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Supplier Assessment ReportReport No .:G093833VTR-QR-CZ-RF-002 V6.3Page 1 / 33SUPPLIER ASSESSMENT REPORTAudit Type : Initial AuditReport No.:G093833Client:XXXSupplier:XXX Digital Technology Co., LtdAudited Factory:XXX Digital Technology Co., LtdAuditor:Frank FangAudit Date:22 September 2012GENERAL OVERVIEWFieldsScore / 10Weight / 10Weighted Score1Factory Profile910902Human Resource88643Foreign Trade Capacity86484Production Capability910905Quality Control910906R&D86487Special Requirements from CustomerNANANA5150430Total:Final Score: [Total weighted score / (10＊Total weight)]86/100REMARKBasic Remarks:Founded in 2000, XXX Digital Technology Co., Ltd is a manufacturer of LED/LCD/PLASMA TV, which was invested1.by XXX Plastic Product Co., Ltd (shared 62.4%) and XXX Technology PIE Ltd (shared 37.6%). XXX had 300 workerswith 50injection machines, and it was sub-factory of XXX to produce the plastic part of TV.There ARE 4 assembly lines in the factory; the daily capacity per line depend on the size and complexity of product.Please refer to the below data of capacity.hourlydaily2.available oursAddress: 1410-1411 West Tower, Poly World Trade Centre, 1000 Xingang Road E., Guangzhou, ChinaTel: 86-20-89089938Fax: 86-20-89089025E-mail: cs@v-trust.comWebsite: www.v-trust.comV-TRUST Copyright All Rights Reserved

Supplier Assessment ReportReport No .:G093833VTR-QR-CZ-RF-002 V6.3Page 2 / 012518060"0010120150The factory can develop new product according to client’s requirement and sampling time is about 7days.Strength Remarks:4.The factory had established a complete quality control system.5.The whole factory is clean and well-organized.Weakness:Training system is not complete:6.No pre-hire testing records for workers were kept by the factory.No training record and personnel certified record for the QCs were kept.The order achievement record showed that only 62% of the order was on-time delivery, but no delay analysis and7.corrective actions plan record was found.8.No written systematic process and daily capacity record to manage and ensure on-time delivery.9.No clearly segregated area for the non-confirming raw material in the warehouse.10.No label on the approved sample.Suggestion:11.The pre-hire testing record for workers should be kept.12.The on-time delivery rate should be improved and the analysis and corrective action plan for delay should be made.13.The systematic process to manage the on-time delivery should be completed.14.The training record and personnel certified record for QCs should be kept.15.The non-confirming material should be clearly segregated in the warehouse.16.The approved samples provided by client should be well identified.@Photos1\Address: 1410-1411 West Tower, Poly World Trade Centre, 1000 Xingang Road E., Guangzhou, ChinaTel: 86-20-89089938Fax: 86-20-89089025E-mail: cs@v-trust.comWebsite: www.v-trust.comV-TRUST Copyright All Rights Reserved

Supplier Assessment ReportReport No .:G093833VTR-QR-CZ-RF-002 V6.3Page 3 / 33CONCLUSION86/100Approved by:Andrew Chiang, Operation ManagerAuditor & Report Reviewer:Auditor(s): Frank FangReport Reviewer: Michael JiangGeneral audit approach:Within the scope of the 3rd party audit, the auditors observed processes in the various departments of the company in order to gain an understandingof the overall operation. The auditors verified the processes in the company for conformity with the ISO 9001:2008 and the customer criteria. Thisverification was performed on a sampling basis; by interview the workers, review of the corresponding documentation, and observation of theindividual processes.*Refer to V-Trust Work Instruction: VTR-WI-CZ-9508V-Trust’s Disclaimer:The report reflects our findings for the particular factory in concern on the date of our service only. This report does not certify, confirm or imply: a)compliance with any government, industry or association regulations or standards, unless stated otherwise; or,) the quality of any specific productsmanufactured by the factory/sellers/suppliers; or, c) the shipment of any specific products. This report does not discharge or release thefactory/sellers/suppliers from their commercial, legal or contractual obligations with buyers in respect of products manufactured by thefactory/sellers/suppliers. Our services, including reports and certificates, are subject to the General Conditions of Service of V-Trust which have beensent to your company. They can be resent upon written request. This report cannot be partially copied.Please find our audit details from next page (Section 1 – 7).Address: 1410-1411 West Tower, Poly World Trade Centre, 1000 Xingang Road E., Guangzhou, ChinaTel: 86-20-89089938Fax: 86-20-89089025E-mail: cs@v-trust.comWebsite: www.v-trust.comV-TRUST Copyright All Rights Reserved

