MIRA INFORM REPORT

Report No. :	352084
Report Date :	02.12.2015

IDENTIFICATION DETAILS

Name :	CHIH LIEN INDUSTRIAL CO., LTD.
Registered Office :	No. 480, Chung Shing Rd., Xinwu Dist., Taoyuan City 327, (R.O.C.)
Country :	Taiwan
Financials (as on) :	31.12.2014
Date of Incorporation :	03.09.1973
Com. Reg. No.:	43633504
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Sale of Steel Products.
No. of Employees :	About 160 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 :	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 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Taiwan	A1	A1

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. 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. However, follow-on components of the ECFA, including a signed agreement on trade in services and negotiations on trade in goods and dispute resolution, have stalled. In early 2014, the government bowed to public demand and proposed a new law governing the oversight of cross-Strait agreements, before any additional deals with China are implemented; the legislature has yet to vote on such legislation, leaving the future of ECFA up in the air as President MA enters his final full year in office. MA has portrayed ECFA as Taiwan’s key to greater participation in East Asia’s free trade networks.

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 expected to account for nearly 20% of the island's total population by 2025.

The island runs a trade surplus, largely because of its surplus with China, and its foreign reserves are the world's fifth largest, behind those of China, Japan, Saudi Arabia, 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, the Taiwan Central Bank signed a memorandum of understanding (MOU) 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 has helped Taiwan develop into a local RMB hub.

Closer economic links with the mainland bring greater opportunities for Taiwan’s economy but also pose new challenges as the island becomes more economically dependent on China at a time when political differences remain unresolved. During 2014, the press paid increasing attention to domestic economic issues, while pushing aside the debates over trade liberalization that were a hallmark of MA’s tenure. The media focused on the divide between Taiwan’s “haves” and “have nots,” providing extensive coverage of public frustration with stagnant wages, skyrocketing housing prices, and the difficulty of finding decent entry-level jobs.

Source : CIA

Contact Points

Company Name:	Chih Lien Industrial Co., Ltd.
Supplied Name:	CHIH LIEN INDUSTRIAL CO., LTD
Trading Address:	No. 480, Chung Shing Rd., Xinwu Dist., Taoyuan City 327, Taiwan (R.O.C.)
Supplied Address:	NO.480, CHUNG SHING ROAD, SHIN WU DISTRICT, TAO-YUAN CITY, TAIWAN
Telephone Number:	+886-3-477-2797
Fax Number:	+886-3-487-0042
Email:	cl-sales@mail.chihlien.com.tw
Website:	www.chihlien.com.tw

Notes: The exact name and address are as above.

Company Identification Details

Registered Name:	Chih Lien Industrial Co., Ltd.
Registered Address:	No. 480, Chung Shing Rd., Xinwu Dist., Taoyuan City 327, Taiwan (R.O.C.)
Date of Foundation:	1973-9-3
Registration Number:	43633504
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 2,900,000,000 (USD 89,900,000) (As of 2015.12, 1 NTD = 0.0310 USD)
Paid-up Capital:	NTD 975,000,000 (USD 30,225,000)
Legal Representatives:	Chunxing Liu
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale steel products.
Staff:	About 160 Employees
Listed at Stock Exchange:	Yes; Stock Code: 2024
Date of Last Annual Return:	2015-10-19

History

Subject was incorporated on 1973-9-3 with registered number 43633504 as Joint Stock Company in Taiwan.

Subject listed on Taiwan Stock Exchange on 1995-12-30.

