MIRA INFORM REPORT

Report Date :

20.11.2012

IDENTIFICATION DETAILS

Name :	Greif Flexibles (Changzhou) cO., lTD.
Registered Office :	No. 8, Tenglong Road, Wujin Economic Development Zone, Changzhou, Jiangsu Province, 213149 Pr
Country :	China
Financials (as on) :	31.12.2011
Date of Incorporation :	31.12.2006
Com. Reg. No.:	320400400020389
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Manufacturing and Selling of Flexible Freight Bags, Packaging Materials, Plastic Products, etc.
No. of Employees :	318

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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
China	A2	A2

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

china - ECONOMIC OVERVIEW

Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role - in 2010 China became the world's largest exporter. Reforms began with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, creation of a diversified banking system, development of stock markets, rapid growth of the private sector, and opening to foreign trade and investment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors it considers important to "economic security," explicitly looking to foster globally competitive national champions. After keeping its currency tightly linked to the US dollar for years, in July 2005 China revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2010 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of the US; China is second to the US in the value of services it produces. Still, per capita income is below the world average. The Chinese government faces numerous economic challenges, including: (a) reducing its high domestic savings rate and correspondingly low domestic demand; (b) sustaining adequate job growth for tens of millions of migrants and new entrants to the work force; (c) reducing corruption and other economic crimes; and (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2011 more than 250 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development. In 2010-11, China faced high inflation resulting largely from its credit-fueled stimulus program. Some tightening measures appear to have controlled inflation, but GDP growth consequently slowed to near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. Debt overhang from the stimulus program, particularly among local governments, and a property price bubble challenge policy makers currently. The government's 12th Five-Year Plan, adopted in March 2011, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent on exports in the future. However, China has made only marginal progress toward these rebalancing goals.

Source : CIA

Company Name and Address

Greif Flexibles (Changzhou) cO., lTD.

NO. 8, TENGLONG ROAD, WUJIN ECONOMIC DEVELOPMENT ZONE, changzhou, JIANGSU PROVINCE, 213149 PR CHINA

TEL: 86 (0) 519-86362587/86362581 FAX: 86 (0) 519-86362600

EXECUTIVE SUMMARY

INCORPORATION DATE : DEC. 31, 2006

REGISTRATION NO. : 320400400020389

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : MR. HARI KUMAR KRISHNA KUMAR (CHAIRMAN)

STAFF STRENGTH : 318

REGISTERED CAPITAL : USD 6,500,000

BUSINESS LINE : MANUFACTURING AND TRADING

TURNOVER : CNY 61,160,000 (AS OF DEC. 31, 2011)

EQUITIES : CNY 32,150,000 (AS OF DEC. 31, 2011)

PAYMENT : AVERAGE

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.2267 = 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

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 Dec. 31, 2006.

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 researching, developing & manufacturing flexible freight bags, manufacturing engineering specialty textile; domestic procurement, wholesale, commission agents, import and export business of packaging materials, chemical raw materials (excluding dangerous chemicals), plastic products, packaging products, flexible container; providing after-sales service and technical services of the above products.

SC is mainly engaged in manufacturing and selling flexible freight bags, packaging materials, plastic products, etc.

Mr. Hari Kumar Krishna Kumar is legal representative and chairman of SC at present.

SC is known to have approx. 318 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 Changzhou. SC’s employee refused to release the detailed information of the premise.

http://www.sunjut.com/ The website belongs to Sunjut. The design is professional and the content is well organized. At present it is in Chinese, English and other versions.

Email: info@sunjut.com

Changes of its registered information:

Date of change	Item	Before the change	After the change
2012-4	Company’s name	Changzhou Sunjut Packing Co., Ltd.	Present one

SC has passed ISO 9001:2000, ISO 14001.

MAIN SHAREHOLDERS:

Name % of Shareholding

Greif Flexibles (Hongkong) Co. Limited 100

Registration no.: 1080931

Legal form: private

Incorporation date: 2006-10-16

l Legal Representative and Chairman:

Mr. Hari Kumar Krishna Kumar, American, he is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative and chairman.

l General Manager:

David Romano is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as general manager

l Supervisor:

Ali Dirag

SC is mainly engaged in manufacturing and selling flexible freight bags, packaging materials, plastic products, etc.

