MIRA INFORM REPORT

Report Date :

04.02.2013

IDENTIFICATION DETAILS

Name :	NINGBO FUTURE IMPORT AND EXPORT CO., LTD.

Registered Office :	Block C, Future Plaza, No. 39, Jiangnan Road, Ningbo Zhejiang Province 315040 Pr

Country :	China

Financials (as on) :	31.12.2012

Date of Incorporation :	28.11.2003

Com. Reg. No.:	330216000000613

Legal Form :	Limited Liabilities Company

Line of Business :	Subject is engaged in international trade mainly include metal materials, wood, steel products, minerals, hardware, nonferrous metal, etc.

No. of Employees :	108

RATING & COMMENTS

MIRA’s Rating :	Ba
	With Financials

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

(31.03.2012)

Current Rating

(30.06.2012)

China

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

NINGBO FUTURE IMPORT AND EXPORT CO., LTD.

BLOCK C, FUTURE PLAZA, NO. 39, JIANGNAN ROAD, NINGBO ZHEJIANG PROVINCE 315040 PR CHINA

TEL: 86 (0) 574-87780225/87791374/87795720

FAX: 86 (0) 574-87050928

EXECUTIVE SUMMARY

Date of Registration : NOVEMBER 28, 2003

REGISTRATION NO. : 330216000000613

LEGAL FORM : Limited liabilities company

CHIEF EXECUTIVE : SHEN ZHIHONG (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 100,000,000

staff : 108

BUSINESS CATEGORY : TRADING

Revenue : CNY 3,979,770,000 (AS OF DEC. 31, 2012)

EQUITIES : CNY -59,710,000 (AS OF DEC. 31, 2012)

WEBSITE : www.futureie.com

E-MAIL : future@future-trade.com.cn

PAYMENT : AVERAGE

MARKET CONDITION : competitive

FINANCIAL CONDITION : FAIR

OPERATIONAL TREND : fairly steady

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.22 = 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

Not yet be determined

LEGAL STATUS & HISTORY

SC was established as a limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 330216000000613 on November 28, 2003.

SC’s Organization Code Certificate No.: 75626465-5

SC’s registered capital: CNY 100,000,000

SC’s paid-in capital: CNY 100,000,000

Registration Change Record:-

Date	Change of Contents	Before the change	After the change
2009	Registered Capital	CNY 40,000,000	CNY 100,000,000

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

Name of Shareholder (s)	% of Shareholding
Zhejiang Future Investment Co., Ltd.	99.9
Zhejiang Jiaye Investment Group Co., Ltd.	0.1

SC’s Chief Executives:-

Position	Name
Legal Representative and Chairman	Shen Zhihong

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Zhejiang Future Investment Co., Ltd. 99.9

Zhejiang Jiaye Investment Group Co., Ltd. 0.1

Zhejiang Future Investment Co., Ltd.

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

Date of Registration: November 25, 2003

Registration No.: 330200000013886

Legal Form: Shares limited Company

Chief Executive: Shen Zhihong

Registered Capital: CNY 251,000,000

Zhejiang Jiaye Investment Group Co., Ltd.

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

Date of Registration: December 16, 2005

Registration No.: 330400000000057

Chief Executive: Luo Rongqiang

Registered Capital: CNY 50,000,000

MANAGEMENT

Shen Zhihong, Legal Representative and Chairman

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

Gender: M

Age: 49

Qualification: University

Working experience (s):

From 2003 to present, working in SC as legal representative and chairman Also working in Zhejiang Future Investment Co., Ltd. as legal representative

BUSINESS OPERATION

SC’s registered business scope includes importing and exporting commodities and technology, excluding the items limited or prohibited by state; importing steel products; wholesaling and retailing metal materials, wood, steel products, minerals, building materials, cultural and sports facilities and equipments, clothing, daily necessities, agricultural and livestock products, mechanical equipments, hardware, electronic products; selling, processing and manufacturing nonferrous metal; industrial investment; commodity information consulting service.

SC is mainly engaged in international trade.

SC’s products mainly include: metal materials, wood, steel products, minerals, hardware, nonferrous metal, etc.

