MIRA INFORM REPORT

Report Date :

19.07.2012

IDENTIFICATION DETAILS

Name :	KENT INDUSTRIAL CO., LTD.

Registered Office :	No.17, Dougong 9^th Rd., Dou Liu Expanded Industrial Park, Douliu City, Yunlin County 64069

Country :	Taiwan

Date of Incorporation :	16.03.1966

Com. Reg. No.:	35309102

Legal Form :	Joint Stock Company

Line of Business :	Manufacturing and sales of machine tools, etc

No. of Employees :	About 200 Employees

RATING & COMMENTS

MIRA’s Rating :

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

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 – March 31^st, 2012

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Taiwan

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

Contact Points

Company Name:	Kent Industrial Co., Ltd.
Supplied Name:	Kent Industrial Co Ltd.
Trading Address:	13F., No.27, Lane 61, Sec. 1, Kwang Fu Rd., San Chung Dist., New Taipei City, Taiwan, R.O.C.
Supplied Address:	13/F, No. 27, Lane 61, Sec-1, Kwang Fu Road, san Chung City Taipei 241
Telephone Number:	+886-2-2995-1425
Fax Number:	+886-2-2995-0292
E-mail:	sales@kentind.com
Website:	www.kentind.com

Credit Summary

Credit Opinion:

Business connections are permissible.

Company Identification Details

Registered Name:	Kent Industrial Co., Ltd.
Registered Address:	No.17, Dougong 9^th Rd., Dou Liu Expanded Industrial Park, Douliu City, Yunlin County 64069,Taiwan, R.O.C.
Date of Foundation:	1966-3-16
Registration Number:	35309102
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 1,200,000,000 (USD 40,080,000) (As of 2012.07, 1 NTD = 0.0334 USD)
Paid-up Capital:	NTD 794,153,970 (USD 26,524,742.60)
Legal Representatives:	Changqi Ke
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sales of machine tools, etc
Staff:	About 200 Employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	2011-12-1

History

Subject was incorporated on 1966-3-16 with registered number 35309102 as Joint Stock Company in Taiwan.

Awards

Year	Awards
2008	Blue chip importer and exporter

Standard of Blue chip importer and exporter

Unit: USD

Year	Amount
2008	19,000,000

Shareholders

Name	Subscription Shares
Taiwan Venture Investment Co., Ltd (Translated)	3,360,411
Guodong Lu
2,638,286
Yong Yu Co., Ltd (Translated)	6,049,309
Zhen Xiangfu Enterprise Co., Ltd (Translated)	2,796,286
Jineng Lu	494,747
Shuoren He	556,789
Qiuhuang Ji	613,974
Junhui Ke	2,100,000
Guan Rong Investment Co., Ltd.	2,422,289
Bangming Chen	1,141,638

The information above is that of subject’s major shareholders.

Subsidiaries & Branches

Branch Companies

Name	Tianmu Branch
Registration Number	23532697
Date of Registration	1989-12-8
Status	Live Company
Manager Name	Jisheng Lu

Subsidiary Companies

Name	Zhe Jiang Radiance Machinery Co., Ltd
Address	No.58, Jian She No.2 Rd., Hsiaoshan Economic and Technological Zone, Zhejiang Province, China
Telephone Number	+86-571-8283-1781
Fax Number	+86-571-8283-1780

Related Companies

1
Name	Kent International USA Inc.
Address	13941 Magnolia Avenue Chino, CA 91710 U.S.A.
Telephone Number	+1-909-465-0200
Fax Number	+1-909-465-0211
2
Name	Kent Industrial (Japan) Inc.
Address	35-1-604. Kumano-Cho. Itabashi-Ks. Tokyo, 173-0025 Japan
Telephone Number	+81-3-5995-2877
Fax Number	+81-3-5995-2878

Factory

1
Name	Dou Liu Factory
Address	No. 17, Dou-Kung 9th Rd., Dou Liu Expanded Industrial Park, Dou Liu City, Yun Lin Hsien, Taiwan, R.O.C.
Telephone Number	+886-5-557-5356
Fax Number	+886-5-557-5136
2
Name	Pingchen Factory
Address	No.2 Industrial 5th Road, Pin Chen Industrial Zone, TaoYuan Hsien, Taiwan.
Telephone Number	+886-3-469-5398
Fax Number	+886-3-469-3617

