MIRA INFORM REPORT

Report No. :	307320
Report Date :	17.02.2015

IDENTIFICATION DETAILS

Name :	CHIH LIEN INDUSTRIAL CO., LTD.
Registered Office :	No.480, Chung Shing Rd., Xinwu Dist., Taoyuan City 327
Country :	Taiwan
Financials (as on) :	30.09.2014
Date of Incorporation :	03.09.1973
Com. Reg. No.:	43633504
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Sale of Steel Products.
No. of Employees :	About 160 Employees

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

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

Notes: The exact name and address are as above.

Company Identification Details

Registered Name:	Chih Lien Industrial Co., Ltd.
Registered Address:	No.480, Chung Shing Rd., Xinwu Dist., Taoyuan City 327, Taiwan (R.O.C.)
Date of Foundation:	1973-9-3
Registration Number:	43633504
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 2,900,000,000 (USD 89,900,000) (As of 2015.02, 1 NTD = 0.0310 USD)
Paid-up Capital:	NTD 1,020,000,000 (USD 31,620,000)
Legal Representatives:	Chunxing Liu
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale steel products.
Staff:	About 160 Employees
Listed at Stock Exchange:	Yes; Stock Code: 2024
Date of Last Annual Return:	2014-10-6

History

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

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

Corporate Structure

Factories

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

Shareholders

Major Shareholders

Name	Subscription Shares
Da Sheng International Investment Co., Ltd. (Literal Translation)
9,666,646
Ren He International Investment Co., Ltd. (Literal Translation)	9,252,501
Yuling Guo	566,486
Tai Yi International Investment Co., Ltd. (Literal Translation)	5,000,000

Shareholder Information:

1
Registered Name:	Da Sheng International Investment Co., Ltd. (Literal Translation)
Registered Address:	4/F-8, No.103, Sec 1, Fuxing South Road, Da-an District, Taipei City, Taiwan
Date of Foundation:	1996-4-17
Registration Number:	96955171
Registry:	Taipei City Government
Registered Capital:	NTD 100,000,000 (USD 3,100,000) (As of 2015.02, 1 NTD = 0.0310 USD)
Paid-up Capital:	NTD 55,000,000 (USD 1,705,000)
Legal Representatives:	Chunxing Liu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2015-1-12
2
Registered Name:	Ren He International Investment Co., Ltd. (Literal Translation)
Registered Address:	4/F-8, No.103, Sec 1, Fuxing South Road, Da-an District, Taipei City, Taiwan
Date of Foundation:	1996-1-29
Registration Number:	96932516
Registry:	Taipei City Government
Registered Capital:	NTD 100,000,000 (USD 3,100,000) (As of 2015.02, 1 NTD = 0.0310 USD)
Paid-up Capital:	NTD 55,000,000 (USD 1,705,000)
Legal Representatives:	Tongqing Pan
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2015-1-8
3
Registered Name:	Tai Yi International Investment Co., Ltd. (Literal Translation)
Registered Address:	2/F., No.169, Sec 5, Luosi Fu Road, Wenshan District, Taipei City, Taiwan
Date of Foundation:	2000-9-28
Registration Number:	12651082
Registry:	Taipei City Government
Registered Capital:	NTD 53,500,000 (USD 1,658,500) (As of 2015.02, 1 NTD = 0.0310 USD)
Legal Representatives:	Wenjin Duan
Legal Form:	Private Limited Liability Company
Date of Last Annual Return:	2014-11-14

Management Information

Core Management

Directors

1
Name		Chunxing Liu
Position		Board Chairman
2
Name	Zhenghua Li
Position		Director
3
Name	Chenwang Xie
Position		Director
4
Name	Xin-an Lin
Position		Director
5
Name	Yuling Guo
Position		Director
6
Name	Mingfeng Li
Position		Supervisor
7
Name	Qingxiang Xie
Position		Supervisor

Personnel Structure

Total Employees

About 160 Employees

Operation Information

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

Production Information

· Subject is engaged in manufacturing of steel products, etc.

