MIRA INFORM REPORT

Report Date :

03.12.2012

IDENTIFICATION DETAILS

Name :	KING PAPER CO., LTD.
Registered Office :	No. 12, Rong Gong N Road, Caota Village, Guanyin Township, Taoyuan County, Taiwan, R.O.C.
Country :	Taiwan
Date of Incorporation :	2.11.1988
Com. Reg. No.:	23086818
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and sales of paper and paper products, etc
No. of Employees :	100 Employees

RATING & COMMENTS

MIRA’s Rating :

B

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 (31.03.2012)	Current Rating (30.06.2012)
Taiwan	A2	A2

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:	KING PAPER CO., LTD.
Supplied Name:	King Paper Private Company Ltd.
Trading Address:	8^th Floor, No.50, Sec 3, Roosevelt Road, Taipei City, Taiwan, R.O.C.
Supplied Address:	No. 1, Minfu St Douliu City Yunlin County 640 Taiwan
Telephone Number:	+886-2-2362-2888
Fax Number:	+886-2-2365-9666
E-mail:	service@kpp.com.tw

Notes: The exact name and address are as above. Subject didn’t introduce the supplied address.

Credit Summary

Credit Opinion:

Business connections are permissible.

Company Identification Details

Registered Name:	KING PAPER CO., LTD.
Registered Address:	No. 12, Rong Gong N Road, Caota Village, Guanyin Township, Taoyuan County, Taiwan, R.O.C.
Date of Foundation:	1988-11-2
Registration Number:	23086818
Registry:	MOEA Central Office
Registered Capital:	NTD 20,000,000 (USD 680,000) (As of 2012.11, 1 NTD = 0.0340 USD)
Paid-up Capital:	NTD 20,000,000 (USD 680,000)
Legal Representatives:	Yanwen Chen
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sales of paper and paper products, etc
Staff:	About 100 Employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	2008-12-22

History

Subject was incorporated on 1988-11-2 with registered number 23086818 as Joint Stock Company in Taiwan.

Shareholders

Name	Subscription Shares
Yanwen Chen	6,000
Zhiliang Chen
100,000
Meiying Song	90,000
Yanhao Chen	4,000

The information above is that of subject’s major shareholders.

Subsidiaries & Branches

Factories

1
Address	No. 12, Rong Gong N Road, Caota Village, Guanyin Township, Taoyuan County, Taiwan, R.O.C.
2
Name	King Paper(Ximan)Co., Ltd.
Address	No.66 Xiafei Road, Hai Cang Xin Yang Industrial Zone, Xiamen City, Fujian Province, China
Telephone Number	+86-592-651-2288
Fax Number	+86-592-651-2277

Related Company

Name	Ching Mei Paper Co., Ltd
Address	8^th Floor, No.50, Sec 3, Roosevelt Road, Taipei City, Taiwan, R.O.C.
Telephone Number	+886-2-2362-2888
Fax Number	+886-2-2365-9666

Personnel Information

Core Management

Directors

1
Name	Yanwen Chen
Position	Board Director
2
Name	Zhiliang Chen
Position	Director
3
Name	Meiying Song
Position	Director
4
Name	Yanhao Chen
Position	Supervisor

Personnel Structure

Total Employees

About 100 Employees

Operation Information

Offices & Factories

	Headquarters
Add	8^th Floor, No.50, Sec 3, Roosevelt Road, Taipei City, Taiwan, R.O.C.

Production Information

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

l Subject has factories in mainland China, Taiwan, and Indonesia for production.

Purchase Information

l The registered activities of subject:

Business Code	Details
--	Manufacturing, processing and sales of all kinds of paper, paperboard, carton, paper tube, paper products and packaging containers
--	Trading of above material and machinery
--	Import and export business of above item

l The raw materials for production are purchased mainly from domestic market.

l It is introduced that some equipments for production are purchase from USA and Europe, etc.

Sales Information

l Subject is engaged in sales of paper and paper products, etc

l Subject’s sales regions include domestic market, Europe, Middle East, and America, etc.

l The major products sold by subject include paperboard, paper tube, liner board and colored board

l

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Product	Payment Terms	Proportion
Raw materials	COD, CBD, etc	100%

Foreign Purchase

Product	Payment Terms	Proportion
Raw material and equipment	CBD, etc	100%

Sales

Domestic Markets

Product	Sales Terms	Proportion
Paper products	COD, CBD, etc	100%

Export

Product	Sales Terms	Proportion
Paper products	CBD, etc	100%

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 relevant staff Ms. Chen 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 cannot 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. Chen
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.52
UK Pound	1	Rs.87.48
Euro	1	Rs.70.88

INFORMATION DETAILS

Report Prepared by :

NLM

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.