MIRA INFORM REPORT

Report No. :	333797
Report Date :	27.07.2015

IDENTIFICATION DETAILS

Name :	FORMOSA PLASTICS CORPORATION
Registered Office :	No.100, Shuiguan Rd., Renwu Dist., Kaohsiung City 81465
Country :	Taiwan
Financials (as on) :	30.09.2014
Date of Incorporation :	05.11.1954
Com. Reg. No.:	75708007
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Sales of Chemical Products.
No. of Employees :	About 4,400 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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:	FORMOSA PLASTICS CORPORATION
Supplied Name:	FORMOSA PLASTICS CORPORATION
Trading Address:	201 Tung Hwa North Road Taipei, Taiwan, R. O. C.
Supplied Address:	201 Tung Hwa North Road Taipei
Telephone Number:	+886-2-2712-2211
Fax Number:	+886-2-2717-8108
E-mail:	formosa@fpc.com.tw
Website:	www.fpc.com.tw

Notes: The exact name and address are as above.

Company Identification details

Registered Name:	Formosa Plastics Corporation
Registered Address:	No.100, Shuiguan Rd., Renwu Dist., Kaohsiung City 81465, Taiwan (R.O.C.)
Date of Foundation:	1954-11-5
Registration Number:	75708007
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 63,657,407,810 (USD 2,107,060,199) (As of 2015.02, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 63,657,407,810 (USD 2,107,060,199)
Legal Representatives:	Zhicun Li
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sales of chemical products, etc.
Staff:	About 4,400 Employees
Listed at Stock Exchange:	Yes; Stock Code: TPE:1301
Date of Last Annual Return:	2014-8-21

History

Subject was incorporated on 1954-11-5 with registered number 75708007 as Joint Stock Company in Taiwan.

Subject listed on Taiwan Stock Exchange on 1964-7-24 with the stock code 1301.

Shareholders

Major Shareholders

Name	Subscription Shares
Zhicun Li	1,262,541
Formosa Chemicals & Fibre Corporation	486,978,692
Nan Ya Plastics Corp.	294,793,105
Formosa Petrochemical Corporation	131,460,365
Xuehong Wang	7,369,380
Hong Tong Co., Ltd. (Literal Translation)	11,461
Zongjing Huang	86,307
Zhenrong Lin	17,957
Zifeng Zhang	3,338
Wenqin Xiao	6,685
Chang Gung Medical Foundation	601,011,035
Minting He	27,824,363
Guoxiong Wu	134,537

Shareholder Information

1
Registered Name:	Formosa Chemicals & Fibre Corp.
Registered Address:	No. 359, Chungshan Road, Sec. 3, Chang Hwa City, Chang Hwa County, Taiwan, R.O.C.
Date of Foundation:	1965-3-5
Registration Number:	58650902
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 58,611,862,910 (USD 1,940,052,662) (As of 2015.02, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 58,611,862,910 (USD 1,940,052,662)
Legal Representatives:	Wenyuan Wang
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2014-11-21
2
Registered Name:	Nan Ya Plastics Corporation
Registered Address:	No.101, Shuiguan Rd., Renwu Dist., Kaohsiung City 81465, Taiwan (R.O.C.)
Date of Foundation:	1958-8-22
Registration Number:	75370905
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 79,308,215,890 (USD 2,625,101,946) (As of 2015.02, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 79,308,215,890 (USD 2,625,101,946)
Legal Representatives:	Jiazhao Wu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2014-10-14
3
Registered Name:	Formosa Petrochemical Corporation
Registered Address:	No.1-1,Formosa Plastic Group Industrial Zone, Mai-Liao Township, Yunlin County, Taiwan, R. O. C.
Date of Foundation:	1992-4-6
Registration Number:	86522210
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 95,259,596,520 (USD 3,153,092,645) (As of 2015.02, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 95,259,596,520 (USD 3,153,092,645)
Legal Representatives:	Baolang Chen
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2014-11-21
4
Registered Name:	Hong Tong Co., Ltd. (Literal Translation)
Registered Address:	4F, No. 38, 2 Sec, Nanjingdong Road, Zhongshan District, Taipei
Date of Foundation:	2004-1-15
Registration Number:	80664633
Registry:	Taipei City Government
Registered Capital:	NTD 5,000,000 (USD 165,500) (As of 2015.02, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 5,000,000 (USD 165,500)
Legal Representatives:	Yongxiang Zhang
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2013-11-29

