MIRA INFORM REPORT

 

 

Report Date :

07.12.2012

 

IDENTIFICATION DETAILS

 

Name :

FORMOSA CHEMICALS & FIBRE CORP.

 

 

Registered Office :

359, Chungshan Road, Sec. 3, Chang Hwa City, Chang Hwa County

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

05.03.1965

 

 

Com. Reg. No.:

58650902

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacture and sales of chemicals, fibers, petrochemical and plastic materials

 

 

No. of Employees :

About 4,000 Employees

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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:

Formosa Chemicals & Fibre Corp.

Supplied Name:

Formosa Chemical And Fiber Corporation

Trading Address:

359, Chungshan Road, Sec. 3, Chang Hwa City, Chang Hwa County, Taiwan, R.O.C.

Supplied Address:

201 Tung Hwa North Road 10508 Taipei

Telephone Number:

+886-2-2712-2211

Fax Number:

+886-2-2713-3229

E-mail:

marketing@fcfc.com.tw

Website:

www.fcfc.com.tw

Notes: The exact name and address are as above.

 

 

Credit Summary

 

Credit Opinion:

Business connections are permissible.

 

 

Company Identification Details

 

Registered Name:

Formosa Chemicals & Fibre Corp.

Registered Address:

359, Chungshan Road, Sec. 3, Chang Hwa City, Chang Hwa County, Taiwan, R.O.C.

Date of Foundation:

1965-3-5

Registration Number:

58650902

Registry:

Department of Commerce, Ministry of Economic Affairs, R.O.C.

Registered Capital:

NTD 56,904,721,280 (USD 1,900,617,690.75)

(As of 2012.07, 1 NTD = 0.0334 USD)

Paid-up Capital:

NTD 56,904,721,280 (USD 1,900,617,690.75)

Legal Representatives:

Wenyuan Wang

Legal Form:

Joint Stock Company

Principal Activities:

Manufacture and sales of chemicals, fibers, petrochemical and plastic materials

Staff:

About 4,000 Employees

Listed at Stock Exchange:

Yes; Stock Symbol: 1326

Date of Last Annual Return:

2012-7-16

 

 

History

 

Subject was incorporated on 1965-3-5 with registered number 58650902 as Joint Stock Company in Taiwan.

 

Awards

Year

Awards

2008

Blue chip importer and exporter

2009

Blue chip importer and exporter

2010

Blue chip importer and exporter

 

Standard of Blue chip importer and exporter

 

Unit: USD

Year

Amount

2008

19,000,000

2009

15,000,000

2010

20,000,000

 

 

Shareholders

 

Name

Subscription Shares

Wenyuan Wang

61,311,250

Formosa Plastics Corporation

192,955,278

Wenchao Wang

16,329,827

Nan Ya Plastics Corporation

136,358,513

Fuyuan Hong

264,859

Formosa Petrochemical Corporation

47,152,986

Hongzhi Yang

147,854

Qiuming Chen

77,308

Dongteng Huang

33,408

Jianan Wu

27,783

Sunru Li

15,000

Yingda Fang

71

Changgeng Medical Treatment Incorporated Foundation

1,057,406,427

Shuiwen Hou

26,473

 

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

 

 

Subsidiaries & Branches

 

