MIRA INFORM REPORT

Report Date :

29.08.2011

IDENTIFICATION DETAILS

Name :	CMA RECYCLING AUSTRALIA PTY LIMITED
Formerly Known As :	CMA METALS PTY LIMITED
Registered Office :	Level 5, 160 Sussex Street Sydney New South Wales 2000
Country :	Australia
Financials (as on) :	31.12.2010
Date of Incorporation :	15.01.1986
Com. Reg. No.:	Number: 003047210
Legal Form :	Australian Proprietary Company
Line of Business :	Recycling services provider

RATING & COMMENTS

MIRA’s Rating :

B

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

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)
Australia	A1	A1

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

IDENTIFICATION DETAILS

Verified Address

Subject name : CMA RECYCLING AUSTRALIA PTY LIMITED

Business address : Level 5, 160 Sussex Street

Town : Sydney

Province : New South Wales

Zip/postal code : 2000

Country : Australia

Tel : +61 2 92003500

Fax : +61 2 92003501

Website : www.cmacorp.net

Registered address : Level 5, 160 Sussex Street

Town : Sydney

Province : New South Wales

Zip/postal code : 2000

Country : Australia

Postal address : P.O. Box 1256

Queen Victoria Building

Town : Sydney

Province : New South Wales

Zip/postal code : 1230

_{Country : Australia}

SUMMARY DETAILS

Executive Summary

Date founded or registered : 15/01/1986

Legal form : Australian Proprietary Company

Chief executive : Peter Andrew Lancken

Issued & paid up capital : AUD 1,000

Sales turnover : AUD 348,663,000 (Group Consolidated 12 months, 30/06/2010)

Net income : AUD -67,264,000 (Group Consolidated 12 months, 30/06/2010)

Total fixed assets : AUD 335,349,000 (Group Consolidated 12 months, 30/06/2010)

Line of business : Recycling services provider.

_{Staff employed : 450 (Group)}

CREDIT RISK OPINION

Company Analysis

Country risk : Country risk is minimal

Operation trend : Operational trend is declining

Management experience : Management is modestly experienced

Financial performance : Group financial performance is deteriorating

Organisation structure : Organisational structure is acceptable

Detrimental : No detrimental records found

Payment history : No payment delays noted

Credit amount suggestion : Fully secured terms.

Credit amount asked : Not described.

_{Comments : It is advisable to conduct all business dealing on prepayment of L/C.}

_{The group} as a whole is facing huge losses therefore the Subject's operation will also be affected. The Equity balance of the group is very poor and the stability of the group is dismal. The group was tremendously affected by the global financial crisis.

STATUTORY DETAILS

Registry Data

Registration date : 15/01/1986

Legal form : Australian Proprietary Company

Registration no Australian Company Number: 003047210

Registered authority : Australian Securities & Investments Commission

Fiscal/ Tax no : Australian Business Number: 74003047210

Registry status : Live/Active

Previous name : The Subject was established under the name KITCOR PTY LTD on 15-01-1986 and changed its name to T & T METAL TRADING PTY LTD on 10 May 2000. T

& T METAL TRADING PTY LTD then changed its name to CMA METALS PTY LTD on 03 May 2006. CMA METALS PTY LTD then changed its name to CMA METALS PTY LIMITED on 19 May 2006 and once again changed its name to CMA RECYCLING AUSTRALIA PTY LIMITED on 14 Dec 2007. CMA RECYCLING AUSTRALIA PTY LIMITED then adopted to the current style on 03 Jun 2009.

_{Change of legal form : None reported.}

MANAGEMENT / DIRECTORS

Key Management

Name : Peter Andrew Lancken

Designation : Chief Executive Officer

Name : Trevor Richard Schmitt

Designation : Director

Name : Tong Hong Chung

_{Designation : Director}

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

Appointments

Name : Tong Hong Chung Designation : Director Appointment date : 22/05/06

Address : 50 Murray Street

Pyrmont, New South Wales 2009

Australia

Biography : Birth details: Born on 25-07-1953 in Tai Chung, Taiwan.

