MIRA INFORM REPORT

Report Date :

08.05.2008

IDENTIFICATION DETAILS

Name :	QUALICAPS INC
Registered Office :	6505 Franz Warner Pkwy Whitsett, NC 27377-9215
Country :	United States
Date of Incorporation :	01.13.1993
Com. Reg. No.:	841949146
Legal Form :	Private Limited Company
Line of Business :	Pharmaceutical Preparations

RATING & COMMENTS

MIRA’s Rating :

A

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 :	Slow by 5 days
Litigation :	Clear

Company Information

QUALICAPS INC
6505 FRANZ WARNER PKWY
WHITSETT, NC 27377-9215
(336) 449-3900

Business Identification Number:

841949146

File Established:

11/1993

Date of Incorporation:

01/13/1993

SIC code:

PHARMACEUTICAL PREPARATIONS - 2834

Executive Summary

  Intelliscore for QUALICAPS INC

76.16

0-32.47

32.48-58.63

58.64-70.19

70.2-77.71

77.72-100

0

100

High risk

Low risk

LOW TO MEDIUM RISK
82% of businesses indicate a higher risk of becoming seriously delinquent than this business

Key score factors:

	RATIO OF BALANCE ON SLOW PAYING ACCOUNTS TO ALL BALANCES
	HISTORY OF SLOW PAYING ACCOUNTS
	NUMBER OF GOOD ACCOUNTS
	NUMBER OF RECENTLY ACTIVE ACCOUNTS

  Current DBT range compared to all industries*

5 DBT
($19,000 Balance)

0-15

16-50

51+

80%

11%

9%

% of US businesses falling within DBT range

DBT Norms:
All industries: 6 DBT        Same industry: 7 DBT

Legal Filings and Collections

Bankruptcy filings:

0

Tax lien filings:

0

Judgment filings:

0

Total collections:

0

Sum of legal filings:

$0

UCC filings: details (FILED 03/06-09/07)

2

Cautionary UCC filings present?

Yes**

Trade Information

Monthly average DBT:

2

Highest DBT previous 6 months:

5

Highest DBT previous 5 quarters:

16

Total continuous trades:

11

Current continuous trade balance:

$19,000

Trade balance of all trades (17):

$103,900

Average balance previous 5 quarters:

$20,160

Highest credit amount extended: details

$56,600

6 month balance range:

$13,600 - $28,900

* Days Beyond Terms (DBT) is a dollar weighted calculation of the average number of days that payment was made beyond the invoice due date based on trades on file that have been updated in the previous 3 months.

** Cautionary UCC Filings include one or more of the following collateral: Accounts, Accounts Receivables, Contract Rights, Hereafter Acquired Property, Inventory, Leases, Notes Receivable or Proceeds.

  7 month DBT trends

90+

60

30

2

2

2

1

5

5

5

0

Oct07

Nov07

Dec07

Jan08

Feb08

Mar08

Current

  Quarterly DBT trends (previous 5 quarters)

90+

60

30

2

5

16

1

3

0

1Q07

2Q07

3Q07

4Q07

1Q08

Performance Analysis

Predicted DBT for 07/02/2008: 5 DBT

Payment Trend Indication:
Payments Are Increasingly Late

Industry payment comparison:
Has paid sooner than 50% of similar firms

Most Frequent Industry Purchasing Terms:
NET 30, CREDIT, and 0000000

Trade Payment Information

Trade Payment Experiences (Trade Lines With an (*) after date are newly reported)						Account Status Days Beyond Terms
Business Category	Date Reported	Last Sale	Payment Terms	Recent High Credit	Balance	Cur	1-30	31-60	61-90	91+	Comments
+AIR TRANS	03/2008			$14,400	$6,300	96%	4%				CUST 7 YR
AIR TRANS	03/2008		NET 30	$100	$0						CUST 5 YR
-CHEMICALS	03/2008		CREDIT	$1,000	$200		100%
COMPUTERS	03/2008			$2,000	$0						CUST 2 YR
ELEC EQUIP	03/2008		NET 30	$5,400	$0						CUST 57 YR
+ELEC EQUIP	03/2008	03/2008	CONTRCT	$56,600	$5,900	51%	49%
FINCL SVCS	04/2008	03/2008	CONTRCT		$0						SATSFTRY
=FREIGHT	03/2008	02/2008	VARIED	$4,300	$200		100%
+MACH DISTR	01/2008	01/2008	1/10N30	$6,800	$4,600	52%	48%				CUST 13 YR
=PACKAGING	04/2008		NET 30	$2,500	$1,800	75%	25%				CUST 6 YR
TRUCK DLR	01/2008		CONTRCT	$300	$0

