MIRA INFORM REPORT

Report No. :	310527
Report Date :	09.03.2015

IDENTIFICATION DETAILS

Name :	YC INOX CO., LTD.
Formerly Known As :	YEUN CHYANG INDUSTRIAL CO., LTD.
Registered Office :	No.270, Sec.4, Jungshan Rd., Shijou Shiang, Chang-Hwa Hsien, R.O.C.
Country :	Taiwan
Financials (as on) :	30.09.2014 (Consolidated)
Date of Incorporation :	31.01.1973
Com. Reg. No.:	59068700
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Sales of Stainless Steel Products
No. of Employees :	About 860 Employees (Group)

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
Hong Kong	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

HONGKONG - ECONOMIC OVERVIEW

Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 12% of total system deposits in Hong Kong by the end of 2013. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's total trade by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 34.9 million in 2012, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies.

Source : CIA

Contact Points

Company Name:	YC Inox Co., Ltd.
Former Name:	Yeun Chyang Industrial Co., Ltd.
Supplied Name:	YC INOX CO., LTD
Trading Address:	No.270, Sec.4, Jungshan Rd., Shijou Shiang, Chang-Hwa Hsien, Taiwan, R.O.C.
Supplied Address:	NO. 270, SEC. 4, JUNGSHAN RD. SHIJOU SHIANG, CHANG HWA, TAIWAN
Telephone Number:	+886-4-889-9666
Fax Number:	+886-4-889-9783
E-mail:	ys@ycinox.com

Note: The exact name and address are as above.

Company Identification Details

Registered Name:	YC Inox Co., Ltd.
Registered Address:	No.270, Sec.4, Jungshan Rd., Shijou Shiang, Chang-Hwa Hsien, Taiwan, R.O.C.
Date of Foundation:	1973-1-31
Registration Number:	59068700
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 4,600,000,000 (USD 146,280,000) (As of 2015.3, 1 NTD = 0.0318 USD)
Paid-up Capital:	NTD 3,701,188,570 (USD 117,697,797)
Legal Representatives:	Qingke Zhang
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sales of stainless steel products
Staff:	About 860 Employees (Group)
Listed at Stock Exchange:	Yes, Stock Code 2034
Date of Last Annual Return:	2014-6-26

History

Subject was incorporated on 1973-1-31 with registered number 59068700 as Joint Stock Company in Taiwan.

Subject listed on Taiwan Stock Exchange on 2001-9-17.

Change of Name

Former English Name:	Yeun Chyang Industrial Co., Ltd.
Current English Name:	YC Inox Co., Ltd.

Corporate Structure

Factory

1
Name:	Xizhou Plant
Address:	No. 270, Sec. 4, Jhongshan Rd., Jiumei Village, Xizhou Township, Zhanghua County, Taiwan (R.O.C)
Date of Foundation:	2000-2-22
Date of Registration:	2000-11-13
Factory Registration Number:	99646018
Factory Manager:	Qingke Zhang
Status:	In Production
Date of Last Annual Return:	2013-3-14
Major Products:	241 Steel
2
Address:	No. 33, Sec. 4, Yuanlu Rd., Jiuguan Village, Puxin Township, Zhanghua County, Taiwan (R.O.C)
Date of Foundation:	1969-1-1
Date of Registration:	1974-6-26
Factory Registration Number:	99646023
Factory Manager:	Qingke Zhang
Status:	In Production
Date of Last Annual Return:	2001-12-5
Major Products:	241 Steel 254 Metal processing 291 Metalworking Machinery 293 General Machinery 312 Locomotives and parts 313 Bicycles and parts
3
Name:	Douliu Plant
Address:	No. 29, Kejia Rd., Jiuan Li, Douliu City, Yunlin County, Taiwan (R.O.C)
Date of Registration:	2008-2-1
Factory Registration Number:	99709432
Factory Manager:	Qingke Zhang
Status:	In Production
Date of Last Annual Return:	2013-12-18
Major Products:	259 Other metal products

Offices

1
Name:	Taipei Office
Address:	4F.-2, No.88, Jhouzih St., Neihu District, Taipei City 114, Taiwan
Telephone Number:	+886-2-2657-5999
Fax Number:	+886-2-2657-3666
2
Name:	Kaohsiung Office
Address:	2F., No. 293, Jhongjheng Rd., Niaosong , Kaohsiung, Taiwan
Telephone Number:	+886-7-733-5568
Fax Number:	+886-7-733-5633

