MIRA INFORM REPORT

Report Date :

26.12.2013

IDENTIFICATION DETAILS

Name :	FORMOSA PLASTICS CORPORATION
Registered Office :	No.39, Chung Shan 3rd Rd., Kaohsiung City
Country :	Taiwan
Financials (as on) :	31.12.2012
Date of Incorporation :	05.11.1954
Com. Reg. No.:	75708007
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and sales of chemical materials, products
No. of Employees :	About 4,400

RATING & COMMENTS

MIRA’s Rating :

Ba

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 – March, 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Taiwan	A2	A2

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. 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 1.8%, due primarily to a 13.1% year-on-year decline in exports. In 2010 GDP grew 10.7%, as exports returned to the level of previous years, and in 2011, grew 4.0%. In 2012, however, growth fell to 1.3%, 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 except for the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, so far Taiwan has been excluded from this greater economic integration in part because of its diplomatic status. Negotiations continue on such follow-on components of ECFA regarding trade in goods and services. The MA administration has said that the ECFA will serve as a stepping stone toward trade pacts with other key trade partners, which Taiwan subsequently launched with Singapore and New Zealand. 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 11.2% of the island's total population as of 2012. The island runs a large trade surplus largely because of its surplus with China, and its foreign reserves are the world's fifth largest, behind China, Japan, Saudi Arabia, and Russia. In 2006 China overtook 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. In August 2012, Taiwan Central Bank signed a memorandum of understanding on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese RMB and the New Taiwan dollar across the Strait, which could help develop Taiwan into a local RMB hub. 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:	FORMOSA PLASTICS CORPORATION
Supplied Name:	Formosa Plastics Corporation
Trading Address:	201, Tung Hwa North Road, Taipei
Supplied Address:	201, Tung Hwa North Road, Taipei
Telephone Number:	+886-2-2712-2211
Fax Number:	+886-2-2717-8108
E-mail:	formosa@fpc.com.tw

Notes: The exact name and address are as above.

Company Identification Details

Registered Name:	Formosa Plastics Corporation
Registered Address:	No.39, Chung Shan 3rd Rd., Kaohsiung City, Taiwan, R.O.C.
Date of Foundation:	1954-11-5
Registration Number:	75708007
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 63,657,407,810 (USD 2,157,986,125) (As of 2013.12, 1 NTD = 0.0339 USD)
Paid-up Capital:	NTD 63,657,407,810 (USD 2,157,986,125)
Legal Representatives:	Zhicun Li
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sales of chemical materials, products
Staff:	About 4,400 Employees
Listed at Stock Exchange:	Yes Stock Symbol: TPE:1301
Date of Last Annual Return:	2013-8-6

History

Subject was incorporated on 1954-11-5 with registered number 75708007 as Joint Stock Company in Taiwan.

The subject has listed on Taiwan exchange at 1964-7-24 with the stock symbol: 1301.

Shareholders

Name	Subscription Shares
Zhicun Li	1,262,541
Formosa Chemicals & Fibre Corporation
486,889,130
Nan Ya Plastics Corp.	294,793,105
Formosa Petrochemical co.	131,460,365
Xuehong Wang	7,369,380
Hongtong Stock Limited Company (Liberal translation)	11,461
Zongjing Huang	86,307
Zhenrong Lin	17,957
Zifeng Zhang	3,338
Wenqin Xiao	6,685
Chang Gung Medical Foundation	601,011,035
Minting He	27,824,363
Guoxiong Wu	134,537

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

Shareholder Information:

1
Registered Name:	Formosa Chemicals & Fibre Corp.
Registered Address:	No. 359, Chungshan Road, Sec. 3, Chang Hwa City, Chang Hwa County, Taiwan, R.O.C.
Date of Foundation:	1965-3-5
Registration Number:	58650902
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 58,611,862,910 (USD 1,986,942,153) (As of 2013.12, 1 NTD = 0.0339 USD)
Paid-up Capital:	NTD 58,611,862,910 (USD 1,986,942,153)
Legal Representatives:	Wenyuan Wang
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2013-8-15
2
Registered Name:	NAN YA PLASTICS CORPORATION
Registered Address:	NO.35-1, JHONGSHAN 3RD RD., CIANJHEN DISTRICT, KAOHSIUNG CITY 806, TAIWAN R.O.C.
Date of Foundation:	1958-8-22
Registration Number:	75370905
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 79,308,215,890 (USD 2,688,548,518) (As of 2013.12, 1 NTD = 0.0339 USD)
Paid-up Capital:	NTD 79,308,215,890 (USD 2,688,548,518)
Legal Representatives:	Jiazhao Wu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2013-8-27
3
Registered Name:	Formosa Petrochemical Corporation
Registered Address:	No.1-1,Formosa Plastic Group Industrial Zone, Mai-Liao Township, Yunlin County, Taiwan, R. O. C.
Date of Foundation:	1992-4-6
Registration Number:	86522210
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 95,259,596,520 (USD 3,229,300,322) (As of 2013.12, 1 NTD = 0.0339 USD)
Paid-up Capital:	NTD 95,259,596,520 (USD 3,229,300,322)
Legal Representatives:	Baolang Chen
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2013-6-25
4
Registered Name:	Hongtong Stock Limited Company (Liberal translation)
Registered Address:	4F, No. 38, 2sec, Nanjingdong Road, Zhongshan District, Taipei
Date of Foundation:	2004-1-15
Registration Number:	80664633
Registry:	Taipei City Government
Registered Capital:	NTD 5,000,000 (USD 169,500) (As of 2013.12, 1 NTD = 0.0339 USD)
Paid-up Capital:	NTD 5,000,000 (USD 169,500)
Legal Representatives:	Yongxiang Zhang
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2013-11-29

Subsidiaries & Branches

Branch Companies

1
Name	Mailiao Plant
Registration Number	84896537
Date of Registration	1994-9-9
Registered Address	1,Formosa Plastics Group Industrial zone, Mailiao ,Yun Lin County
Status	Live Company
Manager Name	Jianrong Lu
Telephone Number	+886-5-681-2345
Date of Last Annual Return	2009-3-25
2
Name	Hsinkang Plant
Registration Number	84708802
Date of Registration	1994-3-7
Registered Address	3, Chung-yang Industrial park, Hsinkang Hsiang, Chiayi-Hsien
Status	Live Company
Manager Name	Jianrong Lu
Telephone Number	+886-5-377-2111
Date of Last Annual Return	2009-3-25
3
Name	Ilan Plant
Registration Number	84708795
Date of Registration	1994-3-7
Registered Address	201, Tungfu Road, Tungshan Village, Ilan County
Status	Live Company
Manager Name	Wesong Zhang
Telephone Number	+886-39-59-1134
Date of Last Annual Return	1999-3-29

Factories

1
Name	Jenwu Factory
Address	100, Shwei Gwan Road, Jenwu Syang, Kaohsiung-Hsien
Telephone Number	+886-7-371-1411
2
Name	Linyuan Factory
Address	1, Shih-hwa First Road, Linyuan Village, Kaohsiung-Hsien
Telephone Number	+886-7-641-9911

Office

Name	Taipei Office
Address	201, Tung Hwa North Road, Taipei
Telephone Number	+886-2-2712-2211

Personnel Information

Core Management

Directors

1
Name	Zhicun Li
Position	Board Chairman
2
Name	Wenyuan Wang
Position	Executive Director
3
Name	Ruihua Wang
Position	Executive Director
4
Name	Wenchao Wang
Position	Executive Director
5
Name	Qilin Wei
Position	Independent Director
6
Name	Deshan Wang
Position	Independent Director
7
Name	Qingji Wu
Position	Independent Director
8
Name	Xuehong Wang
Position	Director
9
Name	Yurui Zhang
Position	Director
10
Name	Jiannan Lin
Position	Director/Manager
Date of Appointment	2005-8-26
11
Name	Zongjing Huang
Position	Director/Manager
Date of Appointment	2004-2-25
12
Name	Zhengrong Lin
Position	Director/Manager
Date of Appointment	2007-3-23
13
Name	Zifeng Zhang
Position	Director
14
Name	Wenqin Xiao
Position	Director/Manager
Date of Appointment	2009-3-17
15
Name	Chengzhong Cheng
Position	Director/Manager
Date of Appointment	2009-6-5
16
Name	Qiufeng He
Position	Supervisor
17
Name	Minting He
Position	Supervisor
18
Name	Guoxiong Wu
Position	Supervisor
19
Name	Wensong Zhang
Position	Manager
Date of Appointment	2003-3-6
20
Name	Tianxiang Li
Position	Manager
Date of Appointment	2010-12-24
21
Name	Guangming Chen
Position	Manager
Date of Appointment	2011-6-20
22
Name	Jianshan Yang
Position	Manager
Date of Appointment	2013-3-25
23
Name	Jinlong Huang
Position	Manager
Date of Appointment	2013-3-25

Personnel Structure

Total Employees

About 4,400 Employees

Operation Information

Offices & Factories

	Headquarters
Add	No.39, Chung Shan 3rd Rd., Kaohsiung City, Taiwan, R.O.C.

