MIRA INFORM REPORT

Report No. :	346570
Report Date :	27.10.2015

IDENTIFICATION DETAILS

Name :	LI PENG ENTERPRISE CO., LTD.
Registered Office :	6F, No.162 Sung Chiang Rd., Taipei Taiwan
Country :	Taiwan
Financials (as on) :	31.12.2014 (Consolidated)
Date of Incorporation :	20.08.1975
Com. Reg. No.:	33955322
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and sale of textile raw materials and fabrics.
No. of Employee :	About 1,100 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 :	Exist

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:	Li Peng Enterprise Co., Ltd.
Supplied Name:	LI PENG ENTERPRISE CO LTD.
Trading Address:	6F, No.162 Sung Chiang Rd., Taipei Taiwan R.O.C.
Supplied Address:	6F, NO. 162 Sung Chiang Rd., Taipei
Telephone Number:	+886-2-2100-2188
Fax Number:	+886-2-2100-1817
Email:	lp_sales@lipeng.com.tw

Company Identification Details

Registered Name:	Li Peng Enterprise Co., Ltd.
Registered Address:	6F, No.162 Sung Chiang Rd., Taipei Taiwan R.O.C.
Date of Foundation:	1975-8-20
Registration Number:	33955322
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 12,000,000,000 (USD 370,800,000) (As of 2015.10, 1 NTD = 0.0309 USD)
Paid-up Capital:	NTD 9,144,872,420 (USD 282,576,558)
Legal Representatives:	Shaoyi Guo
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale of textile raw materials and fabrics.
Staff:	About 1,100 Employees
Listed at Stock Exchange:	Yes; Stock Code: 1447
Date of Last Annual Return:	2015-9-3

History

Subject was incorporated on 1975-8-20 with registered number 33955322 as Joint Stock Company in Taiwan.

Subject was listed on Taiwan Stock Exchange on 1992-1-28.

Awards

Year	Awards
2008	Blue chip importer and exporter
2009	Blue chip importer and exporter
2010	Blue chip importer and exporter

Corporate Structure

Factories

1
Name:	Changhua Nylon Factory
Address:	No. 33, Houliao Village Industrial Rd., Fangyuan Xiang, Changhua County, Taiwan
Date of Foundation:	1997-1-6
Date of Registration:	1999-6-5
Factory Registration Number:	99645362
Factory Manager:	Binghuang Chen
Status:	In Production
Date of Last Annual Return:	2015-10-19
Major Products:	111 spinning 184 plasthetics, rubber and plastics
2
Name:	Changhua Weaving Factory
Address:	No. 16, Houliao Village Industrial Rd., Fangyuan Xiang, Changhua County, Taiwan
Date of Foundation:	1991-12-24
Date of Registration:	1993-6-23
Factory Registration Number:	99645357
Factory Manager:	Wenhong Zhan
Status:	In Production
Date of Last Annual Return:	2015-3-16
Major Products:	112 weaving
3
Name:	Changhua 2^nd Factory
Address:	No. 13, Houliao Village Industrial Rd., Fangyuan Xiang, Changhua County, Taiwan
Date of Foundation:	1996-5-1
Date of Registration:	1996-8-7
Factory Registration Number:	99645356
Factory Manager:	Minxiong Tong
Status:	In Production
Date of Last Annual Return:	2002-4-19
Major Products:	111 spinning
4
Name:	Yangmei Factory
Address:	No. 339, Xinrong Rd., Xinrong Li, Yangmei City, Taoyuan County, Taiwan
Date of Foundation:	1969-1-1
Date of Registration:	1976-8-14
Factory Registration Number:	99621595
Factory Manager:	Chunfa Wang
Status:	In Production
Date of Last Annual Return:	2014-10-31
Major Products:	112 weaving 114 dyeing and finishing
5
Name:	Changhua Nylon 2^nd Factory
Address:	No. 17, Houliao Village Industrial Park, Fangyuan Xiang, Changhua County, Taiwan
Date of Registration:	2013-11-26
Factory Registration Number:	07001034
Factory Manager:	Zhiyun Xie
Status:	In Production
Date of Last Annual Return:	2014-4-14
Major Products:	111 spinning

