MIRA INFORM REPORT

Report No. :	508482
Report Date :	21.05.2018

IDENTIFICATION DETAILS

Name :	CHINA GENERAL PLASTICS CORP.
Registered Office :	12/F, No.37, Ji-Hu Road, Nei-Hu Dist., Taipei City, Taiwan, R.O.C.
Country :	Taiwan
Financials (as on) :	31.12.2017 [Consolidated]
Date of Incorporation :	29.04.1964
Com. Reg. No.:	11686106
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and sale of PVC resin
No. of Employees :	950 [Group]

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 :	Regular
Litigation :	Clear

NOTES :

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

ECGC Country Risk Classification List

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
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. These overtures have likely played a role in increasing Taiwan’s total exports, which rose 11% during the first half of 2017, buoyed by strong demand for semiconductors.

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. President TSAI’s administration has made little progress on the domestic economic issues that loomed large when she was elected, including concerns about stagnant wages, high housing prices, youth unemployment, job security, and financial security in retirement. TSAI has made more progress on boosting trade with South and Southeast Asia, however, which may help insulate Taiwan’s economy from a fall in mainland demand should China’s growth slow in 2018.

Source : CIA

Company name and address

Company Name:	China General Plastics Corp.
Supplied Name:	CHINA GENERAL PLASTICS CORP
Trading Address:	7/F, 12/F, No.37, Ji-Hu Road, Nei-Hu Dist., Taipei City, Taiwan, R.O.C.
Supplied Address:	7TH FLOOR NO 37 JI HU RD NEI HU DISTR TAIPEI TAIWAN REPUBLIC OF CHINA
Telephone Number:	+886-2-8751-6888/2798-3736
Fax Number:	+886-2-2659-9520
Email:	frankhuang@cgpc.com.tw rogerchung@cgpc.com.tw

Notes: The exact name and address are as above.

Company Identification Details

Registered Name:	China General Plastics Corp.
Registered Address:	12/F, No.37, Ji-Hu Road, Nei-Hu Dist., Taipei City, Taiwan, R.O.C.
Date of Foundation:	1964-4-29
Registration Number:	11686106
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 5,000,000,000 (USD 170,000,000)
Paid-up Capital:	NTD 4,919,995,600 (USD 167,279,850.4)
Legal Representatives:	Yigui Wu
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale of PVC resin.
Staff:	About 950 Employees (Group)
Listed at Stock Exchange:	Yes; Stock Symbol: 1305
Date of Last Annual Return:	2017-8-28

History

Subject was incorporated on 1964-04-29 with registered number 11686106 as Joint Stock Company in Taiwan.

Subject listed on Taiwan Stock Exchange on 1973-03-05.

Corporate Structure

Factory

Name:	Toufen Factory
Address:	No.571, Minzu Rd., 17 Lin, Tian Liao Li, Toufen Township, Miaoli County, Taiwan (R.O.C.)
Date of Foundation:	1969-04-16
Date of Registration:	1969-04-16
Factory Registration Number:	99631801
Factory Manager:	Wanda Chen
Status:	In Production
Date of Last Annual Return:	2016-5-18
Major Products:	220 Plastic products 181 Basic chemical materials (chemical materials for dietary supplement, sodium hydroxide solution 45%, hydrochloric acid 32%, sodium hypochlorite solution) 184 Synthetic resin, plastic and rubber

