MIRA INFORM REPORT

 

Report Date :

11.01.2014

 

IDENTIFICATION DETAILS

 

Name :

NIEN HSING TEXTILE CO., LTD.

 

 

Registered Office :

No.119-3, Lin 8, Tong Ming Li, Hou Lung Town, Miao Li Shien

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

13.10.1986

 

 

Com. Reg. No.:

22266307

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacture and sales of textile.

 

 

No. of Employees :

About 28000 Employees

About 900 Employees (Taiwan)

 

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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. 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:

Nien Hsing Textile Co., Ltd.

Supplied Name:

NIEN HSING TEXTILE CO LTD

Trading Address:

No.119-3, Lin 8, Tong Ming Li, Hou Lung Town, Miao Li Shien, Taiwan, R.O.C.

Supplied Address:

119-3 Lin 8, Hsia Fu Wei Tong Ming Li Houlung Chen Miaoli Hsien 356 Taiwan

Telephone Number:

+886-2-2656-8888

Fax Number:

+886-2-2656-8877

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

NIEN HSING TEXTILE CO., LTD.

Registered Address:

No.119-3, Lin 8, Tong Ming Li, Hou Lung Town, Miao Li Shien, Taiwan, R.O.C.

Date of Foundation:

1986-10-13

Registration Number:

22266307

Registry:

Department of Commerce, Ministry of Economic Affairs, R.O.C.

Registered Capital:

NTD 6,000,000,000 (USD 203,400,000)

(As of 2013.10, 1 NTD = 0.0339 USD)

Paid-up Capital:

NTD 4,000,000,000 (USD 135,600,000)

Legal Representatives:

Chaoguo Chen

Legal Form:

Joint Stock Company

Principal Activities:

Manufacture and sales of textile.

Staff:

About 28000 Employees

About 900 Employees (Taiwan)

Listed at Stock Exchange:

Yes; Stoke Symbol:1451

Date of Last Annual Return:

2013-7-15

 

 

History

 

Subject was incorporated on 1986-10-13 with registered number 22266307 as Joint Stock Company in Taiwan.

 

Subject listed on Taiwan Stock Exchange on 1992-12-21

 

 

Shareholders

 

Name

Subscription Shares

Ron Yuan Enterprise Inc.

98,029,307

Zipei Yang

151,061

Shuxuan Cai

48,788

Renzhou Chen

317,238

Qiuzhen investment limited(literal translation)

92,944

Qiuzhen Chen

18,693,520

 

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

 

 

Subsidiaries & Branches

 

Parent Company

Registered Name:

Ron Yuan Enterprise Inc.

Registered Address:

No.33, Po Ai St Chu Nan Chen Miao Li Shien

Date of Foundation:

1993-10-5

Registration Number:

84573213

Registry:

Department of Commerce, Ministry of Economic Affairs, R.O.C.

Registered Capital:

NTD 863,638,690 (USD 29,277,352)

(As of 2013.10, 1 NTD = 0.0339 USD)

Paid-up Capital:

NTD 863,638,690 (USD 29,277,352)

Legal Representatives:

Chaoguo Chen

Legal Form:

Joint Stock Company

Date of Last Annual Return:

2013-1-10

Related Company

Registered Name:

Qiuzhen investment limited(literal translation)

Registered Address:

4F, No. 551, Funan Road, Xinyi District, Taipei City

Date of Foundation:

2004-7-6

Registration Number:

27337999

Registry:

Taipei City Government

Registered Capital:

NTD 10,000,000 (USD 339,000)

(As of 2013.10, 1 NTD = 0.0339 USD)

Legal Representatives:

Qiuzhen chen

Legal Form:

Private Limited Liability Company

Listed at Stock Exchange:

No 

Date of Last Annual Return:

2011-2-11

 

Factories

1

Address:

No. 200, Zhongzheng1 Road, 14 Neighbour, Xinhua Alley, Toufen Town, Miaoli County

Date of Foundation:

1987-11-10

Date of Registration:

1987-11-10

Date Of Closing Business

2009-1-19

Factory Registration Number:

99632499

Factory Manager:

Rongqiu chen

Status:

Close business

Date of Last Annual Return:

2009-1-19

2

Address:

No. 199-3, Down The Tail, Dongming Lane, Houlong Town, Miaoli County

Date of Foundation:

1987-5-13

Date of Registration:

1988-11-28

Factory Registration Number:

99632538

Factory Manager:

Chaoguo chen

Status:

In Production

Date of Last Annual Return:

2009-7-2

 

 

Personnel Information

 

Core Management

 

Directors

1

Name

Chaoguo chen

Position

Board Chairman

2

Name

Yifeng chen

Position

Deputy chairman

3

Name

Rongqiu chen

Position

Director

4

Name

Chaoyuan chen

Position

Director/Manager

Date of Appointment

2010-7-13

5

Name

Zipei yang

Position

Director

6

Name

Zigang wan

Position

Director/Manager

Date of Appointment

2011-8-23

7

Name

Shuxuan cai

Position

Director

8

Name

Renzhou chen

Position

Director

9

Name

Jialiang han

Position

Director

10

Name

Qiuzhen chen

Position

Supervisor

11

Name

Jingrao wang

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 28000 Employees

About 900 Employees (Taiwan)

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

No.119-3, Lin 8, Tong Ming Li, Hou Lung Town, Miao Li Shien, Taiwan, R.O.C.

