MIRA INFORM REPORT

Report Date :

02.02.2012

IDENTIFICATION DETAILS

Name :	SHANGHAI YALI STONE CO., LTD
Registered Office :	RM703B, Block D, Jinying Building, No.1518 Minsheng Road, Pudong New District, Shanghai City 200135
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	23.12.1999
Com. Reg. No.:	310107000279892
Legal Form :	Limited Liabilities Company
Line of Business :	Business Support For The Related Company
No. of Employees :	5

RATING & COMMENTS

MIRA’s Rating :

B

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

Maximum Credit Limit :	800.00 Chinese Yuan
Status :	Small Company
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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 and address

SHANGHAI YALI STONE CO., LTD
RM703B, Block D, Jinying Building, No.1518 Minsheng Road, Pudong New District, Shanghai City
200135
Tel :	86 21 50338877 / 13801745823
Fax:	--
E-mail:
Website:

Currency in this report is Chinese Yuan unless otherwise stated.

Exchange Rate: 1 USD=6.30 Chinese Yuan

"--"in this report indicates "unavailable" due to insufficient information or "no comments"

Notes:

1. The given address “RM-28-D, No-3, LN-38, Haihua Garden, Dapu Road, Shanghai-200023” is subject’s previous address. Its current address is as listed in the report.

2. The address of “M-1205, NO-65, Haitian Road, Huli District, Xiamen” belongs to subject’s related company in Xiamen City.

EXECUTIVE SUMMARY

DATE OF establishment	DEC.23^RD, 1999
Aic Registration No.	310107000279892
REGISTERED LEGAL FORM	limited liabilities company
REGISTERED CAPITAL	500,000.00
main BUSINESS	business support for the related company
SIC Code (China)	7419 other enterprise management service
employees	5
import and export permits	NO
business scale	Small
operation trend	Average
TURNOVER	56,000.00 (As of Dec.31^st, 2010)
net profit	2,000.00 (As of Dec.31^st, 2010)
total assets	503,000.00 (As of Dec.31^st, 2010)
net worth	502,000.00 (As of Dec.31^st, 2010)
base Credie limit	800.00
EXCHANGE RATE	1 Usd=6.30 CNY (feb.1^st, 2012)

REGISTRATION

Name (local)	上海雅利石材有限公司
Name (English)	SHANGHAI YALI STONE CO., LTD
AIC Registration Number	310107000279892
Registered address	Room 623, No.4, Lane 3199 Zhenbei Road, Putuo Dost, Shanghai
Operation address	RM703B, Block D Jinying Building, No.1518, Minsheng Road, Pudong New District, Shanghai City
Date of Establishment	Dec.23^rd, 1999
Registry	Administration Bureau of Industry and Commerce – Putuo, Shanghai
Legal Representative	Dou Yangjun
Registered Legal Form	limited liabilities company
Registered Capital	500,000.00
Operating Duration	From Dec.23^rd, 1999 to Dec.22^nd, 2019
Changes in Registration	Jan.14^th, 2010 Subject company's Registration No. was changed from 3101072005841 to 310107000279892.

Limited liabilities co.

This form of business in PR China is defined as a legal person. Its registered capital is contributed jointly by at least two shareholders and no more than fifty. 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 listed as follows:

-manufacturing co. : RMB 500,000.00

-trading &wholesaling co. : RMB 500,000.00

-retailing co. : RMB 300,000.00

-consultancy & service co. : RMB 100,000.00

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 50% of the registered capital while contribution by intangible assets must not exceed 20% 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.

REGISTRATION INFO: AVAILABLE

FINANCIAL REPORTS: AVAILABLE

SHAREHOLDERS AND SHARES

As indicated in the following table:

Shareholder	Capital Subscribed	Percentage
Li Fengying	50,000.00	10%
Dou Yangjun	450,000.00	90%
Total	500,000.00	100%

Shareholder	Way of Investment	Paid-up Percentage
Li Fengying	Capital	100%
Dou Yangjun	Capital	100%

Background of major shareholder

Name	Dou Yangjun
Gender	Male
Date of birth	Jan.30^th, 1966
National ID No.	310110660130381
Name	Li Fengying
Gender	Female
Date of birth	Nov.23^rd, 1943
National ID No.	310110431123502

AFFILIATE(S)

Name	XIAMEN YALI STONR MATERIALS CO. LTD
Registration address	Room 2701 and 2710, Building C, New View Centre, No.25 Jiahe Road, Siming Dist, Xiamen City
Registration No.	350206200086586
Percentage held by subject	Related company
Main business	Sales of stone materials

MANAGEMENT

Name	Dou Yangjun
Gender	Male
Title	Legal Representative
Date of birth	Jan.30^th, 1966
National ID No.	310110660130381

BANKERS INFORMATION

Bank name	Shanghai rural commercial bank–Zhenbei Sub-branch (Shanghai)
Account No. (CNY)	32458108010118755
Source of information	Government channel

OFFICE FACILITIES

Geographic Location	RM703B, Block D, Jinying Building, No.1518 Minsheng Road, Pudong New District, Shanghai City
Area	150 square meters
Environment and traffic	Acceptable
Property Ownership	Rented

TRADEMARKS & PATENTS

After checking with the Trademark Office of Chinese Administration Bureau of Industry and Commerce and the State Intellectual Office, no trademarks or patents of SC were found.

