MIRA INFORM REPORT

Report Date :

15.12.2011

IDENTIFICATION DETAILS

Name :	SHENZHEN SAM ELECTRONIC EQUIPMENT CO., LTD
Registered Office :	F Zone, 3F, Building E, Yicheng Industry Park, Tiegang Village, Xixiang Town, Baoan District, Shenzhen City, Guangdong Province 518102
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	21.07.2005
Com. Reg. No.:	440306104153586
Legal Form :	Limited Liabilities Company
Line of Business :	Manufacture and Sales af Electronic Equipments
No. of Employees :	50

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 :	80,000.00 Chinese Yuan
Status :	Moderate
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, 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 and address

SHENZHEN SAM ELECTRONIC EQUIPMENT CO., LTD

F Zone, 3F, Building E, Yicheng Industry Park, Tiegang Village, Xixiang Town, Baoan District, Shenzhen City, Guangdong Province 518102

Tel : 86 755 33818621

Fax: 86 755 33868596

E-mail: --

Website: www.china-sam.com

Currency in this report is Chinese Yuan unless otherwise stated.

Exchange Rate: 1 USD=6.36 Chinese Yuan

"--"in this report indicates "unavailable" due to insufficient information or "no comments"

Notes:

The telephone No. given in the order (86 755 29190585) was not answered during our investigation. According to subject’s staff, the No. doesn’t belong to the subject company.

EXECUTIVE SUMMARY

DATE OF establishment	JULY.21^ST, 2005
Aic Registration No.	440306104153586
REGISTERED LEGAL FORM	limited liabilities company
REGISTERED CAPITAL	1,000,000.00
main BUSINESS	manufacture and sales of electronic equipments
SIC Code (China)	3662 manufacture of electronic industry equipments
employees	50
import and export permits	yes
business scale	Small
operation trend	Average
TURNOVER	5,704,000.00 (As of Dec.31^st, 2010)
net profit	286,000.00 (As of Dec.31^st, 2010)
total assets	2,141,000.00 (As of Dec.31^st, 2010)
net worth	886,000.00 (As of Dec.31^st, 2010)
credit rating	CR4
base Credie limit	80,000.00
EXCHANGE RATE	1 Usd=6.36CNY (dec.14^th, 2011)

REGISTRATION

Name	SHENZHEN SAM ELECTRONIC EQUIPMENT CO., LTD
AIC Registration Number	440306104153586
Registered address	No.3, F Zone, 3F, Building E, Yicheng Industry Park, Tiegang Village, Xixiang Town, Baoan District, Shenzhen City
Operation address	F Zone, 3F, Building E, Yicheng Industry Park, Tiegang Village, Xixiang Town, Baoan District, Shenzhen City
Date of Establishment	Jul.21^st, 2005
Registry	Administration Bureau of Industry and Commerce – Shenzhen
Legal Representative	Fang Min (方敏)
Registered Legal Form	limited liabilities company
Registered Capital	1,000,000.00
Operating Duration	From July.21^st, 2005 to July.21^st, 2025
Changes in Registration	1. July.15^th, 2009 Subject’s registered address was changed to the current registered address from Room 802, Du Shi Cui Hai, No.21 Zone, Baoan District, Shenzhen. 2. July.15^th, 2009 Subject company's Registration No. was changed from 4403012183187 to 440306104153586. 3. July.4^th, 2011 Subject’s registered capital was increased from 500,000 CNY to 1,000,000 CNY.

Limited liabilities co.

This form of business in PR China is defined as a legal person. Its registered capital is contributed jointly by at least two shareholders and no more than fifty. Shareholders bear limited liability to the extent of shareholding, and the co. is liable for its debts only to extent of its total assets. The characteristics of this form of co. are as follows:

Upon the establishment of the co., an investment certificate is issued to the each of shareholders.

The board of directors is comprised of three to thirteen members.

The minimum registered capital for a co. is listed as follows:

-manufacturing co. : RMB 500,000.00

-trading &wholesaling co. : RMB 500,000.00

-retailing co. : RMB 300,000.00

-consultancy & service co. : RMB 100,000.00

Shareholders may take their capital contributions in cash or by means of tangible assets or intangible assets such as industrial property and non-patented technology.

Cash contributed by all shareholders must account for at least 50% of the registered capital while contribution by intangible assets must not exceed 20% of the registered capital.

Existing shareholders have pre-exemption right to purchase shares of the co. offered for sale by the other shareholders and to subscribe for the newly increased registered capital of the co.

REGISTRATION INFO: AVAILABLE

FINANCIAL REPORTS: AVAILABLE

SHAREHOLDERS AND SHARES

As indicated in the following table:

Shareholder	Capital Subscribed	Percentage
Dong Hui	500,000.00	50%
Fang Min	500,000.00	50%
Total	1,000,000.00	100%

Shareholder	Way of Investment	Paid-up Percentage
Dong Hui	-	100%
Fang Min	-	100%

AFFILIATE(S)

No affiliate of subject is found after checking.

MANAGEMENT

Name	Fang Min
Title	Executive director; General manager
Name	Dong Hui
Title	Supervisor

BANKERS INFORMATION

Bank name	Industrial and Commercial Bank of China – Baoan Sub-branch (Shenzhen)
Account No. (CNY)	4000021419200460653
Source of information	Public channels

OFFICE FACILITIES

Geographic Location	F Zone, 3F, Building E, Yicheng Industry Park, Tiegang Village, Xixiang Town, Baoan District, Shenzhen City
Area	2,000 square meters
Environment and traffic	Average
Property Ownership	Rented

TRADEMARKS

Total trademarks	1
Registration No.	6889371
Registration date	Aug.11^th, 2008
Image

PATENTS

After checking with the State Intellectual Office, no patents of SC were found.

