MIRA INFORM REPORT

Report No. :	489578
Report Date :	01.02.2018

IDENTIFICATION DETAILS

Name :	ETERNAL MATERIALS CO., LTD.
Formerly Known As :	ETERNAL CHEMICAL CO., LTD.
Registered Office :	No.578, Chien-Kung Rd., Kaohsiung, R.O.C.
Country :	Taiwan
Financials (as on) :	31.12.2016 [Consolidated]
Date of Incorporation :	03.12.1964
Com. Reg. No.:	75339004
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Sales of Chemical Materials.
No. of Employees :	4,896 (As of 2017-3-31)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Excellent
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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
Taiwan	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

TAIWAN - ECONOMIC OVERVIEW

Taiwan has a dynamic capitalist economy that is driven largely by industrial manufacturing, and especially exports of electronics, machinery, and petrochemicals. This heavy dependence on exports exposes the economy to fluctuations in global demand. Taiwan's diplomatic isolation, low birth rate, rapidly aging population, and increasing competition from China and other Asia Pacific markets are other major long-term challenges.

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 of that year, 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 uncertain. President TSAI since taking office in May 2016 has promoted greater economic integration with South and Southeast Asia through the New Southbound Policy initiative and has also expressed interest in Taiwan joining the Trans-Pacific Partnership as well as bilateral trade deals with partners such as the US.

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 with many economies, including China and the US, 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 and has also secured greater market access for its investors on 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 renminbi (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 opportunities for Taiwan’s economy but also pose challenges as political differences remain unresolved and China’s economic growth is slowing. Domestic economic issues loomed large in public debate ahead of the January 2016 presidential and legislative elections, including concerns about stagnant wages, high housing prices, youth unemployment, job security, and financial security in retirement.

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, R.O.C.
Supplied Address:	578, CHIEN-KUNG ROAD, KAOHSIUNG,
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:	1964-12-03
Registration Number:	75339004
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 12,000,000,000 (USD 360,000,000 ) (As of 2017.11, 1 NTD = 0.03 USD)
Paid-up Capital:	NTD 11,591,396,770 (USD 347,741,903 )
Legal Representatives:	Guolun Gao
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sales of chemical materials, etc.
Staff:	4,896 Employees (As of 2017-3-31)
Listed at Stock Exchange:	Yes; Stock Code: 1717
Date of Last Annual Return:	2017-08-21

Note: The staff number was obtained from subject’s annual report.

History

Subject was incorporated on 1964-12-03 with registered number 75339004 as Joint Stock Company in Taiwan.

Subject is listed on the Taiwan Exchange Stock on 1994-03-31.

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:	Junlong Wu
Status:	In production
Date of Last Annual Return:	2015-10-14
Major Products:	184 Synthetic resin, plastic and rubber
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:	Bonan Lin
Status:	In Production
Date of Last Annual Return:	2016-01-21
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:	2017-5-31
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:	1997-06-30
Factory Registration Number:	99626421
Factory Manager:	Shiliang Lv
Status:	In production
Date of Last Annual Return:	2014-07-07
Major Products:	199 Other chemical products
5
Name:	The Second Zhong Li Factory
Address:	2/F, No.25-2, Ji Lin Road, Wen Hua Li, Zhong Li City, Tao Yuan Hsien
Date of Foundation:	2000-07-10
Date of Registration:	2001-03-26
Factory Registration Number:	99626411
Factory Manager:	Shiliang Lv
Status:	In production
Date of Last Annual Return:	2014-07-07
Major Products:	199 Other chemical products

Branch

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	1994-02-15
Status	Active
Manager Name	Hengning Liao
Date of Last Annual Return	2014-06-12

Major 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	Sales 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	Sales 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	Sales of resins for coatings, unsaturated polyester resins, specialty monomer, etc.
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	Sales 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	Sales of general purpose resins, synthetic resins for coatings, unsaturated polyester resins, etc.
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	Sales of general purpose resins, etc.

