MIRA INFORM REPORT

Report No. :	303545
Report Date :	23.01.2015

IDENTIFICATION DETAILS

Name :	TAITA CHEMICAL CO., LTD.
Registered Office :	12F., No.37 Ji-Hu Rd., Nei-Hu Dist., Taipei
Country :	Taiwan
Financials (as on) :	31.12.2013
Date of Incorporation :	16.04.1960
Com. Reg. No.:	11893409
Legal Form :	Joint Stock Company
Line of Business :	engaged in Manufacturing and sales of chemicals such as ABS, GPPS/HIPS, EPS, Glass Wool & Cubic Printing
No of Employees :	About 370 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 – 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:	Taita Chemical Co., Ltd.
Supplied Name:	Taita Chemical Comapany Ltd.
Trading Address:	12F., No.37 Ji-Hu Rd., Nei-Hu Dist., Taipei, Taiwan (R.O.C.)
Supplied Address:	12F, 37 Ji-hu Road, Nei-hu District, Taipei Postal Code 114
Telephone Number:	+886- 2-2798-3703
Fax Number:	+886-2-2798-3260

Notes: The exact name and address are as above.

Credit Summary

Credit Opinion:

Business connections are permissible.

Company Identification Details

Registered Name:	Taita Chemical Co., Ltd.
Registered Address:	12F., No.37 Ji-Hu Rd., Nei-Hu Dist., Taipei, Taiwan (R.O.C.)
Date of Foundation:	1960-4-16
Registration Number:	11893409
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C
Registered Capital:	NTD 3,276,518,550 (USD 101,572,075) (As of 2015.01, 1 NTD = 0.031 USD)
Paid-up Capital:	NTD 3,276,518,550 (USD 101,572,075)
Legal Representatives:	Yigui Wu
Legal Form:	Joint Stock Company
Principal Activities:	engaged in Manufacturing and sales of chemicals such as ABS, GPPS/HIPS, EPS, Glass Wool & Cubic Printing
Staff:	About 370 Employees
Listed at Stock Exchange:	Yes; stock symbol: 1309
Date of Last Annual Return:	2014-6-25

History

Subject was incorporated on 1960-4-16 with registered number 11893409 as Joint Stock Company in Taiwan.

Subject listed on Taiwan Stock Exchange on 1986-6-27.

Corporate Structure

Factories

1
Address:	No.5, Industrial 1st Rd., Linyuan Dist., Kaohsiung, Taiwan
Date of Foundation:	1982-5-20
Date of Registration:	1990-12-31
Factory Registration Number:	99661848
Factory Manager:	Zhihong Liu
Status:	In production
Date of Last Annual Return:	2014-5-20
Major Products:	184 synthetic resin, plastic and rubber
2
Address:	No. 571, Min Tsu Rd., 17 Tian Liao Li, Toufen Town, Miaoli County,Taiwan
Date of Foundation:	1991-1-25
Date of Registration:	1992-8-5
Factory Registration Number:	99631806
Factory Manager:	Shengpeng Chen
Status:	In production
Date of Last Annual Return:	2007-12-19
Major Products:	161 printing and its assistant 231 glass and its products
3
Address:	No.3, Jianji St., Qianzhen Dist., Kaohsiung City, Taiwan (R.O.C.)
Factory Registration Number:	64000067
Factory Manager:	Qinglong Li
Status:	In production
Date of Last Annual Return:	2014-3-14
Major Products:	184 synthetic resin, plastic and rubber 220 plastic products
4
Name:	Tianjin Plant
Address:	No. 8, Hengshan Road, Chemical Industry Park, Tianjin Economic Technological Development Area. Tianjin, China 300480
Tel	+86-22- 6716-2786
Fax	+86-22-6716-2926
5
Name:	Zhong Shan High Tech. Industry Development Zone Plant
Address:	Yan Jiang Dong Erlu, Zhong Shan, Guang Dong, China 528437
Tel	+86-760-5316689
Fax	+86-760-338-2493

