MIRA INFORM REPORT

Report No. :	339367
Report Date :	04.09.2015

IDENTIFICATION DETAILS

Name :	ETERNAL MATERIALS CO., LTD.
Formerly Known As :	ETERNAL CHEMICAL CO., LTD.
Registered Office :	No.578, Chien-Kung Rd., Kaohsiung, Taiwan, R.O.C.
Country :	Taiwan
Financials (as on) :	31.12.2014 (Consolidated)
Date of Incorporation :	03.12.1964
Com. Reg. No.:	75339004
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Sale of Resins Materials.
No. of Employees :	About 4,630 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 – 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:	Eternal Materials Co., Ltd.
Supplied Name:	ETERNAL MATERIALS CO LTD
Trading Address:	No.578, Chien-Kung Rd., Kaohsiung, Taiwan
Supplied Address:	578 CHIEN-KUNG ROAD, KAOHSIUNG TAIWAN
Telephone Number:	+886-7-383-8181
Fax Number:	+886-7-383-0816

Notes: The exact name and address are as above.

Company Identification Details

Registered Name:	Eternal Materials Co., Ltd.
Registered Address:	No.578, Chien-Kung Rd., Kaohsiung, Taiwan, R.O.C.
Date of Foundation:	1964-12-3
Registration Number:	75339004
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 12,000,000,000 (USD 399,600,000) (As of 2015.08, 1 NTD = 0.0333 USD)
Paid-up Capital:	NTD 10,221,690,260 (USD 340,382,286)
Legal Representatives:	Guolun Gao
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale of resins materials
Staff:	About 4,630 Employees (Group)
Listed at Stock Exchange:	Yes; Stock Code: 1717
Date of Last Annual Return:	2015-6-26

History

Subject was incorporated on 1964-12-3 with registered number 75339004 as Joint Stock Company in Taiwan.

Subject is listed on the Taiwan Exchange Stock on 1994-3-31.

Change of Name

Former English Name:	Eternal Chemical Co., Ltd.
Current English Name:	Eternal Materials Co., Ltd.

Corporate Structure

Factories:

1
Name:	Ping-Nan Branch
Address:	No.23, Ping-Nan Rd., Ping-Nan Industrial Zone, Fang-Liao Hsiang, Ping Tung Hsien
Date of Foundation:	1988-10-6
Date of Registration:	1994-10-11
Factory Registration Number:	99665562
Factory Manager:	Hongyi Chen
Status:	In production
Date of Last Annual Return:	2014-7-3
Major Products:	199 Other chemical products
2
Name:	Da Fa Factory
Address:	No.30, Yu Min Street, Da Liao Li, Da Liao District, Kaohsiung City
Date of Foundation:	1990-12-31
Date of Registration:	1990-12-31
Factory Registration Number:	99661731
Factory Manager:	Fengrong Zhang
Status:	In production
Date of Last Annual Return:	2014-7-2
Major Products:	263 Printed circuit board 269 Other electronic components 181 The basic chemical materials
3
Name:	Lu Zhu Factory
Address:	No.22, Chang Xing Road, Hou Xiang Li, Lu Zhu District, Kaohsiung City
Date of Foundation:	1990-12-31
Date of Registration:	1990-12-31
Factory Registration Number:	99661553
Factory Manager:	Dongrong Lin
Status:	In production
Date of Last Annual Return:	2014-7-2
Major Products:	184 Synthetic resin, plastic and rubber 199 Other chemical products 192 Paints, dyes and pigments 239 Other non-metallic mineral products 263 Printed circuit board
4
Name:	Zhong Li Factory
Address:	1/F, 2/F, No.27, Ji Lin Road, Wen Hua Li, Zhong Li City, Tao Yuan Hsien
Date of Foundation:	1995-12-23
Date of Registration:	1997-6-30
Factory Registration Number:	99626421
Factory Manager:	Shiliang Lv
Status:	In production
Date of Last Annual Return:	2014-7-7
Major Products:	199 Other chemical products
5
Name:	Zhong Li The Second Factory
Address:	2/F, No.25-2, Ji Lin Road, Wen Hua Li, Zhong Li City, Tao Yuan Hsien
Date of Foundation:	2000-7-10
Date of Registration:	2001-3-26
Factory Registration Number:	99626411
Factory Manager:	Shiliang Lv
Status:	In production
Date of Last Annual Return:	2014-7-7
Major Products:	199 Other chemical products

