MIRA INFORM REPORT

Report Date :

27.10.2012

IDENTIFICATION DETAILS

Name :	HSING KU ENTERPRISES CO., LTD.

Registered Office :	1F., No.166, SEC. 1, Changhe Rd., Annan Dist., Tainan City 709

Country :	Taiwan

Date of Incorporation :	02.03.1974

Com. Reg. No.:	69282335

Legal Form :	Private Limited Company

Line of Business :	Trading of stainless steel scraps, etc

No. of Employees :	Over 1,000 employees (Group)

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 :	Satisfactory
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

(31.03.2012)

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:	Hsing Ku Enterprises Co., Ltd.
Supplied Name:	Hsku Raw Material Ltd
Trading Address:	1F., No.166, SEC. 1, Changhe Rd., Annan Dist., Tainan City 709, Taiwan (R.O.C.)
Supplied Address:	Block 166 of Sec 1 Chang He Road Tainan
Telephone Number:	+886-6-3960777
Fax Number:	+886-6-3960566
E-mail:	stainless@hsku.com

Notes: Subject’s exact name and address are as above.

Credit Summary

Credit Opinion:

Business connections are permissible.

Company Identification Details

Registered Name:	HSING KU ENTERPRISES CO., LTD.
Registered Address:	1F., No.166, SEC. 1, Changhe Rd., Annan Dist., Tainan City 709, Taiwan (R.O.C.)
Date of Foundation:	1974-3-2
Registration Number:	69282335
Registry:	Tainan City Government
Registered Capital:	NTD 14,000,000 (USD 474,600) (As of 2012.10, 1 NTD = 0.0339 USD)
Legal Representatives:	Jiben Yang
Legal Form:	Private Limited Company
Principal Activities:	Trading of stainless steel scraps, etc
Staff:	Over 1,000 employees (Group)
Listed at Stock Exchange:	No
Date of Last Annual Return:	2012-4-2

History

Subject was incorporated on 1974-3-2 with registered number 69282335 as Private Limited Company in Taiwan.

Shareholders

(Unit: NTD)

Name

Subscription Amount

Jiben Yang

3,500,000

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

Subsidiaries & Branches

Related Company

Name	HSKU STAINLESS PROCESSING LTD
Address	Block 166 Of. Sec. 1 Chang-He Road, Tainan, Taiwan. Postcode: 709
Telephone Number	+886-6-396-0777
Fax Number	+886-6-396-0566

It is introduced that Subject also has 3 yards in Taiwan, one in Malaysia, one in Hong Kong and Two in the mainland of China

Personnel Information

Core Management

Director

Name	Jiben Yang
Position	Director

Personnel Structure

Total Employees

Over 1,000 employees (Group)

Operation Information

Offices & Factories

	Headquarters
Add	1F., No.166, SEC. 1, Changhe Rd., Annan Dist., Tainan City 709, Taiwan (R.O.C.)

Production Information

l Subject is mainly engaged in trading of stainless steel scraps, etc

Purchase Information

l The registered activities of subject:

1	Sales of all kinds of hardware
2	Cutting, processing and sales of hardware products including stainless steel sheet, cooper sheet and aluminum sheet
3	waste removal and processing business
4	Sales of stainless steel scraps and iron scraps
5	Import and export trading business of the above mentioned business

l It is introduced that Subject purchases stainless steel scraps mainly from Taiwan.

Sales Information

l The subject is mainly engaged in sales of stainless steel scraps such as Stainless steel mixture, 304 stainless steel scrap, 304 stainless steel Lathe dusts, 316 stainless steel scraps, 316 stainless steel Lathe dusts and all kinds of Ni, Cr and Mo scraps (309,310,330, Hastelloy, Inconel, Haynes), Ti, W, Co and Nb scraps, etc

l Subject also supplies other stainless steel raw materials.

l Subject’s products are both sold in domestic and overseas market.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Product	Payment Terms	Proportion
Stainless steel scraps, etc	CBD, COD, etc	100%

Foreign Purchase

Subject has little import business

Sales

Domestic Markets

Product	Sales Terms	Proportion
Stainless steel scraps, etc	CBD, COD, etc	100%

Export

Product	Sales Terms	Proportion
Stainless steel scraps, 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 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

Subject declined to disclose its bank details; 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

Up to date of reporting, no existing or latent litigation of the subject has been found.

Interview Details

Name	Ms. Chen
Department	Sales department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.63
UK Pound	1	Rs.86.18
Euro	1	Rs.69.75

INFORMATION DETAILS

Report Prepared by :

MNL

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.