Branches

Name	Taita Chemical Company, Limited Kaohsiung Branch
Address:	No.5, Industrial 1st Rd., Linyuan Dist., Kaohsiung, Taiwan
Registration Number	54388606
Date of Registration	2014-8-26
Manager Name	Baoluo Ying
Tel	+886-2-87516888
Fax	+886-2-26599520

Shareholders

Major Shareholders

Name	Subscription Shares
Lian Ju International Investment Co., Ltd (Liberal Translation)	120,159,750

Shareholder Information:

Registered Name:	Lian Ju International Investment Co., Ltd (Liberal Translation)
Registered Address:	12F., No.37 Ji-Hu Rd., Nei-Hu Dist., Taipei, Taiwan (R.O.C.)
Date of Foundation:	1996-10-18
Registration Number:	97168102
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C
Registered Capital:	NTD 3,866,830,000 (USD 119,871,730) (As of 2015.01, 1 NTD = 0.031 USD)
Paid-up Capital:	NTD 3,866,830,000 (USD 119,871,730)
Legal Representatives:	Yigui Wu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2014-7-15

Management Information

Core Management

Directors

1
Name		Yigui Wu
Position		Board Chairman
2
Name	Fengqiang Miao
Position		Director
3
Name	Hantai Liu
Position		Director
4
Name	Xinhuai Zhou
Position		Director
5
Name	Baoluo Ying
Position		Director
6
Name		Yishao Ke
Position		Director
7
Name	Zhentu Liu
Position		Director
8
Name	Shengquan Wu
Position		Supervisor
9
Name	Zhaoan Wang
Position		Supervisor
5
Name	Baoluo Ying
Position		Manager
Date of Appointment		2008-9-30

Personnel Structure

Total Employees

About 370 Employees

Operation Information

Offices & Factories

	Headquarters
Add	12F., No.37 Ji-Hu Rd., Nei-Hu Dist., Taipei, Taiwan (R.O.C.)

Production Information

l Subject is engaged in manufacturing of chemicals

l Subject has 6 factories in Taiwan, Tianjin and Zhongshan, Guangdong Province, the mainland of China for production.

Purchase Information

l The registered activities of subject:

Business Code	Details
--	Manufacturing and sales of polystyrene and its products.
--	Manufacturing and sales of acrylonitrile, butadiene and ABS.
--	Manufacturing and sales of acrylonitrile and SAN.
--	Manufacturing and sales of glass wool and its related products.
--	Manufacturing and sales of plastic raw materials.
E303020	Project for controlling noise and vibration.
E801010	Upholstery industry.
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

l It is introduced that subject purchases its raw materials and etc both at home and abroad.

Sales Information

l Subject is engaged in sale of chemicals

l The major products include ABS, GPPS/HIPS, EPS, Glass Wool & Cubic Printing

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

l Subject’s major customers are manufacturers of daily supplies, electronic products, electrical products and etc.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