Branches

1
Name	Lu Zhu Branch
Registration Number	84894209
Date of Registration	1994-7-5
Status	Dissolved
Manager Name	Mingzhao Su
Date of Last Annual Return	2001-5-31
2
Name	Eternal Materials Co., Ltd. Ping-Nan Branch
Former Name	Eternal Chemical Co., Ltd. Ping-Nan Branch
Address	1F, 23, Ping-Nan Rd., Ping-Nan Industrial Zone, Fang-Liao Hsiang, Ping Tung Hsien
Registration Number	84309782
Date of Registration	1994-2-15
Status	Active
Manager Name	Hengning Liao
Date of Last Annual Return	2014-6-12

Related Companies

1
Name	Eternal Technology Corporation
Address	1800 Touchstone Road Colonial Heights, Virginia 23834, U.S.A.
Tel	+1-804-524-8555/524-8557
Fax	+1-804-524-8556
Principal Activities	Sale of dry film photoresist
2
Name	Eternal Chemical Europe B.V.
Address	Noordenweg 24r, 2984 AG Ridderkerk
Tel	+1-804-524-8555/524-8557
Fax	+1-804-524-8556
3
Name	Eternal Electronic Material (Thailand) Co., Ltd.
Address	335/8 Moo 9, Bangna-Trad., Rd., KM 19 Tambol Bangchalong Amphur Bangplee, Samutprakarn 10540
Tel	+662-750-9086/750-9097/750-9147/337-3009
Fax	+662-750-9096
Principal Activities	Sale of dry film photoresist
4
Name	CHOU-KOU Chemical Co., Ltd.
Address	Chou-Kou Kan Bldg., 4th Floor, 1-16-3 Nakamachi, Machida Shi, Tokyo 194-0021, JAPAN
Tel	+81-427-24-1745
Fax	+81-427-29-8039
Principal Activities	Sale of resins for coatings, unsaturated polyester resins, specialty monomer
5
Name	Eternal Photoelectric Material Industry (Yingkou) Co., Ltd.
Address	No.102, Xinhai Street, Yingkou Coastal Industrial Base, Ying Kuo Liaoning, China
Tel	+86-417-293-5000
Fax	+86-417-292-7938
Principal Activities	Sale of dry film photoresist
6
Name	Eternal Chemical (China) Co., Ltd. Shanghai Branch
Address	Floor 12, Xinye Building, No.388, Tianlin Road, Shanghai, China
Tel	+86-21-5490-2200
Fax	+86-21-5490-2389
Principal Activities	Sale of general purpose resins, synthetic resins for coatings, unsaturated polyester resins.
7
Name	Eternal Chemical (Guangdong) Co., Ltd. Guangzhou Branch
Address	Room 2212, FuLi Building, No. 28, Huaxia Road, Tianhe District, Guangzhou, Guangdong, China
Tel	+86-20-8560-8003
Fax	+86-20-8560-8005
Principal Activities	Sale of general purpose resins.

Shareholders

Major Shareholders

Name	Subscription Shares
Guolun Gao	43,248,643
Cifei Xiao	460,217
Huaikun Yang	14,198,851
Wutong Huang	3,231,479
Jinkun Xie	595,524
Yingzhi Gao	16,360,548
Kwang Yang Motor Co., Ltd	101,371,473
Maozheng Chen	5,414,218
Hong Zhang	1,629,571

Shareholder Information:

Registered Name:	Kwang Yang Motor Co., Ltd.
Registered Address:	No. 35, Wanxing Street, Sanmin District, Kaohsiung City, Taiwan
Date of Foundation:	1963-3-22
Registration Number:	75195800
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 5,835,375,000
Paid-up Capital:	NTD 5,835,375,000
Legal Representatives:	Shengxiao Ke
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2014-6-12

