MIRA INFORM REPORT

Report Date :

02.12.2014

IDENTIFICATION DETAILS

Name :	TAINAN SPINNING CO., LTD.
Registered Office :	No.511, Yu-Nung Road, Tainan
Country :	Taiwan
Financials (as on) :	31.12.2013 (Consolidated)
Date of Incorporation :	21.03.1955
Com. Reg. No.:	68919301
Legal Form :	Joint Stock Company
Line of Business :	· engaged in manufacturing and sales of textiles such as Yarns & Polyester Fiber (including PSF, POY, DTY & Chip) · Engaged in Spinning, Bleaching and Dyeing of Textiles, Sewing, Bleaching and Dyeing, Processing and sales of garment. · Engaged in Manufacturing and sales of Fibrous Materials Products.
No of Employees :	About 1,800 Employees

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are other major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, and following the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, Taiwan in July 2013 signed a free trade deal with New Zealand—Taipei’s first-ever with a country with which it does not maintain diplomatic relations—and in November inked a trade pact with Singapore. Negotiations continue on follow-on components of ECFA regarding trade in goods and a dispute resolution mechanism; a trade in services agreement is under review in the legislature. 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 overall trade surplus largely because of its surplus with China, and its foreign reserves are the world's sixth largest, behind China, Japan, Saudi Arabia, Russia, and Switzerland. 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. Taiwan since 2009 has gradually loosened rules governing Chinese investment on the island, and has also secured greater market access for its investors in the mainland. 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:	Tainan Spinning Co., Ltd.
Supplied Name:	TAINAN SPINNING CO LTD
Trading Address:	No.511, Yu-Nung Road, Tainan, Taiwan, R.O.C.
Supplied Address:	10F, NO.9, SONGGAO RD, SINYI DISTRICT, TAIPEI, TAIWAN.
Telephone Number:	+886-6-237-6161
Fax Number:	+886-6-236-1156

Notes: The supplied address belongs to subject’s Taipei Office, and the exact name and address are as above.

Credit Summary

Credit Opinion:

Business connections are permissible.

Company Identification Details

Registered Name:	Tainan Spinning Co., Ltd.
Registered Address:	No.511, Yu-Nung Road, Tainan, Taiwan, R.O.C.
Date of Foundation:	1955-3-21
Registration Number:	68919301
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C
Registered Capital:	NTD 16,404,117,400 (USD 542,976,286) (As of 2014.12, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 16,404,117,400 (USD 542,976,286)
Legal Representatives:	Gaohui Zheng
Legal Form:	Joint Stock Company
Principal Activities:	· engaged in manufacturing and sales of textiles such as Yarns & Polyester Fiber (including PSF, POY, DTY & Chip) · Engaged in Spinning, Bleaching and Dyeing of Textiles, Sewing, Bleaching and Dyeing, Processing and sales of garment. · Engaged in Manufacturing and sales of Fibrous Materials Products.
Staff:	About 1,800 Employees
Listed at Stock Exchange:	Yes; Stock Symbol:1440
Date of Last Annual Return:	2014-8-21

History

Subject was incorporated on 1955-3-21 with registered number 68919301 as Joint Stock Company in Taiwan.

Subject listed on Taiwan stock exchange on 1989-10-3.

Change of Name

Former Chinese Name:	臺南紡織股份有限公司
Current Chinese Name:	台南紡織股份有限公司

Corporate Structure

Factories

1
Address:	No.111, Zhonghua Rd., Tainan City, Taiwan (R.O.C.)
Date of Foundation:	1973-3-20
Date of Registration:	1974-4-26
Factory Registration Number:	99656406
Factory Manager:	Junhong Chen
Status:	In Production
Date of Last Annual Return:	2013-12-19
Major Products:	111 Spinning
2
Address:	No.419, Sec. 3, Zhongzheng Rd., Rende Dist., Tainan City, Taiwan (R.O.C.)
Date of Foundation:	1973-8-2
Date of Registration:	1975-3-6
Factory Registration Number:	99656409
Factory Manager:	Minghong Cai
Status:	In Production
Date of Last Annual Return:	2014-7-10
Major Products:	111 Spinning 185 artificial fiber

