MIRA INFORM REPORT

Report Date :

20.10.2011

IDENTIFICATION DETAILS

Name :	ACETO PHARMACEUTICAL (SHANGHAI) LTD.
Registered Office :	Room 908, No. 1701, Beijing West Road, Shanghai 200040 Pr
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	18.02.2003
Com. Reg. No.:	310115400117446
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Exporting Chemical Products

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 800,000
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 – 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

ACETO PHARMACEUTICAL (SHANGHAI) lTD.

room 908, no. 1701, beijing west road

shanghai 200040 PR CHINA

TEL: 86 (0) 21-62880099 FAX: 86 (0) 21-62884488

EXECUTIVE SUMMARY

INCORPORATION DATE : FEB. 18, 2003

REGISTRATION NO. : 310115400117446

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : MR. GARY J. MO (CHAIRMAN)

STAFF STRENGTH : 27

REGISTERED CAPITAL : USD 400,000

BUSINESS LINE : TRADING

TURNOVER : CNY 725,030,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 125,590,000 (AS OF DEC. 31, 2010)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 800,000

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.3776 = 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 current operating address and contact ways should be the heading one, while the given address (Unit 3, 4/F Jiuan Plaza 258 Tongren Road Shanghai China) and fax no. (86-21-62472670) were the former ones.

SC was registered as a wholly foreign-owned enterprise at local Administration for industry & commerce (AIC - the official body of issuing and renewing business license) on Feb. 18, 2003.

Company Status: Wholly foreign-owned enterprise

This form of business in PR China is defined as a legal person. It is a limited co. established within the territories of PR China with capital provided totally by the foreign investors. More than one foreign investor may jointly invest in a wholly foreign-owned enterprise. The investing party/parties solely exercise management, reap profit and bear risks and liabilities by themselves. This form of companies usually have a limited duration is extendible upon approval of Examination and Approval Authorities.

SC’s registered business scope includes international trade; transit trade; trade with the enterprises within the free trade zone and trade agency; operating business with enterprises within free trade zone by the enterprises which have right of import & export; importing & exporting commodities and technology; simple commercial processing; commercial consulting services.

SC is mainly engaged in exporting chemical products.

Mr. Gary J. Mo is legal representative and chairman of SC at present.

SC is known to have approx. 27 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Shanghai. Our checks reveal that SC rents the total premise about 100 square meters.

http://www.aceto.com The website belongs to Aceto Corporation, and it includes the introduction about SC and its related companies. The design is professional and the content is well organized. At present it is in English version.

Email: acetosh@sh.aceto.com

Changes of its registered information:

Date of change	Item	Before the change	After the change
Unknown	Chinese name	美慎达医药国际贸易（上海）有限公司 (U.S. cautious of Medicine International Trading (Shanghai) Co., Ltd.)	阿塞托国际贸易（上海）有限公司 (A Saituo International Trading (Shanghai) Co., Ltd.)

Note: SC changed its Chinese name, while its English name remains the same.

MAIN SHAREHOLDERS:

Name % of Shareholding

Aceto Corporation (U.S.A.) 100

Aceto Corporation, founded in 1947, is a global leader in the marketing and distribution of pharmaceutical intermediates and active ingredients, finished dosage form generics, nutraceutical products, agricultural protection products and specialty chemicals.

Phone: 516-627-6000

Website: http://www.aceto.com

E-mail: aceto@aceto.com

l Legal Representative and Chairman:

Mr. Gary J. Mo, Canadian, in his 40’s with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative and chairman.

Also working in Aceto Pharmaceutical (Shanghai) Ltd. Branch as principal.

SC is mainly engaged in exporting chemical products.

SC’s products mainly include: various chemical products.

SC sources its materials 100% from domestic market. SC sells 100% of its products to overseas market, mainly European and American countries.

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

*Major Customer:

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

Aceto Corporation (U.S.A.)

Note: SC refused to release its major suppliers.

According to the above website:

Aceto Fine Chem GmbH (Hamburg)

Aceto France S.A.S.

Aceto Health Ingredients GmbH (Hamburg)

Aceto Netherlands

Aceto Pharma GmbH (Hamburg)

Aceto Pharma (India) Private Limited

Branch:

======

Aceto Pharmaceutical (Shanghai) Ltd. Branch

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 Merchants Bank

AC#N/A

Relationship: Normal.

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2010
Cash & bank	9,220
Inventory	0
Bills receivable	0
Accounts receivable	190,550
Other Accounts receivable	0
Advances to suppliers	640
To be apportioned expense	20
Other current assets	0
	------------------
Current assets	200,430
Fixed assets net value	300
Long-term investment	0
Long-term deferred expense	120
Intangible and other assets	0
	------------------
Total assets	200,850
	=============
Short loans	0
Accounts payable	71,670
Advance from customers	0
Other Accounts payable	420
Notes payable	1,180
Accrued payroll	1,110
Taxes payable	700
Surcharge payable	180
Other current liabilities	0
	------------------
Current liabilities	75,260
Long term liabilities	0
Other liabilities	0
	------------------
Total liabilities	75,260
Equities	125,590
	------------------
Total liabilities & equities	200,850
	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2010
Turnover	725,030
Cost of goods sold	702,410
Profit from other business	1,080
Sales expense	140
Management expense	9,950
Finance expense	3,890
Subsidy income	280
Profit before tax	10,000
Less: profit tax	2,270
Profits	7,730

Important Ratios

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

	As of Dec. 31, 2010
*Current ratio	2.66
*Quick ratio	2.66
*Liabilities to assets	0.37
*Net profit margin (%)	1.07
*Return on total assets (%)	3.85
*Inventory /Turnover ×365	/
*Accounts receivable/Turnover ×365	96 days
*Turnover/Total assets	3.61
* Cost of goods sold/Turnover	0.97

PROFITABILITY: AVERAGE

l The turnover of SC appears fairly good in its line.

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

l SC’s return on total assets remains in an average level.

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

LIQUIDITY: AVERAGE

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

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

l The accounts receivable of SC appears large.

l There is no inventory and short-term loan in 2010.

l SC’s turnover is in a fairly good level, comparing with the size of its total assets.

LEVERAGE: AVERAGE

l The debt ratio of SC is low.

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 could be a threat to SC’s financial condition. A credit line at the above amount appears to be beyond SC’s capacities, while a credit line up to USD 800,000 is recommended.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.18
UK Pound	1	Rs.77.49
Euro	1	Rs.67.96

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.