Shareholders

Major Shareholders

Name	Subscription Shares
Taiqiang Investment Co., Ltd (Literal Translation)	50,031,539
Jinyu Zhang
4,332,935
Lielin Zhan	360,000
Liangzhi Zhang	219,017
Songlin Shi	1,958,000
Mingxin Xu	116,743
Tianshang Xie	3,583,098
Zuoxiang Xu	50,000

Shareholder Information:

Registered Name:	Taiqiang Investment Co., Ltd (Literal Translation)
Registered Address:	No. 122, Yuanlu Rd., Yuanlin Town, Zhanghua County, Taiwan
Date of Foundation:	1996-10-24
Registration Number:	97168378
Registry:	MOEA Central Office
Registered Capital:	NTD 300,000,000 (USD 9,540,000) (As of 2015.3, 1 NTD = 0.0318 USD)
Paid-up Capital:	NTD 80,000,000 (USD 2,544,000)
Legal Representatives:	Qingke Zhang
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2013-12-2

Management Information

Core Management

Directors

1
Name		Qingke Zhang
Position		Board Chairman
2
Name	Jinpeng Zhang
Position		Director
3
Name	Jinyu Zhang
Position		Director & Manager
Date of Manager Appointment		1999-10-25
4
Name	Lielin Zhan
Position		Director
5
Name	Liangzhi Zhang
Position		Director
6
Name	Songlin Shi
Position		Director
7
Name	Mingxin Xu
Position		Director
8
Name	Tianshang Xie
Position		Supervisor
9
Name	Zuoxiang Xu
Position		Supervisor

Personnel Structure

Total Employees

About 860 Employees (Group)

Operation Information

	Headquarters
Add	No.270, Sec.4, Jungshan Rd., Shijou Shiang, Chang-Hwa Hsien, Taiwan, R.O.C.

Production Information

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

· It is introduced that subject has three factories (total area is about 170,000 square meters) in Taiwan for production.

· Subject obtained the certifications of CE MARK, JIS MARK, ISO 14001, OHSAS 18001, ISO 9002 and TOSHMS, etc.

Purchase Information

· The registered activities of subject:

Business Code	Details
CA01050	Steel secondary processing industry
CA03010	Heat treatment industry
CA04010	Surface treatment
E599010	Piping engineering
F106010	Wholesales of hardware
F401010	International Trading Business
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

· Subject purchases steel materials from both home and abroad.

Sales Information

· Subject is engaged in sale of stainless steel products.

· Subject’s major products are cold/hot rolled steel, stainless steel angle iron, stainless steel flat iron, stainless steel tanks iron, boiler heat exchanger tubes, stainless steel sheet, stainless steel coil, stainless steel welded pipe and so on.

· Subject’s products are applied in industries such as chemical, construction, food, machinery, environment protection, fire fighting and telecommunication, as well as the manufacture of doors, windows and shelves, etc.

· Subject’s sales regions include domestic market, the mainland of China, Southeast Asia, America, Africa, Middle East and Australia, etc.

· Subject’s major customers are Pinacle Stainless Steel Inc., Chung Hsin Electric & Machinery Mfg. Corp. Ltd., CTCI Corporation and Toyota Argentina SA., etc.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

PURCHASE

Domestic Purchase

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

Import

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

SALES

Domestic Markets

Product	Stainless steel products
Selling Terms	T/T, Cash, etc.

Export

Product	Stainless steel products
Selling Terms	L/C, T/T, etc.

