MIRA INFORM REPORT

Report Date :

07.03.2008

IDENTIFICATION DETAILS

Name :	mountain agrochemical (pvt) ltd.
Registered Office :	RM 1707, Bldg. B, Millennium Plaza, No. 72, Western Third Ring Road (North), Haidian District, Beijing, 100037 Pr
Country :	China
Financials (as on) :	31.12.2006
Date of Incorporation :	30.06.2004
Com. Reg. No.:	110108007273113
Legal Form :	Limited Liabilities Company
Line of Business :	Exporting Pesticide

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

Maximum Credit Limit :	USD 2,000
Status :	Small Company
Payment Behaviour :	No Complaints
Litigation :	Clear

name & address

mountain agrochemical (pvt) ltd.

RM 1707, BLDG. B, MILLENNIUM PLAZA, NO. 72, WESTERN THIRD RING ROAD (NORTH), haidian district, BEIJING, 100037 PR CHINA.

72 B1707

TEL: 86 (0) 10-51798695 FAX: 86 (0) 10-51798698

EXECUTIVE SUMMARY

INCORPORATION DATE : june 30, 2004

REGISTRATION NO. : 110108007273113

REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY

CHIEF EXECUTIVE : MR. li yimin (CHAIRMAN)

STAFF STRENGTH : 10

REGISTERED CAPITAL : CNY 2,000,000

BUSINESS LINE : TRADING

TURNOVER : CNY 44,450,000 (AS OF DEC. 31, 2006)

EQUITIES : CNY 210,000 (AS OF DEC. 31, 2006)

PAYMENT : FAIR

RECOMM. CREDIT RANGE : UP TO USD 2,000

MARKET CONDITION : FAIR

FINANCIAL CONDITION : FAIR

OPERATIONAL TREND : FAIR

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 7.11 = 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 June 30, 2004.

Company Status: Limited liabilities co.

This form of business in PR China is defined as a legal person. 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 listed as follows:

-manufacturing co. : CNY 500,000.00

-trading &wholesaling co. : CNY 500,000.00

-retailing co. : CNY 300,000.00

-consultancy & service co. : CNY 100,000.00

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 50% of the registered capital while contribution by intangible assets must not exceed 20% 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 importing and exporting goods, technology and acting as an agent for it; not to engage in any items prohibited by laws, administrative regulation and State Council; able to engage in items that needs permit according to the regulation of the State Council, after obtaining the permit from relative authorities and the registration in the AIC; and select to deal with any items that do not need any permit.

SC is mainly engaged in exporting pesticide.

Mr. Li Yimin has been legal representative and general manager of SC since 2004.

SC owns approximately 10 staff at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Beijing. Our checks reveal that SC owns the total premise about 120 square meters.

http://www.mountainagro.com/ The design is professional and the content is well organized. At present it is in both Chinese and English versions.

SC’s former registered capital was CNY 500,000, and in May 2007, it was changed to CNY 2,000,000.

MAIN SHAREHOLDERS:

Name % of Shareholding

Wang Binbin 30

Li Yimin 70

l Legal representative and General manager:

Mr. Li Yimin , 36 years old with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

From 2004 to present Working in SC as legal representative and general manager.

SC is mainly engaged in exporting pesticide.

SC’s products mainly include herbicides, insecticides, and fungicides.

SC sources its materials 100% from domestic market. SC sells 10% of its products in domestic market, and 90% to overseas market, mainly Asia, Pakistan and India.

The buying terms of SC include Check, T/T 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:

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

Tianjin Rennong Pharmaceutical Co., Ltd.

*Major Customer:

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

Zhuhai Gaoyi Fiber Co., Ltd.

SC is not known to have any subsidiary at present.

Overall payment appraisal :

( ) Excellent ( ) Good ( ) Average ( X ) 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 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.

China Construction Bank Beijing Branch Chegongzhuang Sub-branch.

AC#11001069100053000804

Relationship: Normal.

Balance Sheet (as of Dec. 31, 2006)

Unit: CNY’000

Cash & bank	340
Inventory	3,280
Accounts receivable	4,490
Advances to suppliers	1,220
Other receivables	250
Other current assets	60
	------------------
Current assets	9,640
Fixed assets	240
Fixed assets net value	200
Projects under construction	0
Long term investment	0
Other assets	0
	------------------
Total assets	9,840
	=============
Short loans	200
Accounts payable	9,080
Other payable	340
Taxes payable	-780
Advances from customers	770
Other current liabilities	20
	------------------
Current liabilities	9,630
Long term liabilities	0
	------------------
Total liabilities	9,630
Equities	210
	------------------
Total liabilities & equities	9,840
	=============

Income Statement (as of Dec. 31, 2006)

Unit: CNY’000

Turnover	44,450
Cost of goods sold	41,010
Sales expense	3,040
Management expense	0
Finance expense	0
Profit before tax	400
Less: profit tax	0
Profits	400

Important Ratios

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

	as of Dec. 31, 2006
*Current ratio	1.00
*Quick ratio	0.66
*Liabilities to assets	0.98
*Net profit margin (%)	0.90
*Return on total assets (%)	4.07
*Fixed assets/Total assets	0.02
*Inventory /Turnover ×365	27days
*Accounts receivable/Turnover ×365	37days
*Turnover/Total assets	4.52
* Cost of goods sold/Turnover	0.92

PROFITABILITY: AVERAGE

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

l SC’s net profit margin is average.

l SC’s return on total assets is average.

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

LIQUIDITY: FAIR

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

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

l The inventory of SC appears fairly large.

l The accounts receivable of SC appears fairly large.

l SC’s short-term loan is in an average level, but its accounts payable appears TOO LARGE.

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

LEVERAGE: FAIR

l The debt ratio of SC is fairly high.

l The risk for SC to go bankrupt is fairly high.

Overall financial condition of the SC: Fair.

SC is considered small-sized in its line with fair financial conditions. The large amount of accounts payable could be a threat to SC’s financial conditions. A credit line up to USD 2,000 would appear to be within SC’s capacities.

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