Branch Companies

1

Name

Taipei Branch

Address

2 Floor, No.24, 201 Tung Hwa North Road, Taipei, Taiwan

Registration Number

80026278

Date of Registration

2003-7-7

Status

Live Company

Manager Name

Fuyuan Hong

2

Name

Mailiao Branch

Address

No. 1-1, Formosa Plastics Group Industrial Zone, Mailiao ,Yun Lin County, Taiwan

Registration Number

89283092

Date of Registration

1994-9-16

Status

Live Company

Manager Name

Qiuming Chen

Date of Last Annual Return

2010-6-23

3

Name

Longde Branch

Address

No.2, 10 Longxiang Road, Tungshan Village, Ilan County, Taiwan

Registration Number

84309657

Date of Registration

1994-2-3

Status

Live Company

Manager Name

Jinfu Huang

Date of Last Annual Return

2004-12-24

4

Name

Yilan Branch

Address

No.155, Tanfu Road, Longtan village, Jiaosi Township, Ilan County, Taiwan

Registration Number

84309642

Date of Registration

1994-2-3

Status

Live Company

Manager Name

Jinfu Huang

Date of Last Annual Return

2004-12-21

5

Name

Hsinkang Branch

Address

1, Chung-Yang Industrial Park, Hsinkang Hsiang, Chiayi-Hsien, Taiwan

Registration Number

84309636

Date of Registration

1994-2-3

Status

Live Company

Manager Name

Wenyang Chen

Date of Last Annual Return

1996-4-25

 

 

Personnel Information

 

Core Management

Directors

1

Name

Wenyuan Wang

Position

Chairman

2

Name

Zhicun Li

Position

Managing Director

3

Name

Wenchao Wang

Position

Managing Director

4

Name

Ruiyu Wang

Position

Managing Director

5

Name

Ruilong Chen

Position

Managing Director/ Independent Director

6

Name

Zongyong Lin

Position

Independent Director

7

Name

Gong Wang

Position

Independent Director

8

Name

Fuyuan Hong

Position

Director/ Manager

Date of Appointment

2006-6-16

9

Name

Wenxiang Wang

Position

Director

10

Name

Hongzhi Yang

Position

Director

11

Name

Qiuming Chen

Position

Director/ Manager

Date of Appointment

2006-6-16

12

Name

Dongteng Huang

Position

Director/ Manager

Date of Appointment

2006-6-16

13

Name

Jianan Wu

Position

Director/ Manager

Date of Appointment

2006-6-16

14

Name

Sunru Li

Position

Director

15

Name

Yingda Fang

Position

Director/ Manager

Date of Appointment

2009-3-26

16

Name

Lirui Chen

Position

Supervisor

17

Name

Wenhua Gong

Position

Supervisor

18

Name

Shuiwen Hou

Position

Supervisor

19

Name

Guoming Hong

Position

Manager

Date of Appointment

2009-3-26

20

Name

Shengfu Lv

Position

Manager

Date of Appointment

2006-6-16

21

Name

Zhixiong Chen

Position

Manager

Date of Appointment

2009-3-26

22

Name

Liaochun Wang

Position

Manager

Date of Appointment

2006-6-16

23

Name

Qingci Lin

Position

Manager

Date of Appointment

2006-6-16

24

Name

Jizhu Zhang

Position

Manager

Date of Appointment

2011-11-29

25

Name

Wenjin Lv

Position

Manager

Date of Appointment

2011-11-29

 

Personnel Structure

Total Employees

About 4,000 Employees

 

 


Operation Information

 

Offices & Factories

 

Headquarters

Add

359, Chungshan Road, Sec. 3, Chang Hwa City, Chang Hwa County, Taiwan, R.O.C.

 

Production Information

l         Subject is engaged in manufacturing of chemicals, fibers, petrochemical and plastic materials.

l         Subject’s divisions are as follows for reference:

 

Division

Major Business

1st Petrochemicals Division

The major businesses of 1st Petrochemicals Division are manufacturing and sales of AROMA.

2nd Petrochemicals Division

The major businesses of 2nd Petrochemicals Division are manufacturing and sales of SM, phenol, and acetone.

3rd Petrochemicals Division

Its major businesses are manufacture and sales of PTA

Plastics Division

The Plastics Division engages mainly in the manufacture and sales of PS, ABS, SAN, ASA, PP, PC and PC/ABS alloys pellet.

