MIRA INFORM REPORT

Report Date :

17.07.2014

IDENTIFICATION DETAILS

Name :	CHUNG HWA PULP CORPORATION
Registered Office :	No.100, Guanghua St., Ji-An Township, Hualien County 973
Country :	Taiwan
Financials (as on) :	31.12.2013
Date of Incorporation :	10.08.1968
Com. Reg. No.:	94025264
Legal Form :	Joint Stock Company
Line of Business :	· engaged in manufacturing & sales of paper items and chemicals items includes paper pulp products, paper products, bleached hardwood pulp and wood free paper, industrial chemical products & fertilizer. · Engaged in manufacturing, trading and agent of paper pulp and paper. · Engaged in operation of raw materials, related products and by-product of paper. · Engaged in operation of related business about felling, afforestation, lumber and processing of wood. · Engaged in operation of designing, manufacturing, trading for related machine · Engaged in operation of manufacturing and trading of raw materials, related products and by-product of chemicals. · Engaged in renting and sales of plants, commercial building and house. · Engaged in commensalism of electricity and gas.
No. of Employees	About 2,000 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 :	Slow but correct
Litigation :	Exists

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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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:	Chung Hwa Pulp Corporation
Supplied Name:	Chung Hwa Pulp Corporation
Trading Address:	No.100, Guanghua St., Ji-An Township, Hualien County 973, Taiwan (R.O.C.)
Supplied Address:	Taiwan No 100, Guanghua Str, Ji'an Township, Hualien Country 97356
Telephone Number:	+886-3-842-1171
Fax Number:	+886-3-842-2843

Notes: The exact name and address are as above.

Credit Summary

Credit Opinion:

Business connections are permissible.

Company Identification Details

Registered Name:	Chung Hwa Pulp Corporation
Registered Address:	No.100, Guanghua St., Ji-An Township, Hualien County 973, Taiwan (R.O.C.)
Date of Foundation:	1968-8-10
Registration Number:	94025264
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 13,000,000,000 (USD 430,300,000) (As of 2014.7, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 12,578,353,160 (USD 416,343,490)
Legal Representatives:	Kunxiong Huang
Legal Form:	Joint Stock Company
Principal Activities:	engaged in manufacturing & sales of paper items and chemicals items includes paper pulp products, paper products, bleached hardwood pulp and wood free paper, industrial chemical products & fertilizer.
Staff:	About 2,000 Employees
Listed at Stock Exchange:	Yes; (Public, TPE: 1905)
Date of Last Annual Return:	2014-5-6

History

Subject was incorporated on 1968-8-10 with registered number 94025264 as Joint Stock Company in Taiwan.

Subject listed on Taiwan stock exchange on 1975-2-7.

Shareholders

(Unit: NTD)

Name	Subscription Amount
Yuen Foong Yu Investment Holding Co., Ltd	696,117,075
Lotus Ecoscience & Engineering Co., Ltd.
130,000
Yong Xin Yi Enterprises Co., Ltd (Liberal Translation)	8,017,520
Guande He	78,280

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

Shareholder Information:

1
Registered Name:	Yuen Foong Yu Investment Holding Co., Ltd
Registered Address:	No.14, Jeou Tang Rd., Dashu Dist., Kaohsiung City 840, Taiwan (R.O.C.)
Date of Foundation:	1950-2-20
Registration Number:	85066002
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C
Registered Capital:	NTD 22,000,000,000 (USD 728,200,000) (As of 2014.7, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 16,603,714,950 (USD 549,582,965)
Legal Representatives:	Xiuying Qiu
Legal Form:	Joint Stock Company
Listed at Stock Exchange:	No
Date of Last Annual Return:	2014-6-23
2
Registered Name:	Lotus Ecoscience & Engineering Co., Ltd.
Registered Address:	16F, No.51, Sec.2, Chung Ching S. Rd., Taipei Taiwan
Date of Foundation:	1989-1-6
Registration Number:	23148693
Registry:	Taipei City Government
Registered Capital:	NTD 202,000,000 (USD 6,686,200) (As of 2014.7, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 202,000,000 (USD 6,686,200)
Legal Representatives:	Xiuying Qiu
Legal Form:	Joint Stock Company
Listed at Stock Exchange:	No
Date of Last Annual Return:	2014-5-23
3
Registered Name:	Yong Xin Yi Enterprises Co., Ltd (Liberal Translation)
Registered Address:	15F., No.51, Sec. 2, Chongqing S. Rd., Zhongzheng Dist., Taipei City, Taiwan (R.O.C.)
Date of Foundation:	1988-12-22
Registration Number:	23218515
Registry:	Taipei City Government
Registered Capital:	NTD 199,000,000 (USD 6,586,900) (As of 2014.7, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 199,000,000 (USD 6,586,900)
Legal Representatives:	Meiqing He
Legal Form:	Joint Stock Company
Listed at Stock Exchange:	No
Date of Last Annual Return:	2011-7-20

