MIRA INFORM REPORT

Report No. :	491665
Report Date :	17.02.2018

IDENTIFICATION DETAILS

Name :	SHIN LI CHANG CO., LTD.
Registered Office :	No.28-1, Tudun Ln., Tianwei Township, Changhua County 52241, , R. O. C.
Country :	Taiwan
Date of Incorporation :	26.12.1991
Com. Reg. No.:	86435813
Legal Form :	Private limited company
Line of Business :	Production and sale of various kinds of fur and processed split leather
No. of Employees :	60

RATING & COMMENTS

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

MIRA’s Rating :

B

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

Status :	Moderate
Payment Behaviour :	Unknown
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

GIVEN DATA OF SUBJECT COMPANY

Given Name：	SHIN LI CHENG CO LTD
Given Address：	NO 28-1, TU DON LANE, SHIN DIN, TSUEN, TANWEI SHIANG, CHANG HUA, TAIWAN ROC
Verification Remark：	The given address refers to that of subject company’s： Present Operating Office Present Registered Office Factory

ESSENTIAL CORPORATE INFORMATION

Registration No.：			86435813
English Company Name：			SHIN LI CHANG CO., LTD.
Registered Address in English：			No.28-1, Tudun Ln., Tianwei Township, Changhua County 52241, Taiwan, R. O. C.
Address of Operating Office：			Same as above
URL：	http://www.twslc.com.tw/
E-mail：	shinli.chang@msa.hinet.net
TEL：	+886-4-8831415
FAX：	+886-4-8830866
Established on：	December 26, 1991
No. of Employees：	60
Business Type：	Manufacturing Service Banking/Financing
NACE Code：	1420	1511
Business Size：	Super Large Large Medium Medium-Small Small
Legal Form：	Private limited company
Business Prospect：	Moderate
Credit Rating：	Not enough information and data could be obtained to facilitate the rating.

FACTORY AND BRANCH

Item		Address	Registration No.	Tel.	Fax.
	Factory	No.28-1, Tudun Ln., Tianwei Township, Changhua County 52241	99650535	+886-4-8831415	+886-4-8830866

AFFILIATE

Registration No.		Company Name		Registered Person-in-Charge	Relationship to Subject Company
			English
	22238366	REE CHANG CO., LTD.		Chiu, Wen-Shu	Affiliate	Subsidiary
Information provided by Ms. Chiu, Hui-Ling at accounting dept.

HISTORY

Change in Company Name/Form
	Subject company has kept its present name and form since its establishment.

CAPITAL INCREASE/DECREASE

	Current registered capital read NT$ 39,500,000 (fully paid-up) at the time of establishment.
Subsequent Capital Increase/Decrease
	NIL

PLAN FOR CAPITAL INCREASE/DECREASE & STOCK LISTING – NIL

ACTUAL BUSINESS ITEMS/ ACTIVITIES

1.	Production and sale of various kinds of fur and processed split leather, etc.

MAIN SHAREHOLDERS

Name		Position	Stake (NT$)	Ratio (%)	Note
	Chiu, Wen-Cheng	Chairman	17,500,000	44.30	Younger brother/Father
	Chiu, Wen-Shu	Director	9,000,000	22.78	Elder brother
	Chiu, Wei-Ming	Director	3,750,000	9.49	Son
	Chiang, Shu-Chen	Supervisor	2,000,000	5.06	Mother
Total No. of Shareholders：

CORPORATE SHAREHOLDER OVERVIEW – NIL

RELATIONSHIP BETWEEN MAIN SHAREHOLDERS

Spouse	Parent/Children	Siblings	Relatives/In-Laws	Schoolmates
Associates	Friends	Members in Same Business Group		Institutional Investors
Others (specified as follows)：

MANAGEMENT

（CHAIRMAN AND GENERAL MANAGER）

Chairman cum General Manager（President）
Name (Chinese)：			English：		Chiu, Wen-Cheng		Sex：	Male	ID No.：		Declined
	Date of Birth：	In his 60s
	Place of Birth：	Taiwan
	Education：	Junior high school graduate
	Experience：	Declined
	Years in Subject Company’s Line of Business：					More than 30 years
	Other Business Investments									Position
	Company Name			English Company Name
				REE CHANG CO., LTD.						Director
Information provided by Ms. Chiu, Hui-Ling at accounting dept.

PREMISES

	Registered cum Operating Office, Factory：
	The self-owned premise reports a total floor space of 875.44 square meters and is registered under the name of SHIN LI CHANG CO., LTD.. The premise has been mortgaged to Mega International Commercial Bank at a maximum mortgage value of NT$60,000,000 for a term of 30 years starting on August 30, 2014.
Note：Information related to ownership status of subject premises is obtained from computerized official records issued by local land administration authority.

MAJOR PRODUCTION FACILITY

Equipment		Quantity
	Staking machine, Color spray machine, Pressing machine, Dyeing durm, Cage Drum, Buffing machine	Adequate

MORTGAGE RECORD OF MOVEABLE PROPERTIES

	NIL
Source：Information obtained from official records kept by relevant government authorities.

DOMESTIC SUPPLIERS

Raw Material / Product		Supplier		Payment Term
	Rawhide, Splitting leather, Dyeing agent		Traders in related fields		30-60 Day Post-Dated Check (100%)

OVERSEAS SUPPLIERS

Raw Material/ Products		Country/Region
	Rawhide, Splitting leather	China, Hong Kong, Uruguay, Argentina, Other Latin American countries
	Payment Terms
	L/C (80%) T/T (20%)

BRAND NAMES OF PRODUCTS LICENSED FOR SALE BY SUBJECT COMPANY

Subject company declines the brand name carried.