Rayon Division

The major businesses of Rayon Division are manufacturing and sales of rayon staple fiber

Nylon Division

The nylon division engages in manufacturing and sales of nylon 6 chips, POY, HOY, FDY, DTY, tire cord yarn-N6 & N66, fishing net yarn and functional yarn

Textiles Division

The textiles division engages in manufacturing and sales of yarn, short-fiber cloth, and long-fiber cloth

Engineering Division

Engineering Division in charge of the supply of public utilities needed by different production lines

 

Purchase Information

l         The registered activities of subject:

Business Code

Details

A201010 

Afforestation business

A202040 

Felling operation

C301010 

manufacturing of yarn

C302010 

weaving cotton cloth

C801010 

Basic chemicals business

C801020 

Manufacturing of petrochemical materials

C801030 

Manufacturing of precision chemical materials

C801100 

Manufacturing of synthetic resin and plastic

C801120 

Manufacturing of artificial fiber

C801990 

Manufacturing of other chemical materials

C802080 

Manufacturing of environmental medicine

C802090 

Manufacturing of cleaning supplies

C802100 

Manufacturing of cosmetics

C901990 

Manufacturing of  other nonmetallic mineral

CB01010 

Manufacturing of mechanical equipment

CC01080 

Manufacturing of electronic components

E502010

Engineering of fuel line

E599010 

Engineering of tubing

E603010 

Installation of cable

E603040 

Installation of fire control equipment

E603090 

Installation of lighting equipment

F102040 

Wholesale of drink

F107030 

Wholesale of cleaning supplies

F107050 

Wholesale of fertilizer

F107080 

Wholesale of environmental medicine

F108040 

Wholesale of cosmetics

F203010 

Retail of food, and drink

F207030 

Retail of cleaning supplies

F207050 

Retail of fertilizer

F207080 

Retail of environmental medicine

F208040 

Retail of cosmetics

ZZ99999 

Besides licensed business, all other business items those are not banned or restricted.

l         The raw material for production is mostly purchased from domestic.

 

Sales Information

l         Subject is engaged in sales of chemicals, fibers, petrochemical and plastic materials.

l         The subject sells products in Asian, Europe and America, etc

Major products sold

Type

Product

Petrochemicals

Benzene

Para-Xylene (PX)

Ortho- Xylene (OX)

Styrene Monomer (SM)

Phenol

Acetone

PTA

Anhydrous Sodium-Sulfate

Plastic

Polystyrene (PS)

ABS Resin

PP Resin

PC Resin

PC/ABS Resin

SAN Resin

ASA Resin

Nylon-6 Resin

Textile, Fiber

Rayon Staple Fiber

Nylon Fiber

Yarn Products

Cloth Products

 

l         The Formosa Plastics Group diversified into the textile industry in 1965. It set up Formosa Chemicals and Fiber Corporation (FCFC) to produce rayon staple fiber, yarn, fabric, and garments, from the discarded wood left on the mountains after lumbering. In 1967 Formosa Plastics Corporation set up plants to produce acrylic fiber. In 1974 FCFC added nylon filament and fabric to its product lines. To offer better service to downstream customers, large-scale dyeing and finishing plants were set up to add to the value of the textile products. The companies were the only ones in Taiwan that produced four kinds of fibers and offered finishing and dyeing services.

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

Domestic Purchase (Taiwan and Mainland, China)

Product

Payment Terms

Proportion

Raw material

COD, CBD, etc

100%

 

Foreign Purchase

The subject seldom imports.

 

Sales

Domestic Markets (Taiwan)

Product

Sales Terms

Proportion

Chemicals, fibers, petrochemical and plastic materials

COD, CBD, Credit Sales, etc

100%

 

 

 

Export

Product

Sales Terms

Proportion

Chemicals, fibers, petrochemical and plastic materials

CBD, etc

100%

Notes: Subject’s settlement for export is generally in USD

 

 

Balance Sheet

 

Unit: NTD/000

Date

2012-3-31

2011-3-31

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

785,349.00

5,651,126.00

Financial assets measured at fair value through profit or loss - current

0.00

13,428.00

Available-for-sale financial assets - current

67,617,761.00

84,168,477.00

Notes receivable - net

738,507.00

601,736.00

Notes receivable - related parties - net

67,609.00

318,282.00

Accounts receivable - net

6,230,278.00

7,734,900.00

Accounts receivable - related parties - net

21,657,620.00

19,472,088.00

Other receivables

1,928,645.00

1,177,444.00

Other receivables - related parties

14,892,600.00

10,797,050.00

Inventories

30,751,956.00

26,938,445.00

Other current assets

3,615,549.00

4,351,735.00

Current assets

148,285,874.00

161,224,711.00

Funds and Investments

 