Mr. Tong Hong Chung (Joseph) is Executive Director of CMA Corporation Limited since March 11, 2005. Mr. Chung was founding shareholder of the T & T Metal Group, has over 25 years’ experience in the recycling and demolition industry and holds a Bachelor of Arts degree. He has knowledge in project management and has managed a number of high value contracts with Australian companies. Mr. Chung also has a number of years' experience in exporting scrap metal from ports in Australia to clients in South East and North East Asia.

Name : Trevor Richard Schmitt Designation : Director and Company Secretary Appointment date: 12/05/08

Address : 14 Barton Avenue

Haberfield, New South Wales 2045

Australia

Biography : Birth details: Born on 21-03-1957 in Capetown, South Africa.

Mr. Trevor Schmitt is Chief Financial Officer, Company Secretary and

Executive Director of CMA Corporation Limited since August 10,

2010. Mr. Schmitt is qualified Chartered Accountant, as well as being Member of Financial Services Institute of Australia. He has held a number of senior management positions at a number of ASX listed entities over the last twenty years. Most recently, as Chief Operating Officer for Rinker Group Limited for the company's Concrete and China division. Prior to those responsibilities, he was Chief Financial Officer for the company's Readymix business division. He has also held a number of senior financial roles in Pioneer International Limited.

Name : Peter Andrew Lancken

Designation : Director

Appointment date : 07/03/11

Address : 97 Foreshore Drive

Salamander Bay New South Wales 2317

Australia

Biography : Birth details: Born on 09-01-1955 in Sydney, New South Wales.

Mr. Peter Lancken serves as Interim Chief Executive Officer of CMA Corporation Ltd on January 24, 2011. He was Interim Managing Director of the Company from May 24, 2010 to August 10, 2010. He was appointed Deputy Chairman and became a Non-Executive Director of the Company in August 10, 2010. He was Managing Director of Kennards Hire from 1994 until early 2009. He also worked in various roles at UK-listed engineering and technology group GKN for 18 years, most recently as Managing Director of GKN Australia.

Staff employed : 450 (Group)

Key Advisors

Auditors : DELOITTE TOUCHE TOHMATSU Grosvenor Place

225 George Street

Sydney NSW 2000

PO Box N250 Grosvenor Place

Sydney NSW 1220

_Australia

SHARE CAPITAL

Composition

Authorized Capital : AUD 1,000

No of shares : 1,000 Ordinary Shares

Share par value : AUD 100

Issued capital : AUD 1,000

_{Paid up capital : AUD 1,000}

OWNERSHIP / SHAREHOLDERS

How listed : Full List

Composition

Shareholder name : CMA CORPORATION LIMITED

Address : Level 5, 160 Sussex Street

Sydney, New South Wales, 2000

Australia

No. of shares : 1,000 Ordinary Shares

_{% of shares : 100%}

RELATED COMPANIES & CORPORATE AFFILIATIONS

Structure

Name : CMA CORPORATION LIMITED

Affiliation type : Parent Company

Address : Level 5, 160 Sussex Street

Sydney, New South Wales, 2000

Australia

Comments : The Company is listed on the Australian Stock Exchange.

