MIRA INFORM REPORT

Report Date :

01.10.2011

IDENTIFICATION DETAILS

Name :	IDEA ELECTRONIC TECHNOLOGY CO., LTD.

Registered Office :	Room 503, No. 26 Guanri Road, Software Park, Xiamen City, Fujian Province 361009 Pr

Country :	China

Financials (as on) :	31.12.2010

Date of Incorporation :	22.10.2007

Com. Reg. No.:	350203200023202

Legal Form :	Limited Liabilities Company

Line of Business :	manufacturing and Selling Electronic Test Equipment.

RATING & COMMENTS

MIRA’s Rating :

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

Status :	Small Company
Payment Behaviour :	Usually Correct
Litigation :	----

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

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

Company name & address

idea electronic technology co., ltd.

room 503, no. 26 guanri road, software park, xiamen city

fujian province 361009 PR CHINA

TEL: 86 (0) 592-5762006/6301913/15805935730

FAX: 86 (0) 592-6301919

EXECUTIVE SUMMARY

Date of Registration : october 22, 2007

REGISTRATION NO. : 350203200023202

LEGAL FORM : Limited liabilities company

CHIEF EXECUTIVE : chen jindang (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : cny 10,000,000

staff : 40

BUSINESS CATEGORY : manufacturing

Revenue : CNY 2,857,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 210,000 (AS OF DEC. 31, 2010)

WEBSITE : www.idea-ndt.com

E-MAIL : mycrs@idea-ndt.com

PAYMENT : AVERAGE

MARKET CONDITION : fair

FINANCIAL CONDITION : FAIR

OPERATIONAL TREND : DOWNWARD

GENERAL REPUTATION : fair

EXCHANGE RATE : CNY 6.39 = USD 1

Adopted abbreviations

(as follows)

SC - Subject Company (the company inquired by you)

N/A – Not available

CNY – China Yuan Ren Min Bi

OPERATIONAL TREND & GENERAL REPUTATION

This section aims at indicating the relative positions of SC in respect of its operational trend & general reputation

Operational Trend:- General Reputation:-

Upward Excellent

Steady Good

Fairly Steady Fairly Good

Ordinary Average

Fair Fair

Stagnant Detrimental

Downward Not known

Not known Not yet be determined

Not yet be determined

LEGAL STATUS & HISTORY

SC was established as a limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 350203200023202 on October 22, 2007.

SC’s Organization Code Certificate No.: 66473070-0

SC’s registered capital: cny 10,000,000

SC’s paid-in capital: cny 10,000,000

Registration Change Record:

Date	Change of Contents	Before the change	After the change
2011	Legal Representative	Chen Suqin	Chen Jindang
2011	Registered Capital	CNY 1,000,000	cny 10,000,000

Current Co search indicates SC’s shareholders & chief executives are as follows:-

Name of Shareholder (s)	% of Shareholding
Chen Jindang	40
Wang Wenxiang	20
Chen Jingui	30
Chen Suqin	10

SC’s Chief Executives:-

Position	Name
Legal Representative, Chairman, and General Manager	Chen Jindang

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Chen Jindang 40

Wang Wenxiang 20

Chen Jingui 30

Chen Suqin 10

MANAGEMENT

Chen Jindang, Legal Representative, Chairman and General Manager

------------------------------------------------------------------------------------------------------

Ø Gender: M

Ø Qualification: University

Ø Working experience (s):

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

Also working in Xiamen Youruike Electronic Technology Co., Ltd. as legal representative

Ye Changlong, Sales Manager

---------------------------------------------------

Ø Gender: M

Ø Mobile: 86 (0) 13606064016

***Note: The given contact person Ms. Jill Yue is working in overseas marketing department of SC at present.

BUSINESS OPERATION

SC’s registered business scope includes R&D, manufacturing and selling electronic products, importing and exporting various kinds of commodities and technology, excluding the goods forbidden by the government.

SC is mainly engaged in manufacturing and selling electronic test equipment.