Management Information

Core Management

Directors

1
Name		Guolun Gao
Position		Board Chairman
2
Name	Cifei Xiao
Position		Vice Chairman
3
Name	Huaikun Yang
Position		Director
4
Name	Wutong Huang
Position		Director
5
Name	Jinkun Xie
Position		Director
6
Name	Yingzhi Gao
Position		Director
7
Name	Junbin Ke
Position		Director
8
Name	Maozheng Chen
Position		Supervisor
9
Name	Hong Zhang
Position		Supervisor
10
Name	Guolun Gao
Position		Manager
Date of Appointment		2000-6-30
11
Name	Jinkun Xie
Position		Manager
Date of Appointment		2001-1-15
12
Name	Shunren Huang
Position		Manager
Date of Appointment		2001-1-15
13
Name	Jinyuan Chen
Position		Manager
Date of Appointment		2011-2-21
14
Name	Mingren Chen
Position		Manager
Date of Appointment		2011-2-21
15
Name	Shufen Yan
Position		Manager
Date of Appointment		2013-1-1
16
Name	Huikuan Mao
Position		Manager
Date of Appointment		2015-1-1

Personnel Structure

Total Employees

About 4,630 Employees (Group)

Operation Information

Offices & Factories

	Headquarters
Add	No.578, Chien-Kung Rd., Kaohsiung, Taiwan

Production Information

· Subject is engaged in manufacturing of resins materials.

· Subject has factories in Taiwan for production.

· It is introduced that subject obtained the certifications of ISO 9001, ISO 14001, OHSAS 18001.

Purchase Information

· The registered activities of subject:

Business Code	Details
C801040	Synthetic resin manufacturing industry
CC01080	Electronic components manufacturing industry
C802030	Coating and paint manufacturing industry
C802120	Industrial additives manufacturing industry
C801050	Plastic materials manufacturing industry
C805990	Other plastic products manufacturing industry (integrated circuit fabrication with all kinds of pressure sensitive tape)
C801990	Other chemical material manufacturing industry (photoresist, photoelectric chemical materials, packaging materials, chemical mechanical polishing liquid)
C801020	Petrochemical raw materials manufacturing industry
C801010	Basic chemical manufacturing industry
--	Manufacturing and sales of photoresist materials
--	Manufacturing and sales of electronic chemicals
--	Manufacturing and sales of polyhydric alcohol
--	Manufacturing and sales of methyl acrylate and acrylate
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

· The raw materials for production are both purchased at home and abroad.

· It is introduced that subject imports some technology from Japan, USA, Germany, and France.

Sales Information

· Subject is engaged in sale of resins materials

· The major products include resins materials, specialty chemical and electronic chemical materials

· Subject’s sales regions are domestic market and abroad

· Subject’s group has sales office in USA, India, Thailand, The Mainland of China

· Subject’s major customers are manufacturers of plastic products, electronic chemical products and dealers

The detail information of the products is as follows:

Category	Products
Resins materials	Synthetic resins, unsaturated polyester resins.
Specialty chemical	Specialty materials, specialty coatings, encapsulant materials.
Electronic chemical materials	Copper clad laminates, photoresist materials, film materials.

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	Resins materials
Selling Terms	T/T, Cash

