MIRA INFORM REPORT

Report Date :

19.01.2012

IDENTIFICATION DETAILS

Name :	HELKAMA BICA (SHANGHAI) CO., LTD.
Registered Office :	Plot 1-2, Minhang Export Processing Zone, no. 3111 Huancheng West Road, Fengxian District, Shanghai, 201401 PR
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	28.11.2005
Com. Reg. No.:	310000400448147
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Manufacturing and selling cable products.
No. of Employees :	120

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	usd 70,000
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 – 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 address

HELKAMA BICA (SHANGHAI) CO., LTD.

PLOT 1-2, MINHANG EXPORT PROCESSING ZONE, NO. 3111 HUANCHENG WEST ROAD, FENGXIAN DISTRICT, SHANGHAI, 201401 PR CHINA

TEL: 86 (0) 21-33655333

FAX: 86 (0) 21-33655331

EXECUTIVE SUMMARY

INCORPORATION DATE : NOV. 28, 2005

REGISTRATION NO. : 310000400448147

REGISTERED LEGAL FORM : Wholly foreign-owned enterprise

CHIEF EXECUTIVE : MR. ESA VEIJALAINEN (legal representative)

STAFF STRENGTH : 120

REGISTERED CAPITAL : usd 3,700,000

BUSINESS LINE : manufacturing

TURNOVER : CNY 69,795,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 18,940,000 (AS OF DEC. 31, 2010)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO usd 70,000 (periodical review)

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : FAIR

OPERATIONAL TREND : FAIR

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.3621 = USD

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 wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Nov. 28, 2005.

Company Status: Wholly foreign-owned enterprise

This form of business in PR China is defined as a legal person. It is a limited co. established within the territories of PR China with capital provided totally by the foreign investors. More than one foreign investors may jointly invest in a wholly foreign-owned enterprise. The investing party/parties solely exercise management, reap profit and bear risks and liabilities by themselves. This form of companies usually have a limited duration is extendible upon approval of Examination and Approval Authorities.

SC’s registered business scope includes development, design, assembly, and manufacturing electronic fiber optic cable and related products, selling its products and providing after-sales service; import, export, wholesale and commission agency (excluding auction) of the above products and related raw materials, accessories, machinery and equipment, semi-finished products. (with permit if needed).

SC is mainly engaged in manufacturing and selling cable products.

Mr. Esa Veijalainen is legal representative and general manager of SC at present.

SC is known to have approx. 120 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the Export Processing Zone of Shanghai. Our checks reveal that SC rents the total premise about 8,000 square meters.

http://helkamabica.cn The design is professional and the content is well organized. At present the web site is in English, Chinese and French versions.

E-Mail: sales@helkamabica.cn

Tax Registration No.: 310226782833647

Code Organization: 78283364-7

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
Unknown	Registration No.	039933	Present one
	Legal representative	Timo Vesala	Present one

MAIN SHAREHOLDERS:

Name % of Shareholding

Helkama Bica Oy (Finland) 100

Helkama has been making cables for over forty years, exporting products to all corners of the globe.

Helkama is committed to meet customer requirements in quality, availability and service. Helkama is widely acclaimed as a reliable supplier.

During the fiscal year 2010, export accounted for 76% of sales revenues. Helkama exported to 54 countries.

In addition to marine cables, Helkama makes optical fibre, instrumentation and fire resistant cables. The company has production facilities in Kaarina and Hanko in Finland and in Shanghai in China. For more information, see Helkama Bica Fiscal Period 2010.

The roots of Helkama companies go back a century. Over the years Helkama companies have successfully managed to keep abreast of the times, making each rank among the leading companies of its kind.

Helkama Bica Oy is a member of Helkama Emotor Group.

