MIRA INFORM REPORT

Report Date :

04.08.2011

IDENTIFICATION DETAILS

Name :	BOMAG (CHINA) CONSTRUCTION MACHINERY CO., LTD.
Registered Office :	No. 2808, Huancheng West Road, Industrial Comprehensive Development Zone, Fengxian District, Shanghai 201401 Pr
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	11.01.2006
Com. Reg. No.:	310000400453375
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	manufacturing and Selling Construction Machinery

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 500,000
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 – March 31^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
China	a2	a2

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

Bottom of Form

Company name & address

BOMAG (CHINA) CONSTRUCTION MACHINERY CO., LTD.

NO. 2808, HUANCHENG WEST ROAD, INDUSTRIAL COMPREHENSIVE DEVELOPMENT ZONE, FENGXIAN DISTRICT, SHANGHAI 201401 PR CHINA

TEL: 86 (0) 21-33655566 FAX: 86 (0) 21-33655505

EXECUTIVE SUMMARY

INCORPORATION DATE : JAN. 11, 2006

REGISTRATION NO. : 310000400453375

REGISTERED LEGAL FORM : Wholly foreign-owned enterprise

CHIEF EXECUTIVE : MR. Joerg Unger (CHAIRMAN)

STAFF STRENGTH : 120

REGISTERED CAPITAL : USD 8,600,000

BUSINESS LINE : MANUFACTURING

TURNOVER : CNY 270,560,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 92,600,000 (AS OF DEC. 31, 2010)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 500,000 (PERIODICAL REVIEW)

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.44= 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 Jan. 11, 2006.

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 designing and manufacturing new type of mechanical equipment for highways and ports; large-scale construction of railway; designing and manufacturing maintenance equipment; manufacturing machines for road milling and overhauling; selling self-made commodities; providing related technical advisory service and after-sale service; other import and export trade. (with permit if needed)

SC is mainly engaged in manufacturing and selling construction machinery.

Mr. Joerg Unger is legal representative and chairman of SC at present.

SC is known to have approx. 120 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 Shanghai. The detailed premise information is unknown.

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

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

MAIN SHAREHOLDERS:

Name % of Shareholding

(Germany) Fayat Bomag Gmbh & Co. Unternehmensfuhrungs Kg. 100

Hellerwald D-56154 Boppard Germany

Telephone: +49 6742 100-0

Fax: +49 6742 3090

Web: http://www.bomag.com/

Email: info@bomag.com

l Legal representative and Chairman:

Mr. Joerg Unger, German, with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative and chairman.

Also working in Bomag GmbH as director.

SC is mainly engaged in manufacturing and selling construction machinery.

SC’s products mainly include road roller, other construction machinery, etc.

SC sources its materials 50% from domestic market and 50% from overseas market. SC sells 60% in domestic market and 40% to overseas market.

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.

Note: SC declined to release its major suppliers and clients.

According to http://www.bomag.com/

Bomag Maschinenhandelsgesellschaft m.b.H.

Telephone: +43 1 69040-0

Fax: +43 1 69040-20

E-mail: austria@bomag.com

Bomag (Canada), Inc.

3455 Semenyk Court Mississauga, Ontario L5C 4P9 Canada

Telephone: +1 905 361 9961

Fax: +1 905 361 9962

E-mail: canada@bomag.com

Bomag Gmbh, Singapore

300 Beach Road, the Concourse, # 18-06 Singapore 199555 Singapore

Telephone: +65 6294 1277

Fax: +65 6294 1377

E-mail: singapore@bomag.com

Etc.

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.

SC’s accountant refused to release the bank details.

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2009	As of Dec. 31, 2010
Cash & bank	6,040	42,980
Inventory	52,370	70,450
Bills receivable	0	0
Accounts receivable	15,550	19,320
Advances to suppliers	0	0
Other receivables	5,040	1,420
Other current assets	10	10
	------------------	------------------
Current assets	79,010	134,180
Fixed assets net value	56,160	51,490
Long term investment	0	0
Projects under construction	40	150
Intangible and other assets	6,110	9,530
	------------------	------------------
Total assets	141,320	195,350
	===========	===========
Short loan	60,000	48,000
Accounts payable	17,560	50,330
Bills payable	0	0
Advances from clients	0	0
Taxes payable	540	-3,050
Other Accounts payable	380	40
Other current liabilities	3,700	7,430
	------------------	------------------
Current liabilities	82,180	102,750
Long term liabilities	0	0
	------------------	------------------
Total liabilities	82,180	102,750
Equities	59,140	92,600
	------------------	------------------
Total liabilities & equities	141,320	195,350
	===========	===========

Income Statement

Unit: CNY’000

	As of Dec. 31, 2010
Turnover	270,560
Cost of goods sold	214,880
Sales expense	610
Management expense	10,970
Finance expense	4,780
Profit before tax	39,290
Less: profit tax	5,830
Profits	33,460

Important Ratios

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

	As of Dec. 31, 2009	As of Dec. 31, 2010
*Current ratio	0.96	1.31
*Quick ratio	0.32	0.62
*Liabilities to assets	0.58	0.53
*Net profit margin (%)	/	12.37
*Return on total assets (%)	/	17.13
*Inventory /Turnover ×365	/	95 days
*Accounts receivable/Turnover ×365	/	26 days
*Turnover/Total assets	/	1.39
* Cost of goods sold/Turnover	/	0.79

PROFITABILITY: FAIRLY GOOD

l The turnover of SC appears fairly good in 2010.

l SC’s net profit margin is fairly good in 2010.

l SC’s return on total assets is fairly good in 2010.

l SC’s cost of goods sold is average, comparing with its turnover in 2010.

LIQUIDITY: FAIR

l The current ratio of SC is maintained in a fair level in 2009 and in a normal level in 2010.

l SC’s quick ratio is maintained in a poor level in 2009 and in a fair level in 2010.

l The inventory of SC appears large.

l The accounts receivable of SC appears average.

l The 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 in 2010.

LEVERAGE: AVERAGE

l The debt ratio of SC is average.

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. The large amount of inventory and short-term loan could be a threat to SC’s financial condition. The given credit amount would appear to be beyond SC’s capacities, while a credit line up to USD 500,000 would appear to be within SC’s capacities upon a periodical review basis.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.38
UK Pound	1	Rs.72.21
Euro	1	Rs.62.87

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
----	NB	New Business	----

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.