Corporate Structure

Branches

1
Name	Mailiao Branch
Address	1-1, Formosa Plastics Group Industrial zone, Mailiao, Yunlin County, Taiwan
Telephone Number	+886-5-681-2345
Registration Number	84896537
Date of Registration	1994-9-9
Status	Live Company
Manager Name	Jianrong Lu
Date of Last Annual Return	2014-7-31
2
Name	Hsinkang Branch
Address	No.3, Chung-yang Industrial park, Hsinkang Hsiang, Chiayi-Hsien, Taiwan
Telephone Number	+886-5-377-2111
Registration Number	84708802
Date of Registration	1994-3-7
Status	Live Company
Manager Name	Jianrong Lu
Date of Last Annual Return	2009-3-25
3
Name	Yilan Branch
Address	201, Tungfu Road, Tungshan Village, Yilan County, Taiwan
Telephone Number	+886-39-59-1134
Registration Number	84708795
Date of Registration	1994-3-7
Status	Live Company
Manager Name	Zhenfeng Lin
Date of Last Annual Return	2014-1-3

Factories

1
Address:	No.39, Zhongshn 3^rd Road, Qianzhen Dist., Kaohsiung City, Taiwan (R.O.C.)
Date of Registration:	1969-7-10
Factory Registration Number:	64000008
Factory Manager:	Qinglian Huang
Status:	In Production
Date of Last Annual Return:	2011-5-23
Major Products:	184 synthetic resin, plastic and rubber 220 plastic items
2
Name:	The 4^th Factory
Address:	No.5, Jianji St., Qianzhen Dist., Kaohsiung City, Taiwan (R.O.C.)
Date of Foundation:	1991-3-22
Date of Registration:	1991-12-18
Factory Registration Number:	64004717
Factory Manager:	Qinglian Huang
Status:	In Production
Date of Last Annual Return:	2014-10-26
Major Products:	199 other chemical products
3
Name:	Dongshan Factory
Address:	No.201, Dongfu Rd., Dongshan Township, Yilan County, Taiwan (R.O.C.)
Date of Foundation:	1969-1-1
Date of Registration:	1969-1-1
Factory Registration Number:	99620361
Factory Manager:	Zhenfeng Lin
Status:	In Production
Date of Last Annual Return:	2014-11-19
Major Products:	232 refractory, clay construction materials and ceramic products 089 other food (dietary supplement, calcium oxide)

Management Information

Core Management

Directors

1
Name	Zhicun Li
Position	Board Chairman
2
Name	Wenyuan Wang
Position	Executive Director
3
Name	Ruihua Wang
Position	Executive Director
4
Name	Wenchao Wang
Position	Executive Director
5
Name	Qilin Wei
Position	Executive Director (Independent Director)
6
Name	Deshan Wang
Position	Independent Director
7
Name	Qingji Wu
Position	Independent Director
8
Name	Xuehong Wang
Position	Director
9
Name	Yurui Zhang
Position	Director
10
Name	Jiannan Lin
Position	Director & Manager
Appointment Date of Manager	2005-8-26
11
Name	Zongjing Huang
Position	Director
12
Name	Zhenrong Lin
Position	Director & Manager
Appointment Date of Manager	2007-3-23
13
Name	Zifeng Zhang
Position	Director
14
Name	Wenqin Xiao
Position	Director & Manager
Appointment Date of Manager	2009-3-17
15
Name	Chengzhong Cheng
Position	Director & Manager
Appointment Date of Manager	2009-6-5
16
Name	Qiufeng He
Position	Supervisor
17
Name	Minting He
Position	Supervisor
18
Name	Guoxiong Wu
Position	Supervisor
19
Name	Tianxiang Li
Position	Manager
Date of Appointment	2010-12-24
20
Name	Guangming Chen
Position	Manager
Date of Appointment	2011-6-20
21
Name	Jianshan Yang
Position	Manager
Date of Appointment	2013-3-25
22
Name	Jinlong Huang
Position	Manager
Date of Appointment	2013-3-25
23
Name	Qinglian Huang
Position	Manager
Date of Appointment	2014-8-11
24
Name	Dongqin Ji
Position	Manager
Date of Appointment	2014-8-11

Personnel Structure

Total Employees

About 4,400 Employees

Operation Information

Offices & Factories

	Headquarters
Add	201 Tung Hwa North Road Taipei, Taiwan, R. O. C.

