MIRA INFORM REPORT

Report No. :	306409
Report Date :	10.02.2015

IDENTIFICATION DETAILS

Name :	STANDARD CHEM. & PHARM. CO., LTD.
Registered Office :	No.6-20, Tu-Ku, Tu-Ku Village, Xinying Dist., Tainan City 730
Country :	Taiwan
Financials (as on) :	31.12.2013
Date of Incorporation :	30.06.1967
Com. Reg. No.:	71122503
Legal Form :	Joint Stock Company
Line of Business :	engaged in Manufacturing and sales of pharmaceuticals products include Veterinary Additives, Health Tea Bags, Yogurt, Traditional Chinese Medicines, Concentrated Chinese Medicines, Pregnancy Kit and Control Substances
No of Employees :	About 1,039 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
Taiwan	A2	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:	Standard Chem. & Pharm. Co., Ltd.
Supplied Name:	STANDARD CHEM & PHARMA CO., LTD
Trading Address:	No.6-20, Tu-Ku, Tu-Ku Village, Xinying Dist., Tainan City 730, Taiwan (R.O.C.)
Supplied Address:	NO. 620, TU KU LI, HSIN YING, TAINAN, TAIWAN
Telephone Number:	+886-6-636-1511
Fax Number:	+886-6-632-9953
E-mail:	info@standard.com.tw

Notes: The exact name and address are as above.

Credit Summary

Credit Opinion:

Business connections are permissible.

Company Identification Details

Registered Name:	Standard Chem. & Pharm. Co., Ltd.
Registered Address:	No.6-20, Tu-Ku, Tu-Ku Village, Xinying Dist., Tainan City 730, Taiwan (R.O.C.)
Date of Foundation:	1967-6-30
Registration Number:	71122503
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 2,000,000,000 (USD 62,000,000) (As of 2015.02, 1 NTD = 0.031 USD)
Paid-up Capital:	NTD 1,786,960,890 (USD 55,395,788 )
Legal Representatives:	Jincai Fan
Legal Form:	Joint Stock Company
Principal Activities:	engaged in Manufacturing and sales of pharmaceuticals products include Veterinary Additives, Health Tea Bags, Yogurt, Traditional Chinese Medicines, Concentrated Chinese Medicines, Pregnancy Kit and Control Substances
Staff:	About 1,039 Employees (As of 2014-5-26)
Listed at Stock Exchange:	No
Date of Last Annual Return:	2014-7-2

History

Subject was incorporated on 1967-6-30 with registered number 71122503 as Joint Stock Company in Taiwan.

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

Corporate Structure

Factories

1
Address:	No.6-20, Tu-Ku, Tu-Ku Village, Xinying Dist., Tainan City 730, Taiwan (R.O.C.)
Date of Foundation:	1970-8-1
Date of Registration:	1970-8-1
Factory Registration Number:	99657710
Factory Manager:	Jincai Fan
Status:	In Production
Date of Last Annual Return:	2013-5-1
Major Products:	200 medicine and chemical product for medical use
2
Name:	The 2^nd Factory
Address:	No.154, Kaiyuan Road, Tu-Ku Village, Xinying Dist., Tainan City 730, Taiwan (R.O.C.)
Date of Foundation:	1989-8-4
Date of Registration:	1990-6-15
Factory Registration Number:	99657734
Factory Manager:	Jincai Fan
Status:	In Production
Date of Last Annual Return:	2014-10-8
Major Products:	087 animal feed 194 cosmetic 200 medicine and chemical product for medical use

Offices

1
Name:	Taipei Office
Address:	4F. , No.158 , Songjiang Rd. , Jhongshan District , Taipei City 10459 , Taiwan
Tel:	+886-2-2523-6641
Fax:	+886-2-2521-6352
2
Name:	Taichung Office
Address:	3F. , No.2-143 , Wucyuan Rd. , West District , Taichung City 40355 , Taiwan
Tel:	+886-4-2372-8785
Fax:	+886-4-2372-6286
3
Name:	Kaohsiung Office
Address:	3F. -1 , No.185 , Fuguo Rd. , Zuoying District , Kaohsiung City 81358 , Taiwan
Tel:	+886-7-557-5357
Fax:	+886-7-557-6341

Related Companies

Multipower Enterprise Corp.

