MIRA INFORM REPORT

Report Date :

03.05.2012

IDENTIFICATION DETAILS

Name :	APL (BEIJING) EXIM cO., lTD.
Registered Office :	A-1505, Tianyuangang Center, No. C2, East 3^rd Ring North Road, Chaoyang District, Beijing 100027 Pr
Country :	China
Financials (as on) :	31.12.2011
Date of Incorporation :	16.11.2009
Com. Reg. No.:	110000450117237
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Engaged in selling machinery equipment.
No. of Employees :	30

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

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 (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

APL (BEIJING) EXIM cO., lTD.

A-1505, TIANYUANGANG CENTER, NO. C2, EAST 3^RD RING NORTH ROAD,

chaoyang DISTRICT, BEIJING 100027 PR CHINA

TEL: 86 (0) 10-84417889

FAX: 86 (0) 10-84417859

EXECUTIVE SUMMARY

INCORPORATION DATE : NOV. 16, 2009

REGISTRATION NO. : 110000450117237

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : MR. LA BADI (IN CHINESE PINYIN) (CHAIRMAN)

STAFF STRENGTH : 30

REGISTERED CAPITAL : USD 1,000,000

BUSINESS LINE : TRADING

TURNOVER : CNY 1,037,220,000 (AS OF DEC. 31, 2011)

EQUITIES : CNY 28,920,000 (AS OF DEC. 31, 2011)

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.2814 = USD

Adopted abbreviations

ANS - amount not stated

NS - not stated

SC - subject company (the company inquired by you)

NA - not available

CNY - China Yuan Renminbi

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. 16, 2009.

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 investor 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 wholesale and related after-sale service of daily necessities, machinery equipment, hardware and electronic products; technology development and consulting service; importing & exporting commodities and technology, agent for import & export.

SC is mainly engaged in selling machinery equipment.

Mr. La Badi (in Chinese pinyin) is legal representative and chairman of SC at present.

SC is known to have approx. 30 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Beijing. SC’s employee refused to release the detailed information of the premise.

Note: SC also has the other operating address – No. 248, West Chuangyi Road, East of Economic Development Zone, Tongzhou District, Beijing

SC is not known to host website of its own at present.

No significant events or changes were found during our checks with local AIC.

MAIN SHAREHOLDERS:

Name % of Shareholding

Silu’an Machinery Equipment Trade Co., Ltd. (East Free Trade Zone) (in Chinese pinyin)

100

l Legal Representative and Chairman:

Mr. La Badi (in Chinese pinyin), Indian, he is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative and chairman.

l Directors:

Jiang Rongjiang

Ka Latu (in Chinese pinyin)

l Supervisor:

Jia Dingsha (in Chinese pinyin)

SC is mainly engaged in selling machinery equipment.

SC’s products mainly include: machinery equipment.

SC sources its materials 100% from domestic market. SC sells 100% of its products to overseas market.

The buying terms of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include Check, L/C, T/T and Credit of 30-60 days.

Note: SC’s management refused to release its main clients and suppliers.

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.

SC declined to release its banking details.

Financial Summary

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

Unit: CNY’000

	As of Dec. 31, 2011
Current assets	253,560
Total assets	254,450
	=========
Current liabilities	225,530
Non-current liabilities	0
	--------------
Total liabilities	225,530
Equities	28,920
	--------------
Total liabilities & equities	254,450
	=========
Turnover	1,037,220
Cost of goods sold	982,050
Profit before tax	31,780
Less: profit tax	8,200
Profits	23,580

Note: we did not find SC’s detailed financial reports for Yr 2011.

Important Ratios

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

	As of Dec. 31, 2011
*Current ratio	1.12
*Quick ratio	/
*Liabilities to assets	0.89
*Net profit margin (%)	2.27
*Return on total assets (%)	9.27
*Inventory /Turnover ×365	/
*Accounts receivable/Turnover ×365	/
*Turnover/Total assets	4.08
* Cost of goods sold/Turnover	0.95

PROFITABILITY: FAIRLY GOOD

l The turnover of SC appears good in its line.

l SC’s net profit margin remains in an average level.

l SC’s return on total assets remains in a fairly good level.

l SC’s cost of goods sold is fairly high, comparing with its turnover.

LIQUIDITY: AVERAGE

l The current ratio of SC is maintained in a normal level.

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

LEVERAGE: FAIR

l The debt ratio of SC is high.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly stable.

SC is considered medium-sized in its line with fairly stable financial conditions. A credit line up to USD 200,000 appears to be within SC’s capacities.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.93
UK Pound	1	Rs.85.85
Euro	1	Rs.69.94

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.