MIRA INFORM REPORT

Report Date :

17.05.2014

IDENTIFICATION DETAILS

Name :	PRECISION MOTION INDUSTRIES, INC.

Registered Office :	No.71, Lane 20, Dafu Rd., Shengang Dist., Taichung City 429

Country :	Taiwan

Date of Incorporation :	17.04.1990

Com. Reg. No.:	23700883

Legal Form :	Joint Stock Company

Line of Business :	Engaged in manufacturing and sale of mechanical parts including ball screws & linear guideway

No. of Employees :	400

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, 2014

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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

Company Name and address

Company Name:	PRECISION MOTION INDUSTRIES, INC.
Supplied Name:	Precision Motion Industries Inc
Trading Address:	No.71, Lane 20, Dafu Rd., Shengang Dist., Taichung City 429, Taiwan (R.O.C.)
Supplied Address:	71 In 20 Dafu Road Shengang Dist Taichung City 42946 Taiwan
Telephone Number:	+886-4-2528-2984
Fax Number:	+886-4-2512-0834

Note: The exact name and address are as above.

Company Identification Details

Registered Name:	Precision Motion Industries, Inc.
Registered Address:	No.71, Lane 20, Dafu Rd., Shengang Dist., Taichung City 429, Taiwan (R.O.C.)
Date of Foundation:	1990-4-17
Registration Number:	23700883
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 1,500,000,000 (USD 49,350,000) (As of 2014.01, 1 NTD = 0.0329 USD)
Paid-up Capital:	NTD 1,000,000,000 (USD 32,900,000)
Legal Representatives:	Yongyao Bai
Legal Form:	Joint Stock Company
Principal Activities:	Engaged in manufacturing and sale of mechanical parts including ball screws & linear guideway
Staff:	About 400 Employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	2013-06-26

History

Subject was incorporated on 1990-4-17 with registered number 23700883 as Joint Stock Company in Taiwan.

Shareholders

Name	Subscription Shares
Yongyao Bai	10,000
Quan’an Zhan
2,012,936
Jintang Lin	7,797,580
Meixiu Hong	111,367
Zhihui Chen	7,326,220
Meizhu Chen	2,586,486
Huimin Zhang	591,745

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

Subsidiaries & Branches

Factories

1
Name:	Precision Motion Industries, Inc. Main Factory
Address:	No.71, Lane 20, Dafu Rd., Anli Li, Shengang Dist., Taichung City, Taiwan
Date of Registration:	2006-07-17
Factory Registration Number:	9970371
Factory Manager:	Yongyao Bai
Status:	In Production
Date of Last Annual Return:	2006-07-17
Major Products:	293 Ordinary mechanical equipment
2
Name:	Precision Motion Industries, Inc. The Second Factory
Address:	No. 5-1, Lane 241, Zhongshan Rd., Anli Li, Shengang Dist., Taichung City, Taiwan
Date of Registration:	2006-07-11
Factory Registration Number:	99703691
Factory Manager:	Yongyao Bai
Status:	In Production
Date of Last Annual Return:	2009-3-25
Major Products:	293 Ordinary mechanical equipment
3
Name:	Precision Motion Industries, Inc. The Third Factory
Address:	No. 2, Lane 241, Zhongshan Rd., Anli Li, Shengang Dist., Taichung City, Taiwan
Date of Foundation:	2000-05-12
Date of Registration:	2000-07-26
Factory Registration Number:	99642683
Factory Manager:	Yongyao Bai
Status:	In Production
Date of Last Annual Return:	2003-03-19
Major Products:	293 Ordinary mechanical equipment
4
Name:	Precision Motion Industries, Inc. The Fifth Factory
Address:	No. 7, Lane 893, Zhongshan Rd., Beizhuang Li, Shengang Dist., Taichung City, Taiwan
Date of Registration:	2003-02-24
Factory Registration Number:	99641904
Factory Manager:	Yongyao Bai
Status:	In Production
Date of Last Annual Return:	2009-03-26
Major Products:	293 Ordinary mechanical equipment
5
Name:	Precision Motion Industries, Inc. Fengzhou The First Factory
Address:	No. 22, Fenggong Middle Rd., Fengzhou Li, Shengang Dist., Taichung City, Taiwan
Date of Registration:	2012-10-25
Factory Registration Number:	66001419
Factory Manager:	Yongyao Bai
Status:	In Production
Date of Last Annual Return:	2012-10-25
Major Products:	293 Ordinary mechanical equipment
6
Name:	Precision Motion Industries, Inc. Fengzhou The Second Factory
Address:	No. 8, Fenggong Middle Rd., Fengzhou Li, Shengang Dist., Taichung City, Taiwan
Date of Registration:	2012-09-19
Factory Registration Number:	66001366
Factory Manager:	Yongyao Bai
Status:	In Production
Date of Last Annual Return:	2012-09-19
Major Products:	293 Ordinary mechanical equipment
7
Name:	Precision Motion Industries, Inc. The First Factory
Address:	No. 73, Lane 20 Dafu Rd., Anli Li, Shengang Dist., Taichung City, Taiwan
Date of Registration:	2011-12-14
Factory Registration Number:	66000728
Factory Manager:	Yongyao Bai
Status:	In Production
Date of Last Annual Return:	2011-12-14
Major Products:	293 Ordinary mechanical equipment

Personnel Information

Core Management

Directors

1
Name	Yongyao Bai
Position	Board Chairman
2
Name	Quan’an Zhan
Position	Director
3
Name	Jintang Lin
Position	Director
4
Name	Meixiu Hong
Position	Director
5
Name	Zhihui Chen
Position	Director
6
Name	Meizhu Chen
Position	Supervisor
7
Name	Huimin Zhang
Position	Supervisor

Personnel Structure

Total Employees

About 400 Employees

Operation Information

Offices & Factories

	Headquarters
Add	No.71, Lane 20, Dafu Rd., Shengang Dist., Taichung City 429, Taiwan (R.O.C.)

