MIRA INFORM REPORT

Report Date :

20.01.2012

IDENTIFICATION DETAILS

Name :	TIANJIN JULONG TRADE CO., LTD
Registered Office :	No. 136, The 5th Coastal Way, Tianjin Port Free Trade Zone, Tianjin City
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	22.11.1999
Com. Reg. No.:	120113000040908
Legal Form :	Limited Liabilities Company
Line of Business :	Wholesale of edible oil
No. of Employees :	10 persons

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Poor
Payment Behaviour :	Slow
Litigation :	----

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	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

TIANJIN JULONG TRADE CO., LTD
No. 136, The 5th Coastal Way, Tianjin Port Free Trade Zone, Tianjin City
300461
Tel :	86 22 28133117 / 18622115696
Fax:	86 22 25763167
E-mail:	--
Website:	http://www.longwit.cn

Currency in this report is Chinese Yuan unless otherwise stated.

Exchange Rate: 1 USD=6.31 Chinese Yuan

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

EXECUTIVE SUMMARY

DATE OF establishment	NOV.22^ND, 1999
Aic Registration No.	120113000040908
REGISTERED LEGAL FORM	limited liabilities company
REGISTERED CAPITAL	150,000,000.00
main BUSINESS	wholesale of edible oil
SIC Code (China)	6321 wholesale of rice, flour products and edible oil.
employees	10
import and export permits	yes
business scale	Large
operation trend	Average
TURNOVER	2,268,066,000.00 (As of Dec.31^st, 2010)
net profit	61,079,000.00 (As of Dec.31^st, 2010)
total assets	1,795,843,000.00 (As of Dec.31^st, 2010)
net worth	-96,198,000.00 (As of Dec.31^st, 2010)
base Credie limit	0
EXCHANGE RATE	1 Usd=6.31CNY (dec.26^th, 2011)

REGISTRATION

Name	TIANJIN JULONG TRADE CO., LTD
Local Name	天津市聚龙贸易有限公司
AIC Registration Number	120113000040908
Registered address	North Tanhei Road, Beichen District, Tianjin City
Operation address	No. 136, The 5th Coastal Way, Tianjin Port Free Trade Zone, Tianjin City
Date of Establishment	Nov.22^nd, 1999
Registry	Administration Bureau of Industry and Commerce – Beichen, Tianjin
Legal Representative	Yang Xuejiang
Registered Legal Form	limited liabilities company
Registered Capital	150,000,000.00
Operating Duration	From Nov.22^nd, 1999 to Nov.21^st, 2019
Changes in Registration	1. Jan.6^th, 2011 Subject’s registered capital was increased from 120,000,000 to 150,000,000 CNY. 2. Subject holds a previous registration No. of 1201132001672.

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
YANG XUEJIANG	34,380,000.00	22.92%
TIANJIN JULONG JIAHUA INVESTMENT GROUP CO. LTD	58,500,000.00	39%
YAN ZHICHENG	57,120,000.00	38.08%
Total	150,000,000.00	100%

Shareholder	Way of Investment	Paid-up Percentage
YANG XUEJIANG	Capital	100%
TIANJIN JULONG JIAHUA INVESTMENT GROUP CO. LTD	Capital	100%
YAN ZHICHENG	Capital	100%

Background of major shareholder

Name	TIANJIN JULONG JIAHUA INVESTMENT GROUP CO. LTD
Address	16Fl, Block A, Youyi Building, No.50 Youyi Road, Hexi District, Tianjin City
Main business	Investment management

AFFILIATE(S)

Name of related company	Tianjin Longwit Oils & Grains Industrial Co., Ltd.
Registration address	No. 136, The 5th Coastal Way, Tianjin Port Free Trade Zone, Tianjin City
Registration No.	120000400057970
Main business	Processing of edible oil

MANAGEMENT

Name	Yang Xuejiang
Gender	Male
Title	Legal representative

BANKERS INFORMATION

Bank name	Agricultural Bank of China –Beichen Sub-branch (Tianjin)
Account No. (CNY)	040001040008286
Source of information	Government

OFFICE FACILITIES

Geographic Location	No. 136, The 5th Coastal Way, Tianjin Port Free Trade Zone, Tianjin City
Area	200 square meters
Environment and traffic	Average
Property Ownership	Unknown

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 edible oil
Products and services	Subject is engaged in wholesale of edible oil including palm oil, soil bean oil, peanut oil etc. which are widely used in food processing industry.
Annual production capacity	--
Certificates	--

SALES INFORMATION

Local sales	100%
Regions	All over China
Major domestic clients	INNER MONGOLIA MENGNIU DAIRY (GROUP) CO.,LTD.; INNER MONGOLIA YILI INDUSTRIAL GROUP CO.,LTD.
Payment terms	Prompt payment; on credit
SC’s products are all sold domestically. Its clients are mainly food processing companies. With years of history, subject’s customer network is sufficient and its sales volume is large.
The above information was confirmed by SC’s employee on Dec.26^th, 2011.

