MIRA INFORM REPORT

Report Date :

16.03.2012

IDENTIFICATION DETAILS

Name :	BUFFALO MACHINERY CO LTD

Registered Office :	56, Lane 318, Te Sheng Rd, Taya Hsiang Taichung Hsien 428

Country :	Taiwan

Date of Incorporation :	October 2, 1979

Com. Reg. No.:	52541739

Legal Form :	Private

Line of Business :	Research and development of CNC lathes. Importing of main components and parts used for in-house production. Manufacturing and supplying range of various CNC lathes, teaching lathes and related equipment and components. Export and local sales of its products.

No. of Employees :	45

RATING & COMMENTS

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

Maximum Credit Limit :	USD 300,000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

company name & address

BUFFALO MACHINERY CO LTD

56, LANE 318, TE SHENG RD

TAYA HSIANG TAICHUNG HSIEN 428, TAIWAN

TEL 886-4-25603759

FAX 886-4-25603769

EXECUTIVE SUMMARY

INCORPORATION DATE : OCTOBER 2, 1979

REGISTRATION NO. : 52541739

LEGAL FORM : PRIVATE

CHIEF EXECUTIVE : MR. PAUL CHIN-FENG CHANG (GENERAL MANAGER)

STAFF STRENGTH : 45

CAPITAL : US$ 3,017,502

BUSINESS LINE : MANUFACTURER

TURNOVER : N/A (AS OF DEC. 31, 2006)

EQUITIES : N/A (AS OF DEC. 31, 2006)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 300,000

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : TWD 32.36350 = 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

*Company History*

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

1978 - Founded by Mr. Louise Hsiao and Mr. Paul Chang, started out as a trader/exporter of

metal-working machines

1982 - Entered the camera and photograph equipment business, most of which were imported

from Japan

1986 - Involved in the production area of machines by buying shares from a couple of factories

making Lathes and Mills.

1996 - Completely owned by Mr. Paul Chang and is located in Taya, Taichung, Taiwan

1997 - Built a plant especially for making CNC Lathe and CNC Mills (VMC)

2001 - Established TIGER INDUSTRIES which develops all the CNC frames.

2002 - Founded STEEL PROFESSIONAL

*Office & Facilities*

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

Size : 481 sq meters (Approx)

Location : Taichung Hsien

Property status : Owned by BUFFALO MACHINERY CO LTD

Type of building : Industrial Building

Other e-mail : - pauljfc@ms29.hinet.net

- paul@mail.buffalo.com.tw

- a01@mail.buffalo.com.tw

Previous Contact Details

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

Address : 19 Alley 5 Lane 192 Tong Sun Rd Section 1 Peitun Dist Taichung City 406

Tel no. : 4-24361692

Fax no. : 4-22319410

*Licenses & Permits*

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

License number : 99704053

Date issued : 4 January, 2007

Issuing authority : Industrial Development Bureau, MOEA

Type of license : Factory license

*Factories, Size & Locations*

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

Size : 4,927 sq meters (Approx)

Type of building : Industrial Building

Location : Taichung Hsien

Property status : Owned by BUFFALO MACHINERY CO LTD

*Corporate & Organization Structure*

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

A small-medium sized company mainly operated and managed by an experienced team of professionals.

*Industry Ranking*

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

Generally regarded as one of the Top 5000 Companies in Manufacturing Industry of Taiwan.

Details of rank are as follows:

Year Rank

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

2004 2583

2005 2380

2006 1894

*Reputation*

==========

Reference checking for the purpose of establishing the firm's reputation within the respective industry failed to reveal any negative information.

Web site: www.buffalo.com.tw the design is professional and the content is well organized. At present it is in English version.

E-mail: info@mail.buffalo.com.tw

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

*Major Shareholders*

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

Shareholders' Name No. of Shares

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

Mr. Paul Chin-feng Chang 90,000,000

Mr. Ching-kun Chang 4,400,000

Management: Mr. Jeff Chu, Manager

Ms. Joan Huang, Director

Mr. Eric Chang, Director

Name Nationality Job Description Dept. / Division

Mr. Jeff Chu Taiwanese Manager After-sales

Ms. Joan Huang Taiwanese Director Finance

Mr. Eric Chang Taiwanese Director Production

Mr. Andy Liu Taiwanese Manager Production

Mr. Kevin Wang Taiwanese Executive Purchasing

Mr. Bryant Tsai Taiwanese Manager Quality Control

Ms. Christina Chang Taiwanese Manager Sales

Ms. Joann Liao Taiwanese Executive Shipping

Ms. Sabina Yi-chi Chen Taiwanese Assist. Manager -

Mr. Kelly Chen Taiwanese Engineer -

Mr. Louis Ching-tan Hsiao Taiwanese General Manager -

Mr. Paul Chin-feng Chang Taiwanese General Manager -

Mr. Paul J. F. Chang Taiwanese General Manager -

Mr. Kim Chen Taiwanese Manager -

Ms. Stella Chang Taiwanese Manager -

*Key Personnel*

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

Mr. Paul Chin-feng Chang

Founder : Co Founder

Work experience : More than 20 years

Responsibilities : Daily operation of the firm including all financial and legal matters.

