MIRA INFORM REPORT

Report Date :

28.12.2012

IDENTIFICATION DETAILS

Name :	CHINA JIANGSU INTERNATIONAL ECONOMIC TECHNICAL COOPERATION CORP.

Registered Office :	No. 5 Beijing West Road, Nanjing City, Jiangsu Province 210005 Pr

Country :	China

Financials (as on) :	31.12.2010

Date of Incorporation :	07.11.1981

Com. Reg. No.:	320000000013210

Legal Form :	State-Owned Enterprise

Line of Business :	Engaged in contracting international and domestic projects, labor cooperation, import and export, real estate development and international trade.

No. of Employees :	610

RATING & COMMENTS

MIRA’s Rating :

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

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

CHINA JIANGSU INTERNATIONAL ECONOMIC TECHNICAL COOPERATION CORP.

NO. 5 BEIJING WEST ROAD, NANJING CITY, JIANGSU PROVINCE 210005 PR CHINA

TEL: 86 (0) 25-83276349/83310555 FAX: 86 (0) 25-83304526/85407573

EXECUTIVE SUMMARY

INCORPORATION DATE : NOV. 7, 1981

REGISTRATION NO. : 320000000013210

REGISTERED LEGAL FORM : STATE-OWNED ENTERPRISE

CHIEF EXECUTIVE : MR. KONG XINNING (CHAIRMAN)

STAFF STRENGTH : 610

REGISTERED CAPITAL : CNY 300,000,000

BUSINESS LINE : CONSTRUCTION AND TRADING

TURNOVER : CNY 2,298,500,000 (UNAUDITED, AS OF DEC. 31, 2010)

EQUITIES : CNY 477,310,000 (UNAUDITED, AS OF DEC. 31, 2010)

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : WELL-KNOWN

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 RenMinBi

Note: SC is operating in the heading address, while the given one belongs to SC’s branch office. SC’s correct contact number should be the heading one.

SC was registered as a state-owned enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Nov. 7, 1981.

Company Status: State-owned enterprise

This form of business in PR China is defined as a commodity production or operational unit of socialist character in accordance with the law, has autonomy in management, takes full responsibility for its profits and losses and practices independent business accounting. It is a legal person established directly by central / local government or enterprise owned by central or local government. In theory, the liabilities of this form of enterprise are ultimately borne by the government, since the adoption of company law in mid-1994, the Chinese government has planned to separate the ownership from management and liabilities bearing.

SC’s registered business scope includes contracting various internal and overseas projects; undertaking external economic assistance projects; consultation, exploration, design and supervision of various industrial and civil projects; development and management of real estate; exporting equipment and materials need by contracted projects; dispatching engineering labor, manufacture and service business; incorporating non-trading enterprises abroad; domestic trade; restaurant services; import and export; designing, constructing and consulting services of environmental engineering; designing, manufacturing, and installing steel structure and wire table projects, and supplying relative technical services; manufacturing and selling electronic products and telecommunication equipment, supplying relative services of technology and consultation; designing and installing computer network engineering; selling and providing technological services of computers and peripheral equipment; selling automobiles (including cars); designing, installing and repairing air-conditioning and refrigerating equipment.

SC is mainly engaged in contracting international and domestic projects, labor cooperation, import and export, real estate development and international trade.

Mr. Kong Xinning is legal representative and chairman of SC at present.

SC is known to have approx. 610 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in Nanjing. Our checks reveal that SC owns the total premise about 5,000 square meters.

http://www.zjgj.com The design is professional and the content is well organized. At present, the web is in both Chinese and English versions.

E-mail: cjietcc@jinteco.com

SC is one of the Top 500 important enterprises in China, and it has got the ISO9001 Quality Management System Certification and the ISO14001 Environmental Management System Certification.

Changes of its registration information:

Date of change	Item	Before the change	After the change
2008	Registration No.	3200001104501	320000000013210

MAIN SHAREHOLDERS:

Name % of Shareholding

Jiangsu Province People’s Government 100

l Legal representative and chairman:

Mr. Kong Xinning , about 57 years old with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as chairman and legal representative.

l Assistant Manager:

Mr. Bu Zhenyang , in his 50’s with university education. He is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as assistant manager.

SC is mainly engaged in contracting international and domestic projects, labor cooperation, import and export, real estate development and international trade.

SC’s contracted projects including: Shanghai Yangming Hill City, Nanjing Hilton International Hotel, Singapore Red Hill City, etc.

SC’s products mainly include: chemical products, pesticides, garments and medicines.

SC sources its merchandises 20% from the overseas market and 80% from domestic market. SC sells 20% of its merchandises in domestic market, and 80% to overseas market.

The buying terms of SC include Check, L/C, 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.

Note: SC’s management declined to release its main clients and suppliers.

SC is known to have the following subsidiaries at present:

Overseas Development Co.

Add: 9F, Golden Eagle Hanzhong New Building, No. 1 Hanzhongmen Street, Nanjing.

