MIRA INFORM REPORT

Report Date :

06.12.2012

IDENTIFICATION DETAILS

Name :	GUANGDONG SILIQUE INTERNATIONAL GROUP WINTEX CO., LTD.
Registered Office :	No. 198 Dongfeng West Road, Yuexiu District, Guangzhou Guangdong Province 510180 Pr
Country :	China
Financials (as on) :	31.12.2011
Date of Incorporation :	28.05.2001
Reg. No.:	440000000045471
Legal Form :	Limited Liabilities Company
Line of Business :	Importing and Exporting various kinds of commodities and technology, excluding the goods forbidden
No. of Employees :	28

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

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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
China	A2	A2

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

china - ECONOMIC OVERVIEW

Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role - in 2010 China became the world's largest exporter. Reforms began with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, creation of a diversified banking system, development of stock markets, rapid growth of the private sector, and opening to foreign trade and investment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors it considers important to "economic security," explicitly looking to foster globally competitive national champions. After keeping its currency tightly linked to the US dollar for years, in July 2005 China revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2010 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of the US; China is second to the US in the value of services it produces. Still, per capita income is below the world average. The Chinese government faces numerous economic challenges, including: (a) reducing its high domestic savings rate and correspondingly low domestic demand; (b) sustaining adequate job growth for tens of millions of migrants and new entrants to the work force; (c) reducing corruption and other economic crimes; and (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2011 more than 250 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development. In 2010-11, China faced high inflation resulting largely from its credit-fueled stimulus program. Some tightening measures appear to have controlled inflation, but GDP growth consequently slowed to near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. Debt overhang from the stimulus program, particularly among local governments, and a property price bubble challenge policy makers currently. The government's 12th Five-Year Plan, adopted in March 2011, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent on exports in the future. However, China has made only marginal progress toward these rebalancing goals.

Source : CIA

Company Name and address

GUANGDONG SILIQUE INTERNATIONAL GROUP WINTEX CO., LTD.

NO. 198 DONGFENG WEST ROAD, YUEXIU DISTRICT, GUANGZHOU

GUANGDONG PROVINCE 510180 PR CHINA

TEL: 86 (0) 20-83337448

FAX: 86 (0) 20-83399763

EXECUTIVE SUMMARY

Date of Registration : May 28, 2001

REGISTRATION NO. : 440000000045471

LEGAL FORM : Limited liabilities company

CHIEF EXECUTIVE : LUO QIAN (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : cny 6,000,000

staff : 28

BUSINESS CATEGORY : trading

Revenue : CNY 1,161,139,000 (AS OF DEC. 31, 2011)

EQUITIES : CNY 15,387,000 (AS OF DEC. 31, 2011)

WEBSITE : N/A

E-MAIL : N/A

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : fairly stable

OPERATIONAL TREND : fairly STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.23 = 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.: 440000000045471 on May 28, 2001.

SC’s Organization Code Certificate No.: 72919697-6

SC’s registered capital: cny 6,000,000

SC’s paid-in capital: cny 6,000,000

Registration Change Record:-

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
Guang Dong Silique International Group Co., Ltd.	51.67
Labor Union of Guangdong Silk-Tex Group Co., Ltd.	48.33

SC’s Chief Executives:-

Position	Name
Legal Representative, Chairman, and General Manager	Luo Qian

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Guang Dong Silique International Group Co., Ltd. 51.67

Labor Union of Guangdong Silk-Tex Group Co., Ltd. 48.33

Guang Dong Silique International Group Co., Ltd.

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

Registration No.: 440000000074101

Legal Form: Shares Limited Company

Chief Executive: Wang Yongli (Legal Representative)

Registered Capital: CNY 68,800,000

Address: No. 198 Dongfeng West Road, Yuexiu District, Guangzhou, Guangdong Province

Tel: 86 (0) 20-83337448

MANAGEMENT

Luo Qian , Legal Representative, Chairman and General Manager

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

Gender: F

Qualification: University

Working experience (s):

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

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, processing with imported materials, processing with imported samples, assembling with imported parts, and compensation trade in agreement; counter trade & transit trade.

SC is mainly engaged in international trade.

SC’s products mainly include: towel, dry hair cap, mats, mop, etc.

SC sources its materials 80% from domestic market, and 20% from overseas market. SC sells 30% of its products in domestic market, and 70% to overseas market, mainly U.S.A., Europe and Asian countries.

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 Client*

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

Peerless Clothing International Inc.

Staff & Office:

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

SC is known to have approx. 28 staff at present.

SC rents an area as its operating office, but the detailed information is unknown.

RELATED COMPANY

SC is known to have a subsidiary at present:

Deqing Tanglong Silk Co., Ltd.

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

Registration No.: 441226000008970

Date of Registration: January 3, 2003

Legal Form: Limited Liabilities Company

Chief Executive: Mei Bowen (Legal Representative)

Registered Capital: CNY 7,380,000

Related Companies,

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

Guangdong Silique International Group Maufar Co., Ltd.

Registration No.: 440000000041492

Date of Registration: May 28, 2001

Legal Form: Limited Liabilities Company

Chief Executive: Cai Rujun (Legal Representative)

Registered Capital: CNY 7,800,000

Guangdong Silk Imp. & Exp. Group Silver Logistics Co., Ltd.

Registration No.: 440000000044956

Date of Registration: July 25, 2001

Legal Form: Limited Liabilities Company

Chief Executive: Xie Yuhuai (Legal Representative)

Registered Capital: CNY 7,480,000

Guangdong Silique International Group Goldsilk Co. Ltd.

Registration No.: 440000000089769

Date of Registration: May 28, 2001

Legal Form: Limited Liabilities Company

Chief Executive: Liang Yiyu (Legal Representative)

Registered Capital: CNY 10,000,000

Guangdong Silique International Group Garment Co., Ltd.

Registration No.: 440000000041669

Date of Registration: May 31, 2001

Legal Form: Limited Liabilities Company

Chief Executive: Li Xusheng (Legal Representative)

Registered Capital: CNY 18,000,000

Guangdong Silk Imp. & Exp. Group Hengtong Trading Co., Ltd.

Registration No.: 440000000043349

Date of Registration: July 25, 2001

Legal Form: Limited Liabilities Company

Chief Executive: Liu Shuyi (Legal Representative)

Registered Capital: CNY 5,980,000

Etc.

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 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.

BANKING

The bank information of SC is not filed in local SAIC.

FINANCIALS

Financial Summary

Unit: CNY’000	As of Dec. 31, 2011
Long term investment	1,000
Total assets	215,404
	-------------
Total liabilities	200,017
Equities	15,387
	-------------
Revenue	1,161,139
Profit before tax	5,413
Less: profit tax	1,379
Profits	4,034

Note: The detailed financials for Y2011 are not available in SAIC.

Important Ratios

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

	As of Dec. 31, 2011
*Liabilities to assets	0.93
*Net profit margin (%)	0.35
*Return on total assets (%)	1.87
* Revenue/Total assets	5.39

FINANCIAL COMMENTS

PROFITABILITY: AVERAGE

The revenue of SC appears fairly good in its line.

SC’s net profit margin is average.

SC’s return on total assets is average.

LIQUIDITY: AVERAGE

SC’s revenue is in an average level, comparing with the size of its total assets.

LEVERAGE: FAIR

The debt ratio of SC is fairly high.

The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly Stable.

CONCLUSIONS

SC is considered medium-sized in its line with fairly stable financial conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.57
UK Pound	1	Rs.87.90
Euro	1	Rs.71.53

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.