MIRA INFORM REPORT

Report Date :

07.12.2011

IDENTIFICATION DETAILS

Name :	CIMM GROUP CO., LTD.

Registered Office :	17^th Floor, Chengda Building, No. 71 Renmin Road, Zhongshan District, Dalian, Liaoning Province 116001 Pr

Country :	China

Financials (as on) :	31.12.2010

Date of Incorporation :	18.02.1998

Com. Reg. No.:	210200000113723

Legal Form :	Limited Liabilities Company

Line of Business :	International Trade

No. of Employee:	100

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 100,000
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 & address

CIMM GROUP CO., LTD.

17^th floor, CHENGDA BUILDING, NO. 71 RENMIN ROAD

ZHONGSHAN DISTRICT, DALIAN, LIAONING PROVINCE 116001 PR CHINA

TEL: 86 (0) 411-82511723/82511725/82511726/82511727/82511728/82511706

FAX: 86 (0) 411-82511722/82511721

EXECUTIVE SUMMARY

Date of Registration : FEBRUARY 18, 1998

REGISTRATION NO. : 210200000113723

LEGAL FORM : Limited liabilities company

CHIEF EXECUTIVE : MA SHUJUN (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : cny 50,875,600

staff : 100

BUSINESS CATEGORY : TRADING

Revenue : CNY 300,810,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 15,160,000 (AS OF DEC. 31, 2010)

WEBSITE : www.cimmuk.com

E-MAIL : sales@cimmuk.com

PAYMENT : AVERAGE

Recommended Credit Limit : UP TO USD 100,000

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : FAIR

OPERATIONAL TREND : ORDINARY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.40 = 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.: 210200000113723 on February 18, 1998.

SC’s Organization Code Certificate No.: 70216340-2

SC’s registered capital: cny 50,875,600

SC’s paid-in capital: cny 50,875,600

Registration Change Record:

Date	Change of Contents	Before the change	After the change
--	Registered capital	CNY 5,160,000	CNY 25,160,000
2011-4	Chinese Name	大连西姆五矿有限公司	大连西姆五矿集团有限公司
2011-4	Registration No.	2102002120636	210200000113723
2011-8	Registered capital	CNY 25,160,000	cny 50,875,600

Note: SC changed its Chinese name, but the English name remains the same.

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

Name of Shareholder (s)	% of Shareholding
Ma Shujun	51.27
Liu Fengying	16.02
Ma Bingwen	17.21
Ma Shuqin	15.50

SC’s Chief Executives:-

Position	Name
Legal Representative, Chairman, and General Manager	Ma Shujun
Director	Liu Fengying
Director	Ma Bingwen
Supervisor	Ma Shuqin

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Ma Shujun 51.27

Liu Fengying 16.02

Ma Bingwen 17.21

Ma Shuqin 15.50

MANAGEMENT

Ma Shujun, Legal Representative, Chairman and General Manager

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

Ø Gender: M

Ø Age: 40’s

Ø Qualification: University

Ø Working experience (s):

From 1998 to present, working in SC as legal representative, chairman and general manager

Director

-----------

Liu Fengying

Ma Bingwen

Supervisor

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

Ma Shuqin

BUSINESS OPERATION

SC’s registered business scope includes importing and exporting various kinds of commodities and technology, processing with imported materials, processing with imported samples, assembling with imported parts, and compensation trade in agreement; counter trade & transit trade; project investment, dispatching labor abroad in the fields of engineering.

SC is mainly engaged in international trade.

SC’s products mainly include:

Coke Oven Equipment

Sintering Equipment

Blast Furnace Equipment

Secondary Refining Equipment

Continuous Casting Equipment

Bulk material handling machinery

Electrolytic Aluminium Equipment

Earth pressure TBM (EPB)

Mining equipments

Power Equipments

Cement Equipments

Etc.

SC sources its materials 100% from domestic market, mainly Dalian. SC sells 100% of its products to overseas market, mainly Pakistan, India, Turkey, Egypt, Greece, Braze, S. Africa, and Ethiopia.

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

*Major Customer:

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

DG Global Mining Pty Ltd.

Staff & Office:

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

SC is known to have approx. 100 staff at present.

SC rents an area as its operating office of approx. 800 sq. meters at the heading address.

RELATED COMPANY

SC is known to invest in the following companies:

n China Metallurgy Engineering & Design Consortium Group

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

Date of Registration: November 29, 2005

Registration No.: 210200000289109

Legal Form: Limited Liabilities Company

Chief Executive: Yu Yan

Registered Capital: CNY 500,000

n Dalian Zhongji Metallurgy Co., Ltd.

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

Date of Registration: March 28, 2005

Registration No.: 210200000289230

Legal Form: Limited Liabilities Company

Chief Executive: Jiang Hong

Registered Capital: CNY 1,000,000

Etc.

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

Basic Bank:

Bank of China

AC# 285656297461

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2009	As of Dec. 31, 2010
Cash	28,340	32,140
Accounts receivable	14,960	30,030
Advances to suppliers	0	0
Other receivable	20,380	23,330
Inventory	12,400	32,210
Non-current assets within one year	0	0
Other current assets	10	20
	------------------	------------------
Current assets	76,090	117,730
Fixed assets	1,180	1,230
Construction in progress	0	0
Long-term investment	4,400	4,900
Deferred income tax assets	0	0
Other non-current assets	0	0
	------------------	------------------
Total assets	81,670	123,860
	=============	=============
Short-term loans	3,000	14,520
Accounts payable	56,420	53,970
Wages payable	170	50
Advances from clients	13,690	45,440
Taxes payable	-2,130	-5,360
Other payable	100	80
Other current liabilities	0	0
	------------------	------------------
Current liabilities	71,250	108,700
Non-current liabilities	0	0
	------------------	------------------
Total liabilities	71,250	108,700
Equities	10,420	15,160
	------------------	------------------
Total liabilities & equities	81,670	123,860
	=============	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2009	As of Dec. 31, 2010
Revenue	190,400	300,810
Cost of sales	169,610	281,010
Sales expense	10,730	2,920
Management expense	9,990	14,930
Finance expense	160	2,110
Profit before tax	-140	-210
Less: profit tax	0	20
Profits	-140	-230

Important Ratios

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

	As of Dec. 31, 2009	As of Dec. 31, 2010
*Current ratio	1.07	1.08
*Quick ratio	0.89	0.79
*Liabilities to assets	0.87	0.88
*Net profit margin (%)	-0.07	-0.08
*Return on total assets (%)	-0.17	-0.19
*Inventory / Revenue ×365	24 days	40 days
*Accounts receivable/ Revenue ×365	29 days	37 days
* Revenue/Total assets	2.33	2.43
* Cost of sales / Revenue	0.89	0.93

FINANCIAL COMMENTS

PROFITABILITY: FAIR

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

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

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

l SC’s cost of goods sold is fairly high, comparing with its revenue.

LIQUIDITY: AVERAGE

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

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

l The inventory of SC is maintained in an average level.

l The accounts receivable of SC is maintained in an average level.

l SC’s short-term loans are in an average level.

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: Fair.

CONCLUSIONS

SC is considered medium-sized in its line with fair financial conditions. A credit line up to USD 100,000 would appear to be within SC’s capacities.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.39
UK Pound	1	Rs.80.20
Euro	1	Rs.68.92

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.