MIRA INFORM REPORT

Report Date :

17.02.2012

IDENTIFICATION DETAILS

Name :	STANDARD CHEM. & PHARM. CO., LTD.

Registered Office :	No.6-20, Tu-Ku, Tu-Ku Village, Xinying Dist., Tainan City 730

Country :	Taiwan

Financials (as on) :	30.09.2011

Date of Incorporation :	30.06.1967

Com. Reg. No.:	71122503

Legal Form :	Joint Stock Company

Line of Business :	Manufacture and trading of chemicals, etc.

No. of Employees :	About 1,000 employees

RATING & COMMENTS

MIRA’s Rating :

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

Maximum Credit Limit :	USD 30,000
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 – September 30, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Taiwan

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

Contact Points

Company Name:	Standard Chem. & Pharm. Co., Ltd.
Supplied Name:	Shandard Chem And Pharma Co Ltd
Trading Address:	No. 154, Kai-Yuan Road, Hsin-Ying (730) Taiwan
Supplied Address:	6-20, Tu-Ku Li Hsinying City, Postal address : Tainan Hsien, 73042
Telephone Number:	+886-6-6361516
Fax Number:	+886-6-6332775

Notes:

The correct subject’s name and address are as above mentioned.

Credit Summary

Credit Rating:	Maximum credit USD 30,000
Credit Opinion:	Business connections are permissible.

Company Identification Details

Registered Name:	Standard Chem. & Pharm. Co., Ltd.
Registered Address:	No.6-20, Tu-Ku, Tu-Ku Village, Xinying Dist., Tainan City 730, Taiwan (R.O.C.)
Date of Foundation:	1967-6-30
Registration Number:	71122503
Registry:	Department of Commerce
Registered Capital:	NTD 2,000,000,000.00 (USD 66,000,000.00) (As of 2012.1, 1 NTD = 0.033 USD)
Paid-up Capital:	NTD 1,684,189,890.00 (USD 55,578,266.37)
Legal Representatives:	Jincai Fan
Legal Form:	Joint Stock Company
Principal Activities:	Manufacture and trading of chemicals, etc.
Staff:	About 1,000 employees
Listed at Stock Exchange:	Yes, Stock Symbol: 1720
Date of Last Annual Return:	2011-1-5

History

Subject was incorporated on 1967-6-30 with registered number 71122503 as Joint Stock Company in Taiwan.

Shareholders

(Unit: NTD)

Name	Subscription Amount
Jincai Fan	21,136,813
Foundation Fan Daonan	4,752,881
Yuanfeng Gao	16,182
Cuiwen Ye	1,340,669

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

Subsidiaries & Branches

Subject did not register any subsidiaries or branches, from other source we can not obtain the relevant information, either.

Personnel Information

Core Management

Directors

1
Name	Jincai Fan
Position	Chairman
2
Name	Foundation Fan Daonan
Position	Director
3
Name	Zhenming Xiao
Position	Director
4
Name	Juncai Qiu
Position	Director
5
Name	Jiaxiu Lin
Position	Director
6
Name	Yuanfeng Gao
Position	Supervisor
7
Name	Cuiwen Ye
Position	Supervisor

Personnel Structure

Total Employees

About 1,000 employees

Operation Information

Offices & Factories

	Headquarters
Add	No.6-20, Tu-Ku, Tu-Ku Village, Xinying Dist., Tainan City 730, Taiwan (R.O.C.)

Production Information

l Subject produces chemicals, etc.

l Subject has its factory in Taiwan.

