MIRA INFORM REPORT

Report Date :

16.08.2011

IDENTIFICATION DETAILS

Name :	CHANGYI CITY HAIMEI PLASTIC PRODUCTS CO., LTD.

Registered Office :	No. 371 Beihai Road, Changyi City, Shandong Province 261300 Pr

Country :	China

Financials (as on) :	31.12.2010

Date of Incorporation :	09.03.2001

Com. Reg. No.:	370786228003863

Legal Form :	Limited Liabilities Company

Line of Business :	Manufacturing, processing and selling plastic flexible series FIBC, woven bags, flame retardant tape, flexible series geotextiles, cotton plastic bags, hemp plastic bags, packing tape, plastic rope series products, importing and exporting goods and technology.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 80,000
Status :	Moderate
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

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

Company name and address

CHANGYI CITY HAIMEI PLASTIC PRODUCTS CO., LTD.

NO. 371 BEIHAI ROAD, CHANGYI CITY, SHANDONG PROVINCE 261300 PR CHINA

TEL: 86 (0) 536-7211786/2175888

FAX: 86 (0) 536-7211805

EXECUTIVE SUMMARY

Date of Registration : march 9, 2001

REGISTRATION NO. : 370786228003863

LEGAL FORM : Limited liabilities company

CHIEF EXECUTIVE : cong menghai (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : cny 5,000,000

staff : 510

BUSINESS CATEGORY : manufacturing

Revenue : CNY 132,080,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 9,900,000 (AS OF DEC. 31, 2010)

WEBSITE : www.haimeiplastic.cn

E-MAIL : haimeisuye@haimeiplastic.cn

PAYMENT : AVERAGE

Recommended Credit Limit: UP TO USD 80,000

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRly stable

OPERATIONAL TREND : fairly STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.39 = USD 1

Adopted abbreviations (as follows)

SC - Subject Company (the company inquired by you)

N/A – Not available

CNY – China Yuan Ren Min Bi

OPERATIONAL TREND & GENERAL REPUTATION

This section aims at indicating the relative positions of SC in respect of its operational trend & general reputation

Operational Trend:- General Reputation:-

Upward Excellent

Steady Good

Fairly Steady Fairly Good

Ordinary Average

Fair Fair

Stagnant Detrimental

Downward Not known

Not known Not yet be determined

Not yet be determined

LEGAL STATUS & HISTORY

SC was established as a limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 370786228003863 on March 9, 2001.

SC’s Organization Code Certificate No.: 726714301

SC’s registered capital: cny 5,000,000

SC’s paid-in capital: cny 5,000,000

Registration Change Record:

Date	Change of Contents	Before the change	After the change
2005-04-29	Registered Capital	CNY 1,000,000	CNY 2,000,000
2007-07-11	Registered Capital	CNY 2,000,000	CNY 5,000,000

Current Co search indicates SC’s shareholders & chief executives are as follows:-

Name of Shareholder (s)	% of Shareholding
Cong Menghai	30.0
Cong Lujun	10.0
Wang Fang	3.6
Zhang Nong	3.6
Hou Jiansheng	3.2
Zhang Zhitao	3.2
Wang Qing	2.0
Liu Shuying	2.0
Cong Wei	2.0
Liu Dejian	2.0
Other individuals	38.4

SC’s Chief Executives:-

Position	Name
Legal Representative, Chairman, and General Manager	Cong Menghai
Vice Chairman	Cong Lujun
Directors	Zhang Zhitao
	Liu Shuying
	Zhang Nong
	Liu Dejian
	Hou Jiansheng
	Wang Fang
	Cong Wei
Supervisors	Wang Qingguo
	Guo Fayun
	Cai Jianjun

RECENT DEVELOPMENT

SC has got the certificate ISO9001.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Cong Menghai 30.0

