MIRA INFORM REPORT

Report No. :	516119
Report Date :	26.06.2018

IDENTIFICATION DETAILS

Name :	FORMOSA PLASTICS CORPORATION
Registered Office :	No.100, Shuiguan Rd., Renwu Dist., Kaohsiung City 81465
Country :	Taiwan
Financials (as on) :	31.12.2017 (Consolidated)
Date of Incorporation :	05.11.1954
Com. Reg. No.:	84708795
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and sales of chemical materials, etc.
No. of Employees :	About 7,000

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 :	Good
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 (31.12.2017)	Current Rating (01.04.2018)
Taiwan	A1	A2

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. These overtures have likely played a role in increasing Taiwan’s total exports, which rose 11% during the first half of 2017, buoyed by strong demand for semiconductors.

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. President TSAI’s administration has made little progress on the domestic economic issues that loomed large when she was elected, including concerns about stagnant wages, high housing prices, youth unemployment, job security, and financial security in retirement. TSAI has made more progress on boosting trade with South and Southeast Asia, however, which may help insulate Taiwan’s economy from a fall in mainland demand should China’s growth slow in 2018.

Source : CIA

Contact Points

Company Name:	Formosa Plastics Corporation
Supplied Name:	Formosa Plastics Corporation
Trading Address:	No. 201 Tung Hwa North Road Taipei, Taiwan, R.O.C.
Supplied Address:	4F, 201, Tung Hwa North Road , Taipei Taiwan.,, - - -, Taiwan
Telephone Number:	+886-2-2712-2211
Fax Number:	+886-2-2717-5287
Website:	www.fpc.com.tw

Notes: The exact name and address are as above.

Company Identification Details

Registered Name:	Formosa Plastics Corporation
Registered Address:	No.100, Shuiguan Rd., Renwu Dist., Kaohsiung City 81465, Taiwan (R.O.C.)
Date of Foundation:	1954-11-05
Registration Number:	75708007
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 63,657,407,810 (USD 2,164,351,865.54) (As of 2018.5, 1 NTD = 0.034 USD)
Paid-up Capital:	NTD 63,657,407,810 (USD 2,164,351,865.54)
Legal Representatives:	Jiannan Lin
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sales of chemical materials, etc.
Staff:	About 7,000 Employees
Listed at Stock Exchange:	Yes; Stock Symbol:1301
Date of Last Annual Return:	2017-12-19

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

History

Subject was incorporated on 1954-11-05 with registered number 75708007 as Joint Stock Company in Taiwan.

Subject listed on Taiwan Stock Exchange on 1964-07-27.

Corporate Structure

Factories

1
Name:	The 4^th Factory
Address:	No.5, Jianji St., Qianzhen Dist., Kaohsiung City, Taiwan (R.O.C.)
Date of Foundation:	1991-03-22
Date of Registration:	1991-12-18
Factory Registration Number:	64004717
Factory Manager:	Qilin Cai
Status:	In Production
Date of Last Annual Return:	2018-01-08
Major Products:	199 Other chemical products
2
Name:	Dongshan Factory
Address:	No.201, Dongfu Rd., Dongcheng Village, Dongshan Township, Yilan County, Taiwan (R.O.C.)
Date of Registration:	2016-03-18
Factory Registration Number:	02000220
Factory Manager:	Weijian Li
Status:	In Production
Date of Last Annual Return:	2016-03-18
Major Products:	089 Other food (dietary supplement, calcium oxide)

Branches

1
Name	Mailiao Branch
Registration Number	84896537
Date of Registration	1994-09-09
Date of Last Annual Return	2014-07-31
2
Name	Hsinkang Branch
Registration Number	84708802
Date of Registration	1994-03-07
Date of Last Annual Return	2009-03-25
3
Name	Yilan Branch
Registration Number	84708795
Date of Registration	1994-03-07
Date of Last Annual Return	2015-05-20

Shareholders

MAJOR SHAREHOLDERS

Name	Subscription Shares
Formosa Chemicals & Fibre Corp.
486,978,692
Nan Ya Plastics Corporation	294,793,105
Formosa Petrochemical Corporation	131,460,365
Zhicun Li	632,541
Xuehong Wang	7,369,380
Guoxiong Wu	134,537
Minting He	27,824,363
Wenqin Xiao	6,685