Purchase Information

l The registered activities of subject:

Business Code	Details
C110010	Manufacture of beverage
F102040	Wholesales of beverage
C199990	Unallocated other food manufacturing
F102170	Wholesales of food
F203010	Retails of food, beverage
C201010	Wholesales of feed
F103010	Wholesales of feed
F202010	Retails of feed
C801110	Manufacture of Fertilizer
F107050	Wholesales of Fertilizer
F207050	Retails of Fertilizer
C802041	Manufacture of medicine
F108021	Wholesales of medicine
F208021	Retails of medicine
C802051	Manufacture of Traditional Chinese medicine
F108011	Wholesales of Traditional Chinese medicine
F208011	Retails of Traditional Chinese medicine
C802100	Manufacture of Cosmetic
F108040	Wholesales of Cosmetic
F208040	Retails of Cosmetic
CE01010	Manufacture of General Instrument
CF01011	Manufacture of medical instrument
F108031	Wholesales of medical instrument
F208031	Retails of medical instrument
C802060	Manufacture of animal medicine
F107070	Wholesales of animal medicine
F207070	Retails of animal medicine
F401010	International trade
H701040	Development of industry specific professional area
H701060	New towns, new community development industry
I103060	Management consulting
ZZ99999	Besides licensed business, all other business items those are not banned or restricted

l The components and raw material for production are mostly purchased from domestic and abroad.

l The subject has a proportion of 50% for Import

Sales Information

l The subject is mainly engaged in manufacturing and processing of various chemicals, etc

l Subject’s products include Medicine, health products, animal drugs, cosmetics and pharmaceuticals, etc.

l Subject has both domestic and foreign markets.

l Subject exports to Malaysia, Vietnam, etc.

l The subject has a proportion of 50% for export.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Product	Payment Terms	Proportion
Components and raw material	COD, CBD, etc.	100%

Foreign Purchase

Product	Payment Terms	Proportion
Components and raw material	CBD, etc.	100%

Sales

Domestic Markets

Product	Sales Terms	Proportion
Chemicals, etc.	COD, CBD, etc.	100%

Export

Product	Sales Terms	Proportion
Chemicals, etc.	CBD, etc.	100%

Balance Sheet

Unit: NTD/000

	2011-9-30	2010-9-30
Assets
Current assets
Cash and cash equivalents	174,251.00	219,638.00
Financial assets measured at fair value through profit or loss - current	10,762.00	10,966.00
Notes receivable - net	257,277.00	240,964.00
Notes receivable - net	5,503.00	25,565.00
Accounts receivable - net	316,062.00	409,252.00
Other receivables	15,537.00	24,805.00
Inventories	389,109.00	339,039.00
Prepayment	46,962.00	29,380.00
Other current assets	10,312.00	12,067.00
Current assets	1,225,775.00	1,311,676.00
Funds and investments
Financial assets measured at fair value through profit or loss - non current	82,985.00	127,671.00
Financial assets carried at cost - non current	64,126.00	78,126.00
Equity investments under equity method	1,198,339.00	946,645.00
Investments	1,198,339.00	946,645.00
Funds and long-term investments	1,345,450.00	1,152,442.00
Fixed assets
Cost
Land	101,810.00	101,810.00
Buildings and structures	582,140.00	497,968.00
Machinery and equipment	520,302.00	495,717.00
Hydropower Equipment	153,811.00	118,613.00
Other facilities	651,619.00	532,772.00
Revaluation increment	126,481.00	126,481.00
Cost and revaluation increment	2,136,163.00	1,873,361.00
Accumulated depreciation	-915,840.00	-889,252.00
Construction in process and prepayment for equipments	114,493.00	140,813.00
Fixed assets	1,334,816.00	1,124,922.00
Intangible assets
Cost of computer software	6,250.00	5,684.00
Deferred pension cost	-	2,307.00
Intangible assets	6,250.00	7,991.00
Other assets
Idled assets	34,896.00	34,992.00
Guarantee deposits paid	3,762.00	3,303.00
Deferred charges	13,380.00	9,588.00
Deferred income tax assets - non current	28,102.00	24,663.00
Other assets	80,140.00	72,546.00
Assets	3,992,431.00	3,669,577.00
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term borrowings	270,000.00	40,000.00
Short-term notes and bills payable	20,000.00	-
Financial liabilities measured at fair value through profit or loss - current	5,770.00	3,459.00
Note payable	174,308.00	219,340.00
Accounts payable	76,097.00	35,776.00
Accounts payable - related parties	5,739.00	4,692.00
Income tax payable	-	24,497.00
Accrued expenses	98,413.00	91,648.00
Other payables	48,522.00	41,966.00
Receipts in advance	13,514.00	24,356.00
Long-term liabilities due within one year or one operating cycle	229,555.00	-
Current liabilities	941,918.00	485,734.00
Long term liabilities
Bonds payable	-	257,285.00
Long-term borrowings	-	257,285.00
Various preparations
Land value increment tax preparation	44,116.00	44,116.00
Total preparation	44,116.00	44,116.00
Other liabilities
Pension reserve / accrued pension liability	228,382.00	205,645.00
Guarantee deposits	405.00	460.00
Other liabilities - other	3,436.00	3,436.00
Other liabilities	232,223.00	209,541.00
Other liabilities	1,218,257.00	996,676.00
Stockholders' equity
Capital
Common stock	1,686,330.00	1,561,114.00
Capital surplus
Capital surplus - additional paid-in capital	226,295.00	197,220.00
Capital surplus - treasury stock transactions	1,347.00	1,347.00
Capital surplus - stock options	41,852.00	48,855.00
Capital surplus	269,494.00	247,422.00
Retained earnings
Legal reserve	360,710.00	339,705.00
Unappropriated retained earnings	401,946.00	421,267.00
Retained earnings	762,656.00	760,972.00
Stockholders' equity and other adjustmen
Cumulative translation adjustments	-5,452.00	-4,233.00
Unrealized gains (losses) on financial instruments	-59,864.00	-58,070.00
Equity adjustments	55,694.00	103,393.00
Stockholdersˉ equity	2,774,174.00	2,672,901.00
Number of treasury stock acquired by the company and subsidiaries (unit: share)	214,000.00	214,000.00