1. Domestic Purchase

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

2. Import

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

Sales

1. Domestic Markets

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

2. Export

Product	Chemicals and etc.
Selling Terms	L/C, T/T and etc

Balance Sheet

Unit: NTD/000

	2013-12-31	2012-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	1,236,102	661,217
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	287,133	430,571
Current bond investment without active market
Current bond investment without active market, net	270,897	269,135
Notes receivable, net
Notes receivable, net	2,018,228	1,726,585
Accounts receivable, net
Accounts receivable, net	1,796,479	1,363,093
Other receivables
Other receivables, net	85,217	80,187
Other receivables due from related parties
Other receivables due from related parties, net	3,937	4,968
Inventories
Total inventories	2,779,319	1,773,679
Prepayments
Total prepayments	157,848	137,547
Other current assets
Total other current assets	920	8,499
Total current assets	8,636,080	6,455,481
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	304,670	341,230
Non-current financial assets at cost
Non-current financial assets at cost, net	10,653	15,670
Investments accounted for using equity method
Investments accounted for using equity method, net	504,896	488,447
Property, plant and equipment
Total property, plant and equipment	2,614,121	2,167,038
Investment property, net
Investment property, net	108,178	108,178
Intangible assets
Total intangible assets	9,725	8,222
Deferred tax assets	164,406	149,163
Other non-current assets
Long-term prepaid rents	45,134	43,916
Other non-current assets, others
Total other non-current assets, others	2,588	10,070
Total other non-current assets	47,722	53,986
Total non-current assets	3,764,371	3,331,934
Total assets	12,400,451	9,787,415
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	3,682,248	2,481,298
Short-term notes and bills payable
Total short-term notes and bills payable	399,831	199,954
Current financial liabilities at fair value through profit or loss
Total current financial liabilities at fair value through profit or loss	186	1
Notes payable
Total notes payable	61,693	22,870
Accounts payable
Total accounts payable	2,088,978	1,166,788
Accounts payable to related parties
Total accounts payable to related parties	1,508	1,092
Other payables
Total other payables	232,613	205,439
Other payables to related parties	23,797	26,989
Current tax liabilities	957	957
Current provisions
Total current provisions	2,164	3,442
Other current liabilities
Long-term liabilities, current portion
Total long-term liabilities, current portion	0	499,734
Other current liabilities, others	25,783	9,587
Total other current liabilities	25,783	509,321
Total current liabilities	6,519,758	4,618,151
Non-current liabilities
Long-term borrowings
Total long-term borrowings	1,000,000	400,000
Deferred tax liabilities
Total deferred tax liabilities	186,906	166,468
Other non-current liabilities
Accrued pension liabilities	593,544	571,172
Other non-current liabilities, others	8,050	4,637
Total other non-current liabilities	601,594	575,809
Total non-current liabilities	1,788,500	1,142,277
Total liabilities	8,308,258	5,760,428
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	3,276,518	3,276,518
Total capital stock	3,276,518	3,276,518
Capital surplus
Total capital surplus	493	536
Retained earnings
Legal reserve	95,436	95,436
Special reserve	308,061	0
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	119,177	428,129
Total retained earnings	522,674	523,565
Other equity interest
Total other equity interest	292,508	226,368
Total equity attributable to owners of parent	4,092,193	4,026,987
Total equity	4,092,193	4,026,987
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	2014
Operating revenue
Net sales revenue
Net sales revenue	21,438,961	18,633,595
Total operating revenue	21,438,961	18,633,595
Operating costs
Cost of sales
Total cost of sales	20,930,084	17,967,789
Total operating costs	20,930,084	17,967,789
Gross profit (loss) from operations	508,877	665,806
Gross profit (loss) from operations	508,877	665,806
Operating expenses
Selling expenses
Total selling expenses	477,683	489,647
Administrative expenses
Total administrative expenses	179,333	228,347
Research and development expenses
Total research and development expenses	23,209	25,572
Total operating expenses	680,225	743,566
Net operating income (loss)	-171,348	-77,760
Non-operating income and expenses
Other income
Total other income	101,317	88,757
Other gains and losses
Other gains and losses, net	109,900	-16,387
Finance costs
Interest expense	57,197	60,951
Finance costs, net	57,197	60,951
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	32,202	27,636
Total non-operating income and expenses	186,222	39,055
Profit (loss) from continuing operations before tax	14,874	-38,705
Tax expense (income)
Total tax expense (income)	-2,509	-1,040
Profit (loss) from continuing operations	17,383	-37,665
Profit (loss)	17,383	-37,665
Other comprehensive income
Exchange differences on translation	115,717	-64,567
Unrealised gains (losses) on valuation of available-for-sale financial assets	-36,560	54,607
Actuarial gains (losses) on defined benefit plans	-20,684	-8,977
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	5,689	375
Income tax related to components of other comprehensive income	16,296	-12,642
Other comprehensive income, net	47,866	-5,920
Total comprehensive income	65,249	-43,585
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	17,383	-37,665
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	65,249	-43,585
Basic earnings per share
Total basic earnings per share	0.05	-0.11
Diluted earnings per share
Total diluted earnings per share	0.05	-0.11