SC sources its materials 60% from domestic market, and 40% from overseas market. SC sells 50% of its products in domestic market, and 50% 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 T/T, L/C and Credit of 30-60 days.

Staff & Office:

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

SC is known to have approx. 108 staff at present.

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

RELATED COMPANY

SC is known to have the following subsidiaries,

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

Ningbo Cimei International Trade Co., Ltd.

Registration No.: 330214000023533

Date of Registration: January 20, 2010

Legal Form: One-person Limited Liabilities Company

Registered Capital: CNY 20,000,000

Legal Representative: Zhou Lijun

Etc.

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

Industrial & Commercial Bank of China Ningbo Branch

AC#: 3901020009000103756

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2010	As of Dec. 31, 2011	As of Dec. 31, 2012
Cash	330,700	193,720	204,320
Accounts receivable	91,750	194,130	184,560
Advances to suppliers	0	0	0
Other receivable	102,870	515,490	139,210
Inventory	118,140	316,610	232,160
Prepaid expenses	0	0	0
Non-current assets within one year	0	0	0
Other current assets	152,050	139,180	90,980
	------------------	------------------	------------------
Current assets	795,510	1,359,130	851,230
Long-term investment	114,050	161,960	171,940
Fixed assets	10,610	25,890	16,850
Construction in progress	0	0	0
Intangible asset	0	0	0
Deferred income tax assets	0	0	0
Other non-current assets	530	400	10,540
	------------------	------------------	------------------
Total assets	920,700	1,547,380	1,050,560
	=============	=============	=============
Short-term loans	197,950	488,490	432,670
Notes payable	0	0	0
Accounts payable	233,380	529,620	328,940
Wages payable	0	0	0
Taxes payable	0	0	0
Advances from clients	0	0	0
Other payable	200	61,380	65,790
Other current liabilities	296,510	121,760	282,870
	------------------	------------------	------------------
Current liabilities	728,040	1,201,250	1,110,270
Non-current liabilities	0	0	0
	------------------	------------------	------------------
Total liabilities	728,040	1,201,250	1,110,270
Equities	192,660	346,130	-59,710
	------------------	------------------	------------------
Total liabilities & equities	920,700	1,547,380	1,050,560
	=============	=============	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2011	As of Dec. 31, 2012
Revenue	3,789,450	3,979,770
Cost of sales	3,423,950	3,641,995
Sales expense	173,060	--
Management expense	14,260	--
Finance expense	8,670	--
Profit before tax	208,410	-411,850
Less: profit tax	52,950	0
Profits	155,460	-411,850

Important Ratios

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

	As of Dec. 31, 2010	As of Dec. 31, 2011	As of Dec. 31, 2012
*Current ratio	1.09	1.13	0.77
*Quick ratio	0.93	0.87	0.56
*Liabilities to assets	0.79	0.78	1.06
*Net profit margin (%)	--	4.10	-10.35
*Return on total assets (%)	--	10.05	-39.20
*Inventory / Revenue ×365	--	31 days	22 days
*Accounts receivable/ Revenue ×365	--	19 days	17 days
* Revenue/Total assets	--	2.45	3.79
* Cost of sales / Revenue	--	0.90	0.92

FINANCIAL COMMENTS

PROFITABILITY: POOR

The revenue of SC appears fairly good in its line, and it increased in 2012.

SC’s net profit margin is average in 2011, poor in 2012.

SC’s return on total assets is fairly good in 2011, poor in 2012.

SC’s cost of goods sold is average, comparing with its revenue.

LIQUIDITY: FAIR

The current ratio of SC is maintained in a normal level in 2010 and 2011, fair in 2012.

SC’s quick ratio is maintained in a normal level in 2010 and 2011, fair in 2012.

The inventory of SC is maintained in an average level.

The accounts receivable of SC appears average.

The short-term loans of SC appear large in 2011 and 2012.

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

LEVERAGE: FAIR

The debt ratio of SC is high in 2012.

The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fair.

CONCLUSIONS

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.32
UK Pound	1	Rs.84.60
Euro	1	Rs.72.63

INFORMATION DETAILS

Report Prepared by :

SDA

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.