MIRA INFORM REPORT

Report No. :	347588
Report Date :	06.11.2015

IDENTIFICATION DETAILS

Name :	FORMOSA PLASTICS CORPORATION
Registered Office :	No.100, Shuiguan Rd., Renwu Dist., Kaohsiung City 81465
Country :	Taiwan
Financials (as on) :	31.12.2014
Date of Incorporation :	05.11.1954
Com. Reg. No.:	75708007
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and sales of chemical materials
No. of Employee :	About 4,500 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 :	Good
Payment Behaviour :	Regular
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. 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. However, follow-on components of the ECFA, including a signed agreement on trade in services and negotiations on trade in goods and dispute resolution, have stalled. In early 2014, the government bowed to public demand and proposed a new law governing the oversight of cross-Strait agreements, before any additional deals with China are implemented; the legislature has yet to vote on such legislation, leaving the future of ECFA up in the air as President MA enters his final full year in office. MA has portrayed ECFA as Taiwan’s key to greater participation in East Asia’s free trade networks.

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 expected to account for nearly 20% of the island's total population by 2025.

The island runs a trade surplus, largely because of its surplus with China, and its foreign reserves are the world's fifth largest, behind those of China, Japan, Saudi Arabia, 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, the Taiwan Central Bank signed a memorandum of understanding (MOU) 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 has helped Taiwan develop into a local RMB hub.

Closer economic links with the mainland bring greater opportunities for Taiwan’s economy but also pose new challenges as the island becomes more economically dependent on China at a time when political differences remain unresolved. During 2014, the press paid increasing attention to domestic economic issues, while pushing aside the debates over trade liberalization that were a hallmark of MA’s tenure. The media focused on the divide between Taiwan’s “haves” and “have nots,” providing extensive coverage of public frustration with stagnant wages, skyrocketing housing prices, and the difficulty of finding decent entry-level jobs.

Source : CIA

Contact Points

Company Name:	Formosa Plastics Corporation
Supplied Name:	Formosa Plastics Corporation
Trading Address:	No. 201 Tung Hwa North Road Taipei, Taiwan, R.O.C.
Supplied Address:	201, Tung Hua North Road, Taipei
Telephone Number:	+886-2-2712-2211
Fax Number:	+886-2-2717-5287
E-mail:	formosa@fpc.com.tw
Website:	www.fpc.com.tw

Notes: The exact address is 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:	1954-11-05
Registration Number:	75708007
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 63,657,407,810 (USD 1,941,550,938.205) (As of 2015.9, 1 NTD = 0.0305 USD)
Paid-up Capital:	NTD 63,657,407,810 (USD 1,941,550,938.205)
Legal Representatives:	Jiannan Lin
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sales of chemical materials
Staff:	About 4,500 Employees
Listed at Stock Exchange:	Yes; Stock Symbol:1301
Date of Last Annual Return:	2015-08-18

History

Subject was incorporated on 1954-11-05 with registered number 75708007 as Joint Stock Company in Taiwan.

Subject listed on Taiwan Stock Exchange on 1964-07-27.

Corporate Structure

Factories

1
Address:	No.39, Zhongshan 3^rd Road, Qianzhen Dist., Kaohsiung City, Taiwan (R.O.C.)
Date of Registration:	1969-07-10
Factory Registration Number:	64000008
Factory Manager:	Qinglian Huang
Status:	In Production
Date of Last Annual Return:	2011-05-23
Major Products:	184 Synthetic resin, plastic and rubber 220 Plastic products
2
Name:	The 4^th Factory
Address:	No.5, Jianji St., Qianzhen Dist., Kaohsiung City, Taiwan (R.O.C.)
Date of Foundation:	1991-03-22
Date of Registration:	1991-12-18
Factory Registration Number:	64004717
Factory Manager:	Shouyuan Xiao
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., Dongcheng Village, Dongshan Township, Yilan County, Taiwan (R.O.C.)
Date of Foundation:	1969-01-01
Date of Registration:	1969-01-01
Factory Registration Number:	99620361
Factory Manager:	Weijian Li
Status:	In Production
Date of Last Annual Return:	2015-06-04
Major Products:	089 Other food (dietary supplement, calcium oxide) 181 Basic chemical material 239 Other nonmetal mineral products

