MIRA INFORM REPORT

Report Date :

28^th April 2006

IDENTIFICATION DETAILS

Name :	CVC TECHNOLOGIES, INC (CHINA)

Registered Office :	No.1, Building, Lane 1343, Tongpu Road, Putuo District, Shanghai, 200062, Pr China

Date of Incorporation :	SEP 26, 2000

Legal Form :	02760

Line of Business :	Engaged in manufacturing and selling of auto-labeler machine, bottle cap-making machines, label printing machines.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Status :	Moderate

Payment Behaviour :	Regular

Litigation :	Clear

NAME & ADDRESS

CVC TECHNOLOGIES, INC (CHINA)

NO.1, BUILDING, LANE 1343, TONGPU ROAD, PUTUO DISTRICT,

SHANGHAI, 200062, PR CHINA.

TEL: 86 (0) 21-52703030

FAX: 86 (0) 21-52696019

EXECUTIVE SUMMARY

INCORPORATION DATE : SEP 26, 2000

REGISTRATION NO. : 02760

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : MR. YANG SHENGHUI (CHAIRMAN)

STAFF STRENGTH : 400

REGISTERED CAPITAL : USD 1,000,000

BUSINESS LINE : MANUFACTURING

TURNOVER : RMB 11,053,000 (AS OF DEC. 31, 2004)

EQUITIES : RMB 2,026,000 (AS OF DEC. 31, 2004)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 20,000

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

exchange rate : rmb 8.02 =us$1 as of 2006-04-27

SC was registered as a wholly foreign-owned enterprise at local Administration for Industry & Commerce (The official body of issuing and renewing business license) on Sep 26, 2000.

Company Status: Wholly foreign-owned enterprise

This form of business in PR China is defined as a legal person. It is a limited co. established within the territories of PR China with capital provided totally by the foreign investors. More than one foreign investors may jointly invest in a wholly foreign-owned enterprise. The investing party/parties solely exercise management, reap profit and bear risks and liabilities by themselves. This form of companies usually have a limited duration is extendible upon approval of Examination and Approval Authorities.

SC’s registered business scope includes manufacturing, processing Auto-labeler machine, Liquid packing machines, Bottle cap-making machines, and Printing label machines. Selling of its products. (In accordance with the license.)

SC is mainly engaged in manufacturing and selling of the auto-labeler machine, bottle cap-making machines, label printing machines.

Mr. Yang ShengHui has been chairman of SC since 2000.

SC owns about 400 staff at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Shanghai. Our checks reveal that SC rents the total premise about 60,000 square meters.

http://www.kkpower.com the design is professional and the content is well organized. At present it is in Chinese version.

E-mail: kkpower@online.ch.cn

The name of SC was changed from “Shanghai Shikai Machinery Co., Ltd.” to the present one on April 13, 2004.

SC’s registered capital was changed from “USD 350,000” to “USD 1,000,000” on May 8,2005.

SC’s address was changed to “No.1, Building, Lane 1343, Tongpu Road, Putuo District, Shanghai.” in Sep. of 2005.

MAIN SHAREHOLDERS:

Name USD’000 % of shareholding

CVC TECHNOLOGIES INC. (U.S.A.) 1,000 100

Chairman and General Manager:

Mr. Yang ShengHui in his 60’s with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

From 2000 to present Working in SC as Chairman and general manager.

SC is mainly engaged in manufacturing and selling of auto-labeler machine, bottle cap-making machines, label printing machines.

SC sources its materials 60% from domestic markets and 40% from foreign markets; SC sells 20% of its products in domestic market and exports 80% of its products to international market.

The buying terms of SC include: L/C, T/T, Check and Credit of 60-90 days. The payment terms of SC include: Check, L/C, T/T and Credit of 60-90 days, according to different customers.

*Main suppliers*

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

CVC Technologies Inc.

*Main Customer*

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

Shanghai Huajia Pharmaceutical Equipment Co., Ltd.

