MIRA INFORM REPORT

Report Date :

05.09.2014

IDENTIFICATION DETAILS

Name :	CHINA STEEL CHEMICAL CORPORATION
Registered Office :	25F., No.88, Chenggong 2nd Rd., Qianzhen Dist., Kaohsiung City 80661,
Country :	Taiwan
Financials (as on) :	31.12.2013
Date of Incorporation :	03.02.1989
Com. Reg. No.:	23221384
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and trading of chemical products
No. of Employees	172

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

Company name and address

Company Name:	CHINA STEEL CHEMICAL CORPORATION
Supplied Name:	CHINA STEEL CHEMICAL CORPORATION
Trading Address:	25F., No.88, Chenggong 2nd Rd., Qianzhen Dist., Kaohsiung City 80661, Taiwan (R.O.C.)
Supplied Address:	5TH FL-1, 47, CHUNG HUA 4TH ROAD, KAOHSIUNG, 802
Telephone Number:	+886-7-338-3515
Fax Number:	+886-7-338-3516/7-535-4706
E-mail:	cscc@e-cscc.com.tw

Notes: The supplied address is subject’s former address, the exact name and current address are as above.

Company Identification Details

Registered Name:	CHINA STEEL CHEMICAL CORPORATION
Registered Address:	25F., No.88, Chenggong 2nd Rd., Qianzhen Dist., Kaohsiung City 80661, Taiwan (R.O.C.)
Date of Foundation:	1989-2-3
Registration Number:	23221384
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 3,000,000,000 (USD 99,300,000) (As of 2014.09, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 2,369,044,800 (USD 78.415,383)
Legal Representatives:	Lemin Zhong
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and trading of chemical products and etc.
Staff:	About 172 Employees (As of 2014-3-31)
Listed at Stock Exchange:	Yes Stock Symbol:
Date of Last Annual Return:	2014-7-7

History

Subject was incorporated on 1989-2-3 with registered number 23221384 as Joint Stock Company in Taiwan.

Subject listed on Taiwan stock exchange on 1998-11-27.

Corporate Structure

Parent Company

Registered Name:	China Steel Corporation
Registered Address:	No.1, Chung Kang Road, Lin Hai Ind. Dist., Hsiao Kang, Kaohsiung 81233, Taiwan, R.O.C.
Date of Foundation:	1971-12-3
Registration Number:	30414175
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 170,000,000,000 (USD 5,627,000,000) (As of 2014.09, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 154,638,519,570 (USD 5,118,534,998
Legal Representatives:	Ruoqi Zou
Legal Form:	Joint Stock Company
Listed at Stock Exchange:	Yes Stock Symbol: 2002
Date of Last Annual Return:	2014-7-3
Notes:	China Steel Corporation is principally engaged in steel business. The Company manufactures various steel products, including plate products, steel bars, wire rod products, hot rolled products, cold rolled products, electro galvanizing steel products, hot-dip galvanizing steel products and electromagnetic steel sheets. The Company's products are applied to ships, bridges, containers, trucks, steel structures, automobiles, furniture, home appliances, hardware fittings, computers, motors and transformers, among others. The Company distributes its products in the domestic market and to overseas markets, including Hong Kong, Mainland China, Japan, Malaysia, South Korea, Indonesia, Thailand, Vietnam and Singapore.

Factory

Address:	No.42, Zhonglin Rd., Xiaogang Dist., Kaohsiung City, Taiwan (R.O.C.)
Date of Foundation:	1990-12-4
Date of Registration:	1992-3-17
Factory Registration Number:	64004731
Factory Manager:	Lemin Zhong
Status:	In Production
Date of Last Annual Return:	2008-10-21
Major Products:	192 Coatings, dyes and pigment 170 Petroleum and coal products 199 Other chemical products
Tel	+886-7-8030619
Fax	+886-7-8030424

Offices

Name	Taipei Office
Address	Flat A, 28F., No.7, Sec. 5, Xinyi Rd., Xinyi Dist., Taipei City, Taiwan (R.O.C.)
Tel	+886-2-81010523
Fax	+886-7-8030424