Export

Product	Resins materials.
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	5,417,390	4,844,892
Notes receivable, net
Notes receivable, net	2,976,755	2,401,604
Accounts receivable, net
Accounts receivable, net	10,170,908	9,842,927
Inventories
Total inventories	7,039,178	6,551,021
Other current assets
Total other current assets	3,947,392	3,614,714
Total current assets	29,551,623	27,255,158
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	531,263	564,766
Non-current financial assets at cost
Non-current financial assets at cost, net	222,726	216,559
Investments accounted for using equity method
Investments accounted for using equity method, net	1,476,416	1,460,214
Property, plant and equipment
Total property, plant and equipment	13,894,161	13,316,224
Investment property, net
Investment property, net	9,243	9,243
Intangible assets
Total intangible assets	60,292	50,997
Deferred tax assets	357,489	333,565
Other non-current assets
Other non-current assets, others
Total other non-current assets, others	1,161,697	913,444
Total other non-current assets	1,161,697	913,444
Total non-current assets	17,713,287	16,865,012
Total assets	47,264,910	44,120,170
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	3,737,807	4,728,034
Notes payable
Total notes payable	33,375	106,053
Accounts payable
Total accounts payable	2,917,445	3,201,633
Other payables
Total other payables	1,468,538	1,349,325
Current tax liabilities	197,730	249,097
Other current liabilities
Long-term liabilities, current portion
Total long-term liabilities, current portion	2,589,454	2,812,571
Other current liabilities, others	48,309	82,409
Total other current liabilities	2,637,763	2,894,980
Total current liabilities	10,992,658	12,529,122
Non-current liabilities
Long-term borrowings
Total long-term borrowings	9,750,148	7,225,059
Deferred tax liabilities
Total deferred tax liabilities	2,883,372	2,677,211
Other non-current liabilities
Total other non-current liabilities	1,644,267	1,546,971
Total non-current liabilities	14,277,787	11,449,241
Total liabilities	25,270,445	23,978,363
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	10,221,690	9,923,971
Total capital stock	10,221,690	9,923,971
Capital surplus
Capital surplus, additional paid-in capital
Total capital surplus, additional paid-in capital	309,017	309,017
Capital surplus, treasury share transactions	19,642	19,642
Capital surplus, changes in equity of associates and joint ventures accounted for using equity method	31,225	31,210
Total capital surplus	359,884	359,869
Retained earnings
Legal reserve	2,816,677	2,623,697
Special reserve	426,930	426,930
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	4,505,810	4,122,181
Total retained earnings	7,749,417	7,172,808
Other equity interest
Exchange differences on translation of foreign financial statements
Total exchange differences on translation of foreign financial statements	2,727,104	1,909,828
Unrealized gains (losses) on available-for-sale financial assets
Total unrealized gains (losses) on available-for-sale financial assets	420,251	453,754
Total other equity interest	3,147,355	2,363,582
Total equity attributable to owners of parent	21,478,346	19,820,230
Non-controlling interests	516,119	321,577
Total equity	21,994,465	20,141,807
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	40,343,325	38,189,390
Operating costs
Total operating costs	32,563,766	31,344,833
Gross profit (loss) from operations	7,779,559	6,844,557
Gross profit (loss) from operations	7,779,559	6,844,557
Operating expenses
Selling expenses
Total selling expenses	2,041,150	1,814,168
Administrative expenses
Total administrative expenses	1,568,791	1,466,695
Research and development expenses
Total research and development expenses	1,344,123	1,226,904
Total operating expenses	4,954,064	4,507,767
Net operating income (loss)	2,825,495	2,336,790
Non-operating income and expenses
Other income
Interest income
Interest income from bank deposits	167,735	136,639
Total interest income	167,735	136,639
Other income, others	209,962	193,772
Total other income	377,697	330,411
Other gains and losses
Foreign exchange gains	95,643	230,893
Gains on financial assets (liabilities) at fair value through profit or loss	10,064	21,638
Miscellaneous disbursements	86,815	69,527
Other gains and losses, net	18,892	183,004
Finance costs
Finance costs, net	323,224	313,998
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	108,702	76,190
Total non-operating income and expenses	182,067	275,607
Profit (loss) from continuing operations before tax	3,007,562	2,612,397
Tax expense (income)
Total tax expense (income)	694,541	675,167
Profit (loss) from continuing operations	2,313,021	1,937,230
Profit (loss)	2,313,021	1,937,230
Other comprehensive income
Exchange differences on translation	832,305	1,030,811
Unrealized gains (losses) on valuation of available-for-sale financial assets	-33,503	45,513
Actuarial gains (losses) on defined benefit plans	-47,936	13,393
Income tax related to components of other comprehensive income	-8,149	2,277
Other comprehensive income, net	759,015	1,087,440
Total comprehensive income	3,072,036	3,024,670
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	2,303,471	1,929,799
Profit (loss), attributable to non-controlling interests	9,550	7,431
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	3,047,457	3,013,271
Comprehensive income, attributable to non-controlling interests	24,579	11,399
Basic earnings per share
Basic earnings (loss) per share from continuing operations	2.25	1.89
Total basic earnings per share	2.25	1.89
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations	2.25	1.88
Total diluted earnings per share	2.25	1.88