 

Available-for-sale financial assets - non current

6,736,462.00

0.00

Financial assets carried at cost - non current

3,770,824.00

5,064,584.00

Equity investments under equity method

144,503,944.00

149,691,887.00

Investments

144,503,944.00

149,691,887.00

Other financial assets - non current

875,224.00

1,068,624.00

Funds and long-term investments

155,886,454.00

155,825,095.00

Fixed Assets

 

 

Cost

 

 

Land

5,428,625.00

5,398,116.00

Buildings and structures

17,428,142.00

17,119,080.00

Machinery and equipment

149,294,376.00

148,429,528.00

Transportation equipment

489,374.00

506,796.00

Other facilities

3,209,050.00

3,156,356.00

Fixed assets cost

175,849,567.00

174,609,876.00

Accumulated depreciation

-109,575,063.00

-100,948,908.00

Construction in process and prepayment for equipments

4,145,214.00

3,840,141.00

Fixed assets

70,419,718.00

77,501,109.00

Intangible Assets

 

 

Other Assets

 

 

Deferred charges

4,842,952.00

3,617,661.00

Deferred income tax assets - non current

1,148,100.00

1,011,208.00

Other assets - other

918,594.00

1,023,028.00

Other assets

6,909,646.00

5,651,897.00

Assets

381,501,692.00

400,202,812.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Short-term borrowings

3,118,300.00

0.00

Financial liabilities measured at fair value through profit or loss - current

0.00

9,112.00

Accounts payable

3,236,585.00

2,043,338.00

Accounts payable - related parties

20,334,222.00

16,178,196.00

Income tax payable

2,235,608.00

3,693,210.00

Accrued expenses

3,280,621.00

3,246,503.00

Long-term liabilities - current portion

11,614,328.00

9,507,793.00

Other current liabilities

1,566,379.00

1,939,378.00

Current liabilities

45,386,043.00

36,617,530.00

Long term Liabilities

 

 

Financial liabilities measured at fair value through profit or loss - non current

124,567.00

184,886.00

Bonds payable

30,600,000.00

25,600,000.00

Long-term borrowings

39,941,938.00

31,946,274.00

Long-term notes and accounts payable

254,000.00

508,000.00

Long-term liabilities

70,920,505.00

58,239,160.00

Reserves

 

 

Other Liabilities

 

 

Pension reserve / accrued pension liability

6,225,070.00

5,895,255.00

Other liabilities - other

422,903.00

742,793.00

Other liabilities

6,647,973.00

6,638,048.00

Liabilities

122,954,521.00

101,494,738.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

56,904,721.00

56,904,721.00

Capital Surplus

 

 

Capital surplus - additional paid-in capital

8,224,586.00

8,224,586.00

Capital surplus - treasury stock transactions

71,934.00

30,064.00

Capital surplus - long-term equity investments

1,358,559.00

1,358,559.00

Capital surplus - other

204,224.00

204,224.00

Capital surplus

9,859,303.00

9,817,433.00

Retained Earnings

 

 

Legal reserve

36,359,812.00

31,632,294.00

Special reserve

33,721,775.00

33,721,775.00

Unappropriated retained earnings

53,020,585.00

82,433,347.00

Retained earnings

123,102,172.00

147,787,416.00

Stockholders' Equity and Other adjustment

 

 

Cumulative translation adjustments

-545,634.00

-2,071,020.00

Net loss not recognized as pension cost

-355,528.00

-143,174.00

Unrealized gains (losses) on financial instruments

69,906,258.00

86,736,819.00

 

-324,121.00

-324,121.00

Equity adjustments

68,680,975.00

84,198,504.00

Stockholders-equity

258,547,171.00

(USD 8,635,475,511.40)

298,708,074.00

(USD 9,976,849,671.60)