Offices

Name	Taipei Office
Address	10F.,No.9,Songgao Rd., Sinyi District, Taipei City 110, Taiwan(R.O.C.)
Telephone Number	+886-2-27589888
Fax Number	+886-2-27582804

Related Companies

1. Tainan Spinning Co.,Ltd.(VN)

2. Nan Fan Housing Development Co.,Ltd.

3. NanTex Industry Co.,Ltd.

4. Epistar Corporation

5. Scino Pharm Taiwan , Ltd.

Shareholders

Major Shareholders

Name	Subscription Shares
Jiufu Investment Co., Ltd (Liberal Translation)	3,404,883
Boming Huo
102,089,416
Qingyuan Gao	2,213,907
Guozhen Chen	1,110,177
Taibo Investment Co., Ltd (Liberal Translation)	4,016,240
Guangwei Investment Co., Ltd (Liberal Translation)	4,527,775
Lianghong Wu	8,615,550
Shengyuan Investment Co., Ltd (Liberal Translation)	10,454
Yongyuan Investment Co., Ltd (Liberal Translation)	10,598,975
Boyu Hou	102,610,547
Zhengxiong	14,409,482
Wenteng Hou	6,237,344
Maojiang Investment Co., Ltd (Liberal Translation)	104,545
Yupeng Investment Co., Ltd (Liberal Translation)	1,254,540
Xin Yong Xing Co., Ltd (Liberal Translation)	76,113,156
Pengling Nie	134,914
Bihua Houchen	25,792,771
Miaoyu Zhenghong	7,703,425
Guogeng Chen	10,845,580
Meiling Wuxie	5,501,403
Shumin Wu	335,131
Yingzhi Zhuang	25,008,169
Wuzhoing Hou	1,917,041
Xinhong Ye	1,620,746
Gengmin Lin	196

Shareholder Information:

