MIRA INFORM REPORT

Report Date :

07.06.2011

IDENTIFICATION DETAILS

Name :	MICA ELECTRIC MATERIAL (LUHE) CO., LTD.
Registered Office :	Hedong Development Zone, Hetian Town, Luhe County, Shanwei City, Guangdong Province 516700 Pr
Country :	China
Financials (as on) :	31.12.2009
Date of Incorporation :	06.09.2000
Com. Reg. No.:	441500400001134
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	manufacturing and Selling Mica Products.

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 500,000
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 – March 31^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
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

MICA ELECTRIC MATERIAL (LUHE) CO., LTD.

HEDONG DEVELOPMENT ZONE, HETIAN TOWN, LUHE COUNTY,

SHANWEI CITY, GUANGDONG PROVINCE 516700 PR CHINA

TEL: 86 (0) 15989484911 FAX: 86 (0) 755-23493847

EXECUTIVE SUMMARY

INCORPORATION DATE : SEP. 6, 2000

REGISTRATION NO. : 441500400001134

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : MR. WANG YAOMING (LEGAL REPRESENTATIVE)

STAFF STRENGTH : 180

REGISTERED CAPITAL : HK 62,000,000

BUSINESS LINE : MANUFACTURING

TURNOVER : CNY 79,770,000 (AS OF DEC. 31, 2009)

EQUITIES : CNY 72,319,000 (AS OF DEC. 31, 2009)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 500,000

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.48=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

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 Sep. 6, 2000.

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 production of mica plate, mica paper, glass fiber cloth, mica tape, mica paper, mica pieces, mica tube, mica, and special parts machining parts such as electrical insulation materials and silicone resins (excluding those limited by the state, with permit if needed.)

SC is mainly engaged in manufacturing and selling mica products.

Mr. Wang Yaoming has been legal representative of SC since 2008.

SC is known to have approx. 180 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the development zone of Shanwei. Our checks reveal that SC owns the total premise about 3,000 square meters.

Note: SC’s sales office is in 1/F, 6 Building, Jianda Industrial Zone, Huafan Road, Longhua Town, Bao'an District, Shenzhen City, Guangdong Province 518109 PR China

http://www.szmica.com/ The website belongs to Sme-mica, Group. The design is professional and the content is well organized. At present it is in Chinese and English versions.

Email: sales@szmica.com

Changes of its registered information:

Date of change	Item	Before the change	After the change
2007-12	Legal representative	Tang Zhanyi	Nikolai Bürgin
	Registration No.	000687	Present one
	Shareholder	(Hong Kong) Jadeson Technology Limited	Present one
2008-05	Registered capital	HK 10,000,000	HK 42,000,000
2008-10	Legal representative	Nikolai Bürgin	Wang Yaoming
	Registered capital	HK 42,000,000	Present amount

Note: SC’s paid-in capital is HK 52,943,509 (CNY 49,418,023.79).

MAIN SHAREHOLDERS:

Name % of shareholdings

Von Roll Hong Kong Holding Limited 100

CR No.: 1157200

Date of Incorporation: Aug. 9, 2007

Company Status: Private

Active Status: Live

l Legal Representative & General Manager:

Mr. Wang Yaoming, Singaporean, Passport No.: S2665355Z, he is currently responsible for the daily management of SC.

Contact No.: 15989484911

Working Experience(s):

From 2008 to present Working in SC as legal representative and general manager.

l Chairman:

Mr. Boon Gay Goh, Singaporean, Passport No.: S1815812D, he is currently responsible for the overall management of SC.

At present Working in SC as chairman

Supervisors:

Stefano Vanucci, Passport No. : G541357, Italian.

Directors:

Yang Guohui ID# 513101196303080012, Vice General Manager

Matthias Oppermann, Passport No.: 8923774666, German

Michael Gerhard Mathias, Passport No.: 8361243076, German

Eran Rosenzweig, Passport No.: G541357, Israeli

SC is mainly engaged in manufacturing and selling mica products.

SC’s products mainly include: mica papers, mica plates, mica tapes, glass fiber products, etc.

SC sources its materials 60% from domestic market, and 40% from overseas market, mainly Southeast Asia. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly Europe.

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’s management declined to release its major clients and suppliers.