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

· Subject‘s monthly production capacity is about 12,700MT.

Purchase Information

The registered activities of subject:

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

· The raw materials for production are mostly purchased in domestic market.

· Some production facilities are imported from Japan and Europe, etc.

Sales Information

· Subject is engaged in sale of steel products, etc.

· Subject’s major products include high carbon steel, free cutting steel, low carbon steel, alloy steel and so on.

· The products are applied to industrial machinery, precision parts, bicycle, motorcycle, automobile, tool, household, electronic, furniture and construction, etc.

· Subject’s sales regions include Asia, Europe and America, etc.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

PURCHASE

Domestic Purchase

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

Import

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

SALES

Domestic Markets

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

Export

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

Balance Sheet

Unit: NTD/000

Consolidated	2014-9-30	2013-9-30
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	113,487	146,447
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	2,118	0
Current financial assets at cost
Current financial assets at cost, net	0	0
Notes receivable, net
Notes receivable	117,062	88,434
Notes receivable, net	117,062	88,434
Notes receivable due from related parties, net
Notes receivable due from related parties	2,169	18,969
Notes receivable due from related parties, net	2,169	18,969
Accounts receivable, net
Accounts receivable, net	229,732	248,710
Accounts receivable due from related parties, net
Accounts receivable due from related parties	521	19,010
Accounts receivable due from related parties, net	521	19,010
Other receivables
Other non-operating receivables, others	1,732	725
Other receivables, net	1,732	725
Other receivables due from related parties
Other receivables due from related parties, net	0	0
Inventories
Inventories, manufacturing business
Inventories, manufacturing business, net	474,700	425,446
Total inventories	474,700	425,446
Prepayments
Total prepayments	9,524	8,635
Non-current assets classified as held for sale, net
Non-current assets classified as held for sale, net	0	0
Other current assets
Other current financial assets	127,544	131,674
Other current assets, others	4,209	4,707
Total other current assets	131,753	136,381
Total current assets	1,082,798	1,092,757
Non-current assets
Non-current financial assets at fair value through profit or loss
Total non-current financial assets at fair value through profit or loss	0	0
Non-current financial assets at fair value through other comprehensive income
Total non-current financial assets at fair value through other comprehensive income	0	0
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	0	0
Held-to-maturity non-current financial assets
Non-current held-to-maturity financial assets, net	0	0
Non-current financial assets at amortised cost
Non-current financial assets at amortised cost, net	0	0
Non-current financial assets at cost
Non-current financial assets at cost	235	235
Non-current financial assets at cost, net	235	235
Non-current bond investment without active market
Non-current bond investment without active market, net	0	0
Investments accounted for using equity method
Investments accounted for using equity method, net	0	0
Property, plant and equipment
Land, net
Land, cost	672,106	672,106
Land, net	672,106	672,106
Buildings and structures, net
Buildings and structures, cost	368,259	471,040
Accumulated depreciation, buildings and structures	216,201	246,540
Buildings and structures, net	152,058	224,500
Machinery and equipment, net
Machinery and equipment, cost	407,742	455,255
Accumulated depreciation, machinery and equipment	104,938	164,704
Machinery and equipment, net	302,804	290,551
Pollution-prevention equipment, net
Pollution-prevention equipment, net	0	0
Transportation equipment, net
Transportation equipment, net	0	0
Office equipment, net
Office equipment, net	0	0
Leased assets, net
Leased assets, net	0	0
Other facilities, net
Other facilities, cost	112,228	172,821