Balance Sheet

Unit: NTD/000

Consolidated	2014-9-30
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	646,139
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	89,159
Current available-for-sale financial assets
Current available-for-sale financial assets, net	38,565
Notes receivable, net
Notes receivable, net	45,573
Accounts receivable, net
Accounts receivable, net	2,882,368
Other receivables
Other receivables, net	552,092
Current tax assets
Total current tax assets	25,919
Inventories
Inventories, manufacturing business
Inventories, manufacturing business, net	6,237,132
Total inventories	6,237,132
Prepayments
Total prepayments	24,787
Other current assets
Total other current assets	800
Total current assets	10,542,534
Non-current assets
Non-current financial assets at cost
Non-current financial assets at cost, net	355,570
Property, plant and equipment
Total property, plant and equipment	2,559,672
Deferred tax assets	39,779
Other non-current assets
Prepayments for business facilities	90,284
Guarantee deposits paid	138
Other non-current assets, others
Other non-current assets, others	33,853
Total other non-current assets, others	33,853
Total other non-current assets	124,275
Total non-current assets	3,079,296
Total assets	13,621,830
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	3,911,258
Short-term notes and bills payable
Total short-term notes and bills payable	199,785
Notes payable
Total notes payable	260
Accounts payable
Total accounts payable	315,584
Other payables
Total other payables	276,391
Current tax liabilities	78,520
Other current liabilities
Advance receipts
Total advance receipts	343,574
Long-term liabilities, current portion
Long-term borrowings, current portion	118,841
Total long-term liabilities, current portion	118,841
Other current liabilities, others	21,620
Total other current liabilities	484,035
Total current liabilities	5,265,833
Non-current liabilities
Long-term borrowings
Total long-term borrowings	1,047,467
Deferred tax liabilities
Total deferred tax liabilities	890
Other non-current liabilities
Accrued pension liabilities	194,928
Guarantee deposits received	3,163
Total other non-current liabilities	198,091
Total non-current liabilities	1,246,448
Total liabilities	6,512,281
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	3,701,189
Total capital stock	3,701,189
Capital surplus
Total capital surplus	1,848,637
Retained earnings
Legal reserve	658,463
Special reserve	0
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	894,347
Total retained earnings	1,552,810
Other equity interest
Total other equity interest	6,913
Treasury shares	0
Total equity attributable to owners of parent	7,109,549
Non-controlling interests	0
Total equity	7,109,549
Number of share capital awaiting retirement	0
Equivalent issue shares of advance receipts for ordinary share	0
Number of shares in entity held by entity and by its subsidiaries	0

Unit: NTD/000

Consolidated	2013-12-31	2012-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	653,578	449,818
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	97,596	67,482
Current available-for-sale financial assets
Current available-for-sale financial assets, net	39,277	40,345
Notes receivable, net
Notes receivable, net	54,667	89,832
Accounts receivable, net
Accounts receivable, net	2,476,120	2,300,684
Other receivables
Other receivables, net	425,308	300,319
Current tax assets
Total current tax assets	25,919	26,034
Inventories
Inventories, manufacturing business
Inventories, manufacturing business, net	4,897,312	4,666,172
Total inventories	4,897,312	4,666,172
Prepayments
Total prepayments	58,671	32,990
Other current assets
Total other current assets	800	800
Total current assets	8,729,248	7,974,476
Non-current assets
Non-current financial assets at cost
Non-current financial assets at cost, net	355,570	276,958
Property, plant and equipment
Total property, plant and equipment	2,466,197	2,460,629
Deferred tax assets	45,994	46,517
Other non-current assets
Prepayments for business facilities	90,328	64,072
Guarantee deposits paid	141	153
Other non-current assets, others
Other non-current assets, others	32,945	32,945
Total other non-current assets, others	32,945	32,945
Total other non-current assets	123,414	97,170
Total non-current assets	2,991,175	2,881,274
Total assets	11,720,423	10,855,750
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	2,193,086	1,673,556
Short-term notes and bills payable
Total short-term notes and bills payable	299,458	99,968
Notes payable
Total notes payable	276	268
Accounts payable
Total accounts payable	319,457	234,208
Other payables
Total other payables	281,076	194,940
Current tax liabilities	68,975	0
Other current liabilities
Advance receipts
Total advance receipts	334,676	208,265
Long-term liabilities, current portion
Long-term borrowings, current portion	35,508	77,174
Total long-term liabilities, current portion	35,508	77,174
Other current liabilities, others	6,789	16,980
Total other current liabilities	376,973	302,419
Total current liabilities	3,539,301	2,505,359
Non-current liabilities
Long-term borrowings
Total long-term borrowings	1,154,708	1,548,549
Deferred tax liabilities
Total deferred tax liabilities	890	890
Other non-current liabilities
Accrued pension liabilities	196,108	171,956
Guarantee deposits received	3,251	173,780
Total other non-current liabilities	199,359	345,736
Total non-current liabilities	1,354,957	1,895,175
Total liabilities	4,894,258	4,400,534
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	3,701,189	3,701,189
Total capital stock	3,701,189	3,701,189
Capital surplus
Total capital surplus	1,848,637	1,848,637
Retained earnings
Legal reserve	593,172	561,056
Special reserve	29,227	30,608
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	646,315	305,033
Total retained earnings	1,268,714	896,697
Other equity interest
Total other equity interest	7,625	8,693
Treasury shares	0	0
Total equity attributable to owners of parent	6,826,165	6,455,216
Non-controlling interests	0	0
Total equity	6,826,165	6,455,216
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
Operating revenue
Net sales revenue
Net sales revenue	19,947,709
Total operating revenue	19,947,709
Operating costs
Total operating costs	18,161,982
Gross profit (loss) from operations	1,785,727
Gross profit (loss) from operations	1,785,727
Operating expenses
Selling expenses
Total selling expenses	733,883
Administrative expenses
Total administrative expenses	103,761
Total operating expenses	837,644
Net operating income (loss)	948,083
Non-operating income and expenses
Other income
Interest income
Total interest income	183
Dividend income	4,572
Total other income	4,755
Other gains and losses
Other gains and losses, net	53,353
Finance costs
Finance costs, net	39,407
Total non-operating income and expenses	18,701
Profit (loss) from continuing operations before tax	966,784
Tax expense (income)
Total tax expense (income)	127,510
Profit (loss) from continuing operations	839,274
Profit (loss) from discontinued operations
Total profit (loss) from discontinued operations	0
Profit (loss)	839,274
Other comprehensive income
Unrealised gains (losses) on valuation of available-for-sale financial assets	-712
Other comprehensive income, net	-712
Total comprehensive income	838,562
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	839,274
Profit (loss), attributable to non-controlling interests	0
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	838,562
Comprehensive income, attributable to non-controlling interests	0
Basic earnings per share
Total basic earnings per share	2.27
Diluted earnings per share
Total diluted earnings per share	2.26

