MIRA INFORM REPORT

Report Date :

30.10.2012

IDENTIFICATION DETAILS

Name :	PATECH FINE CHEMICALS CO., LTD.

Formerly Known As :	PATECH FINE CHEMICAL CO., LTD.

Registered Office :	No.41, Alley 1, Lane 420, Kuang-Fu S. Rd., Da-An Dist., Taipei City

Country :	Taiwan

Date of Incorporation :	01.02.2000

Com. Reg. No.:	70476582

Legal Form :	Joint Stock Company

Line of Business :	Manufacture and sales of Oleo-Chemical Derivatives, etc

No. of Employees :	Not Available

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:	Patech Fine Chemicals Co., Ltd.
Supplied Name:	Patech Fine Chemicals Co Ltd
Trading Address:	No.41, Alley 1, Lane 420, Kuang-Fu S. Rd., Da-An Dist., Taipei City, Taiwan, R.O.C.
Supplied Address:	41 Alley 1 Lane 420 Kuang Fu South Road Ta An Dist Taipei City 106
Telephone Number:	+886-2-2703-3268
Fax Number:	+886-2-2703-3176

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

Credit Summary

Credit Opinion:

Business connections are permissible.

Company Identification Details

Registered Name:	Patech Fine Chemicals Co., Ltd.
Registered Address:	No.41, Alley 1, Lane 420, Kuang-Fu S. Rd., Da-An Dist., Taipei City, Taiwan, R.O.C.
Date of Foundation:	2000-2-1
Registration Number:	70476582
Registry:	Taipei City Government
Registered Capital:	NTD 300,000,000 (USD 10,170,000) (As of 2012.10, 1 NTD = 0.0339 USD)
Paid-up Capital:	NTD 248,745,000 (USD 8,432,456)
Legal Representatives:	Yahuang Li
Legal Form:	Joint Stock Company
Principal Activities:	Manufacture and sales of Oleo-Chemical Derivatives, etc
Staff:	N/A
Listed at Stock Exchange:	No
Date of Last Annual Return:	2012-7-4

Notes: Subject did not introduce its staff number and from other source we can not obtain the relevant information, either.

History

Subject was incorporated on 2000-2-1 with registered number 70476582 as Joint Stock Company in Taiwan.

Change of Name

Former English Name	PATECH FINE CHEMICAL CO., LTD.
Current English Name	PATECH FINE CHEMICALS CO., LTD.

Awards

Year	Awards
2009	Blue chip importer and exporter
2010	Blue chip importer and exporter
2011	Blue chip importer and exporter

Standard of Blue chip importer and exporter

Unit: USD

Year	Amount
2009	15,000,000
2010	20,000,000
2011	22,000,000

Shareholders

Name	Subscription Shares
Yahuang Li	429,046
Yaoling Cai
319,950
Erxian Cai	714,725
Eryang Cai	36,800
Zhenxiang Cai	579,249

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

Subsidiaries & Branches

Other Address

1
Name	Factory
Address	No.20, Zhangbin E. 1st Rd., Xianxi Township, Changhua County 50741, Taiwan
Tel	+886-4-7588688
Fax:	+886-4-758869
2
European Business Manager:	Mr. Ranko Pilic
Tel:	+44 1892 615 698
Mobile:	+44 75 00 955 023

It is introduced that subject has warehouse in Europe and also has branch in Tokyo, while the details are not disclosed.

Personnel Information

Core Management

Directors

1
Name	Yahuang Li
Position	Board Chairman
2
Name	Yaoling Cai
Position	Director
3
Name	Erxian Cai
Position	Director
4
Name	Eryang Cai
Position	Director
5
Name	Zhenxiang Cai
Position	Director
6
Name	Weichen Wang
Position	Supervisor

Operation Information

Offices & Factories

	Headquarters
Add	No.41, Alley 1, Lane 420, Kuang-Fu S. Rd., Da-An Dist., Taipei City, Taiwan, R.O.C.

Production Information

l Subject is engaged in manufacture of Oleo-Chemical Derivatives, etc

l It is introduced that subject has been certificated by ISO9001:2000 and ISO14001:2004.

Purchase Information

l The registered activities of subject:

Business Code	Details
C801020	Manufacture of petrochemical materials
C802090	Manufacture of cleaning supplies
C802100	Manufacture of cosmetics
C802120	Manufacture of industrial additives
F107030	Wholesales of cleaning supplies
F107110	Wholesales of petrochemical materials
F108040	Wholesales of cosmetics
F107170	Wholesales of industrial additives
F207030	Retails of cleaning supplies
F207110	Retails of petrochemical materials
F207170	Retails of industrial additives
F208040	Retails of cosmetics
F401010	International Trading Business
F213080	Retails of Mechanical appliances
I103010	Enterprise Management Consultant Service
C105010	Manufacture of eatable oil and fat
F102020	Wholesales of eatable oil
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

l Subject purchases raw materials both at home and abroad.

Sales Information

l The subject is mainly engaged in sales of Oleo-Chemical Derivatives, etc

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

Major products

Special Plasticizers	Nontoxic Plasticizer Temperature Plasticizer Polymeric Plasticizer Viscosity Depressant
Lubricant for Plastics	Internal & External Lubricant for PVC Lubricant for TPU Lubricant for Engineering Plastics Lubricant for General Plastics
Base Oil for Lubricant	Lubricant for Industrial Lubricant for Automobile Lubricant for Textile
Esters for Cosmetics	Ester for Hair Care Ester for Skin Care Ester for Sunscreen Ester for Make-up
Refrigeration Lubricants	POE for HFC / HCFC / CO2 / HFO

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Product	Payment Terms	Proportion
Raw materials, etc	COD, Credit Sales, etc	100%

Foreign Purchase

Product	Payment Terms	Proportion
Raw materials, etc	CBD, etc	100%

Sales

Domestic Markets

Product	Sales Terms	Proportion
Chemicals	CBD, etc	100%

Export

Product	Sales Terms	Proportion
Chemicals	T/T in advance, L/C, 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 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.

Thus we can not obtain the supplied Bankers Chang Hwa Commercial Bank Limited

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

Department

Sales department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.81
UK Pound	1	Rs.86.52
Euro	1	Rs.69.50

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.