MIRA INFORM REPORT

Report Date :

29.11.2011

IDENTIFICATION DETAILS

Name :	RUIAN CREDIT IMP&EXP CO.,LTD
Registered Office :	Yangdi Industry Park, Shencheng Town, Rui’an, Wenzhou City, Zhejiang Province 325206
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	25.03.2009
Com. Reg. No.:	330381000051111
Legal Form :	Limited Liabilities Company
Line of Business :	wholesale of other machinery and electric products
No. of Employees :	5 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

RUIAN CREDIT IMP&EXP CO.,LTD
Yangdi Industry Park, Shencheng Town, Rui’an, Wenzhou City, Zhejiang Province
325206
Tel :	86 574 65096186 / 65613512 / 13362766789
Fax:	86 574 65096186
E-mail:	--
Website:	--

Currency in this report is Chinese Yuan unless otherwise stated.

Exchange Rate: 1 USD=6.38 Chinese Yuan

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

Notes：

The address given in the order belongs to subject’s previous address. Subject’s current address is as listed in the report.

EXECUTIVE SUMMARY

DATE OF establishment	MAR.25^th, 2009
Aic Registration No.	330381000051111
REGISTERED LEGAL FORM	limited liabilities company
REGISTERED CAPITAL	100,000.00
main BUSINESS	wholesale of shoe making machine
SIC Code (China)	6379 wholesale of other machinery and electric products
employees	5
import and export permits	yes
business scale	Small
operation trend	Average
TURNOVER	1,075,000.00 (As of Dec.31^st, 2010)
net profit	-39,000.00 (As of Dec.31^st, 2010)
total assets	-288,000.00 (As of Dec.31^st, 2010)
net worth	7,000.00 (As of Dec.31^st, 2010)
base Credie limit	0
EXCHANGE RATE	1 Usd=6.38CNY (nov.28^th, 2011)

REGISTRATION

Name	RUIAN CREDIT IMP&EXP CO., LTD
AIC Registration Number	330381000051111
Registered address	Room 306, Unit 3, Kaitai Plaza, Anyang Street, Rui’an City
Operation address	Yangdi Industry Park, Shencheng Town, Rui’an, Wenzhou City, Zhejiang Province
Date of Establishment	Mar.25^th, 2009
Registry	Administration Bureau of Industry and Commerce – Rui’an
Legal Representative	Zhang Cai (张财)
Registered Legal Form	limited liabilities company
Registered Capital	100,000.00
Operating Duration	From Mar.25^th, 2009 to Mar.24^th, 2019
Changes in Registration	--

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
Zhang Cai	60,000.00	60%
Zhang Changdi	40,000.00	40%
Total	100,000.00	100%

Shareholder	Way of Investment	Paid-up Percentage
Zhang Cai	--	100%
Zhang Changdi	--	100%

Background of major shareholder

Name	Zhang Cai
Gender	Male
Date of birth	Feb.10^th, 1980
National ID NO.	330325198002100512
Name	Zhang Changdi
Gender	Male
Date of birth	May 15^th, 1951
National ID NO.	330325195105150535

AFFILIATE(S)

Related company
Name	RUI’AN JINGUANG POLYURETHANE EQUIPMENT CO., LTD
Registration address	Yangdi Industry Park, Shencheng Town, Rui’an, Wenzhou City, Zhejiang Province
Registration No.	330381605014653
Main business	Manufacture of shoe making machine

MANAGEMENT

Name	Zhang Cai
Gender	Male
Title	Executive director; General manager
Date of birth	Feb.10^th, 1980
National ID No.	330325198002100512
Name	Zhang Changdi
Gender	Male
Title	Supervisor
Date of birth	May 15^th, 1951
National ID No.	330325195105150535

BANKERS INFORMATION

Bank name	Bank of China – Rui’an Sub-branch (Wenzhou)
Account No. (CNY)	820038404508091001
Source of information	Government source

OFFICE FACILITIES

Geographic Location	Yangdi Industry Park, Shencheng Town, Rui’an, Wenzhou City, Zhejiang Province
Area	100 square meters
Environment and traffic	Average
Property Ownership	Rented

TRADEMARKS AND PATENTS

After checking with the Trademark Office of Chinese Administration Bureau of Industry and Commerce and the State Intellectual Office, no trademarks or patents of SC were found.