Shareholders

Major Shareholders

Name	Subscription Shares
China Steel Corporation	68,787,183
China Synthetic Rubber Corp.
11,759,096
Gaoduan Investment Co., Ltd (Liberal Translation)	474,220
CTCI Corporation	1,776,916

Shareholder Information:

1
Registered Name:	China Steel Corporation
Registered Address:	No.1, Chung Kang Road, Lin Hai Ind. Dist., Hsiao Kang, Kaohsiung 81233, Taiwan, R.O.C.
Date of Foundation:	1971-12-3
Registration Number:	30414175
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 170,000,000,000 (USD 5,627,000,000) (As of 2014.09, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 154,638,519,570 (USD 5,118,534,998
Legal Representatives:	Ruoqi Zou
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2014-7-3
2
Registered Name:	China Synthetic Rubber Corp.
Registered Address:	8th Fl., No.113, Section 2, Zhong Shan N. Road, Taipei
Date of Foundation:	1973-6-15
Registration Number:	04382114
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 5,500,000,000 (USD 182,050,000) (As of 2014.09, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 5,492,241,050 (USD 181,793,179)
Legal Representatives:	Chengyun Gu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2014-7-21
3
Registered Name:	Gaoduan Investment Co., Ltd (Liberal Translation)
Registered Address:	26F., No.88, Chenggong 2nd Rd., Qianzhen Dist., Kaohsiung City, Taiwan (R.O.C.)
Date of Foundation:	1997-5-21
Registration Number:	97159878
Registry:	Economic Development Board of Kaohsiung City Government
Registered Capital:	NTD 29,900,000 (USD 989,690) (As of 2014.09, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 29,900,000 (USD 989,690)
Legal Representatives:	Yingjuan Li
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2014-6-30
4
Registered Name:	CTCI Corporation
Registered Address:	No.89, Sec.6, Zhong Shan N. Road, Taipei 11155, Taiwan, R.O.C.
Date of Foundation:	1979-4-6
Registration Number:	20817282
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 9,000,000,000 (USD 297,900,000) (As of 2014.09, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 7,513,815,480 (USD 248,707,292)
Legal Representatives:	Junyan Yu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2014-8-27

Management Information

Core Management

Directors

1
Name		Lemin Zhong
Position		Board Chairman
2
Name	Ruoqi Zou
Position		Director
3
Name	Jianming Li
Position		Director/Manager
Date of Appointment		2014-4-1
4
Name	Guozhen Jianzhang
Position		Director
5
Name	Chengyun Gu
Position		Director
6
Name		Tianfu Zhao
Position		Director
7
Name	Yuanquan Hong
Position		Director
8
Name	Hezong Chen
Position		Director
9
Name	Junyan Yu
Position		Director
10
Name	Wenyuan Chen
Position		Supervisor
11
Name		Kaijie Jia
Position		Supervisor
12
Name	Wentai Yao
Position		Director

Personnel Structure

Total Employees

25F., No.88, Chenggong 2nd Rd., Qianzhen Dist., Kaohsiung City 80661, Taiwan (R.O.C.)

Operation Information

Offices & Factories

	Headquarters
Add	25F., No.88, Chenggong 2nd Rd., Qianzhen Dist., Kaohsiung City 80661, Taiwan (R.O.C.)

Production Information

Subject is engaged in manufacturing of chemical products and etc.

Subject has a factory in Taiwan for production.

It is introduced that subject has obtained ISO 9001: 2000, ISO14001 and OHSAS 18001 certifications.

