MIRA INFORM REPORT

Report Date :

11.09.2008

IDENTIFICATION DETAILS

Name :	Sunshine (tianjin) produce Ltd.
Registered Office :	No. 18, Weiqi Road, Micro Electronics Industrial Park, Jingang Highway, Xiqing District, Tianjin, 300385 Pr
Country :	China
Financials (as on) :	31.12.2007
Date of Incorporation :	19.08.2003
Com. Reg. No.:	120000400068073
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Producing, Processing and Selling Agricultural and Sideline Products

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

Maximum Credit Limit :	USD 300,000
Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

name & address

Sunshine (tianjin) produce Ltd.

NO. 18, WEIQI ROAD, MICRO ELECTRONICS INDUSTRIAL PARK,

JINGANG HIGHWAY, XIQING DISTRICT, TIANJIN, 300385 PR CHINA

TEL: 86 (0) 22-83970882 FAX: 86 (0) 22-23885599

EXECUTIVE SUMMARY

INCORPORATION DATE : AUGUST 19, 2003

REGISTRATION NO. : 120000400068073

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED enterprise

CHIEF EXECUTIVE : MR. CHEN LIYUAN (CHAIRMAN)

STAFF STRENGTH : 40

REGISTERED CAPITAL : USD 5,850,000

BUSINESS LINE : MANUFACTURING

TURNOVER : CNY 166,830,000 (AS OF DEC. 31, 2007)

EQUITIES : CNY 53,750,000 (AS OF DEC. 31, 2007)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 300,000 (periodical review)

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.84 = 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 Renminbi

SC was registered as a wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Aug. 19, 2003.

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, processing and selling agricultural and sideline products; providing technical consulting services.

SC is mainly engaged in producing, processing and selling agricultural and sideline products. (

Mr. Chen Liyuan has been legal representative and chairman of SC since 2003.

SC is known to have approx. 40 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Tianjin. Our checks reveal that SC owns the total premise about 23,000 square meters.

SC is not known to host website of its own at present.

SC started its normal operation in October of 2005.

MAIN SHAREHOLDERS:

Name % of Shareholding

Sunshine Deutschland Handelsgesellschaft mbH (Germany) 100

l Chairman and General manager:

Mr. Chen Liyuan, in his 40’s with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

From 2003 to present Working in SC as chairman and general manager.

SC started its normal operation since October, 2005.

SC is mainly engaged in producing, processing and selling agricultural and sideline products.

SC’s products mainly include agricultural and sideline products.

SC sources its materials 98% from domestic market, and 2% from overseas market, mainly Europe. SC sells 10% of its products in domestic market, and 90% to overseas market, mainly U.S.A., Great Britain, Germany, and Hungary.

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

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

Anhui Guoyang Shunxing Cereals, Oils and Foodstuffs Co., Ltd.

*Major Customer:

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

Changchun Taoli Food 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 : 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.

Agricultural Development Bank of China Tianjin Xiqing Sub-branch

AC#20312012500100000145631

Relationship: Normal.

Balance Sheet (as of Dec. 31, 2007)

Unit: CNY’000

Cash & bank	3,710
Inventory	28,910
Accounts receivable	7,290
Advances to suppliers	7,300
Other receivables	500
Subsidies receivable	800
Other current assets	30
	------------------
Current assets	48,540
Fixed assets net value	26,210
Projects under construction	21,530
Long term investment	0
Other assets	1,040
	------------------
Total assets	97,320
	=============
Short loans	29,530
Accounts payable	7,810
Other payable	2,570
Taxes payable	-2,250
Advances from clients	5,910
Other current liabilities	0
	------------------
Current liabilities	43,570
Long term liabilities	0
	------------------
Total liabilities	43,570
Equities	53,750
	------------------
Total liabilities & equities	97,320
	=============

Income Statement (as of Dec. 31, 2007)

Unit: CNY’000

Turnover	166,830
Cost of goods sold	149,210
Sales expense	4,520
Management expense	4,320
Finance expense	2,660
Profit before tax	6,100
Less: profit tax	0
Profits	6,100

Important Ratios

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

	as of Dec. 31, 2007
*Current ratio	1.11
*Quick ratio	0.45
*Liabilities to assets	0.45
*Net profit margin (%)	3.66
*Return on total assets (%)	6.27
*Inventory /Turnover ×365	64 days
*Accounts receivable/Turnover ×365	16 days
*Turnover/Total assets	1.71
* Cost of goods sold/Turnover	0.89

PROFITABILITY: FAIRLY GOOD

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 fairly good.

l SC’s cost of goods sold is average, 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 is maintained in an average level.

l SC’s short-term loan of SC appears fairly large.

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

LEVERAGE: AVERAGE

l The debt ratio of SC is low.

l The risk for SC to go bankrupt is low.

Overall financial condition of the SC: Fairly stable.

SC is considered small-sized in its line with fairly stable financial conditions. The large amount of inventory could be a threat to SC’s financial condition. A credit line at the above amount should be partially under guarantee, while a credit limit of USD 300,000 appears to be within SC’s capacities upon a periodical review basis.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.44
UK Pound	1	Rs.79.62
Euro	1	Rs.63.48

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