MIRA INFORM REPORT

Report Date :

16.02.2011

IDENTIFICATION DETAILS

Correct Name :	PACIFIC SCIENCE INSTRUMENT EQUIPMENT (SHENZHEN) LTD.

Registered Office :	Room 1305 Block B1, Honglong Commercial Plaza, Xixiang Town, Baoan District, Shenzhen, Guangdong Province, 518000 Pr

Country :	China

Financials (as on) :	31.12.2008

Date of Incorporation :	07.09.2005

Com. Reg. No.:	440306104104721

Legal Form :	Limited Liabilities Company

Line of Business :	Selling Instruments

RATING & COMMENTS

MIRA’s Rating :

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

Maximum Credit Limit :	usd 5,000
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 – June 30, 2010

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

China

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

Company name & address

PACIFIC SCIENCE INSTRUMENT EQUIPMENT (SHENZHEN) LTD.

ROOM 1305 BLOCK B1, HONGLONG COMMERCIAL PLAZA, XIXIANG TOWN,

BAOAN DISTRICT, SHENZHEN, GUANGDONG PROVINCE, 518000 PR CHINA

1B1305

TEL: 86 (0) 755-89800403 FAX: 86 (0) 755-89800402

EXECUTIVE SUMMARY

INCORPORATION DATE : SEP. 7, 2005

REGISTRATION NO. : 440306104104721

REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY

CHIEF EXECUTIVE : MS. LI MIN (CHAIRMAN)

STAFF STRENGTH : 8

REGISTERED CAPITAL : CNY 1,000,000

BUSINESS LINE : trading

TURNOVER : CNY 895,000 (AS OF DEC. 31, 2008)

EQUITIES : CNY 1,002,000 (AS OF DEC. 31, 2008)

PAYMENT : average

RECOMM. CREDIT RANGE : up to usd 5,000

MARKET CONDITION : fair

FINANCIAL CONDITION : fairLY STABLE

OPERATIONAL TREND : fairly STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.59= 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 Ren Min Bi

Note: the given name Pacific Technology& Trading International Ltd. belongs to a Hong Kong registered company, and it is managed by the same management team as SC.

SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Sep. 7, 2005.

Company Status: Limited liabilities co.

This form of business in PR China is defined as a legal person. No more than fifty shareholders contribute its registered capital jointly. 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 CNY 30,000.

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 30% 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

SC’s registered business scope includes purchasing and selling instrument and daily used goods; constructing and installing purify and supervisory control engineering and researching and developing the related products; domestic commerce and goods and materials supplying and selling; importing and exporting various goods and technology.

SC is mainly engaged in selling instrument.

Ms. Li Min has been chairman of SC since 2005.

SC is known to have approx. 8 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Shenzhen. Our checks reveal that SC rents the total premise about 50 square meters.

http://www.pacificinvent.com The design is professional and the content is well organized. At present it is in Chinese version.

E-Mail: szoffice@psi17.com

Changes of SC’s registered information:

Date	Item	Before changed	After changed
Jun., 2009	Registered number	4403012188260	Present one

MAIN SHAREHOLDERS:

Name % of Shareholding

Li Min 70

Xu Xiaochun 30

l Chairman and General Manager:

Ms. Li Min, ID#: 43010319840620358X, born in 1984, with university education. She is currently responsible for the overall management of SC.

Working Experience(s):

From 2005 to present Working in SC as chairman and general manager.

SC is mainly engaged in selling instruments.

SC’s products mainly include: gas analyzer, WQL, counter, leak detector.

SC’s main brands: ATI, Lighthouse, Hiac, Merck.

SC sources its materials 10% from domestic market, and 90% from the overseas market, mainly America, European countries. 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 T/T and Credit of 30-60 days.

Pacific Technology & Trading International Ltd.-Hong Kong

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

Registered number: 1153555

Incorporated date: Jul. 27, 2007

Legal form: Private

Tel: 00852-81313707

Fax: 00852-21393217

E-Mail: hkoffice@psi17.com

Pacific Science Instrument Equipment (Shanghai) Ltd.

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

Tel: 86 21-22816586

Fax: 86 21-22816589

E-Mail: shoffice@psi17.com

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.

China Merchants Bank Tairan Sub-branch

AC# 7381877110005

Relationship: Normal.

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2007	As of Dec. 31, 2008
Cash & bank	20	18
Inventory	25	0
Accounts receivable	6	107
Advances to suppliers	286	286
Other receivables	366	594
Other current assets	0	0
	----------------	---------------
Current assets	703	1,005
Fixed assets net value	39	30
Projects under construction	0	0
Long term investment	301	301
Other assets	3	3
	-----------------	---------------
Total assets	1,046	1,339
	============	============
Short loans	0	0
Accounts payable	0	348
Advances from clients	51	-22
Taxes payable	0	0
Salaries payable	4	6
Other payable	0	0
Other current liabilities	0	5
	-----------------	-------------------
Current liabilities	55	337
Long term liabilities	0	0
	-----------------	-------------------
Total liabilities	55	337
Equities	991	1,002
	------------------	-------------------
Total liabilities & equities	1,046	1,339
	============	===========

Income Statement

Unit: CNY’000

	As of Dec. 31, 2007	As of Dec. 31, 2008
Turnover	314	895
Cost of goods sold	224	738
Sales expense	9	10
Management expense	76	128
Finance expense	0	0
Profit before tax	3	17
Less: profit tax	0	5
Profits	3	12

Note: SC has not lodged the latest annual returns in the local registry, hence no up-to-date detailed financial information could be provided.

Important Ratios

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

	2007	2008
*Current ratio	12.78	2.98
*Quick ratio	12.33	2.98
*Liabilities to assets	0.05	0.25
*Net profit margin (%)	0.96	1.34
*Return on total assets (%)	0.29	0.90
*Inventory /Turnover ×365	29 days	0
*Accounts receivable/Turnover ×365	7 days	44 days
*Turnover/Total assets	0.30	0.67
* Cost of goods sold/Turnover	0.71	0.82

PROFITABILITY: FAIR

l The turnover of SC appears fair in 2007, and it increased in 2008.

l SC’s net profit margin is average in both years.

l SC’s return on total assets is average in both years.

l SC’s cost of goods sold is average in both years, comparing with its turnover.

LIQUIDITY: AVERAGE

l The current ratio of SC is in a good level in 2007 and in a normal level in 2008.

l SC’s quick ratio is maintained in a good level in 2007 and in a normal level in 2008.

l The inventory of SC is average in 2007 and SC has no inventory in 2008.

l The accounts receivable of SC is average in both years.

l SC has no short loans in both years.

l SC’s turnover is in a fair level in both years, comparing with the size of its total assets.

LEVERAGE: AVERAGE

l The debt ratio of SC is low in both years.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly stable.

SC is considered small-sized in its line with fairly stable financial conditions. A credit line of the above stated amount appears to be beyond SC’s capacity, while a credit line up to USD 5,000 is recommended.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.50
UK Pound	1	Rs.73.07
Euro	1	Rs.61.63

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

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.