1
Registered Name:	Jiufu Investment Co., Ltd (Liberal Translation)
Registered Address:	No.171, Sec. 2, Minquan Rd., West Central Dist., Tainan City, Taiwan (R.O.C.)
Date of Foundation:	1986-4-30
Registration Number:	22001545
Registry:	Tainan City Government
Registered Capital:	NTD 199,990,000 (USD 6,619,669) (As of 2014.12, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 199,990,000 (USD 6,619,669)
Legal Representatives:	Liling Zheng
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2014-9-18
2
Registered Name:	Taibo Investment Co., Ltd (Liberal Translation)
Registered Address:	4F., No.90, Zhongshan Rd., West Central Dist., Tainan City, Taiwan (R.O.C.)
Date of Foundation:	1986-9-3
Registration Number:	22265594
Registry:	Tainan City Government
Registered Capital:	NTD 170,000,000 (USD 5,627,000) (As of 2014.12, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 170,000,000 (USD 5,627,000)
Legal Representatives:	Weide Wu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2012-7-25
3
Registered Name:	Guangwei Investment Co., Ltd (Liberal Translation)
Registered Address:	2F., No.289, Chang’an W. Rd., Datong Dist., Taipei City, Taiwan (R.O.C.)
Date of Foundation:	1988-4-1
Registration Number:	22820299
Registry:	Taipei City Government
Registered Capital:	NTD 190,000,000 (USD 6,289,000) (As of 2014.12, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 190,000,000 (USD 6,289,000)
Legal Representatives:	Yingnan Zhuang
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2012-9-30
4
Registered Name:	Shengyuan Investment Co., Ltd (Liberal Translation)
Registered Address:	10F., No.125, Sec. 2, Nanjing E. Rd., Zhongshan Dist., Taipei City, Taiwan (R.O.C.)
Date of Foundation:	1993-11-24
Registration Number:	84703314
Registry:	Taipei City Government
Registered Capital:	NTD 230,000,000 (USD 7,613,000) (As of 2014.12, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 230,000,000 (USD 7,613,000)
Legal Representatives:	Boyi Hou
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2013-11-15
5
Registered Name:	Yongyuan Investment Co., Ltd (Liberal Translation)
Registered Address:	6F.-1, No.28, Aly. 10, Lane 30, Dong’an Rd., East Dist., Tainan City, Taiwan (R.O.C.)
Date of Foundation:	1987-10-20
Registration Number:	22661406
Registry:	Tainan City Government
Registered Capital:	NTD 141,200,000 (USD 470,020) (As of 2014.12, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 141,200,000 (USD 470,020)
Legal Representatives:	Zhonghe Wu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2013-9-2
6
Registered Name:	Maojiang Investment Co., Ltd (Liberal Translation)
Registered Address:	13F.-6, No.155, Sec. 1, Keelung Rd., Xinyi Dist., Taipei City, Taiwan (R.O.C.)
Date of Foundation:	2007-3-30
Registration Number:	28482794
Registry:	Taipei City Government
Registered Capital:	NTD 25,000,000 (USD 827,500) (As of 2014.12, 1 NTD = 0.0331 USD)
Legal Representatives:	Boyu Hou
Legal Form:	Private Limited Liability Company
Date of Last Annual Return:	2008-1-3
7
Registered Name:	Yupeng Investment Co., Ltd (Liberal Translation)
Registered Address:	No.375, Kangle St., West Central Dist., Tainan City, Taiwan (R.O.C.)
Date of Foundation:	2010-9-14
Registration Number:	53153757
Registry:	Tainan City Government
Registered Capital:	NTD 29,500,000 (USD 976,450) (As of 2014.12, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 29,500,000 (USD 976,450)
Legal Representatives:	Yizhen Zhang
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2013-8-19
8
Registered Name:	Xin Yong Xing Co., Ltd (Liberal Translation)
Registered Address:	No.375, Kangle St., West Central Dist., Tainan City, Taiwan (R.O.C.)
Date of Foundation:	1982-3-24
Registration Number:	69715207
Registry:	Tainan City Government
Registered Capital:	NTD 160,000,000 (USD 5,296,000) (As of 2014.12, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 160,000,000 (USD 5,296,000)
Legal Representatives:	Boyu Hou
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2011-10-31

Management Information

Core Management

Directors

1
Name		Gaohui Zheng
Position		Board Chairman
2
Name	Boming Hou
Position		Deputy Chairman
3
Name	Qingyuan Gao
Position		Director
4
Name	Guozhen Chen
Position		Director
5
Name	Zhaomei Wuzeng
Position		Director
6
Name		Yingnan Zhuang
Position		Director
7
Name	Lianghong Wu
Position		Director
8
Name	Boyi Hou
Position		Director
9
Name	Zhonghe Wu
Position		Director
10
Name	Boyu Hou
Position		Director
11
Name		Zhengxiong Yan
Position		Director
12
Name	Wenteng Hou
Position		Director
13
Name	Jinghua He
Position		Director
14
Name	Yizhen Zhang
Position		Director
15
Name	Zhisheng Hou
Position		Director
16
Name		Zhiyuan Hou
Position		Director
17
Name	Qian Dai
Position		Independent Director
18
Name	Pengling Nie
Position		Independent Director
19
Name	Wenhui Qiu
Position		Independent Director
20
Name	Junling Guo
Position		Independent Director
21
Name		Buhua Houchen
Position		Supervisor
22
Name	Miaoyu Chenhong
Position		Supervisor
23
Name	Guogeng Chen
Position		Supervisor
24
Name	Meiling Xiewu
Position		Supervisor
25
Name	Shumin Wu
Position		Supervisor
26
Name		Yingzhi Zhuang
Position		Supervisor
27
Name	Wuzhong Hou
Position		Supervisor
28
Name	Xinhong Ye
Position		Supervisor
29
Name	Gengmin Lin
Position		Supervisor
30
Name	Boming Hou
Position		Manager
Date of Appointment		2001-6-13
31
Name		Hongmo Chen
Position		Manager
Date of Appointment		2011-7-1
32
Name	Kunhuang Zeng
Position		Manager
Date of Appointment		2013-6-28
33
Name	Dunzheng Wang
Position		Manager
Date of Appointment		2013-6-28
34
Name	Liling Zheng
Position		Manager
Date of Appointment		2013-6-28

Personnel Structure

Total Employees

About 1,800 Employees

Operation Information

Offices & Factories

	Headquarters
Add	No.511, Yu-Nung Road, Tainan, Taiwan, R.O.C.