Purchase Information

The registered activities of subject:

Business Code	Details
--	Manufacturing, processing, trading, importing and exporting of carbon-chemistry products and fine chemical products, west medical materials for tea series, niacin, amine, dye intermediate, condiment and its ramification, conductex, printing ink, other chemical derivative, metal and steel chemical series products, special construction materials, carbon material.
--	Trading, importing and exporting of chemical addition agent.
--	Construction, leak repairing and using of waterproof material, advising, engineering advising and pipeline corrosion of above related business.
CZ99990	Manufacturing of other miscellaneous industrial products (activated carbon)
C901990	Manufacturing of other metal mineral products (bauxite).
C801020	Manufacturing of petrochemical engineering raw materials.
F199990	Other wholesales (activated carbon and bauxite)
F107990	Wholesales of other chemical products (rubber and plastic processing with chemicals, furfuraldehyde, furfuryl alcohol)
C801010	Basic chemical industrial manufacturing
C802080	Manufacturing of environmental medicine.
C802120	Manufacturing of chemicals.
C802150	Manufacturing of dyes and pigment.
C803990	Manufacturing of other petroleum and coal products. (coal tar, dielectric phase asphalt and slushing oil)
F107020	Wholesales of dyes and pigment.
F107080	Wholesales of environmental medicine.
F107100	Wholesales of basic chemicals materials.
F107110	Wholesales of petrochemical materials.
F107170	Wholesales of industrial chemicals.
F112020	Wholesales of petroleum and coal products.
F112040	Wholesales of petroleum product.
F112990	Wholesales of other petroleum product and fuel. (coal tar, dielectric phase asphalt and slushing oil, base oil, white oil and lubricating grease)
F120010	Wholesales of fireproofing.
F401010	International trading business.
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

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

Sales Information

Subject is engaged in sale of chemical products and etc.

Subject’s sales regions include China, Australia, Japan, South Korea, Vietnam, Burma, Thailand, Malaysia, Philippines, Indonesia, Pakistan, Sir Lanka, India, Bangladesh, Chile, Iran, Germany, South Africa, etc.

Subject’s major customers are manufacturers of pigment, dyes, batteries, construction materials and etc.

Major products

	Products
1	Soft Pitch
2	Creosote Oil
3	Refined Naphthalene
4	Benzene
5	Toluene
6	Metallurgical Coke
7	Green Mesophase Power
8	Dye intermediate

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

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

Import

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

Sales

Domestic Markets

Product	Chemical products and etc.
Selling Terms	Cash, T/T and etc

Export

Product	Chemical products and etc.
Selling Terms	L/C, T/T and etc

Balance Sheet

Unit: NTD/000

	2013-12-31	2012-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	509,436	544,113
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	1,740,695	1,147,041
Current available-for-sale financial assets
Current available-for-sale financial assets, net	171,214	135,684
Current held-to-maturity financial assets
Current held-to-maturity financial assets, net	0	25,000
Current bond investment without active market
Current bond investment without active market, net	9,259	0
Notes receivable, net
Notes receivable, net	18,825	13,210
Accounts receivable, net
Accounts receivable, net	530,309	462,226
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	177,695	186,793
Other receivables
Other receivables, net	310,845	39,340
Current tax assets
Total current tax assets	0	40
Inventories
Total inventories	375,618	373,492
Other current assets
Other current financial assets	419,064	720,100
Other current assets, others	48,027	29,241
Total other current assets	467,091	749,341
Total current assets	4,310,987	3,676,280
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	317,062	203,908
Held-to-maturity non-current financial assets
Non-current held-to-maturity financial assets, net	102,514	80,441
Non-current bond investment without active market
Non-current bond investment without active market, net	134,651	156,493
Investments accounted for using equity method
Investments accounted for using equity method, net	1,341,972	1,287,339
Property, plant and equipment
Total property, plant and equipment	1,469,202	1,452,379
Investment property, net
Investment property, net	541,020	541,020
Deferred tax assets	42,629	48,794
Other non-current assets
Prepayments for business facilities	8,964	84,795
Guarantee deposits paid	1,281	640
Total other non-current assets	10,245	85,435
Total non-current assets	3,959,295	3,855,809
Total assets	8,270,282	7,532,089
Total assets (USD)	273,746,334	249,312,146
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	72,157	89,313
Short-term notes and bills payable
Total short-term notes and bills payable	0	0
Current financial liabilities at fair value through profit or loss
Total current financial liabilities at fair value through profit or loss	91	178
Accounts payable
Total accounts payable	25,299	23,917
Accounts payable to related parties
Total accounts payable to related parties	327,281	301,677
Other payables
Total other payables	322,157	288,177
Current tax liabilities	217,376	145,343
Other current liabilities
Total other current liabilities	29,693	25,517
Total current liabilities	994,054	874,122
Non-current liabilities
Deferred tax liabilities
Total deferred tax liabilities	680	1,918
Other non-current liabilities
Accrued pension liabilities	128,185	151,658
Total other non-current liabilities	128,185	151,658
Total non-current liabilities	128,865	153,576
Total liabilities	1,122,919	1,027,698
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	2,369,044	2,369,044
Total capital stock	2,369,044	2,369,044
Capital surplus
Total capital surplus	431,711	375,966
Retained earnings
Legal reserve	1,727,592	1,530,230
Special reserve	242,136	242,136
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	2,223,888	1,962,055
Total retained earnings	4,193,616	3,734,421
Other equity interest
Total other equity interest	158,815	42,304
Treasury shares	167,082	167,552
Total equity attributable to owners of parent	6,986,104	6,354,183
Non-controlling interests	161,259	150,208
Total equity	7,147,363	6,504,391
Total equity (USD)	236,577,715	215,295,342
Equivalent issue shares of advance receipts for ordinary share	0	0
Number of shares in entity held by entity and by its subsidiaries	6,751,537	6,770,537