Supplier Assessment ReportReport No .:G093833VTR-QR-CZ-RF-002 V6.3Page 4 / 33Section 1Factory Profile1.1 Legal ValidityDoes the company have a valid businesslicense? Yes NoRegistration Number:33020040001XXXXValid Date:December 17th, 2050Year of established:December 18th, 2000Registered address:XXX Cixi City, Zhejiang Province, ChinaActual address:XXX Cixi City, Zhejiang Province, ChinaIs the annual review done by local authority(Industrial & Commercial Bureau)? Yes NoRegistered capital:1,835,000 USDName of legal representative:XXXXLast reviewed in year:July18th, 2012Item: television, RFID, Electromagnetic furnace, DVD, Computer, Plastic,mould, hardware, auto accessories.Business scope:Import & export business: Yes No1.2 Basic InformationContact Person:XXXTel. number:86-574-63459XXXE-mail:gina@XXX.com.cnFax number:86-574-63459XXXHomepage:www.XXX. com. cnCompany type: Manufactory Foreign Trading Combined Private Owner Public Company Joint Venture Stated Owned Sole Proprietorship Other Wholly Owned Shareholder/Partner Capacity ContractType of ownership:Supplier & Assessed CompanyRelationship:Products Manufactured:LED/LCD/PLASMA TV1.3 Company Building Information Land Certificate Real Estate Certificate Lease AgreementAccording to: Factory Officer Claimed Actually ObservedTotal building size ( )30000Number of buildings:3Office area ( ):10000Address: 1410-1411 West Tower, Poly World Trade Centre, 1000 Xingang Road E., Guangzhou, ChinaTel: 86-20-89089938Fax: 86-20-89089025E-mail: cs@v-trust.comWebsite: www.v-trust.comV-TRUST Copyright All Rights Reserved

Supplier Assessment ReportReport No .:G093833VTR-QR-CZ-RF-002 V6.3Page 5 / 33Production area ( ):8000Warehouse area ( ):120001.4 TransportationVehicle quantity: Cars:5 Trucks:Nearest Sea Port (How many kilometers from factory):Sea port:NingboDistance (km):80Nearest Airport (How many kilometers from factory):Airport:NingboDistance (km):601.5Public power supply connected? Yes NoFrequent power outage in the area?(How many days per week if power outage?)Whether factory have electric power generator?(How many KW if there is electric power generator?)Whether the electric power generator can support Yes No Yes No Yes Noproduction?Remark:1.Founded in 2000, XXX is a manufacturer of LED/LCD/PLASMA TV, which was invested by XXX Plastic ProductCo., Ltd and XXX Technology PIE Ltd. XXX had 300 workers with 50injection machines, and it was sub-factory ofXXX to produce the plastic part of TVScore:9Address: 1410-1411 West Tower, Poly World Trade Centre, 1000 Xingang Road E., Guangzhou, ChinaTel: 86-20-89089938Fax: 86-20-89089025E-mail: cs@v-trust.comWebsite: www.v-trust.comV-TRUST Copyright All Rights Reserved

Supplier Assessment ReportReport No .:G093833VTR-QR-CZ-RF-002 V6.3Page 6 / 33Section 2Human Resource2.1 Organization partmentDoes the Organizational Chart have defined roles andresponsibilities?Does the job descriptions for each of the positions areestablished on file? YesNoPending YesNoPending2.2 Employee DetailsDepartmentAccording to FactoryActual FindingAdministration Dept.4545Sales Dept.4040Financial Dept.1515Production Dept.200200Engineering Dept.2020Quality Dept.2020Others.1010350350Total:Address: 1410-1411 West Tower, Poly World Trade Centre, 1000 Xingang Road E., Guangzhou, ChinaTel: 86-20-89089938Fax: 86-20-89089025E-mail: cs@v-trust.comWebsite: www.v-trust.comV-TRUST Copyright All Rights Reserved

