MIRA INFORM REPORT

 

 

Report No. :

342097

Report Date :

23.09.2015

 

IDENTIFICATION DETAILS

 

Name :

ETERNAL STEEL CO., LTD.

 

 

Registered Office :

No.54, Hsing Yeh St., Hsiao Kang Dist., Kaohsiung, R.O.C.

 

 

Country :

Taiwan

 

 

Date of Incorporation :

27.10.1987

 

 

Com. Reg. No.:

22540537

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Trading of Steel Products.

 

 

No. of Employees :

About 35 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 :

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 Steel Co., Ltd.

Supplied Name:

ETERNAL STEEL CO LTD

Trading Address:

No.54, Hsing Yeh St., Hsiao Kang Dist., Kaohsiung, Taiwan, R.O.C.

Supplied Address:

NO.54 HSING YEH ST HSIAO KANG DISTRICT KAOHSIUNG TAIWAN

Telephone Number:

+886-7-871-7971

Fax Number:

+886-7-871-7974

Note: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

Eternal Steel Co., Ltd.

Registered Address:

No.54, Hsing Yeh St., Hsiao Kang Dist., Kaohsiung, Taiwan, R.O.C.

Date of Foundation:

1987-10-27

Registration Number:

22540537

Registry:

Economic Development Board of Kaohsiung City Government

Registered Capital:

NTD 200,000,000 (USD 6,080,000)

(As of 2015.9, 1 NTD = 0.0304 D)

Paid-up Capital:

NTD 200,000,000 (USD 6,080,000)

Legal Representatives:

Kunyao Li

Legal Form:

Joint Stock Company

Principal Activities:

Trading of steel products.

Staff:

About 35 employees

Listed at Stock Exchange:

No

Date of Last Annual Return:

2014-10-27

 

 

History

 

Subject was incorporated on 1987-10-27 with registered number 22540537 as Joint Stock Company in Taiwan.

 

 

Corporate Structure

 

Factory

Address:

No. 52 and No. 54, Xingye Str., Xiaogang Dist., Kaohsiung, Taiwan

Date of Foundation:

1987-9-22

Date of Registration:

1989-4-13

Factory Registration Number:

64004487

Factory Manager:

Kunyao Li

Status:

In production

Date of Last Annual Return:

2013-5-7

Major Products:

259 other metal products

Note: The above information is from local registry, but the relevant staff introduced that the subject does not have production activities at present; the factory is mainly used for cutting steel products. 

 

 

Shareholders

 

Major Shareholders

 

Name

Subscription Shares

Kunyao Li

807,692            

Kunhao Xie

967,637

Bowen Li

307,694

Caigui Li

1,538,462

Shengguo Li

461,538

Ruiyang Li

2,292,309

Ruizheng Li

2,292,309

Zongxian Li

1,846,154

Zongjie Li

1,846,154

Cirui Li

311,604

 

 

Management Information

 

Core Management

 

Directors

1

Name

Kunyao Li

Position

Board Chairman

2

Name

Kunhao Xie

Position

Director & Manager

Date of Appointment of Manager

2013-5-7

3

Name

Bowen Li

Position

Director

4

Name

Caigui Li

Position

Director

5

Name

Shengguo Li

Position

Director

6

Name

Ruiyang Li

Position

Director

7

Name

Ruizheng Li

Position

Director

8

Name

Zongxian Li

Position

Director

9

Name

Zongjie Li

Position

Director

10

Name

Cirui Li

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 35 employees

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

No.54, Hsing Yeh St., Hsiao Kang Dist., Kaohsiung, Taiwan, R.O.C.

 

Production Information

 

Subject is a trader of steel products without any production activities

Subject has a processing factory in Taiwan for cutting and slitting steel products.

 

Purchase Information

 

The registered activities of subject:

1

Sales of the lacquer that bake steel, galvanized steel, aluminium zinc alloy steel plate, steel and iron and other steel products

2

Cutting and processing of the lacquer that bake steel, galvanized steel, aluminium zinc alloy steel plate, steel and iron and other steel products

3

Trading of the above affairs

 

Subject purchases its products from both home and abroad.

It is introduced that subject’s major suppliers include Sheng Yu Steel Co., Ltd, YIEH PHUI ENTERPRISE CO., LTD. and China Steel Corporation, etc.

 

Sales Information

 

Subject is engaged in sale of steel products.

Subject’s major products are steel plate, steel coil, metal board, metal strip, cold-rolled steel coil and hot-rolled steel coil, etc.

It is introduced that subject can provide steel coil cutting and slitting services, steel plate processing service, etc.

Subject’s products are mainly applied in construction industry, machinery and equipment, household appliances and hardware, etc. 

Subject’s sales regions include domestic and oversea market.   

Subject’s major customers are manufacturers of machinery and equipment, household appliances manufacturers, etc.

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Products

Steel products.

Payment Terms

T/T, Cash, etc.

 

Import

Products

Steel products.

Payment Terms

L/C, T/T, etc.

 

Sales

 

Domestic Markets

Product

Steel products.

Selling Terms

T/T, Cash, etc.

 

Export

Product

Steel products.

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

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

Ms. Li

Department

Sale Department

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.63

UK Pound

1

Rs.101.73

Euro

1

Rs.73.26

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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.