MIRA INFORM REPORT

Report No. :	352686
Report Date :	05.12.2015

IDENTIFICATION DETAILS

Name :	GLOBE INDUSTRIES CORPORATION
Registered Office :	7F., No.61, Sec.3, Nanking East Rd., Jhongshan District, Taipei City 104, (R.O.C.)
Country :	Taiwan
Financials (as on) :	31.12.2014
Date of Incorporation :	08.12.1964
Com. Reg. No.:	07147916
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Sales of Tapes.
No. of Employees :	About 300 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 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:	Globe Industries Corporation
Supplied Name:	GLOBE INDUSTRIES CORPORATION
Trading Address:	7F., No.61, Sec.3, Nanking East Rd., Jhongshan District, Taipei City 104, Taiwan (R.O.C.)
Supplied Address:	7 TH FLOOR, NO. 61 , SECTION 3 , NANKING EAST ROAD TAIPEI , 104 TAIWAN
Telephone Number:	+886-2-2506-6666/2506-5555
Fax Number:	+886-2-2507-9988

Notes: The exact name and address are as above.

Company Identification Details

Registered Name:	Globe Industries Corporation
Registered Address:	7F., No.61, Sec.3, Nanking East Rd., Jhongshan District, Taipei City 104, Taiwan (R.O.C.)
Date of Foundation:	1964-12-08
Registration Number:	07147916
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 800,000,000 (USD 24,800,000) (As of 2015.12, 1 NTD = 0.031 USD)
Paid-up Capital:	NTD 751,218,820 (USD 23,287,783.42)
Legal Representatives:	Dezhao Zhang
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sales of tapes.
Staff:	About 300 Employees (Taiwan)
Listed at Stock Exchange:	Yes; Stock Symbol: 1324
Date of Last Annual Return:	2015-08-03

History

Subject was incorporated on 1964-12-08 with registered number 07147916 as Joint Stock Company in Taiwan.

Subject listed on Taiwan Stock Exchange on 2000-09-11.

Corporate Structure

Factories

Name:	The 1^st Youshi Factory
Address:	No.8, Youyi Rd., Gaoshan Li, Yangmei Dist., Taoyuan City, Taiwan
Date of Foundation:	1969-01-01
Date of Registration:	1980-02-20
Factory Registration Number:	99623356
Factory Manager:	Dezhao Zhang
Status:	In Production
Date of Last Annual Return:	2015-08-14
Major Products:	220 Plastic-rubber products 199 Other chemical products 293 General machinery equipment 251 Metal hand tools and moulds
2
Name:	The 2^nd Youshi Factory
Address:	No.8, Youyi Rd., Gaoshan Li, Yangmei Dist., Taoyuan City, Taiwan
Date of Foundation:	1987-03-27
Date of Registration:	1989-06-16
Factory Registration Number:	99623338
Factory Manager:	Dezhao Zhang
Status:	In Production
Date of Last Annual Return:	2015-08-14
Major Products:	220 Plastic-rubber products

Sales Offices

1
Name:	Taoyuan Office
Tel:	+886-3496-1939
Fax:	+886-3-196-1987
2
Name:	Hsinchu Office
Tel:	+886-3-496-1169
Fax:	+886-3-496-1880
3
Name:	Taichung Office
Tel:	+886-4-2566-7552
Fax:	+886-4-2556-7502
4
Name:	Kaohsiung Office
Tel:	+886-7-628-5795~8
Fax:	+886-7-628-5782

Related Company

Name:	Globe Adhesive Technology (Zhuhai) Co., Ltd.
Address:	West Side Zhuhai Avenue, Fine Chemical Zone, Gaolan Port Economic Zone, Zhuhai, Guangdong, P.R. China
Tel:	+86-0756-398-5398
Fax:	+86-0765-771-3388

