MIRA INFORM REPORT

Report No. :	485491
Report Date :	16.01.2018

IDENTIFICATION DETAILS

Name :	MOTECH INDUSTRIES INC
Registered Office :	6/F, No.248, Sec.3, Pei-Shen Rd., Shenkeng Dist., New Taipei City
Country :	Taiwan
Financials (as on) :	31.12.2016
Date of Incorporation :	03.06.1981
Com. Reg. No.:	20889546
Legal Form :	Joint Stock Company
Line of Business :	Subject is engaged in manufacturing of solar cells and PV modules.
No. of Employees :	4,700

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 :	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

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

Company name and address

Company Name:	Motech Industries Inc.
Supplied Name:	MOTECH INDUSTRIES INC
Trading Address:	6/F, No.248, Sec.3, Pei-Shen Rd., Shenkeng Dist., New Taipei City, Taiwan (R.O.C.)
Supplied Address:	TAOYUAN BRANCH, No.1560, SECTION 1, ZHONGSHAN ROAD, GUANYIN DIST， TAOYUAN CITY 32852 (R.O.C)
Telephone Number:	+886-2-2662-5093
Fax Number:	+886-2-2662-5097
E-mail:	info@motech.com.tw
Website:	www.motech.com.cn

Notes: The exact name and address are as above. The supplied address and telephone number (+886-3-4738199) belong to subject’s Taoyuan Branch.

Company Identification Details

Registered Name:	Motech Industries Inc.
Registered Address:	6/F, No.248, Sec.3, Pei-Shen Rd., Shenkeng Dist., New Taipei City, Taiwan (R.O.C.)
Date of Foundation:	1981-6-3
Registration Number:	20889546
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 6,000,000,000 (USD 204,000,000) (As of 2018.1, 1 NTD = 0.034 USD)
Paid-up Capital:	NTD 5,397,909,080 (USD 183,528,908.72)
Legal Representatives:	Bingheng Zhang
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale of solar cells and photovoltaic modules, etc.
Staff:	About 4,700 employees (As of 2017.3)
Listed at Stock Exchange:	Yes; Stock Code: 6244
Date of Last Annual Return:	2017-11-29

History

Subject was incorporated on 1981-6-3 with registered number 20889546 as Joint Stock Company in Taiwan.

Subject listed on Taiwan Over-The-Counter Securities Exchange on 2003-5-15.

