There existed non-performing loans or non-accrual loans with the conditions that more than two years had elapsed since the maturity date and the efforts of collection had failed. However, those loans were not written off after subtracting the estimated recoverable portion, which was not in line with the Article 11 of "Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non-performinglNon-accrual Loans", such as Top Silicon Steel Corp. with amount of NTD 35,491 thousand (overdue since Jan. 31, 2012).
Opinion: The Branch shall write off the non-performing loans according to the regulations.