Shareholders

Major Shareholders

Name	Subscription Shares
Shaoyi Guo
16,213,483
Jigang Guo	400,644
Binghuang Chen	53,343
Lealea Enterprise Co., Ltd.	145,353,853
Limao Investment Co., Ltd. (Literal Translation)	34,177,955
Shunyu Investment Co., Ltd. (Literal Translation)	11,991,397

Shareholder Information:

1
Registered Name:	Lealea Enterprise Co., Ltd.
Registered Address:	11F. No.162, Sung Chiang Rd., Taipei, Taiwan
Date of Foundation:	1979-1-15
Registration Number:	07663290
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 12,000,000,000 (USD 370,800,000) (As of 2015.10, 1 NTD = 0.0309 USD)
Paid-up Capital:	NTD 9,573,029,420 (USD 295,806,609)
Legal Representatives:	Shaoyi Guo
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2015-6-30
2
Registered Name:	Limao Investment Co., Ltd. (Literal Translation)
Registered Address:	11F. No.162, Sung Chiang Rd., Taipei, Taiwan
Date of Foundation:	1993-3-30
Registration Number:	84253268
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 756,000,000 (USD 23,360,400) (As of 2015.10, 1 NTD = 0.0309 USD)
Paid-up Capital:	NTD 756,000,000 (USD 23,360,400)
Legal Representatives:	Xiuling Lin
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2015-5-29
3
Registered Name:	Shunyu Investment Co., Ltd. (Literal Translation)
Registered Address:	11F. No.162, Sung Chiang Rd., Taipei, Taiwan
Date of Foundation:	2009-4-17
Registration Number:	24340269
Registry:	Taipei City Government
Registered Capital:	NTD 50,000,000 (USD 1,545,000) (As of 2015.10, 1 NTD = 0.0309 USD)
Paid-up Capital:	NTD 50,000,000 (USD 1,545,000)
Legal Representatives:	Weisheng Chen
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2012-2-20

Management Information

Core Management

Directors

1
Name		Shaoyi Guo
Position		Chairman of the Board & Manager
Date of Appointment of Manager		2014-3-1
2
Name	Jigang Guo
Position		Director
3
Name	Binghuang Chen
Position		Director
4
Name	Zhiyuan Xie
Position		Director
5
Name	Shuzhen Guo
Position		Director
6
Name	Yushu Xu
Position		Director
7
Name	Daoming Li
Position		Independence Director
8
Name	Qichang Lu
Position		Independence Director
9
Name	Yulun Ou
Position		Independence Director

Personnel Structure

Total Employees

About 1,100 Employees

Operation Information

Offices & Factories

	Headquarters
Add	6F, No.162 Sung Chiang Rd., Taipei Taiwan R.O.C.

Production Information

Subject is engaged in manufacturing of textile raw materials and fabrics.

Subject has factories in Taiwan for production.

Subject obtained the certifications of ISO 9001, ISO 14001 and OSHAS18001.

Subject’s production status is as follows:

Products	Capacity
Weaving	About 8,000,000 yards every month
Dyeing and finishing	About 6,000,000 yards every month
Coating	About 2,000,000 yards every month
Nylon granule	About 33,000 tons every month
Nylon strand	About 3,000 tons every month
Nylon textured yarn	About 300 tons every month

Purchase Information

The registered activities of subject:

Business Code	Details
--	Printing, processing, manufacture and sales of all kinds of calico paper, Figure dye paper, paper products
--	Manufacture and sales of Man-made fiber materials, Synthetic fiber materials and its related processed products.
--	Manufacture and sales of Plastic Raw Materials
--	Import and export of related textile cloth
--	Import and export of the related raw materials, materials, finished goods
--	Sales of Chemical industrial products
I301010	Information software services
I301030	Electronic information supplying services
IZ99990	Other Ness Services (Biological pharmaceutical research and development)

It is introduced that the raw materials for production are purchased both at home and abroad.

Sales Information

Subject is engaged in sale of textile raw materials and fabrics.

