MIRA INFORM REPORT

Report Date :

21.11.2012

IDENTIFICATION DETAILS

Name :	CIXI MINGWANG BEARING CO., LTD
Registered Office :	No. 419-421, Sanbei West Avenue, Hushan Street, Cixi City, Ningbo City, Zhejiang Province
Country :	China
Financials (as on) :	31.12.2009
Date of Incorporation :	25.04.2006
Com. Reg. No.:	330282000040107
Legal Form :	Limited Liability Company
Line of Business :	Wholesaler of bearings

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 :	Regular
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 – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
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

CIXI MINGWANG BEARING CO., LTD
NO. 419-421, Sanbei West Avenue, Hushan Street, Cixi City, Ningbo City, Zhejiang Province
315300
Tel :	86 574 63808548
Fax	86 574 63808546
Website	http://www.mwzc.com/
GTM ID	G110323321

EXECUTIVE SUMMARY

DATE OF establishment : apr 25^th, 2006

Aic Registration No. : 330282000040107

REGISTERED LEGAL FORM : limited liability company

REGISTERED CAPITAL : 500,000.00

main BUSINESS : whosale of bearings

TURNOVER : 14,843,000.00 (As of 2009)

net profit : 255,000.00 (As of Dec.31th, 2009)

total assets : 5,547,000.00 (As of Dec.31th, 2009)

net worth : 948,000.00(As of Dec.31th, 2009)

employees : 15

CHIEF EXECUTIVE : Tang Nongping

import and export permits : yes

EXCHANGE RATE : 1 Usd=6.56 CNY (mar.26^TH, 2011)

Registered Address: No.10, Building 25, Datong Garden, Hushan Street, Cixi City

Zip Code: 315300

Business Address: NO. 419-421, Sanbei West Avenue, Hushan Street, Cixi City, Ningbo City, Zhejiang Province

Zip Code: 315300

Telephone: 86 574 63808548

Fax: 86 574 63808546

SIC Code (China): 6379 wholesale of other machinery and electronic products

REGISTRATION

Date of Establishment	Apr. 25^th, 2006
Registry	Administration Bureau of Industry and Commerce - Cixi, Ningbo
Legal Representative	Tang Nongping
AIC Registration Number	330282000040107
Registered Legal Form	limited liability company(invested and held by natural person)
Registered Capital	500,000
Operating Period	From Apr 25^th, 2006 to APr 24^th 2026
Business Scope	Wholesale and retail of bearings, motor and motorcycle accessories, moulds and plastic products etc. Import and export of goods and technology (excluding what is forbidden operating and trading by the government)
Changes in Registration	1.Mar 31^st, 2008 Subject’s registration No. was changed from 3302822009273 to 330282000040107. 2.July 29^th, 2008 Subject’s shareholders were changed from Tang Nongbo and Yang Jie to Tang Nongbo, Tang Nongping and Yang Jie. 3.July 29^th, 2008 Subject’s legal representative was changed from Yang Jie to Tang Nongping.

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

FIELD INVESTIGATION

1. Subject’s main business turnover is from sales of many kinds of bearings. Subject’s products are mainly purchased from local and overseas bearings manufacturers. The products are mainly sold to local manufacturers of textiles and air conditioners. Subject’s sales business is usually directly done to the end users. Bearings marketing business is a fiercely competitive industry. Subject has a large number of competitors who also do the same business. In addition, although subject has a 5 years history, its business scale is still small. As a result, subject’s competitiveness in local industry is below average.

2. Cixi city where subject is located is near the East Sea. It is an economic center in the southern part of the Yangtze delta and will soon become a golden bridge between Shanghai and Ningbo. The advantageous geographical location promotes the development of local enterprises, brings development opportunities to local enterprises, and also proposes certain challenges to them. As a domestic enterprise, dealing with the sales of ordinary bearings. The local government doesn’t provide related supporting policy to subject.

SHAREHOLDERS AND SHARES

As indicated in the following table:

Shareholder	Capital Subscribed	Percentage
Yang Jie	250,000	50%
Tang Nongbo	125,000	25%
Tang Nongping	125,000	25%
Total	500,000	100%

Shareholder Way of Investment Paid-up Percentage

Yang Jie Capital 100%

Tang Nongbo Capital 100%

Tang Nongping Capital 100%

Background of major shareholder

Name	Yang Jie
ID No.	330222197501164693
Name	Tang Nongbo
ID No.	330222197411274709
Name	Tang Nongping
ID No.	330222197808114682

AFFILIATE(S)

After checking with the industry and commerce channels, no affiliates of SC is found.

