MIRA INFORM REPORT

Report Date :

08.02.2012

IDENTIFICATION DETAILS

Correct Name :	ACCURPRESS (SUZHOU) MACHINERY CO., LTD.
Registered Office :	No. 1 Aike Road, Shaxi Industrial Development Zone, Taicang, Suzhou, Jiangsu Province, 215421 Pr
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	23.07.2003
Com. Reg. No.:	320585400007088
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	manufacturing and selling various kinds of CNC machine tools
No. of Employees :	150

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 :	USD 400,000
Status :	Satisfactory
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 – September 30^th, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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

ACCURPRESS (SUZHOU) MACHINERY Co., Ltd.

NO. 1 AIKE ROAD, SHAXI INDUSTRIAL DEVELOPMENT ZONE, TAICANG,

SUZHOU, JIANGSU PROVINCE, 215421 PR CHINA.

TEL: 86 (0) 512-53221098/53223930 FAX: 86 (0) 512-53221099

EXECUTIVE SUMMARY

INCORPORATION DATE : JULY 23, 2003

REGISTRATION NO. : 320585400007088

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED enterprise

CHIEF EXECUTIVE : MR. Tim Hilton (CHAIRMAN)

STAFF STRENGTH : 150

REGISTERED CAPITAL : USD 5,000,000

BUSINESS LINE : MANUFACTURING

TURNOVER : CNY 113,900,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 56,510,000 (AS OF DEC. 31, 2010)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 400,000 (PERIODICAL REVIEW)

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.29 = 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 Renminbi

Note: SC’s correct name should be the heading one, instead of the given one Accupress (Suzhou) Machinery Co., Ltd.

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 July 23, 2003.

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 researching, developing and manufacturing above nine-axe simultaneous CNC machine tools (shearing machine tools, bending machine tools, cutting tools, etc) and related products; selling self-made products and supplying after-sales services.

SC is mainly engaged in manufacturing and selling various kinds of CNC machine tools.

Mr. Tim Hilton has been legal representative and chairman of SC since 2003.

SC is known to have approx. 150 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial development zone of Taicang. Our checks reveal that SC owns the total premise about 30,000 square meters.

http://www.accurpress-china.com/index.asp The design is professional and the content is well organized. At present it is in Chinese and English versions.

No significant events or changes were found during our checks with the local Administration for Industry and Commerce.

MAIN SHAREHOLDERS:

Name % of Shareholding

Canada Jilumu Corporation (in Chinese Pinyin) 100

l Legal representative and chairman:

Mr. Tim Hilton, Canadian, Certificate#: VH800781. He is currently responsible for the overall management of SC.

Working Experience(s):

From 2003 to present Working in SC as chairman and legal representative

l Vice chairman and general manager:

Mr. Zhou Xingfa, Chinese-Canadian, born in 1964, Certificate#: VK227755. He is currently responsible for the daily management of SC.

Working Experience(s):

From 2003 to present Working in SC as vice chairman and general manager

SC is mainly engaged in manufacturing and selling various kinds of CNC machine tools.

Main Products: CNC press brakes, CNC shears, etc.

SC sources its materials 95% from domestic market, and 5% from overseas market. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly Canadian and Indian market.

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.

*Major Supplier:

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

Wuxi Oriental Machinery Factory

*Major Customer:

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

Baoshan Iron & Steel Co., Ltd.

SC is not known to have any subsidiary at present.

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’s suppliers declined to make any comments.

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.

Bank of China Taicang Renmin Road Sub-branch

AC# 524858197565

Relationship: Normal.

Balance Sheet

Unit: CNY’000

	as of Dec. 31, 2009	as of Dec. 31, 2010
Cash & bank	3,530	9,040
Inventory	23,610	30,540
Accounts receivable	12,700	23,140
Advances to suppliers	1,380	1,030
Other receivables	1,570	1,820
Other current assets	30	90
	------------------	------------------
Current assets	42,820	65,660
Fixed assets net value	14,440	35,210
Projects under construction	18,960	7,030
Long term investment	0	0
Intangible assets	3,960	3,880
Other assets	0	0
	------------------	------------------
Total assets	80,180	111,780
	=============	=============
Short loans	9,000	9,000
Accounts payable	11,570	17,200
Advances from customers	14,560	26,730
Salaries and welfare payable	0	0
Taxes payable	2,000	1,340
Other payable	7,740	1,000
Other current liabilities	-1,900	0
	------------------	------------------
Current liabilities	42,970	55,270
Long term liabilities	0	0
	------------------	------------------
Total liabilities	42,970	55,270
Equities	37,210	56,510
	------------------	------------------
Total liabilities & equities	80,180	111,780
	=============	=============

Income Statement

Unit: CNY’000

	as of Dec. 31, 2010
Turnover	113,900
Cost of goods sold	80,750
Taxes and additional of main operation	100
Sales expense	7,110
Management expense	8,770
Finance expense	840
Non-operating income	70
Non-operating expense	100
Profit before tax	16,300
Less: profit tax	2,200
Profits	14,100

Important Ratios

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

	as of Dec. 31, 2009	as of Dec. 31, 2010
*Current ratio	1.00	1.19
*Quick ratio	0.45	0.64
*Liabilities to assets	0.54	0.49
*Net profit margin (%)	/	12.38
*Return on total assets (%)	/	12.61
*Inventory /Turnover ×365	/	98 days
*Accounts receivable/Turnover ×365	/	74 days
*Turnover/Total assets	/	1.02
* Cost of goods sold/Turnover	/	0.71

PROFITABILITY: FAIRLY GOOD

l The turnover of SC appears fairly good in its line in 2010.

l SC’s net profit margin is fairly good in 2010.

l SC’s return on total assets is fairly good in 2010.

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

LIQUIDITY: FAIR

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

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

l The inventory of SC appears fairly large in both years.

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

l The short-term loan of SC appears average in both years.

l SC’s turnover is in an average level in 2010, comparing with the size of its total assets.

LEVERAGE: AVERAGE

l The debt ratio of SC is average.

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 inventory could be a threat to SC’s financial condition. A credit line up to USD 400,000 appears acceptable upon a periodical review basis.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.48.92
UK Pound	1	Rs.77.31
Euro	1	Rs.64.12

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.