Shareholders

Major Shareholders

Name	Subscription Shares
Guolun Gao	47,189,744
Cifei Xiao	521,885
Huaikun Yang	15,891,496
Wutong Huang	3,664,496
Jinkun Xie	675,323
Yingzhi Gao	18,552,860
Kwang Yang Motor Co., Ltd	114,955,249
Yiheng Chen	370,908

Shareholder Information:

Registered Name:	Kwang Yang Motor Co., Ltd.
Registered Address:	No. 35, Wanxing Street, Sanmin District, Kaohsiung City, Taiwan
Date of Foundation:	1963-03-22
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:	Sheng Ke
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2017-07-10

Management Information

Core Management

Directors

1
Name		Guolun Gao
Position		Board Chairman
2
Name	Cifei Xiao
Position		Director
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	Yiheng Chen
Position		Independent Director
9
Name	Lirong Hong
Position		Independent Director
10
Name	Ruiyuan Xu
Position		Independent Director
11
Name	Guolun Gao
Position		Manager
Date of Appointment		2000-06-30
12
Name	Jinkun Xie
Position		Manager
Date of Appointment		2001-01-15
13
Name	Shunren Huang
Position		Manager
Date of Appointment		2001-01-15
14
Name	Jinyuan Chen
Position		Manager
Date of Appointment		2011-02-21
15
Name	Mingren Chen
Position		Manager
Date of Appointment		2011-02-21
16
Name	Shufen Yan
Position		Manager
Date of Appointment		2013-01-01
17
Name	Huikuan Mao
Position		Manager
Date of Appointment		2015-01-01
18
Name	Cifei Xiao
Position		Manager
Date of Appointment		2016-08-08
19
Name	Hengning Liao
Position		Manager
Date of Appointment		2016-08-08

Personnel Structure

Total Employees

4,896 Employees (As of 2017-3-31)

Operation Information

Offices & Factories

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

Production Information

Subject is engaged in manufacturing of chemical materials, etc.

Subject has factories in Taiwan for production.

It is introduced that subject’s related companies have factories in the Mainland China and USA, etc.

Subject obtained the certification of ISO 9001, ISO 14001, OHSAS 18001, etc.

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 of the subject are purchased from the Mainland China, Japan, Malaysia and South Korea, etc.

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

Subject t has many suppliers such as “Formosa Chemicals & Fibre Corporation”, “UPC Technology Corporation”, “Nan Ya Plastics Corp”, “Dow Chemical” and etc.

Sales Information

Subject is engaged in sales of resins materials, specialty chemical and electronic chemical materials, etc.

The products are mainly applied for decoration materials, electronics and printing, etc.

The major sales regions include Taiwan, the Mainland China, Southeast Asia, Europe and America, etc.

It is introduced that subject has sales offices in USA, India, Thailand and The Mainland China, etc.

Subject’s major customers are manufacturers of plastic products and electronic chemical products, etc.

The detail information of the products is as follows:

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

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Products	Raw materials, etc.
Payment Terms	Cash, T/T and etc.

Import

Products	Raw materials, etc.
Payment Terms	L/C, T/T and etc.

Sales

Domestic Markets

Product	Resins materials, etc.
Selling Terms	T/T, Cash, etc.

