MIRA INFORM REPORT

Report Date :

18.10.2011

IDENTIFICATION DETAILS

Name :	KI KAN (SHANGHAI ) INTERNATIONAL TRADING CO., LTD.
Registered Office :	Room 1417, Ailicheng Mansion, No. 333 Jinxiang Road, Pudong New Area, Shanghai 201206 Pr
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	22.10.2002
Com. Reg. No.:	3101152008797
Legal Form :	Limited Liabilities Company
Line of Business :	International Trade

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 – 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

ki kan (shanghai ) international trading co., ltd.

room 1417, ailicheng mansion, no. 333 jinxiang road

pudong new area, shanghai 201206 PR CHINA

TEL: 86 (0) 21-51386459

FAX: 86 (0) 21-51386459

EXECUTIVE SUMMARY

Date of Registration : october 22, 2002

REGISTRATION NO. : 3101152008797

LEGAL FORM : Limited liabilities company

CHIEF EXECUTIVE : wang yafang (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : cny 1,000,000

staff : 3

BUSINESS CATEGORY : trading

Revenue : CNY 19,400,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 1,250,000 (AS OF DEC. 31, 2010)

WEBSITE : N/A

E-MAIL : N/A

PAYMENT : AVERAGE

Recommended Credit Limit: UP TO USD 20,000

MARKET CONDITION : fair

FINANCIAL CONDITION : FAIRly stable

OPERATIONAL TREND : fairly STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.37= 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.: 3101152008797 on October 22, 2002.

SC’s Organization Code Certificate No.: 74420539-1

SC’s registered capital: cny 1,000,000

SC’s paid-in capital: cny 1,000,000

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
Wang Yafang	70
Sun Xingdi	30

SC’s Chief Executives:-

Position	Name
Legal Representative, Chairman, and General Manager	Wang Yafang
Supervisor	Sun Xingdi

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Wang Yafang 70

Sun Xingdi 30

MANAGEMENT

Wang Yafang, Legal Representative, Chairman and General Manager

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

Ø Gender: F

Ø Age: 40’s

Ø Qualification: University

Ø Working experience (s):

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

Sun Xingdi, Supervisor

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

Ø Gender: F

Ø Qualification: University

BUSINESS OPERATION

SC’s registered business scope includes operating and acting as an agent of importing and exporting various kinds of commodities and technology, excluding the goods forbidden by the government; selling mechanical equipment, electronic instruments, building materials, auto parts, chemical raw materials and products (except dangerous goods), sporting goods, leather products, daily necessities, arts and crafts, glassware, ceramics, silk, toys, cosmetics, general anti-labor supplies, footwear, textiles; providing related business advisory services.

SC is mainly engaged in international trade.

SC’s products mainly include: leather, shoes.

SC sources its materials 60% from domestic market, and 40% from overseas market, mainly UK. SC sells 45% of its products in domestic market, and 55% to overseas market.

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

*Major Customer:

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

Wuxi Xinhuaxin Shoes Co., Ltd.

*Major Supplier:

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

SUNORTHERN (UK)

Staff & Office:

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

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

SC rents an area as its operating office of approx. 60 sq. meters at the heading address.

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’s suppliers declined to make any comments.

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

Basic Bank:

Agricultural Bank of China Shanghai Branch

AC#: 03343210040009101

***Note: SC’s management declined to release whether it has account in Bank International Ningbo Shanghai Branch.

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2009	As of Dec. 31, 2010
Cash	540	330
Accounts receivable	2,020	1,820
Advances to suppliers	0	0
Other receivable	0	0
Inventory	1,270	750
Non-current assets within one year	0	0
Other current assets	10	10
	------------------	------------------
Current assets	3,840	2,910
Fixed assets	80	50
Intangible assets	0	0
Long-term prepaid expenses	0	0
Deferred income tax assets	0	0
Other non-current assets	0	0
	------------------	------------------
Total assets	3,920	2,960
	=============	=============
Short-term loans	0	0
Notes payable	0	0
Accounts payable	2,440	1,710
Wages payable	0	0
Advances from clients	0	0
Other payable	0	0
Other current liabilities	270	0
	------------------	------------------
Current liabilities	2,710	1,710
Non-current liabilities	0	0
	------------------	------------------
Total liabilities	2,710	1,710
Equities	1,210	1,250
	------------------	------------------
Total liabilities & equities	3,920	2,960
	=============	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2010
Revenue	19,400
Cost of sales	18,740
Sales expense	300
Management expense	230
Finance expense	60
Profit before tax	50
Less: profit tax	10
Profits	40

Important Ratios

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

	As of Dec. 31, 2009	As of Dec. 31, 2010
*Current ratio	1.42	1.70
*Quick ratio	0.95	1.26
*Liabilities to assets	0.69	0.58
*Net profit margin (%)	--	0.21
*Return on total assets (%)	--	1.35
*Inventory / Revenue ×365	--	15 days
*Accounts receivable/ Revenue ×365	--	35 days
* Revenue/Total assets	--	6.55
* Cost of sales / Revenue	--	0.97

FINANCIAL COMMENTS

PROFITABILITY: AVERAGE

l The revenue of SC appears fair in its line.

l SC’s net profit margin is average.

l SC’s return on total assets is average.

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

LIQUIDITY: AVERAGE

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

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

l The inventory of SC is maintained in an average level.

l The accounts receivable of SC is maintained in an average level.

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: AVERAGE

l The debt ratio of SC is average.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly stable.

CONCLUSIONS

SC is considered small-sized in its line with fairly stable 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.48.89
UK Pound	1	Rs.77.31
Euro	1	Rs.67.79

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.