MIRA INFORM REPORT

Report Date :

12.01.2011

IDENTIFICATION DETAILS

Name :	SUNSHINE (TIANJIN) PRODUCE LIMITED
Registered Office :	No. 18, Weiqi Road, Micro Electronics Industrial Park, Jingang Highway, Xiqing Economic & Technological Development Zone, Tianjin, 300385 Pr
Country :	China
Financials (as on) :	31.12.2009
Date of Incorporation :	19.08.2003
Com. Reg. No.:	120000400068073
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Producing, Processing and Selling Agricultural and Sideline Products

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 400,000
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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
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

Sunshine (tianjin) produce Limited

NO. 18, WEIQI ROAD, MICRO ELECTRONICS INDUSTRIAL PARK, JINGANG HIGHWAY, XIQING ECoNOMIC & TECHNOLOGICAL DEVELOPMENT ZONE,

TIANJIN, 300385 PR CHINA

TEL: 86 (0) 22-83970882/83970887 FAX: 86 (0) 22-23885599

EXECUTIVE SUMMARY

INCORPORATION DATE : AUGUST 19, 2003

REGISTRATION NO. : 120000400068073

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED enterprise

CHIEF EXECUTIVE : MR. CHEN LIYUAN (CHAIRMAN)

STAFF STRENGTH : 70

REGISTERED CAPITAL : USD 5,850,000

BUSINESS LINE : MANUFACTURING, processing and trading

TURNOVER : CNY 190,750,000 (AS OF DEC. 31, 2009)

EQUITIES : CNY 59,940,000 (AS OF DEC. 31, 2009)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 400,000 (periodical review)

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.63 = 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

Note: SC is also known as Sunshine Produce Limited.

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 Aug. 19, 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 manufacturing, processing and selling agricultural and sideline products; providing technical consulting services; Chinese herbal medicine cleansing (excluding the items prohibited or limited by the country).

SC is mainly engaged in producing, processing and selling agricultural and sideline products.

Mr. Chen Liyuan has been legal representative and chairman of SC since 2003.

SC is known to have approx. 70 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in economic & technological development zone of Tianjin. Our checks reveal that SC owns the total premise about 23,000 square meters.

http://www.sunshineproduce.com.cn/ The design is professional and the content is well organized. At present the web site is in English version.

E-mail: info@sunshineproduce.com.cn

No significant events or changes were found during our checks with the local Administration for Industry and Commerce.

MAIN SHAREHOLDERS:

Name % of Shareholding

Sunshine Deutschland Handelsgesellschaft mbH (Germany) 100

l Legal representative, chairman and general manager:

Mr. Chen Liyuan, in his 40’s with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

From 2003 to present Working in SC as legal representative, chairman and general manager

SC is mainly engaged in producing, processing and selling agricultural and sideline products.

SC’s products mainly include pumpkin seed kernels, sunflower seed kernels, seeds, beans, organic product, etc.

SC sources its materials 95% from domestic market, and 5% from overseas market, mainly Europe. SC sells 10% of its products in domestic market, and 90% to overseas market, mainly U.S.A., Great Britain, Germany, and Hungary.

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

*Major Customer:

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

Changchun Taoli Food Co., Ltd.

SC is not known to have any subsidiary at present.

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.

Agricultural Development Bank of China Tianjin Xiqing Sub-branch

AC#：20312012500100000145631

Relationship: Normal.

Balance Sheet (as of Dec. 31, 2009)

Unit: CNY’000

Cash & bank	8,630
Inventory	30,050
Accounts receivable	24,180
Advances to suppliers	19,120
Other receivables	6,080
Other current assets	1,200
	------------------
Current assets	89,260
Fixed assets net value	23,850
Projects under construction	27,090
Long term investment	0
Intangible assets	960
Other assets	20
	------------------
Total assets	141,180
	=============
Short loans	40,000
Accounts payable	21,430
Advances from clients	10,400
Taxes payable	-1,810
Other payable	11,210
Other current liabilities	10
	------------------
Current liabilities	81,240
Long term liabilities	0
	------------------
Total liabilities	81,240
Equities	59,940
	------------------
Total liabilities & equities	141,180
	=============

Income Statement (as of Dec. 31, 2009)

Unit: CNY’000

Turnover	190,750
Cost of goods sold	166,800
Sales expense	5,800
Management expense	4,840
Finance expense	10,120
Subsidy income	150
Profit before tax	3,790
Less: profit tax	480
Profits	3,310

Important Ratios

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

	as of Dec. 31, 2009
*Current ratio	1.10
*Quick ratio	0.73
*Liabilities to assets	0.58
*Net profit margin (%)	1.74
*Return on total assets (%)	2.34
*Inventory /Turnover ×365	58 days
*Accounts receivable/Turnover ×365	47 days
*Turnover/Total assets	1.35
* Cost of goods sold/Turnover	0.87

PROFITABILITY: AVERAGE

l The turnover of SC appears fairly good in its line.

l SC’s net profit margin is average.

l SC’s return on total assets is average.

l SC’s cost of goods sold is average, comparing with its turnover.

LIQUIDITY: FAIR

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

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

l The inventory of SC appears fairly large.

l The accounts receivable of SC appears average.

l SC’s short-term loan of SC appears fairly large.

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

LEVERAGE: AVERAGE

l The debt ratio of SC is average.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly stable.

SC is considered small-sized in its line with fairly stable financial conditions. The large amount of inventory and short-term loan could be a threat to SC’s financial condition. A credit line up to USD 400,000 appears to be within SC’s capacities upon a periodical review basis.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.32
UK Pound	1	Rs.70.54
Euro	1	Rs.58.70

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.