MIRA INFORM REPORT

Report Date :

17.12.2014

IDENTIFICATION DETAILS

Name :	HARDINGE MACHINE TOOLS B.V., TAIWAN BRANCH (NETHERLANDS)

Registered Office :	No.4, Zihciang 3^rd Rd., Nantou City, Nantou County 540

Country :	Taiwan

Date of Incorporation :	13.10.2008

Com. Reg. No.:	28439919

Legal Form :	Branch of Hardinge Machine Tools B.V.

Line of Business :	Manufacturing and Sale of Machinery

No of Employees :	50 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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Taiwan

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

TAIWAN - ECONOMIC OVERVIEW

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are other major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, and 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 inked a trade pact with Singapore. Negotiations continue on follow-on components of ECFA regarding trade in goods and a dispute resolution mechanism; a trade in services agreement is under review in the legislature. 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 accounting for 11.2% of the island's total population as of 2012. The island runs a large overall trade surplus largely because of its surplus with China, and its foreign reserves are the world's sixth largest, behind China, Japan, Saudi Arabia, Russia, 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 on the island, and has also secured greater market access for its investors in the mainland. In August 2012, Taiwan Central Bank signed a memorandum of understanding on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese RMB and the New Taiwan dollar across the Strait, which could help develop Taiwan into a local RMB hub. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved.

Source : CIA

Contact Points

Company Name:	Hardinge Machine Tools B.V., Taiwan Branch (Netherlands)
Supplied Name:	Hardinge Machine Tools B V
Trading Address:	No.4, Zihciang 3^rd Rd., Nantou City, Nantou County 540, Taiwan (R.O.C.)
Supplied Address:	Taiwan Branch 4 Tzu Chiang 3rd Road Nan Tou City 540
Telephone Number:	+886-49-226-0536
Fax Number:	+886-49-226-2203
Email:	cs@hardinge.com.tw

Notes: The exact name and address are as above.

Company Identification Details

Registered Name:	Hardinge Machine Tools B.V., Taiwan Branch (Netherlands)
Registered Address:	No.4, Zihciang 3^rd Rd., Nantou City, Nantou County 540, Taiwan (R.O.C.)
Date of Foundation:	2008-10-13
Registration Number:	28439919
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
In the Republic of China Operating Funds:	NTD 500,000 (USD 16,450) (As of 2014.12, 1 NTD = 0.0329 USD)
Litigation and Non-litigation Agent's Name::	Edward J Gaio
Legal Form:	Branch of Hardinge Machine Tools B.V.
Principal Activities:	Manufacturing and sale of machinery
Staff:	Over 50 Employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	2012-6-22

History

Subject was incorporated on 2008-10-13 with registered number 28439919 as a Branch of Hardinge Machine Tools B.V. in Taiwan.

Shareholders

Name	Hardinge Machine Tools B.V.
Place of Origin	Netherlands
% of investment	100%

Subsidiaries & Branches

Parent Company

Name	Hardinge Machine Tools B.V.
Place of Origin	Netherlands

Factory

Address:	No.4, Zihciang 3^rd Rd., Nantou City, Nantou County 540, Taiwan (R.O.C.)
Date of Foundation:	1998-12-2
Factory Registration Number:	99652309
Factory Manager:	Minghui Qiu
Status:	In Production
Date of Last Annual Return:	2012-11-22
Main Products:	Other special machinery equipment

Branch

Name	Taiwan Branch
Registration Number	28439919
Date of Registration	2008-10-13
Status	Live Company
Manager Name	James P. Langa
Date of Last Annual Return	2012-6-22

Related Companies

1
Name	Hardinge Inc.
Address	One Hardinge Drive, Elmira, NY 14902-1507 USA
Telephone Number	+1-607-734-2281
Fax Number	+1-607-734-8819
2
Name	Jones & Shipman Hardinge Ltd.
Address	Murrayfield Road, Leicester, LE3 1UW, England
Telephone Number	+44-116-201-3000
Fax Number	+44-116-201-3002
3
Name	Hardinge GmbH
Address	Fichtenhain A 13 C, D-47807 Krefeld, Germany
Telephone Number	+49-2151-496490
Fax Number	+49-2151-4964999
4
Name	L. Kellenberger & Co. AG
Address	Heiligkreuzstrasse 28, Postfach, Ch-9008 St., Gallen, Switzerland
Telephone Number	+41-071-242-9111
Fax Number	+41-071-242-9222
5
Name	Hardinge China Limited
Address	No.1388 East Kang Qiao Road, Pudong District, Shanghai 201319
Telephone Number	+86-21-3810-8686
Fax Number	+86-21-3810-8681

Personnel Information

Core Management

Name	James P. Langa
Position	Manager

Personnel Structure

Total Employees

Over 50 Employees

Operation Information

Offices & Factories

	Headquarters
Add	No.4, Zihciang 3^rd Rd., Nantou City, Nantou County 540, Taiwan (R.O.C.)

Production Information

l Subject is a manufacturer of machinery

l Subject has a factory (about 12,000 square meters) in Nantou County, Taiwan for production.

Purchase Information

The registered activities of subject:

Business Code	Details
CB01010	Manufacturing of machinery
CB01990	Manufacturing of other machines
CC01010	Manufacturing of power equipment, transmission equipment, and distribution equipment
CC01020	Manufacturing of wire and cable
CD01030	Manufacturing of auto and its parts
CD01040	Manufacturing of motor and its parts
CD01060	Manufacturing of aircraft and its parts
F106010	Wholesale of ironware
F113010	Wholesale of machinery
F113030	Wholesale of precise instrument
F113070	Wholesale of telecom equipment
F114010	Wholesale of automobile
F114020	Wholesale of motor
F114030	Wholesale of auto, motor and parts
F114070	Wholesale of aircraft and its parts
F119010	Wholesale of electronic materials
F401010	International trade business
F601010	intellectual property business

l The components and raw materials of the subject for production are both purchased from domestic market and abroad such as Japan and Germany

Sales Information

l Subject is engaged in sale of machinery

l Subject’s major products are 5-axis VMC, grinder, work holding, CNC lathes, vertical machining centers, horizontal machining centers

l The major sales regions of the subject include domestic market, Asian Countries, Europe and America

l It is introduced that subject mainly sells products to its group companies in different parts of the world.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

1. Domestic Purchase

Products	Components and raw materials
Payment Terms	T/T, Cash

2. Import

Products	Components and raw materials
Payment Terms	L/C, T/T

Sales

Domestic Markets

Product	Machinery
Selling Terms	T/T, Cash

1. Export

Product	Machinery
Selling Terms	L/C, T/T

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

Bankers

Subject declined to disclose its bank details; from other source we cannot obtain the relevant information, either.

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

Department

Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.41
UK Pound	1	Rs.99.03
Euro	1	Rs.79.00

INFORMATION DETAILS

Analysis Done by :	SUB

Report Prepared by :	ANK

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.