MIRA INFORM REPORT

Report No. :	508048
Report Date :	08.05.2018

IDENTIFICATION DETAILS

Name :	TAINAN SPINNING CO., LTD.
Registered Office :	No.511, Yu-Nung Road, Tainan, Taiwan, R.O.C.
Country :	Taiwan
Financials (as on) :	31.12.2016
Date of Incorporation :	21.03.1955
Com. Reg. No.:	68919301
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and sales of various kinds of textiles
No. of Employees :	1,800

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 :	Exist

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

Company name and address

Company Name:	Tainan Spinning Co., Ltd.
Supplied Name:	TAINAN SPINNING CO LTD
Trading Address:	10F., No. 9, Songgao Rd., Sinyi Dist., Taipei City, Taiwan
Supplied Address:	10F NO 9 SONGGAO RD, SINYI DISTRICT, TAIPEI
Telephone Number:	+886-2-2758-9888
Fax Number:	+886-2-2758-2804
E-mail:	general@tainanspin.com.tw
Website:	www.tainanspin.com.tw

Notes: The exact name and address are as above.

Company Identification Details

Registered Name:	Tainan Spinning Co., Ltd.
Registered Address:	No.511, Yu-Nung Road, Tainan, Taiwan, R.O.C.
Date of Foundation:	1955-3-21
Registration Number:	68919301
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 16,568,158,570 (USD 563,317,391.38)
Paid-up Capital:	NTD 16,568,158,570 (USD 563,317,391.38)
Legal Representatives:	Boming Hou
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sales of various kinds of textiles.
Staff:	About 1,800 Employees
Listed at Stock Exchange:	Yes; Stock Code: 1440
Date of Last Annual Return:	2017-11-17

History

Subject was incorporated on 1955-3-21 with registered number 68919301 as Joint Stock Company in Taiwan.

Subject listed on Taiwan Stock Exchange on 1989-10-3.

Corporate Structure

Factories

1
Name:	Rende Factory
Address:	No.45, Ln. 862, Sec. 2, Zhongzheng Rd., Rende Dist., Tainan City 71743, Taiwan (R.O.C.)
Date of Foundation:	1969-11-18
Date of Registration:	1971-11-30
Factory Registration Number:	99656408
Factory Manager:	Jianting Li
Status:	In Production
Date of Last Annual Return:	2014-7-10
Major Products:	111 Spinning 112 Weaving 185 Artificial fiber
2
Name:	Sinshih Factory
Address:	No.111, Zhonghua Rd., Xinshi Dist., Tainan City 74448, Taiwan (R.O.C.)
Telephone Number:	886-6-598 2611
3
Name:	Taizi Factory
Address:	No.419,Sec. 3, Zhongzheng Rd., Rende Dist., Tainan City 71757, Taiwan (R.O.C.)
Telephone Number:	886-6-272 4421

Office

Name:	Tainan Office
Address:	10F., No.398, Sec. 1, Zhonghua E. Rd., East Dist., Tainan City 701, Taiwan (R.O.C.)
Telephone Number:	+886-6-2376161
Fax Number:	+886-6-2361156

Subsidiary Companies

1
Name	Tainan Spinning Co., Ltd.
Address	NO.9, Road 17A, Bien Hoa Industrial Zone No.2 Bien Hoa City, Dong Nai Province, Vietnam
Telephone Number	+84-61-383 6671
2
Name	Tainan Textile Co., Ltd.
Address	Road 7C, Nhon Trach Industrial Zone, No.2 Nhon Trach District, Dong Nai Province, Vietnam
Telephone Number	+84-61-356 8114

Affiliated Company

Name	T. S. Retail & Distribution Co., Ltd. (T.S. Mall)
Address	10F., No.366, Sec.1, Zhonghua E.Rd., East Dist., Tainan City 70155, Taiwan(R.O.C.)
Telephone Number	+886-6-2366 222

