MIRA INFORM REPORT

Report Date :

08.12.2014

IDENTIFICATION DETAILS

Name :	DA-TSAI STAINLESS STEEL CO., LTD.

Registered Office :	1F., No.37, Gongyequ 22nd Rd., Nantun Dist., Taichung City 40850

Country :	Taiwan

Date of Incorporation :	06.09.1989

Com. Reg. No.:	23484745

Legal Form :	Joint Stock Company

Line of Business :	Trading of Stainless Steel

No. of Employees :	About 20 Employees

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Unknown

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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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. 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

Company Name and address

Company Name:	Da-Tsai Stainless Steel Co., Ltd.
Supplied Name:	DA TSAI STAINLESS STEEL CO LTD
Trading Address:	1F., No.37, Gongyequ 22nd Rd., Nantun Dist., Taichung City 40850, Taiwan (R.O.C.)
Supplied Address:	1F NO 37 GONGYEQU 22ND RD NANTUN DIST TAICHUNG CITY 40850 TAIWAN R.O.C
Telephone Number:	+886-4-2358-0838
Fax Number:	+886-4-2358-1003
E-mail:	sales-439@datsai.com.tw

Notes: The exact name and address are as above.

Company Identification Details

Registered Name:	Da-Tsai Stainless Steel Co., Ltd.
Registered Address:	1F., No.37, Gongyequ 22nd Rd., Nantun Dist., Taichung City 40850, Taiwan (R.O.C.)
Date of Foundation:	1989-9-6
Registration Number:	23484745
Registry:	Taichung City Government
Registered Capital:	NTD 108,000,000 (USD 3,672,000) (As of 2014.12, 1 NTD = 0.0340 USD)
Paid-up Capital:	NTD 108,000,000 (USD 3,672,000)
Legal Representatives:	Qingbiao Li
Legal Form:	Joint Stock Company
Principal Activities:	Trading of stainless steel
Staff:	About 20 Employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	2014-8-7

History

Subject was incorporated on 1989-9-6 with registered number 23484745 as Joint Stock Company in Taiwan.

Corporate Structure

Related Companies

1
Registered Name:	Da-Song Enterprise Co., Ltd.
Registered Address:	No.9, Jingke 2nd Rd., Nantun Dist., Taichung City 40852, Taiwan (R.O.C.)
Date of Foundation:	1994-2-25
Registration Number:	84696355
Registry:	Taichung City Government
Registered Capital:	NTD 158,000,000 (USD 5,372,000) (As of 2014.12, 1 NTD = 0.0340 USD)
Paid-up Capital:	NTD 158,000,000 (USD 5,372,000)
Legal Representatives:	Qingbiao Li
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2014-3-24
2
Name	Dongguan Lian-Yang Metal Technology Co., Ltd
Address	No,18, Yanjiang East 2^nd Road, Mayong Town, Dongguan City, Guangdong Province, China
Telephone Number	+86-769-8961-2188
Fax Number	+86-769-8961-2116

Shareholders

Major Shareholders

Name	Subscription Shares
Qingbiao Li	70,000
Zhijian Li
20,000
Nvling Lin	12,000

Management Information

Core Management

Directors

1
Name	Qingbiao Li
Position	Board Chairman
2
Name	Zhiwei Li
Position	Director
3
Name	Zhijian Li
Position	Director
4
Name	Nvling Lin
Position	Supervisor

Personnel Structure

Total Employees

About 20 Employees

Operation Information

Offices & Factories

	Headquarters
Add	1F., No.37, Gongyequ 22nd Rd., Nantun Dist., Taichung City 40850, Taiwan (R.O.C.)

Production Information

· Subject is a trader of stainless steel, etc without any production activities.

It is introduced that subject’s related company “Da-Song Enterprise Co., Ltd.” has factories in Taiwan for production.

Purchase Information

The registered activities of subject:

Business Code	Details
CB01010	Manufacturing of machinery
CA02990	Manufacturing of other metal product
F111090	Wholesale of building materials
F113010	Wholesale of machinery
F113030	Wholesale of precise instrument
F106010	Wholesale of ironware
F119010	Wholesale of electronic material
F113050	Wholesale of computer and office equipment
F118010	Wholesale of software
F401010	International trade business
J304010	Book industry
J305010	Audio publishing industry
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

· Subject purchases products mainly from its related company in Taiwan.

It is introduced that subject purchases some products from Japan.

Sales Information

· Subject is engaged in sale of stainless steel, etc.

The major products sold by subject are steel coil, steel plate, and steel strip, etc.

It is introduced that subject’s monthly maximum order volume is about thousands metric tons.

The products are applied to manufacturing of kitchen utensil, knives, household appliances, and hardware production, etc.

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

It is introduced that subject is the agent of Yieh United Steel Corp (Taiwan) and Lianzhong Stainless Steel Corporation (Mainland China).

Import and export right:

Import right	Yes
Export right	Yes

Settlements

PURCHASE

Domestic Purchase

Product	Stainless steel, etc
Payment Terms	Interior Settlement, T/T, etc

Foreign Purchase

Product	Stainless steel, etc
Payment Terms	T/T, etc

SALES

Domestic Markets

Product	Stainless steel, etc
Payment Terms	Cash, T/T, etc

Export

Product	Stainless steel, etc
Payment Terms	L/C, T/T, etc

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. Li declined to disclose its financials citing the grounds of company’s confidentiality; from other source we cannot 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

Trial Number:	2005, Zhongxiao,1170
Date of Trial:	2005-9-1
Reason:	Compensation for damages
Claimant:	United Bus Company Ltd.
Defendant:	Da-Tsai Stainless Steel Co., Ltd.

Interview Details

Name	Mr. Li
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.85
UK Pound	1	Rs.96.73
Euro	1	Rs.76.53

INFORMATION DETAILS

Analysis Done by :	SUM

Report Prepared by :	NIT

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.