MIRA INFORM REPORT

Report Date :

31.05.2011

IDENTIFICATION DETAILS

Name :	FARMASINO PHARMACEUTICALS (JIANGSU) CO., LTD.
Registered Office :	No. 100 Jianye Road, Nanjing, Jiangsu Province, 210004 Pr
Country :	China
Financials (as on) :	31.12.2009
Date of Incorporation :	17.10.2008
Com. Reg. No.:	320000000076867
Legal Form :	Limited Liabilities Company
Line of Business :	trading of pharmaceuticals, chemicals, etc

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 :	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	a2	a2

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

Bottom of Form

Company name & address

Farmasino Pharmaceuticals (Jiangsu) Co., Ltd.

NO. 100 JIANYE ROAD, NANJING,

JIANGSU PROVINCE, 210004 PR CHINA

TEL: 86 (0) 25-84267961/86907216 FAX: 86 (0) 25-84209861/ 86907202

EXECUTIVE SUMMARY

INCORPORATION DATE : OCTOBER 17, 2008

REGISTRATION NO. : 320000000076867

REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY

CHIEF EXECUTIVE : MR. wan huizhong (CHAIRMAN)

STAFF STRENGTH : 40

REGISTERED CAPITAL : CNY 10,000,000

BUSINESS LINE : TRADING

TURNOVER : CNY 201,380,000 (AS OF DEC. 31, 2009)

EQUITIES : CNY 5,960,000 (AS OF DEC. 31, 2009)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 20,000 (periodical review)

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : fairly STABLE

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.50 = 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 provincial Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on October 17, 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 developing, researching and transferring chemical technology and information consultant and services; importing and exporting commodities and technology; selling chemical products; and domestic trade.

SC is mainly engaged in trading of pharmaceuticals, chemicals, etc.

Mr. Wan Huizhong is legal representative and chairman of SC at present.

SC is known to have approx. 40 employees at present.

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

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

Email: info@famasino.com

Changes of its registered information:

Date of change	Item	Before the change	After the change
Unknown	Legal representative	Fan Zhongfeng 范忠峰	Wan Huizhong 万慧中

According to SC’s accountant Mr. Shi, SC started its normal business at the beginning of 2009. As of Dec. 31, 2008 SC’s paid up capital reached CNY 3,000,000; and SC’s paid up capital is CNY 5,000,000 at present.

MAIN SHAREHOLDERS:

Name % of Shareholding

Jiangsu Light Industrial Products Import and Export (Group) Corporation 35

Tong Xiao 5

ID # 320106196901250425

Wang Li 30

ID # 320923197711070321

Yan Libo 30

ID # 432426197609198010

* Jiangsu Light Industrial Products Import and Export (Group) Corporation

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

Established in 1974, Jiangsu Light Industrial Products Import & Export (Group) Corporation is a large-scale international trade company mainly dealing in import and export business, real estate and industrial investment. Its registered capital is 253 million and 266 thousand Yuan. By the end of 2009, its total assets had reached about 3 billion Yuan and its net assets had reached nearly 600 million Yuan with annual business volume about 5 billion Yuan. The company mainly engages in export of footwear, toys, bags and suitcases, household electrical appliance, garments, stationery and sports goods and sundry goods, import and domestic trade of chemical materials, machinery and equipments. For many years, it has ranked among the first hundred of five hundred enterprises with the largest import an export amount in China. The brands of “FRIENDLY” and “JSLTOYS” have been recognized by the State as specially supported key brands for export and “Panda” and “Tiger” as Jiangsu provincial famous brands.

Add: No. 100, Jian Ye Road, Nanjing, China. Zip: 210004

Tel: 86-25-58006166

Fax: 86-25-84208398 86-25-84209520

Email: jsl@jslgroup.com

Web: http://www.jslgroup.com/

l Legal representative and chairman:

Mr. Wan Huizhong, ID # 320114196408070914, born in 1964. He is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as chairman and legal representative.

l General manager:

Mr. Yan Libo, ID # 432426197609198010, born in 1976. He is currently responsible for the daily management of SC.

Working Experience(s):

From 2008 to present Working in SC as general manager;

SC is mainly engaged in trading of pharmaceuticals, chemicals, etc.

