MIRA INFORM REPORT

Report Date :

17.08.2013

IDENTIFICATION DETAILS

Name :	EUTEC TRADING (SHANGHAI) CO. LIMITED
Registered Office :	Room 1902, Zhengda Cubic Building, No. 58 Changliu Road, Pudong New District, Shanghai 200135 PR
Country :	China
Financials (as on) :	31.12.2012
Date of Incorporation :	26.08.1998
Com. Reg. No.:	310115400055528
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Subject is engaged in selling chemicals.
No. of Employees :	14

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 :	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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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 2012 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 under 8% for 2012. An economic slowdown in Europe contributed to China's, and is expected to further drag Chinese growth in 2013. 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

EUTEC TRADING (SHANGHAI) CO., LTD.

ROOM 1902, ZHENGDA CUBIC BUILDING, NO. 58 CHANGLIU ROAD,

PUDONG NEW DISTRICT, SHANGHAI 200135 PR CHINA

TEL: 86 (0) 21-33927391

FAX: 86 (0) 21-33927930

EXECUTIVE SUMMARY

INCORPORATION DATE : AUG. 26, 1998

REGISTRATION NO. : 310115400055528

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : LIU FENG (CHAIRMAN)

STAFF STRENGTH : 14

REGISTERED CAPITAL : USD 200,000

BUSINESS LINE : TRADING

TURNOVER : CNY 99,240,000 (AS OF DEC. 31, 2012)

EQUITIES : CNY 17,090,000 (AS OF DEC. 31, 2012)

PAYMENT : AVERAGE

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.12 = 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: SC’s correct name should be the heading one, while the given name (Eutec Chemical Co., Ltd.) belongs to SC’s related company which is operating in Taiwan.

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 Aug. 26, 1998.

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 International trade, transit trade, trade and trade agent among enterprises within the bonded areas; wholesale, commission agency (excluding auction) of chemical products (excluding dangerous goods), rubber products, textiles, machinery and equipment, electronic products, the import and export of the above products and related ancillary services; simple processing within the bonded area; Advisory Services within the bonded area (with permit if needed).

SC is mainly engaged in selling chemicals

Liu Feng is legal representative and chairman of SC at present.

SC is known to have approx. 14 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Shanghai. SC’s employee refused to release the detailed information of the premise.

http://www.eutec.com.cn/ The design is professional and the content is well organized. At present it is in both Chinese and English versions.

E-mail: eutec@eutec.com.cn

No significant events or changes were found during our checks with local AIC.

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

MAIN SHAREHOLDERS:

Name % of Shareholding

Eutec Chemical (H.K.) Company Limited 100

Registration no.: 0325272

Legal form: private

Incorporation date: 1991-9-10

l Legal Representative and Chairman:

Liu Feng is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative and chairman.

SC is mainly engaged in selling chemicals.

SC’s products mainly include:

Nucleating agent

Antioxidant

Light stabilizers

Photoinitiator

Halogen-free flame retardant

Other functional additives

SC sources its materials 100% from domestic market. SC sells 80% of its products in domestic market, and 20% to overseas market.

The buying terms of SC include Check, 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.

Eutec Chemical Co., Ltd.

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

Eutec Chemical Co., Ltd. was established in September 1990 in Taipei for the development, manufacturing and marketing of specialty chemicals.

Add: #1403, 13F, 96, Sec.2, Chung Shan N. Rd., Taipei 10449, Taiwan, R.O.C.

Tel: +886-2-2531-2309

Fax: +886-2-2531-2303

Email: eutec@eutec.com.tw

Web: www.eutec.com.tw

Eutec Fine Chemical (Suzhou) Co., Ltd

Office:

Eutec Trading (Shanghai) Co., Ltd. Shanghai Office

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

Registration no.: 800843

Principal: Zeng Yufeng

Incorporation date: 2002-9-26

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, 2012
Cash & bank	10,110
Bills receivable	0
Inventory	9,360
Accounts receivable	21,550
Other Accounts receivable	12,030
Advances to suppliers	4,410
Dividends receivable	0
Other current assets	1,600
	------------------
Current assets	59,060
Fixed assets net value	560
Long term investment	0
Intangible and other assets	50
	------------------
Total assets	59,670
	=============
Short-term loans	5,550
Bills payable	0
Accounts payable	26,410
Advances from clients	7,530
Accrued payroll	0
Tax payable	160
Other Accounts payable	2,920
Other current liabilities	10
	------------------
Current liabilities	42,580
Long term liabilities	0
	------------------
Total liabilities	42,580
Equities	17,090
	------------------
Total liabilities & equities	59,670
	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2012
Turnover	99,240
Cost of goods sold	90,920
Taxes and additional of main operation	100
Sales expense	2,270
Management expense	2,480
Finance expense	630
Non-operating income	500
Non-operating expense	0
Profit before tax	3,300
Less: profit tax	1,000
Profits	2,300

Important Ratios

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

	As of Dec. 31, 2012
*Current ratio	1.39
*Quick ratio	1.17
*Liabilities to assets	0.71
*Net profit margin (%)	2.32
*Return on total assets (%)	3.85
*Inventory /Turnover ×365	35 days
*Accounts receivable/Turnover ×365	80 days
*Turnover/Total assets	1.66
* Cost of goods sold/Turnover	0.92

PROFITABILITY: AVERAGE

l The turnover of SC appears average in its line.

l SC’s net profit margin remains in an average level.

l SC’s return on total assets remains in an average 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 average.

l The accounts receivable of SC appears average.

l SC’s short-term loan appears average in 2012.

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 average.

Overall financial condition of the SC: Stable.

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 62.82
UK Pound	1	Rs. 96.57
Euro	1	Rs. 82.45

INFORMATION DETAILS

Report Prepared by :

NIS

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.