Corporate Structure

Factories

1
Name:	Xinwu 1^st Factory
Address:	No. 480, Chung Shing Rd., Xinwu Dist., Taoyuan City 327, Taiwan (R.O.C.)
Date of Foundation:	1998-2-27
Date of Registration:	1998-5-29
Factory Registration Number:	99624709
Factory Manager:	Chunxing Liu
Status:	In Production
Date of Last Annual Return:	2002-6-5
Major Products:	241 Steel
2
Name:	Xinwu 2^nd Factory
Address:	No. 480-1, Chung Shing Rd., Xinwu Dist., Taoyuan City 327, Taiwan (R.O.C.)
Date of Foundation:	1998-2-21
Date of Registration:	1999-3-4
Factory Registration Number:	99624708
Factory Manager:	Chunxing Liu
Status:	In Production
Date of Last Annual Return:	2002-6-5
Major Products:	241 Steel

Shareholders

Major Shareholders

Name	Subscription Shares
Da Sheng International Investment Co., Ltd. (Literal Translation)
9,960,000
Ren He International Investment Co., Ltd. (Literal Translation)	9,455,000
Yuling Guo	566,486
Wenxiong Cai	3,623
Peng Da International Investment Co., Ltd. (Literal Translation)	5,000,000

Shareholder Information:

1
Registered Name:	Peng Da International Investment Co., Ltd. (Literal Translation)
Registered Address:	1F, No. 31, Lane 192, Sec. 5, Luosifu Rd., Wenshan District, Taipei City, Taiwan
Date of Foundation:	2007-6-1
Registration Number:	28681463
Registry:	Taipei City Government
Registered Capital:	NTD 20,000,000 (USD 620,000) (As of 2015.12, 1 NTD = 0.0310 USD)
Legal Representatives:	Wenlin Duan
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2012-8-14
2
Registered Name:	Ren He International Investment Co., Ltd. (Literal Translation)
Registered Address:	4/F-8, No.103, Sec 1, Fuxing South Road, Da-an District, Taipei City, Taiwan
Date of Foundation:	1996-1-29
Registration Number:	96932516
Registry:	Taipei City Government
Registered Capital:	NTD 100,000,000 (USD 3,100,000) (As of 2015.12, 1 NTD = 0.0310 USD)
Paid-up Capital:	NTD 55,000,000 (USD 1,705,000)
Legal Representatives:	Tongqing Pan
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2015-1-8
3
Registered Name:	Da Sheng International Investment Co., Ltd. (Literal Translation)
Registered Address:	4/F-8, No.103, Sec 1, Fuxing South Road, Da-an District, Taipei City, Taiwan
Date of Foundation:	1996-4-17
Registration Number:	96955171
Registry:	Taipei City Government
Registered Capital:	NTD 100,000,000 (USD 3,100,000) (As of 2015.12, 1 NTD = 0.0310 USD)
Paid Up Capital:	NTD 55,000,000 (USD 1,705,000)
Legal Representatives:	Chunxing Liu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2015-1-12

Management Information

Core Management

Directors

1
Name		Chunxing Liu
Position		Board Chairman
2
Name	Zhenghua Li
Position		Director
3
Name	Chenwang Xie
Position		Director
4
Name	Xin-an Lin
Position		Director
5
Name	Yuling Guo
Position		Director
6
Name	Wenxiong Cai
Position		Independent Director
7
Name	Kunshu Chen
Position		Independent Director
8
Name	Mingfeng Li
Position		Supervisor
9
Name	Qingxiang Xie
Position		Supervisor

Personnel Structure

Total Employees

About 160 Employees

Operation Information

	Headquarters
Add	No. 480, Chung Shing Rd., Xinwu Dist., Taoyuan City 327, Taiwan (R.O.C.)

Production Information

Subject is engaged in manufacturing of steel products, etc.

Subject has factories (about 68,000 square meters) in Taoyuan City, Taiwan for production.

It is introduced that subject‘s monthly production capacity is about 12,700MT.