Unit: NTD/000

Consolidated	2013	2012
Operating revenue
Net sales revenue
Sales revenue
Total sales revenue	23,846,654	24,249,640
Net sales revenue	23,846,654	24,249,640
Total operating revenue	23,846,654	24,249,640
Operating costs
Total operating costs	22,204,373	22,899,224
Gross profit (loss) from operations	1,642,281	1,350,416
Gross profit (loss) from operations	1,642,281	1,350,416
Operating expenses
Selling expenses
Total selling expenses	836,244	816,134
Administrative expenses
Total administrative expenses	143,405	114,903
Total operating expenses	979,649	931,037
Net operating income (loss)	662,632	419,379
Non-operating income and expenses
Other income
Interest income
Total interest income	442	395
Dividend income	5,586	6,020
Total other income	6,028	6,415
Other gains and losses
Other gains and losses, net	112,012	-10,876
Finance costs
Finance costs, net	37,068	42,463
Total non-operating income and expenses	80,972	-46,924
Profit (loss) from continuing operations before tax	743,604	372,455
Tax expense (income)
Total tax expense (income)	90,697	35,672
Profit (loss) from continuing operations	652,907	336,783
Profit (loss) from discontinued operations
Total profit (loss) from discontinued operations	0	0
Profit (loss)	652,907	336,783
Other comprehensive income
Unrealised gains (losses) on valuation of available-for-sale financial assets	-1,068	8,365
Actuarial gains (losses) on defined benefit plans	-26,273	-2,445
Income tax related to components of other comprehensive income	-4,466	-416
Other comprehensive income, net	-22,875	6,336
Total comprehensive income	630,032	343,119
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	652,907	336,783
Profit (loss), attributable to non-controlling interests	0	0
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	630,032	343,119
Comprehensive income, attributable to non-controlling interests	0	0
Basic earnings per share
Total basic earnings per share	1.76	0.91
Diluted earnings per share
Total diluted earnings per share	1.76	0.91