Shareholders

Major Shareholders

Name	Subscription Shares
Yupeng Investment Co., Ltd. (Literal Translation)
1,267,085
Jiufu Investment Co., Ltd. (Literal Translation)	3,438,931
Taibo Investment Co., Ltd. (Literal Translation)	4,056,402
Lianghong Wu	8,701,705
Shengyuan Investment Co., Ltd. (Literal Translation)	10,558
Boyu Hou	103,636,652
Guangwei Investment Co., Ltd. (Literal Translation)	4,573,052
Chenglong Investment Co., Ltd. (Literal Translation)	17,712,288
Maojiang Investment Co., Ltd. (Literal Translation)	105,590
Yongyuan Investment Co., Ltd. (Literal Translation)	10,704,964
Zhengxiong Yan	14,553,576
Shunhehong Investment Co., Ltd. (Literal Translation)	100,000
Wenteng Hou	7,985,957
Xinyongxing Investment Co., Ltd. (Literal Translation)	76,874,287
Pengling Nie	260,023

Shareholders Information:

1
Registered Name:	Yupeng Investment Co., Ltd. (Literal Translation)
Registered Address:	No.375, Kangle Str., Sanhe Li, Zhongxi Dist., Tainan City, Taiwan
Date of Foundation:	2010-9-14
Registration Number:	53153757
Registry:	Tainan City Government
Registered Capital:	NTD 29,500,000
Paid-up Capital:	NTD 29,500,000
Legal Representatives:	Boming Hou
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2016-6-15
2
Registered Name:	Jiufu Investment Co., Ltd. (Literal Translation)
Registered Address:	No.171, Sec.2, Minquan Rd., Yongfu Li, Zhongxi Dist., Tainan City, Taiwan
Date of Foundation:	1986-4-30
Registration Number:	22001545
Registry:	Tainan City Government
Registered Capital:	NTD 199,990,000
Paid-up Capital:	NTD 199,990,000
Legal Representatives:	Liling Zheng
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2017-8-28
3
Registered Name:	Taibo Investment Co., Ltd. (Literal Translation)
Registered Address:	4/F, No.90, Zhongshan Rd., Zhongxi Dist., Tainan City, Taiwan
Date of Foundation:	1986-9-3
Registration Number:	22265594
Registry:	Tainan City Government
Registered Capital:	NTD 170,000,000
Paid-up Capital:	NTD 170,000,000
Legal Representatives:	Weide Wu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2015-11-26
4
Registered Name:	Shengyuan Investment Co., Ltd. (Literal Translation)
Registered Address:	10/F, No.125, Sec.2, Nanjing E. Rd., Zhongshan Dist., Taipei City, Taiwan
Date of Foundation:	1993-11-24
Registration Number:	84703314
Registry:	Taipei City Government
Registered Capital:	NTD 230,000,000
Paid-up Capital:	NTD 230,000,000
Legal Representatives:	Boyi Hou
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2015-5-7
5
Registered Name:	Guangwei Investment Co., Ltd. (Literal Translation)
Registered Address:	2/F, No.289, Changan W. Rd., Datong Dist., Taipei City, Taiwan
Date of Foundation:	1988-4-1
Registration Number:	22820299
Registry:	Taipei City Government
Registered Capital:	NTD 190,000,000
Paid-up Capital:	NTD 10,000,000
Legal Representatives:	Yingnan Zhuang
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2016-12-12
6
Registered Name:	Chenglong Investment Co., Ltd. (Literal Translation)
Registered Address:	2/F, No.289, Changan W. Rd., Datong Dist., Taipei City, Taiwan
Date of Foundation:	1982-10-12
Registration Number:	07698538
Registry:	Taipei City Government
Registered Capital:	NTD 150,000,000
Paid-up Capital:	NTD 10,000,000
Legal Representatives:	Yingzhi Zhuang
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2016-12-5
7
Registered Name:	Maojiang Investment Co., Ltd. (Literal Translation)
Registered Address:	13-6/F, No.155, Sec.1, Jilong Rd., Xinyi Dist., Taipei City, Taiwan
Date of Foundation:	2007-3-30
Registration Number:	28482794
Registry:	Taipei City Government
Registered Capital:	NTD 25,000,000
Legal Representatives:	Boyu Hou
Legal Form:	Private Limited Liability Company
Date of Last Annual Return:	2017-12-27
8
Registered Name:	Yongyuan Investment Co., Ltd. (Literal Translation)
Registered Address:	6-1/F, No.28, Alley 10, Lane 30, Dong-an Road, Dongming Li, East District, Tainan City, Taiwan
Date of Foundation:	1987-10-20
Registration Number:	22661406
Registry:	Tainan City Government
Registered Capital:	NTD 141,200,000
Paid-up Capital:	NTD 141,200,000
Legal Representatives:	Zhonghe Wu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2016-5-16
9
Registered Name:	Shunhehong Investment Co., Ltd. (Literal Translation)
Registered Address:	No.375, Kongle Str., Sanhe Li, Zhongxi Dist., Tainan City
Date of Foundation:	2016-3-7
Registration Number:	24921929
Registry:	Tainan City Government
Registered Capital:	NTD 10,000,000
Paid-up Capital:	NTD 4,000,000
Legal Representatives:	Hongmo Chen
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2016-5-2
10
Registered Name:	Xinyongxing Investment Co., Ltd. (Literal Translation)
Registered Address:	No.375, Kangle Str., Zhongxi Dist., Tainan City, Taiwan
Date of Foundation:	1982-3-24
Registration Number:	69715207
Registry:	Tainan City Government
Registered Capital:	NTD 160,000,000
Paid-up Capital:	NTD 160,000,000
Legal Representatives:	Boyu Hou
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2016-5-11