Purchase Information

The registered activities of subject:

Business Code	Details
--	Manufacturing, processing and sale of high carbon steel, medium carbon steel, low carbon steel, special steel and alloy steel
--	Manufacturing, processing and sale of high tension steel, PC steel strand, galvanized steel strand, wire rope, cable, fishing gear, steel wire
--	Manufacturing, processing and sale of black iron wire, spot welding steel wire gauze, wire gauze, galvanized iron wire, galvanized iron wire, stainless steel wire, steel nail, iron nails, sodium silicate
--	Old ship disintegration and scrap iron sale
--	Manufacturing, processing and sale of chemical fiber and synthetic resin
--	Manufacturing, processing and sale of nonferrous metal
--	Manufacturing, processing and sale of aeronautical materials and components
--	Manufacturing, processing and sale of furniture and spring bed
--	As a distributor for home and abroad companies’ products
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

Subject’s raw materials for production are mostly purchased in domestic market.

It is introduced that some production facilities are imported from Japan and Europe, etc.

Sales Information

Subject is engaged in sale of steel products, etc.

The major products of the subject are high carbon steel, low carbon steel, free cutting steel, alloy steel and so on.

It is introduced that subject’s products are applied to industrial machinery, precision parts, bicycle, motorcycle, automobile, tool, household, electronic, furniture and construction, 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	Raw materials, etc.
Payment Terms	Cash, T/T, etc.

Import

Products	Facilities, etc.
Payment Terms	T/T, etc.

Sales

Domestic Markets

Product	Steel products, etc.
Selling Terms	Cash, T/T, etc.

Export

Product	Steel products, etc.
Selling Terms	L/C, T/T, etc.

