MIRA INFORM REPORT

Report Date :

15.12.2011

IDENTIFICATION DETAILS

Name :	FENITO ELECTRONICS TECHNOLOGY (SHENZHEN) CO., LTD
Registered Office :	Fenito Building, Bldg. B5, Yintian Industrial Zone, Xixiang Town, Baoan District, Shenzhen, Guangdong Province, 518102 Pr
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	09.08.2005
Com. Reg. No.:	440306503268045
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	manufacturing and selling remote controllers and conducting resin
No. of Employees :	250 persons

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 3,000
Status :	Small Company
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30^th, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
China	a2	a2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name & address

Fenito Electronics Technology (Shenzhen) CO., Ltd.

fenito building, bldg. b5, Yintian industrial zone, xixiang town, baoan district, SHENZHEN, GUANGDONG PROVINCE, 518102 PR CHINA

TEL: 86 (0) 755-23492063 FAX: 86 (0) 755-23492196

EXECUTIVE SUMMARY

INCORPORATION DATE : aug. 9, 2005

REGISTRATION NO. : 440306503268045

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED enterprise

CHIEF EXECUTIVE : MR. xie zhehong (CHAIRMAN)

STAFF STRENGTH : 250

REGISTERED CAPITAL : HKD 1,000,000

BUSINESS LINE : MANUFACTURING

TURNOVER : CNY 26,540,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 700,000 (AS OF DEC. 31, 2010)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 3,000 (PERIODICAL REVIEW)

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : fairly stable

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.34 = USD 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 Aug. 9, 2005.

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 and selling remote controllers, keyboards, conducting resin, mouse, electric blanket, plastics and digital monitors.

SC is mainly engaged in manufacturing and selling remote controller and conducting resin.

Mr. Xie Zhehong is legal representative, chairman and general manager of SC at present.

SC is known to have approx. 250 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 Shenzhen. Our checks reveal that SC rents the total premise about 8,000 square meters.

http://www.fenito.com.cn/ The design is professional and the content is well organized. At present it is in both Chinese and English versions.

Email: fenito@163.com

Changes of its registered information:

Date of change	Item	Before the change	After the change
2007-11-30	Shareholder	Vic Industrial Products Limited	The present one
	Registration No.	316019	Present one

SC’s quality system meets the international standards of ISO 9001, EMC certification, and FCC certification, etc.

MAIN SHAREHOLDERS:

Name % of Shareholding

Fenito Electronics (HK) Limited 100

CR No.: 1156149

Date of Incorporation: 6-August-2007

Company Status: Private

Active Status: Live

l Legal representative, Chairman and General manager:

Mr. Xie Zhehong, with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative, chairman and general manager.

l Vice general manager:

Mr. Li Tiejun, with university education. He is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as vice general manager.

SC is mainly engaged in manufacturing and selling remote controllers and conducting resin.

SC’s products mainly include common remote control, universal remote control, LCD remote control, air-condition remote control, and etc.

SC sources its materials 98% from domestic market, and 2% from overseas market. SC sells 10% of its products in domestic market, and 90% to overseas market, mainly India and Hong Kong.

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, L/C and Credit of 30-60 days.

Note: SC declined to release its major suppliers and clients.

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 Bank Baoan Sub-branch

AC#: 3370600100100043369

Relationship: Normal

Balance Sheet

Unit: CNY’000

	as of Dec. 31, 2009	as of Dec. 31, 2010
Cash & bank	860	1,560
Inventory	1,650	140
Accounts receivable	9,370	5,520
Advances to suppliers	100	130
Other receivables	170	180
Other current assets	210	800
	------------------	------------------
Current assets	12,360	8,330
Fixed assets net value	1,760	2,020
Projects under construction	0	0
Long term investment	0	0
Other assets	0	10
	------------------	------------------
Total assets	14,120	10,360
	=============	=============
Short loans	0	0
Accounts payable	13,150	8,760
Other payable	-90	210
Taxes payable	-110	-50
Accrued payroll	720	740
Other current liabilities	0	0
	------------------	------------------
Current liabilities	13,670	9,660
Long term liabilities	0	0
	------------------	------------------
Total liabilities	13,670	9,660
Equities	450	700
	------------------	------------------
Total liabilities & equities	14,120	10,360
	=============	=============

Income Statement

Unit: CNY’000

	as of Dec. 31, 2009	as of Dec. 31, 2010
Turnover	21,660	26,540
Cost of goods sold	20,970	24,070
Sales expense	200	490
Management expense	800	1,500
Finance expense	70	190
Profit before tax	-400	230
Less: profit tax	0	20
Profits	-400	210

Important Ratios

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

	as of Dec. 31, 2009	as of Dec. 31, 2010
*Current ratio	0.90	0.86
*Quick ratio	0.78	0.85
*Liabilities to assets	0.97	0.93
*Net profit margin (%)	-1.85	0.79
*Return on total assets (%)	-2.83	2.03
*Inventory /Turnover ×365	28 days	2 days
*Acconts receivable/Turnover ×365	158 days	76 days
*Turnover/Total assets	1.53	2.56
* Cost of goods sold/Turnover	0.97	0.91

PROFITABILITY: AVERAGE

l The turnover of SC appears average in its line and it increased in 2010.

l SC’s net profit margin is fair in 2009 and average in 2010.

l SC’s return on total assets is fair in 2009 and average in 2010.

l SC’s cost of goods sold is fairly high in 2010, comparing with its turnover.

LIQUIDITY: FAIR

l The current ratio of SC is maintained in a fair level.

l SC’s quick ratio is maintained in a fair level in 2009 and in a normal level in 2010.

l The inventory of SC is maintained in an average level.

l The accounts receivable of SC appears large.

l SC has no short-term loan in both years.

l SC’s turnover is in an average level, comparing with the size of its total assets.

LEVERAGE: FAIR

l The debt ratio of SC is high.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly stable.

SC is considered medium-sized in its line with fairly stable financial conditions. The large amount of accounts receivable could be a threat to SC’s financial condition. A credit line up to USD 3,000 appears to be within SC’s capacities upon a periodical review basis.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.58
UK Pound	1	Rs.82.97
Euro	1	Rs.69.89

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	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
----	NB	New Business	----

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.