MIRA INFORM REPORT

Report Date :

29.10.2012

IDENTIFICATION DETAILS

Name :	SABIC INNOVATIVE PLASTICS (SHANGHAI) CO., LTD.
Registered Office :	No. 58 Aidu Road, Waigaoqiao Free Trade Zone, Shanghai, 200131 Pr
Country :	China
Financials (as on) :	31.12.2011
Date of Incorporation :	24.09.1999
Com. Reg. No.:	310115400063219
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Manufacturing and selling thermoplastic engineering plastic products.
No. of Employees :	400

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 :	Slow but correct
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

SABIC INNOVATIVE PLASTICS (SHANGHAI) Co., ltd.

NO. 58 AIDU ROAD, WAIGAOQIAO FREE TRADE ZONE,

SHANGHAI, 200131 PR CHINA

TEL: 86 (0) 21-50460000 FAX: 86 (0) 21-50460100/50461995

EXECUTIVE SUMMARY

INCORPORATION DATE : SEP. 24, 1999

REGISTRATION NO. : 310115400063219

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : MR. YIN ZESHENG (CHAIRMAN)

STAFF STRENGTH : 400

REGISTERED CAPITAL : USD 26,960,000

BUSINESS LINE : MANUFACTURING AND TRADING

TURNOVER : CNY 1,938,270,000 (AS OF DEC. 31, 2011)

EQUITIES : CNY 378,330,000 (AS OF DEC. 31, 2011)

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.26 = 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 Sep. 24, 1999.

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 (including sub-contracted processing), selling thermoplastic engineering plastic products, plastic alloys, sheet, film and other related products, and providing after-sales service and consultation; import and export, wholesales, commission agency (excluding auction) of the similar products to the above ones (excluding specific goods), and providing related service; bonded warehousing and transfer of technology licensing; domestic trade, entrepot trade, trade between bonded area enterprise and trade agent; commercial simple processing within bonded area; business consulting within bonded area (with permit if needed).

SC is mainly engaged in manufacturing and selling thermoplastic engineering plastic products.

Mr. Yin Zesheng has been the legal representative and chairman of SC since Nov. of 2010.

SC is known to have approx. 400 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the free trade zone of Shanghai. SC’s accountant Ms. Hu Yanhong (胡艳红) declined to release the detailed information of the premise.

http://www.sabic-ip.com/ The website belongs to SABIC Innovative Plastics Holding B.V. At present, it is in English version.

E-Mail: gc.info@sabic-ip.com

Changes of its registered information:

Date of change	Item	Before the change	After the change
2006	Registered capital	USD 11,960,000	Present amount
2007	Shareholder	GE Pacific Private Limited (Singapore) 100%	GE Plastics Hong Kong Limited 100%
	Company name	GE Plastics Shanghai Co., Ltd. GE	Present one
	Shareholder’s name	GE Plastics Hong Kong Limited	SABIC Innovative Plastics Hong Kong Limited
2010-11	Legal representative	Yang Hua	Present one
Unknown	Registration No.	312839	Present one

MAIN SHAREHOLDERS:

Name % of Shareholding

SABIC Innovative Plastics Hong Kong Limited 100

Registered Number: 0489603

Incorporated Date: Aug. 23, 1994

Legal Form: Private

Active Status: Live

l Legal Representative and Chairman:

Mr. Yin Zesheng , born in 1956, he is currently responsible for the overall management of SC.

Working Experience(s):

From Nov. of 2010 to present Working in SC as legal representative and chairman

SC is mainly engaged in manufacturing and selling thermoplastic engineering plastic products.

SC’s products mainly include: polycarbonate PC, PC / ABS alloy, etc.

SC sources its materials 2% from domestic market and 98% from the overseas market, mainly from America and Netherlands. SC sells 60% of its products in domestic market and 40% of its products 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, T/T, L/C and Credit of 30-60 days.

Note: SC’s management declined to release its major clients and suppliers.

Sabic (Shanghai) Trading Co., Ltd.

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

Registration No.: 310115400205921

Incorporation Date: 2006-10-08

Chairman: Li Lei

Registered Capital: CNY 28,000,000

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.

China Construction Bank Shanghai Jinqiao Sub-branch

AC#: 31001576613056002108

Relationship: Normal.

Note: SC used to have a bank account in Industrial and Commercial Bank of China, but SC do not use it anymore.

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2011
Cash & bank	44,070
Notes receivable	20,370
Inventory	348,000
Accounts receivable	178,430
Advances to suppliers	3,500
Other accounts receivable	10
Prepaid expenses	2,340
Other current assets	133,050
	-----------------
Current assets	729,770
Fixed assets net value	199,320
Project under construction	105,550
Long term investment	0
Long-term prepaid expenses	0
Other assets	-2,910
Intangible	11,690
	------------------
Total assets	1,043,420
	=============
Short loans	172,890
Notes payable	0
Accounts payable	392,260
Advances from clients	9,270
Accrued payroll	6,200
Welfare payable	0
Taxes payable	-2,040
Provision for expenses	57,750
Dividend receivable	13,430
Other accounts payable	15,330
Other current liabilities	0
Interest payable	0
	------------------
Current liabilities	665,090
Long-term liabilities	0
	------------------
Total liabilities	665,090
Equities	378,330
	------------------
Total liabilities & equities	1,043,420
	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2011
Turnover	1,938,270
Cost of goods sold	1,831,830
Taxes and additional of main operations	1,230
Other business profit	680
Sales expense	43,280
Management expense	69,290
Finance expense	2,240
Subsidy income	5,400
Non-operating income	710
Non-operating expense	10,570
Profit before tax	-13,380
Less: profit tax	-670
Profits	-12,710

Important Ratios

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

	as of Dec. 31, 2011
*Current ratio	1.10
*Quick ratio	0.57
*Liabilities to assets	0.64
*Net profit margin (%)	-0.66
*Return on total assets (%)	-1.22
*Inventory /Turnover ×365	66 days
*Accounts receivable/Turnover ×365	34 days
*Turnover/Total assets	1.86
* Cost of goods sold/Turnover	0.95

PROFITABILITY: FAIR

l The turnover of SC appears good.

l SC’s net profit margin is fair.

l SC’s return on total assets is fair.

l SC’s cost of goods sold is fairly high, comparing with its turnover.

LIQUIDITY: FAIR

l The current ratio of SC is maintained in a normal level.

l SC’s quick ratio is maintained in a fair level.

l The inventory of SC appears fairly large in 2011.

l The accounts receivable of SC appears average in 2011.

l The short-term loan of SC appears average 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 average.

l The risk for SC to go bankrupt is low.

Overall financial condition of the SC: Fairly Stable

SC is considered medium-sized in its line with fairly stable financial conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.63
UK Pound	1	Rs.86.17
Euro	1	Rs.69.74

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.