sale of synthetic rubber products, etc.

l Subject’s major products include synthetic latex, nitrile rubber buna, thermoplastic rubber and carbon masterbatch, etc

l The products are applied to manufacturing of electronic products, auto spare parts, shoes, medical products and daily supplies, etc.

l Subject has its own brands “NANTEX”, “NANCAR”, “DYNAPRENE”.

l Subject’s sales regions include China, South Korea, Japan, Pakistan, Thailand, Malaysia, other Asian countries, Europe and America, etc.

l Subject’s major foreign customers are A Schulman Inc., and Jab Representaciones SA, etc.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

1. Domestic Purchase

Products	Raw materials
Payment Terms	T/T, Cash, etc

2. Import

Products	Raw materials
Payment Terms	T/T, etc

Sales

1. Domestic Markets

Product	Synthetic rubber latex, etc
Selling Terms	T/T, Cash, etc

2. Export

Product	Synthetic rubber latex, etc
Selling Terms	L/C, T/T, etc

Balance Sheet

Unit: NTD/000

Consolidated	2013-12-31	2012-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	511,538	546,321
Current available-for-sale financial assets
Current available-for-sale financial assets, net	45,542	43,530
Current held-to-maturity financial assets
Current held-to-maturity financial assets, net	688,658	0
Notes receivable, net
Notes receivable, net	187,407	304,294
Accounts receivable, net
Accounts receivable, net	594,445	510,802
Other receivables
Other receivables, net	86,884	94,188
Inventories
Total inventories	1,506,007	1,608,013
Prepayments
Total prepayments	330,674	190,459
Other current assets
Total other current assets	1,510	1,426
Total current assets	3,952,665	3,299,033
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	61,157	9,082
Non-current financial assets at cost
Non-current financial assets at cost, net	83,860	83,860
Investments accounted for using equity method
Investments accounted for using equity method, net	0	0
Property, plant and equipment
Total property, plant and equipment	3,561,693	3,616,649
Intangible assets
Total intangible assets	6,626	8,081
Deferred tax assets	47,496	55,890
Other non-current assets
Prepayments for business facilities	0	4,926
Guarantee deposits paid	1,185	1,469
Long-term prepaid rents	50,545	49,126
Other non-current assets, others
Total other non-current assets, others	107,536	98,832
Total other non-current assets	159,266	154,353
Total non-current assets	3,920,098	3,927,915
Total assets	7,872,763	7,226,948
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	496,424	326,720
Notes payable
Total notes payable	59	0
Accounts payable
Total accounts payable	615,807	352,254
Other payables
Total other payables	273,735	350,555
Current tax liabilities	33,353	4,727
Other current liabilities
Advance receipts
Total advance receipts	20,432	58,613
Long-term liabilities, current portion
Total long-term liabilities, current portion	44,610	62,773
Total other current liabilities	65,042	121,386
Total current liabilities	1,484,420	1,155,642
Non-current liabilities
Long-term borrowings
Total long-term borrowings	69,722	35,075
Deferred tax liabilities
Total deferred tax liabilities	257,211	253,578
Other non-current liabilities
Accrued pension liabilities	173,925	212,414
Guarantee deposits received	110	110
Other non-current liabilities, others	0	65
Total other non-current liabilities	174,035	212,589
Total non-current liabilities	500,968	501,242
Total liabilities	1,985,388	1,656,884
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	3,990,319	3,800,304
Total capital stock	3,990,319	3,800,304
Retained earnings
Legal reserve	702,758	667,211
Special reserve	433,442	433,442
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	575,023	647,917
Total retained earnings	1,711,223	1,748,570
Other equity interest
Exchange differences on translation of foreign financial statements
Total exchange differences on translation of foreign financial statements	74,936	-101,423
Unrealized gains (losses) on available-for-sale financial assets
Total unrealized gains (losses) on available-for-sale financial assets	-36,395	-23,897
Total other equity interest	38,541	-125,320
Total equity attributable to owners of parent	5,740,083	5,423,554
Non-controlling interests	147,292	146,510
Total equity	5,887,375	5,570,064
Equivalent issue shares of advance receipts for ordinary share	0	0
Number of shares in entity held by entity and by its subsidiaries	0	0