Branches

1
Name	Mailiao Branch
Address	No. 1-1, Formosa Plastics Group Industrial Zone, Mailiao Township, Yunlin County, Taiwan
Telephone Number	+886-5-681-2345
Registration Number	84896537
Date of Registration	1994-09-09
Status	Live Company
Manager Name	Jianrong Lu
Date of Last Annual Return	2014-07-31
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	1994-03-07
Status	Live Company
Manager Name	Jianrong Lu
Date of Last Annual Return	2009-03-25
3
Name	Yilan Branch
Address	No. 201, Tungfu Road, Tungshan Village, Yilan County, Taiwan
Telephone Number	+886-39-59-1134
Registration Number	84708795
Date of Registration	1994-03-07
Status	Live Company
Manager Name	Weijian Li
Date of Last Annual Return	2015-05-20

Shareholders

Major Shareholders

Name	Subscription Shares
Formosa Chemicals & Fibre Corp.
486,978,692
Nan Ya Plastics Corporation	294,793,105
Formosa Petrochemical Corporation	131,460,365
Zhicun Li	1,262,541
Xuehong Wang	7,369,380
Chang Gung Medical Foundation	601,011,035
Guoxiong Wu	134,537
Minting He	27,824,363
Wenqin Xiao	6,685

Shareholders’ 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:	1965-03-05
Registration Number:	58650902
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 58,611,862,910 (USD 1,787,661,818.755) (As of 2015.02, 1 NTD = 0.0305 USD)
Paid-up Capital:	NTD 58,611,862,910 (USD 1,787,661,818.755)
Legal Representatives:	Wenyuan Wang
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2015-07-14
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:	1958-08-22
Registration Number:	75370905
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 79,308,215,890 (USD 2,418,900,584.645) (As of 2015.02, 1 NTD = 0.0305 USD)
Paid-up Capital:	NTD 79,308,215,890 (USD 2,418,900,584.645)
Legal Representatives:	Jiazhao Wu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2015-07-20
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:	1992-04-06
Registration Number:	86522210
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 95,259,596,520 (USD 2,905,417,693.86) (As of 2015.02, 1 NTD = 0.0305 USD)
Paid-up Capital:	NTD 95,259,596,520 (USD 2,905,417,693.86)
Legal Representatives:	Baolang Chen
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2015-08-21

Management Information

Core Management

Directors

1
Name		Jiannan Lin
Position		Chairman of the Board
Date of Appointment for Manager		2015-08-11
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
6
Name	Qingji Wu
Position		Independent Director
7
Name	Deshan Wang
Position		Independent Director
8
Name	Zhichun Li
Position		Director
9
Name	Xuehong Wang
Position		Director
10
Name	Fuquan Wei
Position		Director
11
Name	Guoxiong Wu
Position		Director
12
Name	Minting He
Position		Director
13
Name	Chengzhong Cheng
Position		Director & Manager
Date of Appointment for Manager		2009-06-05
14
Name	Wenqin Xiao
Position		Director & Manager
Date of Appointment for Manager		2009-03-17
15
Name	Tianxiang Li
Position		Manager
Date of Appointment		2010-12-24
16
Name	Guangming Chen
Position		Manager
Date of Appointment		2011-06-20
17
Name	Jianshan Yang
Position		Manager
Date of Appointment		2013-03-25
18
Name	Jinling Huang
Position		Manager
Date of Appointment		2013-03-25
19
Name	Qinglian Huang
Position		Manager
Date of Appointment		2014-08-11
20
Name	Dongqin Ji
Position		Manager
Date of Appointment		2014-08-11

Personnel Structure

Total Employees

About 4,500 Employees

Operation Information

Offices & Factories

	Headquarters
Add	No. 201 Tung Hwa North Road Taipei, Taiwan, R.O.C.

Production Information

Subject is engaged in manufacturing of chemical materials, etc.

Subject has factories in Taiwan for production.

Subject obtained the certification 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.

It is introduced that subject imports technologies from Japan, etc.

We obtain some detail information about raw materials as follows for reference.

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

Sales Information

Subject is engaged in sales of chemical materials, etc.

It is introduced that subject is divided into 8 major departments which include plastic, acrylic fiber, carbide, plastic processing, polyolefin, chemicals, electronics and polypropylene, etc.

Subject’s sales regions include domestic market, Southeast Asia, America AND Europe, 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, etc.
Plastic products	Shopping bag, garbage bag, breathable film, etc.
Calcium carbide products	Calcium carbide, calcium carbonate, Optimal calcium, quicklime and Light calcium glue, 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	Chemicals materials, etc.
Selling Terms	T/T, Cash, etc.

