MIRA INFORM REPORT

Report No. :	326883
Report Date :	29.06.2015

IDENTIFICATION DETAILS

Name :	TECO ELECTRIC & MACHINERY CO., LTD.
Registered Office :	No.156-2, Sung Chiang Road, Taipei, R.O.C.
Country :	Taiwan
Financials (as on) :	31.12.2014
Date of Incorporation :	12.06.1956
Com. Reg. No.:	11332202
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and sales of electrical components and products
No. of Employees :	About 2,618 Employees (As of 2015-3-31)

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 – 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 Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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. However, follow-on components of ECFA, including a signed agreement on trade in services, negotiations on trade in goods, and dispute resolution—have stalled. In early 2014, the government bowed to public demand for 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 under 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 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 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 the Taiwan 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:	Teco Electric & Machinery Co., Ltd.
Supplied Name:	Teco Electric & Machinery Co Ltd.
Trading Address:	5F, No. 19-9, San Chong Road, Nan-Kang, Taipei 115, Taiwan
Supplied Address:	5F No 19-09 San Chong Road Nan Kang
Telephone Number:	+886- 2-2655-3333
Fax Number:	+886- 2-2655-2212

Notes: The exact name and address are as above.

Credit Summary

Credit Opinion:

Business connections are permissible.

Company Identification Details

Registered Name:	Teco Electric & Machinery Co., Ltd.
Registered Address:	No.156-2, Sung Chiang Road, Taipei, R.O.C.
Date of Foundation:	1956-6-12
Registration Number:	11332202
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 30,305,500,000 (USD 969,776,000) (As of 2015.06, 1 NTD = 0.032 USD)
Paid-up Capital:	NTD 20,026,928,860 (USD 640,861,724)
Legal Representatives:	Zhaokai Liu
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sales of electrical components and products, etc.
Staff:	About 2,618 Employees (As of 2015-3-31)
Listed at Stock Exchange:	Yes; stock symbol: 1504
Date of Last Annual Return:	2014-4-17

History

Subject was incorporated on 1956-6-12 with registered number 11332202 as Joint Stock Company in Taiwan.

Subject listed on Taiwan Stock Exchange on 1973-11-5

Corporate Structure

Factories

1
Address:	No.233, Sec. 1, Wubin Rd., Wujie Township, Yilan County, Taiwan (R.O.C.)
Date of Registration:	1996-10-21
Factory Registration Number:	99620112
Factory Manager:	Maoxiong Huang
Status:	In production
Date of Last Annual Return:	2001-10-30
Major Products:	285 household appliances
2
Address:	No.9, Xingren Rd., Tamsui Dist., New Taipei City, Taiwan (R.O.C.)
Date of Foundation:	1969-1-1
Date of Registration:	1973-2-26
Factory Registration Number:	99606634
Factory Manager:	Zhaokai Liu
Status:	In production
Date of Last Annual Return:	2007-7-9
Major Products:	281 machinery for electricity generation, electricity transmission and distribution of electricity 283 cable and wired equipment 289 other electrical equipment
3
Name:	Plant Chung-Li
Address:	No. 11 An-Tung Rd., Tao-Yuan City, Taiwan, R.O.C.
Tel:	+886-3-452-5101
4
Name:	Plant Kuan-Yin I
Address:	No. 1568-1, Chung Shan Rd., Sec. 1, Kuan-Yin, Taoyuan City, Taiwan, R.O.C.
Tel:	+886-3-473-4901
5
Name:	Plant Kuan-Yin II
Address:	No.6 Guojian 1st Rd., Guanyin, Taoyuan City, Taiwan, R.O.C
Tel:	+886-3-483-2258
6
Name:	Plant Hu-Kou
Address:	15, Chung-hwa Rd., Hsinchu Industrial Park, Hsinchu County, Taiwan, R.O.C.
Tel:	+886-3-598-1711

Related Companies

1. TECO Holding USA Inc.

2. TECO Electric & Machinery (Pte) Ltd.

3. TECO Electric Europe Limited

4. TECO Electro Devices Co., Ltd.

5. Tesen Electric & Machinery Co., Ltd.

6. Taian (Subic) Electric Co., Inc.

7. TECO Australia Pty. Ltd.

8. TECO New Zealand Ltd.

9. Fujian TECO Precision Co., Ltd.

10. Teco Appliance (HK) Co., Ltd.

Note: It is introduced that subject has many members covering all over the world, we listed 10 member as subject’s related companies for references.

