MIRA INFORM REPORT

Report Date :

27.02.2007

IDENTIFICATION DETAILS

Name :	REACTION PRINT LIMITED

Registered Office :	1/3 Heb Place, Takanini, Auckland

Country :	New Zealand

Date of Incorporation :	17.00.1994

Legal Form :	Limited Liability Company

Line of Business :	Operates as screen printers.

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 :	Usually correct

Litigation :	Clear

REGISTERED NAME:	REACTION PRINT LIMITED

REGISTERED NUMBER:	631744

OPERATING ADDRESS:	1/3 Heb Place, Takanini, AUCKLAND

REGISTERED ADDRESS:	C/- Murray Lee, Chartered Accountants Limited, 3049 Great North Road, New Lynn, AUCKLAND

OTHER TRADING NAMES:	Nil

TELEPHONE NUMBER:	(09) 269 0002

WEB SITE ADDRESS:	Under construction

DATE OF INCORPORATION:	17 May 1994 – Incorporated in New Zealand

CHANGE OF NAME:	11 November 1994 - To present name.

PAID CAPITAL:	1,000 in $1 shares.

DIRECTOR:	PETER GRANT 671 Ponga Road, PAPAKURA

SHAREHOLDERS:	Refer HISTORY

SECRETARY:	Not shown

AUDITORS:	Not shown

REGISTERED CHARGES:	Refer REGISTERED CHARGES

PAYMENTS:	60 days

LEGAL ACTIONS / DEFAULTS:	Nil

EMPLOYEES:	12

PARENT COMPANY

NIL

SUBSIDIARY COMPANIES

NIL

ASSOCIATE COMPANIES

Pacesetter Screen Print Pty Ltd – Sydney, Australia

ACTIVITIES

The subject operates as screen printers.

Work is undertaken on behalf of corporate clients.

Operations are conducted from leased premises situated at the heading address.

The company does not have any branches.

The subject employs 12 in activities.

The director is active in company operations.

HISTORY

The subject was incorporated in New Zealand on 17 May 1994 as Screen It Limited, adopting the present name on 11 November 1994.

Registered Number: 631744.

Paid capital $1,000 in 1,000 shares paid to $1 each.

Shares are held by:

PETER GRANT 800

VICTORIA GRANT 200

The above information is in accordance with the last Annual Return lodged with the New Zealand Companies Office on 10 April 2006 and compiled at report date.

Operations of the company were commenced in 1990.

The subject has the associate company, Pacesetter Screen Print Pty Ltd, operating in Sydney, Australia.

DIRECTOR

PETER GRANT was appointed to the board of directors on 5 February 2002. He is fully active in the day to day operations of the company.

It was advised during the current investigation that Victoria Grant is also a director of the subject. However, this is not reflected in held with the New Zealand Companies Office.

BANK

ANZ NATIONAL BANK LIMITED

HAMILTON

The subject maintains bank overdraft facilities.

The bank holds a Registered Charge over company assets. Please refer to the REGISTERED CHARGE section for details.

TRADING

Following are details of a trade survey undertaken in February 2007:

This account varies between $3,000-$5,000 per month. The terms of the account are payment by the 20^th of the following month, with payment being met in 60 days. The account was opened in June 2002 and there are no problems.

This supplier could not be contacted as at report date.

FINANCE

The subject has not lodged financial accounts with the New Zealand Companies Office.

REGISTERED CHARGES

The following Registered Charges have been recorded over the subject’s assets:

On 4 September 2002, Charge to ANZ National Bank Ltd, charging all present and after acquired personal property.

On 10 November 2003, charge to Alfred Holt & Co Ltd, charging all present and after acquired personal property.

The ‘Personal Property Securities Act 1999’ (PPSA) came into effect on 1 May 2002.

The PPSA has brought together registered charges that were historically created under several different Acts, e.g. debentures registered pursuant to the Companies Act and charges over specific assets registered pursuant to the Chattels Transfer Act 1924.

Charges registered are called Security Interests.

The PPSA is also used by suppliers to register a charge over goods which have been supplied to the subject in respect of which the supplier terms of trade may previously have contained a “reservation of title” clause.

Charges over land are not registered under the PPSA and there may be charges over land in the name of the subject.

There are also 6 Security Interests registered over goods – other and/or goods – motor vehicles.

RECORDED ACTIONS

Nothing of an adverse nature has been recorded against the subject.

INVESTIGATION

An interview was conducted with Ms Victoria Grant in February 2007. At this time she confirmed operational and trading details and advised the following:

Annual sales of the company are in the vicinity of $1,900,000.

The subject does not hold stock, printing to order.

Trade debtors are valued at $283,028 and trade creditors at $189,553.

The subject maintains bank overdraft facilities.

Premises at the heading address are leased.

However, further financial information could not be provided.

Enquiries made with trade sources failed to trace any additional information in relation to the subject.

A Land Titles Search has not been undertaken to ascertain what land, if any, stands in the subject’s name. This can be undertaken on request.

CONCLUSION

The subject was incorporated in New Zealand on 17 May 1994 as Screen It Limited, adopting the present name on 11 November 1994.

Paid capital $1,000 in 1,000 shares paid to $1 each.

The subject operates as screen printers.

One supplier contacted has reported monthly commitments being met in 60 days and is considered a no problem account.

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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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