MIRA INFORM REPORT

Report Date :

18.08.2012

IDENTIFICATION DETAILS

Name :	CVC TECHNOLOGIES, INC. (CHINA)
Registered Office :	1# Building, Lane 1343, Tongpu Road, Putuo District, Shanghai, 200062, Pr
Country :	China
Financials (as on) :	31.12.2011
Date of Incorporation :	26.09.2000
Com. Reg. No.:	310000400247545
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Selling brander, filling machines, bottle cap-making machines and label printing machines.
No. of Employees :	2

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
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, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
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

CVC TECHNOLOGIES, INC. (CHINA)

1# BUILDING, LANE 1343, TONGPU ROAD,

PUTUO DISTRICT, SHANGHAI, 200062, PR CHINA

TEL: 86 (0) 21-52703030 FAX: 86 (0) 21-52696019

EXECUTIVE SUMMARY

INCORPORATION DATE : SEP. 26, 2000

REGISTRATION NO. : 310000400247545

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : MR. CHEN WENJI (CHAIRMAN)

STAFF STRENGTH : 2

REGISTERED CAPITAL : USD 1,000,000

BUSINESS LINE : TRADE

TURNOVER : CNY 550,000 (AS OF DEC. 31, 2011)

EQUITIES : CNY 930,000 (AS OF DEC. 31, 2011)

PAYMENT : AVERAGE

MARKET CONDITION : FAIR

FINANCIAL CONDITION : FAIR

OPERATIONAL TREND : FAIR

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.36=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 (The official body of issuing and renewing business license) on Sep. 26, 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 manufacturing and processing brander, filling machines, bottle cap-making machines and label printing machines, selling self-made products, importing and exporting the same products, providing related technology consulting and after-sale services (in accordance with the license).

SC is mainly engaged in selling branders, filling machines, bottle cap-making and label-printing machines.

Mr. Chen Wenji is legal representative, chairman and general manager of SC at present.

SC is known to have approx. 2 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in Shanghai. Detailed information of the premise is unknown.

http://www.cvctechnologies.com The website belongs to CVC Technologies, Inc. and it includes the information of SC and its related companies. The design is professional and the content is well organized. At present it is in English version.

Changes of its registered information are as follows:

Date	Item	Before changed	After changed
2004-4	Company name	Shanghai Shikai Machinery Co., Ltd.	Present one
2005-5	Registered capital	USD 350,000	Present amount
2009-3	Registration no.	027620	Present one
	Legal rep.	Yang Shenghui	Zhou Xiaoyuan
Unspecified	Legal rep.	Zhou Xiaoyuan	Present one
	Shareholder	CVC Technologies Inc. (U.S.A.)	Present one

SC formerly had manufacturing business, but it focuses on selling its inventory at present. SC’s accountant released that SC is planning to apply for registration cancellation and transfer its business to another company-Huangjiang (Shanghai) Packaging Technology Co., Ltd.

MAIN SHAREHOLDERS:

Name % of shareholdings

Shar-Ha Co., Ltd. 100

l Legal Representative, Chairman and General Manager:

Mr. Chen Wenji , born in 1940, with university education, he is currently responsible for the overall management of SC.

Working Experience(s):

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

SC’s accountant released that SC is planning to apply for registration cancellation and transfer its business to another company-Huangjiang (Shanghai) Packaging Technology Co., Ltd. .

SC is mainly engaged in selling brander, filling machines, bottle cap-making machines and label printing machines.

SC’s products mainly include: auto-labeler machines, bottle cap-making machines, label printing machines, etc.

SC sells 100% of its products in domestic market.

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

Note: SC’s employee refused to release its major customers.

Huangjiang (Shanghai) Packaging Technology Co., Ltd.

According to the website: http://www.cvctechnologies.com

CVC Technologies, Inc.

10861 Business Drive, Fontana, CA 92337

Phone: +1 (909) 355-0311

Fax: +1 (909) 355-0411

CVC Technologies, Inc. (Taiwan)

Asia-Pacific Headquarters

No. 190, Gongye 9th Rd., Dali Dist, Taichung City, Taiwan

Phone: +886 (4) 3705-6666 (Rep.)

Fax: +886 (4) 3705-6688

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 Shanghai Branch Hongqiao Sub-branch

AC#：022427-1001242709200000871

Relationship: Normal

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2010	As of Dec. 31, 2011
Cash & bank	480	250
Inventory	810	1,310
Accounts receivable	6,240	4,820
Advances to suppliers	50	50
Other Accounts receivable	3,600	4,660
Other current assets	0	0
	------------------	------------------
Current assets	11,180	11,090
Fixed assets net value	350	200
Projects under construction	0	0
Long term investment	0	0
Other assets	0	0
	------------------	------------------
Total assets	11,530	11,290
	=============	=============
Short loans	0	0
Accounts payable	8,730	8,880
Advances from clients	490	760
Accrued payroll	0	100
Taxes payable	-10	-120
Other Accounts payable	570	740
Other current liabilities	0	0
	------------------	------------------
Current liabilities	9,780	10,360
Long term liabilities	0	0
	------------------	------------------
Total liabilities	9,780	10,360
Equities	1,750	930
	------------------	------------------
Total liabilities & equities	11,530	11,290
	=============	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2010	As of Dec. 31, 2011
Turnover	1,930	550
Cost of goods sold	280	340
Sales expense	1,620	10
Management expense	1,350	550
Finance expense	-270	470
Non-operating income	10	0
Profit before tax	-1,040	-820
Less: profit tax	0	0
Profits	-1,040	-820

Note: The auditor’s name is not available.

Important Ratios

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

	As of Dec. 31, 2010	As of Dec. 31, 2011
*Current ratio	1.14	1.07
*Quick ratio	1.06	0.94
*Liabilities to assets	0.85	0.92
*Net profit margin (%)	-53.89	-149.09
*Return on total assets (%)	-9.02	-7.26
*Inventory /Turnover ×365	154 days	870 days
*Accounts receivable/Turnover ×365	1,181 days	3,199 days
*Turnover/Total assets	0.17	0.05
* Cost of goods sold/Turnover	0.15	0.62

PROFITABILITY: FAIR

l The turnover of SC appears average in its line in 2010, but fair in 2011.

l SC’s net profit margin appears poor in both years.

l SC’s return on total assets appears fair in both years.

l SC’s cost of goods sold is low 2010 but average in 2011, comparing with its turnover.

LIQUIDITY: AVERAGE

l The current ratio of SC is maintained in a normal level in both years.

l SC’s quick ratio is maintained in a normal level in both years.

l The inventory of SC appears average.

l The accounts receivable of SC appears large in both years.

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

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

LEVERAGE: FAIR

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

l The risk for SC to go bankrupt is high.

Overall financial condition of the SC: Fair

SC is considered small-sized in its line with fair financial conditions. The large amount of accounts receivable could be a threat to SC’s financial condition. SC’s accountant released that SC is planning to apply for cancellation of its business registration license.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.70
UK Pound	1	Rs.87.54
Euro	1	Rs.68.85

INFORMATION DETAILS

Report Prepared by :

PRL

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.