MIRA INFORM REPORT

Report Date :

08.06.2013

IDENTIFICATION DETAILS

Name :	UNIFI TEXTILES (SUZHOU) CO., LTD.
Registered Office :	Room 1101, Gold River International Center, No. 88, Shishan Road, Suzhou New District, Suzhou, Jiangsu Province, 215011 Pr
Country :	China
Financials (as on) :	31.12.2012
Date of Incorporation :	05.12.2008
Com. Reg. No.:	320500400036126
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	selling of textiles products mainly include recycled poly, recycled nylon.
No. of Employees :	18

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 :	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

UNIFI TEXTILES (SUZHOU) CO., LTD.

ROOM 1101, GOLD RIVER INTERNATIONAL CENTER, NO. 88, SHISHAN ROAD, Suzhou New District, SUZHOU, JIANGSU PROVINCE, 215011 PR CHINA

TEL: 86 (0) 512-68187198-105 FAX: 86 (0) 512-68187199

EXECUTIVE SUMMARY

INCORPORATION DATE : DEC. 5, 2008

REGISTRATION NO. : 320500400036126

REGISTERED LEGAL FORM : Wholly foreign-owned enterprise

CHIEF EXECUTIVE : MR. ROY ROGER BERRIER JR (CHAIRMAN)

STAFF STRENGTH : 18

REGISTERED CAPITAL : USD 3,300,000

BUSINESS LINE : TRADING

TURNOVER : CNY 173,030,000 (AS OF DEC. 31, 2012)

EQUITIES : CNY 45,280,000 (AS OF DEC. 31, 2012)

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.126= 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 Dec. 5, 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 importing, exporting and wholesaling textiles; commission agent (excluding auction); providing related consulting and after-sale service (if the trade of the goods is governed by the quota or special rule, relevant regulations shall be followed).

SC is mainly engaged in selling textiles.

Mr. Roy Roger Berrier Jr is legal representative and chairman of SC at present.

SC is known to have approx. 18 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Suzhou. Our checks reveal that SC rents the total premise about 300 square meters.

http://unifi.com The website belongs to Unifi, Inc., and it includes the information on SC and its related companies. The design is professional and the content is well organized. At present it is in English version.

E-mail: utsc.marketing@unifi.com ; dwang@unifi.com

No significant events or changes were found during our checks with the local Administration for Industry and Commerce.

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

MAIN SHAREHOLDERS:

Name % of Shareholding

(Barbados) Unifi Textiles Holdings, Srl 100

Legal representative and Chairman:

Mr. Roy Roger Berrier Jr, #016527852, American, in his 40’s. He is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative and chairman.

Also working in Unifi, Inc. as president and COO.

General manager:

Mr. Edward Lewis Wickes, #70414457, Britisher. He is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as general manager.

Director:

Lai Shengxun #0029141205

Supervisor:

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

Charles Floyd Mc Coy #450945945

Note: According to SC’s staff, the given contact person “David Wang” is working in SC at present.

SC is mainly engaged in selling textiles.

SC’s products mainly include recycled poly, recycled nylon.

SC sources its materials 80% from domestic market and 20% from overseas market, mainly Taiwan. SC sells 50% in domestic market and 50% to overseas market, mainly Thailand and Ireland.

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 declined to release its major suppliers and clients.

According to http://unifi.com/

Unifi, Inc. Corporate Headquarters

7201 W. Friendly Ave., Greensboro, NC 27410, United States

Phone: 336-294-4410

Unifi, Inc. - Nylon Operations

805 Island Dr., PO Box 737, Madison, NC 27025, United States

Phone: 336-427-1890

Unifi, Inc - Dyed Operations

PO Box 1437, Reidsville, NC 27323, United States

Phone: 336-342-3361

Unifi, Inc - Polyester, Twisting & Beaming Operations

601 E. Main St., Yadkinville, NC 27055, United States

Phone: 336-679-8891

Unifi do Brasil Ltda

Av. Alfredo Egidio de Souza Aranha, 177

2 andar

Sao Paulo - SP, Sao Paulo/SP 04726-170

Phone: +55 11 2161 4800

Unifi Latin America S.A.

Transversal 5 No 6-67 Entrada 4 Zona Industrial Cazuca, Soacha Columbia

Phone: +571 7802466

Unifi Central America, Ltda. de C.V.

Edificio Block F, Zona Franca American Industrial Park Calle Panamericana, Km.36.5 Ciudad Arce, La Libertad. El Salvador

Phone: +503 2302-9700

Etc.

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.

Bank of China Suzhou Gaoxin District Sub-branch

AC#：526158194328

Relationship: Normal

Balance Sheet

Unit: CNY’000

	as of Dec. 31, 2011	as of Dec. 31, 2012
Cash & bank	9,580	11,590
Notes receivable	0	8,250
Inventory	23,380	23,440
Accounts receivable	5,820	5,000
Advances to suppliers	7,100	4,210
Prepaid expenses	530	670
Other receivables	1,760	1,080
Other current assets	0	0
	------------------	------------------
Current assets	48,170	54,240
Long-term investments	0	0
Fixed assets net value	220	160
Projects under construction	0	0
Long-term deferred expenses	510	570
Intangible assets	60	30
Other assets	0	0
	------------------	------------------
Total assets	48,960	55,000
	=============	=============
Short loans	0	0
Accounts payable	4,420	3,520
Advances from customers	2,930	3,480
Accrued payroll	30	0
Welfare payable	0	0
Taxes payable	1,380	890
Accrued expenses	1,430	1,420
Other accounts payable	540	410
Other current liabilities	0	0
	-----------------	-----------------
Current liabilities	10,730	9,720
Long term liabilities	0	0
	------------------	------------------
Total liabilities	10,730	9,720
Shareholders equities	38,230	45,280
	------------------	------------------
Total liabilities & equities	48,960	55,000
	=============	=============

Income Statement

Unit: CNY’000

	as of Dec. 31, 2011	as of Dec. 31, 2012
Turnover	172,860	173,030
Cost of goods sold	145,200	145,020
Taxes and additional of main operation	360	450
Income from other operation	10	0
Sales expense	4,140	5,430
Management expense	12,250	12,510
Finance expense	680	270
Non-operating income	70	30
Non-operating expense	0	0
Profit before tax	10,310	9,380
Less: profit tax	2,640	2,330
Net profit	7,670	7,050

Important Ratios

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

	As of Dec. 31, 2011	As of Dec. 31, 2012
*Current ratio	4.49	5.58
*Quick ratio	2.31	3.17
*Liabilities to assets	0.22	0.18
*Net profit margin (%)	4.44	4.07
*Return on total assets (%)	15.67	12.82
*Inventory /Turnover ×365	50 days	50 days
*Accounts receivable/Turnover ×365	13 days	11 days
*Turnover/Total assets	3.53	3.15
* Cost of goods sold/Turnover	0.84	0.84

PROFITABILITY: FAIRLY GOOD

l The turnover of SC appears fairly good in its line in both years.

l SC’s net profit margin is average in both years.

l SC’s return on total assets is good in both years.

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

LIQUIDITY: AVERAGE

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

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

l The inventory of SC appears fairly large 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, comparing with the size of its total assets in both years.

LEVERAGE: FAIRLY GOOD

l The debt ratio of SC is low.

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.56.74
UK Pound	1	Rs.88.53
Euro	1	Rs.75.20

INFORMATION DETAILS

Report Prepared by :

MNL

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.