Number of treasury stock acquired by the company and subsidiaries (unit: share)

17,036,314.00

17,036,314.00

 

0.00

0.00

(As of 2012.07, 1 NTD = 0.0334 USD)

 


Profit and Loss Account

 

Unit: NTD/000

Date

2012-1-1~2012-3-31

2011-1-1~2011-3-31

Sales

79,608,473.00

(USD 2,658,922,998.20)

81,654,543.00

(USD 2,727,261,736.20)

Sales returns

11,049.00

430.00

Sales discounts and allowances

101,956.00

65,357.00

Sales

79,495,468.00

81,588,756.00

Service revenue

9.00

3,316.00

Service revenue

9.00

3,316.00

Other operating revenue

55,899.00

62,775.00

Operating income

79,551,376.00

81,654,847.00

Cost of sales

75,899,225.00

68,383,571.00

Operating costs

75,899,225.00

68,383,571.00

Gross profit (loss) from operations

3,652,151.00

13,271,276.00

Unrealized gains on intercompany transactions

239,098.00

589,400.00

Realized gains on intercompany transactions

566,144.00

205,796.00

Selling expense

975,589.00

935,875.00

General and administrative expenses

780,125.00

780,305.00

Operating expenses

1,755,714.00

1,716,180.00

Operating income (loss)

2,223,483.00

11,171,492.00

Non-Operating Income

 

 

Interest income

64,298.00

27,384.00

Income from long-term equity investments under the equity method

1,733,196.00

8,976,688.00

Investment income

1,733,196.00

8,976,688.00

Gains on disposal of fixed assets

1,000.00

0.00

Foreign exchange gains

0.00

269,672.00

Rent income

39,956.00

39,505.00

Revaluation gain on financial liabilities

27,372.00

6,571.00

Miscellaneous income

163,285.00

134,356.00

Non-operating revenues and gains

2,029,107.00

9,454,176.00

Non-Operating Expenses

 

 

Interest expense

363,915.00

289,013.00

Loss on disposal of fixed assets

0.00

1,680.00

Foreign exchange losses

184,812.00

0.00

Revaluation loss on financial assets

12,660.00

15,799.00

Miscellaneous disbursements

26,094.00

17,519.00

Non-operating expenses and losses

587,481.00

324,011.00

Income from continuing operations before income tax

3,665,109.00

20,301,657.00

Income tax expense (benefit)

315,920.00

1,974,907.00

Income from continuing operations

3,349,189.00

18,326,750.00

Net income (loss)

3,349,189.00

(USD 111,862,912.60)

18,326,750.00

(USD 612,113,450.00)

Primary Earnings per Share

 

 

Income (loss) from continuing operations

0.59

3.23

Primary earnings per share

0.59

3.23

Diluted earnings per share

 

 

 

(As of 2012.07, 1 NTD = 0.0334 USD)

 

Cash Flow

Unit: NTD/000

Date

2012-1-1~2012-3-31

2011-1-1~2011-3-31

Cash Flows from Operating Activities - Indirect Method

 

 

Net Income (Loss)

3,349,189

18,326,750

Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities

 

 

Depreciation Expense

2,218,114

2,170,231

Amortization Expense

732,258

575,631

Provision (Reversal of Provision) for Bad Debts Losses

0

0

Loss (Gain) on Decline (Recovery) in Market Value, Scrap and Obsolescence of Inventories

-25,401

-1,121

Investment Loss (Income) Recognized under Equity Method

-1,733,196

-8,976,688

Cash Dividends Received from Investments Accounted for under Equity Method

0

0

Loss (Gain) on Disposal of Property, Plan and Equipment

-1,000

1,680

Loss (Gain) on Disposal of Other Assets

0

0

Unrealized Revaluation Loss (Gain) on Financial Assets and Liabilities

-14,712

9,228

Changes in Operating Assets and Liabilities

 

 