Corporate Structure

Factories

1
Address:	6/F, No.248; 5/F, No.250; 5/F, No.252 Sec.3, Pei-Shen Rd., Shenkeng Dist., New Taipei City, Taiwan (R.O.C.)
Date of Foundation:	1991-3-19
Date of Registration:	1991-9-7
Factory Registration Number:	99602962
Factory Manager:	Jinghong Chen
Status:	In Production
Date of Last Annual Return:	2014-8-13
Major Products:	275 Measuring, navigation, control equipment and clocks 271 Computers and peripheral equipment 272 Communication equipment 269 Other electronic components
2
Name:	Science Park Branch the 1^st Factory
Address:	No.96, Dashun 7th Rd; No.3, Dashun 9th Rd., Tainan Science Park, Sinshih Township, Tainan County, Taiwan R.O.C.
Date of Registration:	2000-8-3
Factory Registration Number:	94A00020
Factory Manager:	Zhengxian Ye
Status:	In Production
Date of Last Annual Return:	2016-9-14
Major Products:	264 Photoelectric materials and components.
3
Name:	Science Park Branch the 2^nd Factory
Address:	No.2, Dashun 9th Rd., Tainan Science Park, Sinshih Township, Tainan County, Taiwan R.O.C.
Date of Registration:	2000-8-3
Factory Registration Number:	94B00020
Factory Manager:	Zhengxian Ye
Status:	In Production
Date of Last Annual Return:	2016-9-14
Major Products:	264 Photoelectric materials and components.
4
Name:	Science Park Branch the 5^th Factory
Address:	No.18, Dashun 9th Rd., Tainan Science Park, Sinshih Township, Tainan County, Taiwan R.O.C.
Date of Registration:	2000-8-3
Factory Registration Number:	94C00020
Factory Manager:	Zhengxian Ye
Status:	In Production
Date of Last Annual Return:	2016-9-14
Major Products:	264 Photoelectric materials and components.
5
Name:	Science Park Branch the 6^th A Factory
Address:	No.8, Beiyuan 3^rd Rd., Anding Dist., Tainan County, Taiwan R.O.C.
Date of Registration:	2011-7-15
Factory Registration Number:	94E00020
Factory Manager:	Zhengxian Ye
Status:	In Production
Date of Last Annual Return:	2016-9-14
Major Products:	264 Photoelectric materials and components.
6
Name:	Science Park Branch the 6^th B Factory
Address:	No.1-8, Beiyuan 3^rd Rd., Anding Dist., Tainan County, Taiwan R.O.C.
Date of Registration:	2011-6-30
Factory Registration Number:	94D00020
Factory Manager:	Zhengxian Ye
Status:	In Production
Date of Last Annual Return:	2016-9-14
Major Products:	264 Photoelectric materials and components.
7
Name:	Taoyuan Branch Factory
Address:	1/F; 2/F, No.1560, Sec.1, Zhongshan Rd., Jinhu Li, Guanyin Dist., Taoyuan City, Taiwan R.O.C.
Date of Registration:	2010-10-15
Factory Registration Number:	03000031
Factory Manager:	Huanshun Lin
Status:	In Production
Date of Last Annual Return:	2017-8-10
Major Products:	264 Photoelectric materials and components.

Branches

1
Name	Motech Industries Inc., Science Park Branch
Registration Number	16130514
Date of Registration	1999-6-24
Status	Active
Telephone Number:	+886-6-505-0789
Date of Last Annual Return	2016-9-2
2
Name	Motech Industries Inc., Taoyuan Branch
Address	No.1560, Section 1, Zhongshan Road, Guanyin Dist., Taoyuan City 32852 (R.O.C)
Registration Number	24790573
Date of Registration	2015-4-28
Status	Active
Telephone Number:	+886-3-473-8199
Date of Last Annual Return	--

Related Companies

1
Name	Motech (Suzhou) Renewable Energy Co. Ltd.
Address	No.1, MOTECH Road., Kunshan City, Jiangsu Province, China
Telephone Number	+86-512-8616-3366
2
Name	Motech (Xuzhou) Renewable Energy Co. Ltd.
Address	No.8, Feng-huang Rd., Xuzhou City, Jiangsu Province, China
Telephone Number	+86-516-82636892
3
Name	Motech (Maanshan) Renewable Energy Co. Ltd.
Address	No.1188, Jin-shan Rd., MaAnshan City, Anhui Province, P.R. China
Telephone Number	+86-555-8886300
4
Name	Motech Japan Inc.
Address	725-4, 2-chome, Shinko-minami Ishikari City, Hokkaido 061-3244 Japan
Telephone Number	+81-133-64-4117
5
Name	Motech Americas LLC
Address	1400 Johnson Way, Suite C, Center Point Business Complex, New Castle DE. 19720
Telephone Number	+1-302-323-1060

Shareholders

Major Shareholders

Name	Subscription Shares
Bingheng Zhang
259,000
Yonghui Zeng	16,109,212
Zhigui Li	6,123,454
Sanbao Li	204,000

Management Information

Core Management

Directors

1
Name		Bingheng Zhang
Position		Chairman of the Board & Manager
Date of Appointment for Manager		2010-3-31
2
Name	Yonghui Zeng
Position		Director & Manager
Date of Appointment for Manager		1986-3-27
3
Name	Zhigui Li
Position		Director
4
Name	Shaohua Huang
Position		Director
5
Name	Zhengqing Wu
Position		Independent Director
6
Name	Sanbao Li
Position		Independent Director
7
Name	Qingchao Li
Position		Independent Director

Personnel Structure

Total Employees

About 4,700 employees (As of 2017.3)

Operation Information

Offices & Factories

	Headquarters
Add	6/F, No.248, Sec.3, Pei-Shen Rd., Shenkeng Dist., New Taipei City, Taiwan (R.O.C.)