Production Information

l Subject is engaged in manufacturing of textiles.

l It is introduced that two factories in Taiwan for production.

l Subject obtained the certification of ISO-9002 and ISO-14001.

Purchase Information

l The registered activities of subject:

Business Code	Details
--	Manufacturing, processing and sales of textiles.
--	Related international trading business and sales.
--	Speciing developing for contributing to the production and sales of textiles and government grants, operation and investment in textile industry.
--	Spinning, bleaching and dyeing of textiles, sewing, bleaching and dyeing, processing and sales of garment.
--	Manufacturing and sales of fibrous materials products.
--	Commission for building, renting and sales of resident and business building.

l It is introduced that subject purchases its raw materials and etc both at home and abroad.

Sales Information

l Subject is engaged in sale of textiles.

l The major products are yarns & polyester fiber.

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

l Subject’s major customers are manufacturers of textiles such as garment.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

1. Domestic Purchase

Products	Raw materials and etc
Payment Terms	Cash, T/T and etc

2. Import

Products	Raw materials and etc
Payment Terms	L/C, T/T and etc

Sales

1. Domestic Markets

Product	Textiles and etc.
Selling Terms	Cash, T/T and etc

2. Export

Product	Textiles and etc.
Selling Terms	L/C, T/T and etc

Financial Information

Subject didn’t submit its individual financial information; we obtained its consolidated financials as follows for reference.

Consolidated Balance Sheet

Unit: NTD/000

	2013-12-31	2012-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	3,262,849	2,221,175
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	30,491	81,469
Notes receivable, net
Notes receivable, net	318,604	451,070
Accounts receivable, net
Accounts receivable, net	1,381,586	1,501,276
Other receivables
Other receivables, net	176,566	84,366
Current tax assets
Total current tax assets	105	6,183
Inventories
Total inventories	3,892,163	3,870,917
Prepayments
Total prepayments	260,873	283,372
Other current assets
Other current assets, others	1,775	655
Total other current assets	1,775	655
Total current assets	9,325,012	8,500,483
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	3,205,116	2,516,427
Non-current financial assets at cost
Non-current financial assets at cost, net	1,623,765	1,673,668
Investments accounted for using equity method
Investments accounted for using equity method, net	2,035,052	1,936,022
Property, plant and equipment
Total property, plant and equipment	11,616,670	9,585,690
Investment property, net
Investment property, net	7,268,285	7,289,217
Intangible assets
Total intangible assets	37	64
Deferred tax assets	153,628	320,413
Other non-current assets
Prepayments for business facilities	870,258	425,070
Guarantee deposits paid	1,752	891
Long-term prepaid rents	186,132	0
Other non-current assets, others
Total other non-current assets, others	6,243	6,517
Total other non-current assets	1,064,385	432,478
Total non-current assets	26,966,938	23,753,979
Total assets	36,291,950	32,254,462
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	1,865,369	432,614
Short-term notes and bills payable
Total short-term notes and bills payable	400,000	0
Notes payable
Total notes payable	43,417	84,613
Accounts payable
Total accounts payable	1,382,317	1,847,531
Other payables
Total other payables	728,539	572,699
Current tax liabilities	40,671	42,261
Other current liabilities
Advance receipts
Total advance receipts	126,625	161,802
Long-term liabilities, current portion
Total long-term liabilities, current portion	0	0
Total other current liabilities	126,625	161,802
Total current liabilities	4,586,938	3,141,520
Non-current liabilities
Long-term borrowings
Total long-term borrowings	600,000	0
Deferred tax liabilities
Total deferred tax liabilities	3,922,965	3,778,106
Other non-current liabilities
Accrued pension liabilities	1,189,612	1,274,359
Guarantee deposits received	35,451	38,832
Other non-current liabilities, others	10,486	10,486
Total other non-current liabilities	1,235,549	1,323,677
Total non-current liabilities	5,758,514	5,101,783
Total liabilities	10,345,452	8,243,303
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	15,926,328	15,690,963
Total capital stock	15,926,328	15,690,963
Capital surplus
Capital surplus, treasury share transactions	35,983	35,983
Capital surplus, difference between consideration and carrying amount of subsidiaries acquired or disposed	26,933	0
Capital surplus, others	12,196	12,196
Total capital surplus	75,112	48,179
Retained earnings
Legal reserve	1,951,402	1,884,558
Special reserve	4,407,479	4,228,187
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	1,322,003	799,065
Total retained earnings	7,680,884	6,911,810
Other equity interest
Exchange differences on translation of foreign financial statements
Total exchange differences on translation of foreign financial statements	-55,669	-201,676
Unrealized gains (losses) on available-for-sale financial assets
Total unrealized gains (losses) on available-for-sale financial assets	1,996,392	1,526,102
Total other equity interest	1,940,723	1,324,426
Total equity attributable to owners of parent	25,623,047	23,975,378
Non-controlling interests	323,451	35,781
Total equity	25,946,498	24,011,159
Equivalent issue shares of advance receipts for ordinary share	0	0
Number of shares in entity held by entity and by its subsidiaries	0	0

