MIRA INFORM REPORT

 

 

Report No. :

301462

Report Date :

07.01.2015

 

IDENTIFICATION DETAILS

 

Name :

FROCH ENTERPRISE CO., LTD

 

 

Formerly Known as : 

Jaung Yuann Enterprise Co., Ltd.

 

 

Registered Office :

No.122, Industrial Road, Tou-Liu City, Yun-Lin 640

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2013 (Consolidated)

 

 

Date of Incorporation :

05.10.1984

 

 

Com. Reg. No.:

60330130

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Engaged in manufacturing and sale of Stainless Steel Products such as Stainless Steel Inside Polished Pipe, Stainless Steel Equal-Leg Angle Bar, Stainless Steel Coated Pipe, Stainless Steel Pie, Large Diameter Stainless Steel Pipe, Stainless Steel Mechanical Tube, Stainless Steel Tube For Boiler and Heat-Exchanger, Light Gauge Stainless Steel Tube For General Service, Stainless Steel Square, and Rectangular Tube, Stainless Steel Sanitary Tube, Stainless Steel Sheet, Plate, and Coil which are applied to Chemical, Petrochemical, Automobile, Furniture, Construction, and Bio-Tech Industries

 

 

No of Employees :

About 580 Employees (Taiwan)

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Taiwan

a2

a2

 

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:

Froch Enterprise Co., Ltd

Supplied Name:

FROCH ENTERPRISES CO LTD

Trading Address:

No.122, Industrial Road, Tou-Liu City, Yun-Lin, Taiwan

Supplied Address:

NO 122 INDUSTRIAL ROAD TOU LIU CITY YUN LIN 640

Telephone Number:

+886-5-557-1670/5571-669

Fax Number:

+886 5-557-1188/5571-339

E-mail:

investors@froch.com

 

 

Credit Summary

 

Credit Opinion:

Business connections are permissible.

 

 

Company Identification Details

 

Registered Name:

Froch Enterprise Co., Ltd

Registered Address:

No.122, Industrial Road, Tou-Liu City, Yun-Lin 640, Taiwan

Date of Foundation:

1984-10-5

Registration Number:

60330130

Registry:

Department of Commerce, Ministry of Economic Affairs, R.O.C.

Registered Capital:

NTD 3,000,000,000 (USD 96,000,000)

(As of 2015.1, 1 NTD = 0.0320 USD)

Paid-up Capital:

NTD 2,728,819,310 (USD 87,322,218)

Legal Representatives:

Bingyao Zhang

Legal Form:

Joint Stock Company

Principal Activities:

Engaged in manufacturing and sale of Stainless Steel Products such as Stainless Steel Inside Polished Pipe, Stainless Steel Equal-Leg Angle Bar, Stainless Steel Coated Pipe, Stainless Steel Pie, Large Diameter Stainless Steel Pipe, Stainless Steel Mechanical Tube, Stainless Steel Tube For Boiler and Heat-Exchanger, Light Gauge Stainless Steel Tube For General Service, Stainless Steel Square, and Rectangular Tube, Stainless Steel Sanitary Tube, Stainless Steel Sheet, Plate, and Coil which are applied to Chemical, Petrochemical, Automobile, Furniture, Construction, and Bio-Tech Industries

Staff:

About 580 Employees. (Taiwan)

Listed at Stock Exchange:

Yes (Public, TPE:2030)

Date of Last Annual Return:

2013-7-31

 

History

 

Subject was incorporated on 1984-10-5 with registered number 60330130 as Joint Stock Company in Taiwan.

 

Subject was listed on Taiwan Stock Exchange on 1998-12-24

Former English Name

Jaung Yuann Enterprise Co., Ltd.