Production Information

l Subject is engaged in manufacturing of solar cells and PV modules, etc.

l Subject has factories in Kunshan City, China and Taiwan for production.

l Subject obtained the certifications of ISO 9001 and ISO 14001.

Purchase Information

l The registered activities of subject:

Business Code	Details
CE01010	Manufacturing of general instruments
CC01010	Manufacturing of power generation, transmission, distribution machinery
CC01060	Manufacturing of wire communication machinery
CC01070	Manufacturing of wireless communication machinery
CC01080	Manufacturing of electronic components
CC01090	Manufacturing of cells
CC01110	Manufacturing of computer and its peripheral equipment
F113030	Wholesale of precise instruments
F213040	Retails of precise instruments
F113110	Wholesale of cells
F213110	Retails of cells
F113050	Wholesale of computer and transactional machines
F213030	Retail of computer and transactional machines
F119010	Wholesale of electronic materials
F219010	Retail of electronic materials
F113070	Wholesale of telecommunications equipment
F213060	Retail of telecommunications equipment
IG03010	Energy technology service industry
F401010	International trade
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

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

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

Sales Information

l Subject is engaged in sale of solar cells and photovoltaic modules, etc.

l The major products are mono and multi-crystalline silicon solar cells, etc.

l It is introduced that the detail information of subject’s solar cells is: Dimension: 156 mm x 156 mm ± 0.5 mm, Thickness (Si): 200µm ± 20µm, 180µm ± 20µm.

l Subject sells products with the brands “MOTECH” and “GE”.

l Subject’s sales regions are Taiwan, Japan, Korea, Southeast Asia, America, etc.

l Subject’s major customers are installation contractors and designers of solar systems, etc.

l It is introduced that one of subject’s major customers is AE Polysilicon Corp (USA).

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

1. Domestic Purchase

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

2. Import

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

Sales

1. Domestic Markets

Product	Solar cells and photovoltaic modules, etc.
Selling Terms	T/T, Cash, etc.

2. Export

Product	Solar cells and photovoltaic modules, etc.
Selling Terms	L/C, T/T, etc.