It is introduced that subject has brand named LIBOLON

The major sales regions include domestic market, Japan, Korea, Thailand, Singapore, India, Indonesia, Southeast Asia, Switzerland, Britain

Subject’s major customers are manufacturers of cloth and apparel, dealers

Major products

Types	Products
Nylon products	Nylon chips, nylon filament yarns, nylon special and functional yarn
Fabrics	Fabrics for trousers, nylon fabrics, home decoration, shade fabrics, fire proof fabrics, Lycra fabrics, superfine synthetic fabrics and artificial suede fabrics

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Products	Raw materials
Payment Terms	T/T, Cash

Import

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

Sales

Domestic Markets

Product	Textile raw materials and fabrics.
Selling Terms	T/T, Cash

Export

Product	Textile raw materials and fabrics.
Selling Terms	L/C, T/T

Balance Sheet

Unit: NTD/000

Consolidated	2014-12-31	2013-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	761,186	558,884
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	283,828	178,271
Notes receivable, net
Notes receivable, net	287,785	187,049
Accounts receivable, net
Accounts receivable, net	3,114,132	4,209,653
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	35,616	58,876
Inventories
Total inventories	3,225,304	3,383,687
Prepayments
Total prepayments	54,599	103,947
Other current assets
Other current financial assets	141,821	326,701
Other current assets, others	20,582	21,405
Total other current assets	162,403	348,106
Total current assets	7,924,853	9,028,473
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	1,573,137	1,795,147
Non-current financial assets at cost
Non-current financial assets at cost, net	36,726	64,807
Investments accounted for using equity method
Investments accounted for using equity method, net	1,883,347	1,755,851
Property, plant and equipment
Total property, plant and equipment	5,194,978	4,832,508
Intangible assets
Total intangible assets	16,235	16,885
Deferred tax assets	76,325	41,492
Other non-current assets
Prepayments for business facilities	725,000	144,022
Other non-current assets, others
Total other non-current assets, others	11,860	12,294
Total other non-current assets	736,860	156,316
Total non-current assets	9,517,608	8,663,006
Total assets	17,442,461	17,691,479
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	2,547,000	2,112,491
Short-term notes and bills payable
Total short-term notes and bills payable	879,000	1,049,000
Notes payable
Total notes payable	92,625	100,624
Notes payable to related parties
Total notes payable to related parties	22,583	18,676
Accounts payable
Total accounts payable	1,018,520	1,503,763
Accounts payable to related parties
Total accounts payable to related parties	57,158	76,997
Other payables
Other payables, others	541,745	403,435
Total other payables	541,745	403,435
Other payables to related parties	263,391	238,415
Current tax liabilities	67,164	77,751
Current provisions
Total current provisions	11,761	14,857
Other current liabilities
Long-term liabilities, current portion
Total long-term liabilities, current portion	138,944	535,369
Other current liabilities, others	146,921	138,943
Total other current liabilities	285,865	674,312
Total current liabilities	5,786,812	6,270,321
Non-current liabilities
Long-term borrowings
Total long-term borrowings	505,639	344,583
Deferred tax liabilities
Total deferred tax liabilities	146,650	146,650
Other non-current liabilities
Accrued pension liabilities	255,927	260,878
Other non-current liabilities, others	738	877
Total other non-current liabilities	256,665	261,755
Total non-current liabilities	908,954	752,988
Total liabilities	6,695,766	7,023,309
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	8,709,402	7,917,638
Total capital stock	8,709,402	7,917,638
Capital surplus
Total capital surplus	61,480	52,453
Retained earnings
Legal reserve	472,409	372,061
Special reserve	508,076	508,076
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	948,920	1,496,851
Total retained earnings	1,929,405	2,376,988
Other equity interest
Total other equity interest	-270,055	120,761
Treasury shares	357,738	363,621
Total equity attributable to owners of parent	10,072,494	10,104,219
Non-controlling interests	674,201	563,951
Total equity	10,746,695	10,668,170
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	78,998,198	72,577,545