Current English Name

Froch Enterprise Co., Ltd

 

Shareholders

 

Name

Subscription Shares

Bingyao Zhang

16,708,351       

Xinjie Investment Co., Ltd (Literal Translation)

26,856,816

Zongjie Lin

6,890,679

Zhaojun Lin

1,037,346

Yizheng Shi

1,150,715

Rongjian Lian

255,493

Muchuan Xu

250,759

Xiumiao Li

7,987,601

Yintang Wang

107,500

Shareholder Information:

Registered Name:

Xinjie Investment Co., Ltd (Literal Translation)

Registered Address:

2F, No. 6, 71 Lane, 177 Alley, 2 Sec, Yuanji Road, Yuanli Town, Zhanghua County

Date of Foundation:

2002-3-6

Registration Number:

13037796

Registry:

MOEA Central Office

Registered Capital:

NTD 25,000,000 (USD 800,000)

(As of 2015.1, 1 NTD = 0.0320USD)

Paid-up Capital:

NTD 25,000,000 (USD 800,000)

Legal Representatives:

Jiaqi Fan

Legal Form:

Joint Stock Company

Date of Last Annual Return:

2011-10-11

 

 

Subsidiaries & Branches

 

Sales offices

1

Address:

No.56, Zhonggang West Road, Fengshu Village, Taishan Township, Taipei County

Tel:

+886-2-22965973

Fax:

+886-2-22966405

2

Address:

No.431, Dazhong No.1 Road, Zuoying District, Kaoshiung, Taiwan

Tel:

+886-7-3462270

Fax:

+886-7-3415257

3

Address:

No.8, Baodao Road, Jingang Town, Zhangjiagang City, Jiangsu Province, China

Tel:

+86-512-58386668

Fax:

+86-512-58386668

4

Address:

No.7768, Zhongchun Road, Minxing District, Shanghai, China

Tel:

+86-21-54854421

Fax:

+86-21-64595793

5

Address:

Ja 1, Wuji Road, Zhaoyang District, Beijing, China

Tel:

+86-10-67376474

Factories

1

Address:

No. 122, Industrial Road, Liuzhong Alley, Douliu City, Yunlin County

Date of Foundation:

1984-11-20

Date of Registration:

1986-1-28

Factory Registration Number:

99653213

Factory Manager:

Bingyao Zhang

Status:

In Production

Date of Last Annual Return:

2001-11-23

Major Products:

252 Metal structure and building components

2

Name:

The Second Factory

Address:

No. 35, Minyou Street, Liuzhong Alley, Douliu City, Yunlin County

Date of Foundation:

1992-6-4

Date of Registration:

1996-3-26

Factory Registration Number:

99653216

Factory Manager:

Bingyao Zhang

Status:

In Production

Date of Last Annual Return:

2001-11-27

Major Products:

252 Metal structure and building components

3

Name:

The Third Factory

Address:

No. 19, Minle Str., Liuzhong Li, Douliu City, Yunlin County, Taiwan

Date of Registration:

2008-5-2

Factory Registration Number:

99709438

Factory Manager:

Bingyao Zhang

Status:

In Production

Date of Last Annual Return:

2008-5-2

Major Products:

254 Metal process and handling

4

Name:

Lingong Factory

Address:

No. 18-5, Zhongyang Lane, Zhongyang Litian, Yuanlin Town, Zhanghua County

Date of Foundation:

1998-7-13

Date of Registration:

1999-11-16

Factory Registration Number:

99645789

Factory Manager:

Bingyao Zhang

Status:

In Production

Date of Last Annual Return:

2007-6-29

Major Products:

241 steels

 

 

Personnel Information

 

Core Management

Directors

1

Name

Bingyao Zhang

Position

Board Chairman

2

Name

Xinjie Investment Co., Ltd (Literal Translation)

Position

Director

3

Name

Zongjie Lin

Position

Director

4

Name

Zhaojun Lin

Position

Director

5

Name

Yizheng Shi

Position

Director

6

Name

Rongjian Lian

Position

Director

7

Name

Muchuan Xu

Position

Director

8

Name

Xiumiao Li

Position

Supervisor

9

Name

Shuzhen Qiu

Position

Supervisor

10

Name

Yintang Wang

Position

Supervisor

 

Personnel Structure

Total Employees

About 580 Employees. (Taiwan)

 


Operation Information

 

Offices & Factories

 

Headquarters

Add

No.122, Industrial Road, Tou-Liu City, Yun-Lin, Taiwan

 

Production Information

l  Subject is engaged in manufacturing of stainless steel products

l  Subject has factories in Taiwan for production.

l  It is introduced that subject obtained the certification of ISO9001 and ISO-14001.

l  It is introduced the annual production capacity of the subject is about 120,000 MT.