Production Information

· The subject is a manufacturer of chemical materials, products

· It is introduced that subject has factories in Kaohsiung City, Ilan County, Taiwan for production.

· It is introduced that subject has obtained ISO 14000, ISO 14001 and OHSAS 18001 certification.

· It is introduced that subject is subject’s annual capacity of PVC resins is about 1,301,000 MT per year.

Purchase Information

The registered activities of subject:

Business Code	Details
B202010	Industry of non-metal.
C199990	Manufacturing of undivided other food.
C801010	Industry of basic chemistry.
C801020	Manufacturing of petrochemical materials.
C801100	Manufacturing of synthetic resin and plastic cement.
C801120	Manufacturing of artificial fiber.
C801990	Manufacturing of other chemical materials.
C802120	Manufacturing of industrial additives.
C802170	Manufacturing of toxic chemicals.
C805020	Manufacturing of plastic films and bags.
C901070	Manufacturing of stone products.
CB01010	Manufacturing of machinery.
CC01080	Manufacturing of electronic components.
D101050	Manufacturing of cogeneration industry.
D301010	Operating of tap water.
D401010	Heat supply industry.
E603050	Automatic control equipment engineering industry.
H701010	Development, renting and sales of residence and building.
H701040	Development of specific area.
ID01010	Certifying of instruments for measuring distance, area and weight.
IZ99990	Servicing of other trading business.
J101050	Servicing of environment monitoring.
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

· It is introduced that subject purchases raw materials and etc both in domestic and overseas market.

· It is introduced that subject imports technologies from Japan

Major materials and purchasing regions

Materials	Region
Ethylene	Taiwan, Japan
VCM	Japan, Taiwan
EDC	Taiwan
Salt	Japan, et
AN	Taiwan
Propylene	Taiwan
Dust Coal	Taiwan, Indonesia

Sales Information

The subject is mainly engaged in sales of chemical materials, products

It is introduced that subject’s selling territory includes china, America, Middle East, South East Asia, Europe, Australia and Japan

It is introduced that subject’s major customers are manufacturers of plastic products

It is introduced that subject cooperates with Fujitsu Hitachi Plasma Display Corporation and AU Optronics Corporation

Major Products

Product	Sales Region
Plastic materials	PVC resins, VCM, caustic soda, hydrochloric acid, MBS, HDPE, EVA/LDPE and LLDPE
Plastic products	Shopping bag, shopping bag, garbage bag, breathable film
Calcium carbide products	Calcium carbide, calcium carbonate, Optimal calcium, quicklime and Light calcium glue

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

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

Foreign Purchase

Product	Payment Terms	Proportion
Raw materials	CBD and etc	100%

Sales

Domestic Markets

Product	Sales Terms	Proportion
Chemical materials, products	COD, CBD and etc	100%

