MIRA INFORM REPORT

Report Date :

10.06.2011

IDENTIFICATION DETAILS

Name :	picheir enterprise (xiamen) CO., LTD.
Registered Office :	Unit 302-I, Rihua Int’l Building, No. 16, Xinfengsan Road, Torch Section Of Xiamen, Fujian Province, 361006 Pr
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	05.11.2009
Com. Reg. No.:	350298200010344
Legal Form :	Limited Liabilities Company
Line of Business :	Selling cabbage palm, electronic products and garments.

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 2,000
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 – March 31^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
China	A2	A2

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

Name and address

picheir enterprise (xiamen) CO., LTD.

unit 302-i, rihua int’l building, no. 16, xinfengsan road, torch section of xiamen, fujian province, 361006 PR CHINA

TEL: 86 (0) 592-5762155 FAX: 86 (0) 592-5762622

EXECUTIVE SUMMARY

INCORPORATION DATE : Nov. 5, 2009

REGISTRATION NO. : 350298200010344

REGISTERED LEGAL FORM : Limited liabilities company

chief executive : Ms. liu weina (CHAIRMAN)

STAFF STRENGTH : 6

REGISTERED CAPITAL : CNY 1,000,000

BUSINESS LINE : TRADING

TURNOVER : CNY 560,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 710,000 (AS OF DEC. 31, 2010)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO usd 2,000 (PERIODICAL REVIEW)

MARKET CONDITION : Fair

FINANCIAL CONDITION : Fair

OPERATIONAL TREND : fairly STEADY

GENERAL REPUTATION : average

EXCHANGE RATE : CNY 6.6747 = 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 co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Nov. 5, 2009.

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 wholesaling & retailing arts & crafts, daily necessities, textiles, machinery equipment, office stationery, electronic products, hardware, auto parts, building materials, computer & parts, biological products, sporting goods, metal materials, logistics equipment, coffee utensil, fishing equipment, garments & shoes; importing & exporting commodities and technology, excluding the items prohibited or limited by the country.

SC is mainly engaged in selling cabbage palm, electronic products and garments.

Ms. Liu Weina has been legal representative, chairman and general manager of SC since 2009.

SC is known to have approx. 6 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Xiamen. Our checks reveal that SC rents the total premise about 60 square meters.

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

Email: rick.qiu@picheir.com

SC started its normal operation in March of 2010.

Certificates:

===========

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

MAIN SHAREHOLDERS:

Name % of Shareholding

Liu Weina 60

Qiu Huafeng 40

l Legal representative, chairman and general manager:

Ms. Liu Weina , born in 1981, she is currently responsible for the overall management of SC.

Working Experience(s):

From 2009 to present Working in SC as legal representative, chairman and general manager.

SC started its normal operation in March of 2010.

SC is mainly engaged in selling cabbage palm, electronic products and garments.

SC’s products mainly include: coconut shell charcoal, coco peat, coir fibre, etc.

The products are mainly applied in industrial production, landscaping and erosion control.

SC sources its materials 30% from domestic market, and 70% from overseas market. SC sells 95% of its products in domestic market, and 5% 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.

Note: SC refused to release its major clients and suppliers.

According to SC’s website:

Philippines Office

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

Address: 4# Floor AMYA Building. Quimpo Blvd. Cor. Tulip Drive . Matina. Davao City. Philippines

Email: raymond.qiu@picheir.com

Vietnam Office

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

Address: 86 DUONG 817A，KHU TA QUANG BUU, P5, Q8, TP, HCM

Email: raymond.qiu@picheir.com

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 Bank of China

AC# N/A

Relationship: Normal.

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2010
Cash & bank	120
Inventory	100
Bills receivable	0
Accounts receivable	170
Other Accounts receivable	20
Advances to suppliers	240
To be apportioned expense	0
Other current assets	0
	------------------
Current assets	650
Fixed assets net value	70
Long-term investment	0
Intangible and other assets	0
	------------------
Total assets	720
	=============
Short loans	0
Accounts payable	0
Advance from customers	30
Other Accounts payable	0
Notes payable	0
Taxes payable	-20
Withdraw the expenses in advance	0
Other current liabilities	0
	------------------
Current liabilities	10
Long term liabilities	0
Other liabilities	0
	------------------
Total liabilities	10
Equities	710
	------------------
Total liabilities & equities	720
	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2010
Turnover	560
Cost of goods sold	500
Sales expense	100
Management expense	210
Finance expense	10
Profit before tax	-260
Less: profit tax	0
Profits	-260

Important Ratios

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

	As of Dec. 31, 2010
*Current ratio	65.00
*Quick ratio	55.00
*Liabilities to assets	0.01
*Net profit margin (%)	-46.43
*Return on total assets (%)	-36.11
*Inventory /Turnover ×365	65 days
*Accounts receivable/Turnover ×365	111 days
*Turnover/Total assets	0.78
* Cost of goods sold/Turnover	0.89

PROFITABILITY: FAIR

l The turnover of SC appears fair in its line.

l SC’s net profit margin is poor.

l SC’s return on total assets is poor.

l SC’s cost of goods sold is average, 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 is maintained in an average level.

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

l SC has no short-term loan in 2010.

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

LEVERAGE: AVERAGE

l The debt ratio of SC is low.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fair.

SC is considered small-sized in its line with a short operating history. We consider a credit line at the above amount appears to be within SC’s capacities upon a periodical review basis.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.72
UK Pound	1	Rs.73.47
Euro	1	Rs.65.38

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.