Name : CMA CONTRACTING PTY LIMITED

Affiliation type : Sister Company

Address : Level 5, 160 Sussex Street

Sydney, New South Wales, 2000

Australia

Name : T & T METAL & ASBESTOS SERVICES PTY LIMITED

Affiliation type : Sister Company

Address : Level 5, 160 Sussex Street

_{Sydney, New South Wales, 2000}

Australia

Name : CMA RECYCLING PTY LIMITED

Affiliation type : Sister Company

Address : Level 5, 160 Sussex Street

Sydney, New South Wales, 2000

Australia

Name : CMA RECYCLING VICTORIA PTY LIMITED

Affiliation type : Sister Company

Address : Level 5, 160 Sussex Street

Sydney, New South Wales, 2000

Australia

Name : ADVANCED RECYCLING AUSTRALASIA PTY LIMITED

Affiliation type : Sister Company

Address : Level 5, 160 Sussex Street

Sydney, New South Wales, 2000

Australia

Name : CMA RECYCLING LIMITED

Affiliation type : Sister Company

Address : 273A Church Street

Onehunga, Auckland 1061

New Zealand

Name : SCRAP METAL RECYCLERS (WAIKATO) LIMITED

Affiliation type : Sister Company

Address : 273A Church Street

Onehunga, Auckland 1061

New Zealand

Name : CMA USA CORPORATION, LTD

Affiliation type : Sister Company

Address : 415E 151 Street East

Chicago, IN 46312

United States

Name : PURATA KEUNTUNGAN SDN BHD

Affiliation type : Sister Company

Address : 61-02 Medan Cahaya Jalan Tun Abdul Razak Malaysia

Related companies and corporate affiliations comments : Other companies of the CMA Group should be considered affiliates of the Subject. We are unable to list all the associated companies within the group therefore we have enclosed an attachment to this report.

BANK & MORTGAGES

Bank Details

Name of bank : ANZ Banking Group Limited

Address : Australia

Account details : Current Account

Name of bank : Commonwealth Bank of Australia

Address : Australia

Account details : Current Account

Comments : It is generally not the policy of local banks to provide credit status information to non-related parties, however interested parties would be advised to consult first with the Subject if banker's references are required.

_Mortgages : ASIC Charge Number: 518445

Date Registered: 06-12-1995

Charge type: Both Fixed & Floating

Date Created: 24-11-1995

Chargee Name: COMMONWEALTH BANK OF AUSTRALIA

ASIC Charge Number: 883876

Date Registered: 16-08-2002

Charge type: Both Fixed & Floating

Date Created: 04-07-2002

Chargee Name: COMMONWEALTH BANK OF AUSTRALIA

ASIC Charge Number: 1367683

Date Registered: 18-10-2006

Charge type: Fixed

Date Created: 29-09-2006

Chargee Name: CBFC LIMITED

ASIC Charge Number: 1369963

Date Registered: 24-10-2006

Charge type: Fixed

Date Created: 29-09-2006

Chargee Name: CBFC LIMITED

ASIC Charge Number: 1382131

Date Registered: 24-11-2006

Charge type: Fixed

Date Created: 20-10-2006

Chargee Name: WESTPAC BANKING CORPORATION

ASIC Charge Number: 1407042

Date Registered: 23-01-2007

Charge type: Fixed

Date Created: 05-01-2007

_{Chargee Name: WESTPAC BANKING CORPORATION}

ASIC Charge Number: 1615957

Date Registered: 04-04-2008

Charge type: Both Fixed & Floating

Date Created: 19-03-2008

Chargee Name: ANZ FIDUCIARY SERVICES PTY LTD

ASIC Charge Number: 1615958

Date Registered: 04-04-2008

Charge type: Both Fixed & Floating

Date Created: 19-03-2008

Chargee Name: ANZ FIDUCIARY SERVICES PTY LTD

Legal Fillings

Bankruptcy fillings : None reported.

Court judgements : None reported.

Tax liens : None reported.

Others : None reported.

FINANCIAL DATA

Description

Source of financial statement : Public Record Sources

Financial statement date : 30/06/10

Type of accounts : Full audited

Currency : Australia Dollar (AUD)

Exchange rate : 1 AUD = USD 0.95 as of 26-08-2011

_{Summarized Financial Information}

Consolidation type :	Group Consolidated	Group Consolidated	Group Consolidated
Currency :	Australia Dollar (AUD)	Australia Dollar (AUD)	Australia Dollar (AUD)
Denomination :	(x1) One	(x1) One	(x1) One
Date of financial year end :	31/12/10	30/06/10	30/06/09
Length of accounts :	6 months	12 months	12 months
Sale turnover / Income :	196,738,000	348,663,000	378,024,000
Profit before tax :	-125,971,000	-73,191,000	-94,153,000
Net income :	-131,869,000	-67,264,000	-68,694,000
Non current assets :	145,100,000	247,923,000	304,806,000
Current assets :	59,540,000	87,426,000	85,956,000
Inventories :	20,330,000	43,594,000	40,530,000
Total assets :	204,640,000	335,349,000	390,762,000
Current liabilities :	179,798,000	87,238,000	97,646,000
Non current liabilities :	24,693,000	116,093,000	111,487,000