MAIN PRODUCTS & SERVICES

Main business	Manufacture and sales of electronic equipments
Products and services	Subject’s main products include SMT peripheral equipments (separator series, component counter, taping machine), SMD packing materials and SMD sealing equipments etc.
Annual production capacity	--
Certificates	ISO 9000; ISO 9001

SALES INFORMATION

Local sales	90%
Regions	All over China
Major domestic clients	TCL Corporation; HUAWEI TECHNOLOGIES CO.,LTD; SANMINA-SCI (SHENZHEN) LTD; FOXCONN PRECISION COMPONENT (SHENZHEN) CO., LTD
Payment terms	Prompt payment; on credit
Export	10%
Regions	Europe, America, Singapore, Malaysia etc.
Major overseas clients	EPIQ Systems, Inc.
Payment terms	L/C, T/T
SC’s products are mostly purchased within China. Its clients are mainly large electronics enterprises.
The above information was confirmed by SC’s employee on Dec.12^th, 2011.

PURCHASE INFORMATION

Main Commodities Purchased	Motor etc.
Region	Local: 80% Import: 20%
Number of Major Suppliers	More than 5
Major suppliers	KASUGA CO. LTD; OMEGA Engineering Inc. etc.
Main Terms of Payment	Local: Prompt payment; on credit Import: L/C, T/T
Some of subject’s components are manufactured itself; some are purchased through other agents. With small scale, its purchasing volume is not large.
The above information was confirmed by SC’s employee on Dec.12^th, 2011.

CREDIT

Subject’s staff was cautious about its purchasing information and refused to disclose the supplier name. Hence no payment comment from the supplier can be provided in this report.

LITIGATION RECORDS

After checking with China Court organization, the local court website and other major searching websites, no litigation record related to subject company in the latest three years is found.

FINANCE

Balance Sheet (Unit: 1,000 Chinese Yuan):

	Dec. 31^st, 2009	Dec. 31^st, 2010
Current assets
Money capital	172	930
Short-term investment
Notes receivable
Net ball of Account Receivable	-376	398
Payment in advance
Subsidy Receivable
Other Account Receivable	760	16
Inventory	16	596
Expenses to be deferred
Other current assets
Export rebates receivable
Total current Assets	572	1,940
Long-term investment
Long-term investment
Original value of fixed assets
Accumulated depreciation
Net fixed assets	59	201
Fixed assets depreciation reserve
Net Value of Fixed Assets	59	201
Fixed assets in liquidation
Projects being constructed
Fixed assets losses in suspense
Total fixed assets	59	201
Intangible assets and deferred assets
Intangible assets
Deferred assets
Total intangible and deferred assets	-
Other long-term assets
Other long-term assets
Total assets	631	2,141
Current liabilities
Short-term loans
Notes payable
Account payable	19	1,050
Deposit received
Other accounts payable		170
Wages payable
Welfare payable
Tax unpaid	13	35
Unpaid profit
Accrued expenses
L/T debt due in 1 year
Other current liabilities
Total current liabilities	32	1,255
L/T liabilities
L/T loans
Bonds payable
L/T account payable
Total L/T liabilities	0	0
Deferred tax
Deferred tax
Total liabilities	32	1,255
Owner’s interest
Paid-up capital	500	500
Contributed surplus
Surplus reserves
Unconfirmed investment loss
Undistributed profits	99	386
Minority interest
Total owner’s interest	599	886
Liabilities and owner’s interest	631	2,141

Income Statement (Unit: 1,000 Chinese Yuan):

	Dec. 31^st, 2009	Dec. 31^st, 2010
Main business income	1,959	5,704
Main business cost	1,236	4,798
Tax and associate charge	3	7
Main business profit	720	899
Other business profit
Asset depreciation	472	392
Operation expenses	113	146
- management expenses
Financial expenses	135	361
Operation profit
Investment profit
Subsidy income
Non business income
-Non business expenses
Prior year income adjustment	135	361
Total profit	24	75
-Income tax
Net profit	111	286

Important Ratios:

	2009	2010
Return on net assets (%)	18.53	32.28
Return on total assets (%)	17.59	13.36
Net profit margin (%)	5.67	5.01
Turnover of total assets	3.10	2.66
Turnover of current assets	3.42	2.94
Turnover of account receivable	-5.21	14.33
Inventory turnover	77.25	8.05
Asset liability ratio (%)	5.07	58.62
Current ratio	17.88	1.55
Quick ratio	17.38	1.07

Major Financial Information (Unit: 1,000 Chinese Yuan):

	2009	2010
Main business income	1,959	5,704
Total profit	135	361
Net profit	111	286
Total assets	631	2,141
Total liabilities	32	1,255
Total owner’s interest	599	886
Source from	government	government
Whether audited or not	Yes	Yes

Analysis of financial indicator

Long-term solvency: average

Short-term solvency: average

Asset security: average

Inventory status: below average

Capital turnover: acceptable

Debt recovery status: good

Profitability: good

Return on assets (ROA): good

Enterprise background: average

Payment records: --

BASE CREDIT LIMIT

80,000.00 Chinese Yuan

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.