Major Related Companies

1
Name:	CGPC America Corporation
Address:	11310 HARREL ST. MIRA LOMA CA 91752-1408 U.S.A.
Tel:	+909-594-0080
Fax:	+909-594-0062
2
Name:	China General Plastics (Hong Kong) Co., Ltd.
Address:	Rm. 1110B. Tower 2, China H.K. City, 33 Canton Rd., Tsim Sha Tsui, Kln, Hong Kong
3
Name:	Asia Polymer Corporation (APC)
Address:	12F., No.37, Jihu Rd., Neihu Dist., Taipei City 11492, Taiwan (R.O.C.)
4
Name:	USI Corporation (USI)
Address:	No. 330, Fengren Rd., Renwu Dist., Kaohsiung City 81449, Taiwan (R.O.C.)
5
Name:	Swanson Plastics Corporation (SPC)
Address:	8th Floor, No. 37, Ji-Hu Rd., Nei-Hu Dist., Taipei 114, Taiwan, R. o. c.
Tel:	+886-2-2798-0333
Fax:	+886-2-2659-9508
6
Name:	USI Optronics Corporation (USIO)
Address:	12th Floor, No. 37, Ji-Hu Rd., Nei-Hu Dist., Taipei 114, Taiwan, R. o. c.
Tel:	+886-2-37630168
Fax:	+886-2-37630169

Shareholder

Major Shareholder

Name	Subscription Shares
Lianju International Investment Co., Ltd. (Literal Translation)
122,844,609

Shareholder Information:

Registered Name:	Lianju International Investment Co., Ltd. (Literal Translation)
Registered Address:	12/F, No.37, Ji-Hu Road, Nei-Hu Dist., Taipei City, Taiwan, R.O.C.
Date of Foundation:	1996-10-18
Registration Number:	97168102
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 4,627,580,000
Paid-up Capital:	NTD 4,627,580,000
Legal Representatives:	Yigui Wu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2017-8-7

Management Information

Core Management

Directors

1
Name	Yigui Wu
Position	Chairman of the Board
2
Name	Jizhong Zhang
Position	Director
3
Name	Hanfu Lin
Position	Director & Manager
Appointment Date of Manager	2013-02-27
4
Name	Baoluo Ying
Position	Director
5
Name	Hantai Liu
Position	Director
6
Name	Zhentu Liu
Position	Director
7
Name	Zude Li
Position	Independent Director
8
Name	Yingbin Zheng
Position	Independent Director
9
Name	Liangxian Li
Position	Independent Director

Personnel Structure

Total Employees

About 950 Employees (Group)

Operation Information

Offices & Factories

	Headquarters
Add	7/F, 12/F, No.37, Ji-Hu Road, Nei-Hu Dist., Taipei City, Taiwan, R.O.C.

Production Information

Subject is engaged in manufacturing of plastics and related products.

Subject has a factory in Taiwan for production.

Subject obtained the certifications of ISO 9001:2008, ISO/TS 16949:2009, OHSAS 18001:2007, ISO 14001:2004, ISO/IEC 17025:2005, etc.

Purchase Information

The registered activities of subject:

Business Code	Details
--	Manufacturing of raw materials and plastic
--	Manufacturing of plastic processed products
--	Manufacturing of related chemical products for plastic processed products
--	Manufacturing of printing and embossing rollers
--	Manufacturing, technical service (design and installation) and sales of chemical machinery and equipment (whole plant equipment of vinyl chloride monomer)
--	Transporting, sales, entrusting and processing of above related products.
--	Research and promoting services of above mentioned products
F107110	Wholesales of petrochemical materials
F207110	Retails of petrochemical materials
ZZ99999	Besides licensed business, all other business items those are not banned or restricted

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

It is introduced that subject’s suppliers include CPC CORPORATION, TAIWAN, TAIWAN CHLORINE INDUSTRIES LTD., etc.

Sales Information

Subject is engaged in sale of PVC resin.

Subject’s major products include PVC resin, PVC compound, PVC construction products, film and sheet products, leather products, etc.

It is introduced that subject’s PVC construction products include plastic tubes, plastic pipes, plastic door sheets and erosion protection shields, etc.

Subject’s sales regions include domestic market, Southeast Asia, Middle East, Oceania, South and North America, etc.

Subject’s customers are from industries of plastic products, construction, etc.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

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

Import

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

Sales

Domestic Markets

Product	PVC resin, etc.
Selling Terms	T/T, Cash, etc.