Production Information

· Subject is engaged in manufacturing of chemicals, etc.

· Subject has factories Taiwan for production.

· Subject obtained the certifications of ISO 14000, ISO 14001 and OHSAS 18001.

We obtained some of subject’s annual production capacity information as follows for reference.

Product	Annual Production Capacity
PVC resins	1,305,000 MT
VCM	1,580,000 MT
MBS	19,700 MT
PA	25,000 MT
HDPE	566,000 MT
EVA/LDPE	240,000 MT
LLDPE	264,000 MT
Acrylic Fiber	43,800 MT
Acrylic Acid & Esters	268,000 MT
MMA	98,000 MT
MTBE	174,000 MT

Purchase Information

The registered activities of subject:

Business Code	Details
B202010	Industry of non-metal.
C199990	Manufacturing of undivided other food.
C801010	Industry of basic chemistry.
C801020	Manufacturing of petrochemical materials.
C801100	Manufacturing of synthetic resin and plastic cement.
C801120	Manufacturing of artificial fiber.
C801990	Manufacturing of other chemical materials.
C802120	Manufacturing of industrial additives.
C802170	Manufacturing of toxic chemicals.
C805020	Manufacturing of plastic films and bags.
C901070	Manufacturing of stone products.
CB01010	Manufacturing of machinery.
CC01080	Manufacturing of electronic components.
D101050	Manufacturing of cogeneration industry.
D301010	Operating of tap water.
D401010	Heat supply industry.
E603050	Automatic control equipment engineering industry.
H701010	Development, renting and sales of residence and building.
H701040	Development of specific area.
ID01010	Certifying of instruments for measuring distance, area and weight.
IZ99990	Servicing of other trading business.
J101050	Servicing of environment monitoring.
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

The raw materials for production are purchased from both home and abroad and we obtained some detail information as follows for reference.

Raw Material	Original Area
Ethylene	Taiwan, Japan
VCM	Japan, Taiwan
EDC	Taiwan
Salt	Japan
AN	Taiwan
Propylene	Taiwan
Dust Coal	Taiwan, Indonesia

· It is introduced that subject imports technologies from Japan.

Sales Information

· Subject is mainly engaged in sales of chemical materials.

· Subject is divided into 8 major departments which include plastic, acrylic fiber, carbide, plastic processing, polyolefin, chemicals, electronics and polypropylene.

· It is introduced that subject’s selling territory includes China, America, Middle East, South East Asia, Europe, Australia and Japan, etc.

· It is introduced that subject cooperates with Fujitsu Hitachi Plasma Display Corporation and AU Optronics Corporation, etc.

Major Products

Plastic materials	PVC resins, VCM, caustic soda, hydrochloric acid, MBS, HDPE, EVA/LDPE and LLDPE.
Plastic products	Shopping bag, garbage bag, breathable film.
Calcium carbide products	Calcium carbide, calcium carbonate, Optimal calcium, quicklime and Light calcium glue.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

