MIRA INFORM REPORT

Report No. :	354729
Report Date :	18.12.2015

IDENTIFICATION DETAILS

Name :	CHINA STEEL CHEMICAL CORPORATION
Registered Office :	25F., No.88, Chenggong 2nd Rd., Qianzhen Dist., Kaohsiung City 80661, (R.O.C.)
Country :	Taiwan
Financials (as on) :	31.12.2014
Date of Incorporation :	03.02.1989
Com. Reg. No.:	23221384
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Sales of Chemicals.
No. of Employees :	About 200 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:	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:	25F, 88 CHENGONG 2ND ROAD, QIANZHEN, KAOHSIUNG 80661
Telephone Number:	+886-7-338-3515
Fax Number:	+886-7-535-4706
E-mail:	cscc@e-cscc.com.tw

Notes: The exact name and 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:	1989-02-03
Registration Number:	23221384
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 3,000,000,000 (USD 93,000,000) (As of 2015.12, 1 NTD = 0.031 USD)
Paid-up Capital:	NTD 2,369,044,800 (USD 73,440,388.8)
Legal Representatives:	Lemin Zhong
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sales of chemicals, etc.
Staff:	About 200 Employees
Listed at Stock Exchange:	Yes; Stock Symbol: 1723
Date of Last Annual Return:	2015-10-21

History

Subject was incorporated on 1989-02-03 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:	1971-12-03
Registration Number:	30414175
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 170,000,000,000 (USD 5,270,000,000) (As of 2015.12, 1 NTD = 0.031 USD)
Paid-up Capital:	NTD 157,731,289,960 (USD 4,889,669,988.76)
Legal Representatives:	Zhiyu Song
Legal Form:	Joint Stock Company
Listed at Stock Exchange:	Yes Stock Symbol: 2002
Date of Last Annual Return:	2015-10-19
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, No.42-1, Zhonglin Rd., Fengsen Li, Xiaogang Dist., Kaohsiung City, Taiwan
Date of Foundation:	1990-12-04
Date of Registration:	1992-03-17
Factory Registration Number:	64004731
Factory Manager:	Lemin Zhong
Status:	In Production
Date of Last Annual Return:	2014-09-22
Major Products:	192 Coating, dyes and pigments 170 Petroleum and coal products 199 Other chemicals

Offices

Name	Taipei Office
Address	Flat A, 28F., No.7, Sec. 5, Xinyi Rd., Xinyi Dist., Taipei City, Taiwan (R.O.C.)
Tel	+886-2-8101-0523
Fax	+886-7-803-0424

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

Shareholders’ Information:

1
Registered Name:	CTCI Corporation
Registered Address:	No.89, Sec.6, Zhong Shan N. Road, Shilin Dist., Taipei City, Taiwan, R.O.C.
Date of Foundation:	1979-04-06
Registration Number:	20817282
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 9,000,000,000
Paid-up Capital:	NTD 7,605,088,480
Legal Representatives:	Junyan Yu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2015-12-01
2
Registered Name:	China Synthetic Rubber Corp.
Registered Address:	8/F, No.113, Section 2, Zhong Shan N. Road, Taipei
Date of Foundation:	1973-06-15
Registration Number:	04382114
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 10,000,000,000
Paid-up Capital:	NTD 5,986,542,740
Legal Representatives:	Chengyun Gu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2015-09-14
3
Registered Name:	Gaoduan Investment Co., Ltd (Liberal Translation)
Registered Address:	26/F, No.88, Chenggong 2nd Rd., Qianzhen Dist., Kaohsiung City, Taiwan (R.O.C.)
Date of Foundation:	1997-05-21
Registration Number:	97159878
Registry:	Economic Development Board of Kaohsiung City Government
Registered Capital:	NTD 29,900,000
Paid-up Capital:	NTD 29,900,000
Legal Representatives:	Yingjuan Li
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2015-12-07
4
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:	1971-12-03
Registration Number:	30414175
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 170,000,000,000
Paid-up Capital:	NTD 157,731,289,960
Legal Representatives:	Zhiyu Song
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2015-10-19

Management Information

Core Management

Directors

1
Name		Lemin Zhong
Position		Chairman of the Board
2
Name	Zhiyu Song
Position		Director
3
Name	Jianming Li
Position		Director & Manager
Date of Appointment		2014-04-01
4
Name	Wentai Yao
Position		Director
5
Name	Youmei Zhao
Position		Director
6
Name		Chengyun Gu
Position		Director
7
Name	Tianfu Zhao
Position		Director
8
Name	Yuanquan Hong
Position		Director
9
Name	Hezong Chen
Position		Director
10
Name	Junyan Yu
Position		Supervisor
11
Name		Wenyuan Chen
Position		Supervisor
12
Name	Kaijie Jia
Position		Supervisor

Personnel Structure

Total Employees

About 200 Employees

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 chemicals, etc.

Subject has a factory in Taiwan for production.

Subject obtained the certification of ISO 9001: 2000, ISO 14001 and OHSAS 18001.