Brand:

SC’s products mainly include:

Control cabinet

Automatic Eddy Current Testing Instrument

Metal parts automatic testing system

SC sources its materials 100% from domestic market. SC sells 65% of its products in domestic market, and 35% to overseas market, mainly Middle East, Africa, and Southeast Asia.

The buying terms of SC include T/T and Credit of 30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.

*Major Customers:

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

Sichuan Anji Precision Pipe Co., Ltd.

Shandong Jinshenglong Machinery Co., Ltd.

Zhejiang Zhengnan Pipe Manufacturing Co., Ltd.

Staff & Office:

--------------------------

SC is known to have approx. 40 staff at present.

SC rents an area as its operating office, and it has a factory, but the detailed information is unknown.

SC has a technical support center, as follows,

------------------------------------------------------

Technical Support Center

Contact Mr Bill Chen 0086-15805922218

TEL0086-592-5818993

Address: Room 513, Pioneer Park Building, Torch Hi-tech Zone, Xiamen, China 361008

E-Mail: bill.chen@idea-ndt.com

RELATED COMPANY

l Xiamen Youruike Electronic Technology Co., Ltd.

----------------------------------------------------------------

Date of Registration: August 11, 2009

Registration No.: 350298200009705

Legal Form: Limited Liabilities Company

Chief Executive: Chen Jindang

Registered Capital: CNY 1,000,000

PAYMENT

Overall payment appraisal:

( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.

BANKING

The bank information of SC is not filed in SAIC.

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2009	As of Dec. 31, 2010
Cash	659	355
Accounts receivable	0	0
Advances to suppliers	81	266
Other receivable	1,243	1,506
Inventory	21	409
Non-current assets within one year	0	0
Other current assets	0	63
	------------------	------------------
Current assets	2,004	2,599
Fixed assets	249	454
Construction in progress	0	0
Intangible assets	0	0
Deferred income tax assets	0	0
Other non-current assets	0	0
	------------------	------------------
Total assets	2,253	3,053
	=============	=============
Short-term loans	0	0
Accounts payable	0	0
Wages payable	26	-10
Taxes payable	11	-10
Advances from clients	1,240	2,525
Other payable	-17	338
Other current liabilities	2	0
	------------------	------------------
Current liabilities	1,262	2,843
Non-current liabilities	0	0
	------------------	------------------
Total liabilities	1,262	2,843
Equities	991	210
	------------------	------------------
Total liabilities & equities	2,253	3,053
	=============	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2009	As of Dec. 31, 2010
Revenue	1,079	2,857
Cost of sales	309	949
Sales expense	31	191
Management expense	957	2,521
Finance expense	1	1
Profit before tax	-6	-780
Less: profit tax	0	0
Profits	-6	-780

Important Ratios

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

	As of Dec. 31, 2009	As of Dec. 31, 2010
*Current ratio	1.59	0.91
*Quick ratio	1.57	0.77
*Liabilities to assets	0.56	0.93
*Net profit margin (%)	-0.56	-27.30
*Return on total assets (%)	-0.27	-25.55
*Inventory / Revenue ×365	8 days	53 days
*Accounts receivable/ Revenue ×365	--	--
* Revenue/Total assets	0.48	0.94
* Cost of sales / Revenue	0.29	0.33

FINANCIAL COMMENTS

PROFITABILITY: POOR

l The revenue of SC appears fair in both years.

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

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

l SC’s cost of goods sold is low, comparing with its revenue.

LIQUIDITY: FAIR

l The current ratio of SC is maintained in a fair level in 2010.

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

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

l SC has no accounts receivable in both years.

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

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

LEVERAGE: FAIR

l The debt ratio of SC is high in 2010.

l The risk for SC to go bankrupt is above average.

Overall financial condition of the SC: Fair.

CONCLUSIONS

SC is considered small-sized in its line with fair financial conditions. A credit line up to USD 1,000 would appear to be within SC’s capacities.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.48.93
UK Pound	1	Rs.76.52
Euro	1	Rs.66.65

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.