Export

Product	Sales Terms	Proportion
Chemical materials, products	CBD and etc	100%

Balance Sheet

Unit: NTD/000

Date	2012-12-31	2011-12-31
Assets
Current Assets
Cash and cash equivalents	1,783,038.00	1,022,948.00
Financial assets measured at fair value through profit or loss - current	0.00	12,543.00
Available-for-sale financial assets - current	58,452,143.00	62,173,408.00
Notes receivable - net	264,859.00	233,113.00
Accounts receivable - net	5,399,245.00	5,452,470.00
Accounts receivable - related parties - net	5,825,497.00	5,585,830.00
Other receivables	1,050,604.00	1,094,849.00
Other receivables - related parties	28,304,073.00	27,005,344.00
Inventories	16,530,987.00	18,548,820.00
Other prepayments	2,007,916.00	2,408,168.00
	0.00	177,895.00
Other current assets	0.00	82,040.00
Current assets	119,618,362.00	123,797,428.00
Funds and Investments
Available-for-sale financial assets - non current	8,723,986.00	4,916,968.00
Financial assets carried at cost - non current	2,416,168.00	3,022,618.00
Equity investments under equity method	149,468,847.00	146,081,983.00
Investments	149,468,847.00	146,081,983.00
Funds and long-term investments	160,609,001.00	154,021,569.00
Fixed Assets
Cost
Land	6,755,927.00	6,763,260.00
Buildings and structures	20,405,645.00	20,149,045.00
Machinery and equipment	121,223,513.00	116,435,254.00
Other facilities	4,242,712.00	4,000,249.00
Revaluation increment	466,839.00	469,856.00
Cost and revaluation increment	153,094,636.00	147,817,664.00
Accumulated depreciation	-106,681,823.00	-99,852,759.00
Construction in process and prepayment for equipments	5,867,245.00	5,999,397.00
Fixed assets	52,280,058.00	53,964,302.00
Intangible Assets
Goodwill	124,762.00	124,762.00
Other intangible assets	47,809.00	333,685.00
Intangible assets	172,571.00	458,447.00
OtherAssets
Idled assets	182,328.00	182,328.00
Guarantee deposits paid	60,460.00	66,584.00
Deferred charges	517,698.00	638,291.00
Other assets - other	10,486,620.00	5,414,032.00
Other assets	11,247,106.00	6,301,235.00
Assets	343,927,098.00	338,542,981.00
Liabilities and Stockholders' Equity
Liabilities
Current Liabilities
Short-term borrowings	9,061,121.00	2,207,643.00
Short-term notes and bills payable	8,198,406.00	0.00
Financial liabilities measured at fair value through profit or loss - current	5,866.00	0.00
Accounts payable	3,229,206.00	2,915,978.00
Accounts payable - related parties	9,898,103.00	8,640,870.00
Accrued expenses	4,535,450.00	4,820,694.00
Other payables - related parties	6,295.00	3,081.00
Other payables	440,755.00	1,708,137.00
Long-term liabilities - current portion	10,423,854.00	7,378,012.00
Other current liabilities	1,555,787.00	1,326,286.00
Current liabilities	47,354,843.00	29,000,701.00
Long term Liabilities
Financial liabilities measured at fair value through profit or loss - non current	0.00	14,369.00
Bonds payable	39,917,889.00	27,950,138.00
Long-term borrowings	17,870,003.00	29,199,905.00
Long-term liabilities	57,787,892.00	57,164,412.00
Reserves
Other Liabilities
Pension reserve / accrued pension liability	7,924,760.00	7,611,834.00
Deferred income tax liabilities	3,819,031.00	3,268,740.00
Other liabilities - other	420,104.00	241,821.00
Other liabilities	12,163,895.00	11,122,395.00
Liabilities	117,306,630.00	97,287,508.00
Stockholders' Equity
Capital
Common stock	61,209,046.00	61,209,046.00
Capital Surplus
Capital surplus - additional paid-in capital	8,130,081.00	8,130,081.00
Capital surplus - other	4,699,468.00	4,699,640.00
Capital surplus	12,829,549.00	12,829,721.00
Retained Earnings
Legal reserve	39,801,369.00	36,228,923.00
Special reserve	30,717,624.00	24,676,397.00
Unappropriated retained earnings	38,937,749.00	58,372,520.00
Retained earnings	109,456,742.00	119,277,840.00
Stockholders' Equity and Other adjustmen
Cumulative translation adjustments	625,749.00	2,633,628.00
Unrealized gains (losses) on financial instruments	42,319,003.00	45,124,859.00
Unrealized Revaluation Increment	180,379.00	180,379.00
Equity adjustments	43,125,131.00	47,938,866.00
Stockholdersˉ equity	226,620,468.00 (USD 7,682,433,865)	241,255,473.00 (USD 8,178,560,535)
Number of treasury stock acquired by the company and subsidiaries (unit: share)	0.00	0.00
	0.00	0.00