Profit and Loss Account

Unit: NTD/000

Date	2010-10-1 ~2011-9-30	2009-10-1 ~2010-9-30
Sales	1,833,474.00	1,880,600.00
Sales discounts and allowances	306,703.00	277,849.00
Operating income	1,513,245.00	1,586,254.00
Cost of sales	892,017.00	891,031.00
Operating costs	892,017.00	891,031.00
Gross profit (loss) from operations	621,228.00	695,223.00
Marketing expenses	274,639.00	263,583.00
General and administrative expenses	92,865.00	95,965.00
Research and development expenses	89,972.00	73,582.00
Selling expense	457,476.00	433,130.00
Operating income (loss)	163,752.00	262,093.00
Non-Operating Income
Interest income	134.00	363.00
Investment income	10,421.00	6,502.00
Investment income of equity method	1,546.00	-
Dividend income	8,875.00	6,502.00
Interests of disposal of fixed assets	285.00	-
Disposal of investments	11,543.00	-
Exchange gains	1,687.00	-
Rent income	1,200.00	972.00
Revaluation gain on financial assets	-	43.00
Revaluation gain on financial liabilities	-	3,306.00
Miscellaneous income	17,182.00	16,346.00
Non-Operating Expenses	42,452.00	27,532.00
Non-Operating Expenses
Interest expense	6,706.00	6,204.00
Loss on disposal of fixed assets	3,010.00	5,310.00
Miscellaneous disbursements	85.00	99.00
Non-operating expenses and losses	13,834.00	44,323.00
Income from continuing operations before income tax	192,370.00	245,302.00
Income tax expense (benefit)	18,774.00	52,218.00
Income from continuing operations	173,596.00	193,084.00
Net income (loss)	173,596.00	193,084.00
Primary Earnings per Share
Primary earnings per share	0.99	1.12
Diluted earnings per share	0.99	1.12

Public Record

Mortgage

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

Lawsuit

1
Court No.:	100, Nanjian, 546
Date:	2011-7-4
Reason:	Debt clearance
2
Court No.:	100, Nanxiao, 162
Date:	2011-3-22
Reason:	Debt clearance

Interview Details

Name

Ms. Lin

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.25
UK Pound	1	Rs.77.45
Euro	1	Rs.64.89

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.