MIRA INFORM REPORT

Report Date :

21.05.2012

IDENTIFICATION DETAILS

Name :	ACELON CHEMICALS & FIBER CORPORATION

Registered Office :	No.94, Fan Chin Rd., Pu Yan Hsiang, Chang Hua Hsien

Country :	Taiwan

Financials (as on) :	31.03.2012

Date of Incorporation :	22.07.1988

Com. Reg. No.:	22976047

Legal Form :	Joint Stock Company

Line of Business :	Process and trade of chemical and fiber products.

No. of Employees :	About 500 Employees

RATING & COMMENTS

MIRA’s Rating :

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 31^st, 2012

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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:	ACELON CHEMICALS & FIBER CORPORATION
Supplied Name:	ACELON CHEMICALS & FIBER CORPORATION
Trading Address:	No.94, Fan Chin Rd., Pu Yan Hsiang, Chang Hua Hsien, Taiwan, R.O.C.
Supplied Address:	NO. 94, FAN CHIN ROAD PU YANG HSIANG Taiwan
Telephone Number:	+886-4-7638869
Fax Number:	+886-4-7626831
E-mail:	service1@acelon.com.tw

Notes:

The supplied address is incomplete, and the exact address is as above.

Credit Summary

Credit Opinion:

Business connections are permissible.

Company Identification Details

Registered Name:	ACELON CHEMICALS & FIBER CORPORATION
Registered Address:	No.94, Fan Chin Rd., Pu Yan Hsiang, Chang Hua Hsien, Taiwan, R.O.C.
Date of Foundation:	1988-7-22
Registration Number:	22976047
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 2,000,000,000 (USD 67,590,400) (As of 2012.5, 1 NTD = 0.03380 USD)
Paid-up Capital:	NTD 952,617,070 (USD 32,193,900)
Legal Representatives:	Wendong Zhou
Legal Form:	Joint Stock Company
Principal Activities:	Process and trade of chemical and fiber products.
Staff:	About 500 Employees
Listed at Stock Exchange:	Yes (Public, TPE: 1466)
Date of Last Annual Return:	2011-8-3

History

Subject was incorporated on 1988-7-22 with registered number 22976047 as Joint Stock Company in Taiwan.

Subject was listed on Taiwan Stock Exchange on 1998-04-04.

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 Amount
Wendong Zhou	1,457,592
Mingyi Lai
4,808,681
Shanming Investment Development Co., Ltd (translated)	1,362,532
Chentai Techonology Co., Ltd (translated)	1,362,163
Dongjun Investment Co., Ltd (translated)	999,226
Jianhong International Co., Ltd (translated)	1,144,000
Wenbo Yang	680,564
Xiufeng Huang	1,172,453
Cornucopia Globle Investment Co., Ltd (translated)	1,435,680

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

Subsidiaries & Branches

Office:

Address	No. 105-4, Chang Lu Road, Chang Hua City, Taiwan
Telephone Number	+886-4-7638869
Fax Number	+886-4-7626831

Personnel Information

Core Management

Directors

1
Name	Wendong Zhou
Position	Board of Chairman
2
Name	Mingyi Lai
Position	Director
3
Name	Yibang Lin
Position	Director
4
Name	Chentai Techonology Co., Ltd
Position	Director
5
Name	Dongjun Investment Co., Ltd
Position	Director
6
Name	Jianhong International Co., Ltd
Position	Director
7
Name	Wenbo Yang
Position	Supervisor
8
Name	Xiufeng Huang
Position	Supervisor
9
Name	Cornucopia Globle Investment Co., Ltd
Position	Supervisor

Personnel Structure

Total Employees

About 500 Employees

Operation Information

Offices & Factories

	Headquarters
Add	No.94, Fan Chin Rd., Pu Yan Hsiang, Chang Hua Hsien, Taiwan, R.O.C.

Production Information

l Subject is a processor of chemical and fiber products with the production activities

Purchase Information

l The registered activities of subject:

Business Code	Details
C301010	Spinning Industry
CI01010	Manufacture of cable
I502010	Design Industry
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 local.

Sales Information

l Subject is mainly engaged in processing and trading of chemical and fiber products and the related products.

l Subject introduced that its major products sold as following:

	Product
1	NYLON 6 YARN
2	POLYESTER YARN
3	NYLON/POLYESTER CONJUGATE YARN
4	FUNCTIONAL YARN
5	COOL YARN
6	Others

l Subject’s selling territory covers all over the world.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Subject declined to disclose the settlements information, and from other sources, we couldn’t obtain the information, either.

