MIRA INFORM REPORT

Report Date :

27.09.2012

IDENTIFICATION DETAILS

Name :	SHANGHAI SAN KAI IMP. & EXP. CO., LTD.
Registered Office :	No. 168, Taibei West Road, Waigaoqiao Free Trade Zone, Pudong New Area, Shanghai 200131 Pr
Country :	China
Financials (as on) :	31.12.2011
Date of Incorporation :	05.01.1996
Com. Reg. No.:	310115000317713
Legal Form :	One-Person Limited Liability Company
Line of Business :	import and export trade agency
No. of Employees :	143 employees

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 (31.03.2012)	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 & address

SHANGHAI SAN KAI IMP. & EXP. CO., LTD.

NO. 168, TAIBEI WEST ROAD, WAIGAOQIAO FREE TRADE ZONE

PUDONG NEW AREA, SHANGHAI 200131 PR CHINA

TEL: 86 (0) 21-50460794/51324116

FAX: 86 (0) 21-51119721/51119662

EXECUTIVE SUMMARY

Date of Registration : JANUARY 5, 1996

REGISTRATION NO. : 310115000317713

LEGAL FORM : One-person Limited Liability Company

CHIEF EXECUTIVE : JIANG QIMIN (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : cny 5,000,000

staff : 143

BUSINESS CATEGORY : trade agency

Revenue : CNY 3,120,940,000 (AS OF DEC. 31, 2011)

EQUITIES : CNY 107,200,000 (AS OF DEC. 31, 2011)

WEBSITE : N/A

E-MAIL : zhuxi@sankai.com.cn

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : fairly stable

OPERATIONAL TREND : fairly steady

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.31 = USD 1

Adopted abbreviations (as follows)

SC - Subject Company (the company inquired by you)

N/A – Not available

CNY – China Yuan Ren Min Bi

OPERATIONAL TREND & GENERAL REPUTATION

This section aims at indicating the relative positions of SC in respect of its operational trend & general reputation

Operational Trend:- General Reputation:-

Upward Excellent

Steady Good

Fairly Steady Fairly Good

Ordinary Average

Fair Fair

Stagnant Detrimental

Downward Not known

Not known Not yet be determined

LEGAL STATUS & HISTORY

SC was established as a limited liabilities company of PRC on January 5, 1996. However, SC changed to present legal form, and was registered as one-person limited liability company of PRC with State Administration for Industry & Commerce (SAIC) under registration No.: 310115000317713 on March 26, 2010.

SC’s Organization Code Certificate No.: 63060472-2

SC’s registered capital: cny 5,000,000

SC’s paid-in capital: cny 5,000,000

Registration Change Record:-

Date	Change of Contents	Before the change	After the change
1998-11-04	Legal Representative	Zhang Wenya	Jiang Qimin
2004-04-10	Shareholder (s) (% of Shareholding)	Shanghai Light Industry International (Group) Co., Ltd. 3% Shanghai Bonded Commodity No. 3 Exchange Market 7% Shanghai Waigaoqiao Free Trade Zone 3U-Developmet Co., Ltd. 90%	Shanghai Bonded Commodity No. 3 Exchange Market 10% Shanghai Waigaoqiao Free Trade Zone 3U-Developmet Co., Ltd. 90%
2010-03-26	Shareholder (s) (% of Shareholding)	Shanghai Bonded Commodity No. 3 Exchange Market 10% Shanghai Waigaoqiao Free Trade Zone 3U-Developmet Co., Ltd. 90%	Shanghai Waigaoqiao Free Trade Zone 3U-Developmet Co., Ltd. 100%
	Legal Form	Limited liabilities company	One-person limited liability company
--	Registration No.	3101151012660	310115000317713

Current Co search indicates SC’s shareholders & chief executives are as follows:-

Name of Shareholder (s)	% of Shareholding
Shanghai Waigaoqiao Free Trade Zone 3U-Developmet Co., Ltd.	100

SC’s Chief Executives:-

Position	Name
Legal Representative, Chairman, and General Manager	Jiang Qimin

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Shanghai Waigaoqiao Free Trade Zone 3U-Developmet Co., Ltd. 100

Shanghai Waigaoqiao Free Trade Zone 3-U Development Co., Ltd. is mainly responsible for the development of central 3 sq km area of Waigaoqiao Free Trade Zone. Its main services cover infrastructure construction, real estate development and management, import and export cargos storage and distribution, container transportation and dismantlement business; international trade, trade and agent inside free trade zone, boned warehousing and simple commercial processing business inside free trade zone; project investment, newly established enterprises; project contract; providing consulting service enterprises or constitutions home and abroad.

Registration No.: 310115000327219

Legal Representative: Li Yunzhang

Registered Capital CNY 324,923,040

Legal Form: One-person limited liability company

Address: No. 2001, Yanggao Bei Road, Shanghai, P.R. China

Post Code: 200231

Tel.: 86 (0) 21-50460888

Fax: 86 (0) 21-50460123

Website: www.pudong-3u.com

E-mail: lium@pudong-3u.com

MANAGEMENT

Jiang Qimin , Legal Representative, Chairman, and General Manager

-----------------------------------------------------------------------------------------------------

Ø Gender: M

Ø Age: 50’s

Ø Qualification: University

Ø Working experience (s):

From 1998 to present, working in SC as legal representative, chairman, and general manager

Also working in Shanghai Waigaoqiao Logistics Park Trade Service Co., Ltd. and Shanghai Tielian-Huaqing Chemical Warehousing Co., Ltd. as legal representative, and in Shanghai Waigaoqiao International Trading Operation Center Co., Ltd. as CEO

Zhai Junjie , Sales Manager

----------------------------------------------

Ø Gender: M

Ø Tel: 86 (0) 21-51119777

BUSINESS OPERATION

SC’s registered business scope includes importing and exporting various kinds of commodities and technology, excluding the goods forbidden by the government, processing with imported materials, processing with imported samples, assembling with imported parts, and compensation trade in agreement; counter trade & transit trade; selling clocks and acting to sell automobiles.

