MIRA INFORM REPORT

Report Date :

21.11.2012

IDENTIFICATION DETAILS

Name :	SHENZHEN ACTO DIGITAL VIDEO TECHNOLOGY CO., LTD.
Registered Office :	3/F Bldg. No. 7, Software Park, No. 2 Gaoxin Middle 3rd Road, Nanshan District, Shenzhen, Guangdong Province 518057 Pr
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	12.05.1998
Com. Reg. No.:	440301501129888
Legal Form :	Chinese-Foreign Equity Joint Venture Enterprise
Line of Business :	Subject is engaged in researching, developing, manufacturing and selling of projection equipment & display system equipment.
No. of Employees :	512

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

Status :	Good
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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
China	A2	A2

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

china - ECONOMIC OVERVIEW

Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role - in 2010 China became the world's largest exporter. Reforms began with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, creation of a diversified banking system, development of stock markets, rapid growth of the private sector, and opening to foreign trade and investment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors it considers important to "economic security," explicitly looking to foster globally competitive national champions. After keeping its currency tightly linked to the US dollar for years, in July 2005 China revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2010 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of the US; China is second to the US in the value of services it produces. Still, per capita income is below the world average. The Chinese government faces numerous economic challenges, including: (a) reducing its high domestic savings rate and correspondingly low domestic demand; (b) sustaining adequate job growth for tens of millions of migrants and new entrants to the work force; (c) reducing corruption and other economic crimes; and (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2011 more than 250 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development. In 2010-11, China faced high inflation resulting largely from its credit-fueled stimulus program. Some tightening measures appear to have controlled inflation, but GDP growth consequently slowed to near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. Debt overhang from the stimulus program, particularly among local governments, and a property price bubble challenge policy makers currently. The government's 12th Five-Year Plan, adopted in March 2011, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent on exports in the future. However, China has made only marginal progress toward these rebalancing goals.

Source : CIA

Company Name and Address

SHENZHEN ACTO DIGITAL VIDEO TECHNOLOGY CO., LTD.

3/F BLDG. NO. 7, SOFTWARE PARK, NO. 2 GAOXIN MIDDLE 3RD ROAD

NANSHAN DISTRICT, SHENZHEN, GUANGDONG PROVINCE 518057 PR CHINA

TEL: 86 (0) 755-86168897

FAX: 86 (0) 755-86168895

EXECUTIVE SUMMARY

Date of Registration : may 12, 1998

REGISTRATION NO. : 440301501129888

LEGAL FORM : Chinese-foreign equity joint venture enterprise

CHIEF EXECUTIVE : xie jing (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : cny 16,439,600

staff : 512

BUSINESS CATEGORY : R & D & MANUFACTURING & TRADING

Revenue : cny 854,451,000 (AS OF DEC. 31, 2010)

EQUITIES : cny 435,555,000 (AS OF DEC. 31, 2010)

WEBSITE : www.actochina.com

E-MAIL : acto_csg@actochina.com

PAYMENT : AVERAGE

MARKET CONDITION : competitive

FINANCIAL CONDITION : fairly good

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.23 = 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 on May 12, 1998. However, SC changed to present legal form, and was registered as a Chinese-foreign equity joint venture enterprise of PRC with State Administration for Industry & Commerce (SAIC) under registration No.: 440301501129888 on July 2, 2003.