Shareholders

Major Shareholders

Name	Subscription Shares
Dong He International Investment Co., Ltd (Liberal Translation)	2,240,262
Maoxiong Huang	18,486,633
Bozhi Huang	21,614,831
Chengzong Huang	15,279,849
Kabushiki-gaisha Yasukawa Denki	29,541,089
Guangyuan Enterprise Co., Ltd (Liberal Translation)	22,033,919
Dong Guang Investment Co., Ltd (Liberal Translation)	30,341,364
Xiansheng Guo	9,126,238
Lien Chang Electronic Enterprise Co., Ltd.	4,173,000
Merle Co., Ltd.	5,000,893
Creative Sensor Inc.	10,000,000

Shareholder Information:

1
Name:	Dong He International Investment Co., Ltd (Liberal Translation)
Date of Foundation:	1997-10-24
Registration Number:	16170894
2
Name:	Kabushiki-gaisha Yasukawa Denki
3
Name:	Guangyuan Enterprise Co., Ltd (Liberal Translation)
Date of Foundation:	1978-3-21
Registration Number:	30852863
4
Name:	Dong Guang Investment Co., Ltd (Liberal Translation)
Date of Foundation:	1985-2-13
Registration Number:	09468998
5
Name:	Lien Chang Electronic Enterprise Co., Ltd.
Date of Foundation:	1968-12-23
Registration Number:	35568331

Management Information

Core Management

Directors

1
Name		Zhaokai Liu
Position		Board Chairman
2
Name	Maoxiong Huang
Position		Executive Director
3
Name	Bozhi Huang
Position		Executive Director
4
Name	Chengzong Huang
Position		Executive Director
5
Name	Tianzhi Chen
Position		Executive Director/ Independent Director
6
Name		Jinjian Chen
Position		Independent Director
7
Name	Jingxiong Wu
Position		Independent Director
8
Name	Boxing Shan
Position		Independent Director
9
Name	Shijian Yang
Position		Director
10
Name	Chunzhi Qiu
Position		Director
11
Name		Hongxiang Lin
Position		Director
12
Name	Xiansheng Guo
Position		Director
13
Name	Zhensan Qian
Position		Director
14
Name	Yongxiang Zhang
Position		Director
15
Name	Yuren Huang
Position		Director
16
Name		Shengquan Lin
Position		Manager
Date of Appointment		2000-7-1
17
Name	Chunzhi Qiu
Position		Manager
Date of Appointment		2000-12-4
18
Name	Zhaozhi Lian
Position		Manager
Date of Appointment		2001-8-1
19
Name	Hongxiang Lin
Position		Manager
Date of Appointment		1998-8-21
20
Name	Yuguang Wang
Position		Manager
Date of Appointment		2003-10-1
21
Name	Shijian Jiang
Position		Manager
Date of Appointment		2011-12-15
5
Name	Qingliang Yang
Position		Manager
Date of Appointment		2013-3-26

Personnel Structure

Total Employees

About 2,618 Employees (As of 2015-3-31)

Operation Information

Offices & Factories

	Headquarters
Add	5F, No. 19-9, San Chong Road, Nan-Kang, Taipei 115, Taiwan

Production Information

l Subject is engaged in manufacturing of electrical components and products, etc.

l Subject has factories in Taiwan for production.

l Subject obtained the certification of IS 9001, ISO 9002 and ISO14001.

