MIRA INFORM REPORT

Report Date :

12.10.2011

IDENTIFICATION DETAILS

Name :	GUANGZHOU TIANLIN TRADE CO., LTD.

Registered Office :	Room 308 Sinotrans Building, No. 8 Baoshi Road, Guangzhou, Guangdong Province 510730 Pr

Country :	China

Financials (as on) :	31.12.2010

Date of Incorporation :	09.10.1998

Com. Reg. No.:	440108000009762

Legal Form :	Limited Liabilities Company

Line of Business :	International Trade

RATING & COMMENTS

MIRA’s Rating :

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

Maximum Credit Limit :	USD 1,000

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

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

Company name & address

guangzhou tianlin trade co., ltd.

room 308 sinotrans building, no. 8 baoshi road, guangzhou

guangdong province 510730 PR CHINA

TEL: 86 (0) 20-33003159/82228876

FAX: 86 (0) 20-32229428

EXECUTIVE SUMMARY

Date of Registration : october 9, 1998

REGISTRATION NO. : 440108000009762

LEGAL FORM : Limited liabilities company

CHIEF EXECUTIVE : chen tianhua (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : cny 500,000

staff : 3

BUSINESS CATEGORY : trading

Revenue : CNY 6,807,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 265,000 (AS OF DEC. 31, 2010)

WEBSITE : N/A

E-MAIL : N/A

PAYMENT : AVERAGE

Recommended Credit Limit: UP TO USD 1,000

MARKET CONDITION : fair

FINANCIAL CONDITION : fair

OPERATIONAL TREND : Downward

GENERAL REPUTATION : fair

EXCHANGE RATE : CNY 6.38 = USD 1

Adopted abbreviations

(As Follows)

SC - Subject Company (the company inquired by you)

N/A – Not available

CNY – China Yuan Ren Min Bi

OPERATIONAL TREND & GENERAL REPUTATION

This section aims at indicating the relative positions of SC in respect of its operational trend & general reputation

Operational Trend:- General Reputation:-

Upward Excellent

Steady Good

Fairly Steady Fairly Good

Ordinary Average

Fair Fair

Stagnant Detrimental

Downward Not known

Not known Not yet be determined

Not yet be determined

LEGAL STATUS & HISTORY

SC was established as a limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 440108000009762 on October 9, 1998.

SC’s Organization Code Certificate No.: 71242037-X

SC’s registered capital: cny 500,000

SC’s paid-in capital: cny 500,000

No significant changes of SC have been noted in SAIC since its incorporation.

Current Co search indicates SC’s shareholders & chief executives are as follows:-

Name of Shareholder (s)

% of Shareholding

Chen Tianhua

Chen Wenqiang

SC’s Chief Executives:-

Position	Name
Legal Representative, Chairman, and General Manager	Chen Tianhua
Supervisor	Chen Wenqiang

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Chen Tianhua 50

Chen Wenqiang 50

MANAGEMENT

Chen Tianhua, Legal Representative, Chairman and General Manager

-----------------------------------------------------------------------------------------------------

Ø Gender: M

Ø Qualification: University

Ø Working experience (s):

At present, working in SC as legal representative, chairman and general manager

Chen Wenqiang, Supervisor

------------------------------------------------

Ø Gender: M

Ø Qualification: University

BUSINESS OPERATION

SC’s registered business scope includes wholesale and retail trades; logistics information consulting; importing and exporting goods and technology.

SC is mainly engaged in international trade.

SC’s products mainly include: chemicals, building materials, mechanical and electrical products, office supplies, etc.

SC sources its materials 100% from domestic market, mainly Guangdong. SC sells 100% of its products to overseas market, mainly Southeast Asia.

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

Staff & Office:

--------------------------

SC is known to have approx. 3 staff at present.

SC rents an area as its operating office, but the detailed information is unknown.

RELATED COMPANY

SC is not known to have any subsidiary at present.

PAYMENT

Overall payment appraisal:

( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.

BANKING

The bank information of SC is not filed in SAIC.

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2009	As of Dec. 31, 2010
Cash	217	894
Accounts receivable	69	-133
Advances to suppliers	0	0
Other receivable	295	98
Inventory	1,042	2,774
Non-current assets within one year	0	0
Other current assets	0	36
	------------------	------------------
Current assets	1,623	3,669
Fixed assets	69	50
Long-term prepaid expenses	0	0
Deferred income tax assets	0	0
Other non-current assets	0	0
	------------------	------------------
Total assets	1,692	3,719
	=============	=============
Short-term loans	0	0
Accounts payable	208	330
Wages payable	5	10
Tax payable	-159	-449
Advance from customers	1,317	3,492
Other payable	11	68
Other current liabilities	1	3
	------------------	------------------
Current liabilities	1,383	3,454
Non-current liabilities	0	0
	------------------	------------------
Total liabilities	1,383	3,454
Equities	309	265
	------------------	------------------
Total liabilities & equities	1,692	3,719
	=============	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2010
Revenue	6,807
Cost of sales	6,458
Sales expense	42
Management expense	310
Finance expense	25
Profit before tax	-44
Less: profit tax	0
Profits	-44

Important Ratios

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

	As of Dec. 31, 2009	As of Dec. 31, 2010
*Current ratio	1.17	1.06
*Quick ratio	0.42	0.26
*Liabilities to assets	0.82	0.93
*Net profit margin (%)	--	-0.65
*Return on total assets (%)	--	-1.18
*Inventory / Revenue ×365	--	149 days
*Accounts receivable/ Revenue ×365	--	--
* Revenue/Total assets	--	1.83
* Cost of sales / Revenue	--	0.95

FINANCIAL COMMENTS

PROFITABILITY: FAIR

l The revenue of SC appears fair in its line.

l SC’s net profit margin is fair.

l SC’s return on total assets is fair.

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

LIQUIDITY: FAIR

l The current ratio of SC is maintained in a normal level.

l SC’s quick ratio is maintained in a poor level.

l The inventory of SC appears large.

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

l SC’s revenue 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: Fair.

CONCLUSIONS

SC is considered small-sized in its line with fair financial conditions. A credit line up to USD 1,000 would appear to be within SC’s capacities.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.03
UK Pound	1	Rs.76.60
Euro	1	Rs.66.80

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.