SC’s Organization Code Certificate No.: 70841295-9

SC’s Tax No.: 440301708412959

SC’s registered capital: CNY 16,439,600

SC’s paid-in capital: CNY 16,439,600

Registration Change Record:-

Date	Change of Contents	Before the change	After the change
1998-08-20	Registration No.	27955009-2	4403012005623
2000-04-06	Shareholder (s) (% of Shareholding)	Wang Qiming 50% Li Kunrong 50%	Xie Daozhen 10% Wang Qiming 90%
2000-12-26	Company Name	Shenzhen Nongjian Investment Co., Ltd.	Shenzhen City Acto Digital Video Technology Co., Ltd.
	Shareholder (s)	Xie Daozhen 10% Wang Qiming 90%	Shen Zhigang 10% Xie Jing 90%
2001-03-23	Registered Capital	CNY 10,000,000	CNY 14,600,000
	Shareholder (s) (% of Shareholding)	Shen Zhigang 10% Xie Jing 90%	Shenzhen Chuangxin Technology Investment Co., Ltd. 18.29% Shen Zhigang 6.85% Xie Jing 74.86%
2003-06-13	Shareholder (s) (% of Shareholding)	Shenzhen Chuangxin Technology Investment Co., Ltd. 18.29% Shen Zhigang 6.85% Xie Jing 74.86%	Wuhan Lantai Pule Technology Co., Ltd. 25.14% Xie Jing 74.86%
2003-06-30	Shareholder (s)	Wuhan Lantai Pule Technology Co., Ltd. 25.14% Xie Jing 74.86%	Wuhan Lantai Pule Technology Co., Ltd. 25.14% Acto Digital Video U.S.A Inc. 74.86%
2003-07-02	Company Name	Shenzhen City Acto Digital Video Technology Co., Ltd.	Shenzhen Acto Digital Video Technology Co., Ltd.
	Legal Form	Limited Liabilities Company	Chinese-foreign equity joint venture enterprise
	Registration No.	4403012005623	110338
2004-11-08	Shareholder (s)	Wuhan Lantai Pule Technology Co., Ltd. 25.14% Acto Digital Video U.S.A Inc. 74.86%	Wuhan Lantai Pule Technology Co., Ltd. 25.14% Ato Digital Pte. Ltd. 74.86%
2006-01-10	Shareholder (s) (% of Shareholding)	Wuhan Lantai Pule Technology Co., Ltd. 25.14% Acto Digital Video U.S.A Inc. 74.86%	Wuhan Lantai Pule Technology Co., Ltd. 25.14% Ato Digital Pte. Ltd. 54.86% Orienwise (SZ) Limited 20%
2008-06-18	Registration No.	110338	440301501129888
2008-12-17	Registered Capital	CNY 14,600,000	CNY 16,439,600
	Shareholder (s) (% of Shareholding)	Wuhan Lantai Pule Technology Co., Ltd. 25.14% Ato Digital Pte. Ltd. 54.86% Orienwise (SZ) Limited 20%	Ato Digital Pte. Ltd. 48.72% Wuhan Lantai Pule Technology Co., Ltd. 22.33% Infotech Pacific Ventures Co., Ltd. 7.46% Orienwise (SZ) Limited 17.76% Shenzhen Zhongkezhi Capital Investment Co., 3.73%
2009-09-03	Shareholder (s) (% of Shareholding)	Ato Digital Pte. Ltd. 48.72% Wuhan Lantai Pule Technology Co., Ltd. 22.33% Infotech Pacific Ventures Co., Ltd. 7.46% Orienwise (SZ) Limited 17.76% Shenzhen Zhongkezhi Capital Investment Co., Ltd. 3.73%	Shenzhen Atco Digital Cinema Co., Ltd. 17.76% Ato Digital Pte. Ltd. 48.72% Infotech Pacific Ventures Co., Ltd. 7.46% Shenzhen Zhongkezhi Capital Investment Co., 3.73% Wuhan Lantai Pule Technology Co., Ltd. 22.33%
2010-04-21	Shareholder (s) (% of Shareholding)	Shenzhen Atco Digital Cinema Co., Ltd. 17.76% Ato Digital Pte. Ltd. 48.72% Infotech Pacific Ventures Co., Ltd. 7.46% Shenzhen Zhongkezhi Capital Investment Co., 3.73% Wuhan Lantai Pule Technology Co., Ltd. 22.33%	Ato Digital Pte. Ltd. 48.72% Infotech Pacific Ventures Co., Ltd. 7.46% Shenzhen Ruichuangxiang Technology Co., Ltd. 17.76% Shenzhen Zhongkezhi Capital Investment Co., Ltd. 3.73% Wuhan Lantai Pule Technology Co., Ltd. 22.33%

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

Name of Shareholder (s)	% of Shareholding
Ato Digital Pte. Ltd.	48.72
Infotech Pacific Ventures Co., Ltd.	7.46
Shenzhen Ruichuangxiang Technology Co., Ltd.	17.76
Shenzhen Zhongkezhi Capital Investment Co., Ltd.	3.73
Wuhan Lantai Pule Technology Co., Ltd.	22.33

SC’s Chief Executives:-

Position	Name
Legal Representative, Chairman, and General Manager	Xie Jing
Vice Chairman	Chen Deyu
Director	Huang Xiaosheng
	Xiao Yunbo
	Zhou Ning
	Li Xiongying

RECENT DEVELOPMENT

For three consecutive years, SC is awarded as the qualified core equipment supplier in the Modern Distance Education Project for Elementary and Secondary Schools in rural areas, implemented by Ministry of Education, Finance and NDRC.