Management Information

Core Management

Directors

1
Name		Boming Hou
Position		Chairman of the Board
2
Name	Liling Zheng
Position		Director & Manager
Date of Appointment for Manager		2013-6-28
3
Name	Zengzhaomei Wu
Position		Director
4
Name	Lianghong Wu
Position		Director
5
Name	Boyi Hou
Position		Director
6
Name		Boyu Hou
Position		Director
7
Name		Yingnan Zhuang
Position		Director
8
Name		Yingzhi Zhuang
Position		Director
9
Name		Jinghua He
Position		Director
10
Name		Yizhen Zhang
Position		Director
11
Name		Zhonghe Wu
Position		Director
12
Name		Zhengxiong Yan
Position		Director
13
Name		Hongmo Chen
Position		Director & Manager
Date of Appointment for Manager		2011-7-1
14
Name		Wenteng Hou
Position		Director
15
Name		Zhisheng Hou
Position		Director
16
Name		Zhiyuan Hou
Position		Director
17
Name		Pengling Nie
Position		Independent Director
18
Name		Wenhui Yue
Position		Independent Director
19
Name		Zongyi Cai
Position		Independent Director
20
Name		Kunhuang Zeng
Position		Manager
Date of Appointment		2013-6-28
21
Name		Dunzheng Wang
Position		Manager
Date of Appointment		2013-6-28
22
Name		Junmou Jiang
Position		Manager
Date of Appointment		2016-7-1
23
Name		Lifan Wang
Position		Manager
Date of Appointment		2016-7-1

Personnel Structure

Total Employees

About 1,800 Employees

Operation Information

Offices & Factories

	Headquarters
Add	10F., No. 9, Songgao Rd., Sinyi Dist., Taipei City, Taiwan

Production Information

Subject is engaged in manufacturing of various kinds of textile products.

Subject has factories in Taiwan and Vietnam for production.

Subject obtained the certifications of ISO-9002 and ISO-14001.

