MIRA INFORM REPORT

Report Date :

20.04.2011

Note: Mr. Tyagrajan [Mukand Limited] claims that the former name of CHINA METALLURGICAL ENGINEERING & PROJECT CORPORATION is BEIJING SINO STEEL INDUSTRY & TRADE GROUP CORPORATION.

IDENTIFICATION DETAILS

Name :	BEIJING SINO-STEEL INDUSTRY & TRADE GROUP CORPORATION

Registered Office :	No. 46, Dongsi West Street, Dongcheng District, Beijing, 100711 PR

Country :	China

Financials (as on) :	31.12.2009

Date of Incorporation :	10.06.2002

Com. Reg. No.:	1101092387241

Legal Form :	Limited Liabilities Company

Line of Business :	Overseas engineering contracting and international trade.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 50,000
Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

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 – December 31, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

China

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

company Name and address

BEIJING SINO-STEEL INDUSTRY & TRADE GROUP CORPORATION

NO. 46, DONGSI WEST STREET, DONGCHENG DISTRICT, BEIJING, 100711 PR CHINA

TEL: 86 (0) 10-65256538 FAX: 86 (0) 10-65268560

EXECUTIVE SUMMARY

INCORPORATION DATE : JUN. 10, 2002

REGISTRATION NO. : 1101092387241

REGISTERED LEGAL FORM : Limited LiabilitIES Company

CHIEF EXECUTIVE : MR. DIAO FAMING (CHAIRMAN)

STAFF STRENGTH : 110

REGISTERED CAPITAL : CNY 5,880,000

BUSINESS LINE : ENGINEERING AND TRADING

TURNOVER : cny 87,160,000 (UNaudited, AS OF DEC. 31, 2009)

EQUITIES : cny 6,570,000 (UNaudited, AS OF DEC. 31, 2009)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : up to USD 50,000

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : FAIRLY steady

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.83= 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

Note: SC’s complete name should be the heading one.

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 Jun. 10, 2002.

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 manufacturing and selling refractory materials, carbon additive, and machine parts; selling building materials, metal products (except gold), ferroalloy, mechanical equipments, valves, chemical products (except dangerous chemicals and easily made poisonous chemicals), cultural and office appliances, household appliances, clothing, hardware, daily necessities, handicrafts , knitwear, textiles, furniture, electronic equipments, computer accessories, printing equipments, and computer consumables; information consulting (excluding intermediary services); importing and exporting commodities and technology (excluding the items limited or prohibited by state).

SC is mainly engaged in overseas engineering contracting and international trade.

Mr. Diao Faming is the legal representative and chairman of SC at present.

SC is known to have approx. 110 employees at present

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Beijing. The detailed information of the area is unspecified.

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

No significant events or changes were found during our checks with the local Administration for Industry and Commerce.

*To what extent is your company affected by the current Credit Crisis?

SC’s accountant refused to make any comments.

MAIN SHAREHOLDERS:

Name % of Shareholding

Diao Faming 95.92

Wang Xiaolong 2.04

Bao Wanyi 2.04

Note: According to SC’s accountant Ms. Wang, its registered capital and shareholders will change recently, but the detail is not available at present.

l Legal representative, chairman and general manager:

Mr. Diao Faming , ID# 330106660412047, born in 1966. 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.

Supervisor:

========

Mr. Wang Xiaolong , ID# 650202760702003

SC is mainly engaged in overseas engineering contracting and international trade.

SC’s business mainly includes metallurgical engineering and coal engineering.

SC’s products mainly include: metallurgical equipments, refractory materials, etc.

SC sources its materials 100% from domestic market. SC sells 20% of its products in domestic market, and 80% to overseas market. SC’s business and projects are mainly located in overseas now.

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

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 refused to release any information of its suppliers and the trade reference was not available.

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.

SC’s accountant refused to release the detailed information of the banking.

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2009
Cash & bank	8,990
Accounts receivable	6,740
Advances to suppliers	36,010
Inventory	520
Other receivables	13,070
Prepaid expenses	100
Export drawback receivable	5,070
Other current assets	0
	------------------
Current assets	70,500
Fixed assets net value	11,350
Long term investment	800
Other assets	20
	------------------
Total assets	82,670
	=============
Short loans	0
Accounts payable	50,610
Advances from clients	20,610
Taxes payable	-140
Other payable	5,020
Other current liabilities	0
	------------------
Current liabilities	76,100
Long term liabilities	0
	------------------
Total liabilities	76,100
Equities	6,570
	------------------
Total liabilities & equities	82,670
	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2009
Turnover	87,160
Cost of goods sold	67,630
Sales expense	820
Management expense	18,670
Finance expense	250
Profit before tax	-500
Less: profit tax	0
Profits	-500

Note: According to SC’s accountant Ms. Wang, the above financial records for Year 2009 have not been audited.

Important Ratios

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

	As of Dec. 31, 2009
*Current ratio	0.93
*Quick ratio	0.92
*Liabilities to assets	0.92
*Net profit margin (%)	-0.57
*Return on total assets (%)	-0.61
*Inventory /Turnover ×365	2 days
*Accounts receivable/Turnover ×365	28 days
*Turnover/Total assets	1.05
* Cost of goods sold/Turnover	0.78

PROFITABILITY: FAIR

l The turnover of SC appears average.

l SC’s net profit margin is fair.

l SC’s return on total assets is fair.

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 fair level.

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

l The inventory of SC appears average in 2009.

l The account receivable of SC appears average in 2009.

l SC has no short-term loan in 2009.

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: Fairly stable.

SC is considered medium-sized in its line with fairly stable financial conditions. A credit line up to USD 50,000 would appear to be within SC’s capacities.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.68
UK Pound	1	Rs.72.56
Euro	1	Rs.63.53

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

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

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