MIRA INFORM REPORT

Report Date :

06.01.2011

IDENTIFICATION DETAILS

Name :	ALEX-TECH MACHINERY INDUSTRIAL CO LTD

Registered Office :	5 Chun An Rd, Shenkang Hsiang, Taichung Hsien 429

Country :	Taiwan

Financials (as on) :	31.12.2009

Date of Incorporation :	25.08.1988

Com. Reg. No.:	22997697

Legal Form :	Private Company With Limited Liability

Line of Business :	Manufacturing of Finished products

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 500,000
Status :	Satisfactory
Payment Behaviour :	No Complaints
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 – June 30, 2010

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

Taiwan

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name & address

ALEX-TECH MACHINERY INDUSTRIAL CO LTD

5 CHUN AN RD, SHENKANG HSIANG, TAICHUNG HSIEN 429, TAIWAN

TEL: 886-4-25626039 FAX: 886-4-25626040

EXECUTIVE SUMMARY

INCORPORATION DATE : AUG. 25, 1988

REGISTRATION NO. : 22997697

LEGAL FORM : PRIVATE COMPANY WITH LIMITED LIABILITY

CHIEF EXECUTIVE : MR. TEH-HSIU TSAI (PRESIDENT)

STAFF STRENGTH : 103

PAID-UP CAPITAL : NTD 96,432,000

BUSINESS LINE : MANUFACTURER

TURNOVER : NTD 380,000,000 (AS OF DECEMBER, 2009)

EQUITIES : N/A (AS OF DECEMBER, 2009)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 500,000

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : TWD 29.31000 = US$1

Adopted abbreviations

ANS - amount not stated

NS - not stated

SC - subject company (the company inquired by you)

NA - not available

M - million

TWD –Taiwan New Dollars

Name in Local Language : 伍將機械工業股份有限公司

*OTHER LICENSES*

=================

Issuing Authority : Industrial Development Bureau - Ministry of Economic Affairs

License Name : Factory I license

License Number : 99640567

Date of Issuance : 29 Jan, 1999

*COMPANY HISTORY*

====================

Date Details

1989 Invested an additional NTD 5 million the company moved to a larger facility of 16,200

square meters, increased their production machinery and an enclosed spray room. The

company's net worth became NTD 250 million. Simultaneously they developed the ANL

200 CNC lathe for long bar processing, and the ANL-108 multi-function machine.

Annual turnover valued at NTD forty six million.

1990 The company came out with its smaller scale VT-8 CNC lathe in response to quick

development in the electronics industry and the demand for efficiency in precision parts production. Market response saw the company's yearly turnover break through the NTD 100 million mark.

1991 Acquired various precision diagnostic instruments for heightened levels of accuracy.

1992 Completed the development of the ANL-26II CNC lathe, complying with demands for robotic arms and automated feed systems.

1993 Completed development of the twin spindle servo controlled robotic arm and automated tray. Concurrently coordinating plans for production regulation systems high in demand.

1994 Developed the new and improved, larger capacity VT-10. Capable of handling stock up to 65mm in diameter, the turning center designed primarily for the processing of parts for optical instruments.

1995 Invested in substantial expansion of the Hsin Yi factory, increasing 50 employees and completing development of 3 CNC lathes; models SGL-42 ,SML-530 and SL-25.

1996 Received CE safety standard certification of models VT-8 ,VT-10T and VT-10 turning centers. Began to develop the European market. Developed Swiss style moveable spindle CNC lathes models SAL-16 and SAL-20. Also developed models SGU-32 , SGL-52. Acquired Commercial Titanium Alloy Leading Plan from the Industrial Development Bureau.

1997 Developed the twin spindle dual turret model ANTC-42 CNC multi-function lathe as well as model VT-12 gang type lathe. Capital investment reaching NT$250 million.

1998 Model VT-25 passed German (TUV) CE certification standards. Development of model AMC-V100 machining center completed. Expanded to present day factory location. Acquired modern diagnostic instruments, invested another NTD 1 hundred million in large-scale manufacturing equipment, and added an additional manufacturing department. Personnel increased by over one hundred. Yearly turnover at NTD 4 hundred million.

1999 Developed the AMC-H45 horizontal machining center, as well as the all new model VT-20 CNC turret lathe. With test runs complete, release of these two models is expected to put estimated turnover at NT$ 5 hundred million.

