MIRA INFORM REPORT

Report Date :

30.03.2013

IDENTIFICATION DETAILS

Name :	NAN YA PLASTICS CORPORATION
Registered Office :	No.35-1, Jhongshan 3rd Rd., Cianjhen District, Kaohsiung City 806
Country :	Taiwan
Financials (as on) :	31.12.2012
Date of Incorporation :	22.08.1958
Com. Reg. No.:	75370905
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and sales of plastic products, fiber products, electronic materials and petrochemical products, etc.
No. of Employees :	About 12,000 Employees

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Very good
Payment Behaviour :	Regular
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	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. 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:	Nan Ya Plastics Corporation
Supplied Name:	NANYA PLASTICS CORPORATION
Trading Address:	No. 201, Tung Hwa North Road, Taipei City, Taiwan
Supplied Address:	Electronic Materials Division 201, Tung hwa N. Road, Taipei
Telephone Number:	+886-2 2712-2211
Fax Number:	+886-2 2717-8533
E-mail:	nanya@npc.com.tw
Website:	www.npc.com.tw

Notes: The exact address is as above.

Company Identification Details

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:	Ministry of Economic Affairs
Registered Capital:	NTD 78,522,986,030 (USD 2,661,929,226.41) (As of 2013.03, 1 NTD = 0.0339 USD)
Paid-up Capital:	NTD 78,522,986,030 (USD 2,661,929,226.41)
Legal Representatives:	Qinren Wu
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sales of plastic products, fiber products, electronic materials and petrochemical products, etc
Staff:	About 12,000 Employees
Listed at Stock Exchange:	Yes; Stock Symbol: 1303
Date of Last Annual Return:	2012-7-10

History

Subject was incorporated on 1958-08-22 with registered number 75370905 as Company Limited By Shares in Taiwan.

Subject was listed on Taiwan Stock Exchange on 1967-11-5.

Shareholders

Name	Subscription Shares
Chin-Jen Wu	66,746
Wenyuan Wang
622,603
Formosa Petrochemical Corporation	177,440,023
Formosa Chemicals & Fiber Corp.	409,235,397
Yunpeng Zhu	1,188
Fulin Investment Co., Ltd. (Literal Translation)	3,254,923
Zhangdian Power Engineering Co., Ltd. (Literal Translation)	30,000
Zhaolin Yang	25,211
Jiazhao Wu	78,248
Mingren Zou	186,874
Guiyun Wang	11,164,111
Taiwan Plastics Industry Co., Ltd	775,505,323
Deyao Chen	291

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

Subsidiaries & Branches

Related Companies

1
Name	Nan Ya Technology Corporation
Address	Hwa Ya Technology Park, 669, Fu Hsing 3rd Rd., Kueishan, Taoyuan 333, Taiwan
Tel	+886-3-328-1688
Fax	+886-3-396-0997
2
Name	Inotera Memories Inc
Address	667, Fuhsing 3rd Rd, Hwa-Ya Technology Park, Kueishan, Taoyuan 333, Taiwan
Tel	+886-3-327-2988
3
Name	Nan Ya Printed Circuit Board Corp
Address	No.338, Sec.1 Nankan Rd., Luchu Hsiang, Taoyuan County, Taiwan
Tel	+886-3-322-3751
4
Name	Nan Ya Plastic Corporation America
Address	9 Peach Tree Hill Road, Livingston, NJ 07039
Tel	+1-973-992-2090
Fax	+1-973-716-7470
5
Name	Nan Ya Photonics Inc.
Address	No. 55, Wei Wang St., Shu-Lin, Taipei County, Taiwan238, R.O.C.
Tel	+886-2-2680-6311
Fax	+886-2-2680-9611