 

Production Information

 

Subject is engaged in manufacturing of textile, etc.

Subject has factories in Taiwan, Mexico, Nicaragua, Vietnam, Cambodia, etc for production.

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

C301010

The spinning industry

C302010

Weaving industry

C306010

Garment industry

F104110

Cloth handicrafts, clothing, shoes, hats, umbrella, garment accessories wholesale

F111090

Building materials wholesale

F401010

The international trade

G801010

Warehousing industry

ZZ99999

Besides licensed business, all other business items those are not banned or restricted.

 

The components and raw material for production are purchased both home and abroad.

We got some information about subject’s production for your reference.

Region

Production

Employees

Mexico

1 denim mill

850 employees

Nicaragua

1 denim mill

230 employees

Lesotho

3 garment factories

1 Denim mill

1 Yarn spinning mill

8,200 employees

Cambodia

2 garment factories

5,500 employees

Vietnam

3 garment factories

 

8,000 employees

 

Sales Information

 

The subject is mainly engaged in sales of textile, etc.

The subject sales regions include Asia, America, Europe, etc.

Subject’s main customers include Gap International Sourcing Ltd, Dress Barn Inc, Brand Resource Ltd The Cato Corporation, Oshkosh B’Gosh Inc, etc.

Major products sold

Type

Product

Fabric/Yarn

Rigid Denim

Stretch Denim

Piece Dyed Fabric

Garment

Jeans Wear

Casual Wear

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Terms

Proportion

Components and raw material

Cash, T/T, etc

100%

 

Foreign Purchase

Product

Terms

Proportion

Components and raw material

L/C, etc

100%

 

Sales

 

Domestic Markets

Product

Terms

Proportion

Textile, etc.

T/T, Cash, etc

100%

 

Export

Product

Terms

Proportion

Textile, etc.

L/C, etc

100%

 

 

Balance Sheet

 

Unit: NTD/000

 

2012-12-31

2011-12-31

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

2,434,103.00

2,935,969.00

Financial assets measured at fair value through profit or loss - current

1,114,413.00

319,134.00

Accounts receivable - net

4,603,563.00

6,215,578.00

Accounts receivable - related parties - net

100,608.00

44,957.00

Other receivables - related parties

5,516.00

1,687.00

Other financial assets - current

98,077.00

30,504.00

Inventories

694.00

3,009.00

Other current assets

81,328.00

415,671.00

Current assets

8,438,302.00

9,966,509.00

Funds and Investments

 

 

Available-for-sale financial assets - non current

773,904.00

0.00

Financial assets carried at cost - non current

168,324.00

93,548.00

Equity investments under equity method

4,462,723.00

4,944,846.00

Investments

4,462,723.00

4,944,846.00

Funds and long-term investments

5,404,951.00

5,038,394.00

Fixed Assets

 

 

Cost

 

 

Land

1,234,164.00

1,234,164.00

Machinery and equipment

281,189.00

253,821.00

Leasehold improvements

57,595.00

56,911.00

Other facilities

87,325.00

84,487.00

Fixed assets cost

1,660,273.00

1,629,383.00

Accumulated depreciation

-348,530.00

-273,054.00

Construction in process and prepayment for equipments

67,406.00

38,558.00

Fixed assets

1,379,149.00

1,394,887.00

Intangible Assets

 

 

Deferred pension cost

0.00

2,525.00

Intangible assets

0.00

2,525.00

OtherAssets

 

 

Rental assets

664,561.00

674,940.00

Guarantee deposits paid

17,354.00

17,297.00

Deferred charges

75,898.00

147,995.00

Deferred income tax assets - non current

11,976.00

0.00

Other assets

769,789.00

840,232.00

Assets

15,992,191.00

17,242,547.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Financial liabilities measured at fair value through profit or loss - current

69,072.00

102,583.00

Accounts payable

229,922.00

133,631.00

Accounts payable - related parties

3,014,201.00

4,679,980.00

Income tax payable

260,689.00

397,905.00

Accrued expenses

524,369.00

560,157.00

Long-term liabilities - current portion

1,435,613.00

0.00

Other current liabilities

197,418.00

166,683.00

Current liabilities

5,731,284.00

6,040,939.00

Long term Liabilities

 

