MIRA INFORM REPORT

Report No. :	491377
Report Date :	13.02.2018

IDENTIFICATION DETAILS

Name :	LI PENG ENTERPRISE CO., LTD.
Registered Office :	6F, No.162 Sung Chiang Rd., Taipei R.O.C.
Country :	Taiwan
Financials (as on) :	31.12.2016
Date of Incorporation :	20.08.1975
Com. Reg. No.:	33955322
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Sale of Nylon Wire.
No. of Employees :	Not Available

RATING & COMMENTS

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

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Good
Payment Behaviour :	No Complaints
Litigation :	Exists

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
Taiwan	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

TAIWAN - ECONOMIC OVERVIEW

Taiwan has a dynamic capitalist economy that is driven largely by industrial manufacturing, and especially exports of electronics, machinery, and petrochemicals. This heavy dependence on exports exposes the economy to fluctuations in global demand. Taiwan's diplomatic isolation, low birth rate, rapidly aging population, and increasing competition from China and other Asia Pacific markets are other major long-term challenges.

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 of that year, 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 uncertain. President TSAI since taking office in May 2016 has promoted greater economic integration with South and Southeast Asia through the New Southbound Policy initiative and has also expressed interest in Taiwan joining the Trans-Pacific Partnership as well as bilateral trade deals with partners such as the US.

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 with many economies, including China and the US, 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 and has also secured greater market access for its investors on 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 renminbi (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 opportunities for Taiwan’s economy but also pose challenges as political differences remain unresolved and China’s economic growth is slowing. Domestic economic issues loomed large in public debate ahead of the January 2016 presidential and legislative elections, including concerns about stagnant wages, high housing prices, youth unemployment, job security, and financial security in retirement.

Source : CIA

Contact Points

Company Name:	Li Peng Enterprise Co., Ltd.
Supplied Name:	LI PENG ENTERPRISE CO LTD.
Trading Address:	6F, No.162 Sung Chiang Rd., Taipei Taiwan R.O.C.
Supplied Address:	6F NO. 162, SUNG CHIANG RD, TAIPEI R.O.C
Telephone Number:	+886-2-2100-1188 +886-2-2100-2188
Fax Number:	+886-2-2100-2688
E-mail:	lp_sales@lipeng.com.tw

Notes: The exact name and address are as above.

Company Identification Details

Registered Name:	Li Peng Enterprise Co., Ltd.
Registered Address:	6F, No.162 Sung Chiang Rd., Taipei Taiwan R.O.C.
Date of Foundation:	1975-8-20
Registration Number:	33955322
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 12,000,000,000 (USD 408,000,000) (As of 2018.2, 1 NTD = 0.034 USD)
Paid-up Capital:	NTD 9,144,872,420 (USD 310,925,662.28)
Legal Representatives:	Shaoyi Guo
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale of nylon wire..
Staff:	N/A
Listed at Stock Exchange:	Yes; Stock Code: 1447
Date of Last Annual Return:	2018-1-8

Note: Subject declined to disclose the number of staff, and from other source we cannot obtain the related information, either.

History

Subject was incorporated on 1975-8-20 with registered number 33955322 as Joint Stock Company in Taiwan.

Subject listed on Taiwan Stock Exchange on 1992-1-28.

Corporate Structure

Factories

1
Name:	Yangmei Factory
Address:	No. 339, Xinrong Rd., Xinrong Li, Yangmei Dist., Taoyuan City, Taiwan
Date of Foundation:	In Production
Date of Registration:	1969-1-1
Factory Registration Number:	1976-8-14
Factory Manager:	Chunfa Wang
Status:	In Production
Date of Last Annual Return:	2014-10-31
Major Products:	112 weaving 114 dyeing and finishing
2
Name:	Changhua the 2nd Factory
Address:	No. 13, Industrial Rd., Houliao Village, Fangyuan Town, Changhua County, Taiwan
Date of Foundation:	1996-5-1
Date of Registration:	1996-8-7
Factory Registration Number:	99645356
Factory Manager:	Minxiong Tong
Status:	In Production
Date of Last Annual Return:	2002-4-19
Major Products:	111 spinning
3
Name:	Changhua Textile Factory
Address:	No. 16, Industrial Rd., Houliao Village, Fangyuan Town, Changhua County, Taiwan
Date of Foundation:	1991-12-24
Date of Registration:	1993-6-23
Factory Registration Number:	99645357
Factory Manager:	Wenhong Zhan
Status:	In Production
Date of Last Annual Return:	2015-3-16
Major Products:	112 textiles
4
Name:	Changhua Nylon Factory
Address:	No. 33, Industrial Rd., Houliao Village, Fangyuan Town, Changhua County, Taiwan
Date of Foundation:	1997-1-6
Date of Registration:	1999-6-5
Factory Registration Number:	99645362
Factory Manager:	Binghuang Chen
Status:	In Production
Date of Last Annual Return:	2015-10-21
Major Products:	111 spinning 184 Synthetic resin, plastic and rubber

