MIRA INFORM REPORT

Report Date :

03.05.2012

IDENTIFICATION DETAILS

Name :	FOSHAN JUNJING INDUSTRIAL CO. LTD
Registered Office :	4 Fl, Jinqiao Building, Huayuan East Rd, Foshan City, Guangdong Province 528000
Country :	China
Financials (as on) :	31.12.2011
Date of Incorporation :	16.07.1996
Com. Reg. No.:	440602000140538
Legal Form :	Limited Liabilities Company
Line of Business :	Sales of Building Materials and Decoration Materials.
No. of Employees :	50

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	No Complaints
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 – March 31^st, 2012

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

FOSHAN JUNJING INDUSTRIAL CO. LTD

4 Fl, Jinqiao Building, Huayuan East Rd, Foshan City, Guangdong Province.

528000

Tel : 86 757 83207033/ 83356836 

Fax: 86 757 83808873

Website: http://www.fsjunjing.com/

Currency in this report is Chinese Yuan unless otherwise stated.

Exchange Rate: 1 USD=6.28 Chinese Yuan

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

Note:

Due to the recent intervention of government in the AIC systems, reports of companies in some regions could be impacted for a certain period, and for the companies registered in Guangdong, shareholder information couldn’t be obtained.

EXECUTIVE SUMMARY

DATE OF establishment	July 16^th, 1996
Aic Registration No.	440602000140538
REGISTERED LEGAL FORM	limited liabilities company
REGISTERED CAPITAL	5,000,000.00 CNY
main BUSINESS	Sales of building materials and decoration materials.
SIC Code (China)	6365 Wholesale of building materials.
employees	50
import and export permits	yes
business scale	Big
operation trend	Average
TURNOVER	1,441,981,000.00 (As of Dec.31^st, 2011)
net profit	3,818,000.00 (As of Dec.31^st, 2011)
total assets	295,031,000.00 (As of Dec.31^st, 2011)
net worth	23,766,000.00 (As of Dec.31^st, 2010)
EXCHANGE RATE	1 Usd=6.28CNY (apr 28^th, 2012)

REGISTRATION

Name	FOSHAN JUNJING INDUSTRIAL CO. LTD
AIC Registration Number	440602000140538
Registered address	4 Fl, Jinqiao Building, Huayuan East Rd, Foshan City, Guangdong Province.
Operation address	4 Fl, Jinqiao Building, Huayuan East Rd, Foshan City, Guangdong Province.
Date of Establishment	July 16^th, 1996
Registry	Administration Bureau of Industry and Commerce – Chancheng (Foshan)
Legal Representative	Li Baojian
Registered Legal Form	LIMITED LIABILIES COMPANY
Registered Capital	5,000,000.00 CNY.
Operating Duration	Unlimited operating period.
Business Scope	Import and export of goods and technologies (excluding those forbidden by government); Sales of metal materials, chemical raw materials, tires, electronic components, cotton products, lights, hardware, metal materials, shoes, audio equipments, etc; Processing and manufacture of cotton products, shoes, audio equipments, flower and plant seedlings.
Changes in Registration	N/A

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

N/A

AFFILIATE(S)

No affiliates of subject company is found after checking.

MANAGEMENT

Name	Li Baojian
Gender	Male
Title	Legal Representative

BANKERS INFORMATION

SC’s bank information can’t be obtained after searching through all available channels.

OFFICE FACILITIES

Geographic Location	4 Fl, Jinqiao Building, Huayuan East Rd, Foshan City, Guangdong Province.
Area	1000 square meters
Environment and traffic	Acceptable
Property Ownership	Rended

TRADEMARKS

Total trademarks	13 (only the latest 3 are listed)
Registration No.	8186025
Registration date	April 7^th, 2010
Image
Registration No.	7971197
Registration date	Jan 5^th, 2010
Image
Registration No.	6019029
Registration date	April 25^th, 2007
Image

PATENTS

After checking with the Commerce and the State Intellectual Office, no patents of SC were found.

MAIN PRODUCTS & SERVICES

Main business	Sales of building materials and decoration materials.
Products and services	SC mainly deals with sales of building materials and decoration materials. Its products are ceramic tiles used for decoration, including polished tiles, glazed tiles, archaized bricks, marble, etc. In addition, SC also deals with sales of building materials including cement, lime, fireproofing materials, etc.

SALES INFORMATION

Export	100%
Regions	Southeast Asia, Middle East, Europe, South America, etc.
Major overseas clients	International retailers and distributors of building materials.
Payment terms	L/C, T/T
SC’s products are all exported to overseas countries. With long history, it has developed perfect sales network and has many clients.
The above information was confirmed by SC’s employee on APR.28^th, 2012.