Balance Sheet

Unit: NTD/000

Consolidated	2014-12-31	2013-12-31
Assets
Current assets
Cash and cash equivalents
Cash on hand	55	50
Cash in banks	140,055	177,888
Total cash and cash equivalents	140,110	177,938
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	2,470	1,992
Current financial assets at cost
Current financial assets at cost, net	0	0
Notes receivable, net
Notes receivable	105,167	80,409
Notes receivable, net	105,167	80,409
Notes receivable due from related parties, net
Notes receivable due from related parties	3,596	16,938
Notes receivable due from related parties, net	3,596	16,938
Accounts receivable, net
Accounts receivable	213,385	177,782
Allowance for uncollectible accounts, accounts, installment, and lease payments receivable	136	721
Accounts receivable, net	213,249	177,061
Accounts receivable due from related parties, net
Accounts receivable due from related parties	561	16,605
Accounts receivable due from related parties, net	561	16,605
Other receivables
Other non-operating receivables, others	1,965	557
Other receivables, net	1,965	557
Other receivables due from related parties
Other receivables due from related parties, net	0	0
Inventories
Inventories, manufacturing business
Finished goods	127,648	152,902
Work in progress	17,336	20,026
Raw materials	263,461	212,336
Supplies	0	0
Materials and supplies in transit	11,816	64,354
Inventories, manufacturing business, net	420,261	449,618
Total inventories	420,261	449,618
Prepayments
Total prepayments	4,590	6,592
Non-current assets classified as held for sale, net
Non-current assets classified as held for sale, net	0	322,142
Other current assets
Other current financial assets	120,198	102,140
Other current assets, others	2,724	4,598
Total other current assets	122,922	106,738
Total current assets	1,014,891	1,356,590
Non-current assets
Non-current financial assets at fair value through profit or loss
Total non-current financial assets at fair value through profit or loss	0	0
Non-current financial assets at fair value through other comprehensive income
Total non-current financial assets at fair value through other comprehensive income	0	0
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	0	0
Held-to-maturity non-current financial assets
Non-current held-to-maturity financial assets, net	0	0
Non-current financial assets at amortized cost
Non-current financial assets at amortized cost, net	0	0
Non-current financial assets at cost
Non-current financial assets at cost	235	235
Non-current financial assets at cost, net	235	235
Non-current bond investment without active market
Non-current bond investment without active market, net	0	0
Investments accounted for using equity method
Investments accounted for using equity method, net	0	0
Property, plant and equipment
Land, net
Land, cost	672,106	672,106
Land, net	672,106	672,106
Buildings and structures, net
Buildings and structures, cost	368,544	366,506
Accumulated depreciation, buildings and structures	220,226	206,064
Buildings and structures, net	148,318	160,442
Machinery and equipment, net
Machinery and equipment, cost	408,480	350,820
Accumulated depreciation, machinery and equipment	114,683	77,532
Machinery and equipment, net	293,797	273,288
Pollution-prevention equipment, net
Pollution-prevention equipment, net	0	0
Transportation equipment, net
Transportation equipment, net	0	0
Office equipment, net
Office equipment, net	0	0
Leased assets, net
Leased assets, net	0	0
Other facilities, net
Other facilities, cost	111,254	111,383
Accumulated depreciation, other facilities	67,409	63,720
Other facilities, net	43,845	47,663
Unfinished construction and equipment under acceptance	5,503	30,931
Total property, plant and equipment	1,163,569	1,184,430
Intangible assets
Computer software, net
Computer software, net	0	0
Goodwill	0	116
Other intangible assets, net
Other intangible assets, net	0	0
Intangible assets under development, net
Intangible assets under development, net	0	0
Total intangible assets	0	116
Deferred tax assets	8,500	8,500
Other non-current assets
Prepayments for business facilities	15,819	0
Long-term notes and accounts receivable
Long-term accounts receivables	0	5,170
Long-term notes and accounts receivable, net	0	5,170
Other non-current assets, others
Total other non-current assets, others	3,958	4,319
Total other non-current assets	19,777	9,489
Total non-current assets	1,192,081	1,202,770
Total assets	2,206,972	2,559,360
Liabilities
Current liabilities
Short-term borrowings
Bank loan	220,323	184,353
Total short-term borrowings	220,323	184,353
Short-term notes and bills payable
Short-term notes and bills payable	29,952	29,937
Total short-term notes and bills payable	29,952	29,937
Notes payable
Notes payable	20,594	19,366
Total notes payable	20,594	19,366
Notes payable to related parties
Total notes payable to related parties	0	0
Accounts payable
Accounts payable	96,562	120,582
Total accounts payable	96,562	120,582
Accounts payable to related parties
Total accounts payable to related parties	0	0
Other payables
Other accrued expenses	52,527	45,129
Total other payables	52,527	45,129
Current provisions
Total current provisions	0	0
Liabilities related to non-current assets classified as held for sale	0	71,538
Other current liabilities
Advance receipts
Total advance receipts	0	0
Long-term liabilities, current portion
Long-term borrowings, current portion	149,810	75,250
Total long-term liabilities, current portion	149,810	75,250
Other current liabilities, others	4,028	190,013
Total other current liabilities	153,838	265,263
Total current liabilities	573,796	736,168
Non-current liabilities
Non-current financial liabilities at fair value through profit or loss
Total non-current financial liabilities at fair value through profit or loss	0	0
Long-term borrowings
Long-term bank loans	440,140	602,583
Total long-term borrowings	440,140	602,583
Non-current provisions
Total non-current provisions	0	0
Deferred tax liabilities
Deferred tax liabilities, income tax	876	506
Total deferred tax liabilities	876	506
Other non-current liabilities
Accrued pension liabilities	34,785	33,499
Total other non-current liabilities	34,785	33,499
Total non-current liabilities	475,801	636,588
Total liabilities	1,049,597	1,372,756
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	1,020,000	1,095,500
Total capital stock	1,020,000	1,095,500
Capital surplus
Capital surplus, treasury share transactions	0	0
Total capital surplus	0	0
Retained earnings
Special reserve	0	24,765
Unappropriated retained earnings (accumulated deficit)
Accumulated profit and loss	6,433	-77,439
Current profit and loss	130,942	60,669
Total unappropriated retained earnings (accumulated deficit)	137,375	-16,770
Total retained earnings	137,375	7,995
Other equity interest
Exchange differences on translation of foreign financial statements
Total exchange differences on translation of foreign financial statements	0	0
Equity related to non-current assets classified as held for sale
Equity related to non-current assets classified as held for sale, subsidiaries accounted for using equity method	0	5,979
Total equity related to non-current assets classified as held for sale	0	5,979
Other equity, others
Total other equity, others	0	0
Total other equity interest	0	5,979
Treasury shares	0	0
Total equity attributable to owners of parent	1,157,375	1,109,474
Equity attributable to former owner of business combination under common control	0	0
Non-controlling interests	0	77,130
Total equity	1,157,375	1,186,604
Number of share capital awaiting retirement	0	0
Equivalent issue shares of advance receipts for ordinary share	0	0
Number of shares in entity held by entity and by its subsidiaries	0	0