Shareholders

Major Shareholders

Name	Subscription Shares
Shaoyi Guo
9,213,483
Jigang Guo	400,644
Binghuang Chen	53,343
Lealea Enterprise Co., Ltd.	145,353,853
Limao Investment Co., Ltd. (Literal Translation)	34,177,995
Shunyu Investment Co., Ltd. (Literal Translation)	11,991,397

Shareholder Information:

1
Registered Name:	Lealea Enterprise Co., Ltd.
Registered Address:	11F, No. 162, Songjiang Rd., Zhongshan Dist., Taipei City, Taiwan
Date of Foundation:	1979-1-15
Registration Number:	07663290
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 12,000,000,000
Paid-up Capital:	NTD 9,573,029,420
Legal Representatives:	Shaoyi Guo
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2018-1-5
2
Registered Name:	Limao Investment Co., Ltd. (Literal Translation)
Registered Address:	11F, No. 162, Songjiang Rd., Zhongshan Dist., Taipei City, Taiwan
Date of Foundation:	1993-3-30
Registration Number:	84253268
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 756,000,000
Paid-up Capital:	NTD 756,000,000
Legal Representatives:	Xiuling Lin
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2016-5-6
3
Registered Name:	Shunyu Investment Co., Ltd. (Literal Translation)
Registered Address:	11F, No. 162, Songjiang Rd., Zhongshan Dist., Taipei City, Taiwan
Date of Foundation:	2009-4-17
Registration Number:	24340269
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 50,000,000
Paid-up Capital:	NTD 50,000,000
Legal Representatives:	Yongtian Cao
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2017-7-10

Management Information

Core Management

Directors

1
Name	Shaoyi Guo
Position	Chairman of the Board & Manager
Date of Appointment for Manager	2014-3-1
2
Name	Jigang Guo
Position	Director
3
Name	Binghuang Chen
Position	Director
4
Name	Zhiyuan Xie
Position	Director
5
Name	Shuzhen Guo
Position	Director
6
Name	Kezhong Guo
Position	Director
7
Name	Daoming Li
Position	Independent Director
8
Name	Qichang Lu
Position	Independent Director
9
Name	Yulun Ou
Position	Independent Director

Operation Information

Offices & Factories

	Headquarters
Add	6F, No.162 Sung Chiang Rd., Taipei Taiwan R.O.C.

Production Information

Subject is engaged in manufacturing of nylon wire, etc.

Subject has factories in Taiwan for production.

Subject obtained the certification of ISO9001, ISO14001 and OSHAS18001.

Purchase Information

The registered activities of subject:

Business Code	Details
--	Platemaking, printing, processing, manufacturing and sale of kinds of printing paper, coloring paper, paper products, printing plate.
--	Manufacturing and trading of artificial fibrous materials, synthetic fibre materials.
--	Manufacturing and trading of plastic raw materials
--	Buying and selling of chemical industrial products
--	Dyeing and finishing, manufacturing and trading of kinds of man-made and natural fabrics, calico, cotton cloth, silk, etc.
--	Manufacturing, processing and trading of natural cotton, ramie cotton, silk, wool, synthesizing fibers, chemical fibers.
--	Import and export of related raw materials and finished products.
--	Import and export of daily supplies, departments, groceries, toys, sports products, etc.
--	Commissioned construction manufacturer to develop the industrial zone approved by the industrial competent authority
--	Leasing and sale business of commission builder, commercial building and public housing.
--	All kinds of construction machinery business
--	Rental and vehicle storage of sports equipment and bowling alley, skating rink, golf driving range, kursaal, swimming pool, tennis court and riding.
--	Operating of supermarkets
--	Operating the cultivation of crops and poultry
--	Buying and selling of soybean, corn and soybean flour.
--	Buying and selling of kinds of auto parts and accessories.
--	Automobile assembly repair and maintenance business.
--	Manufacturing, processing and trading of rubber products.
--	Operate the steam and electrical symbiosis plant (the remaining electricity is sold to the local electrical industry)
--	Agent the biding, pricing and disturbing of the products from home and abroad.
I301010	Information software services.
I301030	Electronic information supply services
IZ99990	Other industrial and commercial services (bio-pharmaceutical R&D)

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

Sales Information

· Subject is engaged in sale of nylon wire, etc.

· The major products nylon wire, nylon granule, nylon functional fiber and kinds of fabric, etc.

· Subject’s sales regions cover Taiwan, Indonesia, Vietnam, India, Southeast Asia, Europe, etc.

· Subject’s major customers are manufacturers of textiles, garments, home decoration products, etc.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

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

Import

Products	Raw materials
Payment Terms	L/C, T/T, etc.

Sales

Domestic Markets

Product	Nylon wire, etc.
Selling Terms	T/T, Cash, etc.

Export

Product	Nylon wire, etc.
Selling Terms	L/C, T/T, etc.

Balance Sheet

Unit: NTD/000

Consolidated	2016-12-31	2015-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	1,927,185	2,896,269
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	134,951	147,648
Current available-for-sale financial assets
Current available-for-sale financial assets, net	843,527	420,091
Notes receivable, net
Notes receivable, net	111,324	214,757
Notes receivable due from related parties, net
Notes receivable due from related parties, net	35,196	65
Accounts receivable, net
Accounts receivable, net	2,032,392	1,902,868
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	43,165	36,909
Inventories
Total inventories	2,305,630	3,108,952
Prepayments
Total prepayments	45,823	46,486
Other current assets
Total other current assets	4,468,662	2,483,144
Total current assets	11,947,855	11,257,189
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	1,437,241	1,643,464
Non-current financial assets at cost
Non-current financial assets at cost, net	21,237	21,237
Investments accounted for using equity method
Investments accounted for using equity method, net	1,704,758	1,758,472
Property, plant and equipment
Total property, plant and equipment	7,006,323	5,996,679
Intangible assets
Total intangible assets	14,033	9,799
Deferred tax assets	90,319	83,457
Other non-current assets
Prepayments for business facilities	217,689	794,353
Other non-current assets, others
Total other non-current assets, others	14,944	54,069
Total other non-current assets	232,633	848,422
Total non-current assets	10,506,544	10,361,530
Total assets	22,454,399	21,618,719
Liabilities and equity
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	4,479,000	4,447,000
Short-term notes and bills payable
Total short-term notes and bills payable	1,642,000	2,282,000
Current financial liabilities at fair value through profit or loss
Total current financial liabilities at fair value through profit or loss	0	1,214
Notes payable
Total notes payable	174,810	82,906
Notes payable to related parties
Total notes payable to related parties	89,861	18,179
Accounts payable
Total accounts payable	1,080,320	1,065,872
Accounts payable to related parties
Total accounts payable to related parties	88,078	65,325
Other payables
Total other payables	530,102	492,195
Other payables to related parties	251,000	390,532
Current tax liabilities	7,066	17,484
Current provisions
Total current provisions	12,542	14,591
Other current liabilities
Long-term liabilities, current portion
Total long-term liabilities, current portion	396,250	184,167
Other current liabilities, others	297,099	88,482
Total other current liabilities	693,349	272,649
Total current liabilities	9,048,128	9,149,947
Non-current liabilities
Long-term borrowings
Long-term bank loans	2,598,222	1,321,472
Total long-term borrowings	2,598,222	1,321,472
Deferred tax liabilities
Total deferred tax liabilities	166,484	154,445
Other non-current liabilities
Total other non-current liabilities	273,056	288,291
Total non-current liabilities	3,037,762	1,764,208
Total liabilities	12,085,890	10,914,155
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	9,144,872	9,144,872
Total capital stock	9,144,872	9,144,872
Capital surplus
Total capital surplus	104,051	81,899
Retained earnings
Legal reserve	509,332	507,233
Special reserve	590,181	499,724
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	271,432	475,919
Total retained earnings	1,370,945	1,482,876
Other equity interest
Total other equity interest	-539,671	-360,511
Treasury shares	357,738	357,738
Total equity attributable to owners of parent	9,722,459	9,991,398
Non-controlling interests	646,050	713,166
Total equity	10,368,509	10,704,564
Total liabilities and equity	22,454,399	21,618,719
Equivalent issue shares of advance receipts for ordinary share	0	0
Number of shares in entity held by entity and by its subsidiaries	82,948,106	82,948,106

