MIRA INFORM REPORT

Report Date :

08.02.2012


Tel. No.:	0086 536 7617958
Fax No.:	0086 536 7617958

IDENTIFICATION DETAILS

Name :	WEIFANG GUANHONG ECONOMIC AND TRADING CO., LTD.

Registered Office :	West Of Masu Village, Qingchi Jieban, High-Tech Development Zone, Weifang, Shandong Province, 261205 Pr

Country :	China

Financials (as on) :	31.12.2010

Date of Incorporation :	12.01.2010

Com. Reg. No.:	370726200009693

Legal Form :	Limited Liabilities Company

Line of Business :	importing and selling coconut fiber

No. of Employees :	10

RATING & COMMENTS

MIRA’s Rating :

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

Maximum Credit Limit :	USD 4,000

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^th, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

China

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

Company name & address

weifang guanhong economic and trading Co., Ltd.

west of masu village, qingchi jieban, high-tech development zone, weifang, shandong

PROVINCE, 261205 PR CHINA

TEL: 86 (0) 536-7617958/7610198 FAX: 86 (0) 536-7617958

EXECUTIVE SUMMARY

INCORPORATION DATE : jan. 12, 2010

REGISTRATION NO. : 370726200009693

REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY

CHIEF EXECUTIVE : MR. wang wenrui (CHAIRMAN)

STAFF STRENGTH : 10

REGISTERED CAPITAL : CNY 1,000,000

BUSINESS LINE : TRADING

TURNOVER : CNY 530,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 983,000 (AS OF DEC. 31, 2010)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 4,000

MARKET CONDITION : FAIR

FINANCIAL CONDITION : FARILY STABLE

OPERATIONAL TREND : fairLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.3015 = 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

SC was registered as a Limited Liability Company at local Administration for industry & commerce (AIC - the official body of issuing and renewing business license) on Jan. 12, 2010.

Company Status: Limited liabilities co.

This form of business in PR China is defined as a legal person. No more than fifty shareholders contribute its registered capital jointly. 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 CNY 30,000.

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 30% 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.

SC’s registered business scope includes importing and exporting goods and technology permitted by the state, but excluding the item forbidden by the government. (Shelter rental period as of Jan. 9, 2015)

SC is mainly engaged in importing and selling coconut fiber.

Mr. Wang Wenrui has been legal representative, chairman and general manager of SC since 2010.

SC is known to have approx. 10 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and storage in the high-tech development zone of Weifang. Our checks reveal that SC rents the total premise about 300 square meters.

SC is not known to host website of its own at present.

Changes of its registered information are as follows:

Date of change

Item

Before the change

After the change

2010-6

Registered capital

CNY 500,000

Present amount

Shareholding

Wang Wenrui 60%

Yang Li 40%

Wang Wenrui 30%

Yang Li 70%

MAIN SHAREHOLDERS:

Name % of Shareholding

Wang Wenrui

ID# 370704196207200814 30

Yang Li

ID# 370703197712250060 70

Legal Representative, Chairman & General Manager:

Mr. Wang Wenrui ID# 370704196207200814, born in 1962, with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

From 2010 to present Working in SC as legal representative, chairman and general manager

SC is mainly engaged in importing and selling coconut fiber.

SC’s products mainly include coconut fiber.

SC sources its materials 100% from overseas market, mainly Vietnam. SC sells 100% of its products in domestic market.

The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days. The payment terms of SC include Check, T/T and Credit of 30-60 days.

Note: SC refused to release its main supplier and customer.

SC is not known to have any subsidiary at present.

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.

Agricultural Bank of China Weifang Branch

AC#428601040003815

Relationship: Normal

Financial Information

Unit: CNY’000

	as of Dec. 31, 2010
Total liabilities	7
Equities	983
	--------------
Total assets	990
	=========
Turnover	530
Profit before tax	-13
Profit tax	5
Profits	-18

Note: SC’s detailed financial reports for Yr2010 were not found in local AIC.

Important Ratios

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

	as of Dec. 31, 2010
*Liabilities to assets	0.01
*Net profit margin (%)	-3.40
*Return on total assets (%)	-1.82
*Turnover/Total assets	1.54

PROFITABILITY: FAIR

l The turnover of SC appears fair in its line.

l SC’s net profit margin is fair.

l SC’s return on total assets is fair.

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 low.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly Stable.

SC is considered small-sized in its line with fairly stable financial conditions. A credit line up to USD 4,000 would appear to be within SC’s capacities.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.48.92
UK Pound	1	Rs.77.31
Euro	1	Rs.64.12

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.