 

Bonds payable

0.00

1,404,707.00

Long-term liabilities

0.00

1,404,707.00

Reserves

 

 

Other Liabilities

 

 

Pension reserve / accrued pension liability

40,199.00

30,236.00

Guarantee deposits received

5,246.00

5,063.00

Deferred income tax liabilities

0.00

1,212.00

Other liabilities - other

15,684.00

15,684.00

Other liabilities

61,129.00

52,195.00

Liabilities

5,792,413.00

7,497,841.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

4,471,854.00

4,454,904.00

Advance receipts for common stock

16,450.00

14,440.00

Capital Surplus

 

 

Capital surplus - additional paid-in capital

1,110,433.00

1,098,043.00

Capital surplus - treasury stock transactions

65,698.00

65,698.00

Capital surplus - gain on disposal of fixed assets

56.00

56.00

Capital surplus - long-term equity investments

258,331.00

262,246.00

Capital surplus - employee stock option

87,723.00

81,185.00

Capital surplus - stock option

153,508.00

153,508.00

Capital surplus

1,675,749.00

1,660,736.00

Retained Earnings

 

 

Legal reserve

1,327,006.00

1,218,074.00

Special reserve

357,595.00

215,585.00

Unappropriated retained earnings

2,831,708.00

2,538,562.00

Retained earnings

4,516,309.00

3,972,221.00

Stockholders' Equity and Other adjustmen

 

 

Cumulative translation adjustments

-51,394.00

88,039.00

Net loss not recognized as pension cost

-33,693.00

-15,956.00

Unrealized gains (losses) on financial instruments

-395,497.00

-429,678.00

Equity adjustments

-480,584.00

-357,595.00

Stockholdersˉ equity

10,199,778.00

(USD 345,772,474.20)

9,744,706.00

(USD 330,045,533.40)

Number of treasury stock acquired by the company and subsidiaries (unit: share)

0.00

0.00

 

1,645,000.00

1,444,000.00

            (As of 2013.10, 1 NTD = 0.03373 USD)

 

 

Profit and Loss Account

 

Unit: NTD/000

 

2012

2011

Sales

41,612,567.00

(USD 1,410,666,021.30)

46,311,921.00

(USD 1,569,974,121.90)

Sales returns

62,876.00

61,682.00

Sales discounts and allowances

172,438.00

20,027.00

Sales

41,377,253.00

46,230,212.00

Other operating revenue

591,058.00

445,875.00

Operating income

41,968,311.00

46,676,087.00

Cost of sales

38,430,074.00

43,531,512.00

Other operating costs

265,766.00

201,492.00

Operating costs

38,695,840.00

43,733,004.00

Gross profit (loss) from operations

3,272,471.00

2,943,083.00

Selling expense

492,982.00

494,196.00

General and administrative expenses

508,329.00

496,876.00

Research and development expenses

1,003,090.00

872,075.00

Operating expenses

2,004,401.00

1,863,147.00

Operating income (loss)

1,268,070.00

1,079,936.00

Non-Operating Income

 

 

Interest income

13,962.00

12,998.00

Inome from long-term equity investments under the equity method

330,730.00

434,615.00

Dividends

5,600.00

3,869.00

Investment income

336,330.00

438,484.00

Gains on disposal of fixed assets

66.00

5,532.00

Gains on sale of investments

0.00

177.00

Foreign exchange gains

7,317.00

0.00

Rent income

22,152.00

22,060.00

Revaluation gain on financial assets

9,981.00

0.00

Revaluation gain on financial liabilities

31,998.00

0.00

Miscellaneous income

7,352.00

55,787.00

Non-operating revenues and gains

429,158.00

535,038.00

Non-Operating Expenses

 

 

Interest expense

5,539.00

27,202.00

Loss on sale of investments

7,344.00

0.00

Foreign exchange losses

0.00

11,636.00

Impairment loss on assets

50,054.00

0.00

Revaluation loss on financial assets

0.00

9,057.00

Revaluation loss on financial liabilities

0.00

89,842.00

Miscellaneous disbursements

15,813.00

11,784.00

Non-operating expenses and losses

78,750.00

149,521.00

Income from continuing operations before income tax

1,618,478.00

1,465,453.00

Income tax expense (benefit)

269,579.00

376,134.00

Income from continuing operations

1,348,899.00

1,089,319.00

Net income (loss)

1,348,899.00

(USD 45,727,676.00)

1,089,319.00

(USD 36,927,914.00)

Primary Earnings per Share

 

 

Income (loss) from continuing operations

3.02

2.45

Primary earnings per share

3.02

2.45

Diluted earnings per share

 

