MIRA INFORM REPORT

Report Date :

18.12.2014

IDENTIFICATION DETAILS

Name :	SHYR CHIUANN MACHINE INDUSTRIES CO., LTD.

Registered Office :	No.6, Lane 500, Sec.1, Chung San Rd., Yuanlin, Changhua

Country :	Taiwan

Date of Incorporation :	11.06.1981

Com. Reg. No.:	60274756

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturing and sale of tire manufacturing equipment

No. of Employees :	30

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:	SHYR CHIUANN MACHINE INDUSTRIES CO., LTD.
Supplied Name:	SHYR CHIUANN MACHINERY INDUSTRY CO LTD
Trading Address:	No.6, Lane 500, Sec.1, Chung San Rd., Yuanlin, Changhua Taiwan R.O.C.
Supplied Address:	NO 6 LN 500 SEC 1 ZHONGSHAN RD YUANLIN TOWNSHIP CHANGHUA COUNTY 510 TAIWAN
Telephone Number:	+886-4-832-4184
Fax Number:	+886-4-833-3893
E-mail:	sales@tire-tyre-machine.com
Website:	www.tire-tyre-machine.com

Notes: The exact name and address are as above.

Company Identification Details

Registered Name:	SHYR CHIUANN MACHINE INDUSTRIES CO., LTD.
Registered Address:	No.6, Lane 500, Sec.1, Chung San Rd., Yuanlin, Changhua Taiwan R.O.C.
Date of Foundation:	1981-6-11
Registration Number:	60274756
Registry:	MOEA Central Office
Registered Capital:	NTD 5,000,000 (USD 165,000) (As of 2014.12, 1 NTD = 0.0330 USD)
Legal Representatives:	Zhi Xu
Legal Form:	Private Limited Liability Company
Principal Activities:	Manufacturing and sale of tire manufacturing equipment, etc
Staff:	About 30 Employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	1999-9-18

History

Subject was incorporated on 1981-6-11 with registered number 60274756 as Private Limited Liability Company in Taiwan.

Corporate Structure

Factory

Address:	No.6, Lane 500, Sec.1, Chung San Rd., Yuanlin, Changhua Taiwan R.O.C.
Date of Foundation:	1979-11-17
Date of Registration:	1981-8-1
Factory Registration Number:	99646621
Factory Manager:	Zhi Xu
Status:	In Production
Date of Last Annual Return:	2001-12-24
Major Products:	292 other special-purpose mechanical device 293 general machinery

Shareholders

Major Shareholders

(Unit: NTD)

Name	Subscription Amount
Zhi Xu
2,000,000
Xumi Xu	500,000
Yitong Xu	500,000

Management Information

Core Management

Directors

1
Name		Zhi Xu
Position		Board Chairman
2
Name	Xumi Xu
Position		Director
3
Name	Yitong Xu
Position		Director

Personnel Structure

Total Employees

About 30 Employees

Operation Information

Offices & Factories

	Headquarters
Add	No.6, Lane 500, Sec.1, Chung San Rd., Yuanlin, Changhua Taiwan R.O.C.

Production Information

Subject is engaged in manufacturing of tire manufacturing equipment, etc.

Subject has a factory in Changhua County, Taiwan for production.

Purchase Information

The registered activities of subject:

1	Import and export of rubber manufacturing machinery, plastic machinery, food machinery, textile machinery, paper machinery
2	Import and export of the above relevant materials

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

Sales Information

Subject is engaged in sale of tire manufacturing equipment, etc.

Subject’s major products include bias making equipment, tire testing equipment, tire packaging equipment, bead wire making equipment, tube curing press, tread making equipment, tube numbering printer, tire building equipment, flap curing press and tire curing equipment, etc.

The products are applied to motorcycle and bicycle, etc.

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

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Products	Components and raw materials
Payment Terms	Cash, T/T, etc

Import

Subject has little import.

Sales

Domestic Markets

Product	Tire manufacturing equipment, etc
Selling Terms	Cash, T/T, etc

Export

Product	Tire manufacturing equipment, etc
Selling 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 Ms. Gao declined to disclose its financials citing the grounds of company’s confidentiality; from other sources we could not obtain such information, either.

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

Name	Ms. Gao
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.58
UK Pound	1	Rs.99.98
Euro	1	Rs.79.39

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	NIS

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.