Financials

Balance Sheet

Unit: NTD/000

Consolidated	2016-12-31	2015-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	9,230,459	7,189,597
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	6	78
Notes receivable, net
Notes receivable	3,623,943	2,761,226
Notes receivable, net	3,623,943	2,761,226
Accounts receivable, net
Accounts receivable	3,247,283	4,575,667
Allowance for sales returns and discounts	33,179	106,395
Allowance for uncollectible accounts, accounts, installment, and lease payments receivable	234,634	209,895
Accounts receivable, net	2,979,470	4,259,377
Other receivables
Other non-operating receivables, others	719,309	831,170
Allowance for uncollectible accounts, other non-operating receivables	7,184	0
Other receivables, net	712,125	831,170
Current tax assets
Prepaid income tax	45,215	5,424
Total current tax assets	45,215	5,424
Inventories
Inventories, manufacturing business
Inventories, manufacturing business, net	2,124,151	2,912,720
Total inventories	2,124,151	2,912,720
Prepayments
Other prepaid expenses	256,973	173,860
Prepayments to suppliers	328,060	1,491,864
Total prepayments	585,033	1,665,724
Other current assets
Other current assets, others	349,254	64,662
Total other current assets	349,254	64,662
Total current assets	19,649,656	19,689,978
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets	131,889	57,650
Non-current available-for-sale financial assets, net	131,889	57,650
Investments accounted for using equity method
Investments accounted for using equity method	48,359	48,036
Investments accounted for using equity method, net	48,359	48,036
Property, plant and equipment
Land, net
Land, cost	86,345	105,217
Land, net	86,345	105,217
Buildings and structures, net
Buildings and structures, cost	2,908,827	3,041,753
Accumulated depreciation, buildings and structures	658,477	607,632
Buildings and structures, net	2,250,350	2,434,121
Machinery and equipment, net
Machinery and equipment, cost	16,885,505	17,521,801
Accumulated depreciation, machinery and equipment	11,811,626	10,897,498
Machinery and equipment, net	5,073,879	6,624,303
Other facilities, net
Other facilities, cost	4,197,643	4,106,852
Accumulated depreciation, other facilities	2,718,886	2,103,583
Other facilities, net	1,478,757	2,003,269
Unfinished construction and equipment under acceptance	281,539	22,029
Total property, plant and equipment	9,170,870	11,188,939
Intangible assets
Total intangible assets	558,118	604,899
Deferred tax assets	479,770	872,652
Other non-current assets
Long-term notes and accounts receivable
Long-term accounts receivables	563	3,418
Long-term notes and accounts receivable, net	563	3,418
Other non-current assets, others
Other non-current assets, others	750,830	1,019,211
Total other non-current assets, others	750,830	1,019,211
Total other non-current assets	751,393	1,022,629
Total non-current assets	11,140,399	13,794,805
Total assets	30,790,055	33,484,783
Liabilities and equity
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	6,382,125	4,651,725
Current financial liabilities at fair value through profit or loss
Total current financial liabilities at fair value through profit or loss	5,453	1,615
Accounts payable
Accounts payable	4,702,460	5,485,281
Total accounts payable	4,702,460	5,485,281
Other payables
Total other payables	1,315,535	1,460,267
Current tax liabilities	0	42,450
Current provisions
Total current provisions	33,711	35,168
Other current liabilities
Long-term liabilities, current portion
Long-term borrowings, current portion	1,385,333	1,110,428
Total long-term liabilities, current portion	1,385,333	1,110,428
Other current liabilities, others	303,631	332,151
Total other current liabilities	1,688,964	1,442,579
Total current liabilities	14,128,248	13,119,085
Non-current liabilities
Long-term borrowings
Total long-term borrowings	3,162,944	5,660,469
Non-current provisions
Total non-current provisions	111,887	100,520
Deferred tax liabilities
Total deferred tax liabilities	68,656	64,907
Other non-current liabilities
Other non-current liabilities, others	16,716	16,999
Total other non-current liabilities	16,716	16,999
Total non-current liabilities	3,360,203	5,842,895
Total liabilities	17,488,451	18,961,980
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	4,883,199	4,866,924
Total capital stock	4,883,199	4,866,924
Capital surplus
Capital surplus, additional paid-in capital
Capital surplus, additional paid-in capital arising from ordinary share	9,224,928	9,817,086
Total capital surplus, additional paid-in capital	9,224,928	9,817,086
Capital surplus, difference between consideration and carrying amount of subsidiaries acquired or disposed	-1,703	0
Capital Surplus, changes in ownership interests in subsidiaries	177,690	177,470
Capital Surplus, restricted stock	62,436	44,494
Capital surplus, others	0	17,155
Total capital surplus	9,463,351	10,056,205
Retained earnings
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	-909,253	-639,611
Total retained earnings	-909,253	-639,611
Other equity interest
Other equity, others
Other equity, others	-333,917	14,241
Total other equity, others	-333,917	14,241
Total other equity interest	-333,917	14,241
Treasury shares	650	615
Total equity attributable to owners of parent	13,102,730	14,297,144
Equity attributable to former owner of business combination under common control	0	0
Non-controlling interests	198,874	225,659
Total equity	13,301,604	14,522,803
Total liabilities and equity	30,790,055	33,484,783
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	65,000	61,500