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.

The raw materials for production are purchased from both home and abroad.

Sales Information

Subject is engaged in sales of chemicals, etc.

The products of subject are mainly applied for textile industry and construction industry, etc.

Subject’s sales regions include domestic market, Southeast Asia, America and Europe, etc.

Subject’s major customers are manufacturers of construction materials, 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, etc.
Payment Terms	T/T, Cash, etc.

Import

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

Sales

Domestic Markets

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

Export

Product	Chemicals, 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
Total cash and cash equivalents	1,097,928	509,436
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	1,346,604	1,740,695
Current available-for-sale financial assets
Current available-for-sale financial assets, net	220,684	171,214
Current bond investment without active market
Current bond investment without active market, net	0	9,259
Notes receivable, net
Notes receivable, net	7,054	18,825
Accounts receivable, net
Accounts receivable, net	409,411	530,309
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	137,006	177,695
Other receivables
Other receivables, net	386,196	310,845
Inventories
Total inventories	446,627	375,618
Non-current assets classified as held for sale, net
Non-current assets classified as held for sale, net	32,058	0
Other current assets
Other current financial assets	233,300	419,064
Other current assets, others	69,362	48,027
Total other current assets	302,662	467,091
Total current assets	4,386,230	4,310,987
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	525,241	317,062
Held-to-maturity non-current financial assets
Non-current held-to-maturity financial assets, net	108,860	102,514
Non-current bond investment without active market
Non-current bond investment without active market, net	160,597	134,651
Investments accounted for using equity method
Investments accounted for using equity method, net	1,380,634	1,341,972
Property, plant and equipment
Total property, plant and equipment	1,431,399	1,469,202
Investment property, net
Investment property, net	552,988	541,020
Deferred tax assets	42,644	42,629
Other non-current assets
Prepayments for business facilities	24,409	8,964
Guarantee deposits paid	2,467	1,281
Long-term prepaid rents	33,454	0
Other non-current assets, others
Total other non-current assets, others	36,776	0
Total other non-current assets	97,106	10,245
Total non-current assets	4,299,469	3,959,295
Total assets	8,685,699	8,270,282
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	100,441	72,157
Current financial liabilities at fair value through profit or loss
Total current financial liabilities at fair value through profit or loss	0	91
Accounts payable
Total accounts payable	24,524	25,299
Accounts payable to related parties
Total accounts payable to related parties	256,098	327,281
Other payables
Total other payables	356,036	322,157
Current tax liabilities	187,738	217,376
Other current liabilities
Total other current liabilities	30,011	29,693
Total current liabilities	954,848	994,054
Non-current liabilities
Deferred tax liabilities
Total deferred tax liabilities	1,663	680
Other non-current liabilities
Accrued pension liabilities	133,056	128,185
Total other non-current liabilities	133,056	128,185
Total non-current liabilities	134,719	128,865
Total liabilities	1,089,567	1,122,919
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	515,023	431,711
Retained earnings
Legal reserve	1,948,583	1,727,592
Special reserve	242,136	242,136
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	2,215,495	2,223,888
Total retained earnings	4,406,214	4,193,616
Other equity interest
Total other equity interest	317,045	158,815
Treasury shares	162,034	167,082
Total equity attributable to owners of parent	7,445,292	6,986,104
Non-controlling interests	150,840	161,259
Total equity	7,596,132	7,147,363
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	6,547,537	6,751,537

Profit and Loss Account

Unit: NTD/000

Consolidated	2014	2013
Operating revenue
Total operating revenue	8,904,302	8,819,953
Operating costs
Total operating costs	6,077,761	6,009,957
Gross profit (loss) from operations	2,826,541	2,809,996
Gross profit (loss) from operations	2,826,541	2,809,996
Operating expenses
Selling expenses
Total selling expenses	153,236	152,008
Administrative expenses
Total administrative expenses	176,489	156,367
Research and development expenses
Total research and development expenses	115,861	79,278
Total operating expenses	445,586	387,653
Net operating income (loss)	2,380,955	2,422,343
Non-operating income and expenses
Other income
Gains on doubtful debt recoveries	0	14,638
Other income, others	49,759	56,141
Total other income	49,759	70,779
Other gains and losses
Other gains and losses, net	40,708	24,254
Finance costs
Interest expense	2,797	2,624
Finance costs, net	2,797	2,624
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	99,222	80,682
Total non-operating income and expenses	186,892	173,091
Profit (loss) from continuing operations before tax	2,567,847	2,595,434
Tax expense (income)
Total tax expense (income)	379,273	374,452
Profit (loss) from continuing operations	2,188,574	2,220,982
Profit (loss)	2,188,574	2,220,982
Other comprehensive income
Exchange differences on translation	23,173	9,378
Unrealised gains (losses) on valuation of available-for-sale financial assets	138,948	76,175
Actuarial gains (losses) on defined benefit plans	-9,867	4,287
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	-3,935	29,757
Other comprehensive income	1,677	-729
Other comprehensive income, net	149,996	118,868
Total comprehensive income	2,338,570	2,339,850
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	2,187,189	2,209,911
Profit (loss), attributable to non-controlling interests	1,385	11,071
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	2,337,229	2,328,799
Comprehensive income, attributable to non-controlling interests	1,341	11,051
Basic earnings per share
Basic earnings (loss) per share from continuing operations	9.50	9.60
Total basic earnings per share	9.50	9.60
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations	9.46	9.56
Total diluted earnings per share	9.46	9.56

