MIRA INFORM REPORT

Report Date :

01.11.2012

IDENTIFICATION DETAILS

Name :	CHAO YEE & CO., LTD.

Registered Office :	15f, No.1, Fu Hsing N. Rd., Taipei

Country :	Taiwan

Date of Incorporation :	06.07.1985

Com. Reg. No.:	21266722

Legal Form :	Limited Liability Company

Line of Business :	Trading of watches.

No. of Employees :	About 15 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 :	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

(31.03.2011)

Current Rating

(30.06.2012)

Taiwan

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:	CHAO YEE & CO., LTD.
Supplied Name:	CHAO YEE & CO LTD.
Trading Address:	15f, No.1, Fu Hsing N. Rd., Taipei, Taiwan, R.O.C.
Supplied Address:	15 FL, 1 Fu Hsin North Road Sungshan Dist. Taipei City 105
Telephone Number:	+886 2-27211985
Fax Number:	+886 2-27116882

Notes:

The exact name and address are as above.

Credit Summary

Credit Opinion:

Business connections are permissible.

Company Identification Details

Registered Name:	CHAO YEE & CO., LTD.
Registered Address:	15f, No.1, Fu Hsing N. Rd., Taipei, Taiwan, R.O.C.
Date of Foundation:	1985-7-6
Registration Number:	21266722
Registry:	Taipei City Government
Registered Capital:	NTD 5,000,000 (USD 170,871) (As of 2012.11, 1 NTD = 0.03417 USD)
Legal Representatives:	Jianhui Shi
Legal Form:	Limited Liability Company
Principal Activities:	Trading of watches.
Staff:	About 15 Employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	2000-5-9

History

Subject was incorporated on 1985-7-6 with registered number 21266722 as Limited Liability Company in Taiwan.

Shareholders

(Unit: NTD)

Name

Subscription Amount

Jianhui Shi

3,000,000

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

Name	Jianhui Shi
Position	Director

Personnel Structure

Total Employees

About 15 Employees

Operation Information

Offices & Factories

	Headquarters
Add	15f, No.1, Fu Hsing N. Rd., Taipei, Taiwan, R.O.C.

Production Information

l Subject is a trader of watches without any production activities

Purchase Information

l The registered activities of subject:

Business Code	Details
1	Manufacture and trade of watches and clocks.
2	Trade of jewelry
3	Trade of clothes, hardware and construction materials
4	General trade
5	Investment and trade of the products above.
6	Distribution of the products above.

l The productions are mostly purchased from abroad.

Sales Information

l Subject is mainly engaged in trading of watches and the related products.

l Subject introduced that it mainly sells the Swiss watches, brand ORIS.

l ORIS is a famous Swiss watch brand, and it established in 1904’s in Holstein.

l Subject’s selling territory is local market, Taiwan.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

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

Sales

Domestic Markets (Taiwan)

Product	Sales Terms	Proportion
ORIS watches	COB, CBD, etc	100%

Export

Subject seldom exports.

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

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. Chen

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.12
UK Pound	1	Rs.87.07
Euro	1	Rs.70.15

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%)

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