MIRA INFORM REPORT

Report Date :

27.08.2012

IDENTIFICATION DETAILS

Name :	FOSHAN NEWPEARL TRADE CO., LTD.
Registered Office :	2/F, Newpearl Ceramics Group Mansion, Huaxia Ceramics Exposition City, Nanzhuang Town, Chancheng District, Foshan, Guangdong Province, 528061 Pr
Country :	China
Financials (as on) :	31.12.2009
Date of Incorporation :	19.12.2002
Com. Reg. No.:	440602000163163
Legal Form :	Limited Liabilities Company
Line of Business :	Selling Ceramics Products

RATING & COMMENTS

MIRA’s Rating :

B

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

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, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
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

Foshan Newpearl Trade Co., Ltd.

2/F, Newpearl Ceramics Group MANSION, HUAXIA CERAMICS Exposition City, NANZHUANG TOWN, CHANCHENG DISTRICT, FOSHAN,

GUANGDONG PROVINCE, 528061 PR CHINA

TEL: 86 (0) 757-85399920/82018776 FAX: 86 (0) 757-85399932/85399958

EXECUTIVE SUMMARY

INCORPORATION DATE : DECEMBER 19, 2002

REGISTRATION NO. : 440602000163163

REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY

CHIEF EXECUTIVE : MR. LI WEI (CHAIRMAN)

STAFF STRENGTH : 21

REGISTERED CAPITAL : CNY 5,000,000

BUSINESS LINE : TRADING

TURNOVER : CNY 192,170,000 (AS OF DEC. 31, 2009)

EQUITIES : CNY 10,920,000 (AS OF DEC. 31, 2009)

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : fairly STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.65980 = 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 correct address should be the heading one, instead of the given one “Rd 1 Shinon-Nanzhunong Tower, Nantal City”.

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 December 19, 2002.

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’s registered business scope includes selling ceramics products; importing and exporting commodities and technology, excluding the items prohibited by the state.

SC is mainly engaged in selling ceramics products.

Mr. Li Wei has been legal representative, chairman and general manager of SC since 2002.

SC is known to have approx. 21 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Foshan. Our checks reveal that SC rents the total premise, but SC’s accountant refused to release the gross area.

http://www.newpearl.com/ The website belongs to Newpearl Ceramics Group and it includes the information on SC and its related companies. The design is professional and the content is well organized. At present it is both in Chinese and English versions.

Certificate:

========

Changes of its registered information:

Date of change	Item	Before the change	After the change
Unknown	Registered No.	4406041000881	440602000163163
	Shareholders and % of Shareholdings	Li Wei10% Ye Delin90%	Li Wei10% Guangdong Newpearl Ceramics Group Co., Ltd. 90%

MAIN SHAREHOLDERS:

Name % of Shareholding

Li Wei 10

Guangdong Newpearl Ceramics Group Co., Ltd. 90

Guangdong Newpearl Ceramics Group Co., Ltd.

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

Registration No.: 440602000007668

Establishment Date: Jan. 15, 1999

Chief Executive: Ye Delin

Registered Capital: CNY 200,000,000

Add: Newpearl Ceramics Group Mansion, Huaxia Ceramics Exposition City, Nanzhuang Town, Chancheng District, Foshan, Guangdong Province

Tel: 86-757-85385922

Fax: 86-757-85395816

Website: http://www.newpearl.com/

Email: info@newpearl.com

l Legal representative, chairman and general manager:

Mr. Li Wei, born in 1946 with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

From 2002 to present Working in SC as chairman, legal representative and general manager.

SC is mainly engaged in selling ceramics products.

Main Products: ceramics products, etc.

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

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

According to the above website:

· Guangdong Summit Ceramics Co., Ltd.

· Foshan Chancheng Gelaisi Ceramics Co., Ltd.

· Foshan Sanshui Newpearl Building Ceramics Industrial Co., Ltd.

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.

Bank of China Foshan Nanzhuang Sub-branch

AC# 884028730608093001

Relationship: Normal.

Balance Sheet

Unit: CNY’000

	as of Dec. 31, 2008	as of Dec. 31, 2009
Cash & bank	19,790	33,500
Inventory	0	0
Accounts receivable	38,620	0
Advances to supplies	2,860	300
Other receivables	14,000	16,480
Subsidies receivable	8,720	0
Prepaid expenses	210	0
Other current assets	0	20
	------------------	------------------
Current assets	84,200	50,300
Fixed assets net value	2,170	1,610
Projects under construction	0	0
Long-term investments	0	0
Intangible and other assets	0	0
	------------------	------------------
Total assets	86,370	51,910
	=============	=============
Short loans	6,280	2,290
Notes payable	0	0
Accounts payable	68,340	28,070
Advances from customers	0	9,710
Accrued payroll	30	30
Taxes payable	270	290
Other Accounts payable	1,770	600
Other current liabilities	10	0
	-----------------	------------------
Current liabilities	76,700	40,990
Long term liabilities	0	0
	------------------	------------------
Total liabilities	76,700	40,990
Shareholders equities	9,670	10,920
	------------------	------------------
Total liabilities & equities	86,370	51,910
	=============	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2008	As of Dec. 31, 2009
Turnover	411,550	192,170
Cost of goods sold	398,240	190,240
Sales expense	26,220	9,980
Management expense	1,260	920
Finance expense	1,680	270
Subsidy income	18,540	0
Non-operating income	0	11,770
Non-operating expense	0	10
Profit before tax	2,700	2,520
Less: profit tax	820	630
Profits	1,880	1,890

Important Ratios

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

	as of Dec. 31, 2008	as of Dec. 31, 2009
*Current ratio	1.10	1.23
*Quick ratio	1.10	1.23
*Liabilities to assets	0.89	0.79
*Net profit margin (%)	0.46	0.98
*Return on total assets (%)	2.18	3.64
*Inventory /Turnover ×365	/	/
*Accounts receivable/Turnover ×365	35 days	/
*Turnover/Total assets	4.76	3.70
* Cost of goods sold/Turnover	0.97	0.99

PROFITABILITY: AVERAGE

l The turnover of SC appears fairly good in its line, but it decreased in 2009.

l SC’s net profit margin is average in both 2 years.

l SC’s return on total assets is average in both 2 years.

l SC’s cost of goods sold is high in both 2 years, comparing with its turnover.

LIQUIDITY: AVERAGE

l The current ratio of SC is maintained in a normal level in both 2 years.

l SC’s quick ratio is maintained in a normal level in both 2 years.

l SC has no inventory in both 2 years.

l The accounts receivable of SC is maintained in a fairly large level in 2008.

l SC’s short-term loan is in an average level in both 2 years.

l SC’s turnover is in a fairly good level in both 2 years, comparing with the size of its total assets.

LEVERAGE: FAIR

l The debt ratio of SC is fairly high in both 2 years.

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. A credit line up to USD 80,000 would appear to be within SC’s capacities.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.38
UK Pound	1	Rs.87.79
Euro	1	Rs.69.47

INFORMATION DETAILS

Report Prepared by :

PDT

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.