Consolidated Profit and Loss Account

Unit: NTD/000

	2013	2012
Operating revenue
Total operating revenue	21,549,291	21,840,705
Operating costs
Total operating costs	18,972,240	20,008,966
Gross profit (loss) from operations	2,577,051	1,831,739
Gross profit (loss) from operations	2,577,051	1,831,739
Operating expenses
Selling expenses
Total selling expenses	711,520	749,779
Administrative expenses
Total administrative expenses	584,284	537,584
Research and development expenses
Total research and development expenses	46,160	48,132
Total operating expenses	1,341,964	1,335,495
Net operating income (loss)	1,235,087	496,244
Non-operating income and expenses
Other income
Total other income	150,613	264,858
Other gains and losses
Other gains and losses, net	99,509	-18,349
Finance costs
Finance costs, net	18,088	27,117
Share of profit (loss) of associates and joint ventures accounted for using equity method
Share of profit (loss) of associates and joint ventures accounted for using equity method, net	126,612	96,960
Total non-operating income and expenses	358,646	316,352
Profit (loss) from continuing operations before tax	1,593,733	812,596
Tax expense (income)
Total tax expense (income)	396,772	136,836
Profit (loss) from continuing operations	1,196,961	675,760
Profit (loss)	1,196,961	675,760
Other comprehensive income
Exchange differences on translation	97,923	-173,816
Unrealised gains (losses) on valuation of available-for-sale financial assets	480,058	647,272
Actuarial gains (losses) on defined benefit plans	26,161	-37,997
Share of other comprehensive income of associates and joint ventures accounted for using equity method
Total share of other comprehensive income of associates and joint ventures accounted for using equity method	50,404	-52,025
Income tax related to components of other comprehensive income	10,842	-8,952
Other comprehensive income, net	643,704	392,386
Total comprehensive income	1,840,665	1,068,146
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	1,212,397	691,192
Profit (loss), attributable to non-controlling interests	-15,436	-15,432
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	1,856,101	1,083,578
Comprehensive income, attributable to non-controlling interests	-15,436	-15,432
Basic earnings per share
Basic earnings (loss) per share from continuing operations	0.76	0.43
Total basic earnings per share	0.76	0.43
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations	0.76	0.43
Total diluted earnings per share	0.76	0.43