Accumulated depreciation, other facilities	67,864	116,994
Other facilities, net	44,364	55,827
Unfinished construction and equipment under acceptance	0	0
Total property, plant and equipment	1,171,332	1,242,984
Intangible assets
Computer software, net
Computer software, net	0	0
Goodwill	0	116
Other intangible assets, net
Other intangible assets, net	0	0
Intangible assets under development, net
Intangible assets under development, net	0	0
Total intangible assets	0	116
Deferred tax assets	8,500	11,801
Other non-current assets
Prepayments for business facilities	1,915	16,356
Long-term notes and accounts receivable
Long-term accounts receivables	12,829	13,321
Overdue receivables	0	1,050
Allowance for uncollectible accounts, long-term receivables	11,590	3,000
Long-term notes and accounts receivable, net	1,239	11,371
Long-term prepaid rents	0	42,264
Other non-current assets, others
Total other non-current assets, others	2,545	4,748
Total other non-current assets	5,699	74,739
Total non-current assets	1,185,766	1,329,875
Total assets	2,268,564	2,422,632
Liabilities
Current liabilities
Short-term borrowings
Bank loan	270,626	295,686
Total short-term borrowings	270,626	295,686
Short-term notes and bills payable
Short-term notes and bills payable	29,980	29,901
Total short-term notes and bills payable	29,980	29,901
Notes payable
Notes payable	23,633	18,814
Total notes payable	23,633	18,814
Notes payable to related parties
Total notes payable to related parties	0	0
Accounts payable
Accounts payable	93,454	115,399
Total accounts payable	93,454	115,399
Accounts payable to related parties
Total accounts payable to related parties	0	0
Other payables
Other accrued expenses	49,925	44,433
Total other payables	49,925	44,433
Current provisions
Total current provisions	0	0
Liabilities related to non-current assets classified as held for sale	0	0
Other current liabilities
Advance receipts
Total advance receipts	0	0
Long-term liabilities, current portion
Long-term borrowings, current portion	69,810	115,250
Total long-term liabilities, current portion	69,810	115,250
Other current liabilities, others	3,731	16,138
Total other current liabilities	73,541	131,388
Total current liabilities	541,159	635,621
Non-current liabilities
Non-current financial liabilities at fair value through profit or loss
Total non-current financial liabilities at fair value through profit or loss	0	0
Long-term borrowings
Long-term bank loans	547,593	571,396
Total long-term borrowings	547,593	571,396
Non-current provisions
Total non-current provisions	0	0
Deferred tax liabilities
Deferred tax liabilities, income tax	506	82
Total deferred tax liabilities	506	82
Other non-current liabilities
Accrued pension liabilities	31,613	43,176
Total other non-current liabilities	31,613	43,176
Total non-current liabilities	579,712	614,654
Total liabilities	1,120,871	1,250,275
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	1,020,000	1,095,500
Total capital stock	1,020,000	1,095,500
Capital surplus
Capital surplus, treasury share transactions	0	0
Total capital surplus	0	0
Retained earnings
Special reserve	0	24,765
Unappropriated retained earnings (accumulated deficit)
Accumulated profit and loss	6,433	-77,439
Current profit and loss	121,260	44,996
Total unappropriated retained earnings (accumulated deficit)	127,693	-32,443
Total retained earnings	127,693	-7,678
Other equity interest
Exchange differences on translation of foreign financial statements
Total exchange differences on translation of foreign financial statements	0	0
Equity related to non-current assets classified as held for sale
Equity related to non-current assets classified as held for sale, subsidiaries accounted for using equity method	0	6,192
Total equity related to non-current assets classified as held for sale	0	6,192
Other equity, others
Total other equity, others	0	0
Total other equity interest	0	6,192
Treasury shares	0	0
Total equity attributable to owners of parent	1,147,693	1,094,014
Equity attributable to former owner of business combination under common control	0	0
Non-controlling interests	0	78,343
Total equity	1,147,693	1,172,357
Number of share capital awaiting retirement	0	0
Equivalent issue shares of advance receipts for ordinary share	0	0
Number of shares in entity held by entity and by its subsidiaries	0	0

