MIRA INFORM REPORT

Report Date :

04.05.2012

IDENTIFICATION DETAILS

Name :	SHE HONG INDUSTRIAL CO., LTD.

Registered Office :	No.6, Road 6, Industrial Area, Taichung

Country :	Taiwan

Date of Incorporation :	23.12.1970

Com. Reg. No.:	51321357

Legal Form :	Joint Stock Company

Line of Business :	Manufacture and trading of CNC machinery, etc.

No. of Employees :	About 450 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 :	Exists

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^th, 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:	She Hong Industrial Co., Ltd.
Supplied Name:	She Hong Industrial Co Ltd.
Trading Address:	No.6, Road 6, Industrial Area, Taichung Taiwan R.O.C.
Supplied Address:	No. 6, 6th Road, Industrial Area Taichung, Taiwan
Telephone Number:	+886-4-23592747
Fax Number:	+886-4-23592837

Notes: The exact subject’s name and address are as above mentioned.

Company Identification Details

Registered Name:	She Hong Industrial Co., Ltd.
Registered Address:	No.6, Road 6, Industrial Area, Taichung Taiwan R.O.C.
Date of Foundation:	1970-12-23
Registration Number:	51321357
Registry:	Ministry of Economic Affairs Central Office
Registered Capital:	NTD 462,000,000.00 (USD 15,246,000.00) (As of 2012.1, 1 NTD = 0.033 USD)
Paid-up Capital:	NTD 462,000,000.00 (USD 15,246,000.00)
Legal Representatives:	Jianzhi Chen
Legal Form:	Joint Stock Company
Principal Activities:	Manufacture and trading of CNC machinery, etc.
Staff:	About 450 employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	2011-12-22

History

Subject was incorporated on 1970-12-23 with registered number 51321357 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
Jianzhi Chen	181,215
You Su
54,882
Pinwan Chen	53,060
Guanling Chen	53,060

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

Personnel Information

Core Management

Directors

1
Name	Jianzhi Chen
Position	Chairman
2
Name	You Su
Position	Director
3
Name	Pinwan Chen
Position	Director
4
Name	Guanling Chen
Position	Supervisor

Personnel Structure

Total Employees

About 450 employees

Operation Information

Offices & Factories

	Headquarters
Add	No.6, Road 6, Industrial Area, Taichung Taiwan R.O.C.

Production Information

l Subject produces CNC machines, etc.

l Subject has its factory in Taiwan.

Purchase Information

l The registered activities of subject:

Business Code	Details
1	Manufacture, process, wholesales and trading of Automobile, motorcycle, machine parts
2	Manufacture, process, wholesales and trading of Daily hardware utensils
3	Manufacture, process, wholesales and trading of Machinery and hardware tools
ZZ99999	Besides licensed business, all other business items those are not banned or restricted

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.

Sales Information

l The subject is mainly engaged in manufacturing and processing of various CNC machines, etc.

l Subject has both domestic and foreign markets.

l Subject exports to Asian, European, American countries.

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

Notes: Subject seldom imports.

Sales

Domestic Markets

Product	Sales Terms	Proportion
CNC machines, etc.	COD, CBD, etc.	100%

Export

Product	Sales Terms	Proportion
CNC machines, etc.	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 Mr. You declined to disclose its financials citing the grounds of company’s confidentiality; 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

1
Court No.:	97, Toujian, 17
Date:	2008-7-23
Reason:	Confirm the existence of employment relationship
2
Court No.:	97, Toujian, 17
Date:	2008-7-1
Reason:	Confirm the existence of employment relationship
3
Court No.:	97, Toujian, 170
Date:	2008-1-23
Reason:	Confirm the existence of employment relationship
4
Court No.:	95, Zhongpu, 979
Date:	2006-8-15
Reason:	Payment of severance

Interview Details

Name

Mr. You

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.23
UK Pound	1	Rs.86.14
Euro	1	Rs.69.98

INFORMATION DETAILS

Report Prepared by :

PDT

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.