Shareholders’ Information

1
Registered Name:	Formosa Chemicals & Fibre Corp.
Registered Address:	No. 359, Chungshan Road, Sec. 3, Chang Hwa City, Chang Hwa County, Taiwan, R.O.C.
Date of Foundation:	1965-03-05
Registration Number:	58650902
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 58,611,862,910
Paid-up Capital:	NTD 58,611,862,910
Legal Representatives:	Wenyuan Wang
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2018-02-02
2
Registered Name:	Nan Ya Plastics Corporation
Registered Address:	No.101, Shuiguan Rd., Renwu Dist., Kaohsiung City 81465, Taiwan (R.O.C.)
Date of Foundation:	1958-08-22
Registration Number:	75370905
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 79,308,215,890
Paid-up Capital:	NTD 79,308,215,890
Legal Representatives:	Jiazhao Wu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2017-07-04
3
Registered Name:	Formosa Petrochemical Corporation
Registered Address:	No.1-1, Formosa Plastic Group Industrial Zone, Mai-Liao Township, Yunlin County, Taiwan, R. O. C.
Date of Foundation:	1992-04-06
Registration Number:	86522210
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 95,259,596,520
Paid-up Capital:	NTD 95,259,596,520
Legal Representatives:	Baolang Chen
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2017-12-19

Management Information

Core Management

Directors

1
Name		Jiannan Lin
Position		Chairman of the Board & Manager
Date of Appointment for Manager		2015-08-11
2
Name	Wenyuan Wang
Position		Executive Director
3
Name	Ruihua Wang
Position		Executive Director
4
Name	Wenchao Wang
Position		Executive Director
5
Name	Qilin Wei
Position		Executive Director
6
Name	Qingji Wu
Position		Independent Director
7
Name	Deshan Wang
Position		Independent Director
8
Name	Zhichun Li
Position		Director
9
Name	Xuehong Wang
Position		Director
10
Name	Guoxiong Wu
Position		Director
11
Name	Minting He
Position		Director
12
Name	Chengzhong Cheng
Position		Director & Manager
Date of Appointment for Manager		2009-06-05
13
Name	Wenqin Xiao
Position		Director
14
Name	Tianxiang Li
Position		Manager
Date of Appointment		2010-12-24
15
Name	Guangming Chen
Position		Manager
Date of Appointment		2011-06-20
16
Name	Jianshan Yang
Position		Manager
Date of Appointment		2013-03-25
17
Name	Jinlong Huang
Position		Manager
Date of Appointment		2013-03-25
18
Name	Qinglian Huang
Position		Manager
Date of Appointment		2014-08-11
19
Name	Dongqin Ji
Position		Manager
Date of Appointment		2014-08-11
20
Name	Shengguan Lin
Position		Manager
Date of Appointment		2017-03-23
21
Name	Zhenglong Wu
Position		Manager
Date of Appointment		2016-05-09

Personnel Structure

Total Employees

About 7,000 Employees

Operation Information

Offices & Factories

	Headquarters
Add	No. 201 Tung Hwa North Road Taipei, Taiwan, R.O.C.

Production Information

· Subject is engaged in manufacturing of chemical materials, etc.

· Subject has factories in Taiwan for production.

· Subject obtained the certification of ISO 14000, ISO 14001 and OHSAS 18001.

· Some of subject’s annual production capacity information as follows for reference.

Product	Annual Production Capacity
HDPE	566,000 MT
MMA	98,000 MT
MTBE	174,000 MT
PVC resins	1,305,000 MT
VCM	1,580,000 MT
MBS	19,700 MT
PA	25,000 MT
EVA/LDPE	240,000 MT
LLDPE	264,000 MT
Acrylic Fiber	43,800 MT
Acrylic Acid & Esters	268,000 MT

Purchase Information

The registered activities of subject:

Business Code	Details
B202010	Industry of non-metal.
C199990	Manufacturing of undivided other food.
C801010	Industry of basic chemistry.
C801020	Manufacturing of petrochemical materials.
C801100	Manufacturing of synthetic resin and plastic cement.
C801120	Manufacturing of artificial fiber.
C801990	Manufacturing of other chemical materials.
C802120	Manufacturing of industrial additives.
C802170	Manufacturing of toxic chemicals.
C805020	Manufacturing of plastic films and bags.
C901070	Manufacturing of stone products.
CB01010	Manufacturing of machinery.
CC01080	Manufacturing of electronic components.
D101050	Manufacturing of cogeneration industry.
D301010	Operating of tap water.
D401010	Heat supply industry.
E603050	Automatic control equipment engineering industry.
H701010	Development, renting and sales of residence and building.
H701040	Development of specific area.
ID01010	Certifying of instruments for measuring distance, area and weight.
IZ99990	Servicing of other trading business.
J101050	Servicing of environment monitoring.
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

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

· It is introduced that subject imports some technologies from Japan, etc.

We obtain some detail purchase information about raw materials as follows for reference.

Raw Material	Original Area
Ethylene	Taiwan, Japan, etc.
Propylene	Taiwan
Dust Coal	Taiwan, Indonesia, etc.
VCM	Japan, Taiwan, etc.
EDC	Taiwan
Salt	Japan, etc.
AN	Taiwan

Sales Information

· Subject is engaged in sales of chemical materials, etc.

· The major products include plastic materials and calcium carbide products, etc.

· It is introduced that subject has 8 major departments include plastic, acrylic fiber, carbide, plastic processing, polyolefin, chemicals, electronics and polypropylene, etc.

· Subject’s sells regions include Taiwan, Korea, India, Southeast Asia, America, etc.

· Some partners of the subject are Fujitsu Hitachi Plasma Display Corporation and AU Optronics Corporation, etc.

Major Products

Plastic products	Shopping bag, garbage bag, breathable film, etc.
Plastic materials	Hydrochloric acid, MBS, PVC resins, VCM, caustic soda, HDPE, EVA/LDPE and LLDPE, etc.
Calcium carbide products	Optimal calcium, calcium carbide, calcium carbonate, quicklime and Light calcium glue, etc.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

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

Import

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

Sales

Domestic Markets

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

Export

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

FINANCIALS

BALANCE SHEET

Unit: NTD/000

Consolidated	2017-12-31	2016-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	18,165,145	19,877,489
Current available-for-sale financial assets
Current available-for-sale financial assets, net	111,581,327	97,540,570
Notes receivable, net
Notes receivable, net	3,051,878	1,848,538
Accounts receivable, net
Accounts receivable, net	7,971,516	7,950,710
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	4,911,470	3,928,282
Other receivables
Other receivables, net	1,304,199	1,077,364
Other receivables due from related parties
Other receivables due from related parties, net	15,665,975	19,845,448
Inventories
Total inventories	17,617,600	17,140,140
Other current assets
Total other current assets	3,943,126	4,150,892
Total current assets	184,212,236	173,359,433
Non-current assets
Non-current financial assets at cost
Non-current financial assets at cost, net	18,538,315	18,002,509
Investments accounted for using equity method
Investments accounted for using equity method, net	194,029,840	181,413,222
Property, plant and equipment
Total property, plant and equipment	69,094,450	73,367,695
Intangible assets
Total intangible assets	431,315	489,499
Deferred tax assets	2,156,300	1,392,907
Other non-current assets
Total other non-current assets	7,608,580	7,640,807
Total non-current assets	291,858,800	282,306,639
Total assets	476,071,036	455,666,072
Liabilities and equity
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	14,921,759	25,020,737
Short-term notes and bills payable
Short-term notes and bills payable	9,495,509	9,999,566
Total short-term notes and bills payable	9,495,509	9,999,566
Accounts payable
Total accounts payable	4,052,981	4,561,147
Accounts payable to related parties
Total accounts payable to related parties	8,452,435	7,691,854
Other payables
Total other payables	3,480,988	2,410,380
Other payables to related parties	5,424,029	1,497,978
Other current liabilities
Long-term liabilities, current portion
Bonds payable, current portion	5,696,600	10,742,038
Long-term borrowings, current portion	6,737,722	5,997,635
Total long-term liabilities, current portion	12,434,322	16,739,673
Other current liabilities, others	13,012,233	12,534,597
Total other current liabilities	25,446,555	29,274,270
Total current liabilities	71,274,256	80,455,932
Non-current liabilities
Bonds payable
Total bonds payable	27,861,638	26,566,185
Long-term borrowings
Total long-term borrowings	9,893,975	14,842,298
Deferred tax liabilities
Total deferred tax liabilities	14,464,611	13,109,101
Other non-current liabilities
Net defined benefit liability, non-current	7,262,543	7,067,119
Other non-current liabilities, others	303,847	554,950
Total other non-current liabilities	7,566,390	7,622,069
Total non-current liabilities	59,786,614	62,139,653
Total liabilities	131,060,870	142,595,585
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	63,657,408	63,657,408
Total capital stock	63,657,408	63,657,408
Capital surplus
Total capital surplus	11,649,929	11,428,970
Retained earnings
Legal reserve	52,165,530	48,226,276
Special reserve	51,285,206	46,721,324
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	78,699,082	67,703,039
Total retained earnings	182,149,818	162,650,639
Other equity interest
Total other equity interest	87,553,011	75,333,470
Total equity attributable to owners of parent	345,010,166	313,070,487
Total equity	345,010,166	313,070,487
Total liabilities and equity	476,071,036	455,666,072

