MIRA INFORM REPORT

Report Date :

21.01.2012

IDENTIFICATION DETAILS

Name :	GUANGZHOU GUOJING TRADING CO., LTD.

Registered Office :	Room 210, No. 81, Liurong Road, Yuexiu District, Guangzhou, Guangdong Province 510180 Pr

Country :	China

Financials (as on) :	31.12.2010

Date of Incorporation :	03.03.1993

Com. Reg. No.:	440104000194989

Legal Form :	Limited Liabilities Company

Line of Business :	International Trade

No. of Employees :	09

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 15,000

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^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

GUANGZHOU GUOJING TRADING CO., LTD.

ROOM 210, NO. 81, LIURONG ROAD, YUEXIU DISTRICT

GUANGZHOU, GUANGDONG PROVINCE 510180 PR CHINA

TEL: 86 (0) 20-83391065

FAX: 86 (0) 20-83301163

EXECUTIVE SUMMARY

Date of Registration : MARch 3, 1993

REGISTRATION NO. : 440104000194989

LEGAL FORM : Limited liabilities company

CHIEF EXECUTIVE : CHENG XIAOHUA (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 500,000

staff : 9

BUSINESS CATEGORY : TRADING

Revenue : CNY 374,400,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 1,150,000 (AS OF DEC. 31, 2010)

WEBSITE : N/A

E-MAIL : N/A

PAYMENT : AVERAGE

Recommended Credit Limit: UP TO USD 15,000

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : FAIRly stable

OPERATIONAL TREND : fairly STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.31 = 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

SC was established as a limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 440104000194989 on March 3, 1993.

SC’s registered capital: CNY 500,000

SC’s paid-in capital: CNY 500,000

Registration Change Record:

Date	Change of Contents	Before the change	After the change
--	Registration No.	4401042005153	440104000194989

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

Name of Shareholder (s)	% of Shareholding
Xu Xin	49
Cheng Xiaohua	51

SC’s Chief Executives:-

Position	Name
Legal Representative, Chairman, and General Manager	Cheng Xiaohua
Supervisor	Xu Xin

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Xu Xin 49

Cheng Xiaohua 51

MANAGEMENT

Cheng Xiaohua, 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

Xu Xin, Supervisor

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

Ø Gender: M

Ø Qualification: University

BUSINESS OPERATION

SC’s registered business scope includes wholesaling and retailing trade; importing and exporting commodities; business information advisory.

SC is mainly engaged in international trade.

SC’s products mainly include: food, etc.

SC sources its materials 10% from domestic market and 90% from overseas market. SC sells 95% in domestic market and 5% to overseas market, mainly Canada.

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, L/C and Credit of 30-60 days.

*Major Customer:

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

Macco Organiques Inc. (Canada)

Staff & Office:

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

SC is known to have approx. 9 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 the 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 SAIC.

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2009	As of Dec. 31, 2010
Cash	13,160	14,050
Accounts receivable	0	0
Advances to suppliers	450	460
Other receivable	520	280
Inventory	1,080	30
Non-current assets within one year	0	0
Other current assets	0	0
	------------------	------------------
Current assets	15,210	14,820
Fixed assets	50	20
Construction in progress	0	0
Deferred income tax assets	0	0
Other non-current assets	0	0
	------------------	------------------
Total assets	15,260	14,840
	=============	=============
Short-term loans	0	0
Notes payable	0	0
Accounts payable	8,420	8,520
Wages payable	0	0
Taxes payable	-2,140	-1,030
Advances from clients	7,490	5,970
Other payable	180	170
Other current liabilities	160	60
	------------------	------------------
Current liabilities	14,110	13,690
Non-current liabilities	0	0
	------------------	------------------
Total liabilities	14,110	13,690
Equities	1,150	1,150
	------------------	------------------
Total liabilities & equities	15,260	14,840
	=============	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2010
Revenue	374,400
Cost of sales	370,070
Sales expense	1,460
Management expense	1,240
Finance expense	1,930
Non-business income	40
Non-business expense	0
Profit before tax	260
Less: profit tax	60
Profits	200

Important Ratios

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

	As of Dec. 31, 2009	As of Dec. 31, 2010
*Current ratio	1.08	1.08
*Quick ratio	1.00	1.08
*Liabilities to assets	0.92	0.92
*Net profit margin (%)	--	0.05
*Return on total assets (%)	--	1.35
*Inventory / Revenue ×365	--	1 day
*Accounts receivable/ Revenue ×365	--	--
* Revenue/Total assets	--	25.23
* Cost of sales / Revenue	--	0.99

FINANCIAL COMMENTS

PROFITABILITY: AVERAGE

l The revenue of SC appears fairly good in its line in 2010.

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

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

l SC’s cost of goods sold is high, 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 fairly good level in both years.

l The inventory of SC is maintained in an average level.

l SC has no accounts receivable in both years.

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

l SC’s revenue is in a fairly good level, comparing with the size of its total assets.

LEVERAGE: FAIR

l The debt ratio of SC is 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. A credit line up to USD 15,000 would appear to be within SC’s capacities.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.50.33
UK Pound	1	Rs.77.97
Euro	1	Rs.65.07

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.