Profit and Loss Account

Unit: NTD/000

Consolidated	2013	2012
Operating revenue
Total operating revenue	8,534,153	10,075,175
Operating costs
Total operating costs	7,346,520	8,774,365
Gross profit (loss) from operations	1,187,633	1,300,810
Gross profit (loss) from operations	1,187,633	1,300,810
Operating expenses
Selling expenses
Total selling expenses	407,004	400,387
Administrative expenses
Total administrative expenses	337,948	348,331
Research and development expenses
Total research and development expenses	96,467	134,924
Total operating expenses	841,419	883,642
Net operating income (loss)	346,214	417,168
Non-operating income and expenses
Other income
Total other income	35,554	100,489
Other gains and losses
Other gains and losses, net	23,935	-22,454
Finance costs
Finance costs, net	8,633	12,711
Total non-operating income and expenses	50,856	65,324
Profit (loss) from continuing operations before tax	397,070	482,492
Tax expense (income)
Total tax expense (income)	71,602	96,203
Profit (loss) from continuing operations	325,468	386,289
Profit (loss)	325,468	386,289
Other comprehensive income
Exchange differences on translation	176,359	-101,423
Unrealised gains (losses) on valuation of available-for-sale financial assets	-12,498	7,141
Actuarial gains (losses) on defined benefit plans	21,447	-112,538
Income tax related to components of other comprehensive income	3,449	-16,025
Other comprehensive income, net	181,859	-190,795
Total comprehensive income	507,327	195,494
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	325,038	364,849
Profit (loss), attributable to non-controlling interests	430	21,440
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	506,545	173,891
Comprehensive income, attributable to non-controlling interests	782	21,603
Basic earnings per share
Basic earnings (loss) per share from continuing operations	0.81	0.91
Total basic earnings per share	0.81	0.91
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations	0.81	0.91
Total diluted earnings per share	0.81	0.91

Cash Flows

Unit: NTD/000

Consolidated	2013	2012
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	397,070	482,492
Profit (loss) before tax	397,070	482,492
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	396,610	310,470
Amortization expense	3,329	3,247
Provision (reversal of provision) for bad debt expense	230	-8,140
Interest expense	8,633	12,711
Interest income	-19,284	-5,974
Loss (gain) on disposal of property, plan and equipment	-2,041	-5,050
Loss (gain) on disposal of investments	-353	5,744
Unrealized foreign exchange loss (gain)	9,461	-10,388
Other adjustments to reconcile profit (loss)	-4,612	-10,516
Total adjustments to reconcile profit (loss)	391,973	292,104
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in notes receivable	116,887	74,592
Decrease (increase) in accounts receivable	-83,894	53,584
Decrease (increase) in other receivable	7,304	27,177
Decrease (increase) in inventories	106,168	-578,319
Decrease (increase) in prepayments	-140,215	-93,100
Decrease (increase) in other operating assets	-5,197	-51,379
Total changes in operating assets	1,053	-567,445
Changes in operating liabilities
Increase (decrease) in notes payable	59	0
Increase (decrease) in accounts payable	263,553	-60,020
Increase (decrease) in other payable	-37,115	450
Increase (decrease) in receipts in advance	-38,181	-19,545
Increase (decrease) in accrued pension liabilities	-17,042	12,983
Increase (decrease) in other operating liabilities	-65	65
Total changes in operating liabilities	171,209	-66,067
Total changes in operating assets and liabilities	172,262	-633,512
Total adjustments	564,235	-341,408
Cash inflow (outflow) generated from operations	961,305	141,084
Interest received	3,928	5,974
Interest paid	-8,952	-12,354
Income taxes refund (paid)	-34,398	-186,252
Net cash flows from (used in) operating activities	921,883	-51,548
Cash flows from (used in) investing activities
Acquisition of available-for-sale financial assets	-71,550	0
Proceeds from disposal of available-for-sale financial assets	5,364	21,337
Acquisition of held-to-maturity financial assets	-688,658	0
Acquisition of property, plant and equipment	-312,831	-662,084
Proceeds from disposal of property, plant and equipment	5,122	9,379
Decrease in refundable deposits	284	-966
Acquisition of intangible assets	-1,874	-998
Increase in other non-current assets	-84	24,089
Interest received	15,356	0
Net cash flows from (used in) investing activities	-1,048,871	-609,243
Cash flows from (used in) financing activities
Increase in short-term loans	169,704	326,720
Proceeds from long-term debt	85,000	182,669
Repayments of long-term debt	-68,516	-84,821
Cash dividends paid	-190,016	-542,901
Net cash flows from (used in) financing activities	-3,828	-118,333
Effect of exchange rate changes on cash and cash equivalents	96,033	-88,157
Net increase (decrease) in cash and cash equivalents	-34,783	-867,281
Cash and cash equivalents at beginning of period	546,321	1,413,602
Cash and cash equivalents at end of period	511,538	546,321
Cash and cash equivalents reported in the statement of financial position	511,538	546,321

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

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	Mr. Zhang
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 61.89
UK Pound	1	Rs. 93.92
Euro	1	Rs. 72.00

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	ASH

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.