MIRA INFORM REPORT

Report No. :	494884
Report Date :	06.03.2018

IDENTIFICATION DETAILS

Name :	FU CHUN SHIN MACHINERY MANUFACTURE CO., LTD.
Registered Office :	No.269, Bao Dong Rd., Guanmiao Dist., Tainan City 718, Taiwan (R.O.C.)
Country :	Taiwan
Financials (as on) :	31.12.2016
Date of Incorporation :	17.07.1991
Com. Reg. No.:	86122164
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Sale of Injection Molding Machines, etc.
No. of Employees :	About 330

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	Acceptable Risk	Business dealings permissible with moderate 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 (30.09.2017)	Current Rating (31.12.2017)
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. 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:	FU CHUN SHIN MACHINERY MANUFACTURE CO., LTD.
Supplied Name:	FU CHUN SHIN MACHINERY MANUFACTURE CO.,LTD
Trading Address:	No.269, Bao Dong Rd., Guanmiao Dist., Tainan City 718, Taiwan (R.O.C.)
Supplied Address:	NO.269,BAO DONG ROAD,PI-TOU VILLAGE, GUAN MIAO DISTRICT,TAINAN CITY,TAIWAN
Telephone Number:	+886-6-595-0688
Fax Number:	+886-6-595-1120
E-mail:	fcs@fcs.com.tw

Notes: The exact name and address are as above.

Company Identification Details

Registered Name:	Fu Chun Shin Machinery Manufacture Co., Ltd.
Registered Address:	No.269, Bao Dong Rd., Guanmiao Dist., Tainan City 718, Taiwan (R.O.C.)
Date of Foundation:	1991-07-17
Registration Number:	86122164
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 1,500,000,000 (USD 49,500,000) (As of 2018.3, 1 NTD = 0.033 USD)
Paid-up Capital:	NTD 1,294,370,320 (USD 42,714,221)
Legal Representatives:	Boxun Wang
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale of injection molding machines, etc.
Staff:	About 330 Employees (Taiwan)
Listed at Stock Exchange:	Yes, Stock Symbol: 6603
Date of Last Annual Return:	2018-01-11

History

Subject was incorporated on 1991-07-17 with registered number 86122164 as Joint Stock Company in Taiwan.

Subject listed on Taiwan Over-The-Counter Securities Exchange on 2004-04-05.

Change of Name

Former Chinese Name:	富強鑫機器股份有限公司
Current Chinese Name:	富強鑫精密工業股份有限公司

Corporate Structure

Factories

1
Address:	No. 269-6, No. 269-10, No. 269, Block A, Bao Dong Rd., Pitou Li, Guanmiao Dist., Tainan City, Taiwan
Date of Foundation:	1986-10-27
Date of Registration:	1988-07-16
Factory Registration Number:	99659196
Factory Manager:	Boxun Wang
Status:	In Production
Date of Last Annual Return:	2010-01-14
Major Products:	292 Other special machinery and equipment 293 General machinery 251 Metal hand tools and molds 220 Plastic products 283 Wires and wiring equipment
2
Name:	2^nd Factory
Address:	No. 269-5, Block D, Bao Dong Rd., Pitou Li, Guanmiao Dist., Tainan City, Taiwan
Date of Registration:	2009-01-13
Factory Registration Number:	99711666
Factory Manager:	Boxun Wang
Status:	In Production
Date of Last Annual Return:	2015-07-31
Major Products:	264 Photoelectric material and components 220 Plastic products

Major Related Companies

1
Name	Fu-Wei Optoelectronics Tech Co., Ltd.
Address:	No. 27, Yatan Rd., Daya Township, Taizhong County, Taiwan
2
Name	Just Nanotech Co., Ltd.
Address:	No.31, Gongye 2nd Rd., Annan Dist., Tainan City 709, Taiwan
Telephone Number:	+886-6-384-1696
Fax Number:	+886-6-384-0425
Email:	service@justnano.com.tw
3
Name	Dongguan Fu Chun Shin Plastic Machinery Manufacturing Co. Ltd
Address:	No.18, Jinxia East Road, Shixia Management District, Dalang Town, Dongguan City, Guangdong Province, China
Telephone Number:	+86-769-8313-9065
Email:	cdg@fcs.com.tw
4
Name	Ningbo Fu Chun Shin Machine Manufacturing Co. Ltd
Address:	No. 115, Haichuan Rd., Jiangbei Dist., Ningbo City, Zhejiang Province, China
Telephone Number:	+86-574-5613-8600
Fax Number:	+86-574-5613-8699
Email:	cnb@fcs.com.tw

