MIRA INFORM REPORT

Report Date :

02.05.2012

IDENTIFICATION DETAILS

Name :	FAM SYSTEM CO.,LTD.
Registered Office :	RM 2391, Building 1, No. 5500, Yuanjiang Rd, Minhang Dist, Shanghai City.
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	26.02.2010
Com. Reg. No.:	310112000959546
Legal Form :	One-Member Company Limited
Line of Business :	Wholesale and sales of feed raw materials and additives.
No. of Employees :	20

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 :	Moderate
Payment Behaviour :	Unknown
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 (31.12.2011)	Current Rating (31.03.2012)
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 and address

FAM SYSTEM CO.,LTD.
RM 1907&1908, No.2, Lane 58, Xinjian East Rd, Minhang Dist, Shanghai City
201199
Tel :	86 21 34972178
Fax:	86 21 34972177
Website:	www.fam-system.com

Currency in this report is Chinese Yuan unless otherwise stated.

Exchange Rate: 1 USD=6.29 Chinese Yuan

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

Notes

1. The address provided in the order isn’t accurate. The accurate one is as listed in the report.

2. Due to recent intervention of government in the AIC systems, reports of companies in some regions will be impacted for a certain period. And for the companies registered in Shanghai, shareholder information can’t be obtained.

3. The shareholder information listed in the report is from telephone investigation.

4. With asset liability ratio of 2010 exceeding 100%, SC’s liability is higher than its assets. However, SC was established in 2010 and its current financial information can’t reflect its operation status well. Thus we recommend the client to pay attention to SC’s performance in the following years.

EXECUTIVE SUMMARY

DATE OF establishment	FEB.26^th, 2010
Aic Registration No.	310112000959546
REGISTERED LEGAL FORM	one-member Company limited
REGISTERED CAPITAL	500,000.00
main BUSINESS	Wholesale and sales of feed raw materials and additives.
SIC Code (China)	6312Wholesale of seeds and feed.
employees	20
import and export permits	yes
business scale	Small
operation trend	Average
TURNOVER	1,531,000.00 (As of Dec.31^st, 2010)
net profit	-1,295,000.00 (As of Dec.31^st, 2010)
total assets	3,255,000.00 (As of Dec.31^st, 2010)
net worth	-795,000.00 (As of Dec.31^st, 2010)
base Credie limit	0
EXCHANGE RATE	1 Usd=6.29CNY (aPR 28^TH, 2012)

REGISTRATION

Name	FAM SYSTEM CO.,LTD.
AIC Registration Number	310112000959546
Registered address	RM 2391, Building 1, No. 5500, Yuanjiang Rd, Minhang Dist, Shanghai City.
Operation address	RM 1907&1908, No.2, Lane 58, Xinjian East Rd, Minhang Dist, Shanghai City
Date of Establishment	Feb 26^th, 2010
Registry	Administration Bureau of Industry and Commerce –Minhang, Shanghai
Legal Representative	Zhong Shi
Registered Legal Form	one-member Company limited
Registered Capital	500,000.00
Operating Duration	From Feb 26^th, 2010 to Feb.25^th, 2020
Changes in Registration	N/A

One-member Company limited.

This kind of company is solely invested by one natural person or one legal entity with the minimum capital of RMB100,000. The registered capital should be wholly paid up when registering.

The shareholder of this company mustn’t invest other one-member company limited.

The shareholder bears limited liability to the company’s risk according to the amount invested. However, when debt liability happens, if the shareholder cannot prove that his/her personal property is independent from the company’s property, he/she should undertake joint libility of the company’s debts.

SHAREHOLDERS AND SHARES

As indicated in the following table:

Shareholder	Capital Subscribed	Percentage
Zhong Shi	500,000.00	100%
Total	500,000.00	100%

Shareholder	Way of Investment	Paid-up Percentage
Zhong Shi	--	100%

AFFILIATE(S)

No affiliates of subject company is found after checking.

MANAGEMENT

Name	Zhong Shi
Gender	Male
Title	Legal representative

BANKERS INFORMATION

N/A

OFFICE FACILITIES

Geographic Location	RM 1907&1908, No.2, Lane 58, Xinjian East Rd, Minhang Dist, Shanghai City
Area	500 square meters
Environment and traffic	Acceptable
Property Ownership	Rented

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 and sales of feed raw materials and additives.
Products and services	SC mainly deals with wholesale and sales of feed raw materials and additives. Its products include feed additives, vitamin, enzyme preparation, flavomycin, oxytetracycline, etc. In addition, according to SC also deals with sales of feeding equipment, slaughter equipment, etc.
Annual production capacity	--
Certificates	--

SALES INFORMATION

Local sales	70%
Regions	All over China
Major domestic clients	BEIJING ZHENGDA LIVESTOCK AND POULTRY SCIENCE AND TECHNOLOGY CO. LTD, etc.
Payment terms	Prompt payment; on credit
Export	30%
Regions	Europe, America etc.
Major overseas clients	--
Payment terms	L/C, T/T
According to SC’s staff, SC’s business is done in many countries and regions. However, its sales network needs to be further developed due to its recent establishment.
The above information was confirmed by SC’s employee on April.28^th, 2012.

