MIRA INFORM REPORT

Report Date :

03.10.2011

IDENTIFICATION DETAILS

Correct Name :	JIANGSU GUOTAI INTERNATIONAL GROUP HUATAI IMPORT & EXPORT CO., LTD.

Registered Office :	19/f, Guotai Building, Renmin (M) Road, Zhangjiagang, Jiangsu Province, 215600 PR

Country :	China

Financials (as on) :	31.12.2009

Date of Incorporation :	03.03.1992

Com. Reg. No.:	320582000001511

Legal Form :	Limited Liabilities Company

Line of Business :	importing and exporting hardware, chemicals and garments.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 500,000

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 – March 31^st, 2011

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

China

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

Company name & address

jiangsu guotai international group huatai import & export co., ltd.

19/f, guotai building, renmin (M) road, zhangjiagang,

jIANGSU PROVINCE, 215600 PR CHINA

TEL: 86 (0) 512-58696319 FAX: 86 (0) 512-58696990

EXECUTIVE SUMMARY

INCORPORATION DATE : MARCH 3, 1992

REGISTRATION NO. : 320582000001511

REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY

CHIEF EXECUTIVE : MR. YANG GE (CHAIRMAN)

STAFF STRENGTH : 90

REGISTERED CAPITAL : CNY 30,000,000

BUSINESS LINE : TRADING

TURNOVER : CNY 1,560,750,000 (AS OF DEC. 31, 2009)

EQUITIES : CNY 62,930,000 (AS OF DEC. 31, 2009)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 500,000

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : WELL-KNOWN

EXCHANGE RATE : CNY 6.67 = 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’s correct tel. no. should be the heading one, while the given no. 512-5869699 is wrong.

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 March 3, 1992.

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 wholesale and retail trade, importing and exporting commodities and technologies, excluding the goods forbidden to exported by the government; processing with the imported materials and compensation trade agreement, barter trade and transit trade.

SC is mainly engaged in importing and exporting hardware, chemicals and garments.

Mr. Yang Ge has been general manager of SC since 1998.

SC is known to have approx. 90 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Zhangjiagang. Our checks reveal that SC owns the total premise about 3,000 square meters.

SC is not known to host website of its own at present.

Email: xzting@vip.163.com

Changes of its registered information:

Date of change	Item	Before the change	After the change
2009-2-10	Registered capital	CNY 12,000,000	CNY 20,000,000
	Shareholders	Jiangsu Guotai International Group Co., Ltd. 25% Zhangjiagang Free Trade Zone Shengtai Investment Co., Ltd. 15% Chen Yuxiang 11.25% He Xiaoping 9.04% Qiu Bo 6.965 % Xu Guoxin 7.5% Yang Ge 11.09% Other 21 individuals21 14.155%	Jiangsu Guotai International Group Co., Ltd. 25% Zhangjiagang Free Trade Zone Shengtai Investment Co., Ltd. 15% Chen Yuxiang 11.5% He Xiaoping 9.37% Qiu Bo 10% Xu Guoxin 6% Yang Ge 11.75% Other 21 individuals21 11.38%
2010-8-7	Registered capital	CNY 20,000,000	CNY 30,000,000
2010-8-7	Shareholders	Jiangsu Guotai International Group Co., Ltd. 25%, Zhangjiagang Free Trade Zone Shengtai Investment Co., Ltd. 15% Chen Yuxiang 11.5% He Xiaoping 9.37% Qiu Bo 10% Xu Guoxin 6% Yang Ge 11.75% Other 21 individuals21 11.38%	The present ones
Unspecified	Registration No.	3205821100892	320582000001511

MAIN SHAREHOLDERS:

Name % of Shareholding

Jiangsu Guotai International Group Co., Ltd. 25

Zhangjiagang Free Trade Zone Shengtai Investment Co., Ltd. 15

Chen Yuxiang ID# 320106731029201 11

He Xiaoping ID# 320582197609225735 9.53

Qiu Bo ID# 320521197608108817 10

Xu Guoxin ID# 61010619660403205X 6.00

Yang Ge ID# 320521620817001 12

Other 20 individuals 20 11.47

Jiangsu Guotai International Group Co., Ltd.

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

Jiangsu Guotai International Group is one of the key enterprise groups in Jiangsu province of China. It is mainly involved in the imp. & exp. business of such goods as textiles, garments, handcrafts, hardware, chemicals, pharmaceutical, steel, ships and so on. It also engages in like hotels, traveling, real estate, software development, finance and security. It has gradually formed a diversified operation structure with foreign trade as main operation.

Website: http://www.gtig.com/

E-mail: allenxu@vip.163.com

Tel: 0512-58696206

Fax: 0512-58696170

l Chairman and General Manager:

Mr. Yang Ge , ID # 320521620817001, born in 1962, with junior college education. He is currently responsible for the overall management of SC.

Working Experience(s):

From 1998 to present Working in SC as chairman and general manager

*Officials:

=======

Name Title

Chen Xiaodong Director

Cheng Yinghong Director

Xu Guoxin Director

He Xiaoping Director

Chen Xiangyu Director

Ding Xiezhong Supervisor

Qiu Bo 波 Supervisor

Lu Jiong Supervisor

SC is mainly engaged in importing and exporting hardware, chemicals and garments.

SC’s products mainly include: hand tools, power tools, textiles, and so on.

SC sources its materials 100% from domestic market, mainly Jiangsu. SC sells 10% of its products in domestic market, and 90% to overseas market, mainly India.

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.

SC is known to invest in the following companies:

Zhangjiagang Guotai Investment Co., Ltd.

Suzhou Sanray Pharmaceutical Co., Ltd.

Jiangsu Guotai International Group Industry Investment Co., Ltd.

Juxian Guotai Non-ferrous Metal Materials Co., Ltd.

Nanjing Upstream Information Technology 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 Zhangjiagang Branch

AC# 12214808091001

Relationship: Normal.

Bank of China Zhangjiagang Chenghang Office

AC# 12753418091001

Relationship: Normal.

Financial Information

Unit: CNY’000

	as of Dec. 31, 2008	as of Dec. 31, 2009
Total liabilities	238,646	353,420
Shareholders equities	49,848	62,930
Total Assets	288,494	416,350

Turnover	1,121,349	1,560,750
Profit before tax	13,529	16,900
Net profit	10,503	13,930

Note: SC’s detail financial reports were not found during our checks with local AIC.

Important Ratios

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

	as of Dec. 31, 2008	as of Dec. 31, 2009
*Liabilities to assets	0.83	0.85
*Net profit margin (%)	0.94	0.89
*Return on total assets (%)	3.64	3.35
*Turnover/Total assets	3.89	3.75

PROFITABILITY: FAIRLY GOOD

l The turnover of SC appears fairly good, and it increased in 2009.

l SC’s net profit margin remains at an average level in both years.

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

l SC’s turnover is in a fairly good 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 medium-sized in its line with fairly stable financial conditions. A credit line up to USD 500,000 appears to be within SC’s capacities.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.48.93
UK Pound	1	Rs.76.52
Euro	1	Rs.66.65

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.