Decrease (Increase) in Notes Receivable

-15,761

-9,017

Decrease (Increase) in Notes Receivable - Related Parties

466,486

76,859

Decrease (Increase) in Accounts Receivable

96,270

777,885

Decrease (Increase) in Accounts Receivable - Related Parties

-10,324,430

-4,225,287

Decrease (Increase) in Other Receivables

-259,706

779,837

Decrease (Increase) in Inventories

-2,461,371

-1,591,752

Decrease (Increase) in Other Current Assets

1,648,536

120,212

Decrease (Increase) in Deferred Tax Assets

143,418

795,681

Increase (Decrease) in Accounts Payable

1,061,460

191,001

Increase (Decrease) in Accounts Payable - Related Parties

7,402,180

-4,547,582

Increase (Decrease) in Income Tax Payable

172,502

1,187,268

Increase (Decrease) in Accrued Expenses

-404,111

-761,566

Increase (Decrease) in Other Current Liabilities

95,634

401,191

Increase (Decrease) in Accrued Pension Liabilities

54,208

94,684

Increase (Decrease) in Deferred Credits

-327,046

383,604

Net Cash Provided by (Used in) Operating Activities

1,873,521

5,778,729

Cash Flows from Investing Activities

 

 

Acquisition of Available-for-sale Financial Assets

0

0

Proceeds from Disposal of Available-for-sale Financial Assets

0

0

Proceeds from Disposal of Financial Assets Carried at Cost

0

0

Acquisition of Investments Accounted for by Equity Method

-160,763

-252,155

Proceeds from Disposal of Investments Accounted for by Equity Method

0

0

Proceeds from Capital Reduction of Investments Accounted for under Equity Method

0

0

Purchase of Property, Plant and Equipment

-423,502

-360,588

Proceeds from Disposal of Property, Plant and Equipment

8,894

4,358

Increase in Deferred Charges

-732,164

-532,614

Decrease (Increase) in Other Receivables - Related Parties

2,021,700

-2,730,500

Decrease (Increase) in Other Assets

-26,066

3,982

Net Cash Provided by (Used in) Investing Activities

688,099

-3,867,517

Cash Flows from Financing Activities

 

 

Increase (Decrease) in Short-term Loans

-973,800

0

Proceeds from Issuance of Bonds

0

0

Repayments of Bonds

0

0

Repayment of Long-term Debt

-1,571,712

-1,976,788

Increase (Decrease) in Guarantee Deposits Received

-1,766

-14,085

Increase (Decrease) in Other Payables - Related Parties

0

0

Increase (Decrease) in Other Liabilities

3,972

1,107

Cash Dividends Paid

0

0

Cash Bonus to Directors, Supervisors and Employees

0

0

Net Cash Provided by (Used in) Financing Activities

-2,543,306

-1,989,766

Effect of Exchange Rate Changes

8,817

-349,780

Net Increase (Decrease) in Cash and Cash Equivalents

27,131

-428,334

Cash and Cash Equivalents, Beginning of year

758,218

6,079,460

Cash and Cash Equivalents, End of year

785,349

5,651,126

Supplemental Cash Flow Information

 

 

Interest Paid

209,009

185,605

Interest Paid- Excluding Capitalized Interest

209,009

185,605

Income Tax Paid

0

0

Non-cash Investing and Financing Activities

 

 

Current Portion of Long-term Liabilities

11,614,328

9,507,793

Investing Activities Affecting Both Cash and Non-cash Items

 

 

Cash Paid for Acquisition of Property, Plant and Equipment

 

 

Increase in Property, Plant and Equipment

294,371

336,247

Increase (Decrease) in Payable for Equipment Purchased

129,131

24,341

Cash Paid for Acquisition of Property, Plant and Equipment

423,502

360,588

 

 

Bankers

 

Name

Taiwan Bank

 

 

Public Record

 

Mortgage

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

Lawsuit

Trial Number:

2004,Zhangxiaodiao, 29756

Date of Trial:

2004-10-29

Reason:

Labour dispute

 

 

 

Interview Details

 

Name

Mr. Wang

Department

Sales Department

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.46

UK Pound

1

Rs.87.63

Euro

1

Rs.71.11

 

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%)

 

 

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.