Production Information

Subject is engaged in manufacturing of mechanical parts

Subject has factories in Taichung City, Taiwan for production.

Subject obtained the certification of ISO-9001 and environmental certification of ISO-14001.

Purchase Information

The registered activities of subject:

Business Code	Details
CB01990	Other machinery manufacturing (straightening machine, tester, bearing and mechanical parts)
CA04010	The surface treatment industry
CB01010	Machinery and equipment manufacturing
F106010	Hardware wholesale
F113010	Mechanical wholesaling
F113990	Other mechanical appliances wholesale (straightening machine, tester, bearing and motor)
F206010	Hardware retail
F213080	Mechanical equipment retail
F213990	Other mechanical appliances retail (straightening machine, tester, bearing and motor)
F401010	The international trade
F401030	Manufacturing output
CC01010	Machine building industry of generate electricity, power transmission and distribution
CC01990	Other motors and Electronic machinery equipment manufacturing (motor)
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

The components and raw materials for production are mostly purchased in Taiwan.

Some components and raw materials are imported from Japan, etc.

Sales Information

Subject is engaged in sale of mechanical parts

The major products sold by subject include ball screws & linear guideway

Subject’s sales regions include domestic market, Japan, Korea, India, US, Germany, Italy, etc.

Subject has distributors in some cities of Mainland China like Shenyang, Beijing, etc.

The general delivery lead time of subject is about 40 days.

Subject’s major customers are Southwestern Industries Inc. and Robert’s Ballscrew Repair Service, Inc.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Product	Terms	Proportion
Components	T/T, Cash, etc	100%

Foreign Purchase

Product	Terms	Proportion
Components	L/C, T/T, etc	100%

Sales

Domestic Markets

Product	Terms	Proportion
Ball screws, linear guideway.	T/T, Cash, etc	100%

Export

Product	Terms	Proportion
Ball screws, linear guideway.	L/C, T/T, etc	100%

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

Bankers

Name	Bank of Taiwan

Public Record

Mortgage

1
Case Type:	Chattel Mortgage
Certificate No.:	084363
Debtor Name:	Precision Motion Industries, Inc.
Document Number:	09405137200
Date of Registration:	2005-07-29
Date of Alteration:	2006-07-26
2
Case Type:	Chattel Mortgage
Certificate No.:	084472
Debtor Name:	Precision Motion Industries, Inc.
Document Number:	09405141400
Date of Registration:	2005-08-09
Date of Alteration:	2006-07-26
3
Case Type:	Chattel Mortgage
Certificate No.:	085205
Debtor Name:	Precision Motion Industries, Inc.
Document Number:	09405168000
Date of Registration:	2005-10-20
Date of Alteration:	2006-07-26
4
Case Type:	Chattel Mortgage
Certificate No.:	086161
Debtor Name:	Precision Motion Industries, Inc.
Document Number:	09505067460
Date of Registration:	2006-01-20
Date of Alteration:	2006-07-28
5
Case Type:	Chattel Mortgage
Certificate No.:	086994
Debtor Name:	Precision Motion Industries, Inc.
Document Number:	09505101590
Date of Registration:	2006-04-19
6
Case Type:	Chattel Mortgage
Certificate No.:	088062
Debtor Name:	Precision Motion Industries, Inc.
Document Number:	09505141250
Date of Registration:	2006-07-26
7
Case Type:	Chattel Mortgage
Certificate No.:	089103
Debtor Name:	Precision Motion Industries, Inc.
Document Number:	09505180160
Date of Registration:	2006-11-08
8
Case Type:	Chattel Mortgage
Certificate No.:	089359
Debtor Name:	Precision Motion Industries, Inc.
Document Number:	09505189730
Date of Registration:	2006-12-04
9
Case Type:	Chattel Mortgage
Certificate No.:	091201
Debtor Name:	Precision Motion Industries, Inc.
Document Number:	09605121930
Date of Registration:	2007-06-21
10
Case Type:	Chattel Mortgage
Certificate No.:	091582
Debtor Name:	Precision Motion Industries, Inc.
Document Number:	09605137590
Date of Registration:	2007-07-31
11
Case Type:	Chattel Mortgage
Certificate No.:	093822
Debtor Name:	Precision Motion Industries, Inc.
Document Number:	09705085010
Date of Registration:	2008-03-26
12
Case Type:	Chattel Mortgage
Certificate No.:	094243
Debtor Name:	Precision Motion Industries, Inc.
Document Number:	09705100130
Date of Registration:	2008-05-01
13
Case Type:	Chattel Mortgage
Certificate No.:	094854
Debtor Name:	Precision Motion Industries, Inc.
Document Number:	09705123910
Date of Registration:	2008-07-01
14
Case Type:	Chattel Mortgage
Certificate No.:	095410
Debtor Name:	Precision Motion Industries, Inc.
Document Number:	09705145240
Date of Registration:	2008-08-26
15
Case Type:	Chattel Mortgage
Certificate No.:	097052
Debtor Name:	Precision Motion Industries, Inc.
Document Number:	09830424760
Date of Registration:	2009-03-31

Lawsuit

Up to date of reporting, no existing or latent litigation of the subject has been found.

Interview Details

Name	Ms. Li
Department	Sales

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.58.86
UK Pound	1	Rs.98.82
Euro	1	Rs.80.72

INFORMATION DETAILS

Report Prepared by :

MNL

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.