^{Total liabilities :} 204,491,000 203,331,000 209,133,000

^{Share equity :} 149,000 132,018,000 181,629,000

^{Retained earnings :} -246,832,000 -120,861,000 -48,470,000

Comments : The Subject is classified as a small proprietary company by the Australian Securities & Investments Commission hence is not required to disclose their financial statement.

A proprietary company is defined as small for a financial year if it satisfies at least two of the following:

- The consolidated revenue for the financial year of the company and any entities it controls is less than $25 million;

-The value of the consolidated gross assets at the end of the financial year of the company and any entities it controls is less than $12.5 million, and

-The company and any entities it controls have fewer than 50 employees at the end of the financial year.

The Subject does not publish non-consolidated financial statement as the

Subject’s Parent Company files group consolidated financials.

The group’s consolidated financial information above relates to the Subject’s Parent / Ultimate Holding Company CMA Corporation Limited and all its subsidiaries which include the Subject.

OPERATION DETAILS

Main activities : The Subject main activities are recycling of predominantly secondary ferrous and non-ferrous metal products

The Subject is part of CMA Corporation Limited which is an Australia based company. The principal activities of the Company were metals recycling, and demolition and remediation contract services. The Company’s

segment includes metals, meretec and ecocycle. The Company’s geographic segment includes Pacific, Asia and the United States. Pacific includes Australia, New Zealand and Papua New Guinea. Asia includes Singapore and Malaysia. The Company’s activities are trading, processing and recycling of secondary ferrous and non-ferrous metal products. Its operations utilize a variety of recycling technologies to enable it to provide customised solutions. A network of over 20 modern recycling facilities in Australia, Asia and North America, and a workforce of more than 450 staff enable the Company to recycle a range of materials into value-added products.

_Purchases

Local : Yes

International : Worldwide

Sales

Local : Yes

International : Worldwide

Property & Assets

Premises : The Subject operates from group headquarters located at the verified heading address consisting of and administrative office.

Branches : In addition the Subject operates from branch offices located at:.