Purchase Information

l The registered activities of subject:

Business Code	Details
C805050	Manufacturing of industrial plasthetics.
C805070	Manufacturing of reinforced plastic products.
CA01030	Iron or steel foundry industry.
CA01050	Second processing of steel.
CA02010	Manufacturing of metal structure and construction components.
CB01010	Manufacturing of machinery and equipment.
CB01020	Manufacturing of office equipment.
CB01030	Manufacturing of pollution-prevention equipment.
CB01071	Manufacturing of refrigerating and air conditioning equipment.
CC01010	Manufacturing of machinery for electricity generation, electricity transmission and distribution of electricity.
CC01030	Manufacturing of electrical appliances and audio visual electronic products.
CC01060	Manufacturing of wired telecommunication equipment.
CC01070	Manufacturing of wireless telecommunication equipment.
CC01080	Manufacturing of electronic components.
CC01110	Manufacturing of computer and related equipment.
CD01010	Manufacturing of vessel and components.
CD01020	Manufacturing of railway vehicles and components.
CD01030	Manufacturing of vehicles and components.
CD01040	Manufacturing of haulage motor and components.
CD01060	Manufacturing of aircraft and components.
CE01010	Manufacturing of general instrument.
CE01030	Manufacturing of optical instrument.
E501011	Installing of water pipe.
E502010	Installing of fuel line.
E599010	Piping engineering industry.
E601010	Installing of electrical appliances.
E601020	Setup of electrical appliances.
E602011	Refrigerating and air-conditioning engineering industry.
E603010	Installing of electrical cables.
E603040	Installing of fire safety equipment.
E603050	Automatic control equipment engineering industry.
E603080	Installing of traffic sign industry.
E603090	Installing of lighting equipment.
E604010	Installing of machinery.
E605010	Installing of computer equipment.
F106010	Wholesales of hardware.
F106030	Wholesales of molds.
F108031	Wholesales of medical devices.
F114080	Wholesales of railway vehicles and components.
F117010	Wholesales of fire safety equipment.
F119010	Wholesales of electronic materials.
F206010	Retails of hardware.
F206030	Retails of molds.
F206040	Retails of water equipment.
F208031	Retails of medical devices.
F213040	Retails of precise instrument.
F218010	Retails of information software.
F401010	International trading business.
F501060	Restaurant industry.
G801010	Storage industry.
H701010	Rents and sales of resident and building.
I103060	Management consultant industry.
I301010	Services of information software.
I301020	Services of handling with files.
I301030	Services of supplying electronic information.
IF01010	Checking and testing of fire safety equipment.
IF02010	Testing and maintaining of electrical equipment.
JE01010	Renting industry.
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

l Subject purchases its raw materials and components, etc both at home and abroad.

l It is introduced that subject imports some technology from Japan and Germany.

Sales Information

l Subject is engaged in sale of electrical components and products, etc.

l The major products include motor, air condition, wind turbine, breaker, LED display, air fan, dehumidifier, electric radiator, cabinet freezer, washing machine, refrigerator, hair drier, electric cooker and so on.

l Subject’s sales regions include Asia, Europe, America, Australia and etc.

l Subject’s major customers are manufacturers of electrical products, distributors of electrical products and household appliances and etc.

l It is introduced that subject has its own brand named “TECO”.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

