MIRA INFORM REPORT

Report Date :

22.02.2013

IDENTIFICATION DETAILS

Name :	NEWRISING (TIANJIN) INTERNATIONAL TRADE CO., LTD.
Registered Office :	Room 1304, No. 2 Qiaoxin Park, Jiefang South Road, Hexi District, Tianjin, 300200 Pr
Country :	China
Financials (as on) :	31.12.2012
Date of Incorporation :	05.08.2004
Com. Reg. No.:	120192000017101
Legal Form :	Limited Liabilities Co.
Line of Business :	Engaged in selling chemical products.
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 :	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 and address

NEWRISING (TIANJIN) INTERNATIONAL TRADE CO., LTD.

ROOM 1304, NO. 2 QIAOXIN PARK, JIEFANG SOUTH ROAD, HEXI DISTRICT,

TIANJIN, 300200 PR CHINA

TEL: 86 (0) 22-88339840 FAX: n/a

EXECUTIVE SUMMARY

INCORPORATION DATE : AUG. 5, 2004

REGISTRATION NO. : 120192000017101

REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.

CHIEF EXECUTIVE : MR. LIU WEI (CHAIRMAN)

STAFF STRENGTH : 6

REGISTERED CAPITAL : CNY 1,000,000

BUSINESS LINE : TRADING

TURNOVER : CNY 40,170,000 (UNAUDITED, AS OF DEC. 31, 2012)

EQUITIES : CNY 1,690,000 (UNAUDITED, AS OF DEC. 31, 2012)

PAYMENT : AVERAGE

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.2422 = USD

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 trade name is NewRising International Enterprises Group

SC’s current operating address and contact ways should be the heading ones; while the (Suite G-H 21/F Yunxiang Bldg., Xikang Road, Heping District, Tianjin 300074), tel. no. (0086-22-23246678) and fax no. (0086-22-23241778) were the former ones.

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 Aug. 5, 2004.

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 selling chemical products (excluding flammable, explosive, poisonous chemicals and other dangerous articles), dyes, pigments, light industrial products, mechanical equipment & parts, industrial & civil electronic equipments, packing products and materials, textiles and garments; importing and exporting commodities and technology (not engage in any items prohibited by law and administrative regulations) (in accordance with relative regulations as to the specially operated items).

SC is mainly engaged in selling chemical products.

Mr. Liu Wei has been legal representative, chairman and general manager of SC since 2004.

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 the commercial zone of Tianjin. Detailed premise information is not available at present.

Note: The address (Suite 2607, B2-Jingcai Building, Dagu South Rd. No.459, (300202), Tianjin, China) on SC’s website was the former one.

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

E-Mail: newrising@126.com

Note: the given email (Newrising@126.Combr) was wrong.

Changes of SC’s registered information:

Date	Item	Before changed	After changed
Unknown	Registered no.	1201922003465	Present one

MAIN SHAREHOLDERS:

Name % of Shareholding

Liu Wei 90

Li Yuying 10

l Legal Representative, Chairman and General Manager:

Mr. Liu Wei, about 42 years old, with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

From 2004 to present Working in SC as legal representative, chairman and general manager.

SC is mainly engaged in selling chemical products.

SC’s products mainly include: intermediates for food dyes, intermediates for dyes, Beta Naphtho, Tobias Acid, J-Acid, Gamma Acid, Orthanilic Acid, Para Cresidine and other dyes.

SC sources its merchandises 1% from the overseas market and 99% from domestic market. SC sells 10% of its merchandises in domestic market, and 90% to overseas market, mainly in U.S., India and Mexico, etc.

The buying terms of SC include Check, L/C, T/T and Credit of 30-60 days. The payment terms of SC include Check, T/T, L/C, and Credit of 30-60 days.

*Major Supplier*

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

Tianjin Xinkuo Chemical Plant

Note: SC’s management refused to release its main clients.

According to SC’s website:

Baoding Tianyang Chemical Co., Ltd.

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

Registration no.: 130635000005559

Registered capital: CNY 4,800,000

Legal representative: Ma Jianheng

Shandong Aibote Medicine Science & Chemical Technology Co., Ltd.

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

Registration no.: 371600228009979

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’s suppliers declined to make any comments.

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.

Bank of China Tianjin Branch

AC#：09210916508091001

Relationship: Normal.

Balance Sheet

Unit: CNY’000

	as of Dec. 31, 2012	as of Dec. 31, 2011
Cash & bank	2,020	310
Inventory	200	310
Accounts receivable	3,050	3,080
Other receivables	2,480	5,650
Advances to suppliers	0	0
Other current assets	10	0
	------------------	------------------
Current assets	7,760	9,350
Fixed assets net value	50	60
Long term investment	0	0
Other assets	0	0
	------------------	------------------
Total assets	7,810	9,410
	=============	=============
Short loans	0	0
Accounts payable	5,320	5,780
Advances from clients	0	1,550
Welfare payable	40	40
Tax payable	10	10
Other payable	750	350
Other current liabilities	0	0
	------------------	------------------
Current liabilities	6,120	7,730
Long term liabilities	0	0
	------------------	------------------
Total liabilities	6,120	7,730
Equities	1,690	1,680
	------------------	------------------
Total liabilities & equities	7,810	9,410
	=============	=============

Income Statement

Unit: CNY’000

	as of Dec. 31, 2012
Turnover	40,170
Cost of goods sold	39,200
Taxes and additional of main operation	10
Sales expense	320
Management expense	540
Finance expense	90
Profit before tax	8
Less: profit tax	2
Profits	6

Note: The Financial Report for Year 2012 hasn’t been audited.

Important Ratios

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

	as of Dec. 31, 2012	as of Dec. 31, 2011
*Current ratio	1.27	1.21
*Quick ratio	1.24	1.17
*Liabilities to assets	0.78	0.82
*Net profit margin (%)	0.01	/
*Return on total assets (%)	0.08	/
*Inventory /Turnover ×365	2 days	/
*Accounts receivable/Turnover ×365	28 days	/
*Turnover/Total assets	5.14	/
* Cost of goods sold/Turnover	0.98	/

PROFITABILITY: AVERAGE

l The turnover of SC appears average in 2012.

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

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

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

LIQUIDITY: AVERAGE

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

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

l The inventory of SC appears average in both years.

l The accounts receivable of SC appears average in both years.

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

l SC’s turnover is in a fairly good level in 2012, 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.

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.48
UK Pound	1	Rs.82.71
Euro	1	Rs.72.23

INFORMATION DETAILS

Report Prepared by :

PDT

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.