DOMESTIC CUSTOMERS

Raw Material / Product		Customer		Payment Term
	Various kinds of fur & processed split leather		Shoe & leather manufacturers in related fields		Based on agreed terms

MAIN DOMESTIC SALES CHANNELS – NIL

OVERSEAS CUSTOMERS

Raw Material/ Products		Country/Region
	Various kinds of fur & processed split leather	China, Hong Kong, India, Bangladesh, Vietnam, Indonesia, Thailand, Other SE Asian countries
	Payment Terms
	L/C (10%) T/T (90%)

OVERSEAS PRODUCTION BASES / SALES OUTLETS

Subject company claims to have no oversea production stations.

COMPLIANCE WITH LOCAL / INTERNATIONAL STANDARDS – NIL

BANKERS

	Mega International Commercial Bank, Beidou Branch	Account No.：Declined
	Active since：Declined	Current Status：Normal Dishonored
	Taichung Commercial Bank, Beidou Branch	Account No.：
	Active since：Declined	Current Status：Normal Dishonored
Information provided by Ms. Chiu, Hui-Ling at accounting dept.

PAYMENT RECORD

As of Feb. 09, 2018, relevant records obtained from Clearing House indicate：
	No dishonored banking record filed against subject company during the past three years.
	No dishonored banking record filed against subject company’s registered person-in-charge during the past three year.

STATUS QUALIFIED GOVERNMENT SUPPLIER

	Subject company’s status as a qualified government supplier has not been suspended during the past one year.
Source：Public Construction Commission, Executive Yuan, and relevant government agencies.

LITIGATION/COURT RECORD

	Subject company has been involved in neither litigation nor legal proceeding during the past two years.
Source：Gazettes by the Judicial Yuan of the Republic of China.

INTELLECTUAL PROPERTY（PATENT and TRADEMARK）

		No patent is found registered under the name of subject company.
		A total of 1 trademarks is found registered under the name of subject company；the most recent 5 items are listed as follows for reference：
No.			Registration No.	Trademark
	1		01524998	SHIN LI CHANG S.L.C
Source：Intellectual Property Office, Ministry of Economic Affairs, R.O.C.

OPERATING INCOME 2014~2016（NT$：1,000）

Subject company declines to reveal related information for security reasons.

TRADE RECORD（USD）

YEAR		TOTAL IMPORT	TOTAL EXPORT
2016		9,000,000-10,000,000	5,000,000-6,000,000
2015		8,000,000-9,000,000	6,000,000-7,000,000
2014		16,245,622	11,195,186
	Source：Public records at Bureau of Foreign Trade

01/01~12/31, 2016：BREAKDOWN OF SALES BY PRODUCTS（NT$：1,000）

Subject company declines to reveal related information for security reasons.

SALES PERFORMANCE 01~11, 2017（NT$：1,000）

－－

FINANCIAL PROFILE（NT$：1,000）

Subject company declines to reveal related information for security reasons.

BANK LINE OF CREDIT

YES, (summarized as follows)：However, subject declined to reveal the total credit limit.

CORPORATE RANKING 2014~2016

Category	2016	2015	2014
By Import/Export Performance	－－	－－	1,790
The Corporate ranking of subject company is based on the Top 1000 Largest Corporations in Taiwan published annually by Common Wealth Magazine and Directory of Leading Importers & Exporters in Taiwan published by Ministry of Economic Affairs

SUMMARY

Subject company’s attitude toward reporting： Wary but generally cooperative
	Subject is specialized in production and sale of various kinds of fur and processed split leather, etc.. Product items include general fur, mercerizing fur, super mercerizing fur, spill-resistant fur, waterproof fur, pressure fur, punching fur, special fur, foil fur, flocking fur, wax fur and print fur, mainly relying on sale of various kinds of fur. Its products are widely applied in several industries such as shoe making, leather products and purse.
	Approximately 90.00% of the business products or needed raw materials are imported from overseas suppliers at China, Hong Kong, Uruguay, Argentina and other Latin American countries. The rest 10.00% of them are procured from domestic traders in related fields.
	Subject relies mainly on export/domestic sale that accounts for approximately 60.00% of its total business revenues. Major export markets include China, Hong Kong, India, Bangladesh, Vietnam, Indonesia, Thailand and other SE Asian countries, etc. The rest 40.00% business revenues are contributed by domestic shoe & leather manufacturers in related fields.
	Financial information is considered as business confidentiality and subject refuses to release them. Secondary source indicates that its self-owned capital appears to be inadequate, load of liabilities and/or loans from shareholders seem to be a bit heavy; short-term solvency is insufficient. Sales in recent years appears steady with an approximate annual sale around NT$ 100 to 500 millions.
	Maximum credit limits ought not to exceed USD 398,000.

RESULT OF MEDIA SEARCH

No adverse news or reports related to subject company and its registered person-in-charge have been identified during the past two years.

OUR COMMENTS

Credit or business dealings with subject company are deemed acceptable while monitoring on a regular basis remains desirable. But not enough information and data could be obtained to facilitate the rating.

● APPENDICES - NIL

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.91
UK Pound	1	INR 90.31
Euro	1	INR 80.17
TWD	1	INR 2.21

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

INFORMATION DETAILS

Analysis Done by :	VAR
Report Prepared by :	TRU

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.