Branch Companies

1
Name	Mailiao Branch
Address	No.1-1, Formosa Industrial Park, Sansheng Village, Miaoliao Township, Yunlin County, Taiwan
Registration Number	84897162
Date of Registration	1994-10-3
Status	Live Company
Manager Name	Yizhong Cai
Date of Last Annual Return	2009-4-3日
2
Name	Xingang Branch
Address	No.2, Zhongyang Industrial Park, Zhongyang Village, Xingang Township, Jiayi County, Taiwan
Registration Number	84709751
Date of Registration	1994-03-17
Status	Live Company
Manager Name	Mingren Zheng
Date of Last Annual Return	1998-8-24
3
Name	Taipei Branch
Address	1^st Floor, No.201, Dunhua North Road, Taipei City, Taiwan
Registration Number	20754420
Date of Registration	1966-06-27
Status	Live Company
Manager Name	Peihuo Cai
Date of Last Annual Return	2003-9-26

Personnel Information

Core Management

Directors

1
Name	Qinren Wu
Position	Board Chairman
2
Name	Wenyuan Wang
Position	Executive Director
3
Name	Wenchao Wang
Position	Executive Director
4
Name	Ruiyu Wang
Position	Executive Director
5
Name	Zhigang Wang
Position	Executive Director/ Independent Director
6
Name	Yongsan Li
Position	Independent Director
7
Name	Yunpeng Zhu
Position	Independent Director
8
Name	Shenyi Li
Position	Director
9
Name	Qingzheng Zhang
Position	Director
10
Name	Ziwen Yang
Position	Director
11
Name	Zhaolin Yang
Position	Director
12
Name	Jiazhao Wu
Position	Director/ Manager
Date of Appointment	2003-11-4
13
Name	Mingren Zou
Position	Director
Date of Appointment	2005-8-25
14
Name	Guiyun Wang
Position	Director
Date of Appointment	1993-8-27
15
Name	Zhenling Lin
Position	Director
16
Name	Chenqing Fu
Position	Supervisor
17
Name	Deyao Chen
Position	Director
18
Name	Fengqin Lin
Position	Manager
Date of Appointment	2003-11-4
19
Name	Yuanshan Liu
Position	Manager
Date of Appointment	1993-2-26
3
Name	Maoxiang Lin
Position	Manager
Date of Appointment	2004-3-3
4
Name	Hongguo Zheng
Position	Manager
Date of Appointment	2009-8-28
5
Name	Yizhong Cai
Position	Manager
Date of Appointment	2009-8-28
6
Name	Bing Wu
Position	Manager
Date of Appointment	2009-8-28
7
Name	Zhengzhong Li
Position	Manager
Date of Appointment	2009-8-28
8
Name	Xinyi Huang
Position	Manager
Date of Appointment	2009-8-28
9
Name	Dongfa Zhang
Position	Manager
Date of Appointment	2012-3-23

Personnel Structure

Total Employees

About 12,000 Employees

Operation Information

Offices & Factories

	Headquarters
Add	No.35-1, Jhongshan 3rd Rd., Cianjhen District, Kaohsiung City 806, Taiwan (R.O.C.)

Production Information

l Subject is engaged in manufacturing of plastic products, fiber products, electronic materials and petrochemical products, etc.

l It is introduced that subject has factories in Taiwan, mainland China and USA for production and the annual production capacities are as followed for reference.

Product	Annual Production Capacity (Unit: Ton)
AA/AE	108,000/154,000
PVC	494,000
VCM	800,000
Caustic Soda	1230,000
HDPE	350,000
Carbon Fiber	8,800
EVA/LDPE	240,000
AN	280,000
LLDPE	264,000
MMA	98,000
MTBE/B-1	174,000/32,000
ECH	100,000
NBA	250,000

Purchase Information

l The registered activities of subject:

