MIRA INFORM REPORT

Report Date :

30.05.2012

IDENTIFICATION DETAILS

Name :	ALAND (JIANGSU) NUTRACEUTICAL CO., LTD.

Registered Office :	No. 61 Jiangshan Road, Jingjiang, Jiangsu Province, 214500 Pr

Country :	China

Financials (as on) :	2010

Date of Incorporation :	28.07.1990

Com. Reg. No.:	321200400000633

Legal Form :	Chinese-Foreign Equity Joint Venture Enterprise

Line of Business :	Manufactures And Markets A Comprehensive Range Of Vitamin C Series Products, Nutritional & Health Supplements.

No. of Employees :	2,168

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good
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

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name and address

aLAND (JIANGSU) NUTRACEUTICAL co., ltd.

NO. 61 jiangshan ROAD, jingjiang,

jiangsu province, 214500 PR China

TEL: 86 (0) 523-84831057 FAX: 86 (0) 523-84831013

EXECUTIVE SUMMARY

INCORPORATION DATE : jul. 28, 1990

REGISTRATION NO. : 321200400000633

REGISTERED LEGAL FORM : Chinese-foreign equity joint venture enterprise

CHIEF EXECUTIVE : Mr. chang liang (CHAIRMAN)

STAFF STRENGTH : 2,168

REGISTERED CAPITAL : usd 26,066,100

BUSINESS LINE : manufacture, PROCESSing and trading

TURNOVER : CNY 1,202,292,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 1,782,044,000 (AS OF DEC. 31, 2010)

PAYMENT : AVERAGE

MARKET CONDITION : competitive

FINANCIAL CONDITION : FAIRLY GOOD

OPERATIONAL TREND : steady

GENERAL REPUTATION : WELL-KNOWN

EXCHANGE RATE : CNY 6.30 = 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 correct name should be the heading one. SC is also known as Jiangsu Jiangshan Pharmaceutical Co., Ltd.

SC was registered as a Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Jul. 28, 1990.

Company Status: Chinese-foreign equity joint venture enterprise

This form of business in PR China is defined as a legal person. It is a limited co. jointly invested by one or more foreign companies and one or more PR China controlled companies within the territories of PR China according to a certain proportion of capital investment. The investing parties exercise business management, share profits and bear all risks and liabilities of the co. together. The equity joint venture law requires that foreign party contribute not less than 25% of the registered capital, with no maximum. The investing parties are free to agree on method of profit distribution and liabilities bearing according to the proportion of capital investment. Each investing parties contributes funds, tangible assets, technology & etc. The board of directors excises the high authority. The joint venture usually has a limited duration of 10 to 50 years. Enterprise with large investment, long construction periods, low investment returns, introducing of advanced technology & advanced technology products that have good competition position in international market may extend beyond the 50 years limit.

SC’s registered business scope includes manufacturing and processing foods [foods and food additives (according to the permit), vitamin C and the series products (according to the permit)]; manufacturing and processing drug [raw materials and medicines (according to the permit)]; manufacturing and processing feed and feed additives (according to the permit), veterinary medicine (VC-2-polyphosphate calcium); manufacturing and processing sanitary materials.

SC is mainly engaged in manufacturing, processing and selling Vitamin C and series products, nutrition health products.

Mr. Chang Liang has been the legal representative, chairman and general manager of SC since 2007.

SC is known to have approx. 2,168 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and its factory in the industrial zone of Jingjiang. SC owns the premise, but the gross area is unspecified.

http://www.aland.com.cn The design is professional and the content is well organized. At present the web site is in both Chinese and English versions.

E-mail: info@aland.com.cn

According to SC’s website, SC carries out strict internal control standards to ensure the quality of all the products comply with the international standards such as BP, USP, JP, CP and FCC. As a result, SC is certified with the quality management systems such as GMP, ISO 9001, HACCP, COS, JDMF, IP, FAMI-QS, HALAL and KOSGER. Moreover, SA 8000 certification is granted to SC for its compliance with social ethical standards.

Changes of its registered information:

Date of change	Items	Before the change	After the change
1995-1-11	Registered capital	USD 21,066,100	USD 26,066,100
1998-4-1	Legal representative	Jiang Zhenlin	Zhang Jianshu
1999-6-15	Legal representative	Zhang Jianshu	Zhao Yuqiu
2006-11-3	Legal representative	Zhao Yuqiu	Zhang Jie
2007-9-28	Legal representative	Zhang Jie	Chang Liang
2008-6-23	Shareholders	Jingjiang Xinlan Biochemical Engineering Co., Ltd. (in Chinese pinyin) 2% Jiangsu Medicine Health Care Article Imp. & Exp. (Group) Co., Ltd. 3.57% Expert Assets Ltd. (B.V.I.) Expert Assets Ltd. 52.38% Jiangsu Worldbest Pharmaceutical Co., Ltd. 42.05%	Expert Assets Ltd. (B.V.I.) Expert Assets Ltd. 52.38% High Hope Int'l Group Jiangsu Medicines & Health Products Imp. & Exp. Corp. Ltd. 3.57% Jingjiang Xinyuan Investment Consultant Co., Ltd. (in Chinese pinyin) 42.05% Jingjiang Xinlan Biochemical Engineering Co., Ltd. (in Chinese pinyin) 2%
2008-12-16	Shareholders	Expert Assets Ltd. (British Virgin Islands) Expert Assets Ltd. 52.38% High Hope Int'l Group Jiangsu Medicines & Health Products Imp. & Exp. Corp. Ltd. 3.57% Jingjiang Xinyuan Investment Consultant Co., Ltd. (in Chinese pinyin) 42.05% Jingjiang Xinlan Biochemical Engineering Co., Ltd. (in Chinese pinyin) 2%	Expert Assets Ltd. (British Virgin Islands) Expert Assets Ltd. 96.43% High Hope Int'l Group Jiangsu Medicines & Health Products Imp. & Exp. Corp. Ltd. 3.57%
2009-3-10	Shareholders	Expert Assets Ltd. (British Virgin Islands) Expert Assets Ltd. 96.43% High Hope Int'l Group Jiangsu Medicines & Health Products Imp. & Exp. Corp. Ltd. 3.57%	Aland (HK) Holding Limited96.43% High Hope Int'l Group Jiangsu Medicines & Health Products Imp. & Exp. Corp. Ltd. 3.57%
Unknown	Registered no.	000327	321200400000633

