MIRA INFORM REPORT

Report No. :	306113
Report Date :	06.02.2015

IDENTIFICATION DETAILS

Name :	SINON CORPORATION
Registered Office :	1FL., No.23, Sec.1, Mei Chuan W. Road, W. District, Taichung City
Country :	Taiwan
Financials (as on) :	31.12.2013
Date of Incorporation :	20.11.1963
Com. Reg. No.:	51911712
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Sale of Chemical Products.
No. of Employees :	About 1,500 Employees (Taiwan) About 3,000 Employees (Group)

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 :	Exist

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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, and following the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, Taiwan in July 2013 signed a free trade deal with New Zealand—Taipei’s first-ever with a country with which it does not maintain diplomatic relations—and in November inked a trade pact with Singapore. Negotiations continue on follow-on components of ECFA regarding trade in goods and a dispute resolution mechanism; a trade in services agreement is under review in the legislature. Taiwan's Total Fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting for 11.2% of the island's total population as of 2012. The island runs a large overall trade surplus largely because of its surplus with China, and its foreign reserves are the world's sixth largest, behind China, Japan, Saudi Arabia, Russia, and Switzerland. In 2006 China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Taiwan since 2009 has gradually loosened rules governing Chinese investment on the island, and has also secured greater market access for its investors in the mainland. In August 2012, Taiwan Central Bank signed a memorandum of understanding on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese RMB and the New Taiwan dollar across the Strait, which could help develop Taiwan into a local RMB hub. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved.

Source : CIA

Contact Points

Company Name:	Sinon Corporation
Supplied Name:	SINON CORPORATION
Trading Address:	101, Nanrong Rd., Dadu District, Taichung City, 43245, Taiwan
Supplied Address:	111,CHUNG SHAN ROAD, TA-TU HSIANG TAICHUNG HSIEN 432, TAIWAN
Telephone Number:	+886-4-2693-4261
Fax Number:	+886-4-2693-4265
E-mail:	sntw@sinon.com

Notes: The exact name and address are as above. It is introduced that the supplied address is same as the above trading address but belongs to the former form.

Credit Summary

Credit Opinion:

Business connections are permissible.

Company Identification Details

Registered Name:	Sinon Corporation
Registered Address:	1FL., No.23, Sec.1, Mei Chuan W. Road, W. District, Taichung City, Taiwan (R.O.C.)
Date of Foundation:	1963-11-20
Registration Number:	51911712
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C
Registered Capital:	NTD 3,900,000,000 (USD 124,800,000) (As of 2015.2, 1 NTD = 0.0320 USD)
Paid-up Capital:	NTD 3,378,944,130 (USD 108,126,212.16)
Legal Representatives:	Wenbin Yang
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale of chemical products.
Staff:	About 1,500 Employees (Taiwan) About 3,000 Employees (Group)
Listed at Stock Exchange:	Yes; (Public, TPE: 1712)
Date of Last Annual Return:	2014-12-9

History

Subject was incorporated on 1963-11-20 with registered number 51911712 as Joint Stock Company in Taiwan.

Subject was listed at Taiwan Stock Exchange with the Stock Symbol: 1712 on 1989-12-14.

Shareholders

Name	Subscription Shares
Wenbin Yang	5,196,314
Boyan Hong	7,119,235
Wuchunzhen Guo	2,624,509
Wentong Yang	1,538,200
Youren Yang	2,100,892
Jiawen Investment Co., Ltd (Liberal Translation)	2,512,443
Zhongxin Yang	211,460
Knowledge & Service Information Corp.	1,527,693

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

Shareholder Information:

1
Registered Name:	Jiawen Investment Co., Ltd (Liberal Translation)
Registered Address:	1F., No.15, Lane 14, Minsheng Rd., South Dist., Taichung City, Taiwan (R.O.C.)
Date of Foundation:	2003-10-6
Registration Number:	80559153
Registry:	Taichung City Government
Registered Capital:	NTD 3,000,000 (USD 96,000) (As of 2015.2, 1 NTD = 0.0320 USD)
Legal Representatives:	Qinge Lan
Legal Form:	Private Limited Liability Company
Listed at Stock Exchange:	No
Date of Last Annual Return:	2013-6-25
2
Registered Name:	Knowledge & Service Information Corp.
Registered Address:	No.23, Sec.1, Mei Chuan W. Road, Taichung 403, Taiwan, R.O.C.
Date of Foundation:	1983-10-13
Registration Number:	52875138
Registry:	Taichung City Government
Registered Capital:	NTD 50,000,000 (USD 1,600,000) (As of 2015.2, 1 NTD = 0.0320 USD)
Paid-up Capital:	NTD 50,000,000 (USD 1,600,000)
Legal Representatives:	Renyao Wu
Legal Form:	Joint Stock Company
Listed at Stock Exchange:	No
Date of Last Annual Return:	2014-12-9

Subsidiaries & Branches

Branches

1
Branch Registered Number:	16441550
Branch Status	Dissolved
Branch Name	Kaohsiung Branch
Branch Manager	Shangwu Peng
Branch Address	No. 71-1, Beiduan Street, Yancheng District, Kaohsiung City, Taiwan
Date of Incorporation	1998-3-25
Date of Last Annual Return:	1999-9-29
2
Branch Registered Number:	16441545
Branch Status	Dissolved
Branch Name	Jiayi Branch
Branch Manager	Xicheng Ruan
Branch Address	No. 136, Zhongshan Road, Dalin Town, Jiayi County, Taiwan
Date of Incorporation	1998-3-25
Date of Last Annual Return:	1999-9-29

Related Companies

Sinon Australia Pty. Ltd.
1.03/33 Lexington Drive, Bella Vista, Sydney, NSW 2153, Australia
Phone: +61-2-88830239

Fax: +61-2-88145591
Email: snau@sinon.com

Sinon do Brazil Ltda.
Avenida Carlos Gomes, 1340/1001, Porto Alegre, RS, 90480-001, Brazil
Phone: +55-51-3023-8181 • Fax: +55-51-3023-5525
Email: snbr@sinon.com

Website: www.sinon.com.br

Sinon Chemical (China) Co., Ltd

No. 28 Beicun Road, Zhelin, Fengxian, Shanghai, China.
Phone: +86-21-5749-3733

Fax: +86-21-5749-3703
Email: sncn@sinon.com

Website: www.sinon.com.cn

Sinon EU GMBH
Im Alten Dorfe 37(Volksdorf), D-22359 Hamburg, Germany
Phone: +49-40-6599 5039

Fax: +49-40-6599 5158
Email: sneu@sinon.com

PT Sinon Indonesia
30/F Menara Kadin Indonesia, Suite 14
JL HR Rasuna Said Block X - 5 Kav 2 -3 Jakarta 12950, Indonesia
Phone: +62-21-52994407

Fax: +62-21-52994599
Email: snid@sinon.com

Sinon USA Inc.
1080 Carol Lane Suite 264 Lafayette. CA 94549, U.S.A.
Phone: +1-925 299-1419

Fax: +1-925 299 1419
Email: snus@sinon.com

Sinon (Thailand) Co., Ltd.
26/56 TPI Tower, FL. 20, Chantatmai Road, Thungmahamek, Sathorn, Bangkok 10120, Thailand
Phone: +66-2-6786870