*CAPITAL (Currency: NTD - New Taiwan Dollars)

======================================

Authorized Capital: 400,000,000

Paid-up Capital: 96,432,000

*REAL ESTATE OWNERSHIP*

=========================

The following property / ies are owned by ALEX-TECH MACHINERY INDUSTRIAL CO LTD :

Property Name : ALEX-TECH MACHINERY INDUSTRIAL CO LTD - SHENKANG HSIANG, TAICHUNG HSIEN

Type of Property : Office located in a building - Strata title

Address : 5 Chun An Rd, Shenkang Hsiang, Taichung Hsien 429

Office Size : 5,787 Square meters

Estimated Value : NTD 123,000,000.00

Property Legal Status : Not mortgaged

*PREVIOUS CONTACT DETAILS*

============================

Company Address : 21, Lane 510 Chung Cheng Rd, Fengyuan City, Taichung Hsien 420

Company Address : 9-2 Shen Chou Rd, Shenkang Hsiang, Taichung Hsien 429

Company Address : 568 Feng Chou Rd Shenkang Hsiang Taichung Hsien

Phone Number : 886-4-52793612

*RANKING*

==========

Type Coverage Ranking Detail

Corporate Ranking Domestic Top 5,000 companies in Taiwan - Based on Turnover in

2008 and 2009

*Reputation*

=========

Reference checking for the purpose of establishing the ALEX-TECH MACHINERY INDUSTRIAL CO LTD's reputation within the respective industry failed to reveal any adverse information.

www.alex-tech.com The design is professional and the content is well organized. At present it is in English version.

E-mail: alextech@ms24.hinet.net

For the past two years there is no record of litigation.

*Major Shareholders*

================

Total number of shareholders: 6

Total number of shares: 3,863,289

Shareholders Country Number %

Ms. Hsueh-chin Cheng Taiwan 2,257,663.00 58.44

Mr. Teh-hsiu Tsai Taiwan 1,261,941.00 32.66

Mr. Kuo-sheng Huang Taiwan 228,944.00 5.93

Mr. Teh-chih Tsai Taiwan 99,000.00 2.56

Mr. Che-chou Liang Taiwan 10,791.00 0.28

Ms. Jui-yun Tsai Taiwan 4,950.00 0.13

Name Nationality Job Description Dept. / Division

Mr. Che-chou Liang Taiwanese General Manager Regional

Mr. Teh-hsiu Tsai Taiwanese President Regional

*COMPANY DIRECTORS*

=====================

Name : Mr. Che-chou Liang

Nationality : Taiwanese

Name : Mr. Teh-hsiu Tsai

Nationality : Taiwanese

Name : Mr. Kuo-sheng Huang

Nationality : Taiwanese

Name : Mr. Kuo-tung Huang

Nationality : Taiwanese

Name : Mr. Teh-chih Tsai

Nationality : Taiwanese

*Core Business Description*

====================

Core Business

--------------------

The primary business focus of ALEX-TECH MACHINERY INDUSTRIAL CO LTD is:

·Manufacturing - Finished products

An integral part of the core business includes:

·Research & Development (R&D)

·Manufacturing - Materials

·Distribution

Supplementary Business

-----------------------------

In addition to the core business, ALEX-TECH MACHINERY INDUSTRIAL CO LTD also is engaged in the following areas of business:

Exporting

·Exporting - Finished products

Importing

·Importing - Components

*Primary Products*

==============

Activity Products / Materials / Services Description

---------- -----------------------------------------------------

Manufacturing Automatic lathes

Manufacturing Bar feeders

Manufacturing Boring machines

Manufacturing Burners

Manufacturing, Trading CNC controls

*Payment Terms*

=============

Selling

---------

Type Terms

Local Cash on delivery (COD)

Credit - Secured with Post-dated checks 30~60 days

Export Letter of Credit (At-sight)

Telegraphic Transfer (T/T) - Received at time of transaction

Purchasing

------------

Type Terms

Local Cash on delivery (COD)

Credit - Secured with Post-dated checks 30~60 days

Import Letter of Credit (At-sight)

Telegraphic Transfer (T/T) - Executed at time of transaction

*BRANDS & TRADEMARKS*

========================

Alex-Tech

VIPER

YIPER

*ASSOCIATIONS*

===============

TAIWAN ASSOCIATION OF MACHINERY INDUSTRY

*Competitors*

===========

The following is a representative list of local competitors:

ASIA PACIFIC ELITE CORP

ASIAN PLASTIC MACHINERY CO LTD

BIG TOYO MACHINERY CO LTD

DAH LIH MACHINERY INDUSTRY CO LTD

JEENXI TECHNOLOGY CO LTD

LONG CHANG MACHINERY CO LTD

PINNACLE MACHINE TOOL CO LTD

TAILIFT CO LTD

WIN HO TECHNOLOGY INDUSTRIAL CO LTD

*TRADE SHOWS*

================

Exhibition Acronym Country Participating Year

TIMTOS - Taipei Int'l n/a Taiwan 2001, 2003, 2005, 2007, 2009

Machine Tool Show

*Domestic Sales & Purchases*

=======================

Annual Sales Analysis Percentage

--------------------------- -------------

Domestic Sales 25%

International Sales (Export) 75%

Annual Purchases Analysis Percentage

--------------------------- -------------

Local Purchases 80%

Imports 20%

*Sales Channel Analysis*

==================

Sales Channel Sales Channel Ownership Percentage

----------------- ------------------------------- ---------------

Direct end-user /consumer Owned by Subject Business Entity (SBE) 100%

customer sales - via sales team

*DOMESTIC CUSTOMERS*

=======================

FU HO YI ENTERPEISE CO LTD

*LOCAL BRANCHES & MANAGEMENT*

=================================

Branch : ALEX-TECH MACHINERY INDUSTRIAL CO LTD - SHENKANG HSIANG, TAICHUNG HSIEN

Branch Address : 9-2 Shen Chou Rd, Shenkang Hsiang, Taichung Hsien 429

Branch : ALEX-TECH MACHINERY INDUSTRIAL CO LTD - FENGYUAN CITY, TAICHUNG HSIEN

Branch Address : 1Fl, 21, Lane 510 Chung Cheng Rd, Fengyuan City, Taichung Hsien 420

*OVERSEAS AGENTS AND DISTRIBUTORS*

====================================

Agent : ALTEMAQ SA

Country of Origin : Argentina

Product Description : CNC machining centers

Year : 1998

Agent : BSA MACHINE TOOLS LTD

Country of Origin : United Kingdom

Product Description : CNC machining centers

Year : 2002

Agent : CHERPAC MACHINERY CO LTD

Country of Origin : New Zealand

Product Description : Machining centers

Year : 2001

Agent : CNC ADVANCED TECHNOLOGIES MARKETING LTD

Country of Origin : Israel

Product Description : CNC machining centers

Year : 2003

Agent : CNS TRADING SRL

Country of Origin : Italy

Product Description : Machining centers

Year : 2004

Agent : DMS CNC MAKINA SAN VE TIC LTD STI

Country of Origin : Turkey

Product Description : Machining centers

Year : 1997

Agent : EXEL-MACHINES AS

Country of Origin : Norway

Product Description : CNC controls

Year : 2001

Agent : F&H MACHINE TOOLS LTD

Country of Origin : South Africa

Product Description : CNC controls

Year : 2006

Agent : FAGGIONI TECHNOLOGIES & CONSULTING SA

Country of Origin : Chile

Product Description : CNC machining centers

Year : 1998

Agent : JPF MACHINE OUTILS SA

Country of Origin : France

Product Description : CNC machining centers

Year : 2000

Agent : MAQUINARIA DIEKMANN SA

Country of Origin : Venezuela

Product Description : CNC controls

Year : 1994

Agent : MASKIN AB

Country of Origin : Sweden

Product Description : CNC controls

Year : 1993

Agent : MDT SP ZOO

Country of Origin : Poland

Product Description : Machining centers

Year : 1999

Agent : MIGHTY USA INC

Country of Origin : USA

Product Description : CNC controls

Year : 1992

Agent : MODERN TOOL LTD

Country of Origin : Canada

Product Description : CNC controls

Year : 2000

Agent : NIKA SEWICE LTD

Country of Origin : Ukraine

Product Description : CNC controls

Year : 2001

Agent : PROMAS MACHINES BV

Country of Origin : Netherlands

Product Description : CNC machining centers

Year : 2002

Agent : STANDACO MACHINERY PTY LTD

Country of Origin : Australia

Product Description : CNC controls

Year : 2000

Agent : TAMNER TECH OY

Country of Origin : Finland

Product Description : CNC machining centers

Year : 2001

Agent : ULTIMA TECHNOLOGIES LTD

Country of Origin : Pakistan

Product Description : CNC machining centers

Year : 1996

Agent : UNIVERSAL CNC SL

Country of Origin : Spain

Product Description : Machining centers

Year : 1999

PAYMENT RATING : 3 OBTAINED SCORES : 71

Rating Key	Implication	Implications
1	Scores 85–100	Excellent
2	Scores 75 – 84	Above Average
3	Scores 50 – 74	Average
4	Scores 35 – 49	Fair
5	Scores 15 – 34	Below Average
6	Scores 01 – 14	Poor
NR	No Data	No Data

The rating indicates the payment pattern of SC based upon our Payment Database, comments from suppliers of SC, information from banks (if available), as well as industrial sources.