Personnel Information

Core Management

Directors

1
Name	Changqi Ke
Position	Chairman
2
Name	Guodong Lu
Position	Director
3
Name	Yong Yu Co., Ltd (Translated)
Position	Director
4
Name	Xiangfu Chen
Position	Director
5
Name	Jineng Lu
Position	Director
6
Name	Shuoren He
Position	Director
7
Name	Qiuhuang Ji
Position	Director
Date of Appointment	2010-8-30
8
Name	Junhui Ke
Position	Supervisor
9
Name	Guan Rong Investment Co., Ltd.
Position	Supervisor
10
Name	Bangming Chen
Position	Supervisor

Personnel Structure

Total Employees

About 200 Employees

Operation Information

Offices & Factories

	Headquarters
Add	13F., No.27, Lane 61, Sec. 1, Kwang Fu Rd., San Chung Dist., New Taipei City, Taiwan, R.O.C.

Production Information

l Subject is engaged in manufacturing of surface grinders, CNC surface grinders, CNC universal cylindrical grinders, creep feed grinders and double column surface grinders, etc.

l It is introduced that subject has two factories in Taiwan for production.

Purchase Information

l The registered activities of subject:

Business Code	Details
--	Manufacturing and sales of all kinds of precision tools, steel mould
--	Heat treatment of all kinds of special steel metal
--	Design, manufacturing and sales of all kinds of automatic machine
--	Manufacturing and sales of all kinds of electric machinery punch processed products
--	Manufacturing and sales of hoisting machinery
--	Importing and sales of weights and measures
--	Design, manufacturing, processing and sales of all kinds of injection molding machine
--	Research, design, manufacturing, processing and sales of
--	Manufacturing, processing and sales of all kinds of components of printer ribbon
--	Processing and sales of canned food and fruit
--	Manufacturing, processing and sales of all kinds of rain gear and sports equipment
--	Manufacturing, processing and sales of regenerated cotton fiber
--	Manufacturing, processing and sales of all kinds of leather
--	Manufacturing, processing and sales of shoe material and shoe
--	Manufacturing, processing and sales of home appliances
--	Manufacturing, processing and sales of kitchen appliance, tableware
E605010	Installation of computer equipment
F118010	Wholesale of software information
I301030	Supply and service of electronic information
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

l The components and raw material for production are purchased both home and abroad.

l It is introduced that subject import technique from German and Japan.

Sales Information

l Subject is engaged in sales of surface grinders, CNC surface grinders, CNC universal cylindrical grinders, creep feed grinders and double column surface grinders, etc.

l Subject’s sales regions include Taiwan domestic market, America, Japan, Hong Kong, mainland China, Thailand, German, France, span, and England, etc.

l Subject’s major customers include Chrysler, 3M, LG, SIPA, BOST, B&W, Fuji, Foxconn and ASUS, etc.

l Subject has their own brand “KENT”.

l Subject obtained the certifications of ISO 9001 and ISO 14001.

l Subject’s operation revenue in 2010 is NTD 578,065,000.

Major products sold

	Product
1	KGS Surface Grinder
2	KGS-HT Super Precision Surface Grinder
3	KGS-CNC Surface Grinder
4	KGP Double Column Surface Grinder
5	KGC-CNC Universal Cylindrical Grinder
6	KMV Vertical Machining Center
7	KHM "H" Type Vertical Machining Center
8	KHM "H" Type High Speed Vertical Machining Center
9	KMV Double Column Machining Center

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase (Taiwan and Mainland, China)

Product	Payment Terms	Proportion
Components and raw material	COD, CBD, etc	100%

Foreign Purchase

Product	Payment Terms	Proportion
Components and raw material	CBD, etc	100%

Sales

Domestic Markets (Taiwan and Mainland, China)

Product	Sales Terms	Proportion
Machine tools, etc	COD, CBD, Credit Sales, etc	100%

Export

Product	Sales Terms	Proportion
Machine tools, etc	CBD, etc	100%

Notes: Subject’s settlement for export is generally in USD

Financial Information

Subject has no obligations to disclose its financial statements to the third party according to the relevant policy in Taiwan and the only source from which we can obtain the information is the subject itself.

Subject’s relevant staff Ms. Zhang declined to disclose its financials citing the grounds of company’s confidentiality; from other source we can not obtain the relevant information, either.

Bankers

1
Name	First Bank
2
Name	Mega International Commercial Bank
3
Name	Taipei Fubon Bank

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.

Interview Details

Name	Ms. Zhang
Position	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.34
UK Pound	1	Rs.86.55
Euro	1	Rs.67.95

INFORMATION DETAILS

Report Prepared by :

PRL

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.