Shareholders

Major Shareholders

Name	Subscription Shares
Dezhao Zhang
5,084,849
Jindun Investment Co., Ltd. (Literal Translation)	705,000
Xinchang Investment Co., Ltd. (Literal Translation)	523,000
Feicheng Ye	808,077
Deming Zhang	5,883,006
Ruian Investment Co., Ltd. (Literal Translation)	678,500

Management Information

Core Management

Directors

1
Name		Dezhao Zhang
Position		Chairman of the Board
2
Name	Jindun Investment Co., Ltd. (Literal Translation)
Position		Vice Chairman of the Board
3
Name	Xinchang Investment Co., Ltd. (Literal Translation)
Position		Director
4
Name	Wenzhen Lai
Position		Independent Director
5
Name	Zhengzhong Guan
Position		Independent Director
6
Name	Feicheng Ye
Position		Supervisor
7
Name	Deming Zhang
Position		Supervisor
8
Name	Ruian Investment Co., Ltd. (Literal Translation)
Position		Supervisor
9
Name	Jiansheng Qiu
Position		Manager
Date of Appointment		2015-07-01

Personnel Structure

Total Employees

About 300 Employees (Taiwan)

Operation Information

Offices & Factories

	Headquarters
Add	7F., No.61, Sec.3, Nanking East Rd., Jhongshan District, Taipei City 104, Taiwan (R.O.C.)

Production Information

Subject is engaged in manufacturing of tapes, etc.

Subject has factories in Taiwan for production.

Subject obtained the certification of ISO 9001:2008, ISO 14067CD, ISO 14064-1 and ISO 50001.

Purchase Information

The registered activities of subject:

Business Code	Details
C801100	Synthetic resin and plastic manufacturing
C805010	Plastic leather, cloth, plate, tubes manufacturing
C805070	Reinforced plastic products manufacturing
C805990	Other plastic products manufacturing
C302010	Weaving
C399990	Other textile and products manufacturing
C601020	Paper manufacturing
C601030	Paper container manufacturing
C601040	Converted paper manufacturing
C701010	Printing
C801010	Basic chemical industry
C801990	Other chemical materials manufacturing
C802160	Sticky tape manufacturing
CB01010	Mechanical equipment manufacturing
E604010	Machinery installation
CC01030	Appliances and audio-visual electronic products manufacturing
CC01070	Mechanical equipment with wireless communications manufacturing
CC01990	Other electrical and electronic machinery equipment
F401010	International trade
ZZ99999	Besides licensed business, all other business items those are not banned or restricted

The raw materials for production are mostly purchased in Taiwan.

Sales Information

Subject is engaged in sales of tape, etc.

The major products are avoid knife cloth tape, package tape, piping tape, protecting tape, masking tape, acrylic foam tape, laminating adhesive tape and stationery tape, etc.

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

The general delivery lead time of subject is about 30 days.

Subject’s major customers are manufacturers of stationery, electronic products and packaging products.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

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

Import

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

Sales

Domestic Markets

Product	Tapes, etc.
Selling Terms	T/T, Cash, etc.