Syntech Chemicals Inc

Syngen Biotech, Inc

Stason Pharmaceuticals, Inc

Adv Pharma Inc

Sunstar Chem. & Pham. Corp

Inforight Tech Co., Ltd

Boscogen Inc

Shareholders

Major Shareholders

Name	Subscription Shares
Jincai Fan	20,936,813
Ziting Fan	19,520,604
Fan Daonan Culture and Education Foundation	4,952,881
Yuanfeng Gao	16,182
Cuiwen Ye	1,340,669

Management Information

Core Management

Directors

1
Name	Jincai Fan
Position	Board Chairman
2
Name	Ziting Fan
Position	Director/ Manager
Date of Appointment	2008-7-1
3
Name	Fan Daonan Culture and Education Foundation
Position	Director
4
Name	Yuande Li
Position	Director
5
Name	Zhenming Xiao
Position	Director
6
Name	Yuanfeng Gao
Position	Supervisor
7
Name	Cuiwen Ye
Position	Supervisor

Personnel Structure

Total Employees

About 1,039 Employees (As of 2014-5-26)

Operation Information

Offices & Factories

	Headquarters
Add	No.6-20, Tu-Ku, Tu-Ku Village, Xinying Dist., Tainan City 730, Taiwan (R.O.C.)

Production Information

l Subject is engaged in manufacturing of pharmaceuticals

l Subject has two factories in Taiwan for production.

l Subject obtained the certification of ISO 9001, ISO14001, OHSAS 18001GMP and FDA, etc.

Purchase Information

l The registered activities of subject:

Business Code	Details
C110010	Manufacturing of beverage
F102040	Wholesale of beverage
C199990	Manufacturing of other unclassified food
F102170	Wholesale of food and grocery
F203010	Retail of food and beverage
C201010	Manufacturing of feed
F103010	Wholesale of feed
F202010	Retail of feed
C801110	Manufacturing of fertilizer
F107050	Wholesale of fertilizer
F207050	Retail of fertilizer
C802041	Manufacturing of western medicine
F108021	Wholesale of western medicine
F208021	Retail of western medicine
C802051	Manufacturing of traditional Chinese medicine
F108011	Wholesale of traditional Chinese medicine
F208011	Retail of traditional Chinese medicine
C802100	Manufacturing of cosmetic
F108040	Wholesale of cosmetic
F208040	Retail of cosmetic
CE01010	Manufacturing of general instrument
CF01011	Manufacturing of medical equipment
F108031	Wholesale of medical equipment
F208031	Retail of medical equipment
C802060	Manufacturing of animal medicine
F107070	Wholesale of animal medicine
F207070	Retail of animal medicine
F401010	International trade business
H701040	Developing of specialization region
H701060	Developing of new town and new community
I103060	Management consulting business
ZZ99999	Besides licensed business, all other business items those are not banned or restricted

l Subject purchases its raw materials both at home and abroad.

l It is introduced that subject imports some raw materials from Japan, Europe .

Sales Information

l Subject is engaged in sale of pharmaceuticals

l The major products include Veterinary Additives, Health Tea Bags, Yogurt, Traditional Chinese Medicines, Concentrated Chinese Medicines, Pregnancy Kit and Control Substances

l Subject’s sales regions cover China, Japan, Philippines, Vietnam, Thailand, South Korea, Europe, USA .

l Subject’s major customers are hospital, clinic, healthcare centre, and pharmacy industry