Export

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

Balance Sheet

Unit: NTD/000

Consolidated	2014-12-31	2013-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	5,392,825	7,672,877
Current available-for-sale financial assets
Current available-for-sale financial assets, net	83,956,324	71,546,858
Notes receivable, net
Notes receivable, net	1,026,818	1,059,554
Accounts receivable, net
Accounts receivable, net	7,350,138	8,699,422
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	4,225,994	4,631,945
Other receivables
Other receivables, net	1,052,161	1,591,915
Other receivables due from related parties
Other receivables due from related parties, net	29,179,344	21,069,672
Inventories
Total inventories	22,872,390	21,669,071
Other current assets
Total other current assets	5,082,721	4,926,183
Total current assets	160,138,715	142,867,497
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	10,729,587	13,993,274
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	160,602,440	152,358,544
Property, plant and equipment
Total property, plant and equipment	83,997,627	81,456,398
Intangible assets
Total intangible assets	601,282	638,075
Deferred tax assets	1,599,335	1,670,569
Other non-current assets
Total other non-current assets	10,979,936	13,345,840
Total non-current assets	270,947,975	265,878,868
Total assets	431,086,690	408,746,365
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	13,767,560	17,521,603
Short-term notes and bills payable
Total short-term notes and bills payable	0	3,099,844
Accounts payable
Total accounts payable	5,454,975	4,478,098
Accounts payable to related parties
Total accounts payable to related parties	7,358,639	12,853,759
Other payables
Total other payables	1,270,407	995,821
Other payables to related parties	937,159	882,463
Other current liabilities
Long-term liabilities, current portion
Bonds payable, current portion	7,993,512	5,996,474
Long-term borrowings, current portion	1,515,645	4,995,310
Total long-term liabilities, current portion	9,509,157	10,991,784
Other current liabilities, others	9,625,843	8,854,481
Total other current liabilities	19,135,000	19,846,265
Total current liabilities	47,923,740	59,677,853
Non-current liabilities
Bonds payable
Total bonds payable	51,913,453	53,893,227
Long-term borrowings
Total long-term borrowings	26,944,995	16,215,982
Deferred tax liabilities
Total deferred tax liabilities	9,412,161	7,165,065
Other non-current liabilities
Accrued pension liabilities	8,526,717	8,934,115
Other non-current liabilities, others	473,906	423,770
Total other non-current liabilities	9,000,623	9,357,885
Total non-current liabilities	97,271,232	86,632,159
Total liabilities	145,194,972	146,310,012
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	63,657,408	63,657,408
Total capital stock	63,657,408	63,657,408
Capital surplus
Total capital surplus	11,277,988	11,275,671
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)	46,807,749	48,550,893
Total retained earnings	129,225,172	123,326,645
Other equity interest
Total other equity interest	81,731,150	64,176,629
Total equity attributable to owners of parent	285,891,718	262,436,353
Total equity	285,891,718	262,436,353
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	2013
Operating revenue
Total operating revenue	216,589,040	215,424,768
Operating costs
Total operating costs	200,036,215	199,760,375
Gross profit (loss) from operations	16,552,825	15,664,393
Gross profit (loss) from operations	16,552,825	15,664,393
Operating expenses
Selling expenses
Total selling expenses	5,173,862	5,548,405
Administrative expenses
Total administrative expenses	4,946,069	4,643,380
Research and development expenses
Total research and development expenses	918,041	892,277
Total operating expenses	11,037,972	11,084,062
Net operating income (loss)	5,514,853	4,580,331
Non-operating income and expenses
Other income
Total other income	2,960,516	1,392,257
Other gains and losses
Other gains and losses, net	4,408,900	2,034,874
Finance costs
Finance costs, net	1,565,536	1,482,832
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	9,232,820	16,639,868
Total non-operating income and expenses	15,036,700	18,584,167
Profit (loss) from continuing operations before tax	20,551,553	23,164,498
Tax expense (income)
Total tax expense (income)	2,558,119	2,448,657
Profit (loss) from continuing operations	17,993,434	20,715,841
Profit (loss)	17,993,434	20,715,841
Other comprehensive income
Exchange differences on translation	5,503,175	2,792,876
Unrealised gains (losses) on valuation of available-for-sale financial assets	9,144,815	18,364,002
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	3,551,838	2,934,708
Income tax related to components of other comprehensive income	645,307	226,081
Other comprehensive income, net	17,554,521	23,865,505
Total comprehensive income	35,547,955	44,581,346
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	17,993,434	20,715,841
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	35,547,955	44,581,346
Basic earnings per share
Basic earnings (loss) per share from continuing operations	2.83	3.25
Total basic earnings per share	2.83	3.25