Sales Offices

1
Base Name	Mexico
Telephone number	+52-55-2290-9618
Email	mhc_injection1@hotmail.com
2
Base Name	Brazil
Telephone number	+55-11-2727-4494
Email	import@starmach.com.br
3
Base Name	South Africa
Telephone number	+27-11-786-5228
Email	tarina.vw@hestico.co.za
4
Base Name	Poland
Telephone number	+48-22-40-99-118
Email	edward@iebm.pl
5
Base Name	FCS Ningbo
Telephone number	+86-574-5613-8688
Email	cnb@fcs.com.tw
6
Base Name	Dalian
Telephone number	+86-133-8789-5503
Email	andy@fcs.com.tw
7
Base Name	Shenyang
Telephone number	+86-24-2330-5770
Email	andy@fcs.com.tw
8
Base Name	Japan
Telephone number	+886-955-105-800
Email	mei@fcs.com.tw
9
Base Name	Indonesia
Telephone number	+62-21-4587-6121
Email	info@goldenwing.co.id
10
Base Name	Australia
Telephone number	+61-3-9355-7099
Email	gary.tempany@camplas.com.au

Shareholders

Major Shareholders

Name	Subscription Shares
Boxun Wang	11,048,455
Junjie Wang
5,414,708
Fengwei Investment Co. Ltd	3,071,075
Jiamiao Qiu	739,033
Junxian Wang	5,370,305
Junyu Wang	655,979
Suzhen Zhang	3,262,482
Feiru Chen	38,314

Shareholder Information:

Registered Name:	Fengwei Investment Co. Ltd
Registered Address:	No. 69, Lane 226, Sec. 2, Zhonghua East Rd., East Dist., Tainan, Taiwan
Date of Foundation:	1997-05-23
Registration Number:	16012586
Registry:	Tainan City Government
Registered Capital:	NTD 20,100,000
Paid-up Capital:	NTD 20,100,000
Legal Representatives:	Suzhen Zhang
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2015-10-13

Management Information

Core Management

Directors

1
Name	Boxun Wang
Position	Board Chairman
2
Name	Junjie Wang
Position		Vice Board Chairman
3
Name	Bofeng Wang
Position		Director
4
Name	Jiamiao Qiu
Position		Director
5
Name	Junxian Wang
Position		Director
6
Name	Junyu Wang
Position		Director
7
Name	Wenbin Cai
Position		Independent Director
8
Name	Yingfang Huang
Position		Independent Director
9
Name	Suzhen Zhang
Position		Supervisor
10
Name	Zongzheng Wu
Position		Supervisor
11
Name	Feiru Chen
Position		Supervisor

Personnel Structure

Total Employees

About 330 Employees

Operation Information

Offices & Factories

	Headquarters
Add	No.269, Bao Dong Rd., Guanmiao Dist., Tainan City 718, Taiwan (R.O.C.)

Production Information

Subject is engaged in manufacturing of injection molding machines, etc.

Subject has 2 factories in Taiwan for production. It is introduced that subject also has related factories in Mainland China.

Subject obtained the certification of ISO 9001:2000 and CE, etc.

Purchase Information

The registered activities of subject:

Business Code	Details
C805990	Other plastic products manufacturing
CB01010	Machinery equipment manufacturing
CB01990	Other machinery manufacturing
CC01020	Wire and cable manufacturing
CC01030	Electrical appliance and audio-visual electronics manufacturing
CC01080	Electronic components manufacturing
CD01030	Automobile and its parts manufacturing
CD01040	Locomotive and its parts manufacturing
CQ01010	Mold manufacturing
F401010	International trade
H703100	Real estate rental
ZZ99999	Besides licensed business, all other business items those are not banned or restricted

The components and raw material for production are mostly purchased from abroad.