Profit and Loss Account

Unit: NTD/000

Consolidated	2016	2015
Operating revenue
Net sales revenue
Sales revenue
Sales revenue	29,099,519	25,255,502
Total sales revenue	29,099,519	25,255,502
Sales returns	122,415	433,102
Sales discounts and allowances	14,212	68,245
Net sales revenue	28,962,892	24,754,155
Total operating revenue	28,962,892	24,754,155
Operating costs
Cost of sales
Cost of sales	27,748,461	23,107,359
Total cost of sales	27,748,461	23,107,359
Total operating costs	27,748,461	23,107,359
Gross profit (loss) from operations	1,214,431	1,646,796
Gross profit (loss) from operations	1,214,431	1,646,796
Operating expenses
Selling expenses
Total selling expenses	296,359	379,484
Administrative expenses
Total administrative expenses	779,488	664,782
Research and development expenses
Total research and development expenses	512,190	465,922
Total operating expenses	1,588,037	1,510,188
Net operating income (loss)	-373,606	136,608
Non-operating income and expenses
Other income
Interest income
Interest income from bank deposits	24,725	39,066
Total interest income	24,725	39,066
Total other income	24,725	39,066
Other gains and losses
Gains on disposals of property, plant and equipment	0	0
Foreign exchange gains	0	91,872
Gains on financial assets (liabilities) at fair value through profit or loss	20,249	0
Miscellaneous disbursements	-339,319	135,675
Losses on disposals of property, plant and equipment	60,139	1,274
Foreign exchange losses	16,237	0
Losses on financial assets (liabilities) at fair value through profit or loss	0	24,718
Impairment loss
Other impairment loss	216,325	60,536
Total impairment loss	216,325	60,536
Other gains and losses, net	66,867	-130,331
Finance costs
Interest expense	246,889	217,922
Finance costs, net	246,889	217,922
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	103	1,196
Share of loss of associates and joint ventures accounted for using equity method	0	0
Share of profit (loss) of associates and joint ventures accounted for using equity method, net	103	1,196
Total non-operating income and expenses	-155,194	-307,991
Profit (loss) from continuing operations before tax	-528,800	-171,383
Tax expense (income)
Total tax expense (income)	383,964	458,303
Profit (loss) from continuing operations	-912,764	-629,686
Profit (loss) from discontinued operations
Total profit (loss) from discontinued operations	0	0
Profit (loss)	-912,764	-629,686
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	-4,520	-1,870
Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	-768	-318
Components of other comprehensive income that will not be reclassified to profit or loss	-3,752	-1,552
Components of other comprehensive income that will be reclassified to profit or loss
Exchange differences on translation	-416,520	-21,631
Unrealised gains (losses) on valuation of available-for-sale financial assets	79,041	0
Income tax related to components of other comprehensive income that will be reclassified to profit or loss	11,856	0
Components of other comprehensive income that will be reclassified to profit or loss	-349,335	-21,631
Other comprehensive income, net	-353,087	-23,183
Total comprehensive income	-1,265,851	-652,869
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	-905,501	-638,059
Profit (loss), attributable to non-controlling interests	-7,263	8,373
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	-1,243,443	-656,628
Comprehensive income, attributable to non-controlling interests	-22,408	3,759
Basic earnings per share
Total basic earnings per share	-1.86	-1.37
Diluted earnings per share
Total diluted earnings per share	-1.86	-1.37