 

Purchase Information

l  The registered activities of subject:

No.

Details

1

All kinds of stainless steel pipe, steel pipe, copper tube, aluminum tube manufacturing business to sell the business

2

Steel, copper, aluminum, stainless steel coil plate rolling processing business

3

Stainless steel handrails, doors and Windows, railings, iron bed, shelves and other products manufacturing processing business

4

Food and chemical industry, rubber, plastic, papermaking, cement, ceramic and other mechanical equipment manufacture and repair engineering business

5

General import and export trade business (Except for the futures)

 

l  Subject’s components and raw materials for production are mostly purchased in domestic markets.

 

Sales Information

l  Subject is engaged in sale of stainless steel products

l  Subject’s major products are stainless steel inside polished pipe, stainless steel equal-leg angle bar, stainless steel coated pipe, stainless steel pie, large diameter stainless steel pipe, stainless steel mechanical tube, stainless steel tube for boiler and heat-exchanger, light gauge stainless steel tube for general service, stainless steel square, and rectangular tube, stainless steel sanitary tube, stainless steel sheet, plate, and coil

l  It is introduced that subject’s products sold by the subject are ranged from 0.25 inch to 80 inch in outside diameter and 0.5mm to 30.0 mm in wall thickness

l  Subject’s products are applied in chemical, petrochemical, automobile, furniture, construction, and bio-tech industries

l  The sales regions of the subject are domestic market and abroad such as Europe and America, etc.

 

Settlements

 

Purchase

1.     Domestic Purchase

Products

Components and raw materials, etc.

Payment Terms

T/T, Cash, etc.

 

2.     Import

Subject has little import.

 

Sales

1.     Domestic Markets

Product

Stainless steel products, etc.

Selling Terms

T/T, Cash, etc.

 

2.     Export

Product

Stainless steel products, etc.

Selling Terms

L/C, T/T, etc.

 


Consolidate Balance Sheet

 

Unit: NTD/000

 

2013-12-31

2012-12-31

Assets

 

 

Current assets

 

 

Cash and cash equivalents

 

 

Total cash and cash equivalents

1,249,583

1,006,652

Current financial assets at fair value through profit or loss

 

 

Total current financial assets at fair value through profit or loss

14

0

Current available-for-sale financial assets

 

 

Current available-for-sale financial assets, net

8,039

6,440

Notes receivable, net

 

 

Notes receivable, net

203,601

156,498

Accounts receivable, net

 

 

Accounts receivable, net

797,872

1,048,553

Accounts receivable due from related parties, net

 

 

Accounts receivable due from related parties, net

622

3,289

Other receivables

 

 

Other receivables, net

79,939

50,709

Inventories

 

 

Inventories, manufacturing business

 

 

Inventories, manufacturing business, net

4,059,930

4,124,098

Total inventories

4,059,930

4,124,098

Prepayments

 

 

Total prepayments

200,846

115,737

Other current assets

 

 

Other current financial assets

4,400

5,792

Other current assets, others

278

517

Total other current assets

4,678

6,309

Total current assets

6,605,124

6,518,285

Non-current assets

 

 

Property, plant and equipment

 

 

Total property, plant and equipment

3,669,297

3,645,830

Deferred tax assets

210,701

223,126

Other non-current assets

 

 

Prepayments for business facilities

531,325

492,745

Guarantee deposits paid

22,754

28,879

Long-term prepaid rents

30,666

29,698

Total other non-current assets

584,745

551,322

Total non-current assets

4,464,743

4,420,278

Total assets

11,069,867

10,938,563

Liabilities

 

 

Current liabilities

 

 

Short-term borrowings

 

 

Total short-term borrowings

3,691,831

3,292,016

Short-term notes and bills payable

 

 

Total short-term notes and bills payable

150,000

200,000

Current financial liabilities at fair value through profit or loss

 

 

Total current financial liabilities at fair value through profit or loss

0

555

Notes payable

 

 

Total notes payable

29,490

36,873

Accounts payable

 

 

Total accounts payable

110,333

50,113

Other payables

 

 

Other payables, others

211,838

203,481

Total other payables

211,838

203,481

Current tax liabilities

1,908

3,575

Other current liabilities

 

 

Advance receipts

 

 