Sales Information

Subject is engaged in sale of injection molding machines, etc.

The major products are injection molding machines, saving injection molding machine, high speed injection molding machine, motorcar parts, wire and cable, etc.

It is introduced that subject’s products are mainly applied to rubber products, electronic products, auto parts industry, etc.

Subject’s sales regions domestic market, Southeast Asia, North America, Middle East, Europe, etc.

The general delivery lead time of subject is about 60 days.

Subject’s major customers are manufacturers of parts, etc.

Major products

Types	Products
Standard	HT Series: HT-30 ~ 150 HT Series: HT-200 ~ 400 HT Series: HT-850 ~ 1420
Power-saving	HT-SV Series: HT-30SV ~ 150SV HT-SV Series: HT-200SV ~ 400SV HT-SV Series: HT-850SV ~ 1420SV
High-speed Precise	AH Series: AH-110 ~ 150 AH Series: AH-200 ~ 300 AF Series: AF-30 ~ 110 AF Series: AF-150 ~ 300
Giant	LM Series: LM-500 ~ 1500 LM Series: LM-1700 ~ 3700
Multi-component	FB-R Series: FB-140R ~ 280R FB-R Series: FB-400R ~ 850R
Thermosetting	BMC Series: BMC-150 ~ 300 BMC Series: BMC-150 ~ 300
Rubber	HR Series: HR-100 ~ 250
Packing Application	AD Series: AD-150 ~ 350 AD Series: AD-600 ~ 1250

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Products	Components and raw materials, etc.
Payment Terms	T/T, Cash, etc.

Import

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

Sales

Domestic Markets

Product	Injection molding machines, etc.
Selling Terms	T/T, Cash, etc.

Export

Product	Injection molding machines, etc.
Selling Terms	L/C, T/T, etc.

Balance Sheet

Unit: NTD/000

Consolidated	2016-12-31	2015-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	385,146	529,856
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	7,912	450
Current bond investment without active market
Total Current investments in debt instrument without active market	496,402	56,950
Notes receivable, net
Notes receivable, net	206,126	229,900
Accounts receivable, net
Accounts receivable, net	1,004,357	880,197
Inventories
Total inventories	750,395	902,072
Other current assets
Total other current assets	106,080	128,933
Total current assets	2,956,418	2,728,358
Non-current assets
Investments accounted for using equity method
Investments accounted for using equity method, net	0	0
Property, plant and equipment
Total property, plant and equipment	1,037,354	1,044,861
Investment property, net
Investment property, net	266,508	264,962
Intangible assets
Total intangible assets	5,791	7,155
Deferred tax assets	71,428	53,338
Other non-current assets
Total other non-current assets	65,700	59,800
Total non-current assets	1,446,781	1,430,116
Total assets	4,403,199	4,158,474
Liabilities and equity
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	447,078	352,194
Short-term notes and bills payable
Total short-term notes and bills payable	104,954	104,909
Current financial liabilities at fair value through profit or loss
Total current financial liabilities at fair value through profit or loss	1,039	641
Notes payable
Total notes payable	120,617	34,232
Accounts payable
Total accounts payable	359,941	186,653
Other payables
Total other payables	240,012	183,584
Current tax liabilities	18,121	9,403
Other current liabilities
Advance receipts
Total advance receipts	163,027	136,344
Long-term liabilities, current portion
Long-term borrowings, current portion	177,696	77,788
Total long-term liabilities, current portion	177,696	77,788
Other current liabilities, others	1,157	866
Total other current liabilities	341,880	214,998
Total current liabilities	1,633,642	1,086,614
Non-current liabilities
Non-current financial liabilities at fair value through profit or loss
Total non-current financial liabilities at fair value through profit or loss	63	333
Bonds payable
Total bonds payable	289,479	286,469
Long-term borrowings
Total long-term borrowings	132,593	439,801
Deferred tax liabilities
Total deferred tax liabilities	364,918	362,751
Other non-current liabilities
Net defined benefit liability, non-current	59,682	71,632
Other non-current liabilities, others	10,414	9,870
Total other non-current liabilities	70,096	81,502
Total non-current liabilities	857,149	1,170,856
Total liabilities	2,490,791	2,257,470
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	1,230,113	1,195,100
Total capital stock	1,230,113	1,195,100
Capital surplus
Total capital surplus	12,302	12,302
Retained earnings
Legal reserve	98,348	95,934
Special reserve	188,685	188,685
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	351,037	294,035
Total retained earnings	638,070	578,654
Other equity interest
Total other equity interest	-41,812	48,773
Treasury shares	32,742	32,742
Total equity attributable to owners of parent	1,805,931	1,802,087
Non-controlling interests	106,477	98,917
Total equity	1,912,408	1,901,004
Total liabilities and equity	4,403,199	4,158,474
Equivalent issue shares of advance receipts for ordinary share	0	0
Number of shares in entity held by entity and by its subsidiaries	2,800,000	2,800,000

