MIRA INFORM REPORT

Report Date :

09.09.2008

IDENTIFICATION DETAILS

Name :	Garlock Sealing Technologies (Shanghai) Co., Ltd.
Registered Office :	No. 628, Xingmei Road, Minhang District, Shanghai, 200237 Pr
Country :	China
Date of Incorporation :	07.12. 2007
Com. Reg. No.:	310000400552561
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Manufacturer and Seller of Sealing Materials, Components, etc; Supplying Related Technology and After-Sales Services

RATING & COMMENTS

MIRA’s Rating :

B

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.	Small

Maximum Credit Limit :	USD 10,000
Status :	New Company
Payment Behaviour :	No Complaints
Litigation :	Clear

name & address

Garlock Sealing Technologies (Shanghai) Co., Ltd.

NO. 628, XINGMEI ROAD, MINHANG DISTRICT, SHANGHAI, 200237 PR CHINA

TEL: 86 (0) 21-64544412 FAX: 86 (0) 21-64553140

EXECUTIVE SUMMARY

INCORPORATION DATE : DECEMBER 7, 2007

REGISTRATION NO. : 310000400552561

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED enterprise

CHIEF EXECUTIVE : MR. JOHN RICHARD MAYO (CHAIRMAN)

STAFF STRENGTH : 71

REGISTERED CAPITAL : USD 1,700,000

BUSINESS LINE : MANUFACTURING

TURNOVER : N/A

EQUITIES : N/A

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 10,000

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.84477 = US$ 1

Adopted abbreviations:

ANS - amount not stated

NS - not stated

SC - subject company (the company inquired by you)

NA - not available

CNY - China Yuan Renminbi

SC was registered as a wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on December 7, 2007.

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 investor 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 special inorganic non-metal sealing materials, filling static sealing and other sealing materials, components, and tube parts; selling self-made products; supplying related products technology and after-sales services.

SC is mainly engaged in manufacturing and selling sealing materials, components, etc; supplying related technology and after-sales services.

Mr. John Richard Mayo has been legal representative and chairman of SC since December 2007.

SC is known to have approx. 71 employees 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 2,000 square meters.

http://www.garlock.com/ The web belongs to Garlock Sealing Technologies. The design is professional and the content is well organized. At present it is in Chinese and English versions.

SC’s accountant released that SC started normal business at the beginning of 2008.

MAIN SHAREHOLDERS:

Name % of Shareholding

Enpro Hong Kong Holdings Co., Ltd. 100

l Legal representative and chairman:

Mr. John Richard Mayo, American. He is currently responsible for the overall management of SC.

Working Experience(s):

From 2007 to present Working in SC as chairman and legal representative.

l General manager:

Mr. Chen Sida, Chinese American, born in 1964. He is currently responsible for the daily management of SC.

Working Experience(s):

From 2007 to present Working in SC as general manager.

SC is mainly engaged in manufacturing and selling sealing materials, components, etc; supplying related technology and after-sales services.

Main Products: compress filling, filling piece products, expansion pipe, metal gasket, etc.

SC sources its materials 30% from domestic market, and 70% from overseas market, mainly U.S.A. and Canada. SC sells 100% of its products in domestic market.

The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days. The payment terms of SC include Check, T/T and Credit of 30-60 days.

SC’s accountant released that SC started normal business at the beginning of 2008.

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 and our debt collection record concerning SC.

Trade payment experience : SC did not provide any name of trade/service suppliers and we have no other sources to conduct the enquiry at present.

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 & Commercial Bank of China Shanghai Minhang Sub-branch Xinzhuang Industry Zone Office

AC#1001140209016233475

Relationship: Normal.

SC started normal business at the beginning of 2008, so its financial reports are not available at present.

SC is considered small-sized in its line with a short history. The given credit amount would appear to be beyond SC’s capacities, while a credit line up to USD 10,000 is recommended.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.26
UK Pound	1	Rs.79.00
Euro	1	Rs.63.53

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