Supplier Assessment ReportReport No .:G093833VTR-QR-CZ-RF-002 V6.3Page 7 / 332.3 Main Person in FactoryPositionNameEducationYear (s) in currentcompanyLegal Representative /OwnerXXXEMBA12General ManagerXXXEMBA4Factory DirectorXXXEMBA4Sales ManagerXXXEMBA12Production managerXXXCollege10QC manager/supervisorXXXCollege8Does the factory conducts & record on-job training for allpersonnel or conducts pre-hire testing of skilled workers prior toYes PendingNohiring?Remark:1.No pre-hire testing records for workers were kept by the factory.Score:8Address: 1410-1411 West Tower, Poly World Trade Centre, 1000 Xingang Road E., Guangzhou, ChinaTel: 86-20-89089938Fax: 86-20-89089025E-mail: cs@v-trust.comWebsite: www.v-trust.comV-TRUST Copyright All Rights Reserved

Supplier Assessment ReportReport No .:G093833VTR-QR-CZ-RF-002 V6.3Page 8 / 33Section 3Foreign Trade Capacity3.1 Export Overall Situation Noexport license? YesEnterprise code:3320930XXXFebruary 21, 2001Export license valid period:February 25, 2014The number of foreign trading staffTotal 20 staff: within 1 year staffwith relevant trading experience: 5-10 years 8staff over 10 years staffWhen does the company first timeget the export license?The language freely used byforeign trade staff:No English 2-5 years 12 staff Others:Overseas agent:/Acceptable quotation: FOB CIFAcceptable payment type: L/C T/T3.2 Products and Markets DistributionAnnual turnover of last year:Main productsLED/LCD/PLASMA TV45 million USD% of Total BusinessMain customers nameMarket n10OtherMiddle East30Volume of last yearRemark:1.The order achievement record showed that 62% of the order was on-time delivery, but no delay analysis andcorrective actions plan record was found.Score:8Address: 1410-1411 West Tower, Poly World Trade Centre, 1000 Xingang Road E., Guangzhou, ChinaTel: 86-20-89089938Fax: 86-20-89089025E-mail: cs@v-trust.comWebsite: www.v-trust.comV-TRUST Copyright All Rights Reserved

Supplier Assessment ReportReport No .:G093833VTR-QR-CZ-RF-002 V6.3Page 9 / 33Section 4Production Capability4.1 Production CapabilityOperating hours:Low season:Name of productionline/step8hoursNo. of shifts:1January to MayPeak season:June to DecemberNo. ofworkersMetal part punching40Assembly200Monthly QTY(pcs)CommentsPlease refer to the below capacity data20000-300004.2Raw materialsMaterial nameSupplier nameLead time (days)Location / Country of originDisplaySamsung, LG15-20Korea,Main boardXXX15Guangzhou, Shenzhen CityDrive boardXXX10-12Shanghai City, Shenzhen CityPowerXXX10-15Remote XXX7-12Haimen CityEPEXXX5-10Shangyu CityShenzhen City, Beijing City, NingbCitySuzhou City, Xiamen City,Hangzhou CityNingbo CityShaoxing City, Jianying City,Shenzhen City, Shanghai CityAddress: 1410-1411 West Tower, Poly World Trade Centre, 1000 Xingang Road E., Guangzhou, ChinaTel: 86-20-89089938Fax: 86-20-89089025E-mail: cs@v-trust.comWebsite: www.v-trust.comV-TRUST Copyright All Rights Reserved

Supplier Assessment ReportReport No .:G093833VTR-QR-CZ-RF-002 V6.3Page 10 / 33Suzhou City, Dongguan City,Structural partXXX15Display wireXXX10-13Hangzhou CityLabelXXX3Cixi City, Taizhou CityBatteryXXX3-5Ningbo City, Dongguang CityGuangzhou City, Taicang City NoYesSub-contractingProduction stepSupplier nameLead time (days)Location / Country of origin////4.3 Production ProcessProduction flow chart for general product12Metal board cutting3Metal board cutting4Metal board punchingMetal board punchingAddress: 1410-1411 West Tower, Poly World Trade Centre, 1000 Xingang Road E., Guangzhou, ChinaTel: 86-20-89089938Fax: 86-20-89089025E-mail: cs@v-trust.comWebsite: www.v-trust.comV-TRUST Copyright All Rights Reserved