MIRA INFORM REPORT

Report No. :	322253
Report Date :	14.05.2015

IDENTIFICATION DETAILS

Name :	CHIA FAR INDUSTRIAL FACTORY CO., LTD

Registered Office :	2/F., No. 83, Taiyuan Rd., Datong Dist., Taipei City, R. O. C

Country :	Taiwan

Date of Incorporation :	22.11.1973

Com. Reg. No.:	04457563

Legal Form :	Joint Stock Company

Line of Business :	Manufacturing and Sale of Steel.

No. of Employees :	About 290 Employees

RATING & COMMENTS

MIRA’s Rating :

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)

Taiwan

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:	Chia Far Industrial Factory Co., Ltd
Supplied Name:	Cha Far Industrial Factory
Trading Address:	No. 83, Taiyuan Rd., Datong Dist., Taipei City, Taiwan, R. O. C
Supplied Address:	2f. No 83 Tai Yuan Road, Taiwan
Telephone Number:	+886-2-2555-9090
Fax Number:	+886-2-2559-1515

Note: The exact name and address are as above.

Company Identification Details

Registered Name:	Chia Far Industrial Factory Co., Ltd
Registered Address:	2/F., No. 83, Taiyuan Rd., Datong Dist., Taipei City, Taiwan, R. O. C
Date of Foundation:	1973-11-22
Registration Number:	04457563
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 1,358,000,000 (USD 43,184,400) (As of 2015.2, 1 NTD = 0.0318 USD)
Paid-up Capital:	NTD 1,358,000,000 (USD 43,184,400)
Legal Representatives:	Yaren Zheng
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale of steel
Staff:	About 290 employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	2012-7-9

Note: Subject declined to disclose its staff number; we obtained the relevant information from public files.

History

Subject was incorporated on 1973-11-22 with registered number 04457563 as Joint Stock Company in Taiwan.

Corporate Structure

Factory

1
Name:	Youshi Plant
Address:	No. 13, 15, Shi 1^st Rd., Youshi Industrial Dist., Yangmei Dist., Taoyuan City, Taiwan, R.O.C
Date of Foundation:	1969-1-1
Date of Registration:	1975-4-19
Factory Registration Number:	99623174
Factory Manager:	Yaren Zheng
Status:	In Production
Date of Last Annual Return:	2007-2-27
Major Products:	241 Steel
2
Name:	Youshi 2^nd Plant
Address:	No. 17, Liulin Shi 1^st Rd., Gaoshan Li, Yangmei Dist., Taoyuan City, Taiwan, R.O.C
Date of Foundation:	1988-1-19
Date of Registration:	1989-10-16
Factory Registration Number:	99623171
Factory Manager:	Yaren Zheng
Status:	In Production
Date of Last Annual Return:	2002-1-31
Major Products:	241 Steel
3
Name:	Puxin Plant
Address:	No. 5, Sec. 2, Qilin Youshi Rd., Gaoshan Li, Yangmei Dist., Taoyuan City, Taiwan, R.O.C
Date of Registration:	2001-7-19
Factory Registration Number:	99621477
Factory Manager:	Yaren Zheng
Status:	In Production
Date of Last Annual Return:	2002-6-7
Major Products:	241 Steel
4
Name:	Puxin 3^rd Plant
Address:	No. 20, Sec. 2, Youth Rd., Yangmei Dist., Taoyuan City, Taiwan, R.O.C
Date of Registration:	2015-1-27
Factory Registration Number:	03002682
Factory Manager:	Yaren Zheng
Status:	In Production
Date of Last Annual Return:	2015-1-27
Major Products:	249 Other metal products
5
Name:	Puxin 2^nd Plant
Address:	No. 9, Youwu Rd., Gaoshang Li, Yangmei Dist., Taoyuan City, Taiwan, R.O.C
Date of Registration:	2011-12-13
Factory Registration Number:	03000819
Factory Manager:	Yaren Zheng
Status:	In Production
Date of Last Annual Return:	2015-1-16
Major Products:	241 Steel

Shareholders

Major Shareholders

Name	Subscription Shares
Yaren Zheng	1,381,018
Huihuang Li
4,063,995
Guoji Ding	2,448,535
Sunzhi Yang	552,738
Ermin Wu	692,064
Guoying Ding	525,723

Management Information

Core Management

Directors

1
Name		Yaren Zheng
Position		Board Chairman
2
Name	Huihuang Li
Position		Director
3
Name	Guoji Ding
Position		Director & Manager
Date of Appointment for Manager		1980-11-10
4
Name	Sunzhi Yang
Position		Director
5
Name	Ermin Wu
Position		Director
6
Name	Guoying Ding
Position		Supervisor

Personnel Structure

Total Employees

About 290 employees

Operation Information

	Headquarters
Add	No. 83, Taiyuan Rd., Datong Dist., Taipei City, Taiwan, R. O. C

Production Information

· Subject is engaged in manufacturing of steel, etc.

· Subject has 5 factories in Taiwan for production.

· Subject obtained the certifications of ISO 9002, ISO 9001, ISO14001 and OHSAS18001.

Purchase Information

The registered activities of subject:

Business Code	Details
CA01020	Steel rolling and extrusion industry
CA01050	Secondary steel industry
CA03010	Heat treatment Industry
CA04010	Surface treatment industry
F106010	Wholesale of hardware
F401010	International trade business
CC01070	Manufacturing of wireless communications machinery and equipment
F113070	Wholesale of telecom equipment
F213060	Retail of telecom equipment
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

The components and raw material for production are purchased from home and abroad.

Sales Information

· Subject is engaged in sale of steel, etc.

· Subject’s major products are stainless steel coil or strip, stainless steel sheet and stainless steel shrapnel, etc.

· Subject’s sales regions include Asia, Middle East, Europe and USA, etc.

· Subject’s major customers are manufacturers of home appliances, machinery equipment and wholesalers and retailers of steel, etc.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

PURCHASE

Domestic Purchase

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

Import

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

SALES

Domestic Markets

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

Export

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

Financial Information

Subject has no obligations to disclose its financial statements to the third party according to the relevant policy in Taiwan and the only source from which we can obtain the information is the subject itself.

Subject’s relevant staff declined to disclose its financials citing the grounds of company’s confidentiality; from other sources we could not obtain such information, either.

Bankers

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

Public Record

Mortgage

1
Case Type:	Chattel Mortgage
File No.:	106145
Debtor Name:	Chia Far Industrial Factory Co., Ltd
Document Number:	10130332330
Date of Registration:	2012-7-3
2
Case Type:	Chattel Mortgage
File No.:	105703
Debtor Name:	Chia Far Industrial Factory Co., Ltd
Document Number:	10130316880
Date of Registration:	2012-4-12

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.64.19
UK Pound	1	Rs.100.57
Euro	1	Rs.72.07

INFORMATION DETAILS

Analysis Done by :	RAS

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%)

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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.