MIRA INFORM REPORT

Report Date :

08.08.2012

IDENTIFICATION DETAILS

Name :	HH TRADING (ZHEJIANG) Co., Ltd.

Registered Office :	3-4/F, Bldg. 2, No. 201, Zhenhua Road, Sandun Town, Xihu District, Hangzhou, Zhejiang Province, 310030 Pr

Country :	China

Date of Incorporation :	31.03.2009

Com. Reg. No.:	330000400002286

Legal Form :	Chinese-Foreign Equity Joint Venture Enterprise

Line of Business :	Selling textiles, furniture, arts and crafts.

No. of Employees :	200

RATING & COMMENTS

MIRA’s Rating :

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

Status :	Moderate

Payment Behaviour :	Unknown

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

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

COMPANY NAME AND ADDRESS

HH TRADING (ZHEJIANG) Co., Ltd.

3-4/f, bLDG. 2, NO. 201, ZHENHUA ROAD, SANDUN TOWN, XIHU DISTRICT, HANGZHOU, ZHEJIANG PROVINCE, 310030 PR CHINA

TEL: 86 (0) 571-85390539 FAX: 86 (0) 571-89905333

EXECUTIVE SUMMARY

INCORPORATION DATE : MAR. 31, 2009

REGISTRATION NO. : 330000400002286

REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE

CHIEF EXECUTIVE : MR. EDMUND JIN (CHAIRMAN)

STAFF STRENGTH : 200

REGISTERED CAPITAL : USD 5,000,000

BUSINESS LINE : TRADING

TURNOVER : N/A

EQUITIES : N/A

PAYMENT : AVERAGE

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.37 = 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

SC was registered as a Chinese-foreign equity joint venture enterprise at Zhejiang Provincial Administration for industry & commerce (AIC - the official body of issuing and renewing business license) on Mar. 31, 2009.

Company Status: Chinese-foreign equity joint venture enterprise

This form of business in PR China is defined as a legal person. It is a limited co. jointly invested by one or more foreign companies and one or more PR China controlled companies within the territories of PR China according to a certain proportion of capital investment. The investing parties exercise business management, share profits and bear all risks and liabilities of the co. together. The equity joint venture law requires that foreign party contribute not less than 25% of the registered capital, with no maximum. The investing parties are free to agree on method of profit distribution and liabilities bearing according to the proportion of capital investment. Each investing parties contributes funds, tangible assets, technology & etc. The board of directors excises the high authority. The joint venture usually has a limited duration of 10 to 50 years. Enterprise with large investment, long construction periods, low investment returns, introducing of advanced technology & advanced technology products that have good competition position in international market may extend beyond the 50 years limit.

SC’s registered business scope includes wholesaling, retailing, importing and exporting home textiles, garments, textile materials, furniture and arts and crafts; commission agent (excluding auction), and providing related after-sale services.

SC is mainly engaged in selling textiles, furniture, arts and crafts.

Mr. Edmund Jin is legal representative and chairman of SC at present.

SC is known to have approx. 200 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Hangzhou. The detailed information of the premise is unspecified.

http://www.harborhousehome.com The design is professional and the content is well organized. At present it is only in Chinese version.

Email: service@harborhousehome.com

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

MAIN SHAREHOLDERS:

Name % of Shareholding

Hangzhou Mengquan Investment Consultation Partnership (Limited Partnership) 10

Wei Huang (American) 2.5

Edmund Jin (American) 87.5

Legal representative and Chairman:

Mr. Edmund Jin, American. He is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative and chairman.

SC is mainly engaged in selling textiles, furniture, arts and crafts.

SC’s products mainly include: textiles, furniture and arts and crafts.

SC sources its materials 70% from domestic market, and 30% from overseas market. SC sells 100% of its products in domestic 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 and Credit of 30-60 days.

Note: SC’s management declined to release its customer and supplier details.

SC is known to have the following shops:

HH Trading (Zhejiang) Co., Ltd. Hangzhou No. 6 Space Home Life Square Shop

HH Trading (Zhejiang) Co., Ltd. Wener West Road Shop

HH Trading (Zhejiang) Co., Ltd. Wanxiangcheng Shop

Etc.

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.

SC’s management declined to release its bank details.

SC’s financial reports were not found during our checks with the local Administration for Industry and Commerce.

SC’s management declined to release any financial information.

SC is considered medium-sized in its line with a development history of 3 years. Due to lack of financial status, we are unable to recommend accurate credit limit for SC.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.50
UK Pound	1	Rs.86.40
Euro	1	Rs.68.70

INFORMATION DETAILS

Report Prepared by :

SDA

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.

COMPANY NAME AND ADDRESS

EXECUTIVE SUMMARY

Unit