MIRA INFORM REPORT

Report Date :

18.10.2013

IDENTIFICATION DETAILS

Name :	FREUDENBERG FAR EASTERN SPUNWEB CO., LTD.

Registered Office :	No.38, Lunding, Sihai Village, Dayuan Township, Taoyuan County 337

Country :	Taiwan

Date of Incorporation :	19.11.1987

Com. Reg. No.:	22663158

Legal Form :	Joint Stock Company

Line of Business :	Manufacturing and sale of textile

No. of Employees :	About 200 Employees

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 – March, 31^st,2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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. 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:	Freudenberg Far Eastern Spunweb Co., Ltd.
Supplied Name:	Freudenberg Far Eastern Spunweb Co. Ltd
Trading Address:	No.38, Lunding, Sihai Village, Dayuan Township, Taoyuan County 337, Taiwan (R.O.C.)
Supplied Address:	38 Lun Din, Shi Hai Village, Tayuan, Taiwan
Telephone Number:	+886-3-384-6135
Fax Number:	+886-3-386-7127

Notes: The exact name and address are as above.

Company Identification Details

Registered Name:	FREUDENBERG FAR EASTERN SPUNWEB CO., LTD.
Registered Address:	No.38, Lunding, Sihai Village, Dayuan Township, Taoyuan County 337, Taiwan (R.O.C.)
Date of Foundation:	1987-11-19
Registration Number:	22663158
Registry:	MOEA Central Office
Registered Capital:	NTD 438,000,000 (USD 14,892,000) (As of 2013.10, 1 NTD = 0.0340 USD)
Paid-up Capital:	NTD 438,000,000 (USD 14,892,000)
Legal Representatives:	Bruce Olson
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale of textile
Staff:	About 200 Employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	2013-4-11

History

Subject was incorporated on 1987-11-19 with registered number 22663158 as Joint Stock Company in Taiwan.

Shareholders

Name	Subscription Shares
FV Verwaltungs-SE	26,359,292
Yuan Ding Investment Co., Ltd. (Literal Translation)
13,052,254

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

Subsidiaries & Branches

Related Companies

1
Name	Yuan Ding Investment Co., Ltd. (Literal Translation)
Address	34^th Floor, No.207, Sec 2, Dunhua South Road, Da-An District, Taipei City, Taiwan, R.O.C.
Date of Foundation:	1986-11-7
Registration Number:	22266828
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 25,000,000,000 (USD 850,000,000) (As of 2013.07, 1 NTD = 0.0340 USD)
Paid-up Capital:	NTD 18,338,262,300 (USD 623,500,918)
Legal Representatives:	Xudong Xu
Legal Form:	Joint Stock Company
Principal Activities:	General investment business
Listed at Stock Exchange:	No
Date of Last Annual Return:	2012-8-31
2
Name	Freudenberg & Vilene Nonwovens (Taiwan) Co., Ltd.
Address	No.40, Sec 2, Minfu Road, Yanmei City, Taoyuan County, Taiwan, R.O.C.
Telephone Number:	+886-3-478-1261

Note: It is introduced that subject has many related companies in different parts of the world such as France, Germany, Spain, Italy, United Kingdom, Denmark, Netherlands, Czech Republic, Poland, Turkey, Greece, USA, Latin America, Argentina, Brazil, India, China, Japan, and South Korea, etc.

Factory

Address:	No.38, Lunding, Sihai Village, Dayuan Township, Taoyuan County 337, Taiwan (R.O.C.)
Date of Foundation:	1988-4-27
Date of Registration:	1990-9-18
Factory Registration Number:	99629510
Factory Manager:	Guomin Yang
Status:	In Production
Date of Last Annual Return:	2012-8-17
Major Products:	113 Nonwoven fabric

Personnel Information

Core Management

Directors

1
Name	Bruce Olson
Position	Board Director
2
Name	Xudong Xu
Position	Vice-president
3
Name	Rene Wollert
Position	Director
4
Name	Jiayi Xi
Position	Director
5
Name	Frank Heislitz
Position	Director
6
Name	Jiancheng Wang
Position	Supervisor
7
Name	De-Er Sai
Position	Supervisor
8
Name	Guoming Lin
Position	Manager
Date of Appointment	2000-7-1

Personnel Structure

Total Employees

About 200 Employees

Operation Information

Offices & Factories

	Headquarters
Add	No.38, Lunding, Sihai Village, Dayuan Township, Taoyuan County 337, Taiwan (R.O.C.)

Production Information

Subject is engaged in manufacturing of textile, etc.

Subject has a factory in Dayuan Township, Taiwan for production.

Subject obtained the certification of ISO 9001 and TS16949, etc.

Purchase Information

The registered activities of subject:

1	Manufacturing and sale of spinning sticky nonwoven fabric
2	General import and export business (besides licensed business)
3	Agent, price quoting, and bidding service of all kinds of above mentioned items (except future goods)

The raw materials for production are mostly purchased in domestic market.

Sales Information

Subject is engaged in sales of textile, etc.

The major product sold by subject is nonwoven fabrics which are applied to manufacturing carpet.

Subject’s sales regions include Asia, Europe and America, etc.

Subject sells products with the brand “Evolon”.

It is introduced that subject’s major customer is “3M”.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Product	Terms	Proportion
Raw materials	Cash, T/T, etc	100%

Foreign Purchase

Subject has little import.

Sales

Domestic Markets

Product	Terms	Proportion
Textile, etc	Cash, T/T, etc	100%

Export

Product	Terms	Proportion
Textile, etc	T/T, 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’s relevant staff Mr. Wang 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 cannot 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	Mr. Wang
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.58
UK Pound	1	Rs.98.51
Euro	1	Rs.83.49

INFORMATION DETAILS

Report Prepared by :

SDA

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.