Purchase Information

The registered activities of subject:

No.	Details
1	Manufacturing, processing, and sales of various kinds of textile products
2	Related international trade and sales business
3	Investment on textile-related industries and other businesses in favor of sales of textile products, or the special development businesses with government-granted incentives.
4	Production, bleaching, and dyeing of woven textiles; production, printing, and dyeing of garments; sales of woven textiles and garments
5	Manufacturing and sales of synthetic fiber materials
6	Construction of national citizen buildings as well as rental and sales of commercial buildings

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

Sales Information

Subject is engaged in sale of various kinds of textile products, etc.

The major products are yarns, polyester fiber, polyester filament yarn, draw textured yarn, and polyester chips and so on.

Subject’s sales regions include the mainland of China, Taiwan, other Southeast Asia countries, etc.

Subject’s major customers are manufacturers of apparel and industrial cloths.

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	Textiles, etc.
Selling Terms	T/T, Cash, etc.

Export

Product	Textiles, etc.
Selling Terms	L/C, T/T, etc.

Financials

Balance Sheet

Unit: NTD/000

Consolidated	2016-12-31	2015-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	1,840,529	1,895,521
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	29,642	59,776
Notes receivable, net
Notes receivable, net	324,169	284,071
Accounts receivable, net
Accounts receivable, net	1,321,375	1,022,393
Other receivables
Other receivables, net	325,484	210,355
Current tax assets
Total current tax assets	166,276	19,535
Inventories
Total inventories	4,059,932	4,448,694
Prepayments
Total prepayments	324,247	303,157
Other current assets
Other current financial assets	0	1,680
Other current assets, others	0	2,725
Total other current assets	0	4,405
Total current assets	8,391,654	8,247,907
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	2,389,650	2,628,543
Non-current financial assets at cost
Non-current financial assets at cost, net	1,617,184	1,629,754
Investments accounted for using equity method
Investments accounted for using equity method, net	2,133,487	2,389,154
Property, plant and equipment
Total property, plant and equipment	19,675,363	17,856,264
Investment property, net
Investment property, net	6,005,623	7,759,443
Intangible assets
Total intangible assets	9,996	17,144
Deferred tax assets	80,656	127,425
Other non-current assets
Prepayments for business facilities	227,124	50,569
Guarantee deposits paid	15,773	10,730
Long-term prepaid rents	180,644	193,954
Other non-current assets, others
Total other non-current assets, others	6,261	6,968
Total other non-current assets	429,802	262,221
Total non-current assets	32,341,761	32,669,948
Total assets	40,733,415	40,917,855
Liabilities and equity
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	3,650,478	1,997,564
Short-term notes and bills payable
Total short-term notes and bills payable	500,000	400,000
Notes payable
Total notes payable	82,387	43,547
Accounts payable
Total accounts payable	1,615,516	1,405,581
Other payables
Total other payables	962,710	1,497,066
Current tax liabilities	11,766	32,614
Other current liabilities
Advance receipts
Total advance receipts	264,571	193,386
Long-term liabilities, current portion
Total long-term liabilities, current portion	1,166,300	1,838,889
Other current liabilities, others	15,500	10,434
Total other current liabilities	1,446,371	2,042,709
Total current liabilities	8,269,228	7,419,081
Non-current liabilities
Long-term borrowings
Total long-term borrowings	2,413,095	1,886,111
Deferred tax liabilities
Total deferred tax liabilities	4,133,237	4,097,956
Other non-current liabilities
Net defined benefit liability, non-current	380,808	1,136,031
Guarantee deposits received	61,664	58,944
Other non-current liabilities, others	10,486	10,486
Total other non-current liabilities	452,958	1,205,461
Total non-current liabilities	6,999,290	7,189,528
Total liabilities	15,268,518	14,608,609
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	16,568,159	16,568,159
Total capital stock	16,568,159	16,568,159
Capital surplus
Capital surplus, treasury share transactions	35,983	35,983
Capital surplus, difference between consideration and carrying amount of subsidiaries acquired or disposed	26,933	26,933
Capital surplus, others	12,196	12,196
Total capital surplus	75,112	75,112
Retained earnings
Legal reserve	2,243,886	2,120,140
Special reserve	4,407,479	4,407,479
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	1,114,033	1,396,381
Total retained earnings	7,765,398	7,924,000
Other equity interest
Exchange differences on translation of foreign financial statements
Total exchange differences on translation of foreign financial statements	-107,772	287,768
Unrealized gains (losses) on available-for-sale financial assets
Total unrealized gains (losses) on available-for-sale financial assets	730,951	968,859
Total other equity interest	623,179	1,256,627
Total equity attributable to owners of parent	25,031,848	25,823,898
Non-controlling interests	433,049	485,348
Total equity	25,464,897	26,309,246
Total liabilities and equity	40,733,415	40,917,855