(As of 2014.09, 1 NTD = 0.0331 USD)

Profit and Loss Account

Unit: NTD/000

	2013	2012
Operating revenue
Total operating revenue	8,819,953	8,315,358
Total operating revenue(USD)	291,940,444	275,238,350
Operating costs
Total operating costs	6,009,957	5,861,830
Gross profit (loss) from operations	2,809,996	2,453,528
Gross profit (loss) from operations	2,809,996	2,453,528
Operating expenses
Selling expenses
Total selling expenses	152,008	143,509
Administrative expenses
Total administrative expenses	156,367	127,875
Research and development expenses
Total research and development expenses	79,278	69,895
Total operating expenses	387,653	341,279
Net operating income (loss)	2,422,343	2,112,249
Non-operating income and expenses
Other income
Gains on doubtful debt recoveries	14,638	0
Other income, others	56,141	78,954
Total other income	70,779	78,954
Other gains and losses
Other gains and losses, net	24,254	14,855
Finance costs
Interest expense	2,624	2,333
Finance costs, net	2,624	2,333
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	80,682	79,642
Total non-operating income and expenses	173,091	171,118
Profit (loss) from continuing operations before tax	2,595,434	2,283,367
Tax expense (income)
Total tax expense (income)	374,452	313,770
Profit (loss) from continuing operations	2,220,982	1,969,597
Profit (loss)	2,220,982	1,969,597
Profit (loss) (USD)	73,514,504	65,193,661
Other comprehensive income
Exchange differences on translation	9,378	-15,396
Unrealised gains (losses) on valuation of available-for-sale financial assets	76,175	17,620
Actuarial gains (losses) on defined benefit plans	4,287	8,419
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	29,757	-6,988
Other comprehensive income	-729	-1,431
Other comprehensive income, net	118,868	2,224
Total comprehensive income	2,339,850	1,971,821
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	2,209,911	1,966,343
Profit (loss), attributable to non-controlling interests	11,071	3,254
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	2,328,799	1,968,834
Comprehensive income, attributable to non-controlling interests	11,051	2,987
Basic earnings per share
Basic earnings (loss) per share from continuing operations	9.6	8.54
Total basic earnings per share	9.6	8.54
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations	9.56	8.5
Total diluted earnings per share	9.56	8.5

(As of 2014.09, 1 NTD = 0.0331 USD)