Company Name : CVC TECHNOLOGIES INC

Global Identifier : P0351948

Address : Unit 211 Prestige Centre Point 7 Cunningham Rd Bangalore 560052 Karnataka India

Country : India

Relationship : Affiliate

Formation : Private

Company Type : Trader

Industry : Machinery

Company Name : CVC TECHNOLOGIES INC

Global Identifier : P0351953

Address : 58 Ul Kantemirovskaya Block 7033 Moscow 115477 Russia

Country : Russia

Relationship : Affiliate

Formation : Private

Company Type : Trader

Industry : Machinery

Company Name : CVC TECHNOLOGIES INDONESIA PT

Global Identifier : P0351949

Address : 25 Jalan Gading Kirana Timur Block A 13 Jakarta 14240 Indonesia

Country : Indonesia

Relationship : Affiliate

Formation : Private

Company Type : Trader

Industry : Machinery

Company Name : JAN CHENG TECHNOLOGIES CO LTD

Global Identifier : P0350200

Address : 1Fl, 2, Lane 64, Tung Kuang Yuan Rd East Dist Taichung City 401 Taiwan

Country : Taiwan

Relationship : Affiliate

Formation : Private

Company Type : Trader

Industry : Machinery

Company Name : KK POWER (ASIA) CO LTD

Global Identifier : 31516811

Address : 361 Jen Hua Rd Tali City 412 Taichung Hsien Taiwan

Country : Taiwan

Relationship : Affiliate

Formation : Private

Company Type : Manufacturer

Industry : Machinery

Overall payment appraisal :

( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet determined

The appraisal serves as a reference to reveal SC's payments habits and ability to pay. It is based on the 3 weighed factors: Trade payment experience (through current enquiry with SC's suppliers), our delinquent payment and our debt collection record concerning SC.

Trade payment experience: SC refused to release any information of its suppliers and the trade reference was not available.

Delinquent payment record: None in our database.

Debt collection record: No overdue amount owed by SC was placed to us for collection within the last 6 years.

Industrial and Commercial Bank of China Hongqiao Sub-branch

AC#022427-1001242709200000871

Relationship: Normal.

Balance Sheet

Unit: RMB’000

	As of Dec. 31, 2003	As of Dec. 31, 2004
Cash & bank	430	20
Accounts payable advance	120	0
Accounts receivable	4,290	5,760
Inventory	1160	490
Other accounts receivable	890	720
Expenses to be apportioned	0	0
Other current assets	10	10
	------------------	------------------
Current assets	6,900	7,000
Fixed assets	510	670
Projects under construction	0	0
Other assets	0	0
	-------------------	------------------
Total assets	7,410	7,670
	=============	=============
Short loans	0	0
Accounts payable	5,050	5,210
Salary payable	0	0
Tax payable	50	10
Account receivable advance	0	0
Estimated liabilities	0	0
Long-term investment with in one year	0	0
Other accounts payable	200	380
Drawing-expense in advance	0	0
Other current liabilities	0	50
	---------------------	------------------
Current liabilities	5,300	5,640
Long term liabilities	0	0
Other liabilities	0	0
	----------------------	------------------
Total liabilities	5,300	5,640
Equities	2,110	2,030
	--------------------------	------------------
Total liabilities & equities	7,410	7,670
	===============	=============

Income Statement

Unit: RMB’000

	As of Dec. 31, 2003	As of Dec. 31, 2004
Turnover	11,050	9,000
Cost of goods sold	8,730	6,870
Sales expense	1,550	1,480
Management expense	610	700
Finance expense	0	0
Profit before tax	160	-90
Less: profit tax	0	0
Profits	160	-90

Important Ratios

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

	As of Dec. 31, 2003	As of Dec. 31, 2004
*Current ratio	1.30	1.24
*Quick ratio	1.08	1.15
*Liabilities to assets	0.72	0.74
*Net profit margin (%)	1.45	-1.00
*Return on total assets (%)	2.16	-1.17
*Fixed assets/Total assets	0.07	0.09
*Inventory /Turnover ×365	38days	20days
*Accounts receivable/Turnover ×365	142days	233days
*Turnover/Total assets	1.49	1.17
* Cost of goods sold/Turnover	0.79	0.76

PROFITABILITY: FAIR

The turnover of SC appears acceptable in its line.

SC’s net profit margin is fair.

SC’s return on total assets is fair.

SC’s cost of goods sold is average, comparing with its turnover.

LIQUIDITY: AVERAGE

The current ratio of SC is maintained in a normal level.

SC’s quick ratio is maintained in a normal level.

The inventory of SC is average.

The accounts receivable of SC is fairly large.

SC’s turnover is in an acceptable level, comparing with the size of its total assets.

LEVERAGE: AVERAGE

The debt ratio of SC is average.

The risk for SC to go bankrupt is low.

Overall financial condition of the SC: Stable.

Over the past 5 years, SC has made a stable growth with acceptable profit. A credit line up to USD20,000 appears to be within SC’s capacities.

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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

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