Advance sales receipts

114,231

83,259

Total advance receipts

114,231

83,259

Long-term liabilities, current portion

 

 

Long-term borrowings, current portion

200,000

767,569

Total long-term liabilities, current portion

200,000

767,569

Other current liabilities, others

1,869

17,290

Total other current liabilities

316,100

868,118

Total current liabilities

4,511,500

4,654,731

Non-current liabilities

 

 

Long-term borrowings

 

 

Total long-term borrowings

3,281,017

3,163,941

Deferred tax liabilities

 

 

Total deferred tax liabilities

96,498

89,620

Other non-current liabilities

 

 

Accrued pension liabilities

112,294

121,381

Guarantee deposits received

7,344

4,389

Total other non-current liabilities

119,638

125,770

Total non-current liabilities

3,497,153

3,379,331

Total liabilities

8,008,653

8,034,062

Equity

 

 

Equity attributable to owners of parent

 

 

Share capital

 

 

Ordinary share

2,728,819

2,728,819

Total capital stock

2,728,819

2,728,819

Capital surplus

 

 

Capital surplus, additional paid-in capital

 

 

Total capital surplus, additional paid-in capital

443,263

443,263

Total capital surplus

443,263

443,263

Retained earnings

 

 

Legal reserve

121,142

121,142

Special reserve

16,566

16,566

Unappropriated retained earnings (accumulated deficit)

 

 

Total unappropriated retained earnings (accumulated deficit)

-122,066

-166,358

Total retained earnings

15,642

-28,650

Other equity interest

 

 

Total other equity interest

37,813

-74,638

Treasury shares

164,323

164,323

Total equity attributable to owners of parent

3,061,214

2,904,471

Non-controlling interests

0

30

Total equity

3,061,214

2,904,501

Equivalent issue shares of advance receipts for ordinary share

0

0

Number of shares in entity held by entity and by its subsidiaries

15,774,000

15,774,000

 

Consolidate Profit and Loss Account

 

Unit: NTD/000

 

2013

2012

Operating revenue

 

 

Net sales revenue

 

 

Net sales revenue

12,983,533

15,015,917

Total operating revenue

12,983,533

15,015,917

Operating costs

 

 

Total operating costs

11,998,244

14,424,272

Gross profit (loss) from operations

985,289

591,645

Gross profit (loss) from operations

985,289

591,645

Operating expenses

 

 

Selling expenses

 

 

Total selling expenses

609,532

650,740

Administrative expenses

 

 

Total administrative expenses

195,811

203,723

Total operating expenses

805,343

854,463

Net operating income (loss)

179,946

-262,818

Non-operating income and expenses

 

 

Other income

 

 

Total other income

12,373

11,406

Other gains and losses

 

 

Foreign exchange gains

44,526

21,548

Miscellaneous disbursements

4,794

1,364

Other gains and losses, net

39,732

20,184

Finance costs

 

 

Interest expense

158,668

168,677

Finance costs, net

158,668

168,677

Total non-operating income and expenses

-106,563

-137,087

Profit (loss) from continuing operations before tax

73,383

-399,905

Tax expense (income)

 

 

Total tax expense (income)

35,684

-44,798

Profit (loss) from continuing operations

37,699

-355,107

Profit (loss)

37,699

-355,107

Other comprehensive income

 

 

Exchange differences on translation

111,886

-74,077

Unrealized gains (losses) on valuation of available-for-sale financial assets

565

12,773

Actuarial gains (losses) on defined benefit plans

8,426

2,534

Income tax related to components of other comprehensive income

1,863

0

Other comprehensive income, net

119,014

-58,770

Total comprehensive income

156,713

-413,877

Profit (loss), attributable to:

 

 

Profit (loss), attributable to owners of parent

37,729

-355,088

Profit (loss), attributable to non-controlling interests

-30

-19

Comprehensive income attributable to:

 

 

Comprehensive income, attributable to owners of parent

156,743

-413,859

Comprehensive income, attributable to non-controlling interests

-30

-18

Basic earnings per share

 

 

Basic earnings (loss) per share from continuing operations

0.15

-1.35

Total basic earnings per share

0.15

-1.35

 

Consolidate Cash flow

 

Unit: NTD/000

 