Export

Product	PVC resin, etc.
Selling Terms	L/C, T/T, etc.

Financials

Balance Sheet

Unit: NTD/000

Consolidated	2017-12-31	2016-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	663,145	1,408,954
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	1,395,898	2,087,088
Current available-for-sale financial assets
Current available-for-sale financial assets, net	0	3,072
Current bond investment without active market
Total Current investments in debt instrument without active market	268,805	268,656
Notes receivable, net
Notes receivable, net	179,929	152,341
Accounts receivable, net
Accounts receivable, net	1,498,990	1,280,151
Other receivables
Other receivables, net	70,802	66,877
Other receivables due from related parties
Other receivables due from related parties, net	5,472	139,999
Current tax assets
Total current tax assets	42	1,085
Inventories
Inventories, manufacturing business
Inventories, manufacturing business, net	1,856,456	1,722,932
Total inventories	1,856,456	1,722,932
Prepayments
Total prepayments	53,598	67,192
Other current assets
Total other current assets	494	1,709
Total current assets	5,993,631	7,200,056
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	2,194	2,102
Non-current financial assets at cost
Non-current financial assets at cost, net	91,000	103,251
Investments accounted for using equity method
Investments accounted for using equity method, net	298,744	271,354
Property, plant and equipment
Total property, plant and equipment	5,729,861	5,227,157
Investment property, net
Investment property, net	140,260	27,715
Intangible assets
Total intangible assets	10,238	19,589
Deferred tax assets	270,525	316,467
Other non-current assets
Long-term prepaid rents	100,318	105,920
Other non-current assets, others
Total other non-current assets, others	36,450	35,376
Total other non-current assets	136,768	141,296
Total non-current assets	6,679,590	6,108,931
Total assets	12,673,221	13,308,987
Liabilities and equity
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	0	160,000
Short-term notes and bills payable
Total short-term notes and bills payable	0	299,929
Current financial liabilities at fair value through profit or loss
Total current financial liabilities at fair value through profit or loss	1,701	3,116
Notes payable
Total notes payable	183	351
Accounts payable
Total accounts payable	620,443	789,053
Accounts payable to related parties
Total accounts payable to related parties	232,011	234,127
Other payables
Total other payables	681,231	667,972
Other payables to related parties	22,605	28,425
Current tax liabilities	141,996	215,670
Current provisions
Total current provisions	25,127	16,039
Other current liabilities
Total other current liabilities	60,650	65,451
Total current liabilities	1,785,947	2,480,133
Non-current liabilities
Long-term borrowings
Total long-term borrowings	1,050,000	1,050,000
Deferred tax liabilities
Total deferred tax liabilities	594,162	596,167
Other non-current liabilities
Net defined benefit liability, non-current	1,039,875	1,420,641
Other non-current liabilities, others	2,389	6,226
Total other non-current liabilities	1,042,264	1,426,867
Total non-current liabilities	2,686,426	3,073,034
Total liabilities	4,472,373	5,553,167
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	4,919,996	4,776,695
Total capital stock	4,919,996	4,776,695
Capital surplus
Total capital surplus	8,236	8,220
Retained earnings
Legal reserve	385,973	241,661
Special reserve	408,223	408,223
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	2,063,146	1,899,548
Total retained earnings	2,857,342	2,549,432
Other equity interest
Total other equity interest	20,767	41,138
Total equity attributable to owners of parent	7,806,341	7,375,485
Non-controlling interests	394,507	380,335
Total equity	8,200,848	7,755,820
Total liabilities and equity	12,673,221	13,308,987
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	0	0