Cash Flows

Unit: NTD/000

	2013	2012
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	14,874	-38,705
Profit (loss) before tax	14,874	-38,705
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	170,457	174,231
Amortization expense	185	247
Provision (reversal of provision) for bad debt expense	-3,556	56,053
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	-29,416	-63,751
Interest expense	57,197	60,951
Interest income	-34,776	-34,417
Dividend income	-15,832	-14,219
Share of loss (profit) of associates and joint ventures accounted for using equity method	-32,202	-27,636
Loss (gain) on disposal of property, plan and equipment	-84	5,211
Loss (gain) on disposal of investments	313	-2,662
Impairment loss on financial assets	0	38,265
Impairment loss on non-financial assets	47,043	0
Reversal of impairment loss on non-financial assets	0	-40,019
Unrealized foreign exchange loss (gain)	-13,785	-10,191
Other adjustments to reconcile profit (loss)	1,307	1,278
Total adjustments to reconcile profit (loss)	146,851	143,341
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	173,039	606,739
Decrease (increase) in notes receivable	-291,643	-341,665
Decrease (increase) in accounts receivable	-441,740	-625
Decrease (increase) in other receivable	-11,782	-22,086
Decrease (increase) in other receivable due from related parties	1,031	-599
Decrease (increase) in inventories	-1,054,074	150,459
Decrease (increase) in prepayments	-20,301	50,796
Decrease (increase) in other current assets	7,579	41,826
Total changes in operating assets	-1,637,891	484,845
Changes in operating liabilities
Increase (decrease) in notes payable	38,823	-15,353
Increase (decrease) in accounts payable	922,190	133,881
Increase (decrease) in accounts payable to related parties	416	457
Increase (decrease) in other payable	18,700	-30,352
Increase (decrease) in other payable to related parties	-3,192	7,362
Increase (decrease) in provisions	11,719	11,894
Increase (decrease) in other current liabilities	16,196	-6,187
Increase (decrease) in accrued pension liabilities	1,688	1,374
Total changes in operating liabilities	1,006,540	103,076
Total changes in operating assets and liabilities	-631,351	587,921
Total adjustments	-484,500	731,262
Cash inflow (outflow) generated from operations	-469,626	692,557
Interest received	35,034	34,955
Interest paid	-55,351	-61,350
Income taxes refund (paid)	-640	-25,098
Net cash flows from (used in) operating activities	-490,583	641,064
Cash flows from (used in) investing activities
Proceeds from disposal of available-for-sale financial assets	0	13,398
Acquisition of bond investments without active market	-1,762	-17,417
Proceeds from capital reduction of financial assets at cost	5,309	1,750
Proceeds from disposal of investments accounted for using equity method	19,785	0
Acquisition of property, plant and equipment	-565,577	-494,603
Proceeds from disposal of property, plant and equipment	445	771
Acquisition of intangible assets	-1,503	-8,222
Increase in other non-current assets	-194	0
Decrease in other non-current assets	0	1,031
Dividends received	19,200	16,633
Net cash flows from (used in) investing activities	-524,297	-486,659
Cash flows from (used in) financing activities
Increase in short-term loans	1,214,735	0
Decrease in short-term loans	0	-54,537
Increase in short-term notes and bills payable	200,000	0
Decrease in short-term notes and bills payable	0	-100,000
Proceeds from long-term debt	4,400,000	1,000,000
Repayments of long-term debt	-4,300,000	-1,129,838
Increase in other non-current liabilities	3,413	0
Decrease in other non-current liabilities	0	-1,070
Cash dividends paid	0	-62,402
Net cash flows from (used in) financing activities	1,518,148	-347,847
Effect of exchange rate changes on cash and cash equivalents	71,617	-34,196
Net increase (decrease) in cash and cash equivalents	574,885	-227,638
Cash and cash equivalents at beginning of period	661,217	888,855
Cash and cash equivalents at end of period	1,236,102	661,217
Cash and cash equivalents reported in the statement of financial position	1,236,102	661,2

Note: Subject didn’t submit its individual financial information; we obtained its consolidated financials as follows for reference.

The above financial figures are based on the IFRSs Accounting System.

Bankers

Subject declined to disclose its bank details; from other source we could not obtain the relevant information, either.

Public Record

Mortgage

No chattel mortgage record of subject has been found within the recent 3 months.

Lawsuit

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

Special Note

Interview Details

Department

Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.69
UK Pound	1	Rs.93.33
Euro	1	Rs.71.49

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.