MIRA INFORM REPORT

Report Date :

03.12.2011

IDENTIFICATION DETAILS

Name :	CHANG CHUN CHEMICAL (ZHANGZHOU) CO., LTD.
Registered Office :	Baosheng Road, Longchi Development Zone, Zhangzhou, Fujian Province, 363107 Pr
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	09.07.2003
Com. Reg. No.:	350600400005739
Legal Form :	Wholly Foreign Owned Enterprise
Line of Business :	Manufacturing and selling engineering plastics and plastic alloy.
No. of Employees :	285

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 3,000,000
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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
China	A2	A2

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

Company name and address

CHANG CHUN CHEMICAL (ZHANGZHOU) CO., LTD.

BAOSHENG ROAD, LONGCHI DEVELOPMENT ZONE, ZHANGZHOU,

FUJIAN PROVINCE, 363107 PR CHINA

TEL: 86 (0) 596-6269085 FAX: 86 (0) 596-6269688

EXECUTIVE SUMMARY

INCORPORATION DATE : JUL. 9, 2003

REGISTRATION NO. : 350600400005739

REGISTERED LEGAL FORM : WHOLLY FOREIGN OWNED ENTERPRISE

CHIEF EXECUTIVE : MR. ZHENG ZHENG (CHAIRMAN)

STAFF STRENGTH : 285

REGISTERED CAPITAL : USD 66,000,000

BUSINESS LINE : manufacturing

TURNOVER : CNY 744,420,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 404,490,000 (AS OF DEC. 31, 2010)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO usd 3,000,000

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : fairly GOOD

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.35 = 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 Jul. 9, 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 engaged in engineering plastics and plastic alloy, printed circuits CCL, polybutylene terephthalate (PBT) production and processing (excluding dangerous chemicals); engaged in the above products, semi-finished products and similar products wholesale; agents of the company to operate within the scope of the “processing with imported materials, processing with imported samples, assembling with imported parts, and compensation trade in agreement” business.

SC is mainly engaged in manufacturing and selling engineering plastics and plastic alloy.

Mr. Zheng Zheng is now acting as chairman of SC.

SC is known to have approx. 285 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the development zone of Zhangzhou. Detailed premise information is not available.

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

No significant events or changes were found during our checks with local AIC.

MAIN SHAREHOLDERS:

Name % of Shareholding

(Taiwan) Chang Chun Plastics Co., Ltd. 100

Add: 301 Songkiang Road, 7th Floor, Taipei 104 Taiwan

Tel: 886-2-2503-8131, 2500-1800

Fax: 886-2-2503-3378, 2501-8018

l Chairman:

Mr. Mr. Zheng Zheng , Taiwanese, born in 1960, with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

Now Working in SC as chairman.

l General Manager:

Mr. Yi Ming , Taiwanese, in his 50’s with university education. He is currently responsible for the daily management of SC.

Working Experience(s):

Now Working in SC as general manager.

SC is mainly engaged in manufacturing and selling engineering plastics and plastic alloy.

SC’s products mainly include: engineering plastics and plastic alloy.

SC sources its materials 70% from domestic market and 30% from the overseas market, mainly Europe. SC sells 30% of its products in domestic market, and 70% to overseas market, mainly USA, Europe and Southeast Asian market.

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

Note: SC’s management declined to release its main clients and suppliers.

Related companies from the website http://www.ccp.com.tw

Chang Chun Petrochemical Co., Ltd.

Tai Hong Circuit Ind. Co., Ltd.

Dairen Chemical Corporation

Chang Chiang Chemical Co., Ltd.

Tsu-Kong Co., Ltd.

Triplex Chemical Corporation

Ji Lin Chemical Co., Ltd.

Polyplastics Taiwan Co., Ltd.

Sumitomo Bakelite (Taiwan) Corporation Limited

PT. Chang Chun DPN Chemical Industry

Guangdong Shen Xing Chemical Ltd. Co.

TOK Taiwan Co., Ltd.

RCCT Technology Co., Ltd.

Chang Chun Japan Co., Ltd.

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.

Bank of China

AC#851008231308

Relationship: Normal.

Balance Sheet

Unit: CNY’000	as of Dec. 31, 2009	as of Dec. 31, 2010
Cash & bank	51,570	107,120
Inventory	67,670	98,790
Accounts receivable	90,690	117,530
Other Accounts receivable	2,080	1,160
Advances to suppliers	3,320	2,400
Other current assets	73,930	61,220
	------------------	------------------
Current assets	289,260	388,220
Fixed assets net value	301,040	274,440
Projects under construction	2,170	42,450
Long term investment	0	0
Other assets	10,350	9,940
	------------------	------------------
Total assets	602,820	715,050
	=============	=============
Short loans	0	13,240
Bills payable	19,510	17,730
Accounts payable	70,340	131,070
Other Accounts payable	1,360	2,600
Advances from clients	3,490	8,780
Tax payable	-610	-5,080
Other current liabilities	5,680	9,770
	------------------	------------------
Current liabilities	99,770	178,110
Long term liabilities	136,560	132,450
	------------------	------------------
Total liabilities	236,330	310,560
Equities	366,490	404,490
	------------------	------------------
Total liabilities & equities	602,820	715,050
	=============	=============

Income Statement

Unit: CNY’000	as of Dec. 31, 2010
Turnover	744,420
Cost of goods sold	681,470
Sales expense	24,800
Management expense	2,440
Finance expense	-2,440
Profit before tax	40,840
Less: profit tax	2,310
Profits	38,530

Important Ratios

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

	As of Dec. 31, 2009	As of Dec. 31, 2010
*Current ratio	2.90	2.18
*Quick ratio	2.22	1.63
*Liabilities to assets	0.39	0.43
*Net profit margin (%)	/	5.18
*Return on total assets (%)	/	5.39
*Inventory /Turnover ×365	/	48 days
*Accounts receivable/Turnover ×365	/	58 days
*Turnover/Total assets	/	1.04
* Cost of goods sold/Turnover	/	0.92

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 fairly high in 2010, comparing with its turnover.

LIQUIDITY: FAIRLY GOOD

l The current ratio of SC is maintained in a fairly good level.

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

l The inventory of SC is average in both years.

l The accounts receivable of SC is average in both years.

l The short-term loan of SC appears average in 2010.

l SC’s turnover is in an average level in 2010, comparing with the size of its total assets.

LEVERAGE: FAIRLY GOOD

l The debt ratio of SC is low in both years.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly Good.

SC is considered medium-sized in its line with fairly good financial conditions. A credit line up to USD 3,000,000 would appear to be within SC’s capacities.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.35
UK Pound	1	Rs.80.50
Euro	1	Rs.69.14

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.