PURCHASE

Domestic Purchase

Product	Raw materials
Payment Terms	T/T, Credit Sale

Foreign Purchase

Product	Raw materials
Payment Terms	T/T

SALES

Domestic Markets

Product	Chemicals
Selling Terms	T/T, Credit Sale

Export

Product	Chemicals
Selling Terms	L/C, T/T

Balance Sheet

Unit: NTD/000

Consolidated	2014-9-30	2013-9-30
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	6,904,850	9,681,259
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	0	0
Current available-for-sale financial assets
Current available-for-sale financial assets, net	67,478,498	65,334,027
Notes receivable, net
Notes receivable, net	1,299,835	719,405
Accounts receivable, net
Accounts receivable, net	6,751,061	6,942,317
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	5,081,899	4,134,672
Other receivables
Other receivables, net	974,856	1,440,873
Other receivables due from related parties
Other receivables due from related parties, net	30,292,328	20,754,650
Inventories
Total inventories	22,296,652	21,305,219
Non-current assets classified as held for sale, net
Non-current assets classified as held for sale, net	0	0
Other current assets
Total other current assets	5,780,854	4,963,356
Total current assets	146,860,833	135,275,778
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	21,094,842	15,703,175
Non-current financial assets at cost
Non-current financial assets at cost, net	2,437,768	2,416,168
Investments accounted for using equity method
Investments accounted for using equity method, net	158,660,750	147,665,183
Property, plant and equipment
Total property, plant and equipment	83,005,234	79,103,953
Intangible assets
Total intangible assets	593,677	646,661
Deferred tax assets	1,607,298	1,700,275
Other non-current assets
Total other non-current assets	13,350,613	14,603,535
Total non-current assets	280,750,182	261,838,950
Total assets	427,611,015	397,114,728
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	22,150,049	19,992,213
Short-term notes and bills payable
Total short-term notes and bills payable	0	6,498,733
Accounts payable
Total accounts payable	2,019,812	1,844,499
Accounts payable to related parties
Total accounts payable to related parties	8,688,509	10,904,352
Other payables
Total other payables	1,249,403	725,396
Other payables to related parties	837,653	1,864,407
Other current liabilities
Long-term liabilities, current portion
Bonds payable, current portion	2,997,868	8,994,801
Long-term borrowings, current portion	2,130,002	4,610,331
Total long-term liabilities, current portion	5,127,870	13,605,132
Other current liabilities, others	11,587,339	10,973,416
Total other current liabilities	16,715,209	24,578,548
Total current liabilities	51,660,635	66,408,148
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
Bonds payable
Total bonds payable	56,900,790	45,409,811
Long-term borrowings
Total long-term borrowings	26,796,029	17,950,302
Deferred tax liabilities
Total deferred tax liabilities	8,712,571	6,584,648
Other non-current liabilities
Accrued pension liabilities	8,644,562	9,084,288
Other non-current liabilities, others	393,742	440,967
Total other non-current liabilities	9,038,304	9,525,255
Total non-current liabilities	101,447,694	79,470,016
Total liabilities	153,108,329	145,878,164
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	63,657,408	63,657,408
Share capital awaiting retirement	0	0
Total capital stock	63,657,408	63,657,408
Capital surplus
Total capital surplus	11,277,996	11,227,405
Retained earnings
Legal reserve	43,339,205	41,267,621
Special reserve	39,078,218	33,508,131
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	47,309,223	42,921,976
Total retained earnings	129,726,646	117,697,728
Other equity interest
Total other equity interest	69,840,636	58,654,023
Total equity attributable to owners of parent	274,502,686	251,236,564
Total equity	274,502,686	251,236,564
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
Total operating revenue	166,359,729	159,479,008
Operating costs
Total operating costs	154,269,515	148,436,393
Gross profit (loss) from operations	12,090,214	11,042,615
Gross profit (loss) from operations	12,090,214	11,042,615
Operating expenses
Selling expenses
Total selling expenses	3,894,942	4,226,280
Administrative expenses
Total administrative expenses	3,597,258	3,489,597
Research and development expenses
Total research and development expenses	675,489	651,374
Total operating expenses	8,167,689	8,367,251
Net operating income (loss)	3,922,525	2,675,364
Non-operating income and expenses
Other income
Total other income	2,798,323	1,232,520
Other gains and losses
Other gains and losses, net	3,233,209	1,453,480
Finance costs
Finance costs, net	1,168,415	1,101,852
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	12,071,089	12,520,492
Total non-operating income and expenses	16,934,206	14,104,640
Profit (loss) from continuing operations before tax	20,856,731	16,780,004
Tax expense (income)
Total tax expense (income)	2,361,823	1,693,080
Profit (loss) from continuing operations	18,494,908	15,086,924
Profit (loss)	18,494,908	15,086,924
Other comprehensive income
Exchange differences on translation	1,174,044	1,714,031
Unrealised gains (losses) on valuation of available-for-sale financial assets	3,032,245	13,861,073
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	1,627,137	2,901,785
Income tax related to components of other comprehensive income	169,419	133,990
Other comprehensive income, net	5,664,007	18,342,899
Total comprehensive income	24,158,915	33,429,823
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	18,494,908	15,086,924
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	24,158,915	33,429,823
Basic earnings per share
Basic earnings (loss) per share from continuing operations	2.91	2.37
Total basic earnings per share	2.91	2.37