Export

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

Balance Sheet

Unit: NTD/000

Consolidated	2016-12-31	2015-12-31
Current assets
Cash and cash equivalents
Total cash and cash equivalents	8,227,218	7,449,271
Notes receivable, net
Notes receivable, net	2,337,711	2,693,295
Notes receivable due from related parties, net
Notes receivable due from related parties, net	9,021	717
Accounts receivable, net
Accounts receivable, net	10,380,709	9,378,643
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	180,070	99,683
Inventories
Total inventories	6,623,633	6,243,811
Non-current assets classified as held for sale, net
Non-current assets classified as held for sale, net	513,563	0
Other current assets
Other current financial assets	671,117	1,803,749
Other current assets, others	1,497,229	1,260,316
Total other current assets	2,168,346	3,064,065
Total current assets	30,440,271	28,929,485
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	556,750	425,968
Non-current financial assets at cost
Non-current financial assets at cost, net	210,681	213,144
Investments accounted for using equity method
Investments accounted for using equity method, net	1,656,064	1,559,535
Property, plant and equipment
Total property, plant and equipment	17,263,366	16,149,813
Investment property, net
Investment property, net	9,243	9,243
Intangible assets
Total intangible assets	38,266	49,428
Deferred tax assets	317,421	416,789
Other non-current assets
Other non-current assets, others
Total other non-current assets, others	1,309,994	1,364,271
Total other non-current assets	1,309,994	1,364,271
Total non-current assets	21,361,785	20,188,191
Total assets	51,802,056	49,117,676
Liabilities and equity
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	3,580,568	2,265,904
Notes payable
Total notes payable	62,764	25,222
Accounts payable
Total accounts payable	3,276,337	2,541,536
Other payables
Other payables, others	2,305,494	1,776,014
Total other payables	2,305,494	1,776,014
Current tax liabilities	212,392	271,562
Liabilities related to non-current assets classified as held for sale	72,659	0
Other current liabilities
Long-term liabilities, current portion
Total long-term liabilities, current portion	3,843,746	2,581,701
Other current liabilities, others	62,702	71,690
Total other current liabilities	3,906,448	2,653,391
Total current liabilities	13,416,662	9,533,629
Non-current liabilities
Long-term borrowings
Total long-term borrowings	12,970,386	12,394,020
Deferred tax liabilities
Total deferred tax liabilities	2,982,204	3,041,197
Other non-current liabilities
Total other non-current liabilities	1,193,575	1,761,075
Total non-current liabilities	17,146,165	17,196,292
Total liabilities	30,562,827	26,729,921
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	11,039,425	10,221,690
Total capital stock	11,039,425	10,221,690
Capital surplus
Total capital surplus	359,900	359,884
Retained earnings
Legal reserve	3,334,188	3,047,024
Special reserve	426,930	426,930
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	5,106,905	5,218,013
Total retained earnings	8,868,023	8,691,967
Other equity interest
Total other equity interest	425,072	2,591,486
Total equity attributable to owners of parent	20,692,420	21,865,027
Non-controlling interests	546,809	522,728
Total equity	21,239,229	22,387,755
Total liabilities and equity	51,802,056	49,117,676
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	2016	2015
Operating revenue
Total operating revenue	38,679,640	38,486,943
Operating costs
Total operating costs	30,097,141	29,740,054
Gross profit (loss) from operations	8,582,499	8,746,889
Gross profit (loss) from operations	8,582,499	8,746,889
Operating expenses
Selling expenses
Total selling expenses	2,261,625	2,129,676
Administrative expenses
Total administrative expenses	1,791,014	1,800,283
Research and development expenses
Total research and development expenses	1,400,267	1,419,503
Total operating expenses	5,452,906	5,349,462
Net operating income (loss)	3,129,593	3,397,427
Non-operating income and expenses
Other income
Interest income
Interest income from bank deposits	111,289	128,372
Total interest income	111,289	128,372
Dividend income	23,060	33,195
Other income, others	236,215	295,144
Total other income	370,564	456,711
Other gains and losses
Gains on disposals of property, plant and equipment	662	0
Gains on financial assets (liabilities) at fair value through profit or loss	0	5,801
Miscellaneous disbursements	102,154	84,068
Losses on disposals of property, plant and equipment	0	11,071
Foreign exchange losses	88,946	118,264
Other gains and losses, net	-190,438	-207,602
Finance costs
Finance costs, net	349,682	310,391
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	232,274	154,975
Total non-operating income and expenses	62,718	93,693
Profit (loss) from continuing operations before tax	3,192,311	3,491,120
Tax expense (income)
Total tax expense (income)	586,156	618,344
Profit (loss) from continuing operations	2,606,155	2,872,776
Profit (loss)	2,606,155	2,872,776
Other comprehensive income
Components of other comprehensive income that will not be reclassified to profit or loss
Gains (losses) on remeasurements of defined benefit plans	-112,277	-103,978
Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss
Gains (losses) on remeasurements of defined benefit plans, associates and joint ventures accounted for using equity method	-6,149	0
Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss	-6,149	0
Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	-19,087	-17,676
Components of other comprehensive income that will not be reclassified to profit or loss	-99,339	-86,302
Components of other comprehensive income that will be reclassified to profit or loss
Exchange differences on translation	-2,101,713	-455,933
Unrealised gains (losses) on valuation of available-for-sale financial assets	-65,518	-105,295
Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss
Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss	-51,509	-7,085
Income tax related to components of other comprehensive income that will be reclassified to profit or loss	-4,728	0
Components of other comprehensive income that will be reclassified to profit or loss	-2,214,012	-568,313
Other comprehensive income, net	-2,313,351	-654,615
Total comprehensive income	292,804	2,218,161
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	2,626,384	2,871,636
Profit (loss), attributable to non-controlling interests	-20,229	1,140
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	357,343	2,229,465
Comprehensive income, attributable to non-controlling interests	-64,539	-11,304
Basic earnings per share
Basic earnings (loss) per share from continuing operations	2.38	2.6
Total basic earnings per share	2.38	2.6
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations	2.37	2.59
Total diluted earnings per share	2.37	2.59