Trade Payment Totals

Trade Payment Experiences				Account Status Days Beyond Terms
Type	Lines Reported	Recent High Credit	Balance	Cur	1-30	31-60	61-90	91+	Comments
Continuously Reported	11	$93,400	$19,000	67%	33%				DBT: 5
Newly Reported	0								DBT:
Trade Lines Totals	11	$93,400	$19,000	67%	33%				DBT: 5

Additional Payment Experiences

Trade Payment Experiences (Trade Lines With an (*) after date are newly reported)						Account Status Days Beyond Terms
Business Category	Date Reported	Last Sale	Payment Terms	Recent High Credit	Balance	Cur	1-30	31-60	61-90	91+	Comments
+CHEMICALS	10/2007	09/2007	NET 30	$31,400	$11,400	94%	6%
=COMPUTERS	06/2006	05/2006		$4,900	$4,900		100%
+ELEC EQUIP	10/2006		NET 30	$1,400	$400	100%
+ELEC MFG	09/2006		NET 30	$700	$700	100%
=HEATNG&A/C	09/2007		NET 30	$63,500	$63,500		100%
+PRNTG&PUBL	09/2006	09/2006	CONTRCT	$7,000	$4,000		100%				CUST 7 YR

Monthly Payment Trends

Payment Trends Analysis
PHARMACEUTICAL PREPARATIONS INDUSTRY SIC: 2834

Account Status
Days Beyond Terms

Date Reported

Industry

Cur

DBT

Business
DBT

Balance

Cur

1-30

31-60

61-90

91+

CURRENT

N/A

N/A

5

$19,000

67%

33%

MAR08

79%

7

5

$18,200

66%

34%

FEB08

77%

7

5

$23,600

72%

27%

1%

JAN08

80%

6

1

$28,700

92%

8%

DEC07

80%

6

2

$17,800

92%

7%

1%

NOV07

83%

5

2

$13,600

92%

7%

1%

OCT07

82%

6

2

$17,000

90%

10%

Quarterly Payment Trends

Payment History - Quarterly Averages				Account Status Days Beyond Terms
Quarter	Months	DBT	Balance	Cur	1-30	31-60	61-90	91+
Q1 - 08	JAN-MAR	3	$23,400	79%	21%
Q4 - 07	OCT-DEC	1	$14,800	91%	9%
Q3 - 07	JUL-SEP	16	$15,400	76%	3%	7%	7%	7%
Q2 - 07	APR-JUN	5	$25,700	64%	36%
Q1 - 07	JAN-MAR	2	$21,500	86%	14%

UCC Profile

The UCC Filings are summarized and listed below.

UCC Summary		Filings
Date Range	Year	Cautionary UCCs^**	Total Filed	Released/ Term'd	Cont	Amended/ Assigned
JAN - PRESENT	2008
JUL - DEC	2007	1	1	1
JAN - JUN	2007
JUL - DEC	2006
JAN - JUN	2006		1
PRIOR TO JAN	2006
Total		1	2	1

** Cautionary UCC Filings include one or more of the following collateral: Accounts, Accounts Receivables, Contract Rights, Hereafter Acquired Property, Inventory, Leases, Notes Receivable or Proceeds.

  UCC Filings

UCC FILED Date: 09/19/2007

Filing Number: 2007 3550513

Jurisdiction: SEC OF STATE DELAWAR

Secured Party: JP MORGAN CHASE BANK, N.A. TOKYO BRANCH, CHIYODA KU TOKYO

Collateral: HEREAFTER AQUIRED PROP, INVENTORY, UNDEFINED

UCC TERMINATED Date: 09/06/2007

Filing Number: 2007 3381984

Original Filing Date: 09/06/2007

Original Filing Number: 2007 33788

Original Filing State: DE

Jurisdiction: SEC OF STATE DELAWAR

Secured Party: QUALICAPS, INC.

Collateral: 

UCC FILED Date: 03/21/2006

Filing Number: 6094571 7

Jurisdiction: SEC OF STATE DELAWAR

Secured Party: US BANCORP MN MARSHALL 56258 1310 MADRID STREET STE 101

Collateral: EQUIP

Company Background Information

  Corporate Registration

THE FOLLOWING INFORMATION WAS PROVIDED BY THE STATE OF NORTH CAROLINA

State of Origin: NC

Date of Incorporation: 01/13/1993

Current Status: Active

Business Type: Institutions - Profit

Charter Number: 0318471

Agent: C T CORPORATION SYSTEM

Agent Address: 225 HILLSBOROUGH ST RALEIGH, NC

  Additional Company Background Information

Key Personnel

Principal(s):	HERB HUGILL, CEO
	GREG BOWERS, PRESIDENT
	GILES LEWIS, OPERATIONS

Operating Information

Business Type: Institutions

Primary SIC Code: PHARMACEUTICAL PREPARATIONS - 2834

Secondary SIC Code: DRUGS & PROPRIETARIES WHLSNG - 5122

Additional SIC Code: 2833

Number of Employees: 170

Sales: $175,000,000

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.	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