Subsidiaries & Branches

Factories

1
Address:	No.21, Gushan 3rd Rd., Gushan Dist., Kaohsiung City, Taiwan (R.O.C.)
Date of Registration:	2007-11-16
Factory Registration Number:	64006084
Factory Manager:	Shaoren Lv
Status:	In Production
Date of Last Annual Return:	2013-5-1
Major Products:	161 Printing and its assist
2
Address:	No.551, Sec. 1, Fengshi Rd., Fengyuan Dist., Taichung City, Taiwan (R.O.C.)
Date of Registration:	2011-9-30
Factory Registration Number:	66000568
Factory Manager:	Shuxin Xu
Status:	In Production
Date of Last Annual Return:	2013-9-30
Major Products:	159 Other paper products
3
Address:	No. 112, No. 112-1 and No. 112-14, Jiutang Rd., Dashu Dist., Kaohsiung City, Taiwan (R.O.C.)
Date of Foundation:	1990-12-31
Date of Registration:	1990-12-31
Factory Registration Number:	99661699
Factory Manager:	Zhicheng Huang
Status:	In Production
Date of Last Annual Return:	2013-1-24
Major Products:	151 Paper pulp, paper and paper board 159 Other paper products
4
Address:	No.14, Jiutang Rd., Dashu Dist., Kaohsiung City, Taiwan (R.O.C.)
Date of Foundation:	1995-12-22
Date of Registration:	1996-1-9
Factory Registration Number:	99661708
Factory Manager:	Yanzhang Xie
Status:	In Production
Date of Last Annual Return:	2013-1-24
Major Products:	292 Other special developing 293 General machinery
5
Address:	No.371, Sec. 4, Zhongxing Rd., Taitung County, Taiwan (R.O.C.)
Date of Foundation:	1970-1-1
Date of Registration:	1970-1-1
Factory Registration Number:	99666348
Factory Manager:	Rongming Lin
Status:	In Production
Date of Last Annual Return:	2013-2-7
Major Products:	151 Paper pulp, paper and paper board
6
Address:	No.100, Guanghua St., Ji'an Township, Hualien County, Taiwan (R.O.C.)
Date of Registration:	1970-1-29
Factory Registration Number:	99666559
Factory Manager:	Guoyuan Zeng
Status:	In Production
Date of Last Annual Return:	2013-10-17
Major Products:	151 Paper pulp, paper and paper board 292 Other special developing 140 Wooden and bamboo products

Offices

Hong Kong Office:

Tel:+852-2722-8738

Address: Room A&C, 2F, Sha Tin Industrial Bldg., No.22-28, Wo Shui St., Fo Tan, Hong Kong

Shanghai Office:

Tel:+86-21-5358-4688

Address: 22F, Yueda 889 Center, 1111 Changshou Road, Jing'an District, Shanghai City, China

Shenzhen Office:

Tel:+86-755-8297-5337

Address: Room C, 21F Rainbow Bldg., Tsa-Tang South Rd., Futian District, Shenzhen City, Kwangtung Province, China

Major Related Companies

Guangdong Fengding Paper Co., Ltd (Liberal Translation)

Tel: +86-758-865-9032

Fax: +86-758-865-9168

Address: Shoudiao, Nanzhen Village, Guangning County, Zhaoqing City, Guangdong Province, The Mainland Of China

Zhaoqing dingfeng linye co., ltd (Liberal Translation)

Tel: +86-758-865-9032

Fax: +86-758-865-9168

Address: Shoudiao, Nanzhen Village, Guangning County, Zhaoqing City, Guangdong Province, The Mainland Of China

Branch Companies

1
Name	Taipei Branch
Address	12F., No.51, Sec. 2, Chongqing S. Rd., Zhongzheng Dist., Taipei City, Taiwan (R.O.C.)
Registration Number	53655554
Date of Registration	2012-8-20
Status
Manager Name	Zhenggang Chen
Date of Last Annual Return	--
2
Name	Taichung Branch
Address	5F., No.188, Zhonggong 2nd Rd., Xitun Dist., Taichung City, Taiwan (R.O.C.)
Registration Number	53655549
Date of Registration	2012-8-20
Status
Manager Name	Zhenggang Chen
Date of Last Annual Return	--
3
Name	Tainan Branch
Address	3F., No.502, Sec. 2, Yonghua Rd., West Central Dist., Tainan City, Taiwan (R.O.C.)
Registration Number	53655533
Date of Registration	2012-8-20
Status
Manager Name	Junxiong Huang
Date of Last Annual Return	--