Profit and Loss Account

Unit: NTD/000

Consolidated	2016	2015
Operating revenue
Total operating revenue	19,457,874	21,524,129
Operating costs
Total operating costs	17,196,189	18,658,679
Gross profit (loss) from operations	2,261,685	2,865,450
Gross profit (loss) from operations	2,261,685	2,865,450
Operating expenses
Selling expenses
Total selling expenses	1,320,227	1,336,535
Administrative expenses
Total administrative expenses	747,740	766,175
Research and development expenses
Total research and development expenses	29,863	31,705
Total operating expenses	2,097,830	2,134,415
Net operating income (loss)	163,855	731,035
Non-operating income and expenses
Other income
Total other income	421,012	336,342
Other gains and losses
Other gains and losses, net	-107,231	127,270
Finance costs
Finance costs, net	87,483	96,387
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	258,365	358,635
Total non-operating income and expenses	484,663	725,860
Profit (loss) from continuing operations before tax	648,518	1,456,895
Tax expense (income)
Total tax expense (income)	171,988	304,682
Profit (loss) from continuing operations	476,530	1,152,213
Profit (loss)	476,530	1,152,213
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	20,101	-73,600
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	-7,058	-8,313
Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	3,417	-12,512
Components of other comprehensive income that will not be reclassified to profit or loss	9,626	-69,401
Components of other comprehensive income that will be reclassified to profit or loss
Exchange differences on translation	-337,468	53,779
Unrealised gains (losses) on valuation of available-for-sale financial assets	-238,804	-230,806
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	-57,170	-8,104
Income tax related to components of other comprehensive income that will be reclassified to profit or loss	0	10,512
Components of other comprehensive income that will be reclassified to profit or loss	-633,442	-195,643
Other comprehensive income, net	-623,816	-265,044
Total comprehensive income	-147,286	887,169
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	577,339	1,237,446
Profit (loss), attributable to non-controlling interests	-100,809	-85,233
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	-46,483	972,422
Comprehensive income, attributable to non-controlling interests	-100,803	-85,253
Basic earnings per share
Basic earnings (loss) per share from continuing operations	0.35	0.75
Total basic earnings per share	0.35	0.75
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations	0.35	0.75
Total diluted earnings per share	0.35	0.75