Cash Flows

Unit: NTD/000

Consolidated	2016	2015
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	-528,800	-171,383
Profit (loss) before tax	-528,800	-171,383
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	2,333,490	1,959,370
Amortization expense	65,573	43,162
Interest expense	246,889	217,922
Interest income	-24,725	-39,066
Share-based payments	50,512	40,971
Share of loss (profit) of associates and joint ventures accounted for using equity method	-103	-1,196
Loss (gain) on disposal of property, plant and equipment	60,139	1,274
Property, plant and equipment transferred to expenses	23,437	312
Impairment loss on non-financial assets	216,325	60,536
Other adjustments to reconcile profit (loss)	311,982	299,003
Total adjustments to reconcile profit (loss)	3,283,519	2,582,288
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	72	1,417
Decrease (increase) in accounts receivable	31,633	-1,505,465
Decrease (increase) in other receivable	237,694	-441,104
Decrease (increase) in inventories	679,608	-95,932
Decrease (increase) in prepaid expenses	-95,346	-98,607
Decrease (increase) in prepayments	1,475,561	-20,349
Decrease (increase) in other current assets	-302,552	20,136
Decrease (increase) in other operating assets	16	452
Total changes in operating assets	2,026,686	-2,139,452
Changes in operating liabilities
Increase (decrease) in financial liabilities held for trading	3,838	-8,639
Increase (decrease) in accounts payable	-501,896	1,205,097
Increase (decrease) in other payable	-86,303	258,315
Increase (decrease) in other current liabilities	-18,612	115,209
Increase (decrease) in other operating liabilities	12,760	4,766
Total changes in operating liabilities	-590,213	1,574,748
Total changes in operating assets and liabilities	1,436,473	-564,704
Total adjustments	4,719,992	2,017,584
Cash inflow (outflow) generated from operations	4,191,192	1,846,201
Income taxes refund (paid)	-93,494	-54,393
Net cash flows from (used in) operating activities	4,097,698	1,791,808
Cash flows from (used in) investing activities
Acquisition of available-for-sale financial assets	0	-57,650
Acquisition of property, plant and equipment	-526,364	-198,893
Proceeds from disposal of property, plant and equipment	33,260	3,282
Increase in refundable deposits	-9,554	-38,873
Increase in other receivables	-173,435	0
Decrease in other receivables	0	467,750
Acquisition of intangible assets	-18,335	-16,788
Net cash inflows from business combination	0	834,955
Increase in prepayments for business facilities	-708,880	-795,673
Interest received	23,952	39,444
Net cash flows from (used in) investing activities	-1,379,356	237,554
Cash flows from (used in) financing activities
Increase in short-term loans	9,821,050	3,929,050
Decrease in short-term loans	-7,939,692	-5,147,970
Proceeds from long-term debt	303,990	9,889,705
Repayments of long-term debt	-2,529,808	-10,821,701
Increase in guarantee deposits received	1,631	5,629
Decrease in lease payable	-507	-1,311
Acquisition of ownership interests in subsidiaries	-6,080	0
Interest paid	-239,077	-225,932
Net cash flows from (used in) financing activities	-588,493	-2,372,530
Effect of exchange rate changes on cash and cash equivalents	-88,987	-15,070
Net increase (decrease) in cash and cash equivalents	2,040,862	-358,238
Cash and cash equivalents at beginning of period	7,189,597	7,547,835
Cash and cash equivalents at end of period	9,230,459	7,189,597
Cash and cash equivalents reported in the statement of financial position	9,230,459	7,189,597
Other items qualifying for cash and cash equivalents under the definition of IAS 7	0	0

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

Name	Chang Hwa Commercial Bank

Public Record

Mortgage

Case Type:	Chattel Mortgage
Registered Number:	059
Debtor Name:	Motech Industries Inc.
Registry:	Southern Taiwan Science Park Bureau, MOST
Name of Mortgagee:	China Development Industrial Bank
Date of Registration:	2003-9-16
Amount of Secure Claims:	NTD 100,000,000
Type of Mortgage:	Machinery equipment and tools.

Lawsuit

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

Special Note

Interview Details

Interview Date	2018-1-15
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.41
UK Pound	1	INR 87.17
Euro	1	INR 77.44
TWD	1	INR 2.16

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

INFORMATION DETAILS

Analysis Done by :	PRA
Report Prepared by :	DNS

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)

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.