MIRA INFORM REPORT

Report Date :

07.12.2011

IDENTIFICATION DETAILS

Name :	NINGBO ANCHOR AUTO PARTS CO., LTD
Formerly Known As :	NINGBO JIANGDONG ANCHOR AUTO PARTS CO., LTD.
Registered Office :	11-5, No. 289 Jiang Nan Road, Jiangdong District, Ningbo City
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	11.10.2007
Com. Reg. No.:	330204000007967
Legal Form :	Limited Liabilities Company
Line of Business :	Wholesale of auto parts and accessories
No. of Employees :	10 Persons

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Poor
Payment Behaviour :	Unknown
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^th, 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 & address

NINGBO ANCHOR AUTO PARTS CO., LTD
11F-5, Mingzhou Business Mansion, No. 289 Jiang Nan Road, Jiangdong District, Ningbo City, Zhejiang Province
315040
Tel :	86 574 87392876 / 87398607
Fax:	86 574 87393848
E-mail:	--
Website:	http://anchor.en.alibaba.com

Currency in this report is Chinese Yuan unless otherwise stated.

Exchange Rate: 1 USD=6.34 Chinese Yuan

"--"in this report indicates "unavailable" due to insufficient information or "no comments"

EXECUTIVE SUMMARY

DATE OF establishment	oct.11^th, 2007
Aic Registration No.	330204000007967
REGISTERED LEGAL FORM	limited liabilities company
REGISTERED CAPITAL	1,000,000.00
main BUSINESS	wholesale of auto parts and accessories
SIC Code (China)	6372 wholesale of auto and motorcycle parts and accessories
employees	10
import and export permits	yes
business scale	Small
operation trend	Average
TURNOVER	11,945,000.00 (As of Dec.31^st, 2010)
net profit	-140,000.00 (As of Dec.31^st, 2010)
total assets	3,155,000.00 (As of Dec.31^st, 2010)
net worth	-586,000.00 (As of Dec.31^st, 2010)
base Credie limit	0
EXCHANGE RATE	1 Usd=6.34CNY (dec.5^th, 2011)

REGISTRATION

Name	NINGBO ANCHOR AUTO PARTS CO., LTD
AIC Registration Number	330204000007967
Registered address	11-5, No. 289 Jiang Nan Road, Jiangdong District, Ningbo City
Operation address	11F-5, Mingzhou Business Mansion, No. 289 Jiang Nan Road, Jiangdong District, Ningbo City, Zhejiang Province
Date of Establishment	Oct.11^th, 2007
Registry	Administration Bureau of Industry and Commerce – Jiangdong District, Ningbo
Legal Representative	Liang Dingxiong (梁定雄)
Registered Legal Form	limited liabilities company
Registered Capital	1,000,000.00
Operating Duration	From Oct.11^th, 2007 to Oct.10^th, 2017
Changes in Registration	1. July.6^th, 2010 Subject’s name was changed to the current name from NINGBO JIANGDONG ANCHOR AUTO PARTS CO., LTD. 2. Nov.8^th, 2010 Subject’s registered capital was increased from 500,000 to 1,000,000 CNY.

Limited liabilities co.

This form of business in PR China is defined as a legal person. Its registered capital is contributed jointly by at least two shareholders and no more than fifty. Shareholders bear limited liability to the extent of shareholding, and the co. is liable for its debts only to extent of its total assets. The characteristics of this form of co. are as follows:

Upon the establishment of the co., an investment certificate is issued to the each of shareholders.

The board of directors is comprised of three to thirteen members.

The minimum registered capital for a co. is listed as follows:

-manufacturing co. : RMB 500,000.00

-trading &wholesaling co. : RMB 500,000.00

-retailing co. : RMB 300,000.00

-consultancy & service co. : RMB 100,000.00

Shareholders may take their capital contributions in cash or by means of tangible assets or intangible assets such as industrial property and non-patented technology.

Cash contributed by all shareholders must account for at least 50% of the registered capital while contribution by intangible assets must not exceed 20% of the registered capital.

Existing shareholders have pre-exemption right to purchase shares of the co. offered for sale by the other shareholders and to subscribe for the newly increased registered capital of the co.

REGISTRATION INFO: AVAILABLE

FINANCIAL REPORTS: AVAILABLE

SHAREHOLDERS AND SHARES

As indicated in the following table:

Shareholder	Capital Subscribed	Percentage
Liang Dingxiong	500,000.00	50%
Cao Huijuan	500,000.00	50%
Total	1,000,000.00	100%

Shareholder	Way of Investment	Paid-up Percentage
Liang Dingxiong	--	100%
Cao Huijuan	--	100%

Background of major shareholder

Name	Liang Dingxiong
Gender	Male
Date of birth	Jul.21^st, 1972
National ID No.	512922197207218236
Name	Cao Huijuan
Gender	Female
Date of birth	Apr.17^th, 1974
National ID No.	330126197404173627

AFFILIATE(S)

No branches, subsidiaries or other affiliates of subject are found after checking.

MANAGEMENT

Name	Liang Dingxiong
Gender	Male
Title	Executive director; manager
Date of birth	July.21^st, 1972
National ID No.	512922197207218236
Name	Cao Huijuan
Gender	Female
Title	Supervisor
Date of birth	Apr.17^th, 1974
National ID No.	330126197404173627

BANKERS INFORMATION

Bank name	Ningbo Bank – Ling Qiao Sub-branch (Ningbo)
Account No. (CNY)	32010122000091819
Source of information	Government channel

OFFICE FACILITIES

Geographic Location	11F-5, Mingzhou Business Mansion, No. 289 Jiang Nan Road, Jiangdong District, Ningbo City, Zhejiang Province
Area	500 square meters
Environment and traffic	Good
Property Ownership	Rented

TRADEMARKS

Total trademarks	2
Registration No.	9663349
Registration date	Jun.30^th, 2011
Image
Registration No.	9663322
Registration date	Jun.30^th, 2011
Image

PATENTS

After checking with the State Intellectual Office, no patents of SC were found.