Profit and Loss Account

Unit: NTD/000

Consolidated	2014-1-1~2014-9-30	2013-1-1~2013-9-30
Operating revenue
Net sales revenue
Sales revenue
Total sales revenue	1,272,051	1,153,256
Net sales revenue	1,272,051	1,153,256
Service revenue
Processing fees revenue
Processing fees revenue	55,489	48,407
Processing fees revenue, net	55,489	48,407
Total service revenue	55,489	48,407
Total operating revenue	1,327,540	1,201,663
Operating costs
Cost of sales
Cost of sales	1,162,912	1,064,698
Total cost of sales	1,162,912	1,064,698
Investment costs (for investment business)
Investment losses
Total investment losses	0	0
Total investment costs (for investment business)	0	0
Total operating costs	1,162,912	1,064,698
Gross profit (loss) from operations	164,628	136,965
Gross profit (loss) from operations	164,628	136,965
Operating expenses
Selling expenses
Total selling expenses	50,792	42,393
Administrative expenses
Total administrative expenses	25,071	22,343
Total operating expenses	75,863	64,736
Net operating income (loss)	88,765	72,229
Non-operating income and expenses
Other income
Interest income
Interest income from bank deposits	2,071	562
Total interest income	2,071	562
Fee income
Total fee income	0	0
Other income, others	3,026	274
Total other income	5,097	836
Other gains and losses
Foreign exchange gains	3,387	1,285
Gains on financial assets (liabilities) at fair value through profit or loss	126	47
Miscellaneous disbursements	1	2
Foreign exchange losses	0	0
Losses on financial assets (liabilities) at fair value through profit or loss	0	0
Impairment loss
Total impairment loss	0	0
Other gains and losses, net	3,512	1,330
Gains (losses) arising from derecognition of financial assets measured at amortised cost
Gains (losses) arising from derecognition of financial assets measured at amortised cost	0	0
Gains (losses) on reclassification of financial assets
Gains (losses) on reclassification of financial assets	0	0
Finance costs
Interest expense	14,347	20,994
Finance costs, net	14,347	20,994
Total non-operating income and expenses	-5,738	-18,828
Profit (loss) from continuing operations before tax	83,027	53,401
Tax expense (income)
Current tax expense (income)	3,006	0
Total tax expense (income)	3,006	0
Profit (loss) from continuing operations	80,021	53,401
Profit (loss) from discontinued operations
Total profit (loss) from discontinued operations	39,088	-12,286
Profit (loss)	119,109	41,115
Other comprehensive income
Exchange differences on translation	-6,244	9,967
Other comprehensive income, net	-6,244	9,967
Total comprehensive income	112,865	51,082
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	121,260	44,996
Profit (loss), attributable to former owner of business combination under common control	0	0
Profit (loss), attributable to non-controlling interests	-2,151	-3,881
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	116,955	51,869
Comprehensive income, attributable to non-controlling interests	-4,090	-787
Basic earnings per share
Basic earnings (loss) per share from continuing operations	0.73	0.49
Basic earnings (loss) per share from discontinued operations	0.38	-0.08
Total basic earnings per share	1.11	0.41
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations	0.73	0.49
Diluted earnings (loss) per share from discontinued operations	0.38	-0.08
Total diluted earnings per share	1.11	0.41