Cash Flows

Unit: NTD/000

Consolidated	2014	2013
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	20,551,553	23,164,498
Profit (loss) before tax	20,551,553	23,164,498
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	7,555,974	8,247,224
Amortization expense	544,066	645,875
Provision (reversal of provision) for bad debt expense	-1,248	1,237
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	0	-5,866
Interest expense	1,565,536	1,482,832
Interest income	-500,464	-668,751
Share of loss (profit) of associates and joint ventures accounted for using equity method	-9,232,820	-16,639,868
Loss (gain) on disposal of property, plan and equipment	-35,459	-133,559
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)	-784,395	-132,330
Other revenue, overdue dividends and compensation of board and directors	-16,058	-7,258
Total adjustments to reconcile profit (loss)	-3,533,541	-7,210,215
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in notes receivable	32,736	-215,896
Decrease (increase) in accounts receivable	1,579,701	-1,646,254
Decrease (increase) in accounts receivable due from related parties	405,951	-448,548
Decrease (increase) in other receivable	495,932	-368,611
Decrease (increase) in other receivable due from related parties	-7,440,132	-2,086,840
Decrease (increase) in inventories	-1,160,199	-399,689
Decrease (increase) in other current assets	-155,806	-967,995
Total changes in operating assets	-6,241,817	-6,133,833
Changes in operating liabilities
Increase (decrease) in accounts payable	976,877	591,611
Increase (decrease) in accounts payable to related parties	-5,495,120	2,902,833
Increase (decrease) in other payable	103,961	-62,914
Increase (decrease) in other payable to related parties	17,974	384,599
Increase (decrease) in other current liabilities	847,516	1,743,076
Increase (decrease) in accrued pension liabilities	-407,398	-235,957
Total changes in operating liabilities	-3,956,190	5,323,248
Total changes in operating assets and liabilities	-10,198,007	-810,585
Total adjustments	-13,731,548	-8,020,800
Cash inflow (outflow) generated from operations	6,820,005	15,143,698
Interest received	544,287	677,593
Dividends received	8,415,528	2,165,949
Interest paid	-1,641,691	-1,477,995
Income taxes refund (paid)	-699,730	-240,985
Net cash flows from (used in) operating activities	13,438,399	16,268,260
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	-8,074,296	-13,148,670
Proceeds from disposal of property, plant and equipment	50,875	673,529
Increase in other receivables due from related parties	-122,671	0
Decrease in other receivables due from related parties	0	11,168,093
Proceeds from disposal of intangible assets	-930	-92,791
Decrease in other non-current assets	1,594,673	196,096
Net cash flows from (used in) investing activities	-3,973,961	-14,221,156
Cash flows from (used in) financing activities
Decrease in short-term loans	-3,756,752	-4,067,001
Decrease in short-term notes and bills payable	-3,099,844	-5,098,562
Proceeds from issuing bonds	5,984,010	19,947,570
Repayments of bonds	-6,000,000	-9,000,000
Proceeds from long-term debt	24,199,654	8,277,481
Repayments of long-term debt	-16,950,306	-7,431,665
Increase in other payables to related parties	36,721	0
Decrease in other payables to related parties	0	-196,159
Increase in other non-current liabilities	50,136	18,721
Cash dividends paid	-12,093,820	-7,336,651
Net cash flows from (used in) financing activities	-11,630,201	-4,886,266
Effect of exchange rate changes on cash and cash equivalents	-114,289	306,220
Net increase (decrease) in cash and cash equivalents	-2,280,052	-2,532,942
Cash and cash equivalents at beginning of period	7,672,877	10,205,819
Cash and cash equivalents at end of period	5,392,825	7,672,877
Cash and cash equivalents reported in the statement of financial position	5,392,825	7,672,877

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.

Special Note

Interview Details

Name	Mr. Lin
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.68
UK Pound	1	Rs.101.02
Euro	1	Rs.71.35

INFORMATION DETAILS

Analysis Done by :	DIV
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%)

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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.