Business Code	Details
C301010	Spinning industry
C302010	Weaving industry
C303010	Unwoven cloth industry
C305010	Dyeing and finishing industry
C601040	Finished paper manufacturing industry
C601990	Other paper products manufacturing industry
C801010	Basic chemical industry
C801020	Raw materials for Petrochemical industry manufacturing industry
C801060	Synthetic rubber manufacturing industry
C801100	Synthetic resin and plastic manufacturing industry
C801110	Fertilizer manufacturing industry
C801120	Synthetic fiber manufacturing industry
C801990	Other chemical material manufacturing industry
C802041	Western medicine manufacturing industry
C802120	Industrial aid manufacturing industry
C802170	Toxic chemicals manufacturing industry
C802200	Coating, paint and dye manufacturing industry
C805010	Plastic, cloth, plate and tubular product manufacturing industry
C805020	Plastic film and bag manufacturing industry
C805070	Reinforced plastics manufacturing industry
C805990	Other plastic products manufacturing industry
C901020	Glass and glass product manufacturing industry
C901060	Refractory material manufacturing industry
CB01010	Machine manufacturing industry
CB01030	air treatment equipment manufacturing industry
CB01990	Other machinery manufacturing industry
CC01010	Generate electricity, electricity transmission, power distribution machinery manufacturing industry
CC01080	Electronic parts manufacturing industry
CC01090	Battery manufacturing industry
CQ01010	Mould manufacturing industry
CZ99990	Unclassified other industrial products
D101050	Steam/electricity co-generation industry
D401010	Heat energy supplying industry
E599010	Piping engineering industry
E601010	Electric product decorating industry
E603050	Automata controller project industry
E604010	Mechanism installation industry
EZ15010	Heat preservation, cold insulation installation project industry
H701020	Industrial plants renting industry
H701040	Specific area developing industry
I199990	Other service industry
ID01010	Apparatus for weights and measures industry
IZ99990	Other industrial and commercial service industry
J101030	Litter cleaning industry
J101040	Litter dealing industry
J101050	Environment measuring service industry
J101060	Sewage treatment industry
CE01021	Apparatus for weights and measures manufacturing industry
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

l The raw materials for production are purchased from both home and abroad such as Taiwan, mainland China, Indonesia, and USA, etc.

Sales Information

l Subject is engaged in sales of plastic products, fiber products, electronic materials and petrochemical products, etc.

l Subject sales regions include China, Japan, South Korea, Southeast Asia and Taiwan domestic market.

l It is introduced that subject has four major departments and the details information are as follows for reference.

Department	Product
Electronic Material	Copper-Clad Laminates, Epoxy Resins, Glass Fabrics, Liquid Crystal Displays And Copper Foils
Plastic Products	Plastic Plaster, Poly Urethane (PU) Synthetic Leathers, Polypropylene (PP) Rubber Fabrics, Polyvinyl Chloride (PVC) Plastic Injection Products
Plastic Raw Material	Glycol, Butylene Glycol, Bisphenol A, Toluene Diisocyanate, Plasticizers
Fiber Products	Polyester Products, Dyeing Products

Settlements

Purchase

Domestic Purchase

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

Foreign Purchase

Product	Payment Terms	Proportion
Raw materials	CBD, etc	100%

Sales

Domestic Markets

Product	Sales Terms	Proportion
Plastic products, etc	COD, CBD, Credit Sales, etc	100%