Personnel Information

Core Management

Directors

1
Name	Kunxiong Huang
Position	Board Chairman/Manager
Date of Appointment	2011-7-1
2
Name	Shouchuan He
Position	Director
3
Name	Xiuying Qiu
Position	Director
4
Name	Zhenyang Peng
Position	Director/Manager
Date of Appointment	2012-10-1
5
Name	Gufeng Lin
Position	Director/ Manager
Date of Appointment	2006-11-3
6
Name	Shengfei Yan
Position	Director
7
Name	Zhicheng Huang
Position	Director/ Manager
Date of Appointment	2012-10-1
8
Name	Benji Jiang
Position	Independent Director
9
Name	Sikuan Chen
Position	Independent Director
10
Name	Wushun Zheng
Position	Supervisor
11
Name	Guande He
Position	Supervisor

Personnel Structure

Total Employees

About 2,000 Employees

Operation Information

Offices & Factories

	Headquarters
Add	No.100, Guanghua St., Ji-An Township, Hualien County 973, Taiwan (R.O.C.)

Production Information

l Subject is a manufacturer of paper items, chemicals items

l It is introduced that subject has 6 factories in Taiwan for production.

l It is introduced that subject has obtained ISO1400 and ISO 0991certifications.

Purchase Information

l The registered activities of subject:

Business Code	Details
--	Manufacturing, trading and agent of paper pulp and paper.
--	Operation of raw materials, related products and by-product of paper.
--	Operation of related business about felling, afforestation, lumber and processing of wood.
--	Operation of designing, manufacturing, trading for related machine.
--	Operation of manufacturing and trading of raw materials, related products and by-product of chemicals.
--	Renting and sales of plants, commercial building and house.
D101050	Commensalism of electricity and gas.

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

Sales Information

l The subject is mainly engaged in sales of paper items & chemicals items

l subject’s major products includes paper pulp products, paper products, bleached hardwood pulp and wood free paper, industrial chemical products & fertilizer.

l It is introduced that subject’s selling territory covers Asia, Europe, America and etc.

l It is introduced that subject’s major customers are printing industry, packaging industry, chemical industry, agriculture industry and etc.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase (Taiwan and Mainland, China)

Product	Payment Terms	Proportion
Raw materials and etc	COD, CBD and etc	100%

Foreign Purchase

Product	Payment Terms	Proportion
Raw materials and etc	CBD and etc	100%

Sales

Domestic Markets

Product	Sales Terms	Proportion
Paper Items, chemicals items and etc.	COD, CBD and etc	100%

Export

Product	Sales Terms	Proportion
Paper Items, chemicals items and etc.	CBD and etc	100%

