MIRA INFORM REPORT

Report Date :

03.02.2012

IDENTIFICATION DETAILS

Name :	XIAMEN YALI STONE CO., LTD
Registered Office :	RM2701&2710, Block C, Xinjing Center, Siming District, Xiamen City, Fujian Province
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	06.04.2006
Com. Reg. No.:	350206200086586
Legal Form :	Limited Liabilities Company
Line of Business :	Wholesale of Stone Material
No. of Employees :	20

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 :	500,000.00 Chinese Yuan
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 – 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

XIAMEN YALI STONE CO., LTD
RM2701&2710, Block C, Xinjing Center, Siming District, Xiamen City, Fujian Province
361012
Tel :	86 592 5111036
Fax:	86 592 5111037
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-20002” is the previous address of subject’s related company Shanghai Yali Stone Co., Ltd.

2. The given address “M-1205, NO-65, Haitian Road, Huli District, Xiamen-361006, china” is subject’s previous address.

EXECUTIVE SUMMARY

DATE OF establishment	APR.6^th, 2006
Aic Registration No.	350206200086586
REGISTERED LEGAL FORM	limited liabilities company
REGISTERED CAPITAL	10,000,000.00
main BUSINESS	wholesale of stone material
SIC Code (China)	6365 wholesale of building material
employees	20
import and export permits	yes
business scale	Average
operation trend	Average
TURNOVER	43,153,000.00 (As of Dec.31^st, 2010)
net profit	48,000.00 (As of Dec.31^st, 2010)
total assets	12,437,000.00 (As of Dec.31^st, 2010)
net worth	10,092,000.00 (As of Dec.31^st, 2010)
base Credie limit	500,000.00
EXCHANGE RATE	1 Usd=6.30CNY (feb.2^nd, 2012)

REGISTRATION

Name	XIAMEN YALI STONE CO., LTD
AIC Registration Number	350206200086586
Registered address	Room 2701, No.25 Jiahe Road, Siming Dist, Xiamen City
Operation address	RM2701&2710, Block C, Xinjing Center, Siming District, Xiamen City, Fujian Province
Date of Establishment	Apr.6^th, 2006
Registry	Administration Bureau of Industry and Commerce – Siming District, Xiamen
Legal Representative	Dou Yangjun
Registered Legal Form	limited liabilities company
Registered Capital	10,000,000.00
Operating Duration	From Apr.6^th, 2006 to Apr.6^rd, 2026
Changes in Registration	1. July.31^st, 2006 Subject’s address was changed from 27ABC, Free Trade Zone, Xiangyu, Xiamen To Room 1205, No.65 Haitian Road, Huli Dist, Xiamen. 2. July.20^th, 2010 Subject company's registered capital was increased from 1,000,000 Chinese Yuan to 10,000,000 Chinese Yuan. 3. Dec.20th, 2011 Subject’s address was changed to the current address. 4. Subject holds a previous registration No. of 3502062030324.

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
CHEN GUOKUAN	5,000,000.00	50%
DOU YANGJUN	5,000,000.00	50%
Total	10,000,000.00	100%

Shareholder	Way of Investment	Paid-up Percentage
CHEN GUOKUAN	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.	310110196601303815
Name	Chen Guokuan
Gender	Male
Date of birth	July.8^th, 1964
National ID No.	440527196407080855

AFFILIATE(S)

Name	SHANGHAI YALI STONE CO., LTD.
Registration address	RM703B, Block D Jinying Building, No.1518, Minsheng Road, Pudong New District, Shanghai City
Registration No.	310107000279892
Relationship with subject	Related company
Main business	Business supporting

.