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

1. Domestic Purchase

Products	Raw materials
Payment Terms	Cash, T/T

2. Import

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

Sales

1. Domestic Markets

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

2. Export

Product	Pharmaceuticals, etc.
Selling Terms	L/C, T/T

Balance Sheet

Unit: NTD/000

	2013-12-31	2012-12-31
Current assets
Cash and cash equivalents
Total cash and cash equivalents	767,941	963,094
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	243,389	223,901
Notes receivable, net
Notes receivable, net	297,373	386,039
Accounts receivable, net
Accounts receivable, net	549,975	543,232
Other receivables
Other receivables, net	22,019	12,132
Inventories
Total inventories	555,470	625,138
Prepayments
Total prepayments	187,952	90,062
Non-current assets classified as held for sale, net
Non-current assets classified as held for sale, net	0	0
Total current assets	2,624,119	2,843,598
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	212,082	169,034
Non-current financial assets at cost
Non-current financial assets at cost, net	34,147	32,844
Investments accounted for using equity method
Investments accounted for using equity method, net	189,407	13,245
Property, plant and equipment
Total property, plant and equipment	1,947,030	1,723,712
Investment property, net
Investment property, net	0	11,519
Intangible assets
Total intangible assets	147,802	165,287
Deferred tax assets	100,967	125,834
Other non-current assets
Prepayments for business facilities	18,806	26,357
Guarantee deposits paid	12,591	19,594
Long-term prepaid rents	60,303	58,258
Other non-current assets, others
Total other non-current assets, others	5,939	8,344
Total other non-current assets	97,639	112,553
Total non-current assets	2,729,074	2,354,028
Total assets	5,353,193	5,197,626
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	215,255	258,445
Short-term notes and bills payable
Total short-term notes and bills payable	79,942	89,997
Current financial liabilities at fair value through profit or loss
Total current financial liabilities at fair value through profit or loss	0	249
Notes payable
Total notes payable	208,090	286,913
Accounts payable
Total accounts payable	136,483	143,875
Other payables
Total other payables	321,646	297,312
Current tax liabilities	45,560	39,362
Liabilities related to non-current assets classified as held for sale	0	0
Other current liabilities
Advance receipts
Total advance receipts	82,596	73,535
Long-term liabilities, current portion
Total long-term liabilities, current portion	40,000	250,897
Total other current liabilities	122,596	324,432
Total current liabilities	1,129,572	1,440,585
Non-current liabilities
Long-term borrowings
Total long-term borrowings	127,000	40,000
Deferred tax liabilities
Total deferred tax liabilities	62,476	69,154
Other non-current liabilities
Accrued pension liabilities	451,448	485,534
Guarantee deposits received	240	2,384
Other non-current liabilities, others	0	5,311
Total other non-current liabilities	451,688	493,229
Total non-current liabilities	641,164	602,383
Total liabilities	1,770,736	2,042,968
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	1,786,961	1,684,229
Total capital stock	1,786,961	1,684,229
Capital surplus
Capital surplus, additional paid-in capital
Total capital surplus, additional paid-in capital	411,397	226,365
Capital surplus, share options	0	41,836
Total capital surplus	411,397	268,201
Retained earnings
Legal reserve	412,527	385,385
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	547,081	441,077
Total retained earnings	959,608	826,462
Other equity interest
Exchange differences on translation of foreign financial statements
Total exchange differences on translation of foreign financial statements	4,992	-7,595
Unrealized gains (losses) on available-for-sale financial assets
Total unrealized gains (losses) on available-for-sale financial assets	128,284	83,318
Total other equity interest	133,276	75,723
Total equity attributable to owners of parent	3,291,242	2,854,615
Non-controlling interests	291,215	300,043
Total equity	3,582,457	3,154,658
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

	2013	2012
Total operating revenue	3,053,983	3,373,811
Operating costs
Total operating costs	1,756,385	2,056,582
Gross profit (loss) from operations	1,297,598	1,317,229
Gross profit (loss) from operations	1,297,598	1,317,229
Operating expenses
Selling expenses
Total selling expenses	510,667	630,629
Administrative expenses
Total administrative expenses	295,311	261,415
Research and development expenses
Total research and development expenses	226,429	204,766
Total operating expenses	1,032,407	1,096,810
Net operating income (loss)	265,191	220,419
Non-operating income and expenses
Other income
Total other income	93,388	80,118
Other gains and losses
Other gains and losses, net	16,780	30,718
Finance costs
Finance costs, net	9,589	11,130
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	3,149	138
Total non-operating income and expenses	103,728	99,844
Profit (loss) from continuing operations before tax	368,919	320,263
Tax expense (income)
Total tax expense (income)	63,570	46,245
Profit (loss) from continuing operations	305,349	274,018
Profit (loss) from discontinued operations
Total profit (loss) from discontinued operations	-206	0
Profit (loss)	305,143	274,018
Other comprehensive income
Exchange differences on translation	12,587	-7,667
Unrealised gains (losses) on valuation of available-for-sale financial assets	44,966	35,828
Actuarial gains (losses) on defined benefit plans	46,714	-28,458
Income tax related to components of other comprehensive income	8,205	-4,838
Other comprehensive income, net	96,062	4,541
Total comprehensive income	401,205	278,559
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	298,386	275,900
Profit (loss), attributable to non-controlling interests	6,757	-1,882
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	394,448	280,513
Comprehensive income, attributable to non-controlling interests	6,757	-1,954
Basic earnings per share
Basic earnings (loss) per share from continuing operations	1.73	1.64
Basic earnings (loss) per share from discontinued operations	0	0
Total basic earnings per share	1.73	1.64
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations	1.71	1.59
Diluted earnings (loss) per share from discontinued operations	0	0
Total diluted earnings per share	1.71	1.59