Export

Product	Sales Terms	Proportion
Plastic products, etc	CBD, etc	100%

Balance Sheet

Unit: NTD/000

	2012-12-31	2011-12-31
Assets
Current Assets
Cash and cash equivalents	5,444,415.00	5,062,103.00
Financial assets measured at fair value through profit or loss - current	0.00	9,860.00
Available-for-sale financial assets - current	32,506,444.00	33,798,202.00
Notes receivable - net	3,104,159.00	2,871,917.00
Accounts receivable - net	12,730,175.00	11,263,902.00
Accounts receivable - related parties - net	4,490,040.00	4,279,282.00
Other receivables	1,280,539.00	3,237,012.00
Other receivables - related parties	37,178,800.00	42,285,300.00
Inventories	25,269,919.00	23,256,202.00
Other prepayments	2,511,256.00	3,213,206.00
Other current assets	270.00	509.00
Current assets	124,516,017.00	129,277,495.00
Funds and Investments
Financial assets carried at cost - non current	2,827,606.00	2,830,122.00
Equity investments under equity method	194,822,990.00	204,982,186.00
Investments	194,822,990.00	204,982,186.00
Funds and long-term investments	197,650,596.00	207,812,308.00
Fixed Assets
Cost
Land	8,912,852.00	9,268,573.00
Buildings and structures	25,174,898.00	25,147,986.00
Machinery and equipment	141,341,104.00	139,698,252.00
Transportation equipment	1,173,435.00	1,166,569.00
Other facilities	2,768,296.00	2,616,251.00
Revaluation increment	45,719.00	45,828.00
Cost and revaluation increment	179,416,304.00	177,943,459.00
Accumulated depreciation	-126,271,076.00	-120,799,994.00
Construction in process and prepayment for equipments	11,060,309.00	9,304,757.00
Fixed assets	64,205,537.00	66,448,222.00
Intangible Assets
Deferred pension cost	453,560.00	761,604.00
Other intangible assets	287,234.00	381,094.00
Intangible assets	740,794.00	1,142,698.00
OtherAssets
Guarantee deposits paid	61,546.00	69,927.00
Deferred charges	5,064,459.00	3,019,422.00
Deferred income tax assets - non current	275,985.00	0.00
Other assets - other	1,333,363.00	1,348,940.00
Other assets	6,735,353.00	4,438,289.00
Assets	393,848,297.00	409,119,012.00
Liabilities and Stockholders' Equity
Liabilities
Current Liabilities
Short-term borrowings	0.00	2,500,000.00
Financial liabilities measured at fair value through profit or loss - current	28,560.00	40,608.00
Accounts payable	2,519,074.00	2,638,212.00
Accounts payable - related parties	9,150,643.00	8,983,909.00
Accrued expenses	6,343,770.00	7,717,044.00
Other payables	160,741.00	1,787,919.00
Advance receipts	497,485.00	166,488.00
Long-term liabilities - current portion	22,013,400.00	14,452,932.00
Other current liabilities	377,424.00	751,463.00
Current liabilities	41,091,097.00	39,038,575.00
Long term Liabilities
Financial liabilities measured at fair value through profit or loss - non current	0.00	30,456.00
Bonds payable	47,923,383.00	53,413,184.00
Long-term borrowings	39,476,932.00	32,504,076.00
Long-term notes and accounts payable	0.00	757.00
Long-term liabilities	87,400,315.00	85,948,473.00
Reserves
Other Liabilities
Pension reserve / accrued pension liability	18,231,015.00	17,788,772.00
Guarantee deposits received	390,517.00	379,206.00
Deferred income tax liabilities	0.00	1,134,635.00
Other liabilities - other	168,973.00	210,314.00
Other liabilities	18,790,505.00	19,512,927.00
Liabilities	147,281,917.00	144,499,975.00
Stockholders' Equity
Capital
Common stock	78,522,986.00	78,522,986.00
Capital Surplus
Capital surplus - other	26,785,515.00	27,531,548.00
Capital surplus	26,785,515.00	27,531,548.00
Retained Earnings
Legal reserve	43,290,401.00	40,976,104.00
Special reserve	58,412,038.00	54,074,899.00
Unappropriated retained earnings	8,016,535.00	26,941,768.00
Retained earnings	109,718,974.00	121,992,771.00
Stockholders' Equity and Other adjustment
Cumulative translation adjustments	2,320,814.00	6,125,239.00
Net loss not recognized as pension cost	-28,128.00	0.00
Unrealized gains (losses) on financial instruments	29,021,868.00	30,222,033.00
Unrealized Revaluation Increment	226,296.00	226,405.00
Treasure stock	-1,945.00	-1,945.00
Equity adjustments	31,538,905.00	36,571,732.00
Stockholdersˉ equity	246,566,380.00 (USD 8,358,600,282.00)	264,619,037.00 (USD 8,970,585,354.30)
Number of treasury stock acquired by the company and subsidiaries (unit: share)	183,235.00	183,235.00

(As of 2013.03, 1 NTD = 0.0339 USD)