SC’s products mainly include: flexible freight bags, packaging materials, plastic products, Bigbags (By physical shape, By fabric alternatives, By liners, By static electricity, By reusability & recycelibility), etc.

SC sources its materials 20% from domestic market, and 80% from overseas market. SC sells 20% of its products in domestic market, and 80% to overseas market.

The buying terms of SC include Check, L/C, 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 suppliers and clients.

According to the above website:

■ Sunjut Istanbul

■ Dudullu Factory

Address: Yukarı Dudullu Organize Sanayi Bolgesi I.Cadde No. 29 Umraniye, Istanbul, Turkey

Phone: + 90 (216) 564 06 00

Fax: + 90 (216) 564 06 10

E-mail: info@sunjut.com

■ Hadımkoy Factory

Address: Hadimkoy Dulger Cukuru Mevkii – Yesilbayir, Catalca, Istanbul, Turkey

Phone: + 90 (212) 798 22 57

Fax: + 90 (212) 798 22 87

E-mail: info@sunjut.com

■ Sunjut America

■ Sunpack Sunjut Corporation

Address: 600 E. Diehl Road Suite 110, Naperville, IL, USA

Phone: + 1 (630) 505 19 00

Fax: + 1 (630) 505 19 10

E-mail: sales@sunjut.com

■ Sunjut Europe

■ Sunjut Deutschland GmbH

Address: Landersumer Weg 40, Rheine, Germany

Phone: + 49 (5971) 911 08 - 0

Fax: + 49 (5971) 911 08 - 13

E-mail: verkauf@sunjut.com

■ Sunjut France

Address: Le Blanc Logis 216 Route De Neufchatel, Bihorel Les Rouen, France

Phone: + 33 (2) 35 12 17 97

Fax: + 33 (2) 35 60 69 14

E-mail: ventes@sunjut.com

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.

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2011
Cash & bank	3,090
Bills receivable	0
Inventory	11,950
Accounts receivable	11,990
Other Accounts receivable	1,120
Advances to suppliers	400
Dividends receivable	0
Other current assets	50
	------------------
Current assets	28,600
Fixed assets net value	13,850
Projects under construction	0
Long term investment	0
Intangible and other assets	50
Deferred tax debit	1,030
Long-term deferred expense	810
	------------------
Total assets	44,340
	=============
Short-term loans	0
Bills payable	0
Accounts payable	10,260
Advances from clients	1,180
Accrued payroll	710
Tax payable	-40
Other Accounts payable	50
Other current liabilities	30
	------------------
Current liabilities	12,190
Long term liabilities	0
	------------------
Total liabilities	12,190
Equities	32,150
	------------------
Total liabilities & equities	44,340
	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2011
Turnover	61,160
Cost of goods sold	56,540
Taxes and additional of main operation	390
Sales expense	2,140
Management expense	2,650
Finance expense	270
Profit before tax	-760
Less: profit tax	-80
Profits	-680

Important Ratios

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

	As of Dec. 31, 2011
*Current ratio	2.35
*Quick ratio	1.37
*Liabilities to assets	0.27
*Net profit margin (%)	-1.11
*Return on total assets (%)	-1.53
*Inventory /Turnover ×365	71 days
*Accounts receivable/Turnover ×365	72 days
*Turnover/Total assets	1.38
* Cost of goods sold/Turnover	0.92

PROFITABILITY: FAIR

l The turnover of SC appears average in its line.

l SC’s net profit margin remains in a fair level.

l SC’s return on total assets remains in a fair 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 quick ratio is maintained in a normal level.

l The inventory of SC appears fairly large.

l The accounts receivable of SC appears fairly large.

l There is no short-term loan in 2011.

l SC’s turnover is in an average level, comparing with the size of its total assets.

LEVERAGE: AVERAGE

l The debt ratio of SC is low.

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. The large amount of inventory and accounts receivable could be a threat to SC’s financial condition.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.97
UK Pound	1	Rs.87.50
Euro	1	Rs.70.16

INFORMATION DETAILS

Report Prepared by :

NIT

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.