MIRA INFORM REPORT

Report Date :

25.01.2011

IDENTIFICATION DETAILS

Name :	PHARMASTER (NINGBO) INT’L CO., LTD.
Registered Office :	12/F, South Tower, Yinzhou Chamber Of Commerce Bldg., No. 1299 Yinxian Road (East), Yinzhou District, Ningbo, Zhejiang Province, 315100 Pr
Country :	China
Financials (as on) :	31.12.2009
Date of Incorporation :	26.05.2008
Com. Reg. No.:	330212000051391
Legal Form :	Limited Liabilities Company
Line of Business :	Selling Pharmaceutical and Chemical Products, and pharmaceutical intermediates.

RATING & COMMENTS

MIRA’s Rating :

B

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

Maximum Credit Limit :	USD 20,000
Status :	Small Company
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

pharmaster (ningbo) int’l CO., LTD.

12/F, SOUTH TOWER, YINZHOU CHAMBER OF COMMERCE BLDG., NO. 1299 YINXIAN ROAD (EAST), YINZHOU DISTRICT, NINGBO,

ZHEJIANG PROVINCE, 315100 PR CHINA

TEL: 86 (0) 574-88107660 FAX: 86 (0) 574-88107676

EXECUTIVE SUMMARY

INCORPORATION DATE : MAY 26, 2008

REGISTRATION NO. : 330212000051391

REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY

CHIEF EXECUTIVE : MS. GAO GUIZHEN (CHAIRMAN)

STAFF STRENGTH : 8

REGISTERED CAPITAL : CNY 2,500,000

BUSINESS LINE : TRADING

TURNOVER : CNY 46,020,000 (AS OF DEC. 31, 2009)

EQUITIES : CNY 2,620,000 (AS OF DEC. 31, 2009)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 20,000

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.58 = 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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on May 26, 2008.

Company Status: Limited liabilities co.

This form of business in PR China is defined as a legal person. No more than fifty shareholders contribute its registered capital jointly. 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 CNY 30,000.

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 30% 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.

SC’s registered business scope includes import and export of goods and technology, excluding the goods and technology prohibited or limited by the country; selling electronic products, communications equipment, chemical materials and products, a class of medical equipment, daily necessities, textiles, hardware, mineral products, and metal materials.

SC is mainly engaged in selling pharmaceutical and chemical products, and pharmaceutical intermediates.

Ms. Gao Guizhen is the legal representative and chairman of SC at present.

SC is known to have approx. 8 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Ningbo. Our checks reveal that SC rents the total premise, but SC’s employee refused to release the gross area of the premise.

http://www.pharmaster.com.cn/ The design is professional and the content is well organized. At present it is in Chinese and English versions.

Email: yao.tiger@pharmaster.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

Gao Guizhen 60

Feng Lianfen 40

l Legal representative and chairman:

Ms. Gao Guizhen is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative and chairman

SC is mainly engaged in selling pharmaceutical and chemical products, and pharmaceutical intermediates.

SC’s products mainly include: Telmisartan's intermediates, Candesartan's intermediates, Irbesartan's intermediates, Perindopril's intermediates, Citalopram's intermediates, etc.

SC sources its materials and products 90% from domestic market and 10% from overseas market. SC sells 30% of its products in domestic market and 70% of its products to overseas market.

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.

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.

SC’s management declined to release its bank details.

Balance Sheet

Unit: CNY’000

	as of Dec. 31, 2009
Cash & bank	5,850
Inventory	380
Accounts receivable	7,400
Advances to suppliers	40
Subsidies receivable	1,850
Other receivables	20
Other current assets	70
	------------------
Current assets	15,610
Fixed assets net value	210
Long term investment	0
Other assets	10
	------------------
Total assets	15,830
	=============
Short loans	1,440
Accounts payable	4,630
Notes payable	4,190
Advances from customers	160
Salaries and welfare payable	0
Taxes payable	-30
Other payable	2,810
Other current liabilities	10
	------------------
Current liabilities	13,210
Long term liabilities	0
	------------------
Total liabilities	13,210
Equities	2,620
	------------------
Total liabilities & equities	15,830
	=============

Income Statement

Unit: CNY’000

	as of Dec. 31, 2009
Turnover	46,020
Cost of goods sold	42,420
Sales expense	2,080
Management expense	1,140
Finance expense	180
Profit before tax	150
Less: profit tax	50
Profits	100

Important Ratios

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

	as of Dec. 31, 2009
*Current ratio	1.18
*Quick ratio	1.15
*Liabilities to assets	0.83
*Net profit margin (%)	0.22
*Return on total assets (%)	0.63
*Inventory /Turnover ×365	3 days
*Accounts receivable/Turnover ×365	59 days
*Turnover/Total assets	2.91
* Cost of goods sold/Turnover	0.92

PROFITABILITY: AVERAGE

l The turnover of SC appears average 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 fairly high, comparing with its turnover.

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 appears small.

l The accounts receivable of SC appears fairly large.

l The short-term loan of SC appears average.

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

LEVERAGE: FAIR

l The debt ratio of SC is fairly high.

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. A credit line up to USD 20,000 would appear to be within SC’s capacities.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.58
UK Pound	1	Rs.72.79
Euro	1	Rs.62.01

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

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.