2013

2012

Cash flows from (used in) operating activities, indirect method

 

 

Profit (loss) from continuing operations before tax

73,383

-399,905

Profit (loss) before tax

73,383

-399,905

Adjustments

 

 

Adjustments to reconcile profit (loss)

 

 

Depreciation expense

216,686

243,479

Amortization expense

743

812

Provision (reversal of provision) for bad debt expense

4,671

-2,689

Interest expense

158,668

168,677

Interest income

-3,269

-2,350

Loss (gain) on disposal of property, plan and equipment

2,642

208

Loss (gain) on disposal of investments

-105

-3,881

Reversal of impairment loss on non-financial assets

-107,675

-1,247

Unrealized foreign exchange loss (gain)

-3,331

-2,755

Total adjustments to reconcile profit (loss)

269,030

400,254

Changes in operating assets and liabilities

 

 

Changes in operating assets

 

 

Decrease (increase) in financial assets held for trading

-569

555

Decrease (increase) in notes receivable

-45,749

67,840

Decrease (increase) in accounts receivable

275,829

-26,221

Decrease (increase) in other receivable

-28,349

26,822

Decrease (increase) in inventories

202,084

1,712,938

Decrease (increase) in prepayments

-85,710

92,008

Decrease (increase) in other current assets

3,616

22,280

Total changes in operating assets

321,152

1,896,222

Changes in operating liabilities

 

 

Increase (decrease) in notes payable

-7,383

-8,663

Increase (decrease) in accounts payable

46,950

-6,667

Increase (decrease) in other payable

519

21,695

Increase (decrease) in receipts in advance

31,092

-40,713

Increase (decrease) in other current liabilities

-3,455

-16,819

Increase (decrease) in accrued pension liabilities

-661

-260

Total changes in operating liabilities

67,062

-51,427

Total changes in operating assets and liabilities

388,214

1,844,795

Total adjustments

657,244

2,245,049

Cash inflow (outflow) generated from operations

730,627

1,845,144

Interest received

3,269

2,350

Interest paid

-157,792

-176,651

Income taxes refund (paid)

-19,949

-3,595

Net cash flows from (used in) operating activities

556,155

1,667,248

Cash flows from (used in) investing activities

 

 

Acquisition of available-for-sale financial assets

-11,070

-11,000

Proceeds from disposal of available-for-sale financial assets

10,141

144,001

Acquisition of property, plant and equipment

-96,837

-143,762

Proceeds from disposal of property, plant and equipment

37,180

9

Decrease in refundable deposits

6,125

-10,814

Increase in other financial assets

1,392

-5,792

Increase in prepayments for business facilities

-178,296

-118,214

Net cash flows from (used in) investing activities

-231,365

-145,572

Cash flows from (used in) financing activities

 

 

Increase in short-term loans

401,296

-575,995

Decrease in short-term notes and bills payable

-50,000

100,000

Proceeds from long-term debt

3,200,000

200,000

Repayments of long-term debt

-3,650,493

-933,942

Increase in guarantee deposits received

2,830

246

Payments to acquire treasury shares

0

-151,663

Net cash flows from (used in) financing activities

-96,367

-1,361,354

Effect of exchange rate changes on cash and cash equivalents

14,508

-14,764

Net increase (decrease) in cash and cash equivalents

242,931

145,558

Cash and cash equivalents at beginning of period

1,006,652

861,094

Cash and cash equivalents at end of period

1,249,583

1,006,652

Cash and cash equivalents reported in the statement of financial position

1,249,583

1,006,652

 

Note: Subject did not submit the latest independent financial information to the official registry. We only provide the above consolidate financial information of the subject for your reference, which is based on the IFRSs Accounting System.

 

 

Bankers

 

Subject declined to disclose its bank details stating that it is the confidential information of subject, from other source, we can not obtain it, either.

 

 

Public Record

 

Mortgage

Case Type:

Chattel Mortgage

Certificate No.:

107613

Debtor Name:

Froch Enterprise Co., Ltd

Document Number:

10231319330

Date of Registration:

2013/4/15

 

Lawsuit

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

 

 

Interview Details

 

Name

Ms. Wang

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.39

UK Pound

1

Rs.96.72

Euro

1

Rs.75.80

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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%)

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.