Profit and Loss Account

Unit: NTD/000

Consolidated	2014	2013
Operating revenue
Net sales revenue
Sales revenue
Total sales revenue	1,652,533	1,542,556
Net sales revenue	1,652,533	1,542,556
Service revenue
Processing fees revenue
Processing fees revenue	73,820	67,394
Processing fees revenue, net	73,820	67,394
Total service revenue	73,820	67,394
Total operating revenue	1,726,353	1,609,950
Operating costs
Cost of sales
Cost of sales	1,526,827	1,429,392
Total cost of sales	1,526,827	1,429,392
Investment costs (for investment business)
Investment losses
Total investment losses	0	0
Total investment costs (for investment business)	0	0
Total operating costs	1,526,827	1,429,392
Gross profit (loss) from operations	199,526	180,558
Gross profit (loss) from operations	199,526	180,558
Operating expenses
Selling expenses
Total selling expenses	66,233	63,552
Administrative expenses
Total administrative expenses	33,106	29,873
Total operating expenses	99,339	93,425
Net operating income (loss)	100,187	87,133
Non-operating income and expenses
Other income
Interest income
Total interest income	2,885	1,034
Fee income
Total fee income	0	0
Other income, others	3,252	1,320
Total other income	6,137	2,354
Other gains and losses
Foreign exchange gains	10,740	0
Gains on financial assets (liabilities) at fair value through profit or loss	386	-7,857
Reversal of impairment loss recognized in profit or loss
Reversal of impairment loss recognized in profit or loss, non-current asset held for sale	-1,020	12,501
Total reversal of impairment loss recognized in profit or loss	-1,020	12,501
Foreign exchange losses	0	465
Impairment loss
Total impairment loss	0	0
Other gains and losses, net	10,106	4,179
Gains (losses) arising from derecognition of financial assets measured at amortized cost
Gains (losses) arising from derecognition of financial assets measured at amortized cost	0	0
Gains (losses) on reclassification of financial assets
Gains (losses) on reclassification of financial assets	0	0
Finance costs
Finance costs, net	18,908	27,222
Total non-operating income and expenses	-2,665	-20,689
Profit (loss) from continuing operations before tax	97,522	66,444
Tax expense (income)
Total tax expense (income)	3,649	424
Profit (loss) from continuing operations	93,873	66,020
Profit (loss) from discontinued operations
Total profit (loss) from discontinued operations	39,088	-20,537
Profit (loss)	132,961	45,483
Other comprehensive income
Exchange differences on translation	-6,244	14,448
Actuarial gains (losses) on defined benefit plans	-4,170	8,699
Income tax related to components of other comprehensive income	0	3,301
Other comprehensive income, net	-10,414	19,846
Total comprehensive income	122,547	65,329
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	135,112	51,970
Profit (loss), attributable to former owner of business combination under common control	0	0
Profit (loss), attributable to non-controlling interests	-2,151	-6,487
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	126,637	67,329
Comprehensive income, attributable to non-controlling interests	-4,090	-2,000
Basic earnings per share
Basic earnings (loss) per share from continuing operations	0.88	0.60
Basic earnings (loss) per share from discontinued operations	0.38	-0.13
Total basic earnings per share	1.26	0.47