Fax: +66-2-6786875
Email: snth@sinon.com

Factories

1
Name:	Dadu Factory
Address:	No. 22, Lane 150, Nanrong Rd., Zhonghe Li, Dadu Dist., Taichung City, Taiwan
Date of Registration:	2002-11-13
Factory Registration Number:	99638906
Factory Manager:	Wenbin Yang
Status:	In Production
Date of Last Annual Return:	2013-9-16
Major Products:	319 Unclassified other transport machines and related parts
2
Name:	Wuri Factory
Address:	No. 53, Nanrong Rd., Rongquan Li, Wuri Dist., Taichung City, Taiwan
Date of Foundation:	1982-10-7
Date of Registration:	1982-10-7
Factory Registration Number:	99638046
Factory Manager:	Wenbin Yang
Status:	In Production
Date of Last Annual Return:	2013-10-29
Major Products:	089 Other food
3
Name:	Wangtian Factory
Address:	101, Nanrong Rd., Dadu District, Taichung City, 43245, Taiwan
Date of Foundation:	1969-1-1
Factory Registration Number:	99633368
Factory Manager:	Wenbin Yang
Status:	In Production
Date of Last Annual Return:	2013-3-15
Major Products:	181 Basic chemical materials 183 Fertilizers 191 Pesticides and environmental medicine 152 paper container

Personnel Information

Core Management

Directors

1
Name	Wenbin Yang
Position	Board Chairman & Manager
Date of Appointment for the Manager	2009-3-18
2
Name	Boyan Hong
Position	Deputy Chairman
3
Name	Wuchunzhen Guo
Position	Director
4
Name	Wentong Yang
Position	Director
5
Name	Youren Yang
Position	Director
6
Name	Nianheng Liao
Position	Director
7
Name	Zhiyi Ji
Position	Independent Director
8
Name	Junming Xu
Position	Independent Director
9
Name	Zhongxin Yang
Position	Supervisor
10
Name	Renming Yang
Position	Supervisor

Personnel Structure

Total Employees

About 1,500 Employees (Taiwan) About 3,000 Employees (Group)

Operation Information

Offices & Factories

	Headquarters
Add	101, Nanrong Rd., Dadu District, Taichung City, 43245, Taiwan

Production Information

Subject is engaged in manufacturing of chemical products, etc.

Subject has factories in Taiwan for production.

It is introduced that subject also has factories in the Mainland of China for production.

It is introduced that subject has obtained ISO 9001, ISO 17025, OHSAS 18001, ISO 9002 certifications.

Purchase Information

The registered activities of subject:

Business Code	Details
A101011	Seedlings industry.
A101020	Crop cultivation industry
A101030	Special crop cultivation industry
A101040	Edible mushroom cultivation industry
A101050	Flower cultivation industry
A102020	Finishing agricultural products industry.
A102050	Services of crop cultivation.
A102060	Food dealers industry.
C111010	Manufacturing of tea.
C113020	Manufacturing of semi-finished products of alcohol.
C114010	Manufacturing of food additives.
C199030	Manufacturing of instant food.
C199990	Manufacturing of other unclassified food.
C801010	Basic chemical industry.
C801030	Manufacturing of precise chemical material.
C801100	Manufacturing of synthetic resin and plastic.
C801110	Manufacturing of fertilizer.
C801990	Manufacturing of other chemical materials.
C802060	Manufacturing of animal medicine.
C802070	Manufacturing of pesticide.
C802080	Manufacturing of environmental medicine.
C802090	Manufacturing of cleaning supplies.
C802100	Manufacturing of cosmetics.
C802110	Manufacturing of pigment of cosmetics.
C802170	Manufacturing of toxic chemical substances.
C802200	Manufacturing of coating, paint, dyes and pigment.
C802990	Manufacturing of other chemical products.
C805010	Manufacturing of plastic film, plastic cloth, plastic board and plastic pipes.
C805020	Manufacturing of plastic film and plastic bags.
C805030	Manufacturing of plastic daily supplies.
C805060	Manufacturing of plastic leather products.
C805990	Manufacturing of other plastic products.
CB01030	Manufacturing of pollution-prevention equipment.
F101081	Wholesales of germchit.
F101100	Wholesales of flower.
F101130	Wholesales of vegetables and fruit.
F101990	Wholesales of other agriculture products, animal by products and aquatic product.
F102030	Wholesales of cigarette and wine.
F102040	Wholesales of drinks.
F102050	Wholesales of tea.
F102170	Wholesales of miscellaneous goods and food.
F106020	Wholesales of daily supplies.
F106030	Wholesales of molds.
F106060	Wholesales of pet food and pet products.
F107030	Wholesales of cleaning supplies.
F107041	Wholesales of pesticide
F107050	Wholesales of fertilizer.
F107060	Wholesales of toxic chemical substances.
F107070	Wholesales of animal medicine.
F107080	Wholesales of environmental medicine.
F107190	Wholesales of plastic film and plastic bags.
F107200	Wholesales of chemical raw materials.
F107990	Wholesales of other chemical products.
F108031	Wholesales of medical devices.
F108040	Wholesales of cosmetics.
F201010	Retails of agricultural products.
F201061	Retails of germ chit.
F201070	Retails of flower.
F201990	Retails of other agriculture products, animal by products and aquatic product.
F203010	Retails of miscellaneous goods, food and drinks.
F203020	Retails of cigarette and wine.
F206020	Retails of daily supplies.
F206050	Retails of pet food and pet products.
F207030	Retails of cleaning supplies.
F207041	Retails of pesticide.
F207050	Retails of fertilizer.
F207060	Retails of toxic chemical substances.
F207070	Retails of animal medicine.
F207080	Retails of environmental medicine.
F208031	Retails of medical devices.
F399040	No-store retails industry.
F399990	Other comprehensive retails.
F401010	International trading business.
F401071	Importing of germ chit.
F401171	Importing of wine.
I103060	Management consultant industry.
J101050	Environmental testing services
JE01010	Renting industry.
JZ99050	Placement services.
H701010	Developing, renting and sales of residence and building.
H701060	Developing of new town and new community.
H703090	Trading of immovable property.
H703100	Renting of immovable property.
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

Subject purchases its raw materials both at home and abroad.

Sales Information

Subject is mainly engaged in sale of chemical products, etc.

It is introduced that subject’s products include chemical products for agriculture, rubber and plastic products, construction materials, food, fresh food supermarkets, etc.

The major sales regions of the subject are domestic market, Japan, Korea, Other Asian Countries, Europe, America, Australia, etc.

It is introduced that subject also can provide OEM services for customers.

It is introduced that subject has offices the mainland of China, Brazil, Germany, USA for sale service.

It is introduced that subject’s major customers are farm, construction industry, factory, schools, food processing industry, supermarkets, agriculture industry and etc.

Subject’s major products are as follows:

Detail Information of Products

Pesticides, fertilizers, agricultural materials, raw pesticides and finished pesticides, precision chemicals and the intermediates, lunch boxes, meals, and food materials distribution, environmental agents, cling film and other household goods, as well as plastic products, etc.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

