MIRA INFORM REPORT

Report Date :

04.07.2012

IDENTIFICATION DETAILS

Name :	RHEIN CHEMIE (QINGDAO) LIMITED

Registered Office :	No. 43, Siliu North Road, Licang District, Qingdao, Shandong Province, 266043 Pr

Country :	China

Date of Incorporation :	05.12.1995

Com. Reg. No.:	370200400040479

Legal Form :	Chinese-Foreign Equity Joint Venture Enterprise

Line of Business :	manufacturing and selling rubber processing aids

No. of Employees :	170

RATING & COMMENTS

MIRA’s Rating :

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

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 – March 31^st, 2012

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

China

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

Company name & address

Rhein Chemie (Qingdao) Limited

no. 43, siliu north road, licang district, qingdao,

shandong PROVINCE, 266043 PR CHINA

TEL: 86 (0) 532-84821670 / 84829109 FAX: 86 (0) 532-84821671

EXECUTIVE SUMMARY

INCORPORATION DATE : Dec. 5, 1995

REGISTRATION NO. : 370200400040479

REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE

CHIEF EXECUTIVE : DR. ANNO BORKOWSKY (CHAIRMAN)

STAFF STRENGTH : 170

REGISTERED CAPITAL : USD 9,000,000

BUSINESS LINE : MANUFACTURING

TURNOVER : N/A

EQUITIES : N/A

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.35 = 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 Renminbi

Note: SC’s correct tel. & fax no. should be the heading ones.

SC was registered as a Chinese-foreign equity joint venture enterprise at local Administration for industry & commerce (AIC - the official body of issuing and renewing business license) on Dec. 5, 1995.

Company Status: Chinese-foreign equity joint venture enterprise

This form of business in PR China is defined as a legal person. It is a limited co. jointly invested by one or more foreign companies and one or more PR China controlled companies within the territories of PR China according to a certain proportion of capital investment. The investing parties exercise business management, share profits and bear all risks and liabilities of the co. together. The equity joint venture law requires that foreign party contribute not less than 25% of the registered capital, with no maximum. The investing parties are free to agree on method of profit distribution and liabilities bearing according to the proportion of capital investment. Each investing parties contributes funds, tangible assets, technology & etc. The board of directors excises the high authority. The joint venture usually has a limited duration of 10 to 50 years. Enterprise with large investment, long construction periods, low investment returns, introducing of advanced technology & advanced technology products that have good competition position in international market may extend beyond the 50 years limit.

SC’s registered business scope includes [manufacturing: m dihydroxy benzene-80, yellow lead-80, Dibutyl tin dilaurate, N,N-Dimethylcyclohexylamine]. Manufacturing and selling additives used in rubber processing industry, additives used in the mineral oil industry and additives used in polyurethane and plastic industries and after sales services; wholesaling, importing and exporting the above products, and acting as an commission agent for it.

SC is mainly engaged in manufacturing and selling rubber processing aids.

Dr. Anno Borkowsky is legal representative and chairman of SC at present.

SC is known to have approx. 170 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Qingdao. The detailed information of the premise is unspecified.

http://www.rheinchemie.com the website belongs to Rhein Chemie Rheinau GmbH, and it includes the information on SC and its related companies. The design is professional and the content is well organized. At present it is in Chinese, English, Japanese and other versions.

E-mail: wei.liu@rheinchemie.com

No significant events or changes were found during our checks with the local Administration for Industry and Commerce.

MAIN SHAREHOLDERS:

Name % of Shareholding

Qingdao Red Star Chemical Group Co., Ltd. 10

Lanxess Hong Kong Limited 90

Qingdao Red Star Chemical Group Co., Ltd.

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

Qingdao Red Star Chemical Group Co., Ltd. mainly operates barium, strontium and manganese three inorganic salt series products.

Registered no.: 370200018053791

Legal representative: Jiang Zhiguang

Tel: 0532-82850016

Fax: 0532-82830410

http://www.redstarchem.com

Lanxess Hong Kong Limited

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

CR No.: 0005229

Date of Incorporation: 12-Sep.-1958

Company Status: Private

Active Status: Live

Legal representative and Chairman:

Dr. Anno Borkowsky is currently responsible for the overall management of SC.

Working Experience(s):

Dr. Anno Borkowsky is CEO and President of Rhein Chemie, a position he has held since June 2002.

Dr. Borkowsky began his career with Rhein Chemie Rheinau GmbH in February 1999 as Executive Vice President. He was soon promoted to Regional Manager Europe and Chief Technology Officer before accepting his current role as CEO and President.

Prior to his career at Rhein Chemie, Dr. Borkowsky joined Bayer AG in Leverkusen, Germany as Unit Manager. In September 1995, he transferred to Bayer Corp., in Orange, Texas, USA as Operations Manager.

Dr. Borkowsky earned his Biological Technical Assistant Degree in 1981. He went on to obtain a Master of Chemistry and Ph. D. in Chemistry from University of Cologne, Germany.

At present Working in SC as legal representative and chairman.

Vice Chairman:

Mr. Jiang Zhiguang is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as vice chairman

Also working in Qingdao Red Star Chemical Group Co., Ltd. as legal representative

Director:

Martin Kraemer

Note: the given contact person Mr. Liu Wei is SC’s employee.

SC is mainly engaged in manufacturing and selling rubber processing aids.

SC’s products mainly include: rubber processing aids.

SC sources its materials 70% from domestic market, and 30% from overseas market. SC sells 70% of its products in domestic market, and 30% to overseas 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, L/C and Credit of 30-60 days.

Note: SC’s management declined to release its customer and supplier details.

· Rhein Chemie Japan Ltd.

Rhein Chemie Argentina S.A.

Rhein Chemie Uruguay S.A.

Etc.

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.

SC’s management declined to release its bank details.

We have contacted with Mr. Liu Wei, but he refused to confirm the given bank information:

China Construction Bank.

A/C: 01-14-2210-21000318

SC’s financial reports were not found during our checks with the local Administration for Industry and Commerce.

SC’s management declined to release any financial information.

SC is considered medium-sized in its line with a development history of 17 years.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.81
UK Pound	1	Rs.86.04
Euro	1	Rs.69.62

INFORMATION DETAILS

Report Prepared by :

MNL

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.