MIRA INFORM REPORT

Report Date :

02.04.2014

IDENTIFICATION DETAILS

Name :	Changzhou pumelo Co., Ltd.
Registered Office :	R M. 1606, West Of Shenlong Business Square, No. 50, Huaide Middle Road, Zhonglou District, Changzhou, Jiangsu Province, 213000 Pr
Country :	China
Financials (as on) :	30.06.2013
Date of Incorporation :	25.04.2011
Com. Reg. No.:	320404000110750
Legal Form :	Limited Liabilities Company
Line of Business :	Subject is engaged in selling pharmaceutical products.
No. of Employees :	7

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 and address

Changzhou pumelo Co., Ltd.

rm. 1606, west of shenlong business square, no. 50, huaide middle road, zhonglou district, changzhou, jiangsu PROVINCE, 213000 PR CHINA

TEL: 86 (0) 519-81698808/ 13809072999 FAX: 86 (0) 519-81698098

EXECUTIVE SUMMARY

INCORPORATION DATE : apr. 25, 2011

REGISTRATION NO. : 320404000110750

REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY

CHIEF EXECUTIVE : MR. zhang qiang (CHAIRMAN)

STAFF STRENGTH : 7

REGISTERED CAPITAL : CNY 1,000,000

BUSINESS LINE : TRADING

TURNOVER : CNY 1,470,000 (JAN. 1 TO JUN. 30, 2013)

EQUITIES : CNY 910,000 (AS OF JUN. 30, 2013)

PAYMENT : AVERAGE

MARKET CONDITION : average

FINANCIAL CONDITION : fairly stable

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.12 = 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 co. at local Administration for industry & commerce (AIC - the official body of issuing and renewing business license) on Apr. 25, 2011.

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 certified business items: wholesaling hazard chemicals. Normal operating projects: import and export of various goods and technologies (excluding the goods forbidden by the government); selling non-hazardous chemicals, chemical raw materials and products, building materials, decoration materials, metal materials, hardware, mechanical equipment and parts, electronics, knitting textiles, garments, general merchandise, office supplies, common labor protection appliance, electrical materials, wooden paper packaging products, nursery stock and flowers and plants.

SC is mainly engaged in selling pharmaceutical products.

Mr. Zhang Qiang is legal representative, chairman and general manager of SC at present.

SC is known to have approx. 7 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Changzhou. Our checks reveal that SC rents the total premise about 150 square meters.

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

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

Chen Huiping 1

Huang Haobin 1

Wang Guowei 20

Zhang Qiang 78

Legal representative, Chairman and General manager:

Mr. Zhang Qiang, born in 1979, with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

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

Supervisor:

Chen Huiping

SC is mainly engaged in selling pharmaceutical products.

SC’s products mainly include: pharmaceutical intermediates.

SC sources its materials 90% from domestic market, and 10% 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 Check, T/T, L/C and Credit of 30-60 days.

Note: SC’s management declined to release its customer and supplier details.

SC is not known to have any subsidiary at present.

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.

China Merchants Bank Changzhou Zhonglou Sub-branch

AC#：723519902324510102

Relationship: Normal

Balance Sheet

Unit: CNY’000

	as of June 30, 2013
Cash & bank	33
Notes receivable	0
Inventory	614
Accounts receivable	343
Advances to suppliers	0
Other accounts receivable	0
Other current assets	114
	-----------------
Current assets	1104
Fixed assets net value	186
Project under construction	0
Long term investment	0
Long-term prepaid expenses	0
Project materials	0
Intangible and other assets	0
	------------------
Total assets	1290
	=============
Short loans	0
Notes payable	0
Accounts payable	286
Advances from clients	166
Accrued payroll	0
Welfare payable	0
Taxes payable	-125
Surcharge payable	0
Other accounts payable	4
Other current liabilities	0
Interest payable	49
	------------------
Current liabilities	380
Long-term liabilities	0
	------------------
Total liabilities	380
Equities	910
	------------------
Total liabilities & equities	1290
	=============

Income Statement

Unit: CNY’000

	Jan. 1 to Jun. 30, 2013
Turnover	1,470
Cost of goods sold	1,266
Taxes and additional of main operations	1
Sales expense	12
Management expense	321
Finance expense	5
Non-operating income	0
Non-operating expense	2
Profit before tax	3,077
Less: profit tax	0
Profits	6,154

Important Ratios

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

	as of June 30, 2013
*Current ratio	2.91
*Quick ratio	1.29
*Liabilities to assets	0.29
*Net profit margin (%)	-9.32
*Return on total assets (%)	-10.62
*Inventory /Turnover ×365	/
*Accounts receivable/Turnover ×365	/
*Turnover/Total assets	1.14
* Cost of goods sold/Turnover	0.86

PROFITABILITY: FAIR

The turnover of SC appears average in its line.

SC’s net profit margin is fair.

SC’s return on total assets is poor.

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

LIQUIDITY: AVERAGE

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

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

The inventory of SC appears fairly large in the 1^st half of 2013.

The accounts receivable of SC is maintained in an average level in the 1^st half of 2013.

SC has no short-term loan in the 1^st half of 2013.

SC’s turnover is in an average level, 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 small-sized in its line with fairly stable financial conditions. The large amount of inventory could be a threat to SC’s financial condition.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.10
UK Pound	1	Rs.99.85
Euro	1	Rs.82.58

INFORMATION DETAILS

Report Prepared by :

NNA

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