1. Domestic Purchase

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

2. Import

Products	Raw materials and components, etc
Payment Terms	L/C, T/T and etc

Sales

1. Domestic Markets

Product	Raw materials and components, etc
Selling Terms	Cash, T/T and etc

2. Export

Product	Raw materials and components, etc
Selling Terms	L/C, T/T and etc

Balance Sheet

Unit: NTD/000

Consolidated	2014-12-31	2013-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	17,206,411	14,908,571
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	318,399	348,455
Current available-for-sale financial assets
Current available-for-sale financial assets, net	1,252,111	984,570
Current bond investment without active market
Current bond investment without active market, net	122,540	106,630
Notes receivable, net
Notes receivable, net	998,510	1,124,336
Notes receivable due from related parties, net
Notes receivable due from related parties, net	99,132	38,865
Accounts receivable, net
Accounts receivable, net	8,333,056	8,695,223
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	585,523	575,626
Construction contracts receivable	844,335	879,132
Other receivables
Other receivables, net	257,896	203,041
Other receivables due from related parties
Other receivables due from related parties, net	627,867	397,370
Inventories
Total inventories	11,555,667	11,193,424
Prepayments
Total prepayments	280,960	369,807
Non-current assets classified as held for sale, net
Non-current assets classified as held for sale, net	0	58,662
Other current assets
Total other current assets	783,890	959,643
Total current assets	43,266,297	40,843,355
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	14,155,901	10,779,025
Investments accounted for using equity method
Investments accounted for using equity method, net	5,232,739	5,019,511
Property, plant and equipment
Total property, plant and equipment	14,738,703	15,132,587
Investment property, net
Investment property, net	2,591,956	2,299,151
Intangible assets
Total intangible assets	174,250	320,236
Deferred tax assets	1,078,738	1,358,641
Other non-current assets
Total other non-current assets	1,533,083	1,137,547
Total non-current assets	39,505,370	36,046,698
Total assets	82,771,667	76,890,053
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	2,522,551	2,916,614
Current financial liabilities at fair value through profit or loss
Total current financial liabilities at fair value through profit or loss	0	1,476
Notes payable
Total notes payable	119,833	352,872
Notes payable to related parties
Total notes payable to related parties	8,850	16,923
Accounts payable
Total accounts payable	7,476,672	7,558,564
Accounts payable to related parties
Total accounts payable to related parties	87,389	79,410
Construction contracts payable	291,341	243,436
Other payables
Total other payables	5,240,958	4,639,317
Current tax liabilities	393,743	510,856
Current provisions
Total current provisions	192,504	274,428
Other current liabilities
Total other current liabilities	1,800,608	3,389,880
Total current liabilities	18,134,449	19,983,776
Non-current liabilities
Bonds payable
Total bonds payable	1,527,600	1,475,700
Long-term borrowings
Total long-term borrowings	5,474,646	4,498,266
Non-current provisions
Total non-current provisions	226,994	165,929
Deferred tax liabilities
Total deferred tax liabilities	1,911,066	1,911,053
Other non-current liabilities
Total other non-current liabilities	2,254,241	2,131,355
Total non-current liabilities	11,394,547	10,182,303
Total liabilities	29,528,996	30,166,079
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	20,026,929	19,646,374
Advance receipts for share capital	0	380,555
Total capital stock	20,026,929	20,026,929
Capital surplus
Capital surplus, additional paid-in capital
Total capital surplus, additional paid-in capital	7,028,330	7,028,330
Capital surplus, treasury share transactions	227,397	227,397
Capital surplus, changes in equity of associates and joint ventures accounted for using equity method	187,765	79,846
Capital surplus, net assets from merger	139,800	139,800
Capital surplus, employee share options	212	212
Capital surplus, share options	0	0
Capital surplus, others	17,048	17,595
Total capital surplus	7,600,552	7,493,180
Retained earnings
Legal reserve	5,005,650	4,629,663
Special reserve	3,737,786	3,737,786
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	9,655,104	8,238,933
Total retained earnings	18,398,540	16,606,382
Other equity interest
Exchange differences on translation of foreign financial statements
Total exchange differences on translation of foreign financial statements	352,932	-312,141
Unrealized gains (losses) on available-for-sale financial assets
Total unrealized gains (losses) on available-for-sale financial assets	3,166,632	-629,353
Total other equity interest	3,519,564	-941,494
Treasury shares	321,563	321,563
Total equity attributable to owners of parent	49,224,022	42,863,434
Non-controlling interests	4,018,649	3,860,540
Total equity	53,242,671	46,723,974
Number of share capital awaiting retirement	0	0
Equivalent issue shares of advance receipts for ordinary share	0	38,055,514
Number of shares in entity held by entity and by its subsidiaries	22,443,022	22,443,022

