MIRA INFORM REPORT

Report Date :

03.05.2012

IDENTIFICATION DETAILS

Name :	HANGZHOU FST PHARMACEUTICAL CO., LTD
Registered Office :	Cheng Nan Industrial Zone, Meicheng Town, Jiande City, Hangzhou, Zhejiang
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	19.12.2005
Com. Reg. No.:	330182000026527
Legal Form :	Limited Liabilities Company
Line of Business :	Manufacture and sales of pharmaceutical intermediate
No. of Employees :	150

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

HANGZHOU FST PHARMACEUTICAL CO., LTD
4 Fl, Building 2, Wenyi West Rd, Xihu Dist, Hangzhou City, Zhejiang Province.
310012
Tel :	86 571 88938669
Fax:	86 571 88938660
E-mail:	--
Website:	www.fstpharm.com
GTM Reference No.	120428101

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 is SC’s factory address.

2. The credit limit (USD 2,500,000.00) provided in the order is high. The recommended credit limit is as listed in the report.

3. 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 Zhejiang, shareholder, registered capital, establishment date information, etc couldn’t be obtained.

EXECUTIVE SUMMARY

name	HANGZHOU FST PHARMACEUTICAL CO., LTD
Aic Registration No.	330182000026527
REGISTERED LEGAL FORM	limited liabilities company
main BUSINESS	Manufacture and sales of pharmaceutical intermediate
SIC Code (China)	2614 manufacture of organic chemical material
employees	150
import and export permits	yes
business scale	Large
operation trend	Good
TURNOVER	92,231,000.00 (As of Dec.31^st, 2010)
net profit	7,181,000.00 (As of Dec.31^st, 2010)
total assets	101,246,000.00 (As of Dec.31^st, 2010)
net worth	45,424,000.00 (As of Dec.31^st, 2010)
EXCHANGE RATE	1 Usd=6.30CNY (Jan 4^th, 2012)

REGISTRATION

Name	HANGZHOU FST PHARMACEUTICAL CO., LTD
AIC Registration Number	330182000026527
Registered address	Cheng Nan Industrial Zone, Meicheng Town, Jiande City, Hangzhou, Zhejiang
Operation address	4 Fl, Building 2, Wenyi West Rd, Xihu Dist, Hangzhou City, Zhejiang Province
Registry	Administration Bureau of Industry and Commerce – Jiande Branch, Hangzhou
Registered Legal Form	limited liabilities company

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 affiliate of subject company is found after checking.

MANAGEMENT

N/A

BANKERS INFORMATION

N/A

OFFICE FACILITIES

Geographic Location	4 Fl, Building 2, Wenyi West Rd, Xihu Dist, Hangzhou City, Zhejiang Province
Factory address	Chengnan Industrial Zone, Meicheng Town, Hangzhou City, Zhejiang Province.
Factory Area	90000 square meters
Environment and traffic	Acceptable
Property Ownership	Unknown

TRADEMARKS

Total trademarks	12(only the latest 3 are listed)
Registration No.	5067653
Registration date	Dec.19^th, 2005
Image
Registration No.	5067654
Registration date	Dec.19^th, 2005
Image
Registration No.	6928459
Registration date	Sep.1^st, 2008
Image

PATENTS

Total patents	10 (only the latest 3 are listed)
Application No.	201110323165.9
Application date	Oct.22^\nd, 2011
Patent name	A synthetic method of Octopamine hydrochloride.
Application No.	201010537067.0
Application date	Nov.9^\th, 2010
Patent name	A synthetic method of Synephrine hydrochloride.
Application No.	201010537076.X
Application date	Nov.9^\th, 2010
Patent name	A synthetic method of hydroxy flavonoids.

MAIN PRODUCTS & SERVICES

Main business	Manufacture and sales of pharmaceutical intermediate.
Products and services	SC mainly deals with manufacture and sales of pharmaceutical intermediate. Its products include many kinds of pharmaceutical internediates.
Annual production capacity	--
Certificates	ISO9001、ISO14001、OHSAS18001

SALES INFORMATION

Local sales	50%
Regions	All over China
Major domestic clients	ZHEJIANG BAOLING PHARMACEUTICAL CO. LTD, etc.
Payment terms	Prompt payment; on credit
Export	50%
Regions	Europe, America etc.
Major overseas clients	Aidp Inc.; Integrity Nutraceuticals, etc.
Payment terms	L/C, T/T
SC’s products are sold both domestically and internationally. According to SC’s staff, it has established stable cooperation relationship with many pharmaceutical enterprises. Its sales network is acceptable.
The above information was confirmed by SC’s employee

