MIRA INFORM REPORT

Report Date :

20.02.2013

IDENTIFICATION DETAILS

Name :	TAINERGY TECH (KUNSHAN) CO., LTD.
Registered Office :	No. 1288 Fuchunjiang Road, Penglang, Kunshan Development Zone, Kunshan City, Jiangsu Province, 215300 Pr
Country :	China
Financials (as on) :	31.12.2011
Date of Incorporation :	25.06.2008
Com. Reg. No.:	320000400003497
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Subject is engaged in manufacturing and selling high-tech green battery (solar cells) and related battery components.
No. of Employees :	137

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 (31.03.2012)	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 and address

TAINERGY TECH (KUNSHAN) CO., LTD.

no. 1288 fuchunjiang road, penglang, KUNSHAN DEVELOPMENT ZONE, KUNSHAN CITY, JIANGSU PROVINCE, 215300 PR CHINA

TEL: 86 (0) 512-55259988 FAX: 86 (0) 512-55258989

EXECUTIVE SUMMARY

INCORPORATION DATE : JUNE 25, 2008

REGISTRATION NO. : 320000400003497

REGISTERED LEGAL FORM : Wholly foreign-owned enterprise

CHIEF EXECUTIVE : MR. xie qingfu (CHAIRMAN)

STAFF STRENGTH : 137

REGISTERED CAPITAL : USD 18,000,000

BUSINESS LINE : MANUFACTURING AND TRADING

TURNOVER : CNY 1,110,000 (AS OF DEC. 31, 2011)

EQUITIES : CNY 113,200,000 (AS OF DEC. 31, 2011)

PAYMENT : AVERAGE

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : fairLY STABLE

OPERATIONAL TREND : fairly STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.24 = 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 June 25, 2008.

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, designing and manufacturing high-tech green battery (solar cells) and related battery components, selling self-made products; commercial wholesale, import and export of similar products and wafers. (with permit if needed)

SC is mainly engaged in manufacturing and selling high-tech green battery (solar cells) and related battery components.

Mr. Xie Qingfu is the legal representative and chairman of SC at present.

SC is known to have approx. 137 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the development zone of Kunshan. SC’s employee refused to release the gross area of the premise.

SC is not known to host website of its own at present.

Changes of its registered information:

Date of change	Item	Before the change	After the change
2011	Registered capital	USD 60,000,000	Present amount

According to SC’s accountant Miss Pei, SC started its normal production in October of 2011.

MAIN SHAREHOLDERS:

Name % of Shareholding

Tainergy Tech Holding (Samoa) Co., Ltd. 100

Legal representative, chairman and general manager:

Mr. Xie Qingfu, Taiwanese, he is currently responsible for the overall and daily management of SC.

Working Experience(s):

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

*Directors

Zhang Yuanrong

Zhang Zuozhong

Xie Mingkai

Yang Dayi

*Supervisor

Shen Lijuan

SC started its normal production in October of 2011.

SC is mainly engaged in manufacturing and selling high-tech green battery (solar cells) and related battery components.

Main Products: solar cells, etc.

SC sources its materials 70% from domestic market and 30% from overseas market. SC sells 90% of its products in domestic market, and 10% 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’s management declined to release its major suppliers and clients.

Ultimate parent company:

Tainergy Tech Co., Ltd. (Taiwan)

……………………………………..

Website: http://www.tainergy.com.tw/

Headquarters: 3F, No. 97, Sec. 2, Nan-Kang Rd., Taipei, Taiwan

Tel: +886-2-2788-3798

Factory address: No.5, Tzu-Chiang lst Road, Chungli Industrial Zone, Taoyuan Hsien, Taiwan

Tel: +886-3-272-6688 　

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’s management declined to release its bank details.

Balance Sheet

Unit: CNY’000

	as of Dec. 31, 2010	as of Dec. 31, 2011
Cash & bank	3,860	12,250
Inventory	0	650
Accounts receivable	0	3,000
Advances to supplies	15,000	49,000
Other receivables	30	800
Other current assets	30	8,980
	------------------	------------------
Current assets	18,920	74,680
Fixed assets net value	10	88,900
Projects under construction	38,000	21,880
Long-term investments	0	0
Intangible assets	7,260	7,140
Other assets	1,080	30
	------------------	------------------
Total assets	65,270	192,630
	=============	=============
Short loans	0	80,930
Accounts payable	2,120	1,950
Bills payable	0	1,840
Advances from customers	0	10
Salaries and welfare payable	4	350
Taxes payable	430	-20,640
Other accounts payable	140	14,840
Other current liabilities	6	150
	-----------------	-----------------
Current liabilities	2,700	79,430
Long term liabilities	0	0
	------------------	------------------
Total liabilities	2,700	79,430
Shareholders equities	62,570	113,200
	------------------	------------------
Total liabilities & equities	65,270	192,630
	=============	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2010	As of Dec. 31, 2011
Turnover	0	1,110
Cost of goods sold	0	1,160
Sales expense	0	20
Management expense	90	8,480
Finance expense	-1,710	60
Non-operating income	0	110
Non-operating expense	10	160
Profit before tax	1,610	-8,670
Less: profit tax	610	-20
Profits	1,000	-8,650

Note: SC started its normal production in October of 2011.

Important Ratios

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

	As of Dec. 31, 2010	As of Dec. 31, 2011
*Current ratio	7.01	0.94
*Quick ratio	7.01	0.93
*Liabilities to assets	0.04	0.41
*Net profit margin (%)	/	-779.28
*Return on total assets (%)	1.53	-4.49
*Inventory /Turnover ×365	/	214 days
*Accounts receivable/Turnover ×365	/	987 days
*Turnover/Total assets	/	0.01
* Cost of goods sold/Turnover	/	1.05

PROFITABILITY: FAIR

The turnover of SC appears fair in its line in 2011.

SC’s net profit margin is poor in 2011.

SC’s return on total assets is average in 2010 but fair in 2011.

SC’s cost of goods sold is high in 2011, comparing with its turnover.

LIQUIDITY: FAIR

The current ratio of SC is maintained in a normal level in 2010 but in a fair level in 2011.

SC’s quick ratio is maintained in a normal level in both years.

The inventory is maintained in an average level in 2011.

The accounts receivable of SC is maintained in an average level 2011.

The short-term loan of SC appears large in 2011.

SC’s turnover is in a poor level in 2011, comparing with the size of its total assets.

LEVERAGE: AVERAGE

The debt ratio of SC is low.

The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly stable.

SC is considered medium-sized in its line with fairly stable financial conditions. The large amount of short-term loan could be a threat to SC’s financial condition.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.29
UK Pound	1	Rs.84.09
Euro	1	Rs.72.44

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.