MIRA INFORM REPORT

Report Date :

11.02.2012

IDENTIFICATION DETAILS

Name :	TOP INDUSTRY (CHENGDU) CO., LTD.

Registered Office :	No. 9, South Section 3 Yihuan Road, Chengdu, Sichuan Province 610041 Pr

Country :	China

Financials (as on) :	31.12.2011

Date of Incorporation :	21.06.2002

Com. Reg. No.:	510107000266138

Legal Form :	Limited Liabilities Company

Line of Business :	Selling mechanical & electrical equipment

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 2,000
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

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

Company name and address

TOP INDUSTRY (CHENGDU) CO., LTD.

NO. 9, SOUTH SECTION 3 YIHUAN ROAD,

CHENGDU, SICHUAN PROVINCE 610041 PR CHINA

TEL: 86 (0) 28-85288896/85288996/85288976/86316292/86316289/86316689/28855349

FAX: 86 (0) 28-86316689

EXECUTIVE SUMMARY

Date of Registration : june 21, 2002

REGISTRATION NO. : 510107000266138

LEGAL FORM : Limited liabilities company

CHIEF EXECUTIVE : gong chang (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : cny 500,000

staff : 10

BUSINESS CATEGORY : trading

Revenue : CNY 2,290,000 (AS OF DEC. 31, 2011)

EQUITIES : CNY 592,000 (AS OF DEC. 31, 2011)

WEBSITE : www.topindustry.com

E-MAIL : topgroup@tfol.com & grouptop@yahoo.com

PAYMENT : AVERAGE

Recommended Credit Limit: UP TO USD 2,000 (PERIODICAL REVIEW)

MARKET CONDITION : FAIR

FINANCIAL CONDITION : FAIRly stable

OPERATIONAL TREND : ORDINARY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.29 = USD 1

Adopted abbreviations (as follows)

SC - Subject Company (the company inquired by you)

N/A – Not available

CNY – China Yuan Ren Min Bi

OPERATIONAL TREND & GENERAL REPUTATION

This section aims at indicating the relative positions of SC in respect of its operational trend & general reputation

Operational Trend:- General Reputation:-

Upward Excellent

Steady Good

Fairly Steady Fairly Good

Ordinary Average

Fair Fair

Stagnant Detrimental

Downward Not known

Not known Not yet be determined

Not yet be determined

LEGAL STATUS & HISTORY

***Note: the given address is same location as No. 1, Four Section of Renmin South Road, Chengdu, Sichuan Province 610041 PR China

SC was established as a limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 510107000266138 on June 21, 2002.

SC’s Organization Code Certificate No.: 74030454-4

SC’s Tax No.: 510107740304544

SC’s registered capital: cny 500,000

SC’s paid-in capital: cny 500,000

Registration Change Record:

No significant changes of SC have been noted in SAIC since its incorporation.

Current Co search indicates SC’s shareholders & chief executives are as follows:-

Name of Shareholder (s)	% of Shareholding
Gong Chang	60
Ning Huofang	40

SC’s Chief Executives:-

Position	Name
Legal Representative, Chairman, and General Manager	Gong Chang
Supervisor	Ning Huofang

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Gong Chang 60

Ning Huofang 40

MANAGEMENT

Gong Chang , Legal Representative, Chairman and General Manager

------------------------------------------------------------------------------------------------

Ø Gender: M

Ø Qualification: University

Ø Working experience (s):

At present, working in SC as legal representative, chairman and general manager

Ning Huofang , Supervisor

---------------------------------------------

Ø Gender: F

Ø Qualification: University

BUSINESS OPERATION

SC’s registered business scope includes manufacturing and selling electronic components; selling various mechanical & electrical products, minerals, machinery, hardware, metal materials, rubber, chemicals, electric tools, meters & instruments, computer & peripheral equipment, household appliance, electronic products, modern office supplies, motorcycle & components, communication equipment, building materials, knitting goods & textiles, garment, shoes & hats, furniture, and grocery; enterprise marketing plan; importing and exporting commodities and technology.

SC is mainly engaged in selling mechanical & electrical equipment.

SC’s products mainly include:

Woodworking machinery

Beverage and water filling line

Welding machine

Impregnation line

WPC products

Press machine

Water well screen pipe

Other machinery equipment

SC sources its materials 100% from domestic market. SC sells 40% of its products in domestic market, and 60% to overseas market, mainly Southeast Asia.

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

Staff & Office:

--------------------------

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

SC rents an area as its operating office of approx. 120 sq. meters at the heading address.

RELATED COMPANY

SC is not known to have any subsidiary at present.

PAYMENT

Overall payment appraisal:

( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.

BANKING

The bank information of SC is not filed in local SAIC.

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2010	As of Dec. 31, 2011
Cash	857	687
Accounts receivable	1,245	1,575
Advances to suppliers	459	274
Export drawback receivable	0	0
Other receivable	1,040	819
Subsidy receivable	44	17
Inventory	0	0
Deferred expense	0	0
Non-current assets within one year	0	0
Other current assets	0	0
	------------------	------------------
Current assets	3,645	3,372
Fixed assets	0	0
Intangible assets	0	0
Long-term prepaid expenses	0	0
Deferred income tax assets	0	0
Other non-current assets	0	0
	------------------	------------------
Total assets	3,645	3,372
	=============	=============
Short-term loans	0	0
Notes payable	0	0
Accounts payable	166	125
Wages payable	0	0
Taxes payable	-12	2
Advances from clients	2,843	2,575
Other payable	69	78
Other current liabilities	0	0
	------------------	------------------
Current liabilities	3,066	2,780
Non-current liabilities	0	0
	------------------	------------------
Total liabilities	3,066	2,780
Equities	579	592
	------------------	------------------
Total liabilities & equities	3,645	3,372
	=============	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2010	As of Dec. 31, 2011
Revenue	4,735	2,290
Cost of sales	3,024	1,670
Sales expense	1,063	92
Management expense	798	512
Finance expense	7	0
Profit before tax	-47	17
Less: profit tax	0	2
Profits	-47	15

Important Ratios

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

	As of Dec. 31, 2010	As of Dec. 31, 2011
*Current ratio	1.19	1.21
*Quick ratio	1.19	1.21
*Liabilities to assets	0.84	0.82
*Net profit margin (%)	-0.99	0.66
*Return on total assets (%)	-1.29	0.44
*Inventory / Revenue ×365	--	--
*Accounts receivable/ Revenue ×365	96 days	252 days
* Revenue/Total assets	1.30	0.68
* Cost of sales / Revenue	0.64	0.73

FINANCIAL COMMENTS

PROFITABILITY: AVERAGE

l The revenue of SC appears average in its line, it decreased significantly in 2011.

l SC’s net profit margin is fair in 2010, and average in 2011.

l SC’s return on total assets is fair in 2010, and appears average in 2011.

l SC’s cost of goods sold is average, comparing with its revenue.

LIQUIDITY: AVERAGE

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

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

l SC has no inventory in both years.

l The accounts receivable of SC appears large.

l SC has no short-term loans in both years.

l SC’s revenue is in a fair level, 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 average.

Overall financial condition of the SC: Fairly Stable.

CONCLUSIONS

SC is considered small-sized in its line with fairly stable financial conditions. The large amount of accounts receivable may be a threat to SC’s financial condition. A credit line up to USD 2,000 is recommended upon a periodical review basis.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.64
UK Pound	1	Rs.78.35
Euro	1	Rs.65.79

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.