MAIN PRODUCTS & SERVICES

Main business	Business supporting service
Products and services	Subject mainly provides business supporting service for its related company “XIAMEN YALI STONE MATERIALS CO, LTD” including legal documents, import / export documents, contracts etc. It does no actual sales business.
Annual production capacity	N/A
Certificates	N/A

SALES INFORMATION

Local sales	100%
Regions	Xiamen
Major domestic clients	XIAMEN YALI STONE MATERIALS CO, LTD
Payment terms	Prompt payment; on credit
Subject’s is mainly in charge of document treating business rather than sales.
The above information was confirmed by SC’s employee on Feb.1^st, 2012.

PURCHASE INFORMATION

Main Commodities Purchased	Office facility
Region	Local: 100%
Number of Major Suppliers	More than 3
Major suppliers	--
Main Terms of Payment	Prompt payment; on credit
Subject does no operational purchase. It mainly purchases office facilities locally.
The above information was confirmed by SC’s employee on Feb.1^st, 2012.

CREDIT

Subject has no fixed suppliers. No payment comment from the supplier can be provided in this report.

LITIGATION RECORDS

After checking with China Court organization, the local court website and other major searching websites, no litigation record related to subject company in the latest three years is found.

FINANCE

Balance Sheet (Unit: 1,000 Chinese Yuan):

	Dec. 31^st, 2009	Dec. 31^st, 2010
Current assets
Money capital	1	75
Short-term investment
Notes receivable
Net ball of Account Receivable	11	145
Payment in advance
Other Account Receivable	500	186
Inventory
Other current assets
Export rebates receivable
Total current Assets	512	406
Long-term investment
Long-term investment
Original value of fixed assets
Accumulated depreciation
Net fixed assets	0	0
Fixed assets depreciation reserve
Net Value of Fixed Assets	0	0
Fixed assets in liquidation
Fixed assets losses in suspense
Total fixed assets	0	0
Intangible assets and deferred assets
Intangible assets
Deferred assets		97
Total intangible and deferred assets	-	97
Other long-term assets
Other long-term assets
Total assets	512	503
Current liabilities
Short-term loans
Notes payable
Account payable
Deposit received
Other accounts payable	10
Wages payable
Welfare payable
Tax unpaid		1
Other current liabilities
Total current liabilities	10	1
L/T liabilities
L/T loans
Bonds payable
L/T account payable
Total L/T liabilities	0	0
Deferred tax
Deferred tax
Total liabilities	10	1
Owner’s interest
Paid-up capital	500	500
Contributed surplus
Surplus reserves
Unconfirmed investment loss
Undistributed profits	2	2
Minority interest
Total owner’s interest	502	502
Liabilities and owner’s interest	512	503

Income Statement (Unit: 1,000 Chinese Yuan):

	Dec. 31^st, 2009	Dec. 31^st, 2010
Main business income	24	56
Main business cost
Tax and associate charge	1
Main business profit	23	56
Other business profit
Operation expenses
- management expenses	22	54
Financial expenses
Operation profit	1	2
Investment profit
Subsidy income
Non business income
- non business expenses
Prior year income adjustment
Total profit	1	2
- income tax	0	1
Minority stock holder’s interest
Net profit	1	1

Important Ratios:

	2009	2010
Return on net assets (%)	0.20	0.20
Return on total assets (%)	0.20	0.20
Net profit margin (%)	4.17	1.79
Turnover of total assets	0.05	0.11
Turnover of current assets	0.05	0.14
Turnover of account receivable	2.18	0.39
Inventory turnover
Asset liability ratio (%)	1.95	0.20
Current ratio	51.20	406.00
Quick ratio	51.20	406.00

Major Financial Information (Unit: 1,000 Chinese Yuan):

	2009	2010
Main business income	24	56
Total profit	1	2
Net profit	1	1
Total assets	512	503
Total liabilities	10	1
Total owner’s interest	502	502
Source from	government	government
Whether audited or not	Yes	Yes

Analysis of financial indicator

Long-term solvency: good

Short-term solvency: good

Asset security: good

Inventory status: --

Capital turnover: average

Debt recovery status: poor

Profitability: average

Return on assets (ROA): poor

Enterprise background: average

Payment records: --

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.53
UK Pound	1	Rs.77.95
Euro	1	Rs.64.66

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.