Cash Flows

Unit: NTD/000

Consolidated	2014	2013
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	97,522	66,444
Profit (loss) from discontinued operations before tax	-6,925	-20,537
Profit (loss) before tax	90,597	45,907
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	68,649	64,199
Amortization expense	561	707
Provision (reversal of provision) for bad debt expense	4,197	5,146
Interest expense	19,455	28,488
Interest income	-2,901	-1,082
Property, plant and equipment transferred to expenses	316	0
Other adjustments to reconcile profit (loss)	610	1,342
Total adjustments to reconcile profit (loss)	90,887	98,800
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	-478	-1,992
Decrease (increase) in notes receivable	-36,040	6,630
Decrease (increase) in notes receivable due from related parties	13,342	-1,186
Decrease (increase) in accounts receivable	-13,413	5,805
Decrease (increase) in accounts receivable due from related parties	10,184	-3,848
Decrease (increase) in other receivable	-1,126	-241
Decrease (increase) in inventories	-5,129	-59,301
Decrease (increase) in prepayments	2,261	1,702
Decrease (increase) in other current assets	2,387	-2,467
Total changes in operating assets	-28,012	-54,898
Changes in operating liabilities
Increase (decrease) in notes payable	1,228	-4,857
Increase (decrease) in accounts payable	55,814	60,315
Increase (decrease) in other payable	-12,684	14,798
Increase (decrease) in other current liabilities	8,416	4,013
Increase (decrease) in accrued pension liabilities	-2,884	-3,101
Total changes in operating liabilities	49,890	71,168
Total changes in operating assets and liabilities	21,878	16,270
Total adjustments	112,765	115,070
Cash inflow (outflow) generated from operations	203,362	160,977
Interest received	2,901	1,082
Interest paid	-19,770	-28,616
Income taxes refund (paid)	-5,298	-68
Net cash flows from (used in) operating activities	181,195	133,375
Cash flows from (used in) investing activities
Proceeds from disposal of subsidiaries	26,982	186,821
Acquisition of property, plant and equipment	-37,912	-60,218
Proceeds from disposal of property, plant and equipment	0	1,085
Increase in other financial assets	-9,496	-10,292
Increase in other non-current assets	-255	-519
Increase in prepayments for business facilities	-15,819	-4,839
Net cash flows from (used in) investing activities	-36,500	112,038
Cash flows from (used in) financing activities
Decrease in short-term loans	-14,488	-106,332
Decrease in short-term notes and bills payable	0	-70,000
Proceeds from long-term debt	137,340	270,000
Repayments of long-term debt	-225,223	-252,167
Payments to acquire treasury shares	-77,062	0
Net cash flows from (used in) financing activities	-179,433	-158,499
Effect of exchange rate changes on cash and cash equivalents	-3,090	7,939
Net increase (decrease) in cash and cash equivalents	-37,828	94,853
Cash and cash equivalents at beginning of period	177,938	111,922
Cash and cash equivalents at end of period	140,110	206,775
Cash and cash equivalents reported in the statement of financial position	140,110	177,938
Other items qualifying for cash and cash equivalents under the definition of IAS 7	0	28,837

Note: Subject didn’t submit its individual financial information; we obtained its consolidated financials as above for reference.

The above financial figures are based on the IFRSs Accounting System.