Resident status : Taiwan

*Main Products & Services*

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

Specializes in the following areas of work:

1.Research and development of CNC lathes.

2. Importing of main components and parts used for in-house production.

3. Manufacturing and supplying range of various CNC lathes, teaching lathes and related equipment and components.

4. Export and local sales of its products.

Carries the following brands :

- Microcut

- Challenger

Products: Bed type milling machines

Boring machines

CNC boring machines

CNC lathes

CNC milling machines

*Payment Terms*

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

Sales

-------

Local : 30-90 days credit

Export : Letter of Credit (L/C)

Telegraphic Transfer (T/T)

Purchases

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

Local : 30-90 days credit

Import : Letter of Credit (L/C)

Open Account (D/A) with settlement using Telegraphic Transfer (T/T)

*Detailed Product Specifications*

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

Product Details

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

CNC Boring machine Model : HBM-4

Travel : XYZW-2200x1800x1600x750

Main motor : AC25/20 HP

Spindle speed : 35-3000 rpm 2 steps

Slant bed CNC lathe Model : 52T / 76T

Bore : 52/76mm

Turning capacity : 600mm

Power : 11-18.5kw

Length : 500/1000mm

Vertical Machining Center Model : MCV-600 / 800 / 1000 / 1300 / 1500 / 2000

X travel : 600/800/1000/1300/1500/2000

Power : 5.5kw-26kw

Teaching Lathe Model : BNC series

SOB : 16"-43"

Center distance : 40"-200"

Bore : 60/85/105mm

*Exhibition Participation*

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

Participated in the following local exhibitions :

(1)

Exhibition Fair : Taipei International Machine Tool Show

Date Attended : 20-25 March, 2001

Location : Taipei World Trade Center - Exhibition Hall

(2)

Exhibition fair : Taipei International Machine Tool Show

Date attended : 18-23 March, 2003

Location : Taipei World Trade Center- Exhibition Hall

(3)

Exhibition Fair : TIMTOS - Taipei Int'l Machine Tool Show

Dates attended : 15-20 March, 2005

Location : Taipei World Trade Center (TWTC) - Exhibition Hall

(4)

Exhibition/Fair : TIMTOS - Taipei Int'l Machine Tool Show

Date attended : 12 March, 2007 - 17 March, 2007

Location : Taipei World Trade Center (TWTC)

*Associations*

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

Member of :

- Taiwan Association of Machinery Industry

*Competitors*

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

The following locally based firms supply similar range of products:

- BRIDGE MACHINERY CO LTD

- SHE HONG INDUSTRIAL CO LTD

- AMADA TAIWAN INC

- HURCO MFG LTD

- CHUNG SING MACHINERY CO LTD

- FALCON MACHINE TOOLS CO LTD

- HO-CHUN MACHINERY CO LTD

*Local Distribution Network*

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

Approximately 10% of the annual turnover is attributed to local sales.

*Export Markets*

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

Approximately 90% of the annual turnover is attributed to export.

*International Trade Ranking*

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

The firm has been ranked among Taiwan's Top Importers/Exporters based on the standard measured by the

Board of Foreign Trade (BOFT)

Details of rank are as follows :

Year Rank

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

2002 2076

2003 1678

2004 1462

2005 1211

*(Subsidiaries, Joint-ventures & Affiliates)

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

Company Name : SUPERMOST CORP

Address : Rm D 9Fl, 169-12 Chang An East Rd Section 2 Taiwan

Country : Taiwan

Relationship : Subsidiary

Legal Form : Private company with limited liability

Company Type : Importer

Industry : Electronic Products & Components

Company Name : UNITRONIC HIGH-TECH CORP

Address : 1Fl, 8, Lane 252, Chung Shan North Rd 1Fl Taya Hsiang 428 Taichung Hsien Taiwan

Country : Taiwan

Relationship : Affiliate

Legal Form : Private company with limited liability

Company Type : Trader

Industry : Electronic Products & Components

PAYMENT RATING : 3 OBTAINED SCORES : 65

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.

As a private limited company with a paid-up capital of less than USD 6 million, there is no legal requirement according to Taiwan corporate law for public disclosure of detailed financials.