Profit and Loss Account

Unit: NTD/000

	2012-1-1~2012-12-31	2011-1-1~2011-12-31
Sales	186,459,778.00 (USD 6,320,986,474.20)	197,305,815.00 (USD 6,688,667,128.50)
Sales returns	516,865.00	454,318.00
Sales discounts and allowances	5,810,788.00	5,853,684.00
Sales	180,132,125.00	190,997,813.00
Service revenue	122,550.00	124,362.00
Service revenue	122,550.00	124,362.00
Other operating revenue	2,788,243.00	2,899,664.00
Operating income	183,042,918.00	194,021,839.00
Operating costs	163,571,984.00	160,040,249.00
Gross profit (loss) from operations	19,470,934.00	33,981,590.00
Unrealized gains on intercompany transactions	-113,840.00	78,396.00
Selling expense	5,528,083.00	5,425,131.00
General and administrative expenses	5,590,184.00	6,864,256.00
Operating expenses	11,118,267.00	12,289,387.00
Operating income (loss)	8,466,507.00	21,613,807.00
Non-Operating Income
Interest income	868,430.00	545,473.00
Income from long-term equity investments under the equity method	0.00	2,921,258.00
Dividends	2,007,788.00	3,201,491.00
Investment income	2,007,788.00	6,122,749.00
Gains on disposal of fixed assets	848,287.00	7,839.00
Gains on sale of investments	1,242,519.00	3,054.00
Foreign exchange gains	0.00	635,870.00
Revaluation gain on financial liabilities	42,504.00	18,240.00
Miscellaneous income	1,031,238.00	1,019,475.00
Non-operating revenues and gains	6,040,766.00	8,352,700.00
Non-Operating Expenses
Interest expense	1,858,276.00	1,546,475.00
Losses from long-term equity investments under the equity method	7,515,873.00	0.00
Other investment loss	0.00	1,868.00
Investment loss	7,515,873.00	1,868.00
Loss on disposal of fixed assets	63,808.00	40,968.00
Foreign exchange losses	357,463.00	0.00
Revaluation loss on financial assets	9,860.00	12,903.00
Miscellaneous disbursements	168,582.00	166,836.00
Non-operating expenses and losses	9,973,862.00	1,769,050.00
Income from continuing operations before income tax	4,533,411.00	28,197,457.00
Income tax expense (benefit)	317,381.00	5,054,491.00
Income from continuing operations	4,216,030.00	23,142,966.00
Net income (loss)	4,216,030.00 (USD 142,923,417.00)	23,142,966.00 (USD 784,546,547.40)
Primary Earnings per Share
Income (loss) from continuing operations	0.54	2.95
Primary earnings per share	0.54	2.95
Diluted earnings per share

(As of 2013.03, 1 NTD = 0.0339 USD)

