MIRA INFORM REPORT

Report Date :

26.12.2012

IDENTIFICATION DETAILS

Name :	FIRMENICH AROMATICS (CHINA) CO., LTD.
Registered Office :	No. 3901, Jindu Road, Xinzhuang Industrial Zone, Minhang District, Shanghai, 201108 Pr
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	19.11. 2001
Com. Reg. No.:	310000400282652
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Manufacturing and selling essence & flavor
No. of Employees :	480

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 :	Good
Payment Behaviour :	Regular
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

FIRMENICH AROMATICS (CHINA) CO., LTD.

NO. 3901, JINDU ROAD, XINZHUANG INDUSTRIAL ZONE,

MINHANG DISTRICT, SHANGHAI, 201108 PR CHINA

TEL: 86 (0) 21-33238000 FAX: 86 (0) 21-33238100

EXECUTIVE SUMMARY

INCORPORATION DATE : nov. 19, 2001

REGISTRATION NO. : 310000400282652

REGISTERED LEGAL FORM : wholly foreign-owned enterprise

CHIEF EXECUTIVE : Mr. PATRICK FIRMENICH (CHAIRMAN)

STAFF STRENGTH : 480

REGISTERED CAPITAL : USD 13,200,000

BUSINESS LINE : MANUFACTURING AND TRADING

TURNOVER : CNY 1,301,290,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 295,060,000 (AS OF DEC. 31, 2010)

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.24 = 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 Ren Min Bi

Note: SC’s correct phone number should be the heading one.

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 Nov. 19, 2001.

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 manufacturing, processing, researching and developing essence & flavor, perfume raw material and food additives, selling self-made products; importing, exporting, wholesaling, acting as a commission agency for the above similar products, sauce and prepackaging food, providing related services; after-sales service and technical services.

SC is mainly engaged in manufacturing and selling essence & flavor.

Mr. Patrick Firmenich is legal representative and chairman of SC at present.

SC is known to have approx. 480 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Shanghai. Our checks reveal that SC owns the total premise about 50,000 square meters.

http://www.firmenich.com The website belongs to Firmenich. The design is professional and the content is well organized. At present the web site is in English version.

Changes of its registered information:

Date of change	Item	Before the change	After the change
2010	Registered No.	029742	Present one
	Shareholders and % of Shareholdings	Firmenich SA (Switzerland) 100%	Present one

MAIN SHAREHOLDERS:

Name % of shareholdings

Firmenich Trade SA (Switzerland) (Literal Translation) 100

l Legal Representative and Chairman:

Mr. Patrick Firmenich, Swiss, 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.

l General Manager:

Mr. Andre Pometta, Swiss, he is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as general manager.

Also working in Firmenich Aromatics (Guangzhou) Co., Ltd. as legal representative.

SC is mainly engaged in manufacturing and selling essence & flavor.

SC’s products mainly include: various essence and perfume.

SC sources its materials 20% from domestic market, and 80% from overseas markets, mainly Switzerland and America. SC sells 75% of its products in domestic market, and 25% to overseas market, mainly Europe and America.

The buying terms of SC include Check, L/C, 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 Customers:

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

Beijing Beking University Zoteq Co., Ltd.

Procter & Gamble (Guangzhou) Ltd.

*Major Suppliers:

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

Yinghai (Cangzhou) Spice Co., Ltd.

Zhejiang Xinhua Chemical Co., Ltd.

According to the above website:

Firmenich Aromatics (Shanghai) Co., Ltd.

Firmenich Aromatics (Guangzhou) Co., Ltd.

Kunming Firmenich Aromatics 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: A trade enquiry currently conducted with SC's supplier(s) reveal the following:

Supplier A

Products sold: Essence raw material

Date account opened: N/A

Line of credit: No comment

Terms: T/T, Credit of 30-60 days

Average monthly sales: No comment

Current balance: No comment

Rating Key: 3

Any Special Comments:  ______________________________________

Payment record keys :

1 = Prompt : Payment made before the credit period expires

2 = As agreed terms : Payment made upon due date

3 = Slightly slow but acceptable : Payment made 5 to 20 days beyond agreed terms

4 = Slow : Payment made 16 to 45 days beyond agreed terms

5 = Poor : Payment made over 45 days beyond agreed terms

6 = No comment : Account is newly opened & record is not yet established

Note : In some instances, payment beyond terms can be the result of disputes over merchandise, lost invoices, disputed accounts & etc.

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 Shanghai

AC# N/A

Relationship: Normal

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2010
Cash & bank	14,920
Notes receivable	500
Inventory	176,660
Accounts receivable	186,250
Advances to suppliers	0
Other accounts receivable	23,970
Other current assets	1,230
	------------------
Current assets	403,530
Fixed assets net value	260,480
Project under construction	13,300
Long term investment	0
Intangible and other assets	20,270
	------------------
Total assets	697,580
	=============
Short loans	232,000
Notes payable	0
Accounts payable	79,690
Advances from clients	0
Accrued payroll	0
Taxes payable	13,730
Other accounts payable	62,580
Other current liabilities	14,520
	------------------
Current liabilities	402,520
Long-term liabilities	0
	------------------
Total liabilities	402,520
Equities	295,060
	------------------
Total liabilities & equities	697,580
	=============

Note: The short loans of Year2010 were lent by banks.

Income Statement

Unit: CNY’000

	As of Dec. 31, 2010
Turnover	1,301,290
Cost of goods sold	798,910
Sales expense	161,530
Management expense	67,990
Finance expense	11,240
Non-operating income	0
Non-operating expense	80
Profit before tax	261,540
Less: profit tax	38,000
Profits	223,540

Note: SC’s management declined to release the latest financial information.

Important Ratios

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

	As of Dec. 31, 2010
*Current ratio	1.00
*Quick ratio	0.56
*Liabilities to assets	0.58
*Net profit margin (%)	17.18
*Return on total assets (%)	32.05
*Inventory /Turnover ×365	50 days
*Accounts receivable/Turnover ×365	53 days
*Turnover/Total assets	1.87
* Cost of goods sold/Turnover	0.61

PROFITABILITY: GOOD

l The turnover of SC appears good in its line.

l SC’s net profit margin appears good.

l SC’s return on total assets appears good.

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

LIQUIDITY: FAIR

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

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

l The inventory of SC appears fairly large in 2010.

l The accounts receivable of SC appears fairly large in 2010.

l The short-term loan of SC appears large in 2010.

l SC’s turnover 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 low.

Overall financial condition of the SC: Fairly stable

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.08
UK Pound	1	Rs.89.09
Euro	1	Rs.72.62

INFORMATION DETAILS

Report Prepared by :

PRL

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.