ID# 370726194610010016

Cong Lujun 10.0

ID# 370786197009010015

Wang Fang 3.6

ID# 370786196304050103

Zhang Nong 3.6

ID# 370786196211130016

Hou Jiansheng 3.2

ID# 370726194906070034

Zhang Zhitao 3.2

ID# 370726196109260010

Wang Qing 2.0

ID# 370726195601150038

Liu Shuying 2.0

ID# 370786195706150057

Cong Wei 2.0

ID# 37078619860913661X

Liu Dejian 2.0

ID# 370726196204050038

Other individuals 38.4

MANAGEMENT

Cong Menghai , Legal Representative, Chairman and General Manager

-------------------------------------------------------------------------------------------------------

Ø Gender: M

Ø Age: 65

Ø ID# 370726194610010016

Ø Working experience (s):

From 2001 to present, working in SC as legal representative, chairman and general manager

Cong Lujun , Vice Chairman

-------------------------------------------------

Ø Gender: M

Ø Age: 41

Ø ID# 370786197009010015

Ø Qualification: University

Ø Working experience (s):

At present, working in SC as vice chairman

Directors

------------

Zhang Zhitao ID# 370726196109260010

Liu Shuying ID# 370786195706150057

Zhang Nong ID# 370786196211130016

Liu Dejian ID# 370726196204050038

Hou Jiansheng ID# 370726194906070034

Wang Fang ID# 370786196304050103

Cong Wei ID# 37078619860913661X

Supervisors

----------------

Wang Qingguo ID# 370726195212280015

Guo Fayun ID# 37072619581027001X

Cai Jianjun ID# 370726195602010010

BUSINESS OPERATION

SC’s registered business scope includes manufacturing, processing and selling plastic flexible series FIBC, woven bags, flame retardant tape, flexible series geotextiles, cotton plastic bags, hemp plastic bags, packing tape, plastic rope series products, importing and exporting goods and technology.

SC is mainly engaged in manufacturing and selling plastic flexible series FIBC, woven bags, and flame retardant tape.

SC’s products mainly include: plastic flexible series FIBC, woven bags, flame retardant tape, cotton plastic bags, hemp plastic bags, packing tape, plastic rope series products.

SC sources its materials 100% from domestic market, mainly Shandong. SC sells 20% of its products in domestic market, and 80% to overseas market, mainly USA, Korea, Japan, Taiwan, etc.

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

Staff & Office:

--------------------------

SC is known to have approx. 510 staff at present.

SC rents an area as its operating office & factory of approx. 100,000 sq. meters at the heading address.

RELATED COMPANY

SC is not known to have any subsidiary at present.

PAYMENT

Overall payment appraisal:

( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.

BANKING

China Construction Bank Weifang Branch

AC#：N/A

FINANCIALS

Financial Summary

Unit: CNY’000	As of Dec. 31, 2009	As of Dec. 31, 2010
Long term investment	1,250	1,250
Total assets	99,680	113,940
	-------------	-------------
Long term liabilities	4,860	4,860
Total liabilities	91,770	104,040
Equities	7,910	9,900
	-------------	-------------
Revenue	95,560	132,080
Profit before tax	420	2,770
Less: profit tax	100	690
Profits	320	2,080

Note: The detailed financials for Y2009 and Y2010 of SC are not filed in SAIC.

Important Ratios

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

	As of Dec. 31, 2009	As of Dec. 31, 2010
*Liabilities to assets	0.92	0.91
*Net profit margin (%)	0.33	1.57
*Return on total assets (%)	0.32	1.83
* Revenue/Total assets	0.96	1.16

FINANCIAL COMMENTS

PROFITABILITY: AVERAGE

l The revenue of SC appears fairly good, and it increased in 2010.

l SC’s net profit margin is average in both years.

l SC’s return on total assets is average in both years.

LIQUIDITY: AVERAGE

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

LEVERAGE: FAIR

l The debt ratio of SC is fairly high in both years.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly Stable.

CONCLUSIONS

SC is considered medium-sized in its line with fairly stable financial conditions. A credit line at the above amount appears beyond SC’s capacities, while a credit line up to USD 80,000 is recommended.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.37
UK Pound	1	Rs.73.53
Euro	1	Rs.64.36

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.