Tel: 025- 86569810

China Jiangsu Int’l Economic Technical Cooperation Corp., Overseas Development Co. is mainly engaged in self import and export on various commodities and agent services. Its business covers agrochemicals, pharmaceutics, intermediate, health protection products and so on. Its business has expanded rapidly recently and it has established business relationship with more than 30 countries and regions.

International Engineering Construction Co.

Highway & Bridge Engineering Co.

Decoration Engineering Co.

Continental Engineering Co.

Asia-Pacific Regional Engineering Co.

Tianjia Engineering Construction Co.

Construction Co.

Nanjing Construction Co.

Nantong Co.

Nanjing No.1 Co.

Zhongjiang (S) Shanghai Co.

International Human Resources Co.

Overseas Economic & Technical Co.

Foreign Trade Co.

Hengtai International Trade Co.

Import & Export Trading Co.

Overseas Trading Co.

Chemicals Import & Export Co.

Shanghai Pudong Co.

Light Industrial Products & Textiles Import & Export Co.

East Africa Co.

Congo Republic Co.

Angola Co.

Zimbabwe Co.

Namibia Co.

Zambia Co.

Guinea Co.

Sudan Co.

Botswana Co.

Malawi Co.

Mauritius Co.

Singapore Co.

Middle East Co.

U.A.E Co.

Iran Co.

Russia Co.

Papua New Guinea Co.

Peru Co.

Japan Office Co.

South Korea Co.

Jiangsu International Economic Cooperation Co.

Jiangsu Mindu Construction Enterprise Development Co., Ltd.

Jiangsu Zhongjiang Overseas Economic & Technical Co., Ltd.

Jiangsu Shopping Center for Chinese Expatriates

Jiangsu Jintaco International Trading Co., Ltd.

China Jiangsu (Mauritius) International Co., Ltd.

JIC (Cal.) Inc.

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 Jiangsu Province Branch

AC#：800100003908091001

Relationship: Normal.

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2009	As of Dec. 31, 2010
Cash & bank	403,890	385,740
Bills receivable	8,550	35,470
Inventory	368,390	478,230
Accounts receivable	208,250	187,520
Other Accounts receivable	816,340	744,820
Advances to suppliers	249,660	305,690
Other current assets	200,990	178,330
	------------------	------------------
Current assets	2,256,070	2,315,800
Fixed assets	39,590	41,170
Long term investment	261,990	264,420
Other assets	760	12,230
	------------------	------------------
Total assets	2,558,410	2,633,620
	=============	=============
Short loans	109,450	124,490
Bills payable	146,770	166,890
Accounts payable	184,690	201,190
Advances from clients	659,960	488,720
Other Accounts payable	925,630	1,085,500
Salaries payable	16,610	14,470
Taxes payable	-19,170	-15,540
Other current liabilities	18,790	32,070
	------------------	------------------
Current liabilities	2,042,730	2,097,790
Long term liabilities	64,950	58,520
Other liabilities	0	0
	------------------	------------------
Total liabilities	2,107,680	2,156,310
Equities	450,730	477,310
	------------------	------------------
Total liabilities & equities	2,558,410	2,633,620
	=============	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2009	As of Dec. 31, 2010
Turnover	2,081,200	2,298,500
Cost of goods sold	1,960,610	2,190,440
Sales expense	55,520	63,540
Management expense	45,930	51,120
Finance expense	3,100	4,520
Other expense	640	0
Other income	0	34,660
Profit before tax	15,400	23,540
Less: profit tax	0	5,370
Profits	15,400	18,170

Note: The above financial for Yr2010 have not been audited. SC’s management declined to release the latest financial information.

Important Ratios

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

	As of Dec. 31, 2009	As of Dec. 31, 2010
*Current ratio	1.10	1.10
*Quick ratio	0.92	0.88
*Liabilities to assets	0.82	0.82
*Net profit margin (%)	0.74	0.79
*Return on total assets (%)	0.60	0.69
*Inventory /Turnover ×365	65 days	76 days
*Accounts receivable/Turnover ×365	37 days	30 days
*Turnover/Total assets	0.81	0.87
* Cost of goods sold/Turnover	0.94	0.95

PROFITABILITY: AVERAGE

l The turnover of SC appears fairly good in 2009, and it increased in 2010.

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

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

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

LIQUIDITY: AVERAGE

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

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

l The inventory of SC appears fairly large in both years.

l The accounts receivable of SC appears average in both years.

l The short-term loan of SC is maintained in an average level in both years.

l SC’s turnover is in an average level in both years, comparing with the size of its total assets.

LEVERAGE: FAIR

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

l The risk for SC to go bankrupt is low.

Overall financial condition of the SC: Fairly Stable.

SC is well-known in its industry with fairly stable financial conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.84
UK Pound	1	Rs.88.55
Euro	1	Rs.72.63

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.