Profit and Loss Account

Unit: NTD/000

Consolidated	2014	2013
Operating revenue
Total operating revenue	53,820,604	56,618,537
Operating costs
Total operating costs	40,442,637	43,137,921
Gross profit (loss) from operations	13,377,967	13,480,616
Unrealized profit (loss) from sales	10,265	10,329
Realized profit (loss) on from sales	10,329	14,439
Gross profit (loss) from operations	13,378,031	13,484,726
Operating expenses
Selling expenses
Total selling expenses	4,325,062	4,317,858
Administrative expenses
Total administrative expenses	3,052,408	2,994,129
Research and development expenses
Total research and development expenses	1,603,590	1,547,145
Total operating expenses	8,981,060	8,859,132
Net operating income (loss)	4,396,971	4,625,594
Non-operating income and expenses
Other income
Total other income	1,185,176	858,150
Other gains and losses
Other gains and losses, net	141,062	3,532
Finance costs
Finance costs, net	234,712	251,706
Share of profit (loss) of associates and joint ventures accounted for using equity method
Share of profit (loss) of associates and joint ventures accounted for using equity method, net	215,438	167,914
Total non-operating income and expenses	1,306,964	777,890
Profit (loss) from continuing operations before tax	5,703,935	5,403,484
Tax expense (income)
Total tax expense (income)	1,297,704	1,226,228
Profit (loss) from continuing operations	4,406,231	4,177,256
Profit (loss)	4,406,231	4,177,256
Other comprehensive income
Exchange differences on translation	753,275	71,229
Unrealised gains (losses) on valuation of available-for-sale financial assets	3,984,367	692,905
Actuarial gains (losses) on defined benefit plans	-75,540	4,375
Share of other comprehensive income of associates and joint ventures accounted for using equity method
Total share of other comprehensive income of associates and joint ventures accounted for using equity method	-6,350	8,998
Income tax related to components of other comprehensive income	62,555	3,472
Other comprehensive income, net	4,593,197	774,035
Total comprehensive income	8,999,428	4,951,291
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	4,066,924	3,759,872
Profit (loss), attributable to non-controlling interests	339,307	417,384
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	8,456,178	4,464,419
Comprehensive income, attributable to non-controlling interests	543,250	486,872
Basic earnings per share
Basic earnings (loss) per share from continuing operations	2.06	2.01
Total basic earnings per share	2.06	2.01
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations	2.05	2
Total diluted earnings per share	2.05	2

Cash Flows

Unit: NTD/000

Consolidated	2014	2013
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	5,703,935	5,403,484
Profit (loss) before tax	5,703,935	5,403,484
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	1,349,115	1,442,378
Provision (reversal of provision) for bad debt expense	5,644	-5,337
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	-70,336	-69,790
Interest expense	234,712	251,706
Interest income	-151,561	-137,926
Dividend income	-392,277	-313,275
Effect of exchange rate changes of bonds payable	51,900	18,600
Share of loss (profit) of associates and joint ventures accounted for using equity method	-215,438	-167,914
Loss (gain) on disposal of property, plan and equipment	-646,332	-60,187
Loss (gain) on disposal of investments	-139,044	-308,907
Impairment loss on non-financial assets	260,762	38,850
Other adjustments to reconcile profit (loss)	-156,281	171,276
Total adjustments to reconcile profit (loss)	130,864	859,474
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	99,229	-127,162
Decrease (increase) in notes receivable	125,556	236,440
Decrease (increase) in notes receivable due from related parties	-60,267	-31,737
Decrease (increase) in accounts receivable	378,193	-908,720
Decrease (increase) in accounts receivable due from related parties	-9,897	201,004
Decrease (increase) in construction contracts receivable	34,797	186,711
Decrease (increase) in other receivable	-54,855	41,253
Decrease (increase) in other receivable due from related parties	-47,497	-16,220
Decrease (increase) in inventories	-205,962	-217,862
Decrease (increase) in prepayments	88,847	-43,494
Decrease (increase) in other current assets	78,331	-177,725
Total changes in operating assets	426,475	-857,512
Changes in operating liabilities
Increase (decrease) in notes payable	-233,039	-14,916
Increase (decrease) in notes payable to related parties	-8,073	15,743
Increase (decrease) in accounts payable	-81,892	45,827
Increase (decrease) in accounts payable to related parties	7,979	-127,301
Increase (decrease) in construction contracts receivable	47,905	-70,274
Increase (decrease) in other payable	206,201	344,859
Increase (decrease) in provisions	-20,859	247,633
Increase (decrease) in other current liabilities	-865,868	1,253,160
Increase (decrease) in other operating liabilities	193,552	-551,623
Total changes in operating liabilities	-754,094	1,143,108
Total changes in operating assets and liabilities	-327,619	285,596
Total adjustments	-196,755	1,145,070
Cash inflow (outflow) generated from operations	5,507,180	6,548,554
Interest received	151,561	137,926
Dividends received	558,510	543,221
Interest paid	-235,668	-252,668
Income taxes refund (paid)	-1,197,456	-992,009
Net cash flows from (used in) operating activities	4,784,127	5,985,024
Cash flows from (used in) investing activities
Acquisition of available-for-sale financial assets	-371,327	-1,288,137
Proceeds from disposal of available-for-sale financial assets	950,148	1,666,730
Acquisition of bond investments without active market	-15,910	174,300
Acquisition of investments accounted for using equity method	-86,242	-164,200
Acquisition of property, plant and equipment	-1,935,081	-797,726
Proceeds from disposal of property, plant and equipment	1,219,435	142,695
Increase in other receivables due from related parties	-183,000	0
Acquisition of intangible assets	-50,266	-33,590
Net cash inflows from business combination	0	46,290
Decrease in other non-current assets	-401,211	132,319
Other investing activities	103,097	-23,609
Net cash flows from (used in) investing activities	-770,357	-144,928
Cash flows from (used in) financing activities
Decrease in short-term loans	-394,063	-128,672
Proceeds from issuing bonds	0	1,457,100
Proceeds from long-term debt	1,553,880	2,000,000
Repayments of long-term debt	-577,500	-5,496,288
Cash dividends paid	-2,202,962	-1,922,095
Exercise of employee share options	0	134,144
Net cash flows from (used in) financing activities	-1,620,645	-3,955,811
Effect of exchange rate changes on cash and cash equivalents	-95,285	-154,489
Net increase (decrease) in cash and cash equivalents	2,297,840	1,729,796
Cash and cash equivalents at beginning of period	14,908,571	13,178,775
Cash and cash equivalents at end of period	17,206,411	14,908,571
Cash and cash equivalents reported in the statement of financial position	17,206,411	14,908,571