Cash Flows

Unit: NTD/000

Consolidated	2014-1-1~2014-9-30	2013-1-1~2013-9-30
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	83,027	53,401
Profit (loss) from discontinued operations before tax	-6,925	-12,286
Profit (loss) before tax	76,102	41,115
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	51,927	47,579
Amortization expense	481	539
Provision (reversal of provision) for bad debt expense	3,174	125
Interest expense	14,894	21,752
Interest income	-2,087	-591
Property, plan and equipment transferred to expenses	316	0
Other adjustments to reconcile profit (loss)	610	1,005
Total adjustments to reconcile profit (loss)	69,315	70,409
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	-126	0
Decrease (increase) in notes receivable	-47,935	-1,005
Decrease (increase) in notes receivable due from related parties	14,769	-3,217
Decrease (increase) in accounts receivable	-30,112	1,747
Decrease (increase) in accounts receivable due from related parties	10,224	-2,414
Decrease (increase) in other receivable	-893	-154
Decrease (increase) in inventories	-59,568	44,346
Decrease (increase) in prepayments	-505	1,343
Decrease (increase) in other current assets	-1,185	901
Total changes in operating assets	-115,331	41,547
Changes in operating liabilities
Increase (decrease) in notes payable	4,267	-5,409
Increase (decrease) in accounts payable	52,706	53,459
Increase (decrease) in other payable	-4,130	5,438
Increase (decrease) in other current liabilities	8,119	6,329
Increase (decrease) in accrued pension liabilities	-1,886	-2,123
Total changes in operating liabilities	59,076	57,694
Total changes in operating assets and liabilities	-56,255	99,241
Total adjustments	13,060	169,650
Cash inflow (outflow) generated from operations	89,162	210,765
Interest received	2,087	591
Interest paid	-15,046	-22,218
Income taxes refund (paid)	-5,106	0
Net cash flows from (used in) operating activities	71,097	189,138
Cash flows from (used in) investing activities
Proceeds from disposal of subsidiaries	-1,855	0
Acquisition of property, plant and equipment	-40,244	-24,675
Proceeds from disposal of property, plant and equipment	0	1,083
Increase in other financial assets	-16,842	-31,059
Increase in other non-current assets	0	-415
Decrease in other non-current assets	1,238	0
Increase in prepayments for business facilities	-1,915	-16,356
Net cash flows from (used in) investing activities	-59,618	-71,422
Cash flows from (used in) financing activities
Increase in short-term loans	35,815	0
Decrease in short-term loans	0	-45,457
Decrease in short-term notes and bills payable	0	-70,000
Proceeds from long-term debt	137,340	220,000
Repayments of long-term debt	-197,770	-193,354
Payments to acquire treasury shares	-77,062	0
Net cash flows from (used in) financing activities	-101,677	-88,811
Effect of exchange rate changes on cash and cash equivalents	-3,090	5,620
Net increase (decrease) in cash and cash equivalents	-93,288	34,525
Cash and cash equivalents at beginning of period	206,775	111,922
Cash and cash equivalents at end of period	113,487	146,447
Cash and cash equivalents reported in the statement of financial position	113,487	146,447
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

Name	First Commercial Bank

Public Record

Mortgage

1
Case Type:	Chattel Mortgage
File No.:	109279
Debtor Name:	Chih Lien Industrial Co., Ltd.
Document Number:	10331008680
Date of Registration:	2014/2/14
2
Case Type:	Chattel Mortgage
File No.:	107060
Debtor Name:	Chih Lien Industrial Co., Ltd.
Document Number:	10130366130
Date of Registration:	2012/12/24
3
Case Type:	Chattel Mortgage
File No.:	105452
Debtor Name:	Chih Lien Industrial Co., Ltd.
Document Number:	10130307200
Date of Registration:	2012/2/20
4
Case Type:	Chattel Mortgage
File No.:	107057
Debtor Name:	Chih Lien Industrial Co., Ltd.
Document Number:	10130366150
Date of Registration:	2012/12/24
5
Case Type:	Chattel Mortgage
File No.:	050294
Debtor Name:	Chih Lien Industrial Co., Ltd.
Document Number:	466427
Date of Registration:	1996/2/16
6
Case Type:	Chattel Mortgage
File No.:	107059
Debtor Name:	Chih Lien Industrial Co., Ltd.
Document Number:	10130366140
Date of Registration:	2012/12/24

Lawsuit

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

Special Note

Interview Details

Name	Mr. Wang
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.20
UK Pound	1	Rs.95.99
Euro	1	Rs.71.00

INFORMATION DETAILS

Analysis Done by :	SUB
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.