1 NTD = 0.0339 USD

Profit and Loss Account

Unit: NTD/000

Date	2012	2011
Sales	173,143,020.00 (USD 5,869,548,378)	187,668,319.00 (USD 6,361,956,014)
Sales returns	75,638.00	20,751.00
Sales discounts and allowances	32,578.00	44,254.00
Sales	173,034,804.00	187,603,314.00
Operating income	173,034,804.00	187,603,314.00
Cost of sales	158,252,452.00	155,840,930.00
Operating costs	158,252,452.00	155,840,930.00
Gross profit (loss) from operations	14,782,352.00	31,762,384.00
Realized gains on intercompany transactions	11,513.00	12,653.00
Selling expense	4,689,043.00	4,270,181.00
General and administrative expenses	3,429,218.00	3,830,896.00
Research and development expenses	931,348.00	1,125,070.00
Operating expenses	9,049,609.00	9,226,147.00
Operating income (loss)	5,744,256.00	22,548,890.00
Non-Operating Income
Interest income	404,615.00 (USD 13,716,449)	374,179.00 (USD 12,684,668)
Inome from long-term equity investments under the equity method	7,470,231.00	14,277,437.00
Dividends	2,750,558.00	5,352,429.00
Investment income	10,220,789.00	19,629,866.00
Gains on disposal of fixed assets	1,028,649.00	150,852.00
Foreign exchange gains	0.00	476,833.00
Rent income	96,695.00	100,995.00
Revaluation gain on financial assets	0.00	6,229.00
Revaluation gain on financial liabilities	8,504.00	7,703.00
Miscellaneous income	356,337.00	559,440.00
Non-operating revenues and gains	12,115,589.00	21,306,097.00
Non-Operating Expenses
Interest expense	1,103,153.00	983,772.00
Foreign exchange losses	308,860.00	0.00
Impairment loss on assets	0.00	2,251,150.00
Revaluation loss on financial assets	7,839.00	0.00
Miscellaneous disbursements	35,470.00	57,921.00
Non-operating expenses and losses	1,455,322.00	3,292,843.00
Income from continuing operations before income tax	16,404,523.00	40,562,144.00
Income tax expense (benefit)	1,742,003.00	4,837,686.00
Income from continuing operations	14,662,520.00	35,724,458.00
Net income (loss)	14,662,520.00	35,724,458.00
Primary Earnings per Share
Primary earnings per share	2.40	5.84
Diluted earnings per share

