MIRA INFORM REPORT

Report Date :

3^rd November, 2006

IDENTIFICATION DETAILS

Name :	ITEMA (ASIA) LIMITED

Registered Office :	Unit 619 Chevalier Commercial Centre 8 Wang Hoi Rd Kowloon Bay Kowloon, Hong Kong

Country :	Hong Kong

Date of Incorporation :	28.07.1994

Com. Reg. No.:	483728

Legal Form :	Private Company

Line of Business :	Engaged in the trading of textile machines.

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 :	Regular

Litigation :	Clear

Name & address

ITEMA (ASIA) LTD

UNIT 619 CHEVALIER COMMERCIAL CENTRE 8 WANG HOI RD KOWLOON BAY KOWLOON, HONG KONG

TEL :886-2-23171420

FAX :886-2-23171612

EXECUTIVE SUMMARY

INCORPORATION DATE : JUNE 28, 1994

REGISTRATION NO. : 483728

LEGAL FORM : PRIVATE COMPANY

CHIEF EXECUTIVE : MR. DANILO ENRICO ARIZZI (CHAIRMAN)

STAFF STRENGTH : 6

CAPITAL : US$ 1,289

BUSINESS LINE : TRADER

TURNOVER : N/A (AS OF DEC. 31, 2004)

EQUITIES : N/A (AS OF DEC. 31, 2004)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : USD 10,000

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : AVERAGE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : TWD 32.4695 = US$1 AS OF 2006-6-16

*Company Name*

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

Incorporated as : SOMET (ASIA) LTD

Date of incorporation : 28 June, 1994

Changed name to : ITEMA (ASIA) LTD

Date of change : 29 January, 2001

*Company Registration*

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

(1) License number : 483728

Date issued : 28 June, 1994

Issuing authority : Companies Registry

Type of license : Corporate license

(2) License number :18344757

Date issued : N/A

Issuing authority : Business Registration Office

Type of license : Business license

*Capital Details*

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

Authorized capital : HKD10,000 divided into 10,000 ordinary shares of HKD 1.00/-each, fully paid.

*Charge*

========

Creation date : 1 September, 2001

Secured instrument : General Banking Facilities

Chargee/Beneficiary : BANCA NAZIONALE DEL LAVORO SPA - HONG KONG BRANCH

Amount secured by charge : EUR 8,600

*Office & Facilities*

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

Location : Commercial district

Property status : Rented

Type of building : Commercial building

Current land search on the above premise indicates the following:

Ownership : Hing-Fai Tang

Date of purchase & amount : 13 May, 2000/ HKD 750,000

Date of mortgage & amount : 12 June, 2000/ Amount Not Specified

Mortgagee : General Banking CHEKIANG FIRST BANK LTD Facilities.

Other E-mail: info@itemaasia.com

*Corporate & Organization Structure*

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

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

*Factories, Size & Locations*

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

The company is a trading house which out-sources all orders to its affiliate factories located in China and Italy.

Hence there are no production facilities directly owned by the company.

*Reputation*

==========

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

Email : sofe@asia.online.net

Litigation ( 1 )

Position : Defendant

Other Parties Involved : Position Country Party's Name

Plaintiff Hong Kong A-LINK EXPRESS (HONG KONG) LTD

Case Issue : Service Charge (file under case no. SCTC836509/2002)

Court : District Court, Hong Kong

Date Commenced : 28 January, 2003

Status : Not stated

*Major Shareholders*

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

Total number of shareholders : 2

Total number of ordinary shares : 10,000

Shareholders' Name No. of Ordinary Shares Amount of Shares (HKD) % of Shares

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

ITEMA INT'L BV 9,999 9,999.00 99.99

ITEMA HOLDING SPA 1 1.00 0.01

*Directors' Details*

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

(1) Wing-yan Lee

HKID no. : K26802(3)

Address : Flat H 5Fl Glamour Graden 1-5 Chik Fai St, Shatin, New Territories, Hong Kong

(2) Fabio Mazzucchetti

Passport no. : Y233805

Address : Via Beretta 39, Ranica, BG, Italy

Remarks : Current land search on the above premise indicates the following:

Note : Current asset tracing indicates that Fabio Mazzucchetti is not registered as an assignee in any property transactions in Hong Kong within the last 6 years.