PURCHASE

Domestic Purchase

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

Import

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

SALES

Domestic Markets

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

Export

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

Balance Sheet

Unit: NTD/000

Consolidated	2013-12-31	2012-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	1,129,300	807,762
Current available-for-sale financial assets
Current available-for-sale financial assets, net	19,556	23,609
Notes receivable, net
Notes receivable, net	187,273	195,954
Accounts receivable, net
Accounts receivable, net	1,735,594	1,619,265
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	1,316	352
Other receivables
Other receivables, net	120,145	403,373
Inventories
Inventories, manufacturing business
Inventories, manufacturing business, net	2,763,363	2,495,380
Inventories (for construction business)
Inventories (for construction business), net	469,804	0
Total inventories	3,233,167	2,495,380
Prepayments
Total prepayments	344,769	307,993
Other current assets
Total other current assets	12,016	10,372
Total current assets	6,783,136	5,864,060
Non-current assets
Non-current financial assets at cost
Non-current financial assets at cost, net	18,918	18,918
Investments accounted for using equity method
Investments accounted for using equity method, net	29,800	49,238
Property, plant and equipment
Total property, plant and equipment	6,534,791	5,916,742
Intangible assets
Goodwill	0	0
Total intangible assets	0	0
Deferred tax assets	142,893	151,873
Other non-current assets
Prepayments for business facilities	365,908	205,787
Guarantee deposits paid	109,995	130,303
Other non-current assets, others
Total other non-current assets, others	263,051	194,960
Total other non-current assets	738,954	531,050
Total non-current assets	7,465,356	6,667,821
Total assets	14,248,492	12,531,881
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	1,704,403	1,248,040
Short-term notes and bills payable
Total short-term notes and bills payable	100,000	190,000
Current financial liabilities at fair value through profit or loss
Total current financial liabilities at fair value through profit or loss	4,798	0
Notes payable
Total notes payable	51,354	47,725
Accounts payable
Total accounts payable	1,514,686	1,305,065
Accounts payable to related parties
Total accounts payable to related parties	5,133	836
Other payables
Other payables, others	719,338	676,014
Total other payables	719,338	676,014
Current tax liabilities	68,875	58,117
Other current liabilities
Long-term liabilities, current portion
Total long-term liabilities, current portion	59,536	245,953
Other current liabilities, others	255,150	170,243
Total other current liabilities	314,686	416,196
Total current liabilities	4,483,273	3,941,993
Non-current liabilities
Bonds payable
Total bonds payable	1,082,848	0
Long-term borrowings
Total long-term borrowings	2,173,197	2,466,297
Deferred tax liabilities
Total deferred tax liabilities	250,582	264,979
Other non-current liabilities
Accrued pension liabilities	1,064,436	1,050,442
Guarantee deposits received	114,341	104,760
Other non-current liabilities, others	51,047	105,264
Total other non-current liabilities	1,229,824	1,260,466
Total non-current liabilities	4,736,451	3,991,742
Total liabilities	9,219,724	7,933,735
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	3,337,233	3,336,920
Total capital stock	3,337,233	3,336,920
Capital surplus
Total capital surplus	167,924	51,883
Retained earnings
Legal reserve	445,221	404,566
Special reserve	0	0
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	1,041,037	875,168
Total retained earnings	1,486,258	1,279,734
Other equity interest
Exchange differences on translation of foreign financial statements
Total exchange differences on translation of foreign financial statements	-68,043	-66,752
Unrealized gains (losses) on available-for-sale financial assets
Total unrealized gains (losses) on available-for-sale financial assets	7,032	2,468
Total other equity interest	-61,011	-64,284
Treasury shares	0	27,524
Total equity attributable to owners of parent	4,930,404	4,576,729
Non-controlling interests	98,364	21,417
Total equity	5,028,768	4,598,146
Equivalent issue shares of advance receipts for ordinary share	0	0
Number of shares in entity held by entity and by its subsidiaries	0	2,395,000