Balance Sheet

Unit: NTD/000

	2013-12-31	2012-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	373,251	649,056
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	293	3,667
Current available-for-sale financial assets
Current available-for-sale financial assets, net	834,763	665,007
Current bond investment without active market
Current bond investment without active market, net	478,481	2,020,142
Accounts receivable, net
Accounts receivable, net	2,275,348	2,138,214
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	782,106	352,964
Other receivables due from related parties
Other receivables due from related parties, net	1,309,157	186,686
Inventories
Total inventories	3,713,098	3,427,537
Current biological assets
Current biological assets, net	2,842,999	2,965,310
Prepayments
Total prepayments	378,855	389,643
Other current assets
Other current financial assets	22,869	25,521
Other current assets, others	162,286	78,664
Total other current assets	185,155	104,185
Total current assets	13,173,506	12,902,411
Non-current assets
Non-current financial assets at cost
Non-current financial assets at cost, net	142,863	154,189
Investments accounted for using equity method
Investments accounted for using equity method, net	883,680	523,448
Property, plant and equipment
Total property, plant and equipment	13,156,248	13,472,390
Deferred tax assets	203,559	192,420
Other non-current assets
Long-term prepaid rents	248,075	240,756
Other non-current assets, others
Total other non-current assets, others	238,538	278,140
Total other non-current assets	486,613	518,896
Total non-current assets	14,872,963	14,861,343
Total assets	28,046,469	27,763,754
Total assets (USD/000)	928,338.12	918,980.26
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	2,678,143	2,301,990
Short-term notes and bills payable
Total short-term notes and bills payable	589,760	559,799
Current financial liabilities at fair value through profit or loss
Total current financial liabilities at fair value through profit or loss	2,686	2
Accounts payable
Total accounts payable	1,225,163	1,105,445
Accounts payable to related parties
Total accounts payable to related parties	611,573	695,760
Other payables
Other payables, others	659,015	684,041
Total other payables	659,015	684,041
Current provisions
Total current provisions	109,993	123,169
Other current liabilities
Advance receipts
Unearned revenue	27,132	43,353
Total advance receipts	27,132	43,353
Long-term liabilities, current portion
Total long-term liabilities, current portion	0	69,302
Other current liabilities, others	102,658	64,903
Total other current liabilities	129,790	177,558
Total current liabilities	6,006,123	5,647,764
Non-current liabilities
Long-term borrowings
Total long-term borrowings	360,000	281,830
Deferred tax liabilities
Total deferred tax liabilities	1,995,720	1,994,032
Other non-current liabilities
Accrued pension liabilities	246,642	208,821
Other non-current liabilities, others	17,049	33,922
Total other non-current liabilities	263,691	242,743
Total non-current liabilities	2,619,411	2,518,605
Total liabilities	8,625,534	8,166,369
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	12,578,353	12,578,353
Total capital stock	12,578,353	12,578,353
Capital surplus
Total capital surplus	8	0
Retained earnings
Legal reserve	0	0
Special reserve	1,186,894	1,186,894
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	2,703,321	3,451,806
Total retained earnings	3,890,215	4,638,700
Other equity interest
Total other equity interest	474,648	48,945
Total equity attributable to owners of parent	16,943,224	17,265,998
Non-controlling interests	2,477,711	2,331,387
Total equity	19,420,935	19,597,385
Total equity (USD/000)	642,832.95	648,673.44

(As of 2014.7, 1 NTD = 0.0331 USD)

Profit and Loss Account

Unit: NTD/000

	2013	2012
Operating revenue
Net sales revenue
Sales revenue
Total sales revenue	20,567,094	5,036,466
Total sales revenue (USD/000)	680,770.81	166,707.02
Sales returns	440,975	100,526
Net sales revenue	20,126,119	4,935,940
Other operating revenue
Other operating revenue, net	65,644	20,566
Total operating revenue	20,191,763	4,956,506
Operating costs
Cost of sales
Total cost of sales	19,452,114	4,576,075
Other operating costs	57,614	14,370
Total operating costs	19,509,728	4,590,445
Gross profit (loss) from operations	682,035	366,061
Gross profit (loss) from operations	682,035	366,061
Operating expenses
Selling expenses
Total selling expenses	1,250,738	296,058
Administrative expenses
Total administrative expenses	252,149	61,968
Research and development expenses
Total research and development expenses	16,908	452
Total operating expenses	1,519,795	358,478
Net other income (expenses)
Other income	14,321	-37,414
Net other income (expenses)	14,321	-37,414
Net operating income (loss)	-823,439	-29,831
Non-operating income and expenses
Other income
Interest income
Total interest income	47,661	10,268
Dividend income	18,022	196
Gain recognised in bargain purchase transaction	0	4,463,056
Other income, others	56,855	14,783
Total other income	122,538	4,488,303
Other gains and losses
Gains on disposals of investments	12,958	6,083
Foreign exchange gains	41,679	-8,086
Gains on financial assets (liabilities) at fair value through profit or loss	-25,135	3,665
Miscellaneous disbursements	10,498	0
Other gains and losses, net	19,004	1,662
Finance costs
Interest expense	37,129	8,655
Finance costs, net	37,129	8,655
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	37,848	7,905
Total non-operating income and expenses	142,261	4,489,215
Profit (loss) from continuing operations before tax	-681,178	4,459,384
Tax expense (income)
Total tax expense (income)	1,633	15,811
Profit (loss) from continuing operations	-682,811	4,443,573
Profit (loss)	-682,811	4,443,573
Profit (loss) (USD/000)	-22,601.04	147,082.27
Other comprehensive income
Exchange differences on translation	356,578	-76,401
Unrealised gains (losses) on valuation of available-for-sale financial assets	185,900	20,285
Actuarial gains (losses) on defined benefit plans	-49,849	-51,963
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	18,095	49,999
Other comprehensive income, net	510,724	-58,080
Total comprehensive income	-172,087	4,385,493
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	-694,096	4,460,813
Profit (loss), attributable to non-controlling interests	11,285	-17,240
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	-318,411	4,457,795
Comprehensive income, attributable to non-controlling interests	146,324	-72,302
Basic earnings per share
Basic earnings (loss) per share from continuing operations	-0.55	5.74
Total basic earnings per share	-0.55	5.74