Although, financial summaries were obtained for reference.

*Bank Details*

===========

Bank Name : TAIWAN COOPERATIVE BANK

Branch : Chungcheng Dist, Taipei City

Branch Address : 77 Kuan Chien Rd Chungcheng Dist Taipei City 100 (Head Office)

SWIFT Code : TACBTWTP

Bank Name : CATHAY UNITED BANK

Branch : Chungcheng Dist, Taipei City

Branch Address : 65 Kuan Chien Rd Chungcheng Dist Taipei City 100 (Head Office)

SWIFT Code : UWCBTWTP

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

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

Year Imports Exports Total

1996 $0.00 $9,300,000.00 $9,300,000.00

1997 $0.00 $12,800,000.00 $12,800,000.00

1998 $0.00 $9,500,000.00 $9,500,000.00

2004 $2,327,004.00 $21,034,688.99 $23,361,692.99

2005 $2,784,264.99 $27,742,120.00 $30,526,384.99

2006 $2,500,000.00 $30,000,000.00 $32,500,000.00

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

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

Year Sales Assets Net Income

2004 $22,195,488.72 n/a n/a

2006 $39,721,886.34 $21,886,336.15 $3,092,503.02

SC is considered small-sized in its line with a long history. Taking into consideration of SC’s general performance, a credit line up to USD 300,000 appears to be within SC’s capacities.

SIC PRODUCT CLASSIFICATION & ACTIVITY

Activity Code Product/Service Description

Manufacturing 3500 Industrial Machinery & Equipment

Manufacturing 3545 Machine tool accessories, and parts,

Manufacturing 3569 General industrial machinery and equipment, and parts,

Trading 3500 Industrial Machinery & Equipment

Trading 3549 Metalworking machinery

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Activity Code Product/Service Description

Exporting 8457100005 Machining centers, used or rebuilt

Exporting 8458190010 Horizontal lathes, metal removing, except numerically controlled, used or rebuilt

Exporting 8459290010 Drilling machines, metal removing, except numerically controlled, used or rebuilt

Exporting 8459310005 Combination boring-milling machines, metal removing, numerically controlled,

used or rebuilt

Exporting 8459390010 Combination boring-milling machines, metal removing, except numerically

controlled, used or rebuilt

Exporting 8459610040 Milling machines, except knee type, metal removing, numerically controlled, used

or rebuilt

Exporting 8459690010 Milling machines, except knee type, metal removing, except numerically

controlled, used or rebuilt

Exporting 8460190005 Flat surface grinding machines, metal removing, accuracy of at least 0.01 mm,

except numerically controlled, used or rebuilt

Exporting 8460290005 Grinding machines except flat surface, metal removing, accuracy at least 0.01

mm, except numerically controlled, used or rebuilt

Exporting 8466934000 Parts of metalworking machine tools for cutting gears

DETAILED PRODUCT CLASSIFICATION & ACTIVITY

Activity Product/Service Description

Trader Lathes, metal

Trader Well drilling equipment

Trader Industrial machinery

Trader CNC boring machines

Trader Horizontal lathes

Trader Machining centers

Trader Bed type milling machines

Trader Milling machine, knee-type

Trader High speed lathes

Trader Lathes

INTERNATIONAL TRADE : ACTIVITY & MARKETS

Exporting to Argentina

Exporting to Asia

Exporting to Australia

Exporting to Austria

Exporting to Belarus

Exporting to Belgium

Exporting to Brazil

Exporting to Canada

Exporting to Czech Republic

Exporting to Denmark

Exporting to Europe

Exporting to Finland

Exporting to France

Exporting to Germany

Exporting to Greece

Exporting to Indonesia

Exporting to Ireland

Exporting to Italy

Exporting to Malaysia

Exporting to Middle East

Exporting to Netherlands

Exporting to New Zealand

Exporting to Norway

Exporting to Oceania

Exporting to Portugal

Exporting to Romania

Exporting to Russia

Exporting to Saudi Arabia

Exporting to Singapore

Exporting to South Africa

Exporting to South Korea

Exporting to Spain

Exporting to Sweden

Exporting to Switzerland

Exporting to Thailand

Exporting to Turkey

Exporting to UAE

Exporting to USA

Exporting to United Kingdom

Exporting to Vietnam

Importing from Asia

Importing from China

Importing from Europe

Importing from Germany

Importing from India

Importing from Italy

Importing from Japan

Importing from North America

Importing from Oceania

Importing from Spain

Importing from Switzerland

Importing from USA

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.50.22
UK Pound	1	Rs.78.64
Euro	1	Rs.65.54

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.