Cash Flow

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	20,856,731	16,780,004
Profit (loss) before tax	20,856,731	16,780,004
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	5,669,158	6,212,383
Amortization expense	427,832	488,815
Provision (reversal of provision) for bad debt expense	-1,732	340
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	0	-5,866
Interest expense	1,168,415	1,101,852
Interest income	-364,582	-533,633
Share of loss (profit) of associates and joint ventures accounted for using equity method	-12,071,089	-12,520,492
Loss (gain) on disposal of property, plan and equipment	-21,999	-133,403
Property, plan and equipment transferred to expenses	854	249
Loss (gain) on disposal of investments	-1,902	0
Loss (gain) on disposal of investments accounted for using equity method	-2,627,625	0
Unrealized foreign exchange loss (gain)	-214,963	89,156
Other revenue, overdue dividends and compensation of board and directors	-16,058	-7,258
Total adjustments to reconcile profit (loss)	-8,053,691	-5,307,857
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in notes receivable	-240,281	124,253
Decrease (increase) in accounts receivable	2,053,126	-37,579
Decrease (increase) in accounts receivable due from related parties	-449,954	48,725
Decrease (increase) in other receivable	649,913	-211,090
Decrease (increase) in other receivable due from related parties	-3,032,615	-810,513
Decrease (increase) in inventories	-584,461	-369,555
Decrease (increase) in other current assets	-854,396	-1,002,542
Total changes in operating assets	-2,458,668	-2,258,301
Changes in operating liabilities
Increase (decrease) in accounts payable	-2,458,286	-2,041,988
Increase (decrease) in accounts payable to related parties	-4,165,250	953,426
Increase (decrease) in other payable	59,525	-44,970
Increase (decrease) in other payable to related parties	17,068	10,699
Increase (decrease) in other current liabilities	2,495,632	3,714,056
Increase (decrease) in accrued pension liabilities	-289,552	-85,784
Total changes in operating liabilities	-4,340,863	2,505,439
Total changes in operating assets and liabilities	-6,799,531	247,138
Total adjustments	-14,853,222	-5,060,719
Cash inflow (outflow) generated from operations	6,003,509	11,719,285
Interest received	331,729	535,996
Dividends received	8,371,120	2,165,949
Interest paid	-931,189	-951,686
Income taxes refund (paid)	-707,681	-209,960
Net cash flows from (used in) operating activities	13,067,488	13,259,584
Cash flows from (used in) investing activities
Acquisition of available-for-sale financial assets	-2,400,965	0
Proceeds from disposal of available-for-sale financial assets	2,401,902	0
Acquisition of financial assets at cost	-21,600	0
Acquisition of investments accounted for using equity method	-1,177,877	-13,017,413
Proceeds from disposal of investments accounted for using equity method	3,776,928	0
Acquisition of property, plant and equipment	-6,701,506	-9,231,238
Proceeds from disposal of property, plant and equipment	24,090	672,848
Decrease in other receivables due from related parties	-6,075,942	10,169,453
Acquisition of intangible assets	0	-91,159
Decrease in other non-current assets	-696,419	-533,985
Net cash flows from (used in) investing activities	-10,871,389	-12,031,494
Cash flows from (used in) financing activities
Decrease in short-term loans	4,621,856	-1,593,900
Decrease in short-term notes and bills payable	-3,099,844	-1,699,673
Proceeds from issuing bonds	5,984,010	11,470,660
Repayments of bonds	-6,000,000	-6,000,000
Proceeds from long-term debt	24,021,598	5,640,100
Repayments of long-term debt	-16,306,859	-3,444,943
Increase in other payables to related parties	-61,879	1,159,685
Increase in other non-current liabilities	-30,028	10,890
Cash dividends paid	-12,097,798	-7,418,468
Net cash flows from (used in) financing activities	-2,968,944	-1,875,649
Effect of exchange rate changes on cash and cash equivalents	4,818	122,999
Net increase (decrease) in cash and cash equivalents	-768,027	-524,560
Cash and cash equivalents at beginning of period	7,672,877	10,205,819
Cash and cash equivalents at end of period	6,904,850	9,681,259
Cash and cash equivalents reported in the statement of financial position	6,904,850	9,681,259

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:

Mega International Commercial Bank Co., Ltd

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.

Interview Details

Name:	Mr. Chen
Department:	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.89
UK Pound	1	Rs.99.10
Euro	1	Rs.70.12

INFORMATION DETAILS

Report Prepared by :

TPT

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.