MIRA INFORM REPORT

Report Date :

24.03.2011

IDENTIFICATION DETAILS

Name :	W R DAVIS ENGINEERING LTD
Registered Office :	1260 Old Innes Road Suite 606 Ottawa, ON K1B 3V3
Country :	Canada
Date of Incorporation :	01.06.1988
Com. Reg. No.:	ON-0000779055
Legal Form :	Limited Company
Line of Business :	Manufacturer of Infra Red Sensors

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	500,000 USD
Status :	Satisfactory
Payment Behaviour :	Regular
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 – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
Canada	A1	A1

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

GEOPOLITICS

POLITICAL DATA

ECONOMIC DATA

Form of Government	Federal
Economic Risk	Nil

Currency	100CAD = 75.78USD
Branch Situation	Stable

IDENTIFICATION

Company Name:
Trade Name:

W R Davis Engineering Ltd

Legal Address

1260 Old Innes Road Suite 606 Ottawa, ON K1B 3V3 Canada

PHONE:	+1 613-748-5500
Fax:	+1 613-748-3972
Email:	info@wrdavis.com
Website	www.wrdavis.com
MANAGERS	Willard Roland Davis, President
Staff	145

Registration Number:	ON-0000779055
Legal Form	Limited Company
Registered in:	Ontario
Date Created:	-
Date Incorporated:	June 1, 1988
Stock	N.A
Value	N.A

Activity:

Manufacturer of Infra Red Sensors

BANKS

Name of the Bank	HSBC Bank Canada
Location	Ottawa, ON

BUSINESS

Activity:

W R Davis Engineering Ltd provides mechanical and electrical engineering consulting services within the following fields of expertise:

- Mechanical design;
- Structural design and analysis (ANSYS);
- Aerothermal design and analysis (FLUENT);
- Structural and aerothermal testing of mechanical systems;
- Control systems design;
- Real-time software development;
- Simulation software development; and
- Digital and analog board level electronics design.

It is a high technology defense company which specializes in infrared (IR) and underwater extra low frequency electromagnetic (ELFE) signature management.
The subject company designs and manufactures IR Signature Suppressors (IRSS) for both naval ships and aircraft, and supply Active Shaft Grounding (ASG) systems for eliminating the ELFE signature of surface ships and submarines. Its expertise in the modeling and measurement of IR and ELFE signature allows it to manage the total platform signature from initial concept through to the finished product.

Location :

At the above address we can find the operative location of the subject company.

It is single located.

SHAREHOLDERS - MANAGERS - RELATED COMPANIES

SHAREHOLDERS Parent Company(ies):

The subject company is privately held.

Mr. Willard Roland Davis is one of the main owners.

Management:

- Mr. Willard Roland Davis

- Mr. Harry Keays

- Mr. Thomas Davis

RELATED COMPANIES:

As far as we know W R Davis Engineering Limited doesn't have any related companies.

FINANCIALS - COMMERCIAL TRENDS AND FORECAST

As a private company, the subject does not publish any financial statements.

However, our financial sources could provide us with the following figures:

Currency	DATE
CAD	2008
Turnover	24,300,000
Operating Income	84,000
Net Income	63,000
Total Equity	1,500,000
Liabilities	300,000

0 Suits .

0 Judgments

0 Liens

0 Collection Claims Reported

0 NSF Cheques Reported

1 PPSA Filing in 2008 by Porsche Financial Services Canada securing Goods, Chattels. Amount: $101,000
1 PPSA Filing in 2008 by HSBC Bank Canada securing Book Debts. Amount: NA
1 PPSA Filing in 2008 by VW Credit Canada Inc securing Equipment. Amount: $100,000
All previous PPSA filings have been cleared.

RATING

Local credit bureau gave a credit rate.

The company is in Good Standing. This means that all local and federal taxes were paid on due date.

Payments are: made on a 45 days basis - monitored over the last 12 months.

The cash flow is correct.

Our final opinion:

The company has been in operations for 21 years.
It has 145 employees, for this reason it is considered as a medium sized company.
It is well established in its market and up to date no adverse record has been found.

Therefore a credit line may be considered.

SUMMARY

FINANCIAL SUMMARY		DEBT COLLECTIONS AND PAYMENTS
Profitability	CORRECT	Public	YES
Indebtedness	CONTROLLED	Payments	REGULAR
Cash	CORRECT

ADVISED CREDIT

500,000 USD

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.96
UK Pound	1	Rs.73.56
Euro	1	Rs.63.68

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%)

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