MIRA INFORM REPORT

Report Date :

13.11.2014

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) :	31.12.2013
Date of Incorporation :	26.09.2000
Com. Reg. No.:	310000400247545
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Manufacturing and processing brander, filling machines, bottle cap-making machines and label printing machines and other small packaging machinery, selling self-made products, wholesale, importing and exporting the similar products, providing related technology consulting and after-sale services.
No. of Employees :	2

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Business Operation Ceased
Payment Behaviour :	--
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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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, growth of the private sector, development of stock markets and a modern banking system, 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 considered important to "economic security," explicitly looking to foster globally competitive industries. After keeping its currency tightly linked to the US dollar for years, in July 2005 China 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 and expanded the daily trading band within which the RMB is permitted to fluctuate. 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 2013 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 consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (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. Several factors are converging to slow China's growth, including debt overhang from its credit-fueled stimulus program, industrial overcapacity, inefficient allocation of capital by state-owned banks, and the slow recovery of China's trading partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated at the Communist Party's "Third Plenum" meeting in November 2013, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent in the future on fixed investments, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources.

Source : CIA

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 AND MANUFACTURING

TURNOVER : CNY 155,000 (AS OF DEC. 31, 2013)

EQUITIES : CNY 196,000 (AS OF DEC. 31, 2013)

PAYMENT : NOT YET DETERMINED

MARKET CONDITION : FAIR

FINANCIAL CONDITION : FAIR

OPERATIONAL TREND : FAIR

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.1297=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 and other small packaging machinery, selling self-made products, wholesale, importing and exporting the similar products, providing related technology consulting and after-sale services (excluding the state-run trade, import and export quota license, export quota bidding, export license and other special management goods; if needed with permit).

According to SC’s accountant, SC has ceased operation since February of 2014. And SC is planning to apply for registration cancellation.

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 and factory in Shanghai. Detailed information of the premise is unknown.

http://www.cvcpharmapack.com/en/ 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 and Chinese versions.

For the past two years there is no record of litigation.

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

Subject passed the annual inspection of 2012 with Administration for Industry & Commerce.

Organization Code: 607421071

According to SC’s accountant, SC has ceased operation since February of 2014. And SC is planning to apply for registration cancellation.

MAIN SHAREHOLDERS:

Name % of shareholdings

Shar-Ha Co., Ltd. (Brunei) 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.

l Directors:

Bai Xiaoping

Yang Shihao

l Supervisor:

Yi Weirong

According to SC’s accountant, SC has ceased operation since February of 2014. And SC is planning to apply for registration cancellation.

SC was formerly engaged in manufacturing and selling branders, filling machines, bottle cap-making and label-printing machines.

Huangjiang (Shanghai) Packaging Technology Co., Ltd.

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

Incorporation Date: 2008-08-29

Registration No.: 310000400582453

Registered Legal Form: Wholly Foreign-Owned Enterprise

Legal representative: Yang Shenghui

According to the website: http://www.cvcpharmapack.com/en/

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

Fax: +886 (4) 3705-6688

Etc.

Overall payment appraisal:

( ) Excellent ( ) Good ( ) Average ( ) Fair ( ) Poor (X) 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: N/A

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, 2012	As of Dec. 31, 2013
Cash & bank	349	23
Inventory	440	486
Accounts receivable	3,776	3,907
Advances to suppliers	49	49
Other Accounts receivable	4,667	4,424
Note receivable	144	0
	------------------	------------------
Current assets	9,425	8,889
Fixed assets	159	128
	------------------	------------------
Total assets	9,584	9,017
	=============	=============
Short loans	0	0
Accounts payable	8,125	7,986
Advances from clients	438	847
Taxes payable	-13	-12
Other Accounts payable	831	0
	------------------	------------------
Current liabilities	9,381	8,821
Long term liabilities	0	0
	------------------	------------------
Total liabilities	9,381	8,821
Equities	203	196
	------------------	------------------
Total liabilities & equities	9,584	9,017
	=============	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2012	As of Dec. 31, 2013
Turnover	852	155
Cost of goods sold	866	97
Taxes and additional of main operation	3	0
Sales expense	595	0
Management expense	116	64
Finance expense	2	1
Profit before tax	-730	-7
Less: profit tax	0	0
Profits	-730	-7

Important Ratios

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

	As of Dec. 31, 2012	As of Dec. 31, 2013
*Current ratio	1.00	1.01
*Quick ratio	0.96	0.95
*Liabilities to assets	0.98	0.98
*Net profit margin (%)	-85.68	-4.52
*Return on total assets (%)	-7.62	-0.08
*Inventory /Turnover ×365	189 days	1,145 days
*Accounts receivable/Turnover ×365	1,618 days	9,201 days
*Turnover/Total assets	0.09	0.02
* Cost of goods sold/Turnover	1.02	0.63

PROFITABILITY: FAIR

l The turnover of SC appears fair in 2012, but poor in 2013.

l SC’s net profit margin appears poor in 2012, but fair in 2013.

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

l SC’s cost of goods sold is high in 2012, but average in 2013, comparing with its turnover.

LIQUIDITY: FAIR

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

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

According to SC’s accountant, SC has ceased operation since February of 2014. And SC is planning to apply for registration cancellation. Judging from the above investigation results.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.48
UK Pound	1	Rs.97.92
Euro	1	Rs.76.79

INFORMATION DETAILS

Analysis Done by :	KAR
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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.