Profit and Loss Account

Unit: NTD/000

Consolidated	2014	2013
Operating revenue
Total operating revenue	22,363,188	26,503,193
Operating costs
Total operating costs	21,615,961	25,043,993
Gross profit (loss) from operations	747,227	1,459,200
Gross profit (loss) from operations	747,227	1,459,200
Operating expenses
Selling expenses
Total selling expenses	433,980	404,144
Administrative expenses
Total administrative expenses	170,295	169,216
Research and development expenses
Total research and development expenses	95,669	99,365
Total operating expenses	699,944	672,725
Net operating income (loss)	47,283	786,475
Non-operating income and expenses
Other income
Other income, others	84,222	154,920
Total other income	84,222	154,920
Other gains and losses
Other gains and losses, net	257,280	281,869
Finance costs
Finance costs, net	67,030	65,568
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	91,262	68,165
Total non-operating income and expenses	365,734	439,386
Profit (loss) from continuing operations before tax	413,017	1,225,861
Tax expense (income)
Total tax expense (income)	65,735	153,819
Profit (loss) from continuing operations	347,282	1,072,042
Profit (loss)	347,282	1,072,042
Other comprehensive income
Exchange differences on translation	10,260	2,960
Unrealised gains (losses) on valuation of available-for-sale financial assets	-244,143	-61,790
Actuarial gains (losses) on defined benefit plans	-4,058	-5,712
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	-45,726	181,579
Other comprehensive income, net	-283,667	117,037
Total comprehensive income	63,615	1,189,079
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	348,239	1,003,479
Profit (loss), attributable to non-controlling interests	-957	68,563
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	-46,635	1,355,568
Comprehensive income, attributable to non-controlling interests	110,250	-166,489
Basic earnings per share
Basic earnings (loss) per share from continuing operations	0.42	1.22
Total basic earnings per share	0.42	1.22
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations	0.42	1.22
Total diluted earnings per share	0.42	1.22

Cash Flows

Unit: NTD/000

Consolidated	2014	2013
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	413,017	1,225,861
Profit (loss) before tax	413,017	1,225,861
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	503,464	489,628
Amortization expense	10,906	19,295
Provision (reversal of provision) for bad debt expense	-3,979	2,870
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	-6,710	-96,007
Interest expense	67,030	65,568
Interest income	-39,242	-9,380
Dividend income	-6,043	-103,122
Share-based payments	4,947	0
Share of loss (profit) of associates and joint ventures accounted for using equity method	-91,262	-68,165
Loss (gain) on disposal of property, plant and equipment	-12,096	-15,003
Loss (gain) on disposal of investments	-1,196	0
Impairment loss on financial assets	27,883	0
Impairment loss on non-financial assets	221,612	7,740
Unrealized foreign exchange loss (gain)	7,418	-78,736
Other adjustments to reconcile profit (loss)	67,440	67,623
Total adjustments to reconcile profit (loss)	750,172	282,311
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	-97,651	-30,000
Decrease (increase) in notes receivable	-102,695	38,115
Decrease (increase) in accounts receivable	1,168,776	-1,238,995
Decrease (increase) in inventories	-61,449	185,096
Decrease (increase) in prepayments	-18,064	-111,146
Decrease (increase) in other current assets	1,008	57,706
Decrease (increase) in other financial assets	172,522	-156,028
Decrease (increase) in other operating assets	542	909
Total changes in operating assets	1,062,989	-1,254,343
Changes in operating liabilities
Increase (decrease) in notes payable	-4,092	-92,866
Increase (decrease) in accounts payable	-525,140	184,986
Increase (decrease) in other payable	-17,288	5,211
Increase (decrease) in provisions	-3,096	13,611
Increase (decrease) in other current liabilities	7,978	32,149
Increase (decrease) in accrued pension liabilities	-8,994	-430
Total changes in operating liabilities	-550,632	142,661
Total changes in operating assets and liabilities	512,357	-1,111,682
Total adjustments	1,262,529	-829,371
Cash inflow (outflow) generated from operations	1,675,546	396,490
Interest received	38,148	9,282
Dividends received	33,494	127,830
Interest paid	-67,787	-65,682
Income taxes refund (paid)	-111,340	-3,077
Net cash flows from (used in) operating activities	1,568,061	464,843
Cash flows from (used in) investing activities
Acquisition of available-for-sale financial assets	-22,132	-28,057
Proceeds from capital reduction of financial assets at cost	198	0
Acquisition of investments accounted for using equity method	-105,250	0
Proceeds from capital reduction of investments accounted for using equity method	0	41,850
Acquisition of property, plant and equipment	-730,868	-480,595
Proceeds from disposal of property, plant and equipment	30,067	16,560
Decrease in refundable deposits	-108	4
Acquisition of intangible assets	-5,293	-9,084
Increase in other financial assets	11,770	0
Increase in prepayments for business facilities	-580,978	-134,344
Net cash flows from (used in) investing activities	-1,402,594	-593,666
Cash flows from (used in) financing activities
Increase in short-term loans	434,509	248,043
Increase in short-term notes and bills payable	-170,000	155,000
Repayments of long-term debt	-235,369	-364,999
Increase in guarantee deposits received	-139	203
Increase in other payables to related parties	24,976	125,415
Proceeds from sale of treasury shares	0	250,753
Treasury shares sold to employees	5,865	0
Acquisition of ownership interests in subsidiaries	0	-43,454
Net cash flows from (used in) financing activities	59,842	370,961
Effect of exchange rate changes on cash and cash equivalents	-23,007	27,034
Net increase (decrease) in cash and cash equivalents	202,302	269,172
Cash and cash equivalents at beginning of period	558,884	289,712
Cash and cash equivalents at end of period	761,186	558,884
Cash and cash equivalents reported in the statement of financial position	761,186	558,884