Bankers

Name	First Commercial Bank

Public Record

Mortgage

1
Case Type:	Chattel Mortgage
Registered Number:	109279
Debtor Name:	Chih Lien Industrial Co., Ltd.
Registry:	Economic Development Bureau of Taoyuan City Government
Name of Mortgagee:	Hua Nan Commercial Bank, Ltd. Guanyin Branch
Date of Registration:	2014-2-14
Amount of Secure Claims:	NTD 30,000,000
Type of Mortgage:	Machinery, equipment or tools
2
Case Type:	Chattel Mortgage
Registered Number:	107060
Debtor Name:	Chih Lien Industrial Co., Ltd.
Registry:	Economic Development Bureau of Taoyuan City Government
Name of Mortgagee:	First Commercial Bank, Ltd. Nanjing E. Rd. Branch
Date of Registration:	2012-12-24
Amount of Secure Claims:	NTD 72,326,000
Type of Mortgage:	Machinery, equipment or tools
3
Case Type:	Chattel Mortgage
Registered Number:	107059
Debtor Name:	Chih Lien Industrial Co., Ltd.
Registry:	Economic Development Bureau of Taoyuan City Government
Name of Mortgagee:	First Commercial Bank, Ltd. Nanjing E. Rd. Branch
Date of Registration:	2012-12-24
Amount of Secure Claims:	NTD 97,776,000
Type of Mortgage:	Machinery, equipment or tools
4
Case Type:	Chattel Mortgage
Registered Number:	107057
Debtor Name:	Chih Lien Industrial Co., Ltd.
Registry:	Economic Development Bureau of Taoyuan City Government
Name of Mortgagee:	First Commercial Bank, Ltd. Nanjing E. Rd. Branch
Date of Registration:	2012-12-24
Amount of Secure Claims:	NTD 28,437,000
Type of Mortgage:	Machinery, equipment or tools
5
Case Type:	Chattel Mortgage
Registered Number:	105452
Debtor Name:	Chih Lien Industrial Co., Ltd.
Registry:	Economic Development Bureau of Taoyuan City Government
Name of Mortgagee:	Hua Nan Commercial Bank, Ltd. Guanyin Branch
Date of Registration:	2012-2-20
Amount of Secure Claims:	NTD 25,200,000
Type of Mortgage:	Machinery, equipment or tools
6
Case Type:	Chattel Mortgage
Registered Number:	40397
Debtor Name:	Chih Lien Industrial Co., Ltd.
Registry:	Economic Development Bureau of Kaohsiung City Government
Name of Mortgagee:	Bank of Communications Co., Ltd.
Date of Registration:	1992-7-28
Amount of Secure Claims:	NTD 19,060,000
Type of Mortgage:	Machinery, equipment or tools
7
Case Type:	Chattel Mortgage
Registered Number:	050294
Debtor Name:	Chih Lien Industrial Co., Ltd.
Registry:	Economic Development Bureau of Kaohsiung City Government
Name of Mortgagee:	Bank of Communications Co., Ltd.
Date of Registration:	1996-2-16
Amount of Secure Claims:	NTD 51,020,000
Type of Mortgage:	Machinery, equipment or tools
8
Case Type:	Chattel Mortgage
Registered Number:	047398
Debtor Name:	Chih Lien Industrial Co., Ltd.
Registry:	Economic Development Bureau of Kaohsiung City Government
Name of Mortgagee:	Bank of Communications Co., Ltd.
Date of Registration:	1995-3-17
Amount of Secure Claims:	NTD 161,234,000
Type of Mortgage:	Machinery, equipment or tools
9
Case Type:	Chattel Mortgage
Registered Number:	2841
Debtor Name:	Chih Lien Industrial Co., Ltd.
Registry:	Department of Economic Development, Taipei City Government
Name of Mortgagee:	Bank of Communications Co., Ltd.
Date of Registration:	2015-4-10
Amount of Secure Claims:	NTD 2,437,000
Type of Mortgage:	Machinery, equipment or tools

Lawsuit

Up to date of reporting, no existing or latent litigation of the subject has been found.

Special Note

Interview Details

Name	Mr. Song
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.52
UK Pound	1	Rs.100.44
Euro	1	Rs.70.44
TWD	1	Rs.2.04

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	KAS
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%)

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.