MAIN PRODUCTS & SERVICES

Main business	Wholesale of auto parts and accessories
Products and services	Subject mainly sells auto air conditioner accessories. Its products include A/C compressors, Condensers, Evaporators, Controlling Valves, Expansion Valves, Vacuum pumps etc.
Annual production capacity	--
Certificates	IS09001; TS16949; TUV

SALES INFORMATION

Local sales	20%
Regions	All over China
Major domestic clients	--
Payment terms	Prompt payment; on credit
Export	80%
Regions	Europe, America, Mid-east, Africa, Australia etc.
Major overseas clients	ZORAN REPAJA
Payment terms	L/C, T/T
SC’s products are mostly exported. The clients are mainly after-sales service agents. Domestically, subject provides supporting service for the automobile manufacturers.
The above information was confirmed by SC’s employee on Dec.5^th, 2011.

PURCHASE INFORMATION

Main Commodities Purchased	A/C compressors, Condensers, Evaporators, Controlling Valves, Expansion Valves etc.
Region	Local: 100%
Number of Major Suppliers	More than 5
Major suppliers	--
Main Terms of Payment	Prompt payment; on credit
SC’s products are mainly purchased from local manufacturers.
The above information was confirmed by SC’s employee on Dec.5^th, 2011.

CREDIT

Subject’s staff is cautious about its purchasing information and refused to disclose its supplier name. Hence no payment comment from the supplier can be provided in the report.

LITIGATION RECORDS

After checking with China Court organization, the local court website and other major searching websites, no litigation record related to subject company in the latest three years is found.

FINANCE

Balance Sheet (Unit: 1,000 Chinese Yuan):

	Dec. 31^st, 2009	Dec. 31^st, 2010
Current assets
Money capital	242	336
Short-term investment
Notes receivable
Net ball of Account Receivable
Payment in advance	330	1,069
Subsidy Receivable	262	1,640
Other Account Receivable
Inventory	24	110
Expenses to be deferred
Other current assets
Export rebates receivable
Total current Assets	858	3,155
Long-term investment
Long-term investment
Original value of fixed assets
Accumulated depreciation
Net fixed assets	0	0
Fixed assets depreciation reserve
Net Value of Fixed Assets	0	0
Fixed assets in liquidation
Projects being constructed
Fixed assets losses in suspense
Total fixed assets	0	0
Intangible assets and deferred assets
Intangible assets
Deferred assets
Total intangible and deferred assets	-	-
Other long-term assets
Other long-term assets
Total assets	858	3,155
Current liabilities
Short-term loans
Notes payable
Account payable	90	11
Deposit received
Other accounts payable	2,396	4,719
Wages payable
Welfare payable	21	56
Tax unpaid	-703	-1,045
Unpaid profit
Accrued expenses
L/T debt due in 1 year
Other current liabilities
Total current liabilities	1,804	3,741
L/T liabilities
L/T loans
Bonds payable
L/T account payable
Total L/T liabilities	0	0
Deferred tax
Deferred tax
Total liabilities	1,804	3,741
Owner’s interest
Paid-up capital	500	1,000
Contributed surplus
Surplus reserves
Unconfirmed investment loss
Undistributed profits	-1,446	-1,586
Minority interest
Total owner’s interest	-946	-586
Liabilities and owner’s interest	858	3,155

Income Statement (Unit: 1,000 Chinese Yuan):

	Dec. 31^st, 2009	Dec. 31^st, 2010
Main business income	8,541	11,945
Main business cost	8,215	11,050
Tax and associate charge
Main business profit	326	895
Other business profit
Operation expenses	90	267
- management expenses	703	880
Financial expenses	31	-112
Operation profit	-498	-140
Investment profit
Subsidy income	8
Non business income
- non business expenses
Prior year income adjustment
Total profit	-490	-140
- income tax	0	0
Minority stock holder’s interest
Net profit	-490	-140

Important Ratios:

	2009	2010
Return on net assets (%)	51.80	23.89
Return on total assets (%)	-57.11	-4.44
Net profit margin (%)	-5.74	-1.17
Turnover of total assets	9.95	3.79
Turnover of current assets	9.95	3.79
Turnover of account receivable
Inventory turnover	342.29	100.45
Asset liability ratio (%)	210.26	118.57
Current ratio	0.48	0.84
Quick ratio	0.46	0.81

Major Financial Information (Unit: 1,000 Chinese Yuan):

	2009	2010
Main business income	8,541	11,945
Total profit	-490	-140
Net profit	-490	-140
Total assets	858	3,155
Total liabilities	1,804	3,741
Total owner’s interest	-946	-586
Source from	government	government
Whether audited or not	Yes	Yes

Analysis of financial indicator

Long-term solvency: poor

Short-term solvency: below average

Asset security: poor

Inventory status: good

Capital turnover: acceptable

Debt recovery status: --

Profitability: poor

Return on assets (ROA): poor

Enterprise background: average

Payment records: --

Note: subject’s asset liability ratio in recent 2 years was higher than 100%. Its liability is much higher than the assets. Caution is recommended in transactions with it. Any credit transaction should be avoided.

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.