Profit and Loss Account

Unit: NTD/000

Consolidated	2016	2015
Operating revenue
Total operating revenue	2,843,933	2,798,034
Operating costs
Total operating costs	2,154,045	2,118,111
Gross profit (loss) from operations	689,888	679,923
Gross profit (loss) from operations	689,888	679,923
Operating expenses
Selling expenses
Total selling expenses	395,235	429,130
Administrative expenses
Total administrative expenses	161,859	154,189
Research and development expenses
Total research and development expenses	58,776	57,254
Total operating expenses	615,870	640,573
Net operating income (loss)	74,018	39,350
Non-operating income and expenses
Other income
Total other income	76,359	41,200
Other gains and losses
Other gains and losses, net	30,061	-10,709
Finance costs
Finance costs, net	18,216	20,448
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	0	-103
Total non-operating income and expenses	88,204	9,940
Profit (loss) from continuing operations before tax	162,222	49,290
Tax expense (income)
Total tax expense (income)	38,291	10,255
Profit (loss) from continuing operations	123,931	39,035
Profit (loss)	123,931	39,035
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	-2,945	-3,656
Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	-500	-622
Components of other comprehensive income that will not be reclassified to profit or loss	-2,445	-3,034
Components of other comprehensive income that will be reclassified to profit or loss
Exchange differences on translation	-116,964	-25,909
Income tax related to components of other comprehensive income that will be reclassified to profit or loss	-18,553	-4,559
Components of other comprehensive income that will be reclassified to profit or loss	-98,411	-21,350
Other comprehensive income, net	-100,856	-24,384
Total comprehensive income	23,075	14,651
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	108,545	24,141
Profit (loss), attributable to non-controlling interests	15,386	14,894
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	15,515	1,329
Comprehensive income, attributable to non-controlling interests	7,560	13,322
Basic earnings per share
Total basic earnings per share	0.90	0.20
Diluted earnings per share
Total diluted earnings per share	0.76	0.19