Profit and Loss Account

Unit: NTD/000

Consolidated	2016	2015
Operating revenue
Total operating revenue	14,282,759	16,681,998
Operating costs
Total operating costs	13,625,967	16,294,463
Gross profit (loss) from operations	656,792	387,535
Gross profit (loss) from operations	656,792	387,535
Operating expenses
Selling expenses
Total selling expenses	369,775	380,245
Administrative expenses
Total administrative expenses	185,057	161,942
Research and development expenses
Total research and development expenses	110,693	87,651
Total operating expenses	665,525	629,838
Net operating income (loss)	-8,733	-242,303
Non-operating income and expenses
Other income
Total other income	203,875	167,075
Other gains and losses
Other gains and losses, net	-177,463	171,994
Finance costs
Finance costs, net	92,854	67,719
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	29,835	21,532
Total non-operating income and expenses	-36,607	292,882
Profit (loss) from continuing operations before tax	-45,340	50,579
Tax expense (income)
Total tax expense (income)	16,484	4,389
Profit (loss) from continuing operations	-61,824	46,190
Profit (loss)	-61,824	46,190
Other comprehensive income
Components of other comprehensive income that will not be reclassified to profit or loss
Gains (losses) on remeasurements of defined benefit plans	-23,553	-31,431
Components of other comprehensive income that will not be reclassified to profit or loss	-23,553	-31,431
Components of other comprehensive income that will be reclassified to profit or loss
Exchange differences on translation	-12,957	-3,923
Unrealised gains (losses) on valuation of available-for-sale financial assets	-210,719	50,773
Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss
Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss	-16,377	-124,159
Components of other comprehensive income that will be reclassified to profit or loss	-240,053	-77,309
Other comprehensive income, net	-263,606	-108,740
Total comprehensive income	-325,430	-62,550
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	-85,780	20,989
Profit (loss), attributable to non-controlling interests	23,956	25,201
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	-291,091	-101,515
Comprehensive income, attributable to non-controlling interests	-34,339	38,965

