MIRA INFORM REPORT

Report Date :

02.03.2007

IDENTIFICATION DETAILS

Name :	ARTLAND GARMENT FACTORY

Registered Office :	Unit 1 & 5, 5/F, Sun Cheong Ind'l Building,1 Cheung Shun Street, Cheung Sha Wan, Kowloon

Country :	Hong Kong

Date of Incorporation :	26-9-1960

Com. Reg. No.:	1051971

Legal Form :	Partnership

Line of Business :	Engaged in manufacturing & export of garments.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

name & address

ARTLAND GARMENT FACTORY

UNIT 1 & 5, 5/F, SUN CHEONG IND'L BUILDING,1 CHEUNG SHUN STREET,

CHEUNG SHA WAN, KOWLOON, HONG KONG.

TEL: 852 27434618

FAX: 852 27856171

EXECUTIVE SUMMARY

INCORPORATION DATE : 26-9-1960

REGISTRATION NO. : 1051971

REGISTERED LEGAL FORM : PARTNERSHIP

CHIEF EXECUTIVE : CHAN KAM WAH (PARTNER)

STAFF STRENGTH : 30

AUTHORIZED CAPITAL : [IN HK, UNLIMITED COMPANIES ARE NOT REQUIRED TO FILE ITS

CAPITAL PARTICULARS TO BR OFFICE (THE INLAND REVENUE)]

PAID-UP CAPITAL : NOT APPLICABLE

BUSINESS LINE : MANUFACTURE & EXPORT OF GARMENTS

TURNOVER : HK$30M (YEAR ENDED 31-12-2005)

EQUITIES : N/A (AS OF DEC. 31, 2005)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : FAIRLY LARGE AMOUNT

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : HKD 7.81155 = USD1 AS OF 2007-03-02

Adopted abbreviations:

ANS - amount not stated

NS - not stated

SC - subject company (the company inquired by you)

NA - not available

M - million

HKD – Hong Kong Dollars

The correct address of SC is the heading one instead of "Unit 1 5/F Cheung Shun ST Suncheong Ind Bldg Cheungshawan Kowloon Hong Kong" given by you.

SC was established under Business Registration number 1051971 on 26-9-1960 with present status as partnership.

Currently obtained BR copy indicate the particulars of SC's principal(s) are as follows:

Name(s) of principal(s) & ID/Passport number(s) Registered address

Chan Kam Wah / E470613(0) 14/F, 120D Broadway, Mei Foo Sun

Chuen, Kowloon, HK.

Chan Kam Chuen / E304145(3) 8/F, 130D Broadway, Mei Foo Sun

Chuen, Kowloon, HK.

Chan Kam Fai / G217269(A) 14/F, 98A Broadway, Mei Foo Sun

Chuen, Kowloon, HK.

Chan Kam Ho / E942617(9) -- ditto --

No material change or amendment regarding SC has been traced within last 4 years.

Total number of employees : 30.

Location : Maintaining its office at the heading business address which occupies a gross area of 4,000 square feet at an industrial building in an industrial district.

Condition inside the premises during our visit : Normal.

Office/factory layout : Standard.

This section will contain the civil litigations & winding-up petitions filed against SC for the last 6 years (as stored in our database), and the mortgage/charge filed by SC for the last 2 years. In Hong Kong, creation of such mortgages/charges by an unlimited co is not required to be registered in the public records.

Civil litigation/winding-up petitions : None in our database.

Mortgage/charge record(s) : In HK, unlimited companies are not required to file its charge particulars for public inspection.

Chan Kam Wah, partner:

- In his mid 50's & married

- He has over 20 years of working experience in present field

Currently active in SC's day-to-day operations & is responsible for its management.

Registered residential address: As stated above.

Property ownership: Current land search indicates the said premises ownership as follows:

- Owner(s) : Chan Kam Seung + Fung Ping Keung

- Date of purchase & consideration : 23-1-2002 / $1.38M

- Date of mortgage & secured amount : NA

- Mortgagee : NA

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

Debt collection records : No overdue amount owed by the said person was placed to us for collection

Chan Kam Chuen, partner:

- In his early 50's & married

- Embarked upon his career to present field as a small businessman in his late 20's

Currently active in SC's day-to-day operations & is responsible for its management.

Registered residential address: As stated above.

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

Debt collection records : No overdue amount owed by the said person was placed to us for collection

Ownership background appraisal:

Rating : 2 Obtained scores : 62 (see explanatory notes below)

Keys : 1 : scores 81-100 : Excellent

2 : scores 61-80 : Good

3 : scores 46-60 : Average

4 : scores 21-45 : Fair

5 : scores 01-20 : Poor

The rating indicates the personal financial & operational strength of SC's major principals. It is calculated from a composite of scores obtained from the following 5 factors which carry equal weight in our analysis:

Personal financial strength, credit history & trade reputation, business experience & track record, market connection and management skill.

Business categories :

SC is engaged in manufacturing & export of garments.

Items available include woven & knitted shirts, sport & tee shirts, jackets, suits, track & training suit (for men, women & children).

Production is assigned to its affiliated factory/joint venture factory Wayjet (Guangzhou) Garments Co.Ltd., located at Guangzhou, Guangdong Province, PR China (workforce: 400).

A portion is sold under its own brand(s) `Orator' & `Corolla'.

Principal purchases :

Major types of sourcing : Raw materials & accessories

Local--type of suppliers : Importers & manufacturers

Buying terms : COD & credit of 30-45 days

Overseas--supplying countries : PR China

Buying terms : L/C & T/T

Principal market :

Local--type of customers : Nil

Selling terms : Nil

Overseas--buying countries : SE Asia & Middle East

Selling terms : L/C & T/T

SC is not known to have any subsidiary at present.

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 records and our debt collection record concerning SC.

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.

Banking relations are maintained principally with: HSBC.

Upon a current contact, Ms. Lam, SC's administrator, declined forwarding any financial information on the ground that it is the company's policy not releasing any data to a third party without the benefit of knowing the identity of the inquiring party.

Our findings revealed that SC's turnover for the year ended 31-12-2005 was $30M.

SC is considered an old-established business with acceptable financial base to meet fairly large amount of credit dealings.

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