Cash Flows

Unit: NTD/000

	2013	2012
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	368,919	320,263
Profit (loss) from discontinued operations before tax	-206	0
Profit (loss) before tax	368,713	320,263
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	134,964	126,628
Amortization expense	6,298	9,922
Provision (reversal of provision) for bad debt expense	2,254	4,164
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	-166	-10,355
Interest expense	9,589	11,130
Share of loss (profit) of associates and joint ventures accounted for using equity method	-3,149	-138
Loss (gain) on disposal of property, plan and equipment	-4,994	1,402
Property, plan and equipment transferred to expenses	0	35
Loss (gain) on disposal of non-current assets classified as held for sale	0	-32,624
Loss (gain) on disposal of investments	45	0
Other adjustments to reconcile profit (loss)	-17,134	277
Total adjustments to reconcile profit (loss)	127,707	110,441
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	-19,632	33,376
Decrease (increase) in notes receivable	88,575	-54,599
Decrease (increase) in accounts receivable	-25,964	10,264
Decrease (increase) in other receivable	-13,563	-2,347
Decrease (increase) in inventories	-12,463	-67,114
Decrease (increase) in prepayments	-118,276	55,907
Total changes in operating assets	-101,323	-24,513
Changes in operating liabilities
Increase (decrease) in notes payable	-27,335	70,229
Increase (decrease) in accounts payable	42,263	-47,785
Increase (decrease) in other payable	71,496	17,830
Increase (decrease) in receipts in advance	9,011	-10,218
Increase (decrease) in accrued pension liabilities	4,423	16,762
Increase (decrease) in other operating liabilities	-3,702	-2,500
Total changes in operating liabilities	96,156	44,318
Total changes in operating assets and liabilities	-5,167	19,805
Total adjustments	122,540	130,246
Cash inflow (outflow) generated from operations	491,253	450,509
Interest paid	-4,040	-2,306
Income taxes refund (paid)	-59,954	-52,253
Net cash flows from (used in) operating activities	427,259	395,950
Cash flows from (used in) investing activities
Acquisition of available-for-sale financial assets	0	-1,878
Proceeds from disposal of available-for-sale financial assets	2,015	0
Acquisition of financial assets at cost	-1,303	0
Proceeds from disposal of financial assets at cost	-182	0
Proceeds from capital reduction of financial assets at cost	1,755	1,973
Acquisition of investments accounted for using equity method	-173,518	0
Proceeds from disposal of non-current assets classified as held for sale	0	152,348
Acquisition of property, plant and equipment	-384,402	-141,971
Proceeds from disposal of property, plant and equipment	7,976	2,003
Decrease in refundable deposits	6,745	2,492
Acquisition of intangible assets	-38,325	-23,967
Decrease in prepayments for business facilities	29	-19,584
Increase in other prepayments	-2,045	-58,258
Other investing activities	-9,501	4,766
Net cash flows from (used in) investing activities	-590,756	-82,076
Cash flows from (used in) financing activities
Increase in short-term loans	215,255	258,445
Decrease in short-term loans	-252,445	-270,000
Decrease in short-term notes and bills payable	-10,000	30,000
Proceeds from long-term debt	117,000	20,000
Decrease in guarantee deposits received	-2,144	1,111
Cash dividends paid	-203,749	-168,419
Change in non-controlling interests	-15,585	83,967
Other financing activities	0	-371
Net cash flows from (used in) financing activities	-151,668	-45,267
Effect of exchange rate changes on cash and cash equivalents	120,012	-11,426
Net increase (decrease) in cash and cash equivalents	-195,153	257,181
Cash and cash equivalents at beginning of period	963,094	705,913
Cash and cash equivalents at end of period	767,941	963,094
Cash and cash equivalents reported in the statement of financial position	767,941	963,094

Note:

Subject did not submit the latest independent financial information to the official registry. We only provide the above consolidated financial information of the subject for your 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

1
Trial Number:	2011, Nanjian, 546
Date of Trial:	2011-7-4
Reason:	Payment for goods
Claimant:	Standard Chem. & Pharm. Co., Ltd.
Answering:	Ming Sheng Chronic Rehabilitation Hospital (Literal Translation)
2
Trial Number:	2011, Nanxiao, 162
Date of Trial:	2011-3-22
Reason:	Payment for goods
Claimant:	Standard Chem. & Pharm. Co., Ltd.
Answering:	Yi Jia Clinic (Literal Translation)

Special Note

Interview Details

Name	Ms. Xu
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.14
UK Pound	1	Rs.94.79
Euro	1	Rs.70.38

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	MNL

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.