MIRA INFORM REPORT

Report Date :

03.12.2012

IDENTIFICATION DETAILS

Name :	COVERINGS INDUSTRIAL CORP.

Registered Office :	6F., No.32, Sec.1, Roosevelt Rd., Taipei

Country :	Taiwan

Date of Incorporation :	10.03.1981

Reg. No.:	12319136

Legal Form :	Private Limited Company

Line of Business :	Import and wholesales of fresh fruit.

No. of Employees :	About 10 employees

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 – June 30^th, 2012

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Taiwan

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Taiwan - ECONOMIC OVERVIEW

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. In keeping with this trend, some large, state-owned banks and industrial firms have been privatized. 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. In 2009, Taiwan's GDP contracted 1.9%, due primarily to a 20% year-on-year decline in exports. In 2010 GDP grew 10.9%, as exports returned to the level of previous years, and in 2011, grew 5.2%. However, 2012 growth will likely be less, according to most forecasters, because of softening global demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, but so far Taiwan has been excluded from this greater economic integration largely because of its diplomatic status with the exception of the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010. The MA administration has said that the ECFA will serve as a stepping stone toward trade pacts with other regional partners, and negotiations on a deal with Singapore began this year. Follow-on components of ECFA, including deals on trade in goods, services, and investment, have yet to be completed. Taiwan's Total Fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting for 10.9% of the island's total population as of 2011. The island runs a large trade surplus, and its foreign reserves are the world's fourth largest, behind China, Japan, and Russia. Since 2005 China has overtaken 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. Three financial memorandums of understanding, covering banking, securities, and insurance, took effect in mid-January 2010, opening the island to greater investments from the mainland's financial firms and institutional investors, and providing new opportunities for Taiwan financial firms to operate in China. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved.

Source : CIA

Contact Points

Company Name:	COVERINGS INDUSTRIAL CORP.
Supplied Name:	COVERINGS INDUSTRIAL CORPORATION
Trading Address:	No. 3, Lane 8, Linyi Street, Zhongzheng District, Taipei, Taiwan
Supplied Address:	1 F, N?3, Lane 19, Linyi St., Jhongjheng D Taiwan
Telephone Number:	+886-2-2356-9311
Fax Number:	+886-2-2394-9707

Notes: Subject’s exact name and address are as above.

Company Identification Details

Registered Name:	COVERINGS INDUSTRIAL CORP.
Registered Address:	6F., No.32, Sec.1, Roosevelt Rd., Taipei, Taiwan, R.O.C.
Date of Foundation:	1981-3-10
Registration Number:	12319136
Registry:	Taipei City Government
Registered Capital:	NTD 10,000,000 (USD 339,000) (As of 2012.12, 1 NTD = 0.0339 USD)
Legal Representatives:	Kuo-Chin Tang
Legal Form:	Private Limited Company
Principal Activities:	Import and wholesales of fresh fruit.
Staff:	About 10 employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	2008-3-24

History

Subject was incorporated on 1981-3-10 with registered number 12319136 as Private Limited Company in Taiwan.

Awards

Year	Awards
2009	Blue chip importer and exporter
2010	Blue chip importer and exporter
2011	Blue chip importer and exporter

Standard of Blue chip importer and exporter

Unit: USD

Year	Amount
2009	15,000,000
2010	20,000,000
2011	22,000,000

Shareholders

(Unit: NTD)

Name

Subscription Amount

Kuo-Chin Tang

10,000,000

Subsidiaries & Branches

It is introduced that subject does not have any subsidiaries or branches at present.

Personnel Information

Core Management

Director

Name	Kuo-Chin Tang
Position	Director

Personnel Structure

Total Employees

About 10 employees

Operation Information

Offices & Factories

	Headquarters
Add	No. 3, Lane 8, Linyi Street, Zhongzheng District, Taipei, Taiwan

Production Information

Subject is a trader of fresh fruit without any production activities

Purchase Information

The registered activities of subject:

1	Wholesales of fresh fruit and canned fruit, etc
2	Wholesales of all kinds of plastic cloth and raw materials, etc
3	Import and export business of the products above.
4	Agent, price quoting, bidding and marketing of the above items.

Subject purchases fresh fruit mainly abroad from New Zealand, Chile, etc

It is introduced that subject purchases kiwi fruit from Italy and apples from South America this season.

It is introduced that subject has stable suppliers all over the world; subject’s purchasing all depends on the change of seasons and the specific conditions.

Sales Information

The subject is mainly engaged in wholesales of fresh fruits and it supplies kiwi fruit and apples this season.

Subject only supplies the products the domestic market in Taiwan.

Subject’s major customers are wholesalers, supermarkets, etc

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Domestic Purchase

Subject has little domestic purchase

Foreign Purchase

Product	Payment Terms	Proportion
Fresh Fruit	CBD, etc	100%

Sales

Domestic Markets (Taiwan)

Product	Sales Terms	Proportion
Fresh Fruit	COD, Credit Sales, etc	100%

Export

Subject does not export

Financial Information

Subject has no obligations to disclose its financial statements to the third party according to the relevant policy in Taiwan and the only source from which we can obtain the information is the subject itself.

Subject’s staff Ms. Zhang declined to disclose its financials citing the grounds of company’s confidentiality; from other source we can not obtain the relevant information, either.

Bankers

Subject declined to disclose its bank details; from other source we can not obtain the relevant information, either.

Public Record

Mortgage

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

Lawsuit

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

Interview Details

Name	Ms. Zhang
Position	Office Worker

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.52
UK Pound	1	Rs.87.48
Euro	1	Rs.70.89

INFORMATION DETAILS

Report Prepared by :

SDA

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

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

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.