MIRA INFORM REPORT

Report Date :

10.06.2013

IDENTIFICATION DETAILS

Name :	UNIKBIO BIOTECH (GUANGZHOU) LTD.
Registered Office :	No. 7, Nanyunwu Road, Science City, High-Tech Industrial Development Zone, Guangzhou, Guangdong Province, 510663 Pr
Country :	China
Financials (as on) :	31.12.2012
Date of Incorporation :	13.04.1999
Com. Reg. No.:	440101000022466
Legal Form :	Limited Liabilities Company
Line of Business :	Manufacturing and selling food additives.
No. of Employees :	55

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 :	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 – 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

Unikbio Biotech (Guangzhou) Ltd.

No. 7, nanYunwu Road, science city, HIGH-TECH INDUSTRIAL DEVELOPMENT ZONE, guangzhou, GUANGDONG PROVINCE, 510663 PR CHINA

TEL: 86 (0) 20-32016813 FAX: 86 (0) 20-32016817

EXECUTIVE SUMMARY

INCORPORATION DATE : apr. 13, 1999

REGISTRATION NO. : 440101000022466

REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY

CHIEF EXECUTIVE : Mr. chen duancheng (CHAIRMAN)

STAFF STRENGTH : 55

REGISTERED CAPITAL : CNY 8,000,000

BUSINESS LINE : MANUFACTURING

TURNOVER : CNY 13,130,000 (AS OF DEC. 31, 2012)

EQUITIES : CNY 3,410,000 (AS OF DEC. 31, 2012)

PAYMENT : AVERAGE

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : FAIR

OPERATIONAL TREND : FAIR

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.13 = 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 Limited Liabilities Company at local Administration for industry & commerce (AIC - the official body of issuing and renewing business license) on Apr. 13, 1999.

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 wholesale and retail trade; technology researching, developing and consulting about biotechnology and related products; manufacturing and selling food additives; manufacturing industrial enzyme preparation; import and export goods and technology; house leasing.

SC is mainly engaged in manufacturing and selling food additives.

Mr. Chen Duancheng is the legal representative, chairman and general manager of SC at present.

SC is known to have approx. 55 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 Guangzhou. The detailed information of the premise is unspecified.

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

Email: info@unikbio.com

Changes of its registered information:

Date of change	Item	Before the change	After the change
2005-12-14	Registered capital	CNY 500,000	CNY 1,000,000
2008-9-16	Registered capital	CNY 1,000,000	CNY 8,000,000
2009-9-11	Shareholders	Li Weiya 40% Chen Duancheng 60%	Li Weiya 30% Chen Duancheng 60% Jiao Xinmin 10%
2010-8-26	Legal representative	Chen Duancheng	Chen Duanming
Unspecified	Registration No.	4401012042670	Present one
	Legal representative	Chen Duanming	Present one
	Shareholders	Li Weiya 30% Chen Duancheng 60% Jiao Xinmin 10%	Present ones

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

MAIN SHAREHOLDERS:

Name % of Shareholding

Li Weiya 30

Chen Duancheng 60

Guangzhou Suiming Trade Co., Ltd. 10

Legal Representative, Chairman and General Manager:

Mr. Chen Duancheng is currently responsible for the overall management of SC.

Working Experience(s):

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

Also working in Guangzhou Yulibao Biological Technology Co., Ltd. (in Chinese Pinyin) as legal representative.

SC is mainly engaged in manufacturing and selling food additives.

SC’s products mainly include enzyme preparations and blend enzymes, etc.

SC sources its materials 90% from domestic market, and 10% from overseas market. SC sells 70% of its products in domestic market, and 30% 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 refused to release its main customers and suppliers.

SC is known to invest in the follow company:

Guangzhou Yulibao Biological Technology Co., Ltd. (in Chinese Pinyin)

Registered no.: 440101400111684

Establishment date: 2004-9-6

Legal representative: Chen Duancheng

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.

Industrial and Commercial Bank of China Guangzhou No. 2 Sub-branch

AC#：3602000529200110166

Relationship: Normal

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2012
Cash & bank	1,470
Inventory	7,080
Accounts receivable	4,330
Other receivables	180
Other current assets	120
	------------------
Current assets	13,180
Fixed assets net value	10,620
Long term investment	200
Projects under construction	0
Intangible and other assets	0
	------------------
Total assets	24,000
	===========
Short loan	10,000
Accounts payable	2,150
Advances from clients	0
Other Accounts payable	5,600
Other current liabilities	2,340
	------------------
Current liabilities	20,090
Long term liabilities	500
	------------------
Total liabilities	20,590
Equities	3,410
	------------------
Total liabilities & equities	24,000
	===========

Income Statement

Unit: CNY’000

	As of Dec. 31, 2012
Turnover	13,130
Cost of goods sold	8,280
Sales expense	/
Management expense	/
Finance expense	/
Profit before tax	-3,280
Less: profit tax	0
Profits	-3,280

Note: SC’s accountant refused to release the detailed income statement.

Important Ratios

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

	As of Dec. 31, 2012
*Current ratio	0.66
*Quick ratio	0.30
*Liabilities to assets	0.86
*Net profit margin (%)	-24.98
*Return on total assets (%)	-13.67
*Inventory /Turnover ×365	197 days
*Accounts receivable/Turnover ×365	121 days
*Turnover/Total assets	0.55
* Cost of goods sold/Turnover	0.63

PROFITABILITY: FAIR

l The turnover of SC appears average.

l SC’s net profit margin is poor.

l SC’s return on total assets is fair.

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

LIQUIDITY: FAIR

l The current ratio of SC is maintained in a fair level.

l SC’s quick ratio is maintained in a poor level.

l The inventory of SC appears fairly large.

l The accounts receivable of SC appears average.

l The short-term loan of SC appears large.

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

LEVERAGE: FAIR

l The debt ratio of SC is high.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fair.

SC is considered small-sized in its line with fair financial conditions. The large amount of inventory and short loans could be a threat to SC’s financial condition.

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 :

PRL

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.