PURCHASE INFORMATION

Main Commodities Purchased	Feed processing machinery, feed additives, etc.
Region	Local: 60% Import: 40%
Number of Major Suppliers	More than 5
Major suppliers	JIANGSU MUYANG GROUP CO. LTD, etc.
Main Terms of Payment	Local: Prompt payment; on credit Import: L/C, T/T
SC’s products and equipment are purchased both domestically and internationally. Its overseas suppliers are from Turkey, Spain, Netherland, etc.
The above information was confirmed by SC’s employee on April.28^th, 2012.

CREDIT

Name of supplier	JIANGSU MUYANG GROUP CO. LTD, etc.
Main commodities and service supplied	Feed processing machinery.
Title of interviewee	Sales staff.
Telephone of Interviewee	86 514 87848888
Cooperation	Confirmed
Payment comment	Prompt
Date of interview	April.28^th, 2012

LITIGATION RECORDS

After checking with China Court organization, the local court website and other major searching websites, no litigation record related to subject company in the latest three years is found.

FINANCE

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

	Dec. 31^st, 2010
Current assets
Money capital	3,065
Short-term investment
Notes receivable
Net ball of Account Receivable	-3
Payment in advance
Subsidy Receivable
Other Account Receivable	96
Inventory	6
Expenses to be deferred
Other current assets
Export rebates receivable
Total current Assets	3,164
Long-term investment
Long-term investment
Original value of fixed assets	58
Accumulated depreciation	3
Net fixed assets	55
Fixed assets depreciation reserve
Net Value of Fixed Assets	55
Fixed assets in liquidation
Projects being constructed
Fixed assets losses in suspense
Total fixed assets	55
Intangible assets and deferred assets
Intangible assets	36
Deferred assets
Total intangible and deferred assets	36
Other long-term assets
Other long-term assets
Total assets	3,255
Current liabilities
Short-term loans
Notes payable
Account payable	-81
Deposit received	332
Other accounts payable	3,803
Wages payable
Welfare payable
Tax unpaid	-4
Unpaid profit
Accrued expenses
L/T debt due in 1 year
Other current liabilities
Total current liabilities	4,050
L/T liabilities
L/T loans
Bonds payable
L/T account payable
Total L/T liabilities	0
Deferred tax
Deferred tax
Total liabilities	4,050
Owner’s interest
Paid-up capital	500
Contributed surplus
Surplus reserves
Unconfirmed investment loss
Undistributed profits	-1,295
Minority interest
Total owner’s interest	-795
Liabilities and owner’s interest	3,255

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

	Dec. 31^st, 2010
Main business income	1,531
Main business cost	1,418
Tax and associate charge
Main business profit	113
Other business profit
Operation expenses	1,075
- management expenses	331
Financial expenses	4
Operation profit	-1,297
Investment profit
Subsidy income
Non business income	2
- non business expenses
Prior year income adjustment
Total profit	-1,295
- income tax	0
Minority stock holder’s interest
Net profit	-1,295

Important Ratios:

	2010
Return on net assets (%)	--
Return on total assets (%)	-39.78
Net profit margin (%)	-84.59
Turnover of total assets	0.47
Turnover of current assets	0.48
Turnover of account receivable	-510.33
Inventory turnover	236.33
Asset liability ratio (%)	124.42
Current ratio	0.78
Quick ratio	0.78

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

	2010
Main business income	1,531
Total profit	-1,295
Net profit	-1,295
Total assets	3,255
Total liabilities	4,050
Total owner’s interest	-795
Source from	government
Whether audited or not	Yes

Analysis of financial indicator

Long-term solvency: poor

Short-term solvency: poor

Asset security: poor

Inventory status: good

Capital turnover: poor

Debt recovery status:--

Profitability: poor

Return on assets (ROA): poor

Enterprise background: average

Payment records: good

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.51
UK Pound	1	Rs.85.49
Euro	1	Rs.69.61

INFORMATION DETAILS

Report Prepared by :

PDT

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.