Note: Subject did not submit the latest independent financial information to the official registry. We only provide the above consolidated financial information of the subject for your 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

1
Trial Number:	2009, Beijian, 1384
Date of Trial:	2009-2-24
Reason:	Return for liquidated damages
Claimant:	Teco Electric & Machinery Co., Ltd.
Defendant:	Ministry of Economic Affairs, R.O.C.
2
Trial Number:	2009, Beijian, 3003
Date of Trial:	2009-3-31
Reason:	Payments for goods
Claimant:	Teco Electric & Machinery Co., Ltd.
Defendant:	Jing Hui Enterprise Limited (Liberal Translation)
3
Trial Number:	2009, Beijian, 1384
Date of Trial:	2009-4-6
Reason:	Return for liquidated damages
Claimant:	Teco Electric & Machinery Co., Ltd.
Defendant:	Ministry of Economic Affairs, R.O.C.
4
Trial Number:	2009, Beixiao, 2910
Date of Trial:	2009-10-21
Reason:	Payments for goods
Claimant:	Teco Electric & Machinery Co., Ltd.
Defendant:	Not stated
5
Trial Number:	2009, Beixiao, 29902
Date of Trial:	2009-10-27
Reason:	Payments for goods
Claimant:	Teco Electric & Machinery Co., Ltd.
Defendant:	Chang Guan Air-Condition Electromechanical Engineering Limited (Liberal Translation)
6
Trial Number:	2009, Beixiao, 2910
Date of Trial:	2009-12-24
Reason:	Payments for goods
Claimant:	Teco Electric & Machinery Co., Ltd.
Defendant:	Hu Ling Hai Ji Qing Liang Engineering Company (Liberal Translation)
7
Trial Number:	2012, Beijianxiao, 8
Date of Trial:	2012-6-20
Reason:	Payments for installation cost and etc
Claimant:	Teco Electric & Machinery Co., Ltd.
Defendant:	Xin Da Environmental Technology Co., Ltd (Liberal Translation)
8
Trial Number:	2013, Beilaojian, 37
Date of Trial:	2013-9-9
Reason:	Discharge of contract
Claimant:	Teco Electric & Machinery Co., Ltd.
Defendant:	Jili Chen

Special Note

Interview Details

Department

Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 63.60
UK Pound	1	Rs. 100.09
Euro	1	Rs. 71.23

INFORMATION DETAILS

Analysis Done by :	KRN
Report Prepared by :	DPT

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.