Cash Flows

Unit: NTD/000

Consolidated	2014-1-1~ 2014-9-30
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	966,784
Profit (loss) before tax	966,784
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	132,507
Interest expense	39,407
Interest income	-183
Loss (gain) on disposal of property, plan and equipment	90
Property, plan and equipment transferred to expenses	0
Total adjustments to reconcile profit (loss)	171,821
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	8,437
Decrease (increase) in notes receivable	9,094
Decrease (increase) in accounts receivable	-406,248
Decrease (increase) in other receivable	-126,784
Decrease (increase) in inventories	-1,339,820
Decrease (increase) in prepayments	33,884
Decrease (increase) in other current assets	0
Total changes in operating assets	-1,821,437
Changes in operating liabilities
Increase (decrease) in notes payable	-16
Increase (decrease) in accounts payable	-3,873
Increase (decrease) in other payable	-12,407
Increase (decrease) in receipts in advance	8,898
Increase (decrease) in other current liabilities	14,831
Increase (decrease) in accrued pension liabilities	-1,180
Total changes in operating liabilities	6,253
Total changes in operating assets and liabilities	-1,815,184
Total adjustments	-1,643,363
Cash inflow (outflow) generated from operations	-676,579
Interest received	183
Interest paid	-39,025
Income taxes refund (paid)	-111,751
Net cash flows from (used in) operating activities	-827,172
Cash flows from (used in) investing activities
Acquisition of financial assets at cost	0
Acquisition of property, plant and equipment	-224,094
Proceeds from disposal of property, plant and equipment	5,407
Decrease in refundable deposits	3
Increase in other non-current assets	-908
Net cash flows from (used in) investing activities	-219,592
Cash flows from (used in) financing activities
Increase in short-term loans	1,718,172
Decrease in short-term loans	0
Increase in short-term notes and bills payable	-99,673
Proceeds from long-term debt	0
Repayments of long-term debt	-23,908
Increase in guarantee deposits received	0
Decrease in guarantee deposits received	-88
Cash dividends paid	-555,178
Net cash flows from (used in) financing activities	1,039,325
Net increase (decrease) in cash and cash equivalents	-7,439
Cash and cash equivalents at beginning of period	653,578
Cash and cash equivalents at end of period	646,139
Cash and cash equivalents reported in the statement of financial position	646,139

Unit: NTD/000

Consolidated	2013	2012
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	743,604	372,455
Profit (loss) before tax	743,604	372,455
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	167,614	174,430
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	-29,826	-8,600
Interest expense	37,068	42,463
Interest income	-442	-395
Loss (gain) on disposal of property, plan and equipment	2,826	2,038
Property, plan and equipment transferred to expenses	9	0
Loss (gain) on disposal of investments	10,666	-218
Total adjustments to reconcile profit (loss)	187,915	209,718
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in notes receivable	35,165	-4,923
Decrease (increase) in accounts receivable	-175,436	334,926
Decrease (increase) in other receivable	-124,990	362,137
Decrease (increase) in inventories	-231,140	686,571
Decrease (increase) in prepayments	-25,681	-13,674
Total changes in operating assets	-522,082	1,365,037
Changes in operating liabilities
Increase (decrease) in notes payable	8	-454
Increase (decrease) in accounts payable	85,249	-10,878
Increase (decrease) in other payable	81,180	-31,890
Increase (decrease) in receipts in advance	126,411	-16,924
Increase (decrease) in other current liabilities	-10,191	7,054
Increase (decrease) in accrued pension liabilities	-2,121	-1,775
Total changes in operating liabilities	280,536	-54,867
Total changes in operating assets and liabilities	-241,546	1,310,170
Total adjustments	-53,631	1,519,888
Cash inflow (outflow) generated from operations	689,973	1,892,343
Interest received	442	395
Interest paid	-37,257	-42,909
Income taxes refund (paid)	-16,617	-152,219
Net cash flows from (used in) operating activities	636,541	1,697,610
Cash flows from (used in) investing activities
Acquisition of financial assets at fair value through other comprehensive income	-394,754	-360,000
Proceeds from disposal of financial assets at fair value through other comprehensive income	383,800	360,218
Acquisition of financial assets at cost	-78,612	-89,514
Acquisition of property, plant and equipment	-215,603	-268,111
Proceeds from disposal of property, plant and equipment	18,476	12,386
Decrease in refundable deposits	12	7
Increase in other non-current assets	0	-692
Net cash flows from (used in) investing activities	-286,681	-345,706
Cash flows from (used in) financing activities
Increase in short-term loans	519,530	0
Decrease in short-term loans	0	-1,190,953
Increase in short-term notes and bills payable	199,490	93
Proceeds from long-term debt	600,000	300,000
Repayments of long-term debt	-1,035,508	-35,508
Decrease in guarantee deposits received	-170,529	-11,152
Cash dividends paid	-259,083	-444,143
Net cash flows from (used in) financing activities	-146,100	-1,381,663
Net increase (decrease) in cash and cash equivalents	203,760	-29,759
Cash and cash equivalents at beginning of period	449,818	479,577
Cash and cash equivalents at end of period	653,578	449,818
Cash and cash equivalents reported in the statement of financial position	653,578	449,818

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

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

Name	Mr. Yang
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.20
UK Pound	1	Rs.94.71
Euro	1	Rs.68.60

INFORMATION DETAILS

Analysis Done by :	RAS
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.