Profit and Loss Account

Unit: NTD/000

Consolidated	2017	2016
Operating revenue
Net sales revenue
Net sales revenue	14,701,741	14,157,389
Total operating revenue	14,701,741	14,157,389
Operating costs
Cost of sales
Total cost of sales	11,924,810	11,217,020
Total operating costs	11,924,810	11,217,020
Gross profit (loss) from operations	2,776,931	2,940,369
Gross profit (loss) from operations	2,776,931	2,940,369
Operating expenses
Selling expenses
Total selling expenses	803,107	747,081
Administrative expenses
Total administrative expenses	274,619	269,387
Research and development expenses
Total research and development expenses	48,417	49,431
Total operating expenses	1,126,143	1,065,899
Net operating income (loss)	1,650,788	1,874,470
Non-operating income and expenses
Other income
Total other income	47,402	30,881
Other gains and losses
Other gains and losses, net	-84,917	-78,238
Finance costs
Interest expense	13,028	22,142
Finance costs, net	13,028	22,142
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	15,898	-3,817
Total non-operating income and expenses	-34,645	-73,316
Profit (loss) from continuing operations before tax	1,616,143	1,801,154
Tax expense (income)
Total tax expense (income)	274,672	279,847
Profit (loss) from continuing operations	1,341,471	1,521,307
Profit (loss) from discontinued operations
Total profit (loss) from discontinued operations	-2,197	21,777
Profit (loss)	1,339,274	1,543,084
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	-7,496	-71,133
Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss
Gains (losses) on remeasurements of defined benefit plans, associates and joint ventures accounted for using equity method	-161	-2,196
Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss	-161	-2,196
Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	-561	-9,470
Components of other comprehensive income that will not be reclassified to profit or loss	-7,096	-63,859
Components of other comprehensive income that will be reclassified to profit or loss
Exchange differences on translation	-38,607	-29,784
Unrealised gains (losses) on valuation of available-for-sale financial assets	33	616
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
Exchange differences on translation, associates and joint ventures accounted for using equity method	-151	-1,693
Unrealized gains (losses) on available-for-sale financial assets, associates and joint ventures accounted for using equity method	11,804	12,368
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	11,653	10,675
Income tax related to components of other comprehensive income that will be reclassified to profit or loss	-6,563	-5,064
Components of other comprehensive income that will be reclassified to profit or loss	-20,358	-13,429
Other comprehensive income, net	-27,454	-77,288
Total comprehensive income	1,311,820	1,465,796
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	1,269,808	1,443,125
Profit (loss), attributable to non-controlling interests	69,466	99,959
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	1,242,878	1,367,779
Comprehensive income, attributable to non-controlling interests	68,942	98,017
Basic earnings per share
Total basic earnings per share	2.58	2.93
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations	2.59	2.89
Diluted earnings (loss) per share from discontinued operations	-0.01	0.04
Total diluted earnings per share	2.58	2.93

