MIRA INFORM REPORT

Report Date :

11.08.2008

IDENTIFICATION DETAILS

Name :	BOYA (TIANJIN) INTERNATIONAL LTD.
Registered Office :	Room 1702-1703, Building B, Sanlian Mansion, Shiyijing Road Hedong District, Tianjin 300170 Pr
Country :	China
Financials (as on) :	31.12.2007
Date of Incorporation :	11.01.2006
Com. Reg. No.:	1201922004557
Legal Form :	Limited Liabilities Company
Line of Business :	Importer and Exporter of Chemical Products.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Small Company
Payment Behaviour :	No Complaints
Litigation :	Clear

name & address

BOYA (TIANJIN) INTERNATIONAL LTD.

room 1702-1703, building b, sanlian mansion, shiyijing road

hedong district, tianjin 300170 PR CHINA

TEL: 86 (0) 22-24302708 FAX: 86 (0) 22-24302728

EXECUTIVE SUMMARY

INCORPORATION DATE : jan. 11, 2006

REGISTRATION NO. : 1201922004557

REGISTERED LEGAL FORM : Limited liabilities company

CHIEF EXECUTIVE : Ms. mao wenli (CHAIRMAN)

STAFF STRENGTH : 5

REGISTERED CAPITAL : CNY 1,000,000

BUSINESS LINE : trading

TURNOVER : CNY 10,240,000 (AS OF DEC. 31, 2007)

EQUITIES : CNY 170,000 (AS OF DEC. 31, 2007)

PAYMENT : AVERAGE

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : fair

OPERATIONAL TREND : fair

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.86 = US$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

SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Jan. 11, 2006.

Company Status: Limited liabilities co.

This form of business in PR China is defined as a legal person. No more than fifty shareholders contribute its registered capital jointly. Shareholders bear limited liability to the extent of shareholding, and the co. is liable for its debts only to extent of its total assets. The characteristics of this form of co. are as follows:

Upon the establishment of the co., an investment certificate is issued to the each of shareholders.

The board of directors is comprised of three to thirteen members.

The minimum registered capital for a co. is CNY 30,000.

Shareholders may take their capital contributions in cash or by means of tangible assets or intangible assets such as industrial property and non-patented technology.

Cash contributed by all shareholders must account for at least 30% of the registered capital.

Existing shareholders have pre-exemption right to purchase shares of the co. offered for sale by the other shareholders and to subscribe for the newly increased registered capital of the co.

SC’s registered business scope includes international trade, transit trade, importing and exporting commodities & technology.

SC is mainly engaged in importing and exporting chemical products.

Ms. Mao Wenli has been chairman of SC since 2006.

SC is known to have approx. 5 staff members at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Tianjin. Our checks reveal that SC rents the total premise about 80 square meters.

http://www.boya-chemical.com The design is professional and the content is well organized. At present the web is both in English and Chinese versions.

E-mail: boya.chemical@163.com

No significant events or changes were found during our checks with the local AIC.

MAIN SHAREHOLDERS:

Name % of Shareholding

Mao Wenli 55

Wan Jun 45

l Chairman and General Manager:

Ms. Mao Wenli, in her 30’s with university education. She is currently responsible for the overall management of SC.

Working Experience(s):

From 2006 to present Working in SC as chairman and general manager.

SC is mainly engaged in importing and exporting chemical products.

SC’s products mainly include:

u Sodium Sulphide

u Calcium Carbide

u Ammonium Chloride

u Humic Acid

u Barium chloride

u Dicyandiamide

u Barium Sulfate

u Oxalic Acid

u Sodium Hydroxide

u Sodium Hydrosulfide

u Chromium Sulphate

u Sodium metabisulfite

u Sodium thiosulfate

SC sources its materials 99% from domestic market, mainly Tianjin, Hebei, and Inner Mongolia, and 1% from overseas market. SC sells 15% of its products in domestic market, and 85% to overseas market, mainly Pakistan, South Korea, and other Southeast Asia countries.

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

*Major Supplier:

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

Inner Mongolia Lichuan Chemical 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: A trade enquiry currently conducted with SC's supplier(s) reveal the following:

Supplier A

Products sold: various chemical products

Date account opened: 2007

Line of credit: No comment

Terms: Cash on delivery

Average monthly sales: No comment

Current balance: 0

Rating Key: 3

Any Special Comments:  ______________________________________

Payment record keys :

1 = Prompt : Payment made before the credit period expires

2 = As agreed terms : Payment made upon due date

3 = Slightly slow but acceptable : Payment made 5 to 20 days beyond agreed terms

4 = Slow : Payment made 16 to 45 days beyond agreed terms

5 = Poor : Payment made over 45 days beyond agreed terms

6 = No comment : Account is newly opened & record is not yet established

Note : In some instances, payment beyond terms can be the result of disputes over merchandise, lost invoices, disputed accounts & etc.

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

AC#11960808091001

Relationship: Normal.

Balance Sheet (as of Dec. 31, 2007)

Unit: CNY’000

Cash & bank	680
Inventory	800
Accounts receivable	0
Other Accounts receivable	70
Advances to suppliers	3,060
To be apportioned expense	0
Other current assets	1,230
	------------------
Current assets	5,840
Fixed assets net value	80
Projects under construction	0
Long term investment	0
Other assets	0
	------------------
Total assets	5,920
	=============
Short loans	0
Accounts payable	2,510
Advances from clients	0
Other Accounts payable	3,200
Withdraw the expenses in advance	0
Other current liabilities	40
	------------------
Current liabilities	5,750
Long term liabilities	0
Other liabilities	0
	------------------
Total liabilities	5,750
Equities	170
	------------------
Total liabilities & equities	5,920
	=============

Income Statement (as of Dec. 31, 2007)

Unit: CNY’000

Turnover	10,240
Cost of goods sold	8,430
Sales expense	2,280
Management expense	290
Finance expense	50
Profit before tax	-830
Less: profit tax	0
Profits	-830

Important Ratios (as of Dec. 31, 2007)

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

*Current ratio 1.02

*Quick ratio 0.88

*Liabilities to assets 0.97

*Net profit margin (%) -8.11

*Return on total assets (%) -14.02

*Inventory /Turnover ×365 29days

*Accounts receivable/Turnover ×365 /

*Turnover/Total assets 1.73

* Cost of goods sold/Turnover 0.82

PROFITABILITY: FAIR

l The turnover of SC appears average in its line.

l SC’s net profit margin is fair.

l SC’s return on total assets is poor.

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

LIQUIDITY: AVERAGE

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

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

l The inventory of SC is maintained in an average level.

l SC has no accounts receivable in 2007.

l SC has no short-term loan in 2007.

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

LEVERAGE: FAIR

l The debt ratio of SC is high.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fair.

SC is considered small-sized in its line with a short history.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.42.20
UK Pound	1	Rs.81.48
Euro	1	Rs.64.27

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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