Profit and Loss Account

Unit: NTD/000

Consolidated	2013	2012
Operating revenue
Total operating revenue	15,720,588	14,222,051
Operating costs
Total operating costs	11,723,772	10,452,892
Gross profit (loss) from operations	3,996,816	3,769,159
Gross profit (loss) from operations	3,996,816	3,769,159
Operating expenses
Selling expenses
Total selling expenses	2,974,386	3,008,876
Administrative expenses
Total administrative expenses	163,335	166,816
Research and development expenses
Total research and development expenses	133,822	134,193
Total operating expenses	3,271,543	3,309,885
Net operating income (loss)	725,273	459,274
Non-operating income and expenses
Other income
Other income, others	27,281	58,676
Total other income	27,281	58,676
Other gains and losses
Gains on disposals of property, plant and equipment	976	116,046
Gains on disposals of investments	-10,328	-17,495
Foreign exchange gains	0	0
Gains on financial assets (liabilities) at fair value through profit or loss	4,798	0
Reversal of impairment loss recognized in profit or loss
Total reversal of impairment loss recognized in profit or loss	0	0
Miscellaneous disbursements	15,493	14,915
Losses on disposals of investments	0	0
Foreign exchange losses	54,720	4,097
Losses on financial assets (liabilities) at fair value through profit or loss	0	0
Other gains and losses, net	-74,767	79,539
Finance costs
Interest expense	76,606	66,670
Finance costs, net	76,606	66,670
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	-3,469	1,443
Total non-operating income and expenses	-127,561	72,988
Profit (loss) from continuing operations before tax	597,712	532,262
Tax expense (income)
Total tax expense (income)	153,692	115,747
Profit (loss) from continuing operations	444,020	416,515
Profit (loss)	444,020	416,515
Other comprehensive income
Exchange differences on translation	-1,291	-66,752
Unrealised gains (losses) on valuation of available-for-sale financial assets	4,564	2,897
Actuarial gains (losses) on defined benefit plans	20,609	-147,411
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	741	-2,552
Income tax related to components of other comprehensive income	3,504	-25,059
Other comprehensive income, net	21,119	-188,759
Total comprehensive income	465,139	227,756
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	455,830	418,770
Profit (loss), attributable to non-controlling interests	-11,810	-2,255
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	476,751	232,553
Comprehensive income, attributable to non-controlling interests	-11,612	-4,797
Basic earnings per share
Total basic earnings per share	1.37	1.25
Diluted earnings per share
Total diluted earnings per share	1.27	1.25

Cash Flows

Unit: NTD/000

Consolidated	2013	2012
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	597,712	532,262
Profit (loss) before tax	597,712	532,262
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	499,318	511,627
Provision (reversal of provision) for bad debt expense	5,025	10,673
Interest expense	76,606	66,670
Interest income	-12,510	-10,198
Dividend income	-1,547	-1,672
Share-based payments	0	4,004
Share of loss (profit) of associates and joint ventures accounted for using equity method	3,469	-1,443
Loss (gain) on disposal of property, plan and equipment	3,718	-135,369
Loss (gain) on disposal of investments	7,820	17,495
Impairment loss on non-financial assets	26,546	33,384
Unrealized foreign exchange loss (gain)	9,536	-10,980
Total adjustments to reconcile profit (loss)	617,981	484,191
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in notes receivable	8,681	4,367
Decrease (increase) in accounts receivable	-36,849	-513,797
Decrease (increase) in other receivable	283,229	-70,699
Decrease (increase) in inventories	-737,788	-579,264
Decrease (increase) in prepayments	-30,295	-45,638
Decrease (increase) in other current assets	-48,551	29,124
Total changes in operating assets	-561,573	-1,175,907
Changes in operating liabilities
Increase (decrease) in financial liabilities held for trading	4,798	0
Increase (decrease) in notes payable	3,629	2,147
Increase (decrease) in accounts payable	176,785	155,270
Increase (decrease) in other payable	45,849	110,188
Increase (decrease) in other current liabilities	98,735	-936
Increase (decrease) in accrued pension liabilities	34,603	22,219
Total changes in operating liabilities	364,399	288,888
Total changes in operating assets and liabilities	-197,174	-887,019
Total adjustments	420,807	-402,828
Cash inflow (outflow) generated from operations	1,018,519	129,434
Interest received	12,510	10,198
Interest paid	-74,796	-65,509
Income taxes refund (paid)	-148,351	-94,868
Net cash flows from (used in) operating activities	807,882	-20,745
Cash flows from (used in) investing activities
Acquisition of available-for-sale financial assets	-9,521	-99,634
Proceeds from disposal of available-for-sale financial assets	17,516	101,245
Acquisition of investments accounted for using equity method	0	-30,000
Proceeds from disposal of subsidiaries	0	126,313
Acquisition of property, plant and equipment	-1,177,116	-870,135
Proceeds from disposal of property, plant and equipment	29,932	14,665
Decrease in refundable deposits	20,308	-54,945
Increase in other non-current assets	118,755	6,883
Increase in prepayments for business facilities	-553,075	-313,845
Net cash flows from (used in) investing activities	-1,553,201	-1,119,453
Cash flows from (used in) financing activities
Increase in short-term loans	456,363	77,419
Decrease in short-term notes and bills payable	-90,000	0
Proceeds from issuing bonds	1,194,825	0
Proceeds from long-term debt	1,850,000	1,897,900
Repayments of long-term debt	-2,159,407	-194,822
Increase in guarantee deposits received	9,581	0
Decrease in guarantee deposits received	0	-3,408
Decrease in payables	0	-335,378
Decrease in other non-current liabilities	6,554	-3,292
Cash dividends paid	-266,954	-266,954
Proceeds from sale of treasury shares	0	0
Treasury shares sold to employees	27,460	0
Disposal of ownership interests in subsidiaries (without losing control)	18,750	0
Change in non-controlling interests	-11,414	-7,738
Net cash flows from (used in) financing activities	1,035,758	1,163,727
Effect of exchange rate changes on cash and cash equivalents	31,099	-6,317
Net increase (decrease) in cash and cash equivalents	321,538	17,212
Cash and cash equivalents at beginning of period	807,762	790,550
Cash and cash equivalents at end of period	1,129,300	807,762
Cash and cash equivalents reported in the statement of financial position	1,129,300	807,762
Other items qualifying for cash and cash equivalents under the definition of IAS 7	0	0