Cash Flows

Unit: NTD/000

	2013	2012
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	2,595,434	2,283,367
Profit (loss) before tax	2,595,434	2,283,367
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	234,167	221,352
Provision (reversal of provision) for bad debt expense	-14,638	0
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	-40,099	-26,674
Interest expense	2,624	2,333
Interest income	-25,473	-21,534
Dividend income	-10,799	-18,437
Share of loss (profit) of associates and joint ventures accounted for using equity method	-89,671	-98,393
Loss (gain) on disposal of property, plan and equipment	1,214	1,102
Loss (gain) on disposal of investments	-1,373	-2,178
Impairment loss on non-financial assets	32,996	38,219
Total adjustments to reconcile profit (loss)	88,948	95,790
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	-27,884	-76,848
Decrease (increase) in notes receivable	-5,615	14,858
Decrease (increase) in accounts receivable	-51,923	29,531
Decrease (increase) in accounts receivable due from related parties	9,098	-43,602
Decrease (increase) in other receivable	2,331	3,439
Decrease (increase) in inventories	-35,122	28,918
Decrease (increase) in other current assets	-15,786	31,453
Total changes in operating assets	-124,901	-12,251
Changes in operating liabilities
Increase (decrease) in accounts payable	1,382	-2,310
Increase (decrease) in accounts payable to related parties	25,604	29,149
Increase (decrease) in other payable	37,190	-36,965
Increase (decrease) in other current liabilities	4,176	3,219
Increase (decrease) in accrued pension liabilities	-19,186	-11,449
Total changes in operating liabilities	49,166	-18,356
Total changes in operating assets and liabilities	-75,735	-30,607
Total adjustments	13,213	65,183
Cash inflow (outflow) generated from operations	2,608,647	2,348,550
Income taxes refund (paid)	-298,181	-410,189
Net cash flows from (used in) operating activities	2,310,466	1,938,361
Cash flows from (used in) investing activities
Acquisition of financial assets at fair value through profit or loss, designated as upon initial recognition	-3,650,499	-3,000,833
Proceeds from disposal of financial assets at fair value through profit or loss, designated as upon initial recognition	3,125,456	2,785,317
Acquisition of available-for-sale financial assets	-77,175	-14,425
Proceeds from disposal of available-for-sale financial assets	0	20,449
Proceeds from capital reduction of available-for-sale financial assets	5,049	4,988
Acquisition of bond investments without active market	-14,488	-27,346
Proceeds from disposal of bond investments without active market	29,446	0
Acquisition of held-to-maturity financial assets	-101,465	-81,551
Proceeds from disposal of held-to-maturity financial assets	131,698	59,314
Proceeds from disposal of investments accounted for using equity method	0	4,522
Acquisition of property, plant and equipment	-179,585	-177,696
Proceeds from disposal of property, plant and equipment	0	159
Increase in refundable deposits	-641	0
Increase in other receivables	-300,000	0
Decrease in other financial assets	301,036	176,200
Increase in other prepayments	-3,000	0
Interest received	26,254	20,122
Dividends received	77,810	92,897
Net cash flows from (used in) investing activities	-630,104	-137,883
Cash flows from (used in) financing activities
Increase in short-term loans	4,658,896	4,841,436
Decrease in short-term loans	-4,676,662	-4,887,472
Increase in short-term notes and bills payable	20,000	766,000
Decrease in short-term notes and bills payable	-20,000	-826,000
Cash dividends paid	-1,703,006	-1,841,120
Proceeds from sale of treasury shares	3,310	0
Interest paid	-2,607	-2,353
Net cash flows from (used in) financing activities	-1,720,069	-1,949,509
Effect of exchange rate changes on cash and cash equivalents	5,030	-8,400
Net increase (decrease) in cash and cash equivalents	-34,677	-157,431
Cash and cash equivalents at beginning of period	544,113	701,544
Cash and cash equivalents at end of period	509,436	544,113
Cash and cash equivalents reported in the statement of financial position	509,436	544,113

Note: The above financial information was after adopting IFRSs.

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.60.45
UK Pound	1	Rs.99.46
Euro	1	Rs.79.46

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.