1 NTD = 0.0339 USD

Cash Flow

Date	2012	2011
Cash Flows from Operating Activities - Indirect Method
 Net Income (Loss)	14,662,520.00	35,724,458.00
 Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities
 Depreciation Expense	7,251,757.00	9,530,192.00
 Amortization Expense	547,293.00	778,422.00
 Provision (Reversal of Provision) for Bad Debts Losses	(194.00)	(226,742.00)
 Amortization of Discounts (Premiums) on Bonds Payable	21,526.00	16,496.00
 Loss (Gain) on Decline (Recovery) in Market Value, Scrap and Obsolescence of Inventories	743,921.00	(246,903.00)
 Investment Loss (Income) Recognized under Equity Method	(7,470,231.00)	(14,277,437.00)
 Cash Dividends Received from Investments Accounted for under Equity Method	5,921,631.00	12,785,748.00
 Loss (Gain) on Disposal of Property, Plan and Equipment	(14,556.00)	(5,307.00)
 Property, Plan and Equipment Transferred to Expenses	901.00	2,772.00
 Loss (Gain) on Disposal of Idle Assets	0.00	(145,545.00)
 Loss (Gain) on Disposal of Non-current Assets Classified as Held for Sale	(1,014,093.00)	0.00
 Impairment Losses on Financial Asset	0.00	2,251,150.00
 Unrealized Gain (Loss) on Intercompany Transactions	(11,513.00)	(12,653.00)
 Unrealized Exchange Loss (Gain)	(324.00)	4,480.00
 Loss (Gain) on Deferred Income Tax	917,174.00	2,737,814.00
 Other Revenue - Overdue Dividends And Compensation of Board And Directors	(7,258.00)	(11,460.00)
 Changes in Operating Assets and Liabilities
 Decrease (Increase) in Financial Assets Held for Trading	4,040.00	(45.00)
 Decrease (Increase) in Notes Receivable	(31,723.00)	4,984.00
 Decrease (Increase) in Accounts Receivable	60,041.00	750,711.00
 Decrease (Increase) in Accounts Receivable - Related Parties	(239,667.00)	(339,946.00)
 Decrease (Increase) in Other Receivables	44,245.00	(56,277.00)
 Decrease (Increase) in Other Receivable- Related Parties	(661,541.00)	107,630.00
 Decrease (Increase) in Inventories	1,439,054.00	(4,637,222.00)
 Decrease (Increase) in Other Prepayments	400,252.00	(398,030.00)
 Increase (Decrease) in Accounts Payable	313,228.00	762,758.00
 Increase (Decrease) in Accounts Payable - Related Parties	1,257,233.00	(3,291,807.00)
 Increase (Decrease) in Accrued Expenses	(285,244.00)	273,797.00
 Increase (Decrease) in Other Payables	(1,287,698.00)	(870,523.00)
 Increase (Decrease) in Other Payable - Related Parties	3,214.00	983.00
 Increase (Decrease) in Other Current Liabilities	222,813.00	(325,025.00)
 Increase (Decrease) in Accrued Pension Liabilities	312,925.00	247,357.00
 Increase (Decrease) in Deferred Credits	0.00	40,953.00
Net Cash Provided by (Used in) Operating Activities	23,099,726.00	41,175,783.00
Cash Flows from Investing Activities
 Acquisition of Available-for-sale Financial Assets	(2,250,000.00)	(6,000,000.00)
 Acquisition of Investments Accounted for by Equity Method	(4,186,197.00)	(4,847,463.00)
 Proceeds from Disposal of Non-current Assets Classified as Held for Sale	1,191,988.00	0.00
 Purchase of Property, Plant and Equipment	(5,748,902.00)	(3,312,540.00)
 Proceeds from Disposal of Property, Plant and Equipment	29,901.00	13,244.00
 Proceeds from Disposal of Rental Assets and Idle Assets	0.00	172,951.00
 Decrease (Increase) in Refundable Deposits	6,124.00	1,089.00
 Increase in Deferred Charges	(140,823.00)	(374,687.00)
 Decrease (Increase) in Other Receivables - Related Parties	(440,000.00)	(7,396,800.00)
 Decrease (Increase) in Other Assets	(5,072,588.00)	(302,496.00)
 Net Cash Provided by (Used in) Investing Activities	(16,610,497.00)	(22,046,702.00)
Cash Flows from Financing Activities
 Increase (Decrease) in Short-term Loans	6,854,890.00	1,603,967.00
 Increase (Decrease) in Short-term Notes and Bills Payable	8,198,406.00	0.00
 Proceeds from Issuance of Bonds	20,945,275.00	9,972,980.00
 Repayments of Bonds	(6,000,000.00)	(5,000,000.00)
 Proceeds from Long-term Debt	12,600,000.00	30,300,000.00
 Repayment of Long-term Debt	(23,883,110.00)	(18,382,328.00)
 Increase (Decrease) in Other Liabilities	15,509.00	46,234.00
 Cash Dividends Paid	(24,456,215.00)	(41,574,100.00)
 Net Cash Provided by (Used in) Financing Activities	(5,725,245.00)	(23,033,247.00)
Effect of Exchange Rate Changes	(3,894.00)	(764.00)
Net Increase (Decrease) in Cash and Cash Equivalents	760,090.00	(3,904,930.00)
Cash and Cash Equivalents, Beginning of year	1,022,948.00	4,927,878.00
Cash and Cash Equivalents, End of year	1,783,038.00	1,022,948.00
Supplemental Cash Flow Information
 Interest Paid	1,134,007.00	1,058,097.00
 Capitalized Interest	(71,753.00)	(54,215.00)
 Interest Paid- Excluding Capitalized Interest	1,062,254.00	1,003,882.00
 Income Tax Paid	2,084,912.00	2,938,849.00
Non-cash Investing and Financing Activities
 Current Portion of Long-term Liabilities	1,429,902.00	1,383,110.00
 Current Portion of Bonds Payable	8,993,952.00	5,994,902.00
 Property, Plan and Equipment Transferred to Inventories	165,143.00	119,064.00
 Property, Plan and Equipment Transferred to Non-current Assets Classified as Held for Sale	0.00	177,895.00
 Cash Dividends Payable	0.00	0.00
 Financial Assets Carried at Cost Reclassified as Available for Sale Financial Assets	606,450.00	0.00
 Others	162,774.00	201,028.00

Bankers

Subject did not introduce its bank details; from other source we can not obtain the relevant information.

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	Mr. Lin
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.87
UK Pound	1	Rs.101.10
Euro	1	Rs.84.65

INFORMATION DETAILS

Report Prepared by :

NNA

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.