Cash Flows

Unit: NTD/000

Consolidated	2014	2013
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	2,567,847	2,595,434
Profit (loss) before tax	2,567,847	2,595,434
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	282,012	234,167
Amortization expense	4,241	0
Provision (reversal of provision) for bad debt expense	0	-14,638
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	-31,994	-40,099
Interest expense	2,797	2,624
Interest income	-17,898	-25,473
Dividend income	-25,268	-10,799
Share of loss (profit) of associates and joint ventures accounted for using equity method	-111,109	-89,671
Loss (gain) on disposal of property, plan and equipment	1,394	1,214
Loss (gain) on disposal of investments	-34,305	-1,373
Impairment loss on non-financial assets	19,104	32,996
Total adjustments to reconcile profit (loss)	88,974	88,948
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	-84,779	-27,884
Decrease (increase) in notes receivable	11,771	-5,615
Decrease (increase) in accounts receivable	124,908	-51,923
Decrease (increase) in accounts receivable due from related parties	40,689	9,098
Decrease (increase) in other receivable	-66,059	2,331
Decrease (increase) in inventories	-89,525	-35,122
Decrease (increase) in other current assets	-21,822	-15,786
Total changes in operating assets	-84,817	-124,901
Changes in operating liabilities
Increase (decrease) in accounts payable	-775	1,382
Increase (decrease) in accounts payable to related parties	-71,183	25,604
Increase (decrease) in other payable	31,373	37,190
Increase (decrease) in other current liabilities	318	4,176
Increase (decrease) in accrued pension liabilities	-4,996	-19,186
Total changes in operating liabilities	-45,263	49,166
Total changes in operating assets and liabilities	-130,080	-75,735
Total adjustments	-41,106	13,213
Cash inflow (outflow) generated from operations	2,526,741	2,608,647
Income taxes refund (paid)	-406,266	-298,181
Net cash flows from (used in) operating activities	2,120,475	2,310,466
Cash flows from (used in) investing activities
Acquisition of financial assets at fair value through profit or loss, designated as upon initial recognition	-4,162,095	-3,650,499
Proceeds from disposal of financial assets at fair value through profit or loss, designated as upon initial recognition	4,677,239	3,125,456
Acquisition of available-for-sale financial assets	-120,200	-77,175
Proceeds from disposal of available-for-sale financial assets	65,310	0
Proceeds from capital reduction of available-for-sale financial assets	1,499	5,049
Acquisition of bond investments without active market	-39,155	-14,488
Proceeds from disposal of bond investments without active market	24,861	29,446
Acquisition of held-to-maturity financial assets	0	-101,465
Proceeds from disposal of held-to-maturity financial assets	0	131,698
Acquisition of property, plant and equipment	-305,011	-179,585
Proceeds from disposal of property, plant and equipment	3,208	0
Increase in refundable deposits	-1,186	-641
Increase in other receivables	-9,942	-300,000
Decrease in other financial assets	185,764	301,036
Increase in other non-current assets	-37,009	0
Increase in other prepayments	-38,221	-3,000
Decrease in other prepayments	3,000	0
Interest received	18,548	26,254
Dividends received	92,080	77,810
Net cash flows from (used in) investing activities	358,690	-630,104
Cash flows from (used in) financing activities
Increase in short-term loans	4,996,585	4,658,896
Decrease in short-term loans	-4,968,301	-4,676,662
Increase in short-term notes and bills payable	195,100	20,000
Decrease in short-term notes and bills payable	-195,100	-20,000
Cash dividends paid	-1,910,364	-1,703,006
Proceeds from sale of treasury shares	31,556	3,310
Interest paid	-2,519	-2,607
Change in non-controlling interests	-11,760	0
Net cash flows from (used in) financing activities	-1,864,803	-1,720,069
Effect of exchange rate changes on cash and cash equivalents	-25,870	5,030
Net increase (decrease) in cash and cash equivalents	588,492	-34,677
Cash and cash equivalents at beginning of period	509,436	544,113
Cash and cash equivalents at end of period	1,097,928	509,436
Cash and cash equivalents reported in the statement of financial position	1,097,928	509,436

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. Kathy
Department	Sales Department
E-mail	Kathy@e-cscc.com.tw

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.65
UK Pound	1	Rs.99.61
Euro	1	Rs.72.33
TWD	1	Rs.2.02

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

INFORMATION DETAILS

Analysis Done by :	HEE
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.