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 and from other source we can not obtain the relevant information, either.

Public Record

Mortgage

1
Case Type:	Chattel Mortgage
Certificate No.:	083002
Debtor Name:	Sinon Corporation
Document Number:	09405091750
Date of Registration:	2005-3-29
2
Case Type:	Chattel Mortgage
Certificate No.:	070387
Debtor Name:	Sinon Corporation
Document Number:	09005097730
Date of Registration:	2001/5/23
3
Case Type:	Chattel Mortgage
Certificate No.:	071503
Debtor Name:	Sinon Corporation
Document Number:	09005150570
Date of Registration:	2001/9/26
4
Case Type:	Chattel Mortgage
Certificate No.:	068799
Debtor Name:	Sinon Corporation
Document Number:	580352
Date of Registration:	2000-12-21

Lawsuit

1
Trial Number:	2013,Zhongjian, 563
Date of Trial:	2013-4-30
Reason:	Payment for damages
Claimant:	Sinon Corporation
Defendant:	Zongming Chen
2
Trial Number:	2014, zhongbu, 1534
Date of Trial:	2014-7-22
Reason:	Payment of salary, etc.
Claimant:	Huiqiong Chen
Defendant:	Sinon Corporation
3
Trial Number:	2014, zhongbu, 1723
Date of Trial:	2014-8-20
Reason:	Return the unjust enrichment
Claimant:	Huiqiong Chen
Defendant:	Sinon Corporation
4
Trial Number:	2014, zhongbu, 1834
Date of Trial:	2014-9-3
Reason:	Leasing payment
Claimant:	Shangpu Lin
Defendant:	Sinon Corporation
5
Trial Number:	2006, zhonglaojian, 75
Date of Trial:	2006-12-14
Reason:	Severance payment
Claimant:	Not Stated
Defendant:	Sinon Corporation
6
Trial Number:	2013, zhongbu, 319
Date of Trial:	2013-2-8
Reason:	Payment for damages, etc.
Claimant:	Sinon Corporation
Defendant:	Zongming Chen

Interview Details

Name	Ms. Chen
Department:	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.87
UK Pound	1	Rs.94.07
Euro	1	Rs.70.19

INFORMATION DETAILS

Analysis Done by :	KAR
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.