Cash Flows

Unit: NTD/000

Consolidated	2017	2016
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	1,616,143	1,801,154
Profit (loss) from discontinued operations before tax	-2,197	21,777
Profit (loss) before tax	1,613,946	1,822,931
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	430,606	382,244
Amortization expense	24,755	31,459
Provision (reversal of provision) for bad debt expense	-2,045	580
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	33,565	9,510
Interest expense	13,028	22,142
Interest income	-13,710	-11,962
Dividend income	-79	-65
Share of loss (profit) of associates and joint ventures accounted for using equity method	-15,898	3,817
Loss (gain) on disposal of property, plan and equipment	-2,906	-20,673
Loss (gain) on disposal of investments	-2,936	20
Impairment loss on financial assets	3,035	0
Impairment loss on non-financial assets	4,490	0
Reversal of impairment loss on non-financial assets	-951	-3,364
Other adjustments to reconcile profit (loss)	3,413	3,362
Total adjustments to reconcile profit (loss)	474,367	417,070
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	656,210	-177,861
Decrease (increase) in notes receivable	-27,588	-6,090
Decrease (increase) in accounts receivable	-226,301	-74,402
Decrease (increase) in other receivable	-5,888	-9,294
Decrease (increase) in other receivable due from related parties	133,357	-103,079
Decrease (increase) in inventories	-153,044	128,360
Decrease (increase) in prepayments	13,594	-5,920
Decrease (increase) in other current assets	1,215	986
Total changes in operating assets	391,555	-247,300
Changes in operating liabilities
Increase (decrease) in notes payable	1,497	90
Increase (decrease) in accounts payable	-168,239	120,737
Increase (decrease) in accounts payable to related parties	-2,116	124,385
Increase (decrease) in other payable	-15,875	103,418
Increase (decrease) in other payable to related parties	-5,538	3,911
Increase (decrease) in provisions	9,088	1,859
Increase (decrease) in other current liabilities	-4,801	1,637
Increase (decrease) in net defined benefit liability	-388,261	-21,089
Total changes in operating liabilities	-574,245	334,948
Total changes in operating assets and liabilities	-182,690	87,648
Total adjustments	291,677	504,718
Cash inflow (outflow) generated from operations	1,905,623	2,327,649
Interest received	14,233	11,834
Interest paid	-12,801	-22,566
Income taxes refund (paid)	-295,566	-131,904
Net cash flows from (used in) operating activities	1,611,489	2,185,013
Cash flows from (used in) investing activities
Acquisition of available-for-sale financial assets	0	-151
Proceeds from disposal of available-for-sale financial assets	5,948	165
Acquisition of investments in debt instrument without active market	-626,264	-60,412
Proceeds from disposal of investments in debt instrument without active market	626,115	111,000
Proceeds from capital reduction of financial assets at cost	9,000	0
Acquisition of property, plant and equipment	-1,022,063	-566,789
Proceeds from disposal of property, plant and equipment	6,857	57,662
Increase in refundable deposits	-13,025	-682
Decrease in refundable deposits	12,606	91
Acquisition of intangible assets	-235	-515
Dividends received	79	65
Other investing activities	-15,563	-21,147
Net cash flows from (used in) investing activities	-1,016,545	-480,713
Cash flows from (used in) financing activities
Decrease in short-term loans	-160,000	-190,000
Decrease in short-term notes and bills payable	-300,000	-200,000
Proceeds from long-term debt	0	608,000
Repayments of long-term debt	0	-791,288
Increase in guarantee deposits received	733	2,397
Decrease in guarantee deposits received	-2,326	-3,031
Increase in other non-current liabilities	-2,243	-2,809
Cash dividends paid	-812,014	-468,595
Change in non-controlling interests	-54,770	-26,848
Net cash flows from (used in) financing activities	-1,330,620	-1,072,174
Effect of exchange rate changes on cash and cash equivalents	-10,133	-5,736
Net increase (decrease) in cash and cash equivalents	-745,809	626,390
Cash and cash equivalents at beginning of period	1,408,954	782,564
Cash and cash equivalents at end of period	663,145	1,408,954
Cash and cash equivalents reported in the statement of financial position	663,145	1,408,954

Bankers

Name	Mega International Commercial Bank Co., Ltd.

Public Record

Mortgage

No chattel mortgage record of subject has been found within the recent 3 months.

Lawsuit

1
Trial Number:	2010, Beixiao, 811
Trial Date:	2010-10-27
Reason:	Compensation for damage
Claimant:	Xin Hua Yu Co., Ltd. (Literal Translation)
Defendant:	China General Plastics Corp.
2
Trial Number:	2002, Beilaosu, 2
Trial Date:	2003-5-15
Reason:	Confirmation the existence of employment relationship
Claimant:	Not Stated
Defendant:	China General Plastics Corp.

Special Note

Interview Details

Department

Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.96
UK Pound	1	INR 91.88
Euro	1	INR 80.28
TWD	1	INR 2.27

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

INFORMATION DETAILS

Analysis Done by :	NIS
Report Prepared by :	SYL

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.