HISTORY

Apr 25^th, 2006	SC was established.
Dec 31^st, 2007	SC’s main business turnover and net profit were 8,103,000 Chinese Yuan and 55,000 Chinese Yuan respectively.
Dec 31^st, 2008	SC’s main business turnover and net profit were 11,246,000 Chinese Yuan and 173,000 Chinese Yuan respectively.
Dec 31^st, 2009	SC’s main business turnover and net profit were 14,843,000 Chinese Yuan and 255,000 Chinese Yuan respectively.

MANAGEMENT

Name	Tang Nongping
Title	Executive Director and General manager
Gender	Female
ID No.	330222197808114682
Nationality	China
Date of birth	Aug. 11^th, 1978
Name	Yang Jie
Title	Supervisor
Gender	Male
ID No.	Jan. 16^th, 1975
Nationality	China
Date of birth	330222197501164693
Name	Tang Nongbo
Title	Supervisor
Gender	Female
ID No.	330222197411274709
Nationality	China
Date of birth	Nov. 27^th, 1974

NUMBER OF EMPLOYEES

Employees: 15

Recent Recruitment：No

Subject’s employees confirmed the above information in March 2011.

BANKERS INFORMATION

Bank Name	Ningbo Cixi Rural Cooperative Bank
Account No. for Chinese Yuan	95240101302089709
Telephone of the person investigated	0086 574 63811464
Comment	The employees of the bank confirmed that subject opened an account here and the above account information is correct.

OFFICE FACILITIES

Geographic Location: SC is located in NO. 419-421, Sanbei West Avenue, Hushan Street, Cixi City, Ningbo City, Zhejiang Province. The environment there is average while the traffic is convenient.

Property Ownership: rented

TRADEMARKS & PATENTS

After checking with the Trademark Office of Chinese Administration Bureau of Industry and Commerce and the State Intellectual Office, no trademarks or patents of SC were found.

MAIN PRODUCTS & SERVICES

Main business

Wholesale and retail of bearings

Products and services

SC mainly deals with the sales of bearings. Its products include double row angular contact ball bearings, aligning ball bearings, aligning roller bearings, tapered roller bearings, double row deep groove ball bearings, thrust ball bearings, deep groove ball bearings, etc. Its products are mainly used for assembling of air conditioner motor, rang hood, electric tools, automatic grinder of bearings, automobile accessories, textile machinery, etc.

SALES INFORMATION

Percentage of domestic sales	100%
Regions	Cixi City, Zhejiang and its neighboring regions
Major domestic clients	Textile mile, Machinery Factory, Air-conditioner Factory
Sales Terms:	Prompt payment; on credit
The above information was confirmed by SC’s employee

PURCHASE INFORMATION

Main Commodities Purchased	different kinds of bearings , office supplies, etc.
Number of Major Suppliers	More than 5
Major Suppliers	CIXI KE XIN BEARINGS CO. LTD, etc
Main Terms of Payment	Domestic: Prompt payment, on credit Overseas: L/C, T/T
The above information was confirmed by SC’s employee

CREDIT

Name of supplier	CIXI KE XIN BEARINGS CO. LTD, etc
Main commodities supplied	Bearings
Post of interviewee	Office workers
Tel	86-574-63540488
Remarks of interviewee	The office workers of this company confirmed the cooperation relationship with subject. They cooperated well and SC always made payment in time.

LITIGATION

After checking with China court website, local court website and other major searching websites, no litigation records related to subject in the recent 3 years was found.

FINANCE

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

	Dec. 31^st, 2007	Dec. 31^st, 2008	Dec. 31^st, 2009
Current assets
Money capital	68	10	1,091
Notes receivable	0	91	78
Net ball of account receivable	295	2,096	2,811
Payment in advance	148	0	3
Account receivable	295	2,096	2,811
Other account receivable	105	41	85
Inventory	241	443	506
Expenses to be deferred		42	67
Total current Assets	965	2,842	5,234
Long term investment
Long term investment
Fix assets
Original value of fixed assets	176	479	487
Accumulated depreciation	37	88	174
Net Fixed Assets	139	391	313
Net value of Fixed Assets
Project being constructed
Total fixed assets	139	391	313
Intangible assets
Intangible assets
Deferred assets
Total intangible assets and deferred assets	0	0	0
Total assets	1,104	3,233	5,547
Current liabilities
Short term loans	500	0	1,000
Notes payable			2,000
Account payable	0	2,393	1,532
Deposit received
Other account payable	1	1	2
Wages payable	12	13	13
Tax unpaid	29	54	52
Accrued expenses
Other current liabilities
Total current liabilities	542	2,461	4,599
L/T liabilities
L/T account payable	0	52	0
Total L/T liabilities	0	52	0
Total liabilities	542	2,513	4,599
Owner’s interest
Paid-up capital	500	500	500
Contributed surplus
Surplus reserves	7	24	46
Undistributed profits	55	196	402
Total owner’s interest	562	720	948
Liabilities and owner’s interest	1,104	3,233	5,547