PURCHASE INFORMATION

Main Commodities Purchased	Palm oil, soil bean oil, peanut oil etc.
Region	Local: 90% Import: 10%
Number of Major Suppliers	More than 5
Major suppliers	Tianjin Longwit Oils & Grains Industrial Co., Ltd.
Main Terms of Payment	Local: Prompt payment; on credit Import: L/C, T/T
Subject is mainly engaged in the trading business of its related company Tianjin Longwit Oils & Grains Industrial Co., Ltd.
The above information was confirmed by SC’s employee on Dec.26^th, 2011.

CREDIT

Subject is operated at the same address with its related company and major supplier Tianjin Longwit Oils & Grains Industrial Co., Ltd. Hence no payment comment from the supplier can be provided in this report.

LITIGATION RECORDS

Name of person subject to enforcement	TIANJIN JULONG TRADE CO. LTD
Court	People’s Court of Beichen District, Tianjin City
File date	Feb.3^rd, 2007
File No.	(2007) Chen Zhi Zi 00183
Amount	1,139 CNY
Status	Closed

FINANCE

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

	Dec. 31^st, 2009	Dec. 31^st, 2010
Current assets
Money capital	238,435	754,217
Short-term investment
Notes receivable
Net ball of Account Receivable	-6,727	55,762
Payment in advance	289,841	355,575
Subsidy Receivable
Other Account Receivable	487,261	293,598
Inventory	32,995	93,646
Expenses to be deferred
Other current assets
Export rebates receivable
Total current Assets	1,041,805	1,552,798
Long-term investment
Long-term investment	221,880	240,593
Original value of fixed assets	1,291	1,325
Accumulated depreciation	474	611
Net fixed assets	817	714
Fixed assets depreciation reserve
Net Value of Fixed Assets	817	714
Fixed assets in liquidation
Projects being constructed	1,737	1,738
Fixed assets losses in suspense
Total fixed assets	2,554	2,452
Intangible assets and deferred assets
Intangible assets
Deferred assets
Total intangible and deferred assets	-	-
Other long-term assets
Other long-term assets
Total assets	1,266,239	1,795,843
Current liabilities
Short-term loans	221,142	513,150
Notes payable	120,000	440,000
Account payable	857,582	652,766
Deposit received	39,624	111,706
Other accounts payable	241,467	184,758
Wages payable
Welfare payable
Tax unpaid	824	-10,659
Unpaid profit
Other fees payable	31
Accrued expenses	-27,221	320
L/T debt due in 1 year
Other current liabilities
Total current liabilities	1,453,449	1,892,041
L/T liabilities
L/T loans
Bonds payable
L/T account payable
Total L/T liabilities	0	0
Deferred tax
Deferred tax
Total liabilities	1,453,449	1,892,041
Owner’s interest
Paid-up capital	120,000	150,000
Contributed surplus
Surplus reserves	46	46
Unconfirmed investment loss
Undistributed profits	-307,256	-246,244
Minority interest
Total owner’s interest	-187,210	-96,198
Liabilities and owner’s interest	1,266,239	1,795,843

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

	Dec. 31^st, 2009	Dec. 31^st, 2010
Main business income	2,168,507	2,268,066
Main business cost	2,216,688	2,159,745
Tax and associate charge	233	295
Main business profit	-48,414	108,026
Other business profit
Operation expenses	10,888	20,680
- management expenses	2,157	1,779
Financial expenses	14,374	24,378
Operation profit	-75,833	61,189
Investment profit
Subsidy income	5,830
Non business income	1,627	3
- non business expenses	1
Prior year income adjustment
Total profit	-68,377	61,192
- income tax	0	113
Minority stock holder’s interest
Net profit	-68,377	61,079

Important Ratios:

	2009	2010
Return on net assets (%)	36.52	-63.49
Return on total assets (%)	-5.40	3.40
Net profit margin (%)	-3.15	2.69
Turnover of total assets	1.71	1.26
Turnover of current assets	2.08	1.46
Turnover of account receivable	-322.36	40.67
Inventory turnover	67.18	23.06
Asset liability ratio (%)	114.78	105.36
Current ratio	0.72	0.82
Quick ratio	0.69	0.77

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

	2009	2010
Main business income	2,168,507	2,268,066
Total profit	-68,377	61,192
Net profit	-68,377	61,079
Total assets	1,266,239	1,795,843
Total liabilities	1,453,449	1,892,041
Total owner’s interest	-187,210	-96,198
Source from	government	government
Whether audited or not	Yes	Yes

Analysis of financial indicator

Long-term solvency: poor

Short-term solvency: below average

Asset security: poor

Inventory status: good

Capital turnover: average

Debt recovery status: good

Profitability: average

Return on assets (ROA): average

Enterprise background: good

Payment records: --

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.50.28
UK Pound	1	Rs.77.60
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.