MIRA INFORM REPORT

Report Date :

12.10.2011

IDENTIFICATION DETAILS

Name :	pharmaster (ningbo) int’l CO., LTD.
Registered Office :	12/F, South Tower, Yinzhou Chamber Of Commerce Bldg., No. 1299 Yinxian Road (East), Yinzhou District, Ningbo, Zhejiang Province, 315192 Pr
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	26.05.2008
Com. Reg. No.:	330212000051391
Legal Form :	Limited Liabilities Company
Line of Business :	Selling pharmaceutical and chemical products, and pharmaceutical intermediates

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

Company name and address

pharmaster (ningbo) int’l CO., LTD.

12/F, SOUTH TOWER, YINZHOU CHAMBER OF COMMERCE BLDG., NO. 1299 YINXIAN ROAD (EAST), YINZHOU DISTRICT, NINGBO,

ZHEJIANG PROVINCE, 315192 PR CHINA

TEL: 86 (0) 574-88107660/88107667 FAX: 86 (0) 574-88107676

EXECUTIVE SUMMARY

INCORPORATION DATE : MAY 26, 2008

REGISTRATION NO. : 330212000051391

REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY

CHIEF EXECUTIVE : MS. GAO GUIZHEN (CHAIRwoMAN)

STAFF STRENGTH : 8

REGISTERED CAPITAL : CNY 2,500,000

BUSINESS LINE : TRADING

TURNOVER : CNY 73,066,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 2,739,000 (AS OF DEC. 31, 2010)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 20,000

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.3725 = 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

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 was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on May 26, 2008

SC’s registered business scope includes import and export of goods and technology, excluding the goods and technology prohibited or limited by the country; wholesaling and retailing electronic products, communications equipment, chemical materials and products, a class of medical equipment, daily necessities, textiles, hardware, mineral products, metal materials, crafts, mechanical and electrical equipment, computers and accessories and building materials.

SC is mainly engaged in selling pharmaceutical and chemical products, and pharmaceutical intermediates.

Ms. Gao Guizhen is the legal representative, chairwoman and general manager of SC at present.

SC is known to have approx. 8 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Ningbo. Our checks reveal that SC rents the total premise, but the detailed information of the area is unspecified.

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

Email: yao.tiger@pharmaster.com.cn

No significant events or changes were found during our checks with the local Administration for Industry and Commerce.

Tax Registration Certificate No.: 330227674727863

Organization Code: 67472786-3

MAIN SHAREHOLDERS:

Name % of Shareholding

Gao Guizhen ID#: 210423195111080444 60

Feng Lianfen ID#: 330203195005240927 40

l Legal representative, chairwoman and general manager:

Ms. Gao Guizhen ID#: 210423195111080444, born in 1951, she is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative, chairwoman and general manager.

l Supervisor:

Ms. Feng Lianfen ID#: 330203195005240927

SC is mainly engaged in selling pharmaceutical and chemical products, and pharmaceutical intermediates.

SC’s products mainly include: Telmisartan's intermediates, Candesartan's intermediates, Irbesartan's intermediates, Perindopril's intermediates, Citalopram's intermediates, etc.

SC sources its materials and products 90% from domestic market and 10% from overseas market. SC sells 30% of its products in domestic market and 70% of its products 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’s management declined to release its major clients and suppliers.

SC is known to invest in the following company:

Ningbo Foreign Economic Holdings Co., Ltd. (Literal Translation)

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

Legal representative: Chen Jidong

Registration no.: 330215000036917

Registered capital: CNY 50,000,000

Amount of investment: CNY 8,330,000

Shareholding percentage: 16.66%

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.

China Guangfa Bank Haishu Sub-branch

AC#: 7403514010000596

China Guangfa Bank Yinzhou Sub-branch

AC#: 7409514010000129

Bank of Communications Liuting Sub-branch

AC#: 332006263018170012256

Bank of Ningbo Siming Sub-branch

AC#: 24010122000231370

Relationship: Normal

Balance Sheet

Unit: CNY’000

	as of Dec. 31, 2009	as of Dec. 31, 2010
Cash & bank	5,850	14,905
Inventory	380	196
Accounts receivable	7,400	21,466
Advances to suppliers	40	50
Subsidies receivable	1,850	0
Other receivables	20	62
The export tax rebate receivable	0	2,393
Prepaid expense	0	46
Other current assets	70	0
	------------------	------------------
Current assets	15,610	39,118
Fixed assets net value	210	152
Long term investment	0	0
Other assets	10	0
	------------------	------------------
Total assets	15,830	39,270
	=============	=============
Short loans	1,440	6,688
Accounts payable	4,630	8,944
Notes payable	4,190	12,819
Advances from customers	160	0
Salaries and welfare payable	0	0
Taxes payable	-30	38
Other account payable	0	8,029
Other payable	2,810	13
Other current liabilities	10	0
	------------------	------------------
Current liabilities	13,210	36,531
Long term liabilities	0	0
	------------------	------------------
Total liabilities	13,210	36,531
Equities	2,620	2,739
	------------------	------------------
Total liabilities & equities	15,830	39,270
	=============	=============

Income Statement

Unit: CNY’000

	as of Dec. 31, 2009	as of Dec. 31, 2010
Turnover	46,020	73,066
Cost of goods sold	42,420	68,696
Taxes and additional of main operation	0	1
Sales expense	2,080	2,265
Management expense	1,140	1,479
Finance expense	180	670
Subsidy income	0	247
Non-operating income	0	0
Non-operating expense	0	30
Profit before tax	150	172
Less: profit tax	50	54
Profits	100	118

Important Ratios

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

	as of Dec. 31, 2009	as of Dec. 31, 2010
*Current ratio	1.18	1.07
*Quick ratio	1.15	1.07
*Liabilities to assets	0.83	0.93
*Net profit margin (%)	0.22	0.16
*Return on total assets (%)	0.63	0.30
*Inventory /Turnover ×365	3 days	1 day
*Accounts receivable/Turnover ×365	59 days	108 days
*Turnover/Total assets	2.91	1.86
* Cost of goods sold/Turnover	0.92	0.94

PROFITABILITY: AVERAGE

l The turnover of SC appears average in its line, and it increased in 2010.

l SC’s net profit margin is average in both years.

l SC’s return on total assets is average in both years.

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

LIQUIDITY: AVERAGE

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

l SC’s quick ratio is maintained in a normal level in both years.

l The inventory of SC appears average in both years.

l The accounts receivable of SC appears fairly large in 2009, but large in 2010.

l The short-term loan of SC appears average in 2009, but fairly large in 2010.

l SC’s turnover is in an average level in both years, comparing with the size of its total assets.

LEVERAGE: FAIR

l The debt ratio of SC is high in 2010.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly stable.

SC is considered small-sized in its line with fairly stable financial conditions. The large amount of accounts receivable and short-term loan could be a threat to SC’s financial conditions. A credit line up to USD 20,000 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.