CMA Recycling - St Marys

42-46 Charles St

St Marys NSW 2760

Tel: 02 9833 3855

Fax: 02 9833 2966

CMA Recycling - Revesby

36-67 Violet Street

Revesby NSW 2212

Tel: 02 9771 1122

Fax: 02 9771 6176

CMA Recycling - Newcastle

509 Tomago Road

Tomago NSW 2322

_{Tel: 02 4964 9833}

Fax: 02 4964 9855

CMA Recycling - Tamworth

54-62 Goddard Lane

Tamworth NSW 2340

Postal Address: PO Box 7157 NEMSC Tamworth NSW 2348

Tel: 02 6760 7800

Fax: 02 6760 7900

Ringwood

71-85 Heatherdale Road

Ringwood VIC 3134

Tel: 03 9873 2066

Fax: 03 9873 2527

Pakenham

18 Drovers Place

Pakenham VIC 3810

Tel: 03 5941 6677

Fax: 03 5941 7755

Campbellfield

5-11 Reo Crescent

Campbellfield VIC 3061

Tel: 03 9308 9415

Fax: 03 9308 9416

Challenge Metals

242 Canterbury Road

Bayswater VIC 3134

Tel: 03 9720 4022

Fax: 03 9729 1255

Wingfield

16-20 Johansson Rd

Wingfield SA 5013

Tel: 08 8262 4558

Fax: 08 8262 4202

Eagle Farm

1359 Kingsford Smith Drive

West Pinkenba QLD 4008

Tel: 07 3260 1796

Fax: 07 3260 1296

Perth

69 Inspiration Drive

Wangara WA 6065

Tel: 08 9302 6887

Fax: 08 9302 6920

Port Hedland

Lot 2508, Moorambine Street

Wedgefield WA 6721

_{Tel: 08 9172 3124}

Fax: 08 9172 3869

Darwin

Lot 2148 & 2149, McKinnon Road

Berrimah NT 0828

Tel: 08 8932 2773

Fax: 08 8932 4123

Rocherlea

256 Georgetown Rd

Rocherlea TAS 7248

Tel: 03 6326 3177

Fax: 03 6326 6477

CMA Recycling - Burnie

2 Ready St

Burnie TAS 7320

Tel: 03 6430 7000

_{Fax: 03 6430 7001}

SUMMARIZED COUNTRY RISK

Gross Domestic Products (GDP) & Economic

Overview Central bank : Reserve Bank of Australia

Reserve of foreign exchange & gold : US$ 41.385 billion

Gross domestic product - GDP : US$ 1.235 trillion

GPP (Purchasing power parity) : 918.529 billion of International dollars

GDP per capita - current prices : US$ 55,590

GDP - composition by sector : agriculture: 4.1% industry: 26% services: 70%

Inflation : 2008: 4.4%

2009: 1.8%

2010: 2.8%

Unemployment rate : 2008: 4.2%

2009: 5.6%

_{2010: 5.2%}

Public debt

(General Government gross debt as a % GDP): 2008: 11.6%

2009: 17.6%

_{2010: 22.3%}

Government bond ratings : Standard & Poor's: AAA/Stable/A-1+ Moody's rating: Aaa

_{Moody's outlook: STA}

Market value of publicly traded shares: US$1.258 trillion

Largest companies in the country : Commonwealth Bank (Banking), BHP Billiton (Materials), Westpac Banking Group (Banking), Rio Tinto (Materials), National Australia Bank (Banking), ANZ Banking (Banking), Telstra (Telecommunications Services)

Trade & Competitiveness Overview

Total exports : US$210.7 billion

Exports commodities : coal, iron ore, gold, meat, wool, alumina, wheat

Total imports : US$187.2 billion

Imports commodities : machinery and transport equipment, computers and office machines, telecommunication equipment and parts; crude oil and petroleum products

Export - major partners : Japan 18.9%, China 14.2%, South Korea 8%, US 6%, NZ 5.6%, India

5.5%, UK 4.2%

Import - major partners : China 15.5%, US 12.8%, Japan 9.6%, Singapore 5.6%, Germany 5.2%, UK 4.3%, Thailand 4.2%

FDI Inflows : 2007: US$45,477 million

2008: US$46,722 million

2009: US$22,572 million

_{FDI Outflows : 2007: US$16,822 million}

2008: US$32,819 million

2009: US$18,426 million

Best countries for doing business: 10 out of 183 countries

Global competitiveness ranking : 16 (ranking by country on a basis of 133, the first is the best)

Country and Population Overview

Total population : 22.23 million

Total area : 7,692,024 km2

Capital : Canberra

_{Currency : Australian dollars (AUD)}

Internet users as % of total population: 74.00%

PAYMENT HISTORY

Purchase Term

Local : Cash against document, Prepayment, Credit up to 90 days

International : L/C, Telegraphic transfer, Credit up to 90 days

Sales Term

Local : Cash against document, Prepayment, Credit up to 90 days

International : L/C, Telegraphic transfer, Credit up to 90 days

Trade Reference/ Payment

Behaviour

Comments : As local and international trade references were not supplied, the Subject's payment track record history cannot be appropriately determined but based on our research, payments are believed to be met without delay.

Investigation Note

Sources : Interviews and material provided by the Subject

: Other official and local business sources

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.46.05
UK Pound	1	Rs.75.19
Euro	1	Rs.66.47

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.