Honors,

l Outstanding Projector Brand for Large Screen Projection Industry

l Excellent Organization Award for 7th China (Shenzhen) International Cultural Industries Fair

l Product Innovation Award For China Audio Video Industries

l The Demonstration Base of Shenzhen Enterprise Culture Construction

l National Outstanding Basic Party Organization

Etc.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Ato Digital Pte. Ltd. 48.72

Infotech Pacific Ventures Co., Ltd. 7.46

Shenzhen Ruichuangxiang Technology Co., Ltd. 17.76

Shenzhen Zhongkezhi Capital Investment Co., Ltd. 3.73

Wuhan Lantai Pule Technology Co., Ltd. 22.33

u Infotech Pacific Ventures Co., Ltd.

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

Registration No.: 440301103127961

Date of Registration: April 20, 2000

Legal Form: Limited Liabilities Company

Registered Capital: CNY 110,000,000

Legal Representative: Liu Tingru

u Shenzhen Ruichuangxiang Technology Co., Ltd.

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

Registration No.: 440301104555943

Date of Registration: March 19, 2010

Legal Form: One-person Limited Liabilities Company

Registered Capital: CNY 1,000,000

Legal Representative: Xie Jing

u Shenzhen Zhongkezhi Capital Investment Co., Ltd.

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

Registration No.: 440301102747751

Date of Registration: January 16, 2001

Legal Form: Limited Liabilities Company

Registered Capital: CNY 100,000,000

Legal Representative: Zhang Kaiyong

u Wuhan Lantai Pule Technology Co., Ltd.

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

Registration No.: 420100000068054

Date of Registration: May 16, 2003

Legal Form: Limited Liabilities Company

Registered Capital: CNY 15,000,000

Legal Representative: Huang Fu’e

MANAGEMENT

Xie Jing, 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 Shenzhen Ruichuangxiang Technology Co., Ltd. as legal representative

Chen Deyu, Vice Chairman

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

Ø Gender: M

Ø Qualification: University

Ø Working experience (s):

At present, working in SC as vice chairman

Director

-----------

Huang Xiaosheng

Xiao Yunbo

Zhou Ning

Li Xiongying

BUSINESS OPERATION

SC’s registered business scope includes technology development of projection equipment & display system equipment, computer network equipment, and light mechanical & electrical integration products; economic information consulting; increased to, developing computer software, selling its software, researching & developing, and manufacturing LCD projector; importing and exporting commodities and technology.

SC is mainly engaged in researching, developing, manufacturing and selling projection equipment & display system equipment.

SC’s products mainly include: projection equipment & display system equipment for fashion, business, corporate, home theatre, digital cinema, etc.

SC sources its materials 100% from domestic market. SC sells 60% of its products in domestic market, and 40% to the overseas markets, mainly U.S.A., Southeast Asia, etc.

The buying terms of SC include Check, 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 Client*

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

3 G Distributors Inc.

Staff & Office:

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

SC is known to have approx. 512 staff at present.

SC owns an area as its operating office and factory, but the detailed information is unknown.

RELATED COMPANY

SC is not known to have any subsidiary at present.

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 local SAIC.

FINANCIALS

Financial Summary

Unit: CNY’000	As of Dec. 31, 2010
Total assets	914,979
	-------------
Total liabilities	479,424
Equities	435,555
	-------------
Revenue	854,451
Profit before tax	85,210
Less: profit tax	7,008
Profits	78,202

***Note: SC’s Y2011 financials are not filed in local SAIC.

Important Ratios

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

	As of Dec. 31, 2010
*Liabilities to assets	0.52
*Net profit margin (%)	9.15
*Return on total assets (%)	8.55
* Revenue/Total assets	0.93

FINANCIAL COMMENTS

PROFITABILITY: FAIRLY GOOD

l The revenue of SC appears fairly good in its line.

l SC’s net profit margin is fairly good.

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

LIQUIDITY: AVERAGE

l SC’s revenue is in an average level, 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 Good.

CONCLUSIONS

SC is considered medium-sized in its line with fairly good financial conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.91
UK Pound	1	Rs.87.38
Euro	1	Rs.70.24

INFORMATION DETAILS

Report Prepared by :

NIT

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.