PURCHASE INFORMATION

Main Commodities Purchased	Chemical raw materials, etc.
Region	Local: 60% Import: 40%
Number of Major Suppliers	More than 5
Major suppliers	JIANDE BENTENG ENVIRONMENTAL PROTECTION EQUIPMENT CO. LTD; CREATIVE COMPOUDS LLC, etc.
Main Terms of Payment	Local: Prompt payment; on credit Import: L/C, T/T
SC’s raw materials and production equipments are mostly purchased domestically. It has fixed suppliers. Some of SC’s raw materials are purchased from overseas countries.
The above information was confirmed by SC’s employee

CREDIT

Name of supplier	JIANDE BENTENG ENVIRONMENTAL PROTECTION EQUIPMENT CO. LTD
Main commodities and service supplied	Chemical raw materials, etc.
Title of interviewee	office staff
Telephone of Interviewee	86 571 64192297
Cooperation	Confirmed
Payment comment	Acceptable

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, 2009	Dec. 31^st, 2010
Current assets
Money capital	7,727	12,313
Short-term investment
Notes receivable	200
Net ball of Account Receivable	11,257	13,295
Payment in advance	2	2
Subsidy Receivable
Other Account Receivable	4,904	11,631
Inventory	6,021	13,641
Expenses to be deferred
Other current assets
Export rebates receivable
Total current Assets	30,111	50,882
Long-term investment
Long-term investment	15,000	23,451
Original value of fixed assets
Accumulated depreciation
Net fixed assets
Fixed assets depreciation reserve
Net Value of Fixed Assets	17,457	19,319
Fixed assets in liquidation
Projects being constructed	1,935	40
Fixed assets losses in suspense
Total fixed assets	19,392	19,359
Intangible assets and deferred assets
Intangible assets	7,478	7,412
Deferred assets	208	142
Total intangible and deferred assets	7,686	7,554
Other long-term assets
Other long-term assets
Total assets	72,189	101,246
Current liabilities
Short-term loans	22,000	19,000
Notes payable	7,500	8,840
Account payable	9,789	12,684
Deposit received
Other accounts payable	-28	14,453
Other fees payable	24	15
Wages payable
Welfare payable
Tax unpaid	-1,473	830
Unpaid profit
Accrued expenses
L/T debt due in 1 year
Other current liabilities
Total current liabilities	37,812	55,822
L/T liabilities
L/T loans
Bonds payable
L/T account payable
Total L/T liabilities	0	0
Deferred tax
Deferred tax
Total liabilities	37,812	55,822
Owner’s interest
Paid-up capital	6,000	7,500
Contributed surplus	1,597	10,096
Surplus reserves	14,370	14,370
Unconfirmed investment loss
Undistributed profits	12,410	13,458
Minority interest
Total owner’s interest	34,377	45,424
Liabilities and owner’s interest	72,189	101,246

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

	Dec. 31^st, 2009	Dec. 31^st, 2010
Main business income	75,512	92,231
Main business cost	51,606	69,280
Tax and associate charge	518	475
Main business profit	23,388	22,476
Other business profit		42
Operation expenses	1,333	2,133
- management expenses	10,061	12,378
Financial expenses	1,543	1,464
Operation profit	10,451	6,543
Investment profit
Subsidy income
Non business income	451	896
- non business expenses	183	258
Prior year income adjustment
Total profit	10,719	7,181
- income tax	0	0
Net profit	10,719	7,181

Important Ratios:

	2009	2010
Return on net assets (%)	31.18	15.81
Return on total assets (%)	14.85	7.09
Net profit margin (%)	14.20	7.79
Turnover of total assets	1.05	0.91
Turnover of current assets	2.51	1.81
Turnover of account receivable	6.71	6.94
Inventory turnover	8.57	5.08
Asset liability ratio (%)	52.38	55.14
Current ratio	0.80	0.91
Quick ratio	0.64	0.67

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

	2009	2010
Main business income	75,512	92,231
Total profit	10,719	7,181
Net profit	10,719	7,181
Total assets	72,189	101,246
Total liabilities	37,812	55,822
Total owner’s interest	34,377	45,424
Source from	government	government
Whether audited or not	Yes	Yes

Analysis of financial indicator

Long-term solvency: acceptable

Short-term solvency: poor

Asset security: average

Inventory status: average

Capital turnover: below average

Debt recovery status: average

Profitability: good

Return on assets (ROA): good

Enterprise background: good

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 :

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.