Cash Flows

Unit: NTD/000

Consolidated	2016	2015
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	-45,340	50,579
Profit (loss) before tax	-45,340	50,579
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	647,383	564,047
Amortization expense	7,904	9,191
Provision (reversal of provision) for bad debt expense	-1,106	-6,057
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	-7,847	34,103
Interest expense	92,854	67,719
Interest income	-73,436	-42,195
Dividend income	-90,003	-91,096
Share of loss (profit) of associates and joint ventures accounted for using equity method	-29,835	-21,532
Loss (gain) on disposal of property, plan and equipment	7,361	5,775
Loss (gain) on disposal of investments	-79	283
Impairment loss on financial assets	0	14,858
Impairment loss on non-financial assets	-72,542	-131,493
Unrealized foreign exchange loss (gain)	-35,193	55,697
Other adjustments to reconcile profit (loss)	63,689	64,864
Total adjustments to reconcile profit (loss)	509,150	524,164
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	11,510	101,036
Decrease (increase) in notes receivable	68,302	74,922
Decrease (increase) in accounts receivable	-123,125	1,145,379
Decrease (increase) in inventories	868,709	247,845
Decrease (increase) in prepayments	-72,583	-65,471
Decrease (increase) in other current assets	15,561	-26,449
Decrease (increase) in other financial assets	-1,896,470	-2,273,918
Decrease (increase) in other operating assets	533	665
Total changes in operating assets	-1,127,563	-795,991
Changes in operating liabilities
Increase (decrease) in notes payable	163,586	-14,123
Increase (decrease) in accounts payable	32,562	65,967
Increase (decrease) in other payable	72,425	21,423
Increase (decrease) in provisions	-2,049	2,830
Increase (decrease) in other current liabilities	209,733	-59,440
Increase (decrease) in net defined benefit liability	-38,954	-83
Total changes in operating liabilities	437,303	16,574
Total changes in operating assets and liabilities	-690,260	-779,417
Total adjustments	-181,110	-255,253
Cash inflow (outflow) generated from operations	-226,450	-204,674
Interest received	66,373	38,330
Dividends received	179,256	133,764
Interest paid	-91,242	-66,650
Income taxes refund (paid)	-26,111	-96,343
Net cash flows from (used in) operating activities	-98,174	-195,573
Cash flows from (used in) investing activities
Acquisition of available-for-sale financial assets	-451,939	-439,214
Proceeds from capital reduction of financial assets at cost	0	631
Acquisition of property, plant and equipment	-1,114,021	-1,514,360
Proceeds from disposal of property, plant and equipment	3,745	1,382
Decrease in refundable deposits	41	39
Acquisition of intangible assets	-12,138	-2,755
Net cash flows from (used in) investing activities	-1,574,312	-1,954,277
Cash flows from (used in) financing activities
Increase in short-term loans	32,000	1,900,000
Increase in short-term notes and bills payable	-640,000	1,403,000
Proceeds from long-term debt	1,762,500	1,000,000
Repayments of long-term debt	-273,667	-138,944
Increase in guarantee deposits received	166	278
Increase in other payables to related parties	-139,214	127,141
Change in non-controlling interests	-32,777	0
Net cash flows from (used in) financing activities	709,008	4,291,475
Effect of exchange rate changes on cash and cash equivalents	-5,606	-6,542
Net increase (decrease) in cash and cash equivalents	-969,084	2,135,083
Cash and cash equivalents at beginning of period	2,896,269	761,186
Cash and cash equivalents at end of period	1,927,185	2,896,269
Cash and cash equivalents reported in the statement of financial position	1,927,185	2,896,269

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

Mortgages

1
Case Type:	Chattel Mortgage
Registered Number:	114260
Debtor Name:	Li Peng Enterprise Co., Ltd.
Registry:	MOEA Central Office
Name of Mortgagee:	Bank of Taiwan Songjiang Branch
Date of Registration:	2017-2-2
Amount of Secure Claims:	NTD 352,800,000
Type of Mortgage:	Machinery equipment and tools
2
Case Type:	Chattel Mortgage
Registered Number:	114198
Debtor Name:	Li Peng Enterprise Co., Ltd.
Registry:	MOEA Central Office
Name of Mortgagee:	Bank of Taiwan Songjiang Branch
Date of Registration:	2017-1-12
Amount of Secure Claims:	NTD 1,184,400,000
Type of Mortgage:	Machinery equipment and tools

Lawsuits

1
Trial Number:	2004, beilaojian, 72
Date of Trial:	2004-8-12
Reason:	Payment of wages, etc.
Claimant:	Not Stated
Defendant:	Li Peng Enterprise Co., Ltd.
2
Trial Number:	2003, beijian, 26567
Date of Trial:	2004-3-2
Reason:	Payment of notes
Claimant:	Li Peng Enterprise Co., Ltd.
Defendant:	Not Stated
3
Trial Number:	2003, beilaojian, 157
Date of Trial:	2004-1-13
Reason:	Payment of severance pay, etc.
Claimant:	Not Stated
Defendant:	Li Peng Enterprise Co., Ltd.

Special Note

Interview Details

Department

Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.28
UK Pound	1	INR 89.02
Euro	1	INR 78.93
TWD	1	INR 2.19

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

INFORMATION DETAILS

Analysis Done by :	VIV
Report Prepared by :	NIT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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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.