Consolidated Cash Flows

Unit: NTD/000

	2013	2012
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	1,593,733	812,596
Profit (loss) before tax	1,593,733	812,596
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	486,680	505,706
Amortization expense	27	15
Provision (reversal of provision) for bad debt expense	72	-25,192
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	1,461	-5,506
Interest expense	18,088	27,117
Dividend income	-85,889	-144,208
Share of loss (profit) of associates and joint ventures accounted for using equity method	-126,612	-96,960
Loss (gain) on disposal of property, plan and equipment	39,035	-17,853
Property, plan and equipment transferred to expenses	44,289	51,890
Loss (gain) on disposal of investments	1,898	0
Loss (gain) on disposal of investments accounted for using equity method	3,039	0
Reversal of impairment loss on non-financial assets	-45,377	-520
Unrealized foreign exchange loss (gain)	-27,299	-29,926
Other adjustments to reconcile profit (loss)	72,905	-568,658
Total adjustments to reconcile profit (loss)	382,317	-304,095
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	50,336	-50,000
Decrease (increase) in notes receivable	132,466	-92,231
Decrease (increase) in accounts receivable	119,618	-583,712
Decrease (increase) in accounts receivable due from related parties	0	0
Decrease (increase) in other receivable	-86,122	166,550
Decrease (increase) in inventories	-103,527	1,022,149
Decrease (increase) in prepayments	36,250	53,088
Decrease (increase) in other current assets	-1,120	247
Decrease (increase) in other operating assets	0	0
Total changes in operating assets	147,901	516,091
Changes in operating liabilities
Increase (decrease) in notes payable	-41,196	24,700
Increase (decrease) in accounts payable	-465,214	957,001
Increase (decrease) in other payable	42,775	79,994
Increase (decrease) in receipts in advance	-35,177	40,928
Increase (decrease) in accrued pension liabilities	-58,586	-51,943
Total changes in operating liabilities	-557,398	1,050,680
Total changes in operating assets and liabilities	-409,497	1,566,771
Total adjustments	-27,180	1,262,676
Cash inflow (outflow) generated from operations	1,566,553	2,075,272
Interest paid	-19,064	-27,534
Income taxes refund (paid)	-97,560	-209,169
Net cash flows from (used in) operating activities	1,449,929	1,838,569
Cash flows from (used in) investing activities
Acquisition of available-for-sale financial assets	-209,920	-36,743
Proceeds from disposal of financial assets at cost	30,944	0
Proceeds from capital reduction of financial assets at cost	18,680	4,189
Proceeds from disposal of subsidiaries	11,659	0
Acquisition of property, plant and equipment	-2,307,993	-401,102
Proceeds from disposal of property, plant and equipment	8,623	25,928
Increase in refundable deposits	-861	-199
Acquisition of intangible assets	0	-79
Increase in prepayments for business facilities	-461,777	-366,725
Increase in other prepayments	-186,132	0
Dividends received	85,889	144,208
Other investing activities	-10,221	-810
Net cash flows from (used in) investing activities	-3,021,109	-631,333
Cash flows from (used in) financing activities
Increase in short-term loans	7,380,310	4,205,311
Decrease in short-term loans	-5,955,958	-5,356,441
Increase in short-term notes and bills payable	400,000	0
Proceeds from long-term debt	600,000	0
Repayments of long-term debt	0	-6,281
Increase in guarantee deposits received	-3,381	2,886
Cash dividends paid	-235,365	-313,819
Change in non-controlling interests	303,106	-67,136
Net cash flows from (used in) financing activities	2,488,712	-1,535,480
Effect of exchange rate changes on cash and cash equivalents	124,142	-80,233
Net increase (decrease) in cash and cash equivalents	1,041,674	-408,477
Cash and cash equivalents at beginning of period	2,221,175	2,629,652
Cash and cash equivalents at end of period	3,262,849	2,221,175
Cash and cash equivalents reported in the statement of financial position	3,262,849	2,221,175

Bankers

Subject declined to disclose its bank details; from other source we could 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.

Special Note

Interview Details

Department

Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.14
UK Pound	1	Rs.97.05
Euro	1	Rs.77.37

INFORMATION DETAILS

Analysis Done by :	DIV
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.