PROFIT AND LOSS ACCOUNT

Unit: NTD/000

Consolidated	2017	2016
Operating revenue
Total operating revenue	206,709,755	180,173,192
Operating costs
Total operating costs	173,240,579	155,873,996
Gross profit (loss) from operations	33,469,176	24,299,196
Gross profit (loss) from operations	33,469,176	24,299,196
Operating expenses
Selling expenses
Total selling expenses	5,778,400	5,318,083
Administrative expenses
Total administrative expenses	4,784,185	5,175,491
Research and development expenses
Total research and development expenses	968,395	788,409
Total operating expenses	11,530,980	11,281,983
Net operating income (loss)	21,938,196	13,017,213
Non-operating income and expenses
Other income
Total other income	6,241,452	5,288,122
Other gains and losses
Other gains and losses, net	-1,642,268	-1,715,509
Finance costs
Finance costs, net	1,527,802	1,400,343
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	29,894,765	28,624,466
Total non-operating income and expenses	32,966,147	30,796,736
Profit (loss) from continuing operations before tax	54,904,343	43,813,949
Tax expense (income)
Total tax expense (income)	5,521,490	4,421,406
Profit (loss) from continuing operations	49,382,853	39,392,543
Profit (loss)	49,382,853	39,392,543
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	-577,649	-559,495
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
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	-121,817	93,130
Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	-98,200	-95,114
Components of other comprehensive income that will not be reclassified to profit or loss	-601,266	-371,251
Components of other comprehensive income that will be reclassified to profit or loss
Exchange differences on translation	-6,363,713	-4,325,453
Unrealised gains (losses) on valuation of available-for-sale financial assets	14,838,705	13,334,020
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	2,508,328	1,298,980
Income tax related to components of other comprehensive income that will be reclassified to profit or loss	-1,236,221	-341,738
Components of other comprehensive income that will be reclassified to profit or loss	12,219,541	10,649,285
Other comprehensive income, net	11,618,275	10,278,034
Total comprehensive income	61,001,128	49,670,577
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	49,382,853	39,392,543
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	61,001,128	49,670,577
Basic earnings per share
Basic earnings (loss) per share from continuing operations	7.76	6.19
Total basic earnings per share	7.76	6.19