Cash Flows

Unit: NTD/000

	2012-1-1~2012-12-31	2011-1-1~2011-12-31
Cash Flows from Operating Activities - Indirect Method
Net Income (Loss)	4,216,030	23,142,966
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities
Depreciation Expense	6,623,442	6,698,762
Amortization Expense	1,188,427	998,747
Provision (Reversal of Provision) for Bad Debts Losses	-10,755	-102,402
Amortization of Bonds Issue Cost	33,804	30,026
Loss (Gain) on Decline (Recovery) in Market Value, Scrap and Obsolescence of Inventories	-148,661	292,150
Investment Loss (Income) Recognized under Equity Method	7,515,873	-2,921,258
Cash Dividends Received from Investments Accounted for under Equity Method	9,606,920	17,982,732
Loss (Gain) on Disposal of Property, Plan and Equipment	-784,370	34,555
Loss (Gain) on Disposal of Other Assets	-297	-3,054
Loss (Gain) on Disposal of Long-term Investments under Equity Method	-1,242,222	0
Unrealized Revaluation Loss (Gain) on Financial Assets and Liabilities	-32,644	-5,338
Unrealized Gain (Loss) on Intercompany Transactions	-113,840	78,396
Unrealized Exchange Loss (Gain)	-41,154	-85,659
Other Revenue - Overdue Dividends And Compensation of Board And Directors	-40,149	-33,592
Other Adjustments to Reconcile Net Income	643,181	442
Changes in Operating Assets and Liabilities
Decrease (Increase) in Notes Receivable	-239,896	540,913
Decrease (Increase) in Accounts Receivable	-1,638,524	2,787,464
Decrease (Increase) in Other Receivables	1,956,474	758,322
Decrease (Increase) in Inventories	-1,865,056	-2,302,056
Decrease (Increase) in Other Prepayments	702,189	-1,557,917
Decrease (Increase) in Deferred Tax Assets	-1,245,493	1,066,497
Increase (Decrease) in Accounts Payable	60,587	-1,829,071
Increase (Decrease) in Accrued Expenses	-1,373,274	674,440
Increase (Decrease) in Other Payables	-1,603,459	-1,122,733
Increase (Decrease) in Receipts in Advance	330,998	-1,017
Increase (Decrease) in Other Current Liabilities	-189,393	387,952
Increase (Decrease) in Deferred Tax Liabilities	-235,934	-832,722
Increase (Decrease) in Accrued Pension Liabilities	750,286	838,914
Net Cash Provided by (Used in) Operating Activities	22,823,090	45,516,459
Cash Flows from Investing Activities
Acquisition of Available-for-sale Financial Assets	-1,000,000	-6,200,002
Proceeds from Disposal of Available-for-sale Financial Assets	1,000,297	6,203,054
Capital Reduction of Financial Assets Carried at Cost	2,516	0
Acquisition of Investments Accounted for by Equity Method	-11,079,666	-16,451,830
Proceeds from Disposal of Investments Accounted for by Equity Method	833,043	0
Purchase of Property, Plant and Equipment	-5,433,818	-3,401,581
Proceeds from Disposal of Property, Plant and Equipment	1,209,718	136,066
Decrease (Increase) in Refundable Deposits	8,381	-10,707
Increase in Deferred Charges	-3,139,604	-1,045,482
Decrease (Increase) in Other Receivables - Related Parties	5,106,500	-16,606,277
Net Cash Provided by (Used in) Investing Activities	-12,492,633	-37,376,759
Cash Flows from Financing Activities
Increase (Decrease) in Short-term Loans	-2,499,707	2,460,587
Proceeds from Issuance of Bonds	11,969,444	9,974,442
Repayments of Bonds	-7,500,000	-2,040,000
Proceeds from Long-term Debt	12,500,000	32,260,000
Repayment of Long-term Debt	-7,959,726	-22,383,978
Increase (Decrease) in Guarantee Deposits Received	11,312	-111,782
Increase (Decrease) in Long-term Liabilities	-757	-12,738
Increase (Decrease) in Other Liabilities	-3,086	258,179
Cash Dividends Paid	-16,473,396	-36,820,401
Net Cash Provided by (Used in) Financing Activities	-9,955,916	-16,415,691
Effect of Exchange Rate Changes	7,771	31,609
Net Increase (Decrease) in Cash and Cash Equivalents	382,312	-8,244,382
Cash and Cash Equivalents, Beginning of year	5,062,103	13,306,485
Cash and Cash Equivalents, End of year	5,444,415	5,062,103
Supplemental Cash Flow Information
Interest Paid	1,831,693	1,506,590
Interest Paid- Excluding Capitalized Interest	1,831,693	1,506,590
Income Tax Paid	3,093,211	5,029,244
Non-cash Investing and Financing Activities
Current Portion of Long-term Liabilities	22,013,400	14,452,932
Cash Dividends Payable	159,895	187,987

Bankers

Subject declined to disclose its bank details; from other source we cannot obtain the relevant information, either.

Public Record

Mortgage

No chattel mortgage record of subject has been found within the recent 3 months.

Lawsuit

Trial Number:	2008,Xiongbu,2387
Date of Trial:	2008-11-26
Reason:	Payment of pension

Interview Details

Name	Mr. Ming
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.39
UK Pound	1	Rs.82.32
Euro	1	Rs.69.54

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.