Cash Flows

Unit: NTD/000

Consolidated	2016	2015
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	648,518	1,456,895
Profit (loss) before tax	648,518	1,456,895
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	1,037,548	1,001,525
Amortization expense	7,487	5,046
Provision (reversal of provision) for bad debt expense	0	0
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	2,290	5,668
Interest expense	87,483	96,387
Interest income	-3,085	-6,444
Dividend income	-199,083	-227,761
Share of loss (profit) of associates and joint ventures accounted for using equity method	-258,365	-358,635
Loss (gain) on disposal of property, plan and equipment	1,913	-4,005
Property, plan and equipment transferred to expenses	1,944	54,291
Loss (gain) on disposal of investments	0	-9,104
Loss (gain) on disposal of investments accounted for using equity method	0	0
Reversal of impairment loss on non-financial assets	-221	-1,298
Unrealized foreign exchange loss (gain)	0	0
Other adjustments to reconcile profit (loss)	18,311	39,730
Total adjustments to reconcile profit (loss)	696,222	595,400
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	28,050	-2,568
Decrease (increase) in notes receivable	-40,098	46,387
Decrease (increase) in accounts receivable	-298,982	324,943
Decrease (increase) in accounts receivable due from related parties	0	0
Decrease (increase) in other receivable	-117,438	161,312
Decrease (increase) in inventories	403,505	-728,565
Decrease (increase) in prepayments	-21,090	36,941
Decrease (increase) in other current assets	2,725	-892
Decrease (increase) in other operating assets	0	0
Total changes in operating assets	-43,328	-162,442
Changes in operating liabilities
Increase (decrease) in notes payable	38,840	11,325
Increase (decrease) in accounts payable	209,935	-17,651
Increase (decrease) in other payable	57,520	24,815
Increase (decrease) in receipts in advance	71,185	60,880
Increase (decrease) in net defined benefit liability	-735,122	-67,814
Increase (decrease) in other operating liabilities	5,066	10,434
Total changes in operating liabilities	-352,576	21,989
Total changes in operating assets and liabilities	-395,904	-140,453
Total adjustments	300,318	454,947
Cash inflow (outflow) generated from operations	948,836	1,911,842
Interest received	3,646	6,999
Dividends received	504,847	273,765
Interest paid	-90,486	-96,718
Income taxes refund (paid)	-261,289	-141,555
Net cash flows from (used in) operating activities	1,105,554	1,954,333
Cash flows from (used in) investing activities
Proceeds from disposal of available-for-sale financial assets	89	176,916
Proceeds from capital reduction of available-for-sale financial assets	1,715	0
Proceeds from disposal of financial assets at cost	0	-2,340
Proceeds from capital reduction of financial assets at cost	11,483	0
Acquisition of investments accounted for using equity method	-13,500	0
Proceeds from disposal of subsidiaries	0	0
Proceeds from capital reduction of investments accounted for using equity method	157,540	0
Acquisition of property, plant and equipment	-1,800,732	-1,527,936
Proceeds from disposal of property, plant and equipment	12,096	9,036
Increase in refundable deposits	-5,043	-9,919
Acquisition of intangible assets	-344	-2,715
Decrease in other financial assets	1,680	47,775
Increase in prepayments for business facilities	-271,535	-139,601
Other investing activities	-29,217	-27,788
Net cash flows from (used in) investing activities	-1,935,768	-1,476,572
Cash flows from (used in) financing activities
Increase in short-term loans	0	0
Decrease in short-term loans	1,652,914	-207,339
Decrease in short-term notes and bills payable	100,000	-300,000
Proceeds from long-term debt	3,500,000	1,600,000
Repayments of long-term debt	-3,645,605	-1,325,000
Increase in guarantee deposits received	2,720	5,118
Cash dividends paid	-745,567	-278,870
Change in non-controlling interests	48,504	0
Net cash flows from (used in) financing activities	912,966	-506,091
Effect of exchange rate changes on cash and cash equivalents	-137,744	30,963
Net increase (decrease) in cash and cash equivalents	-54,992	2,633
Cash and cash equivalents at beginning of period	1,895,521	1,892,888
Cash and cash equivalents at end of period	1,840,529	1,895,521
Cash and cash equivalents reported in the statement of financial position	1,840,529	1,895,521

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.

Banks

Name	Mega International Commercial Bank Co., Ltd.

Public Record

Mortgage

No chattel mortgage record of subject has been found within the recent 3 months.

Lawsuits

Trial Number:	2014, nanjian, 191
Date of Trial:	2014-7-9
Reason:	The payment of securities
Claimant:	Zhongping Xu
Defendant:	Tainan Spinning Co., Ltd., etc.

Special Note

Interview Details

Name:	Ms. Huang
Department	Sales Department
Email:	polysale@tainanspin.com.tw

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 66.77
UK Pound	1	INR 90.58
Euro	1	INR 79.97
TWD	1	INR 2.26

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

INFORMATION DETAILS

Analysis Done by :	VIV
Report Prepared by :	KET

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.