SC is mainly engaged in acting as an import and export trade agency.

SC’s products mainly include electronic products, metallic material, chemical products, automobile, technology, light products, etc.

SC sources its materials 80% from domestic market, and 20% from overseas market, mainly Japan, etc. SC sells 40% of its products in domestic market, and 60% to overseas market, mainly Europe and America.

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.

Staff & Office:

--------------------------

SC is known to have approx. 143 staff at present.

SC rents an area as its operating office, but the detailed information is unknown.

RELATED COMPANY

Related Companies (According to http://www.sankai.com.cn),

u Shanghai Waigaoqiao DG&chemical Commodities Exchange Market Trade and Management Co., Ltd.

Registration No.: 310115000065269

Date of Registration: August 30, 1993

Legal Form: Limited Liabilities Company

Registered Capital: CNY 5,000,000

Legal Representative: Lu Tianji

u Shanghai Waigaoqiao Logistics Park Trade Service Co., Ltd.

Registration No.: 310115000851596

Date of Registration: August 17, 2004

Legal Form: Limited Liabilities Company

Registered Capital: CNY 3,000,000

Legal Representative: Jiang Qimin

u Shanghai Tielian-Huaqing Chemical Warehousing Co., Ltd.

Registration No.: 310115000768718

Date of Registration: June 16, 2003

Legal Form: Limited Liabilities Company

Registered Capital: CNY 17,000,000

Legal Representative: Jiang Qimin

u Shanghai Waigaoqiao International Logistics Co., Ltd.

Registration No.: 310115000742855

Date of Registration: March 5, 2003

Legal Form: One-person Limited Liabilities Company

Registered Capital: CNY 50,000,000

Legal Representative: Li Yunzhang

Etc.

SC is known to have one subsidiary at present,

u Sankai International Trading (Hong Kong) Co., Limited

CR No.: 1226500

Date of Registration: April 11, 2008

Company Status: Private

Active Status: Live

PAYMENT

Overall payment appraisal:

( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.

BANKING

Basic Bank:

China Everbright Bank Waigaoqiao Sub-branch

AC#: 106000-00303011788

Agricultural Bank of China

AC#: N/a

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2010	As of Dec. 31, 2011
Cash	3,515,960	3,265,340
Notes receivable	0	0
Accounts receivable	89,280	91,770
Advances to suppliers	2,490	2,200
Other receivable	34,010	18,880
Subsidies receivable	0	0
Inventory	6,710	5,620
Non-current assets within one year	0	0
Other current assets	650	0
	------------------	------------------
Current assets	3,649,100	3,383,810
Long-term investment	3,380	3,440
Fixed assets	3,650	2,930
Construction in progress	0	0
Intangible assets	280	90
Long-term prepaid expenses	0	0
Deferred income tax assets	0	0
Other non-current assets	20	0
	------------------	------------------
Total assets	3,656,430	3,390,270
	=============	=============
Short-term loans	3,365,130	3,121,350
Notes payable	0	0
Accounts payable	0	142,000
Wages payable	0	0
Taxes payable	9,610	5,040
Advances from clients	146,640	0
Other payable	28,650	14,680
Other current liabilities	0	0
	------------------	------------------
Current liabilities	3,550,030	3,283,070
Non-current liabilities	0	0
	------------------	------------------
Total liabilities	3,550,030	3,283,070
Equities	106,400	107,200
	------------------	------------------
Total liabilities & equities	3,656,430	3,390,270
	=============	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2010	As of Dec. 31, 2011
Revenue	2,276,460	3,120,940
Cost of sales	2,195,980	3,037,480
Sales expense	33,070	44,080
Management expense	17,170	18,780
Finance expense	-34,140	-44,180
Profit before tax	63,040	65,460
Less: profit tax	14,220	15,830
Profits	48,820	49,630

Important Ratios

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

	As of Dec. 31, 2010	As of Dec. 31, 2011
*Current ratio	1.03	1.03
*Quick ratio	1.03	1.03
*Liabilities to assets	0.97	0.97
*Net profit margin (%)	2.14	1.59
*Return on total assets (%)	1.34	1.46
*Inventory / Revenue ×365	2 days	1 day
*Accounts receivable/ Revenue ×365	15 days	11 days
* Revenue/Total assets	0.62	0.92
* Cost of sales / Revenue	0.96	0.97

FINANCIAL COMMENTS

PROFITABILITY: AVERAGE

l The revenue of SC appears fairly good, and it was rising in 2011.

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

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

l SC’s cost of sales is fairly high, comparing with its revenue.

LIQUIDITY: AVERAGE

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

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

l The inventory of SC appears average.

l The accounts receivable of SC is maintained in an average level.

l The short-term loans of SC appear too large.

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

LEVERAGE: FAIR

l The debt ratio of SC is fairly high.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly Stable.

CONCLUSIONS

SC is considered medium-sized in its line with fairly stable financial conditions. Too large amount of short-term loans may be a threat to SC’s financial condition, but taking into consideration of SC’s good background, the higher credit amount appears to be within SC’s capacities comparing with the above given one.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.58
UK Pound	1	Rs.86.60
Euro	1	Rs.68.94

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.