Cash Flows

Unit: NTD/000

Consolidated	2014	2013
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	3,007,562	2,612,397
Profit (loss) before tax	3,007,562	2,612,397
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	1,484,769	1,407,881
Amortization expense	16,120	47,558
Provision (reversal of provision) for bad debt expense	61,975	-5,115
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	-10,064	-21,638
Interest expense	333,994	320,086
Interest income	-167,735	-136,639
Dividend income	-28,441	-22,737
Share of loss (profit) of associates and joint ventures accounted for using equity method	-108,702	-76,190
Loss (gain) on disposal of property, plan and equipment	6,427	2,577
Loss (gain) on disposal of other assets	-1,561	0
Loss (gain) on disposal of investments	-578	-1,326
Impairment loss on non-financial assets	30,766	0
Reversal of impairment loss on non-financial assets	0	-971
Other adjustments to reconcile profit (loss)	22,700	18,547
Total adjustments to reconcile profit (loss)	1,639,670	1,532,033
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in notes receivable	-512,626	-137,463
Decrease (increase) in accounts receivable	-92,188	-1,103,354
Decrease (increase) in inventories	-348,592	-31,352
Decrease (increase) in other current assets	143,870	379,471
Total changes in operating assets	-809,536	-892,698
Changes in operating liabilities
Increase (decrease) in financial liabilities held for trading	10,064	21,190
Increase (decrease) in notes payable	-72,678	58,742
Increase (decrease) in accounts payable	-430,620	-37,122
Increase (decrease) in other payable	135,888	182,715
Increase (decrease) in other current liabilities	-25,820	-30,773
Increase (decrease) in other operating liabilities	48,590	22,328
Total changes in operating liabilities	-334,576	217,080
Total changes in operating assets and liabilities	-1,144,112	-675,618
Total adjustments	495,558	856,415
Cash inflow (outflow) generated from operations	3,503,120	3,468,812
Interest received	177,096	102,952
Dividends received	161,334	274,354
Interest paid	-330,197	-319,779
Income taxes refund (paid)	-610,196	-442,200
Net cash flows from (used in) operating activities	2,901,157	3,084,139
Cash flows from (used in) investing activities
Proceeds from disposal of available-for-sale financial assets	0	67,012
Acquisition of investments accounted for using equity method	0	-58,610
Net cash flow from acquisition of subsidiaries	0	-113,824
Acquisition of property, plant and equipment	-1,873,156	-1,437,631
Proceeds from disposal of property, plant and equipment	12,328	61,164
Acquisition of intangible assets	-26,887	-3,716
Increase in other non-current assets	-252,093	-4,981
Decrease in other non-current assets	7,723	0
Other investing activities	-302,412	-791,112
Net cash flows from (used in) investing activities	-2,434,497	-2,281,698
Cash flows from (used in) financing activities
Increase in short-term loans	-1,116,301	249,688
Decrease in short-term notes and bills payable	0	-449,683
Proceeds from long-term debt	11,193,356	14,541,892
Repayments of long-term debt	-8,932,274	-13,682,573
Increase in guarantee deposits received	770	936
Cash dividends paid	-1,389,356	-1,091,637
Change in non-controlling interests	169,963	14,185
Net cash flows from (used in) financing activities	-73,842	-417,192
Effect of exchange rate changes on cash and cash equivalents	179,680	328,639
Net increase (decrease) in cash and cash equivalents	572,498	713,888
Cash and cash equivalents at beginning of period	4,844,892	4,131,004
Cash and cash equivalents at end of period	5,417,390	4,844,892
Cash and cash equivalents reported in the statement of financial position	5,417,390	4,844,892

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

Trial Number:	2014, sixiongsheng, 147
Date of Trial:	2014-10-24
Reason:	The petition of the public service
Claimant:	Eternal Materials Co., Ltd.
Defendant:	China Suzhou Runhe New Energy Materials Co., Ltd. (Literal Translation)

Special Note

Interview Details

Interview Date	2015-8-24
Name	Ms. Liu
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.23
UK Pound	1	Rs.101.22
Euro	1	Rs.74.33

INFORMATION DETAILS

Analysis Done by :	TRI
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.