Note: Subject didn’t submit its individual financial information; and 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

1
Case Type:	Chattel Mortgage
Registered Number:	JS(Z)DDZ109136
Debtor Name:	Li Peng Enterprise Co., Ltd.
Registry:	MOEA Central Office
Bank Name:	Bank of Taiwan Sung Chiang Branch
Date of Registration:	2014-1-20
Amount of Secure Claims:	NTD 1,365,000,000
Type of Subject Matter:	Machinery, equipment or tools
Date of Contract Beginning:	2014-1-15
Date of Contract Ending:	2026-1-14
2
Case Type:	Chattel Mortgage
Registered Number:	JS(Z)DDZ105934
Debtor Name:	Li Peng Enterprise Co., Ltd.
Registry:	MOEA Central Office
Bank Name:	Bank of Taiwan Sung Chiang Branch
Date of Registration:	2012-5-24
Amount of Secure Claims:	NTD 196,600,000
Type of Subject Matter:	Machinery, equipment or tools
Date of Contract Beginning:	2012-5-22
Date of Contract Ending:	2023-5-21
3
Case Type:	Chattel Mortgage
Registered Number:	JS(Z)DDZ105930
Debtor Name:	Li Peng Enterprise Co., Ltd.
Registry:	Economic Development Board of Taoyuan City Government
Bank Name:	Bank of Taiwan Sung Chiang Branch
Date of Registration:	2012-5-24
Amount of Secure Claims:	NTD 113,000,000
Type of Subject Matter:	Machinery, equipment or tools
Date of Contract Beginning:	2012-5-22
Date of Contract Ending:	2023-5-21
4
Case Type:	Chattel Mortgage
Registered Number:	JS(Z)DDZ099624
Debtor Name:	Li Peng Enterprise Co., Ltd.
Registry:	Economic Development Board of Taoyuan City Government
Bank Name:	Bank of Taiwan Sung Chiang Branch
Date of Registration:	2010-3-24
Amount of Secure Claims:	NTD 120,000,000
Type of Subject Matter:	Machinery, equipment or tools
Date of Contract Beginning:	2010-3-22
Date of Contract Ending:	2020-6-21

Lawsuit

1
Trial Number:	2004, beilaojian, 72
Date of Trial:	2004-8-12
Reason:	Payment for salary
Claimant:	Not Stated
Defendant:	Li Peng Enterprise Co., Ltd.
2
Trial Number:	2003, beijian, 26567
Date of Trial:	2004-3-2
Reason:	Payment for fare
Claimant:	Li Peng Enterprise Co., Ltd.
Defendant:	Not Stated
3
Trial Number:	2003, beilaojian, 157
Date of Trial:	2004-1-13
Reason:	Severance payment
Claimant:	Not Stated
Defendant:	Li Peng Enterprise Co., Ltd.

Special Note

Interview Details

Name	Ms. Li
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.96
UK Pound	1	Rs.99.55
Euro	1	Rs.71.64

INFORMATION DETAILS

Analysis Done by :	HNA
Report Prepared by :	ANK

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.