MAIN SHAREHOLDERS:

Name % of Shareholding

Aland (HK) Holding Limited 96.43

High Hope Int'l Group Jiangsu Medicines & Health Products Imp. & Exp. Corp. Ltd. 3.57

Aland (HK) Holding Limited

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

Incorporation Date: Oct. 30, 2008

Registration No.: 1283452

Registered Legal Form: Private

High Hope Int'l Group Jiangsu Medicines & Health Products Imp. & Exp. Corp. Ltd.

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

Registered no.: 320000000004071

Address: Floor 12 & 13, Huihong Building, No. 91, Baixia Road, Nanjing, Jiangsu Province, 210001 PR China

Tel: +86 (0) 25-84691400

Fax: +86 (0) 25-84691440

Website: http://www.mehecojs.cn

Email: mehecojs@mehecojs.cn

According to the company’s website, High Hope Int'l Group Jiangsu Medicines & Health Products Imp. & Exp. Corp. Ltd. is a state enterprise, which is proved by Ministry of Foreign Trade and Economic Cooperation and found in 1984. In 1996 it joined High Hope Int'l Group and became a subsidiary company of the group. In the past few years, it has built business relationship with more than 100 countries and areas, and has built cooperative relationship with domestic manufactories, universities, graduate schools and medicine inspection institutions. It assumed one of the executive managing members of council of China Chamber of Commerce of Medicines & Health Products Importers & Exporters, and passed the auditing of Switzerland SGS to get ISO 9001----2000 Quality System Certification.

l Legal representative, chairman and general manager:

Mr. Chang Liang , ID#: 321102197107021078, born in 1971, with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

From 2007 to present Working in SC as legal representative, chairman and general manager

l Vice general manager:

Mr. Wang Cheng , ID# 321024630929009, born in 1963, He is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as vice general manager

l Vice general manager:

Mr. Wang Qiang , ID# 321024710811281, born in 1971, He is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as vice general manager

Directors:

=======

Chen Guofu ID#: 320103560401183

Wang Cheng ID#: 321024630929009

Ren Yuanlin ID#: 320219195305297510

Miu Weiqun ID#: 330219196003128775

Huang Jialu ID#: 320219195011117510

Wang Qiang ID#: 321024710811281

Wang Liman ID#: 320219195611168514

Kong Tai ID#: 321024194706180010

Supervisor:

========

Shi Yaru ID#: 321024197302010051

SC develops, manufactures and markets a comprehensive range of vitamin C series products, nutritional & health supplements.

SC’s products mainly include: Ascorbic Acid, Calcium Ascorbate, VC Granular and Coated Ascorbic Acid, Nutritional supplements, etc.

SC’s trademark: “Blue Drum” and “Aland”.

SC sources its materials 80% from domestic market and 20% from overseas market. SC sells 5% of its products in domestic market, and 95% 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 main clients and suppliers.

Rekind (Suzhou) Biotech Co., Ltd.

Add: 6 Zhuyuan Road, Suzhou, Jiangsu. 215011 China

Tel: +86-512-68081008

E-mail: info@aland.com.cn

Jiangsu Aland Nutrition Co., Ltd.

Add: 6 Zhuyuan Road, Suzhou, Jiangsu. 215011 China

Tel: +86-512-68322163

Fax: +86-512-68249548

Internet sources indicate SC also has the following two branch companies:

Jiangsu Jiangshan Pharmaceutical Co., Ltd. Health Products Branch Company

Jiangsu Jiangshan Pharmaceutical Co., Ltd. Suzhou Branch Company

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 refused to release its bank information.

Financial Summary

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

Unit CNY’000

2009 2010

Turnover 1,529,196 1,202,292

Profit before tax 791,512 454,663

Net profit 671,738 388,244

Long term investment 10,000 16,000

Long term liabilities 150,000 472,000

Total liabilities 827,191 836,479

Equity 1,393,798 1,782,044

Total assets 2,220,989 2,618,523

Note: We did not find SC’s detail financial reports for Yr2009 & 2010.

Important Ratios

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

	as of Dec. 31, 2009	as of Dec. 31, 2010
*Liabilities to assets	0.37	0.32
*Net profit margin (%)	43.93	32.29
*Return on total assets (%)	30.24	14.83
*Turnover/Total assets	0.69	0.46

PROFITABILITY: GOOD

l The turnover of SC appears good in 2009 but it decrease in 2010.

l SC’s net profit margin is good in both years.

l SC’s return on total assets is good in both years.

l SC’s turnover is in a fair level in both years, comparing with the size of its total assets.

LEVERAGE: FAIRLY GOOD

l The debt ratio of SC is low in both years.

l The risk for SC to go bankrupt is low.

Overall financial condition of the SC: Fairly good

SC is considered large-sized in its line with fairly good financial conditions. A credit line up to USD 6,000,000 would appear to be within SC’s capacities.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.58
UK Pound	1	Rs.87.14
Euro	1	Rs.69.73

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.