 

Income (loss) from continuing operations

2.78

2.30

Diluted earnings per share

2.78

2.30

            (As of 2013.10, 1 NTD = 0.03373 USD)

 

 

Cash flow

Unit: NTD/000

 

2012

2011

Cash Flows from Operating Activities - Indirect Method

 

 

 Net Income (Loss)

1,348,899.00

1,089,319.00

 Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities

 

 

 Depreciation Expense

89,313.00

50,575.00

 Amortization Expense

225,695.00

247,195.00

 Share-based Compensation

6,538.00

11,810.00

 Amortization of Discounts (Premiums) on Bonds Payable

5,290.00

24,533.00

 Investment Loss (Income) Recognized under Equity Method

-330,730.00

-434,615.00

 Cash Dividends Received from Investments Accounted for under Equity Method

78,175.00

89,887.00

 Loss (Gain) on Disposal of Property, Plan and Equipment

-66.00

-5,532.00

 Loss (Gain) on Disposal of Investments

7,344.00

-177.00

 Unrealized Revaluation Loss (Gain) on Financial Assets and Liabilities

-41,979.00

98,899.00

 Impairment Losses on Financial Asset

50,054.00

0.00

 Changes in Operating Assets and Liabilities

 

 

 Decrease (Increase) in Financial Assets Held for Trading

-796,345.00

304,899.00

 Decrease (Increase) in Notes Receivable

0.00

144.00

 Decrease (Increase) in Accounts Receivable

1,612,015.00

-134,809.00

 Decrease (Increase) in Accounts Receivable - Related Parties

-55,651.00

-43,597.00

 Decrease (Increase) in Other Receivable- Related Parties

-3,829.00

-1,056.00

 Decrease (Increase) in Inventories

2,315.00

516.00

 Decrease (Increase) in Other Current Assets

331,402.00

-186,266.00

 Decrease (Increase) in Other Financial Assets

-67,573.00

54,401.00

 Decrease (Increase) in Deferred Tax Assets

3,253.00

3,331.00

 Increase (Decrease) in Accounts Payable

96,291.00

72,847.00

 Increase (Decrease) in Accounts Payable - Related Parties

-1,665,779.00

615,322.00

 Increase (Decrease) in Income Tax Payable

-137,216.00

-111,308.00

 Increase (Decrease) in Accrued Expenses

-35,788.00

-115,740.00

 Increase (Decrease) in Other Current Liabilities

30,735.00

-19,121.00

 Increase (Decrease) in Deferred Tax Liabilities

-1,212.00

-11,076.00

 Increase (Decrease) in Accrued Pension Liabilities

-5,260.00

464.00

Net Cash Provided by (Used in) Operating Activities

745,891.00

1,600,845.00

Cash Flows from Investing Activities

 

 

 Acquisition of Financial Assets as Fair Value through Profit or Loss

3,425.00

14,381.00

 Acquisition of Financial Assets Carried at Cost

-75,000.00

-75,000.00

 Acquisition of Investments Accounted for by Equity Method

-258,970.00

-466,365.00

 Proceeds from Disposal of Investments Accounted for by Equity Method

47,235.00

0.00

 Purchase of Property, Plant and Equipment

-38,121.00

-71,625.00

 Proceeds from Disposal of Property, Plant and Equipment

607.00

1,240,038.00

 Decrease (Increase) in Refundable Deposits

-57.00

-5,665.00

 Increase in Deferred Charges

-153,598.00

-245,451.00

 Net Cash Provided by (Used in) Investing Activities

-474,479.00

390,313.00

Cash Flows from Financing Activities

 

 

 Increase (Decrease) in Short-term Loans

0.00

-859,335.00

 Increase (Decrease) in Guarantee Deposits Received

183.00

1,764.00

 Cash Dividends Paid

-804,811.00

-1,336,444.00

 Exercise of Employee Stock Options

31,350.00

95,727.00

 Net Cash Provided by (Used in) Financing Activities

-773,278.00

-2,098,288.00

Net Increase (Decrease) in Cash and Cash Equivalents

-501,866.00

-107,130.00

Cash and Cash Equivalents, Beginning of year

2,935,969.00

3,043,099.00

Cash and Cash Equivalents, End of year

2,434,103.00

2,935,969.00

Supplemental Cash Flow Information

 

 

 Interest Paid

1.00

2,619.00

 Interest Paid- Excluding Capitalized Interest

1.00

2,619.00

 Income Tax Paid

269,545.00

495,188.00

Non-cash Investing and Financing Activities

 

 

 Others

0.00

366,664.00

 

 

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. Chen

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.94

UK Pound

1

Rs.102.06

Euro

1

Rs.84.31

 

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

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NB

New Business

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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.