Dealings on open terms may be possible for MODERATE amounts depending on individual judgement experience.

*BANK DETAILS*

===============

Bank Name : HUA NAN COMMERCIAL BANK LTD

Branch : Chungcheng Dist, Taipei City

Branch Address : Chungcheng Dist, Taipei City

SWIFT Code : HNBKTWTP

Bank Name : MEGA INT'L COMMERCIAL BANK CO LTD

Branch : Chungcheng Dist, Taipei City

Branch Address : 123 Jhongsiao E Rd Section 2 Chungcheng Dist, Taipei City 100 (Head Office)

SWIFT Code : ICBCTWTP

Bank Name : TAIWAN BUSINESS BANK

Branch : Tatung Dist, Taipei City

Branch Address : Tatung Dist, Taipei City

SWIFT Code : MBBTTWTP

*FINANCIAL STATEMENT – DETAILED*

=================================

Currency : NTD

Denomination : 1

Financial Year Ending: December

Financial Highlights As of 2009

-------------------------- -------------

Total Assets(*) 579,000,000.00

Turnover(*) 380,000,000.00

Profit After Tax attributable to Shareholders(*) 8,580,000.00

*Financial Summary (Currency: U.S. $'s)

==============================

Year Sales Assets Net Income

2009 (*) $11,812,247.44 $17,998,134.91 $266,708.11

Note: (*)

Financials listed are the most recent available for this company.

*Int´l Trade Activity (Currency: U.S. $'s)

===============================

Year Imports Exports Total

2007 $1,753,298.01 $17,315,315.99 $19,068,614.00

2008 $1,977,093.01 $25,959,566.99 $27,936,660.00

2009 $500,000.00 $10,985,117.00 $11,485,117.00

SC is considered large-sized in its line with a development history of 23 years. Taking into consideration of SC’s general performance, a credit line up to USD 500,000 appears to be within SC’s capacities.

SIC PRODUCT CLASSIFICATION & ACTIVITY

Activity Code Product/Service Description

Manufacturing, Trading 3500 Industrial Machinery & Equipment

Manufacturing 3545 Machine tool accessories, and parts,

Manufacturing 3542 Machine tools metal-forming, and parts,

Manufacturing 3541 Machine tools, metal-cutting, and parts,

Manufacturing 3549 Metalworking machinery

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Activity Code Product/Service Description

Manufacturing 8459210080 Drilling machines, metal removing, numerically controlled, new

Manufacturing 8460290005 Grinding machines except flat surface, metal removing, accuracy at least

0.01 mm, except numerically controlled, used or rebuilt

Manufacturing 8428900010 Industrial robots for lifting, handling, loading or unloading

Manufacturing 8458 Lathes for removing metal

Manufacturing 8458915050 Lathes for removing metal, numerically controlled, multiple spindle, new

Manufacturing 8459 Machine tools for drilling, boring, milling etc

Manufacturing 8466303000 Machines as special attachments for machine tools

Manufacturing, Trading 8479 Machines etc having individual functions, parts

Manufacturing 8457 Machining centers, unit const mach etc work metal

Manufacturing 8459690010 Milling machines, except knee type, metal removing, except numerically controlled, used or rebuilt

DETAILED PRODUCT CLASSIFICATION & ACTIVITY

Activity Ranking Products / Materials / Services Description

Manufacturing, Trading Primary CNC machining centers

Manufacturing, Trading Primary Industrial machinery

Manufacturing, Trading Primary Machining centers

Manufacturing Primary CNC lathes

Manufacturing Primary Drilling machine parts

Manufacturing Primary Drilling machines

Manufacturing Primary Grinding machines

Manufacturing Primary Industrial robots

Manufacturing Primary Lathes

Manufacturing Primary Lathes, p.c. / n.c.

INTERNATIONAL TRADE: ACTIVITY & MARKETS

Country / Region Trading Activity

Africa Exporting

Argentina Exporting

Asia / Pacific Importing, Exporting

Australia Exporting

Canada Exporting

Chile Exporting

Europe Importing, Exporting

Finland Exporting

France Exporting

Israel Exporting

Italy Exporting

Middle-East Exporting

Netherlands Exporting

New Zealand Exporting

Norway Exporting

North America Exporting

Pakistan Exporting

Poland Exporting

South America Exporting

South Africa Exporting

Spain Exporting

Sweden Exporting

Turkey Exporting

USA Importing, Exporting

Ukraine Exporting

United Kingdom Exporting

Venezuela Exporting

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.20
UK Pound	1	Rs.70.27
Euro	1	Rs.59.99

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
----	NB	New Business	----

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 and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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.