PURCHASE INFORMATION

Main Commodities Purchased	Polished tile, glazed tile, cement, wood, etc.
Region	Local: 100% Import: 0%
Number of Major Suppliers	More than 5
Major suppliers	SUZHOU HUAYUAN BUILDING MATERIALS CO. LTD; ZHONGQI DONGLI TECHNOLOGY CO. LTD, etc.
Main Terms of Payment	Local: Prompt payment; on credit
SC’s products are mainly provided by tile manufacture enterprises in Foshan City. It has fixed suppliers and abundant sources of goods.
The above information was confirmed by SC’s employee on APR.28^th, 2012.

CREDIT

Name of supplier	SUZHOU HUAYUAN BUILDING MATERIALS CO. LTD
Main commodities and service supplied	Building materials, etc.
Title of interviewee	Office staff.
Telephone of Interviewee	86 512 52461976
Cooperation	Confirmed.
Payment comment	Good.
Date of interview	April 28^th, 2012

LITIGATION RECORDS

Name of person subject to enforcement	FOSHAN JUNJING INDUSTRIAL CO. LTD
Court	People’s Court of Chancheng Dist, Foshan City
File date	July 11^th, 2008
File No.	(2008) Fo Chan Fo Zhi Zi 05751
Amount	90,557.00 CNY
Status	Closed.
Name of person subject to enforcement	FOSHAN JUNJING INDUSTRIAL CO. LTD
Court	Guangzhou Maritime Court
File date	April 20^th, 2009
File No.	(2009) Guang Hai Fa Zhi Zi 00076
Amount	141,456.94 CNY
Status	Closed.

FINANCE

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

	Dec. 31^st, 2010	Dec. 31^st, 2011
Current assets
Money capital	14,604	19,828
Short-term investment
Notes receivable
Net ball of Account Receivable	1,388	2,446
Payment in advance	244,236	225,094
Subsidy Receivable
Other Account Receivable	6,517	25
Inventory	664	2,621
Expenses to be deferred
Other current assets
Export rebates receivable	26,763	41,743
Total current Assets	294,172	291,757
Long-term investment
Long-term investment		100
Original value of fixed assets
Accumulated depreciation
Net fixed assets	3,516	3,174
Fixed assets depreciation reserve
Net Value of Fixed Assets
Fixed assets in liquidation
Projects being constructed
Fixed assets losses in suspense
Total fixed assets	3,516	3,174
Intangible assets and deferred assets
Intangible assets
Deferred assets
Total intangible and deferred assets		-
Other long-term assets
Other long-term assets
Total assets	297,688	295,031
Current liabilities
Short-term loans	5,000	35,150
Notes payable
Account payable
Deposit received	268,133	207,095
Other accounts payable	3,943	28,486
Wages payable
Welfare payable
Tax unpaid	586	462
Unpaid profit
Accrued expenses
L/T debt due in 1 year
Other current liabilities	77	72
Total current liabilities	277,739	271,265
L/T liabilities
L/T loans
Bonds payable
L/T account payable
Total L/T liabilities	0	0
Deferred tax
Deferred tax
Total liabilities	277,739	271,265
Owner’s interest
Paid-up capital	5,000	5,000
Contributed surplus
Surplus reserves	3,049	3,824
Unconfirmed investment loss
Undistributed profits	11,900	14,942
Minority interest
Total owner’s interest	19,949	23,766
Liabilities and owner’s interest	297,688	295,031

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

	Dec. 31^st, 2010	Dec. 31^st, 2011
Main business income	1,460,100	1,441,981
Main business cost	1,399,099	1,411,039
Tax and associate charge	585	667
Main business profit	60,416	30,275
Other business profit	48	152
Operation expenses	51,393	42,264
- management expenses	6,493	6,183
Financial expenses	-730	-23,270
Operation profit	3,308	5,250
Investment profit
Subsidy income	1,145	5
Non business income	1
- non business expenses	15	64
Prior year income adjustment	-93	-59
Total profit	4,346	5,132
- income tax	1,473	1,314
Minority stock holder’s interest
Net profit	2,873	3,818

Important Ratios:

	2010	2011
Return on net assets (%)	14.40	16.06
Return on total assets (%)	0.97	1.29
Net profit margin (%)	0.20	0.26
Turnover of total assets	4.90	4.89
Turnover of current assets	4.96	4.94
Turnover of account receivable	1051.95	589.53
Inventory turnover	2107.08	538.36
Asset liability ratio (%)	93.30	91.94
Current ratio	1.06	1.08
Quick ratio	1.06	1.07

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

	2010	2011
Main business income	1,460,100	1,441,981
Total profit	4,346	5,132
Net profit	2,873	3,818
Total assets	297,688	295,031
Total liabilities	277,739	271,265
Total owner’s interest	19,949	23,766
Source from	government	government
Whether audited or not	Yes	Yes

Analysis of financial indicator

Long-term solvency: poor

Short-term solvency: poor

Asset security: poor

Inventory status: good

Capital turnover: average

Debt recovery status: good

Profitability: poor

Return on assets (ROA): poor

Enterprise background: average

Payment records: acceptable

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 :

PRL

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

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.