Balance Sheet

Unit: NTD/000

	2012-3-31	2011-3-31
Assets
Current Assets
Cash and cash equivalents	168,172.00	77,987.00
Financial assets measured at fair value through profit or loss - current	0	5,006.00
Notes receivable - net	145,483.00	273,749.00
Accounts receivable - net	307,487.00	362,503.00
Other receivables	25,846.00	25,217.00
Inventories	785,448.00	667,963.00
Prepaid expenses	55,675.00	34,488.00
Other current assets	32,739.00	57,369.00
Current assets	1,520,850.00	1,504,282.00
Funds and Investments
Equity investments under equity method	19,785.00	0
Investments	19,785.00	0
Funds and long-term investments	19,785.00	0
Fixed Assets
Cost
Land	258,236.00	148,485.00
Buildings and structures	550,864.00	530,771.00
Machinery and equipment	2,933,621.00	3,125,415.00
Transportation equipment	1,039.00	5,062.00
Office equipment	3,014.00	19,838.00
Leasehold improvements	15,215.00	16,592.00
Other facilities	329,291.00	408,806.00
Revaluation increment	164,452.00	74,615.00
Cost and revaluation increment	4,255,732.00	4,329,584.00
Accumulated depreciation	-3,046,095.00	-3,485,417.00
Accumulated impairment - fixed assets	NA	NA
Construction in process and prepayment for equipments	19,824.00	128,382.00
Fixed assets	1,220,461.00	963,549.00
Intangible Assets
Deferred pension cost	3,515.00	4,103.00
Intangible assets	3,515.00	4,103.00
Other Assets
Rental assets	80,498.00	80,498.00
Guarantee deposits paid	4,994.00	40,512.00
Deferred charges	17,142.00	11,535.00
Long-term notes and accounts receivable	0	0
Deferred income tax assets - non current	13,146.00	29,305.00
Other assets - other	7,589.00	1,910.00
Other assets	123,369.00	163,760.00
Assets	2,887,980.00	2,635,694.00
Liabilities and Stockholders' Equity
Liabilities
Current Liabilities
Short-term borrowings	30,000.00	89,495.00
Short-term notes and bills payable	199,352.00	123,675.00
Financial liabilities measured at fair value through profit or loss - current	4,830.00	0
Notes payable	47,648.00	102,926.00
Accounts payable	385,599.00	342,974.00
Income tax payable	2,814.00	68,798.00
Accrued expenses	146,670.00	112,065.00
Other payables - related parties	542	2,431.00
Other payables	14,125.00	64,192.00
Advance receipts	107,947.00	76,469.00
Long-term liabilities - current portion	4,550.00	32,660.00
Other current liabilities	1,635.00	1,859.00
Current liabilities	945,712.00	1,017,544.00
Long term Liabilities
Bonds payable	276,117.00	0
Long-term borrowings	15,545.00	123,517.00
Long-term liabilities	291,662.00	123,517.00
Reserves
Reserve for land revaluation increment tax	18,115.00	0
Reserves	18,115.00	0
Other Liabilities
Pension reserve / accrued pension liability	24,950.00	31,014.00
Guarantee deposits received	2,740.00	2,740.00
	5,309.00	5,313.00
Other liabilities - other	0	4,259.00
Other liabilities	32,999.00	43,326.00
Liabilities	1,288,488.00	1,184,387.00
Stockholders' Equity
Capital
Common stock	952,617.00	915,978.00
Capital Surplus
Capital surplus - additional paid-in capital	210,000.00	210,000.00
Capital surplus - employee stock option	27,453.00	27,453.00
Capital surplus - stock option	23,520.00	0
Capital surplus	260,973.00	237,453.00
Retained Earnings
Legal reserve	8,915.00	0
Special reserve	14,788.00	0
Unappropriated retained earnings	231,015.00	238,703.00
Retained earnings	254,718.00	238,703.00
Stockholders' Equity and Other adjustment
Net loss not recognized as pension cost	-14,500.00	-14,789.00
Unrealized Revaluation Increment	146,337.00	74,615.00
	-653	-653
Equity adjustments	131,184.00	59,173.00
Stockholdersˉ equity	1,599,492.00	1,451,307.00
Number of treasury stock acquired by the company and subsidiaries (unit: share)	91,475.00	87,958.00

Profit and Loss Accounts

Unit: NTD/000

	2011-4-1 To 2012-3-31	2010-4-1 To 2011-3-31
Sales	1,508,182.00	1,704,867.00
Sales returns	13,663.00	6,769.00
Sales	1,494,519.00	1,698,098.00
Operating income	1,494,519.00	1,698,098.00
Cost of sales	1,375,204.00	1,439,248.00
Operating costs	1,375,204.00	1,439,248.00
Gross profit (loss) from operations	119,315.00	258,850.00
Selling expense	45,060.00	36,570.00
General and administrative expenses	14,972.00	31,374.00
Research and development expenses	14,961.00	8,957.00
Operating expenses	74,993.00	76,901.00
Operating income (loss)	44,322.00	181,949.00
Non-Operating Income
Interest income	31	432
Income from long-term equity investments under the equity method	0	0
Investment income	0	0
Gains on disposal of fixed assets	0	0
Gains on sale of investments	0	2
Foreign exchange gains	0	0
Rent income	36	36
Revaluation gain on financial liabilities	1,440.00	0
Miscellaneous income	3,557.00	2,442.00
Non-operating revenues and gains	5,064.00	2,912.00
Non-Operating Expenses
Interest expense	5,132.00	2,450.00
Losses from long-term equity investments under the equity method	36	20
Investment loss	36	20
Loss on disposal of fixed assets	255	0
Foreign exchange losses	5,320.00	1,468.00
Miscellaneous disbursements	1	818
Non-operating expenses and losses	10,744.00	4,756.00
Income from continuing operations before income tax	38,642.00	180,105.00
Income tax expense (benefit)	18,021.00	30,554.00
Income from continuing operations	20,621.00	149,551.00
Net income (loss)	20,621.00	149,551.00
Primary Earnings per Share
Primary earnings per share	0.22	1.57
Diluted earnings per share
Diluted earnings per share	0.22	1.57

Bankers

The bankers’ information is not available from the subject or other sources.

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. Lin

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.87
UK Pound	1	Rs.86.46
Euro	1	Rs.69.49

INFORMATION DETAILS

Report Prepared by :

PRL

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.