Cash Flows

Unit: NTD/000

Consolidated	2016	2015
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	162,222	49,290
Profit (loss) before tax	162,222	49,290
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	85,032	94,856
Amortization expense	2,307	2,884
Interest expense	18,216	20,448
Interest income	-29,486	-27,435
Share of loss (profit) of associates and joint ventures accounted for using equity method	0	103
Loss (gain) on disposal of property, plan and equipment	-45,249	-2,212
Loss (gain) on disposal of investment properties	0	-18,089
Reversal of impairment loss on non-financial assets	1,747	15,609
Total adjustments to reconcile profit (loss)	32,567	86,164
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	-7,462	2,718
Decrease (increase) in notes receivable	23,774	1,936
Decrease (increase) in accounts receivable	-124,160	89,337
Decrease (increase) in inventories	151,677	260,375
Decrease (increase) in other current assets	-4,871	11,807
Decrease (increase) in other operating assets	-5,900	-1,409
Total changes in operating assets	33,058	364,764
Changes in operating liabilities
Increase (decrease) in financial liabilities held for trading	128	145
Increase (decrease) in notes payable	86,385	-49,244
Increase (decrease) in accounts payable	173,288	-272,149
Increase (decrease) in other payable	56,023	-20,574
Increase (decrease) in receipts in advance	26,683	-58,306
Increase (decrease) in other current liabilities	291	5
Increase (decrease) in net defined benefit liability	-14,895	-2,195
Increase (decrease) in other operating liabilities	544	0
Total changes in operating liabilities	328,447	-402,318
Total changes in operating assets and liabilities	361,505	-37,554
Total adjustments	394,072	48,610
Cash inflow (outflow) generated from operations	556,294	97,900
Interest received	26,679	26,335
Income taxes refund (paid)	-26,443	-31,883
Net cash flows from (used in) operating activities	556,530	92,352
Cash flows from (used in) investing activities
Acquisition of investments in debt instrument without active market	-439,452	-30,091
Acquisition of property, plant and equipment	-110,601	-30,626
Proceeds from disposal of property, plant and equipment	62,522	12,503
Acquisition of intangible assets	-1,252	-2,016
Acquisition of investment properties	-1,484	-1,282
Proceeds from disposal of investment properties	30,531	105,798
Net cash flows from (used in) investing activities	-459,736	54,286
Cash flows from (used in) financing activities
Increase in short-term loans	1,095,710	966,708
Decrease in short-term loans	-999,529	-1,009,541
Increase in short-term notes and bills payable	574,302	514,380
Decrease in short-term notes and bills payable	-574,989	-470,000
Proceeds from issuing bonds	0	294,750
Proceeds from long-term debt	190,496	864,767
Repayments of long-term debt	-397,691	-1,013,033
Cash dividends paid	-11,671	-46,867
Payments to acquire treasury shares	0	-32,834
Acquisition of ownership interests in subsidiaries	0	-686
Interest paid	-14,069	-17,818
Net cash flows from (used in) financing activities	-137,441	49,826
Effect of exchange rate changes on cash and cash equivalents	-104,063	-14,716
Net increase (decrease) in cash and cash equivalents	-144,710	181,748
Cash and cash equivalents at beginning of period	529,856	348,108
Cash and cash equivalents at end of period	385,146	529,856
Cash and cash equivalents reported in the statement of financial position	385,146	529,856

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.

Banker

Name	Bank of Taiwan

Public Record

Mortgage

1
Case Type:	Chattel Mortgage
Registered Number:	FJGSDZD002974
Debtor Name:	Fu Chun Shin Machinery Manufacture Co., Ltd
Registry:	Economic Development Board of Tainan City Government
Bank Name:	Bank of Taiwan
Date of Registration:	2017-12-11
Amount of Secure Claims:	NTD 52,800,000
Type of Subject Matter:	Machinery, equipment or tools
Date of Contract Beginning:	2017-12-04
Date of Contract Ending:	2027-12-03
2
Case Type:	Chattel Mortgage
Registered Number:	ZJGDZD000114
Debtor Name:	Fu Chun Shin Machinery Manufacture Co., Ltd
Registry:	Economic Development Board of Tainan City Government
Bank Name:	Bank of Taiwan
Date of Registration:	2011-10-28
Amount of Secure Claims:	NTD 112,500,000
Type of Subject Matter:	Machinery, equipment or tools
Date of Contract Beginning:	2011-10-26
Date of Contract Ending:	2022-10-26
3
Case Type:	Chattel Mortgage
Registered Number:	GZDZD081792
Debtor Name:	Fu Chun Shin Machinery Manufacture Co., Ltd
Registry:	Economic Development Board of Tainan City Government
Bank Name:	China Development Industrial Bank
Date of Registration:	2004-11-29
Amount of Secure Claims:	NTD 17,000,000
Type of Subject Matter:	Machinery, equipment or tools
Date of Contract Beginning:	2004-11-25
Date of Contract Ending:	2024-11-25

Lawsuit

Trial Number:	2006, Nanjianbu, 136
Date of Trial:	2006-12-01
Reason:	Return of the deposit
Claimant:	Fu Chun Shin Machinery Manufacture Co., Ltd
Defendant:	Kenan Industry Co. Ltd. (Literal Translation)

Special Note

Interview Details

Name	Ms. Chen
Department	Sales Department
E-mail	foreuro@fcs.com.tw

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.05
UK Pound	1	INR 89.70
Euro	1	INR 80.03
TWD	1	INR 2.22

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

INFORMATION DETAILS

Analysis Done by :	VIV
Report Prepared by :	TPT

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.