According to the above stated website:

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

New Jadwson Electrical Material (Shenzhen) Co., Ltd.

Add.: 1/F, 6 Building, Jianda Industrial Zone, Huafan Road, Longhua Town, Bao'an District, Shenzhen, Guangdong Province 518109 PR China
Tel: ( 86 ) 755-28179884
Fax: ( 86 ) 755-28179417

Shenzhen Shengbida Electric Material Co., Ltd.
Add.: 1/F, 6 Building, Jiaanda Industrial Zone, Huafan Road, Longhua Town, Bao'an District, Shenzhen, Guangdong Province 518109 PR China
Tel: (86)755 2304 8164
Fax: (86)755 2304 8185

Tongcheng Mica Electric Material Co., Ltd.
Add.: Tiezhu Industrial Zone, Tongcheng County, Xianning City, Hubei Province, China
Tel: ( 86 ) 715-4331908
Fax: (86 ) 715- 4322148

Etc.

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 and Commercial Bank of China Shanwei Branch

AC#：2009002129200018062

Relationship: Normal.

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2008	As of Dec. 31, 2009
Cash & bank	1,992	4,061
Notes receivable	0	0
Accounts receivable	18,122	26,971
Advances to suppliers	861	458
Inventory	15,160	12,613
Other accounts receivable	14,403	1,987
Other current assets	0	0
Prepaid expenses	10	45
	------------------	------------------
Current assets	50,548	46,135
Fixed assets net value	12,950	38,300
Project under construction	24,701	1,806
Long term investment	0	0
Long-term prepaid expenses	0	0
Intangible and other assets	737	12,986
	------------------	------------------
Total assets	88,936	99,227
	=============	=============
Short loans	0	0
Notes payable	0	0
Accounts payable	9,283	18,828
Advances from clients	0	0
Accrued payroll	900	969
Welfare payable	0	0
Taxes payable	1,633	-390
Surcharge payable	0	0
Other accounts payable	2,524	5,788
Accrued expenses	2,432	1,713
Estimated liabilities	0	0
Long-term loans due within one year	0	0
Other current liabilities	0	0
Interest payable	0	0
	------------------	------------------
Current liabilities	16,772	26,908
Long-term liabilities	0	0
	------------------	------------------
Total liabilities	16,772	26,908
Equities	72,164	72,319
	------------------	------------------
Total liabilities & equities	88,936	99,227
	=============	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2008	As of Dec. 31, 2009
Turnover	80,296	79,770
Cost of goods sold	65,553	70,122
Other operating profit	37	55
Sales expense	3,213	2,393
Management expense	5,273	5,489
Finance expense	385	314
Non-operating income	342	197
Non-operating expense	231	412
Profit before tax	6,020	1,292
Less: profit tax	1,452	1,137
Profits	4,568	155

Important Ratios

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

	As of Dec. 31, 2008	As of Dec. 31, 2009
*Current ratio	3.01	1.71
*Quick ratio	2.11	1.25
*Liabilities to assets	0.19	0.27
*Net profit margin (%)	5.69	0.19
*Return on total assets (%)	5.14	0.16
*Inventory /Turnover ×365	69 days	58 days
*Accounts receivable/Turnover ×365	83 days	124 days
*Turnover/Total assets	0.90	0.80
* Cost of goods sold/Turnover	0.82	0.88

PROFITABILITY: AVERAGE

l The turnover of SC appears average in both 2 years.

l SC’s net profit margin appears fairly good in 2008 but average in 2009.

l SC’s return on total assets appears fairly good in 2008 but average in 2009.

l SC’s cost of goods sold is average in both 2 years.

LIQUIDITY: AVERAGE

l The current ratio of SC appears good in 2008 and normal in 2009.

l SC’s quick ratio appears fairly good in 2008 and normal in 2009.

l The inventory of SC appears average in both 2 years.

l The accounts receivable of SC appears average in 2008 but fairly large in 2009.

l SC has no short-term in both 2 years.

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

LEVERAGE: FAIRLY GOOD

l The debt ratio of SC is low in both 2 years.

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 conditions. It is considered a credit line up to USD 500,000 appears to be within SC’s capacities.

Bottom of Form

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.72
UK Pound	1	Rs.73.46
Euro	1	Rs.65.47

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.