Income Statement (Unit: 1,000):

	Dec. 31^st, 2007	Dec. 31^st, 2008	Dec. 31^st, 2009
Main business income	8,103	11,246	14,843
Main business cost	7,517	10,449	13,864
Tax and associate charge	11	10	1
Main business profit	575	787	978
Other business profit
Asset depreciation
Operation expenses	17	86	55
management expenses	437	390	563
Financial expenses	41	80	30
Operation profit	80	231	330
Investment profit
Non business income
Non business expenses
Total profit	80	231	330
Income tax	25	58	75
Net profit	55	173	255

Important Ratios:

	2007	2008	2009
Return on net assets (%)	9.79	24.03	26.90
Return on total assets (%)	4.98	5.35	4.60
Net profit margin (%)	0.68	1.54	1.72
Turnover of total assets	7.34	3.48	2.68
Turnover of current assets	8.40	3.96	2.84
Turnover of account receivable	27.47	5.37	5.28
Inventory turnover	31.19	23.59	27.40
Asset liability ratio (%)	49.09	77.73	82.91
Current ratio	1.78	1.15	1.14
Quick ratio	1.34	0.97	1.03

Major Financial Information (Unit: 1,000)

	2007	2008	2009
Main business income	8,103	11,246	14,843
Total profit	80	231	330
Net profit	55	173	255
Total assets	1,104	3,233	5,547
Total liabilities	542	2,513	4,599
Total owner’s interest	562	720	948
Source from	government	government	government
Whether audited or not	Yes	Yes	Yes

Notes to finance

Since domestic information obtaining channels are not perfect, some account subjects are not filled in the financial statements. The cumulative number of some account subjects may be not consistent with that of the financial statements.

SC’s main business income in 2009 increased substantially year/year compared with that of 2008 related to the ideal marketing.

INDUSTRIAL COMPARISON

SIC Code (China): 6379 Wholesale of other machinery and electronic products

Indicators (2009)	SC	Industry average
Return on net assets (%)	26.90	33.24
Return on total assets (%)	4.60	13.80
Net profit margin (%)	1.72	11.35
Turnover of total assets	2.68	1.24
Turnover of current assets	2.84	1.71
Turnover of account receivable	5.28	5.45
Asset liability ratio (%)	82.91	58.53
Current ratio	1.14	1.28
Quick ratio	1.03	1.04

ANALYSIS

This report mainly provides analysis of subject’s indicators in 2009. SC’s profitability indicators in 2009 are below industry average, indicating that its profitability is poor. SC’s turnover of total assets and turnover of current assets are above industry average, indicating that its assets operation ability is good. SC’s Turnover of account receivable shows that its debt recovery speed is average. SC’s asset liability ratio is above industry average which indicates that its long-term solvency is weak. In addition, its current ratio and quick ratio indicates that its short-term solvency is a little weak.

INDUSTRY PROFILE

SIC Code (China): 6379 wholesale of other machinery and electronic products

Industry Definition: It refers to wholesale, import and export activities of metal ware, special equipment, general equipment, electrical machinery, electronic products, transport equipment, instrument and meter, etc. This industry includes the wholesale of bearings, gears, valves, compressors, ventilators etc.

Status Quo & Trend

In the first half of 2010, there were a large number of investment projects coming into operation. In addition, many new projects’ operation scales were improved in 2009. These all help the engineering machinery industry keep prosperous. The data released by Customs Bureau shows, from January to April in 2010, the export amounts of machinery products reached USD 260,280,000,000, increasing by 31.3%. In addition, the export demand of bearings in our country is strong. These all indicate a hopeful outlook of this industry. The close international economic cooperation provides our economy with satisfactory development opportunities. So with the steady increase of GDP and the rapid development of equipment manufacturing industry, our country’s demand of bearings will continue increasing steadily.

GENERAL COMMENTS

Subject Company was established in April, 2006 as a limited liability company with a registration capital of 500,000 Chinese Yuan. SC mainly deals with the wholesale and retail business of bearings. SC’s business scale is small despite its long history. Its fame in the industry still needs to be promoted.

SC’s existing financial data shows that its main business income in 2009 increased a lot compare with that of 2008. That indicates that SC’s business development in 2009 is good. SC’s accounts receivable in 2009 is large, indicating that its clients held some of its capitals which would on one hand help promote its marketing business to some degree but on the other hand increase the bad debt risks. There were many notes payable and accounts payable in 2009 which indicates that SC occupied some capitals of its suppliers. Although it is favorable to its capital turnover, SC’s debt-paying pressure is increased. SC’s asset-liability ratios in the recent two years were both high which indicates that its long-term solvency is weak and its debt paying pressure is high.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.91
UK Pound	1	Rs.87.38
Euro	1	Rs.70.24

INFORMATION DETAILS

Report Prepared by :

MNL

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.