MIRA INFORM REPORT

Report Date :

11.05.2012

IDENTIFICATION DETAILS

Name :	HM TEXTILE (CHANGSHU) INC.
Registered Office :	No. 18 Fuchunjiang East Road, Southeast Economic Development Zone of Changshu, Jiangsu PROVINCE, 215553 PR
Country :	China
Date of Incorporation :	16.04.2004
Com. Reg. No.:	320581400001882
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Processing and selling high-grade apparel fabrics and high-grade industrial fabrics.
No. of Employees :	622

RATING & COMMENTS

MIRA’s Rating :

B

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	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

HM TEXTILE (CHANGSHU) INC.

No. 18 Fuchunjiang East Road, Southeast Economic Development Zone of Changshu, Jiangsu PROVINCE, 215553 PR CHINA

TEL: 86 (0) 512-52303999 FAX: 86 (0) 512-52301671

EXECUTIVE SUMMARY

INCORPORATION DATE : APR. 16, 2004

REGISTRATION NO. : 320581400001882

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : mr. lai mincong (CHAIRMAN)

STAFF STRENGTH : 622

REGISTERED CAPITAL : usd 24,200,000

BUSINESS LINE : processing & SELLING

TURNOVER : N/A

EQUITIES : N/A

PAYMENT : AVERAGE

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.29 = 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 current English name should be the heading one, while the name Changshu Huamao Textile Co., Ltd. is not often used.

SC was registered as wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Apr. 16, 2004.

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 engaged in high-grade fabrics weaving, dyeing and finishing, and selling of self-made products.

SC is mainly engaged in processing and selling high-grade apparel fabrics and high-grade industrial fabrics.

Mr. Lai Mincong is legal representative and chairman of SC at present.

SC is known to have approx. 622 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the economic development zone of Changshu. Our checks reveal that SC owns the total premise, but the gross area of the premise is unspecified.

http://www.cshmtex.com The design is professional and the content is well organized. At present it is in both Chinese and English versions.

E-mail: master@cshmtex.com

sales_yj@cshmtex.com

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

MAIN SHAREHOLDERS:

Name % of Shareholding

Jinwei International Co., Ltd. (literal translation) (B.V.I.) 100

l Legal Representative and Chairman:

Mr. Lai Mincong , # D694838 (4), he is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative and chairman.

Also working in Huamao (Xiamen) Weaving Dyeing & Finishing Co., Ltd. as legal representative.

l Vice Chairman:

Laifang Jingjing is currently responsible for the overall management of SC, # 0042727403 (B).

Working Experience(s):

At present Working in SC as vice chairman.

l General Manager:

Mr. Zhong Xingqian , # 0126607803 (B), he is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as general manager.

l Supervisor:

Wang Yajun , # 03087098.

SC is mainly engaged in processing and selling high-grade apparel fabrics and high-grade industrial fabrics.

SC’s products mainly include: Laytex Series, Sport & Casual Series, Down Proof Series, Bags Series, Outdoors Articles Series, Military Uniform Series, Industrial fabric Series, Cordura Series, High Functional Fabrics, etc.

SC sources its materials 50% from domestic market, and 50% from overseas market. SC sells 50% of its products in domestic market, and 50% 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 major clients and suppliers.

Huamao (Xiamen) Weaving Dyeing & Finishing Co., Ltd.

INCORPORATION DATE : JULY 22, 1992

REGISTRATION NO. : 350200400025975

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : MR. LAI MINCONG (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : USD 20,000,000

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.

No bank information was found during our checks with the local Administration for Industry and Commerce. And SC declined to release its banking details.

Investigations were made with the local AIC, but the financial records were not available.

SC’s management declined to release any financial information.

SC is considered medium-sized in its line with 8 years operation history. Credit up to moderate amount appears acceptable.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.34
UK Pound	1	Rs.86.11
Euro	1	Rs.69.07

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
--	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.