Export

Product	Tapes, 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	671	577
Cash in banks	322,012	255,278
Total cash and cash equivalents	322,683	255,855
Current financial assets at fair value through profit or loss
Current financial assets at fair value through profit or loss, designated as upon initial recognition	149,684	214,639
Total current financial assets at fair value through profit or loss	149,684	214,639
Notes receivable, net
Notes receivable	26,897	36,740
Notes receivable, net	26,897	36,740
Accounts receivable, net
Accounts receivable	183,141	198,290
Allowance for uncollectible accounts, accounts, installment, and lease payments receivable	7,567	8,218
Accounts receivable, net	175,574	190,072
Accounts receivable due from related parties, net
Accounts receivable due from related parties	0	8,611
Accounts receivable due from related parties, net	0	8,611
Other receivables
Other receivables, net	3,194	4,281
Inventories
Inventories, manufacturing business
Finished goods	54,746	46,393
Work in progress	44,150	58,017
Raw materials	110,317	112,342
Supplies	5,563	5,545
Allowance for inventory valuation losses	15,108	17,277
Inventories, manufacturing business, net	199,668	205,020
Total inventories	199,668	205,020
Prepayments
Total prepayments	19,619	31,713
Other current assets
Total other current assets	1,033	9,662
Total current assets	898,352	956,593
Non-current assets
Non-current bond investment without active market
Non-current bond investment without active market	24,624	24,806
Non-current bond investment without active market, net	24,624	24,806
Property, plant and equipment
Land, net
Land, cost	56,074	56,074
Land, net	56,074	56,074
Buildings and structures, net
Buildings and structures, cost	392,296	384,802
Accumulated depreciation, buildings and structures	174,757	157,809
Buildings and structures, net	217,539	226,993
Machinery and equipment, net
Machinery and equipment, cost	550,959	549,175
Accumulated depreciation, machinery and equipment	481,923	464,160
Machinery and equipment, net	69,036	85,015
Transportation equipment, net
Transportation equipment, cost	28,467	27,581
Accumulated depreciation, transportation equipment	23,761	23,504
Transportation equipment, net	4,706	4,077
Office equipment, net
Office equipment, cost	8,798	8,519
Accumulated depreciation, office equipment	8,409	8,139
Office equipment, net	389	380
Other facilities, net
Other facilities, cost	45,248	45,184
Accumulated depreciation, other facilities	40,687	40,865
Other facilities, net	4,561	4,319
Unfinished construction and equipment under acceptance	30,829	7,365
Total property, plant and equipment	383,134	384,223
Intangible assets
Total intangible assets	370	622
Deferred tax assets	9,935	6,913
Other non-current assets
Total other non-current assets	713	583
Total non-current assets	418,776	417,147
Total assets	1,317,128	1,373,740
Liabilities
Current liabilities
Current financial liabilities at fair value through profit or loss
Total current financial liabilities at fair value through profit or loss	44	0
Notes payable
Total notes payable	121,629	131,484
Accounts payable
Total accounts payable	74,746	85,371
Other payables
Total other payables	57,775	48,979
Current tax liabilities	6,524	7,158
Other current liabilities
Total other current liabilities	9,058	13,434
Total current liabilities	269,776	286,426
Non-current liabilities
Other non-current liabilities
Accrued pension liabilities	87,076	67,886
Guarantee deposits received	450	630
Other non-current liabilities, others	172	0
Total other non-current liabilities	87,698	68,516
Total non-current liabilities	87,698	68,516
Total liabilities	357,474	354,942
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	751,219	751,219
Total capital stock	751,219	751,219
Capital surplus
Total capital surplus	0	0
Retained earnings
Legal reserve	135,992	131,642
Special reserve	18,915	18,915
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	33,644	107,129
Total retained earnings	188,551	257,686
Other equity interest
Total other equity interest	19,884	9,893
Treasury shares	0	0
Total equity attributable to owners of parent	959,654	1,018,798
Non-controlling interests	0	0
Total equity	959,654	1,018,798