CASH FLOWS

Unit: NTD/000

Consolidated	2017	2016
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	54,904,343	43,813,949
Profit (loss) before tax	54,904,343	43,813,949
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	7,904,294	8,362,993
Amortization expense	545,805	599,995
Provision (reversal of provision) for bad debt expense	-1,678	1,747
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	0	0
Interest expense	1,527,802	1,400,343
Interest income	-483,538	-364,369
Dividend income	-5,606,734	-4,771,936
Share of loss (profit) of associates and joint ventures accounted for using equity method	-29,894,765	-28,624,466
Loss (gain) on disposal of property, plant and equipment	-9,851	-324
Property, plant and equipment transferred to expenses	0	0
Loss (gain) on disposal of investments	-1,762,716	0
Impairment loss on non-financial assets	2,347,867	0
Unrealized foreign exchange loss (gain)	110,414	-268,508
Other revenue, overdue dividends and compensation of board and directors	0	0
Total adjustments to reconcile profit (loss)	-25,323,100	-23,664,525
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in notes receivable	-1,203,340	66,247
Decrease (increase) in accounts receivable	-68,277	-1,875,198
Decrease (increase) in accounts receivable due from related parties	-983,188	-399,123
Decrease (increase) in other receivable	-214,914	49,548
Decrease (increase) in other receivable due from related parties	-63,700	5,681,948
Decrease (increase) in inventories	-570,634	705,242
Decrease (increase) in other current assets	207,550	350,572
Total changes in operating assets	-2,896,503	4,579,236
Changes in operating liabilities
Increase (decrease) in accounts payable	-767,294	215,897
Increase (decrease) in accounts payable to related parties	760,581	1,042,620
Increase (decrease) in other payable	-824,589	-514,763
Increase (decrease) in other payable to related parties	145,079	8,695
Increase (decrease) in other current liabilities	398,591	1,043,098
Increase (decrease) in net defined benefit liability	-382,226	-2,368,608
Total changes in operating liabilities	-669,858	-573,061
Total changes in operating assets and liabilities	-3,566,361	4,006,175
Total adjustments	-28,889,461	-19,658,350
Cash inflow (outflow) generated from operations	26,014,882	24,155,599
Interest received	475,019	336,821
Dividends received	22,771,652	17,940,059
Interest paid	-1,459,944	-2,005,757
Income taxes refund (paid)	-1,720,079	-3,878,393
Net cash flows from (used in) operating activities	46,081,530	36,548,329
Cash flows from (used in) investing activities
Acquisition of available-for-sale financial assets	0	-4,918,250
Proceeds from disposal of available-for-sale financial assets	2,560,664	0
Acquisition of financial assets at cost	-1,737,518	-29,223
Acquisition of investments accounted for using equity method	-1,989,918	-2,643,960
Acquisition of property, plant and equipment	-6,710,685	-3,412,447
Proceeds from disposal of property, plant and equipment	18,903	5,794
Increase in other receivables due from related parties	0	-9,677,158
Decrease in other receivables due from related parties	4,238,401	0
Increase in other non-current assets	-475,640	0
Decrease in other non-current assets	0	227,237
Net cash flows from (used in) investing activities	-4,095,793	-20,448,007
Cash flows from (used in) financing activities
Increase in short-term loans	338,088,287	233,730,759
Decrease in short-term loans	-347,987,424	-221,119,522
Increase in short-term notes and bills payable	0	10,000,000
Decrease in short-term notes and bills payable	-504,057	0
Proceeds from issuing bonds	6,988,624	0
Repayments of bonds	-10,750,000	-14,650,000
Proceeds from long-term debt	3,049,851	4,521,240
Repayments of long-term debt	-6,817,635	-3,186,682
Increase in other payables to related parties	3,780,972	0
Decrease in other payables to related parties	0	-1,312,547
Decrease in other non-current liabilities	-39,234	-199,959
Cash dividends paid	-29,224,705	-23,360,116
Net cash flows from (used in) financing activities	-43,415,321	-15,576,827
Effect of exchange rate changes on cash and cash equivalents	-282,760	-402,728
Net increase (decrease) in cash and cash equivalents	-1,712,344	120,767
Cash and cash equivalents at beginning of period	19,877,489	19,756,722
Cash and cash equivalents at end of period	18,165,145	19,877,489
Cash and cash equivalents reported in the statement of financial position	18,165,145	19,877,489

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

Banker

Name:

Mega International Commercial Bank Co., Ltd

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

Department

Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 68.14
UK Pound	1	INR 90.27
Euro	1	INR 79.34
TWD	1	INR 2.24

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

INFORMATION DETAILS

Analysis Done by :	PRA
Report Prepared by :	SUJ

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.