Main Products:

Finished Drugs (Tablets, Capsules, Liquid Injections, Powder for Injections, Miscellaneous, Packing Materials, Surgicals, Animal Medicine)

Bulk Pharmaceuticals (Active Pharmaceutical Ingredients, Veterinary Products, Amino Acids, Vitamins, Plant Extracts, Nutritional Supplements, Food Additives)

Intermediates & Chemicals (Pharmaceutical Intermediates, Agrochemical Intermediates, Pigment Intermediates, Fine Chemicals, Petrochemicals, Customer Manufacturing)

SC sources its materials 100% from domestic market. SC sells 40% of its products in domestic market, and 60% to overseas market, mainly European and Indian market.

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

According to SC’s accountant Mr. Shi, SC started its normal business at the beginning of 2009.

*SC is jointly occupying the heading premise with the following company:

Nanjing Sino Pharmtech Co., Ltd.

*According to SC’s website, it has the following related factory:

Anhui Sino Pharmaceuticals Chemicals Co., Ltd.

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.

Bank of China Jiangsu Branch

AC# N/A

Relationship: Normal.

Balance Sheet

Unit: CNY’000

	as of Dec. 31, 2008	as of Dec. 31, 2009
Cash & bank	5,040	8,310
Inventory	0	15,550
Accounts receivable	0	-9,530
Advances to supplies	0	0
Other receivables	0	5,190
Other current assets	0	0
	------------------	------------------
Current assets	5,040	19,520
Fixed assets net value	0	570
Projects under construction	0	0
Long-term investments	0	0
Other assets	0	0
	------------------	------------------
Total assets	5,040	20,090
	=============	=============
Short loans	0	0
Notes payable	0	7,010
Accounts payable	0	1,900
Advances from customers	2,090	7,140
Employee pay payable	0	0
Taxes payable	0	-2,190
Other Accounts payable	0	250
Other current liabilities	0	20
	-----------------	-----------------
Current liabilities	2,090	14,130
Long term liabilities	0	0
	------------------	------------------
Total liabilities	2,090	14,130
Shareholders equities	2,950	5,960
	------------------	------------------
Total liabilities & equities	5,040	20,090
	=============	=============

Income Statement (as of Dec. 31, 2009)

Unit: CNY’000

Turnover	201,380
Cost of goods sold	191,310
Taxes and additional of main operation	2
Sales expense	6,090
Management expense	1,250
Finance expense	1,310
Non-operating income	106
Non-operating expense	100
Profit before tax	1,420
Less: profit tax	400
Profits	1,020

Important Ratios

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

	as of Dec. 31, 2008	as of Dec. 31, 2009
*Current ratio	2.41	1.38
*Quick ratio	2.41	0.28
*Liabilities to assets	0.41	0.70
*Net profit margin (%)	/	0.51
*Return on total assets (%)	/	5.08
*Inventory /Turnover ×365	/	29 days
*Accounts receivable/Turnover ×365	/	/
*Turnover/Total assets	/	10.02
* Cost of goods sold/Turnover	/	0.95

PROFITABILITY: FAIRLY GOOD

l The turnover of SC appears fairly good in its line in 2009.

l SC’s net profit margin is average in 2009.

l SC’s return on total assets is fairly good in 2009.

l SC’s cost of goods sold is fairly high, comparing with its turnover in 2009.

LIQUIDITY: FAIR

l The current ratio of SC is maintained in a fairly good level in 2008 but in a normal level in 2009.

l SC’s quick ratio is maintained in a fairly good level in 2008 but in a poor level in 2009.

l The inventory of SC appears large in 2009.

l SC has no short-term loan in both two years.

l SC’s turnover is in a fairly good level, comparing with the size of its total assets in 2009.

LEVERAGE: AVERAGE

l The debt ratio of SC is average in 2009.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly stable.

SC is considered medium-sized in its line with fairly stable conditions. The large amount of inventory could be a threat to SC’s financial condition. A credit line up to USD 20,000 would appear to be within SC’s capacities upon a periodical review basis.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.10
UK Pound	1	Rs.74.27
Euro	1	Rs.64.35

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.