(As of 2014.7, 1 NTD = 0.0331 USD)

Cash Flow

	2013	2012
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	-681,178	4,459,384
Profit (loss) before tax	-681,178	4,459,384
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	1,017,602	250,341
Provision (reversal of provision) for bad debt expense	100	240
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	25,135	-3,665
Interest expense	37,129	8,655
Interest income	-47,661	-10,268
Dividend income	-18,022	-196
Share of loss (profit) of associates and joint ventures accounted for using equity method	-37,848	-7,905
Loss (gain) on disposal of property, plan and equipment	-35	-621
Loss (gain) on disposal of investments	-12,958	-6,083
Impairment loss on non-financial assets	26,696	-16,980
Unrealized foreign exchange loss (gain)	-9,130	0
Other adjustments to reconcile profit (loss)	-14,321	-4,425,642
Total adjustments to reconcile profit (loss)	966,687	-4,212,124
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in notes receivable	-84,229	454,063
Decrease (increase) in accounts receivable due from related parties	-393,068	343,798
Decrease (increase) in inventories	198,597	-225,134
Decrease (increase) in biological assets	-172,069	97,313
Decrease (increase) in prepayments	11,580	15,634
Decrease (increase) in other current assets	-89,393	-39,976
Decrease (increase) in other financial assets	3,581	5,044
Total changes in operating assets	-525,001	650,742
Changes in operating liabilities
Increase (decrease) in notes payable	115,754	-738,127
Increase (decrease) in accounts payable to related parties	-106,504	699,564
Increase (decrease) in other payable	-27,514	231,135
Increase (decrease) in provisions	-13,176	87,712
Increase (decrease) in receipts in advance	-17,516	43,766
Increase (decrease) in other current liabilities	35,799	-179,817
Increase (decrease) in accrued pension liabilities	-22,238	-5,699
Total changes in operating liabilities	-35,395	138,534
Total changes in operating assets and liabilities	-560,396	789,276
Total adjustments	406,291	-3,422,848
Cash inflow (outflow) generated from operations	-274,887	1,036,536
Interest received	57,245	52,025
Dividends received	21,237	9,756
Interest paid	-38,206	-30,415
Income taxes refund (paid)	-797	0
Net cash flows from (used in) operating activities	-235,408	1,067,902
Cash flows from (used in) investing activities
Acquisition of financial assets at fair value through profit or loss, designated as upon initial recognition	-42,841	0
Proceeds from disposal of financial assets at fair value through profit or loss, designated as upon initial recognition	23,764	5,216
Acquisition of available-for-sale financial assets	-525,000	0
Proceeds from disposal of available-for-sale financial assets	542,354	8,762
Proceeds from repayments of bond investment without active market	1,603,184	43,068
Acquisition of financial assets at cost	-3,674	-5,305
Proceeds from capital reduction of financial assets at cost	15,000	10,000
Acquisition of investments accounted for using equity method	-329,000	0
Proceeds from disposal of investments accounted for using equity method	22,955	0
Proceeds from capital reduction of investments accounted for using equity method	6,600	0
Acquisition of property, plant and equipment	-630,532	-364,324
Proceeds from disposal of property, plant and equipment	77	16,222
Increase in other receivables due from related parties	-1,122,471	0
Decrease in other receivables due from related parties	0	8,483
Increase in long-term lease and installment receivables	-2,048	0
Increase in other non-current assets	48,156	36,328
Other investing activities	0	33,574
Net cash flows from (used in) investing activities	-393,476	-207,976
Cash flows from (used in) financing activities
Increase in short-term loans	357,778	86,829
Increase in short-term notes and bills payable	29,961	314,904
Repayments of long-term debt	-5,157	-954,594
Decrease in other non-current liabilities	-16,873	-13,381
Net cash flows from (used in) financing activities	365,709	-566,242
Effect of exchange rate changes on cash and cash equivalents	-12,630	-70,053
Net increase (decrease) in cash and cash equivalents	-275,805	223,631
Cash and cash equivalents at beginning of period	649,056	425,425
Cash and cash equivalents at end of period	373,251	649,056
Cash and cash equivalents reported in the statement of financial position	373,251	649,056

Note: The above financial information was after adopting IFRSs.

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:	2013,Huajian 306
Date of Trial:	2013-11-29
Reason:	Squatter clearance for returning the land
Complaint:	Hualian Forest District Office Forestry Bureau, Council of Agriculture, Executive Yuan
Defendant:	Chung Hwa Pulp Corporation

Interview Details

Department

Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.19
UK Pound	1	Rs.103.14
Euro	1	Rs.81.66

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.