Business ID: 22989534

Legal representative: Mr. Markku Hamalainen

Address: Lasitehtaankatu 12, FI-10960 HANKO, Finland

Tel: +358 2 410 8700 (switchboard)

Fax: +358 19 248 2016

Web: http://www.helkamabica.fi

E-mail: sales@helkamabica.fi

l Legal representative and general manager:

Mr. Esa Veijalainen is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as Legal representative and general manager.

E-mail: esa.veijalainen@helkamabica.fi

l Chairman:

Mr. Timo Vesala is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as chairman.

SC is mainly engaged in manufacturing and selling cable products.

SC’s products mainly include: marine cables.

SC sources its materials 50% from domestic market and 50% from overseas market. SC sells 20% of its products in domestic market, and 80% to overseas market.

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

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.

Bank of China Shanghai Fengxian Sub-branch

AC#: 14259408091001

Relationship: Normal.

Balance Sheet

Unit: CNY’000

	as of Dec. 31, 2010	as of Dec. 31, 2009
Cash & bank	3,496	12,965
Inventory	28,975	32,036
Accounts receivable	2,810	2,194
Other Accounts receivable	702	951
Advances to suppliers	842	781
Other current assets	0	0
	------------------	------------------
Current assets	36,825	48,927
Fixed assets net value	18,256	17,579
Projects under construction	0	3,642
Long term investment	0	0
Intangible assets	196	0
Long-term deferred expenses	104	0
Other assets	0	0
	------------------	------------------
Total assets	55,381	70,148
	=============	=============
Short loans	27,153	28,679
Accounts payable	7,594	3,877
Other Accounts payable	0	68
Advances from clients	1,211	3,037
Accrued payroll	0	0
Interest payable	173	238
Other current liabilities	0	0
	------------------	------------------
Current liabilities	36,131	35,899
Long term liabilities	0	5,592
Long-term accounts payable	310	454
Other liabilities	0	0
	------------------	------------------
Total liabilities	36,441	41,945
Equities	18,940	28,203
	------------------	-----------------
Total liabilities & equities	55,381	70,148
	=============	=============

Income Statement

Unit: CNY’000	as of Dec. 31, 2010	as of Dec. 31, 2009
Turnover	69,795	80,135
Cost of goods sold	53,714	49,134
Sales expense	7,732	10,901
Management expense	17,169	15,971
Finance expense	560	1,295
Non-operating income	122	76
Non-operating expense	6	85
Profit before tax	-9,264	2,825
Less: profit tax	0	0
Profits	-9,264	2,825

Important Ratios

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

	As of Dec. 31, 2010	As of Dec. 31, 2009
*Current ratio	1.02	1.36
*Quick ratio	0.22	0.47
*Liabilities to assets	0.66	0.60
*Net profit margin (%)	-13.27	3.53
*Return on total assets (%)	-16.73	4.03
*Inventory /Turnover ×365	152 days	146 days
*Accounts receivable/Turnover ×365	15 days	10 days
*Turnover/Total assets	1.26	1.14
* Cost of goods sold/Turnover	0.77	0.61

PROFITABILITY: POOR

l The turnover of SC appears average in its line in both two years, but it declined in 2010.

l SC’s net profit margin is average in 2009 but poor in 2010.

l SC’s return on total assets is average in 2009 but poor in 2010.

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

LIQUIDITY: FAIR

l The current ratio of SC is maintained in a normal level in 2009 but fair in 2010.

l SC’s quick ratio is maintained in a fair level in 2009 but poor in 2010.

l The inventory of SC is maintained in a large level in both two years.

l The accounts receivable of SC appears small in 2009 but average in 2010.

l SC’s short-term loan is large in both two years.

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

LEVERAGE: AVERAGE

l The debt ratio of SC is average.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fair.

SC is considered medium-sized in its line with fair financial conditions. The large amount of inventory and short-term loan could be a threat to SC’s financial condition. A credit line up to USD 70,000 would appear to be within SC’s capacities upon a periodical review basis.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.50.66
UK Pound	1	Rs.77.72
Euro	1	Rs.64.63

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.