Profit and Loss Account

Unit: NTD/000

Consolidated	2014	2013
Operating revenue
Net sales revenue
Sales revenue
Sales revenue	1,451,177	1,492,709
Total sales revenue	1,451,177	1,492,709
Sales returns	910	1,422
Sales discounts and allowances	2,870	2,986
Net sales revenue	1,447,397	1,488,301
Total operating revenue	1,447,397	1,488,301
Operating costs
Total operating costs	1,213,812	1,248,456
Gross profit (loss) from operations	233,585	239,845
Gross profit (loss) from operations	233,585	239,845
Operating expenses
Selling expenses
Total selling expenses	70,946	73,436
Administrative expenses
Total administrative expenses	99,566	93,907
Research and development expenses
Total research and development expenses	24,403	23,625
Total operating expenses	194,915	190,968
Net operating income (loss)	38,670	48,877
Non-operating income and expenses
Other income
Interest income
Interest income from bank deposits	4,038	3,363
Total interest income	4,038	3,363
Other income, others	3,651	550
Total other income	7,689	3,913
Other gains and losses
Foreign exchange gains	5,833	604
Gains on financial assets (liabilities) at fair value through profit or loss	987	1,225
Miscellaneous disbursements	708	383
Losses on disposals of property, plant and equipment	385	3
Other gains and losses, net	5,727	1,443
Finance costs
Finance costs, net	39	101
Total non-operating income and expenses	13,377	5,255
Profit (loss) from continuing operations before tax	52,047	54,132
Tax expense (income)
Total tax expense (income)	8,994	10,628
Profit (loss) from continuing operations	43,053	43,504
Profit (loss)	43,053	43,504
Other comprehensive income
Exchange differences on translation	9,991	19,773
Actuarial gains (losses) on defined benefit plans	-17,506	2,915
Other comprehensive income	2,976	0
Other comprehensive income, net	-4,539	22,688
Total comprehensive income	38,514	66,192
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	43,053	43,504
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	38,514	66,192
Basic earnings per share
Basic earnings (loss) per share from continuing operations	0.57	0.58
Total basic earnings per share	0.57	0.58

Cash Flows

Unit: NTD/000

Consolidated	2014	2013
Operating revenue
Net sales revenue
Sales revenue
Sales revenue	1,451,177	1,492,709
Total sales revenue	1,451,177	1,492,709
Sales returns	910	1,422
Sales discounts and allowances	2,870	2,986
Net sales revenue	1,447,397	1,488,301
Total operating revenue	1,447,397	1,488,301
Operating costs
Total operating costs	1,213,812	1,248,456
Gross profit (loss) from operations	233,585	239,845
Gross profit (loss) from operations	233,585	239,845
Operating expenses
Selling expenses
Total selling expenses	70,946	73,436
Administrative expenses
Total administrative expenses	99,566	93,907
Research and development expenses
Total research and development expenses	24,403	23,625
Total operating expenses	194,915	190,968
Net operating income (loss)	38,670	48,877
Non-operating income and expenses
Other income
Interest income
Interest income from bank deposits	4,038	3,363
Total interest income	4,038	3,363
Other income, others	3,651	550
Total other income	7,689	3,913
Other gains and losses
Foreign exchange gains	5,833	604
Gains on financial assets (liabilities) at fair value through profit or loss	987	1,225
Miscellaneous disbursements	708	383
Losses on disposals of property, plant and equipment	385	3
Other gains and losses, net	5,727	1,443
Finance costs
Finance costs, net	39	101
Total non-operating income and expenses	13,377	5,255
Profit (loss) from continuing operations before tax	52,047	54,132
Tax expense (income)
Total tax expense (income)	8,994	10,628
Profit (loss) from continuing operations	43,053	43,504
Profit (loss)	43,053	43,504
Other comprehensive income
Exchange differences on translation	9,991	19,773
Actuarial gains (losses) on defined benefit plans	-17,506	2,915
Other comprehensive income	2,976	0
Other comprehensive income, net	-4,539	22,688
Total comprehensive income	38,514	66,192
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	43,053	43,504
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	38,514	66,192
Basic earnings per share
Basic earnings (loss) per share from continuing operations	0.57	0.58
Total basic earnings per share	0.57	0.58

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

Subject declined to disclose its bank details; from other source we could not obtain the relevant information, either.

Public Record

Mortgage

No chattel mortgage record of subject has been found within the recent 3 months.

Lawsuit

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

Special Note

Interview Details

Name	Ms. Lin
Department	Sales Department
E-mail	melody@globetape.com.tw

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.84
UK Pound	1	Rs.101.04
Euro	1	Rs.73.05
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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.