MANAGEMENT

Name	Dou Yangjun
Gender	Male
Title	Executive director; General manager
Date of birth	Jan.30^th, 1966
National ID No.	310110196601303815
Name	Chen Guokuan
Gender	Male
Title	Supervisor
Date of birth	July.8^th, 1964
National ID No.	440527196407080855

BANKERS INFORMATION

Bank name	Agricultural Bank of China –Siming Sub-branch (Xiamen)
Account No. (CNY)	--
Source of information	Subject’s staff

OFFICE FACILITIES

Geographic Location	RM2701&2710, Block C, Xinjing Center, Siming District, Xiamen City, Fujian Province
Area	500 square meters
Environment and traffic	Average
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	Wholesale of stone material
Products and services	Subject mainly sells stone materials purchased from India, USA, Brazil and Europe. Its main products include India Red, Black Galaxy, India Blue, English Brown etc.
Annual sales volume	500,000 tons
Certificates	--

SALES INFORMATION

Local sales	100%
Regions	All over China
Major domestic clients	Stone processing factories
Payment terms	Prompt payment; on credit
Subject’s products are mainly sold within China. With certain history, it has accumulated certain amount of customers.
The above information was confirmed by SC’s employee on Feb.2^nd, 2012.

PURCHASE INFORMATION

Main Commodities Purchased	Stone material
Region	Import: 100%
Number of Major Suppliers	More than 5
Major suppliers	--
Main Terms of Payment	Import: L/C, T/T
Subject’s stones are mainly purchased from India, USA etc. It has fixed suppliers in India.
The above information was confirmed by SC’s employee on Feb.2^nd, 2012.

CREDIT

Subject’s suppliers are mainly foreign companies. Hence 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	788	4,686
Short-term investment
Notes receivable
Net ball of Account Receivable	2,251	6,354
Payment in advance
Subsidy Receivable
Other Account Receivable		993
Inventory	853	183
Expenses to be deferred		60
Other current assets
Export rebates receivable
Total current Assets	3,892	12,276
Long-term investment
Long-term investment
Original value of fixed assets	378	382
Accumulated depreciation	153	235
Net fixed assets	225	147
Fixed assets depreciation reserve
Net Value of Fixed Assets	225	147
Fixed assets in liquidation
Projects being constructed
Fixed assets losses in suspense
Total fixed assets	225	147
Intangible assets and deferred assets
Intangible assets
Deferred assets	28	14
Total intangible and deferred assets	28	14
Other long-term assets
Other long-term assets
Total assets	4,145	12,437
Current liabilities
Short-term loans
Notes payable
Account payable	1,419	1,108
Deposit received	460	0
Other accounts payable	1,140	1,240
Wages payable
Welfare payable
Tax unpaid	54	-3
Unpaid profit
Accrued expenses
L/T debt due in 1 year
Other current liabilities	1
Total current liabilities	3,074	2,345
L/T liabilities
L/T loans
Bonds payable
L/T account payable
Total L/T liabilities	0	0
Deferred tax
Deferred tax
Total liabilities	3,074	2,345
Owner’s interest
Paid-up capital	1,000	10,000
Contributed surplus
Surplus reserves
Unconfirmed investment loss
Undistributed profits	71	92
Minority interest
Total owner’s interest	1,071	10,092
Liabilities and owner’s interest	4,145	12,437

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

	Dec. 31^st, 2009	Dec. 31^st, 2010
Main business income	36,211	43,153
Main business cost	34,505	42,015
Tax and associate charge	16	32
Main business profit	1,690	1,106
Other business profit
Operation expenses	751	190
- management expenses	790	855
Financial expenses	91	-9
Operation profit	58	70
Investment profit
Subsidy income
Non business income	30
- non business expenses	12	22
Prior year income adjustment
Total profit	76	48
- income tax	0	0
Minority stock holder’s interest
Net profit	76	48

Important Ratios:

	2009	2010
Return on net assets (%)	7.10	0.48
Return on total assets (%)	1.83	0.39
Net profit margin (%)	0.21	0.11
Turnover of total assets	8.74	3.47
Turnover of current assets	9.30	3.52
Turnover of account receivable	16.09	6.79
Inventory turnover	40.45	229.59
Asset liability ratio (%)	74.16	18.86
Current ratio	1.27	5.23
Quick ratio	0.99	5.16

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

	2009	2010
Main business income	36,211	43,153
Total profit	76	48
Net profit	76	48
Total assets	4,145	12,437
Total liabilities	3,074	2,345
Total owner’s interest	1,071	10,092
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: good

Capital turnover: good

Debt recovery status: average

Profitability: poor

Return on assets (ROA): poor

Enterprise background: average

Payment records: --

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.13
UK Pound	1	Rs.77.85
Euro	1	Rs.64.75

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.