Responsibilities : Day-to-day operations & management of the company.

Credit history check : This refers to a check of our database whether the said person has been involved in any of the following stored by us within the last 6 years:

- Civil litigation as defendants : None in our database

- Bankruptcy/winding-up petitions : None in our database

- Delinquent payment records : None in our database

(3) Alessandro Paccanelli

Passport no. : Y230188

Address : Via Todeschini 4, Mozzo, Bergamo (BG), Italy 24030

Management : Mr. Alessandro Paccanelli, Director

Mr. Danilo Enrico Arizzi, Director

Mr. Fabio Mazzucchetti, Director

*COMPANY MANAGEMENT*

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

Name Job Description Nationality

Mr. Wing-yan Lee Director Hong Kong

Ms. Eva Lee Sales Manager Hong Kong

*Key Personnel*

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

Danilo Enrico Arizzi

Passport no. : Y270461

Address : Via M Meris 32/A, Albino, BG, Italy

Remarks : Current land search on the above premise indicates the following:

Note : Current asset tracing indicates that Danilo Arizzi is not registered as an assignee in any property transactions in Hong Kong within the last 6 years.

Responsibilities : Day-to-day operations & management of the company.

Other position : Director, SOMET (FAR EAST) LTD

Credit history check : This refers to a check of our database whether the said person has been involved in any of the following records stored by us within the last 6 years:

- Civil litigation as defendants : None in our database

- Bankruptcy/winding-up petitions : None in our database

- Delinquent payment records : None in our database

*Corporate Secretary*

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

SECRECO LTD

HK C.R No. : 139490

Address : 8Fl, Gloucester Tower, The Landmark, 11 Pedder St, Central, Hong Kong.

*Main Products & Services*

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

Specializes in trading of textile machines.

Products : Technology consultancy

Textile machinery

Textiles

Weaving machinery

Winding machine

*Payment Terms*

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

Sales

------

Local : Cash

30-60 days credit

Export : Letter of Credit (L/C)

Telegraphic Transfer (T/T)

Purchases

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

Import : Letter of Credit (L/C)

Telegraphic Transfer (T/T)

*Local Distribution Network*

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

1% of the annual turnover is attributed to local sales

*Imports*

========

Weaving machines are imported from its parent company in Italy.

*Export Markets*

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

99% of the annual turnover is attributed to export to the following countries:

- China

- Australia

- Japan

- Korea

- Taiwan

- South East Asia

SC is not known to have any subsidiary at present.

PAYMENT RATING :3 OBTAINED SCORES : 50

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.

*Bank Details*

===========

Bank name : BANCA MONTE DEI PASCHI DI SIENA

Bank: BANCA NAZIONALE DEL LAVORO SPA

Bank: HONGKONG & SHANGHAI BANKING CORP LTD

Over the past 12 years, SC has made a stable growth with satisfactory profit. We consider a credit line up to USD10,000 appears acceptable.

Attached: trade references

SIC PRODUCT CLASSIFICATION & ACTIVITY

Activity Code Product/Service Description

Service 8748 Business Consulting Svcs, NEC

Trading 2200 Textile Mill Products

Trading 3552 Textile machines, nspf, and parts and attachments, nspf

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Activity Code Product/Service Description

Service 9878 Business development/consulting

Service 9960 Export trading/management company

Trading 6805100000 Abrasive articles on a base of woven textile fabric only

Trading 8420101000 Textile calendering or rolling machines

Trading 8445200000 Textile spinning machines

Trading 8445300010 Textile twisting machines

Trading 8445300090 Textile doubling machines

Trading 8445400000 Textile winding (including weft winding) or reeling machines

Trading 8448 Auxiliary machinery for use with textile machines

INTERNATIONAL TRADE : ACTIVITY & MARKETS

Exporting to Asia

Exporting to Australia

Exporting to China

Exporting to Japan

Exporting to South Korea

Exporting to Taiwan

Importing from Asia

Importing from China

Importing from Europe

Importing from Italy

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