MAIN PRODUCTS & SERVICES

Main business	Wholesale of shoe making machine
Products and services	Subject’s products include PU shoe pouring machine of different types; heating setting machine; spray drying box; drying lines etc. In addition, subject also sells pharmaceutical machinery, packaging machinery, film blowing machine, bag making machine, printing machine and plastic machine etc.
Annual production capacity	--
Certificates	No

SALES INFORMATION

Local sales	30%
Regions	Zhejiang, Fujian and Shandong Province etc.
Major domestic clients	Shoe making factories; bag making factories etc.
Payment terms	Prompt payment; on credit
Export	70%
Regions	Europe, America, Africa etc.
Major overseas clients	--
Payment terms	L/C, T/T
SC’s products are mostly exported. Due to the short history, its sales network needs to be developed
The above information was confirmed by SC’s employee on Nov.28^th, 2011.

PURCHASE INFORMATION

Main Commodities Purchased	Pouring machine; setting machine etc.
Region	Local: 100%
Number of Major Suppliers	More than 3
Major suppliers	RUI’AN JINGUANG POLYURETHANE EQUIPMENT CO., LTD
Main Terms of Payment	Prompt payment; on credit
SC’s products are mostly supplied by its related company. Some are purchased from other local suppliers. With many shoe making machine manufacturers in the Yangdi Industrial Zone, subject’s source of products is sufficient.
The above information was confirmed by SC’s employee on Nov.28^th, 2011.

CREDIT

Subject’s major supplier is its related company who is operated at the same address with subject. Hence no payment comment from the supplier is 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	60	105
Short-term investment
Notes receivable
Net ball of Account Receivable	-68	-424
Payment in advance
Subsidy Receivable
Other Account Receivable	11	6
Inventory
Expenses to be deferred	3	20
Other current assets
Export rebates receivable
Total current Assets	6	-293
Long-term investment
Long-term investment
Original value of fixed assets	6	6
Accumulated depreciation	-	1
Net fixed assets	6	5
Fixed assets depreciation reserve
Net Value of Fixed Assets	6	5
Fixed assets in liquidation
Projects being constructed
Fixed assets losses in suspense
Total fixed assets	6	5
Intangible assets and deferred assets
Intangible assets
Deferred assets
Total intangible and deferred assets	-	-
Other long-term assets
Other long-term assets
Total assets	12	-288
Current liabilities
Short-term loans
Notes payable
Account payable	-34	-313
Deposit received
Other accounts payable		64
Wages payable		9
Welfare payable
Tax unpaid	-2	-52
Unpaid profit
Other accounts unpaid		-3
Accrued expenses
L/T debt due in 1 year
Other current liabilities
Total current liabilities	-36	-295
L/T liabilities
L/T loans
Bonds payable
L/T account payable
Total L/T liabilities	0	0
Deferred tax
Deferred tax
Total liabilities	-36	-295
Owner’s interest
Paid-up capital	100	100
Contributed surplus
Surplus reserves
Unconfirmed investment loss
Undistributed profits	-52	-93
Minority interest
Total owner’s interest	48	7
Liabilities and owner’s interest	12	-288

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

	Dec. 31^st, 2009	Dec. 31^st, 2010
Main business income	77	1,075
Main business cost	72	821
Tax and associate charge
Main business profit	5	254
Other business profit
Operation expenses		109
- management expenses	55	188
Financial expenses	2	-1
Operation profit	-52	-42
Investment profit
Subsidy income		5
Non business income
- non business expenses
Prior year income adjustment
Total profit	-52	-37
- income tax	0	2
Minority stock holder’s interest
Net profit	-52	-39

Important Ratios:

	2009	2010
Return on net assets (%)	-108.33	-557.14
Return on total assets (%)	-433.33	13.54
Net profit margin (%)	-67.53	-3.63
Turnover of total assets	6.42	-3.73
Turnover of current assets	12.83	-3.67
Turnover of account receivable	-1.13	-2.54
Inventory turnover
Asset liability ratio (%)	-300.00	102.43
Current ratio	-0.17	0.99
Quick ratio	-0.17	0.99

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

	2009	2010
Main business income	77	1,075
Total profit	-52	-37
Net profit	-52	-39
Total assets	12	-288
Total liabilities	-36	-295
Total owner’s interest	48	7
Source from	government	government
Whether audited or not	Yes	Yes

Analysis of financial indicator

Long-term solvency: poor

Short-term solvency: average

Asset security: poor

Inventory status: --

Capital turnover: --

Debt recovery status: --

Profitability: poor

Return on assets (ROA): good

Enterprise background: average

Payment records: --

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.98
UK Pound	1	Rs.80.59
Euro	1	Rs.69.12

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.