Cash Flows

Unit: NTD/000

Consolidated	2015	2014
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	3,192,311	3,491,120
Profit (loss) before tax	3,192,311	3,491,120
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	1,607,929	1,473,717
Amortization expense	23,284	22,096
Provision (reversal of provision) for bad debt expense	-10,481	91,191
Interest expense	349,682	310,391
Interest income	-111,289	-128,372
Dividend income	-23,060	-33,195
Share of loss (profit) of associates and joint ventures accounted for using equity method	-232,274	-154,975
Loss (gain) on disposal of property, plan and equipment	-662	11,071
Loss (gain) on disposal of other assets	0	-39,997
Loss (gain) on disposal of investments	2,381	0
Impairment loss on non-financial assets	118,650	70,193
Other adjustments to reconcile profit (loss)	27,245	23,418
Total adjustments to reconcile profit (loss)	1,751,405	1,645,538
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in notes receivable	294,147	280,696
Decrease (increase) in notes receivable due from related parties	-8,304	2,047
Decrease (increase) in accounts receivable	-1,728,071	585,144
Decrease (increase) in accounts receivable due from related parties	-88,560	28,717
Decrease (increase) in inventories	-566,651	725,174
Decrease (increase) in other current assets	-391,262	-256,404
Total changes in operating assets	-2,488,701	1,365,374
Changes in operating liabilities
Increase (decrease) in notes payable	37,542	-8,153
Increase (decrease) in accounts payable	996,429	-375,909
Increase (decrease) in other payable	524,453	145,850
Increase (decrease) in other current liabilities	-8,029	27,773
Increase (decrease) in other operating liabilities	-681,025	10,037
Total changes in operating liabilities	869,370	-200,402
Total changes in operating assets and liabilities	-1,619,331	1,164,972
Total adjustments	132,074	2,810,510
Cash inflow (outflow) generated from operations	3,324,385	6,301,630
Interest received	94,928	157,027
Dividends received	189,254	387,959
Interest paid	-389,855	-323,431
Income taxes refund (paid)	-424,897	-637,320
Net cash flows from (used in) operating activities	2,793,815	5,885,865
Cash flows from (used in) investing activities
Proceeds from disposal of financial assets at cost	166	0
Proceeds from capital reduction of financial assets at cost	1,340	18,173
Acquisition of investments accounted for using equity method	-88,107	-289,993
Acquisition of property, plant and equipment	-3,818,579	-3,908,862
Proceeds from disposal of property, plant and equipment	92,545	8,236
Acquisition of intangible assets	-8,597	-6,949
Decrease in other financial assets	1,132,632	1,290,575
Increase in other non-current assets	-298,419	-209,250
Net cash flows from (used in) investing activities	-2,987,019	-3,098,070
Cash flows from (used in) financing activities
Increase in short-term loans	1,474,147	0
Decrease in short-term loans	0	-1,446,203
Proceeds from long-term debt	10,196,067	11,786,757
Repayments of long-term debt	-8,150,586	-9,139,568
Increase in other borrowings	4,624	150,757
Increase in guarantee deposits received	1,257	0
Decrease in guarantee deposits received	0	-676
Cash dividends paid	-1,533,254	-1,839,904
Change in non-controlling interests	88,620	17,913
Net cash flows from (used in) financing activities	2,080,875	-470,924
Effect of exchange rate changes on cash and cash equivalents	-1,070,080	-284,990
Net increase (decrease) in cash and cash equivalents	817,591	2,031,881
Cash and cash equivalents at beginning of period	7,449,271	5,417,390
Cash and cash equivalents at end of period	8,266,862	7,449,271
Cash and cash equivalents reported in the statement of financial position	8,227,218	7,449,271
Other items qualifying for cash and cash equivalents under the definition of IAS 7	39,644	0

Note: Subject didn’t submit its individual financial information; we obtained its consolidated financials as follows for reference.

The above financial figures are based on the IFRSs Accounting System.

Bankers

1
Name	Mega International Commercial Bank
2
Name	First Commercial Bank

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	The Operator

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.69
UK Pound	1	INR 90.35
Euro	1	INR 79.21
TWD	1	INR 2.19

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	PRI
Report Prepared by :	NIT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.