MIRA INFORM REPORT

Report Date :

18.04.2013

IDENTIFICATION DETAILS

Name :	PICHEIR ENTERPRISE (XIAMEN) CO., LTD.
Registered Office :	207-208, No. 15, Xiangxing 1^st Road, Free Trade Zone, Xiamen, Fujian Province, 361006 Pr
Country :	China
Financials (as on) :	31.12.2012
Date of Incorporation :	05.11.2009
Com. Reg. No.:	350298200010344
Legal Form :	Limited Liabilities Company
Line of Business :	Subject engaged in selling cabbage palm, electronic products and garments.
No. of Employees :	6

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 :	Slow
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

PICHEIR ENTERPRISE (xiamen) CO., LTD.

207-208, NO. 15, XIANGXING 1^ST ROAD, FREE TRADE ZONE,

XIAMEN, fujian province, 361006 PR CHINA

TEL: 86 (0) 592-5762155

FAX: 86 (0) 592-5762622

EXECUTIVE SUMMARY

INCORPORATION DATE : Nov. 5, 2009

REGISTRATION NO. : 350298200010344

REGISTERED LEGAL FORM : Limited liabilities company

chief executive : QIU HUARONG (CHAIRMAN)

STAFF STRENGTH : 6

REGISTERED CAPITAL : CNY 1,000,000

BUSINESS LINE : TRADING

TURNOVER : CNY 1,180,000 (AS OF DEC. 31, 2012)

EQUITIES : CNY 370,000 (AS OF DEC. 31, 2012)

PAYMENT : AVERAGE

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : Fair

OPERATIONAL TREND : fair

GENERAL REPUTATION : average

EXCHANGE RATE : CNY 6.18 = 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: The “Wanshan Third Plant of Layer 2 of 3, No. 78, Huli Avenue, Huli District, Xiamen” is SC’s registered address and “No. 16, Xinfengsan Road, Torch Section of Xiamen, Fujian Province” was SC’s former operation address; the present operating address should be the heading one. The given contact person Liu Weina (刘伟娜) was SC’s former legal representative.

SC was registered as a limited liabilities co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Nov. 5, 2009.

Company Status: Limited liabilities co.

This form of business in PR China is defined as a legal person. No more than fifty shareholders contribute its registered capital jointly. 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 CNY 30,000.

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 30% 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.

SC’s registered business scope includes manufacturing, processing and selling garments, shoes, hats and textiles; wholesaling & retailing arts & crafts, daily necessities, textiles, machinery equipment, office stationery, electronic products, hardware, auto parts, building materials, computer & parts, sporting goods, metal materials, logistics equipment, coffee utensil, fishing equipment, furniture, energy conservation & environmental protection products, plumbing sanitary ware; importing & exporting commodities and technology, excluding the items prohibited or limited by the country.

SC is mainly engaged in selling cabbage palm, electronic products and garments.

Qiu Huarong is the legal representative, chairman and general manager of SC at present.

SC is known to have approx. 6 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in Xiamen. The detailed premise information is unspecified.

http://www.picheir.com The design is professional and the content is well organized. At present it is in Chinese version.

Email: rick.qiu@picheir.com

Certificates:

===========

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
Unknown	Chinese name	哔嘉商贸（厦门）有限公司	Present one
	Legal representative	Liu Weina	Present one
	Shareholdings	Liu Weina 60% Qiu Huafeng 40%	Present ones

Note: SC changed its Chinese, while its English name remains the same.

For the past two years there is no record of litigation.

MAIN SHAREHOLDERS:

Name % of Shareholding

Qiu Huarong 60

Qiu Huafeng 40

l Legal Representative, Chairman and General Manager:

Qiu Huarong is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative, chairman and general manager.

SC is mainly engaged in selling cabbage palm, electronic products and garments.

SC’s products mainly include: coconut shell charcoal, coco peat, coir fibre, etc.

The products are mainly applied in industrial production, landscaping and erosion control.

SC sources its materials 30% from domestic market, and 70% from overseas market. SC sells 95% of its products in domestic market, and 5% 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 refused to release its major clients and suppliers.

SC is not known to have the subsidiary at present.

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.

Agricultural Bank of China

AC#：N/A

Relationship: Normal.

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2011	As of Dec. 31, 2012
Cash & bank	80	40
Inventory	430	30
Accounts receivable	0	370
Other Accounts receivable	0	0
Advances to suppliers	40	230
Other current assets	0	10
	------------------	------------------
Current assets	550	680
Fixed assets net value	20	10
Long-term investment	0	0
Intangible and other assets	0	0
	------------------	------------------
Total assets	570	690
	=============	=============
Short loans	0	0
Accounts payable	20	190
Advance from customers	30	60
Other Accounts payable	200	70
Taxes payable	-80	0
Other current liabilities	0	0
	------------------	------------------
Current liabilities	170	320
Long term liabilities	0	0
	------------------	------------------
Total liabilities	170	320
Equities	400	370
	------------------	------------------
Total liabilities & equities	570	690
	=============	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2012
Turnover	1,180
Cost of goods sold	1,000
Sales expense	20
Management expense	200
Finance expense	-10
Profit before tax	-30
Less: profit tax	0
Profits	-30

Important Ratios

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

	As of Dec. 31, 2011	As of Dec. 31, 2012
*Current ratio	3.24	2.13
*Quick ratio	0.71	2.03
*Liabilities to assets	0.30	0.46
*Net profit margin (%)	/	-2.54
*Return on total assets (%)	/	-4.35
*Inventory /Turnover ×365	/	10 days
*Accounts receivable/Turnover ×365	/	115 days
*Turnover/Total assets	/	1.71
* Cost of goods sold/Turnover	/	0.85

PROFITABILITY: FAIR

l The turnover of SC appears average in its line in 2012.

l SC’s net profit margin is fair in 2012.

l SC’s return on total assets is fair in 2012.

l SC’s cost of goods sold is average, comparing with its turnover in 2012.

LIQUIDITY: AVERAGE

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

l SC’s quick ratio is maintained in a fair level in 2011 and in a fairly good level in 2012.

l The inventory of SC appears fairly large in 2011 and average in 2012.

l The accounts receivable of SC appears fairly large in 2012.

l SC has no short-term loan in both years.

l SC’s turnover is in an average level, comparing with the size of its total assets in 2012.

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: Fair.

SC is considered small-sized in its line with fair financial conditions. The large amount of accounts receivable could be a threat to SC’s financial condition.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.94
UK Pound	1	Rs.82.76
Euro	1	Rs.71.04

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.