MIRA INFORM REPORT

Report Date :

05.04.2014

IDENTIFICATION DETAILS

Name :	DSM FIBRE INTERMEDIATES TRADING (SHANGHAI) CO., LTD.
Registered Office :	No. 476, Libing Road, Zhangjiang High-Tech Park, Pudong New District, Shanghai, 201203 PR
Country :	China
Date of Incorporation :	24.09.2003
Com. Reg. No.:	310115400134058
Legal Form :	Wholly foreign-owned enterprise
Line of Business :	Subject is engaged in selling fiber intermediates
No. of Employees :	15

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 :	Small Business
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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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 2013 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 consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (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. Debt overhang from its credit-fueled stimulus program in 2008-10, particularly among local governments, and soaring property prices challenge policy makers currently. Their efforts to cool a red-hot property market in 2011 appear to have curbed inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery in Europe and other key export markets have also retarded growth. 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 fixed investments and exports in the future. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources.

Source : CIA

Company name and address

DSM FIBRE INTERMEDIATES TRADING (SHANGHAI) CO., LTD.

NO. 476, LIBING ROAD, ZHANGJIANG HIGH-TECH PARK,

PUDONG NEW DISTRICT, SHANGHAI, 201203 PR CHINA

TEL: 86 (0) 21-61418188

FAX: 86 (0) 21-61418088

EXECUTIVE SUMMARY

INCORPORATION DATE : SEP. 24, 2003

REGISTRATION NO. : 310115400134058

REGISTERED LEGAL FORM : Wholly foreign-owned enterprise

CHIEF EXECUTIVE : MR. XU YUHUA (CHAIRMAN)

STAFF STRENGTH : 15

REGISTERED CAPITAL : USD 200,000

BUSINESS LINE : trading

TURNOVER : N/A

EQUITIES : N/A

PAYMENT : AVERAGE

MARKET CONDITION : average

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : fairly STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.2065 = 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

Note: the given tel. no. (86-25-84677759), fax no. (86-25-84677769) and the (RM 1510/1511 Block A, New Century Plaza, No. 288 East Zhong Shan Road, Nanjing 210002 P R) belong to SC’s Nanjing Office.

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 Sep. 24, 2003.

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 international trade, entrepot trade, bonded area and regional trade agents between enterprises; commercial simple processing and display of goods in bonded area; through domestic import and export management rights of enterprises and non-bonded enterprises engaged in trading business; consulting services in bonded area; leasing chemical reaction device (with permit if needed).

SC is mainly engaged in selling fiber intermediates.

Mr. Xu Yuhua is the legal representative and chairman of SC at present.

SC is known to have approx. 15 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in the high-tech park of Shanghai. SC’s management declined to release detailed information of the premise.

http://www.dsm.com The website belongs to DSM. The design is professional and the content is well organized. At present it is in English version.

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

Organization Code: 754763135

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

MAIN SHAREHOLDERS:

Name % of Shareholding

DSM Fiber Intermediates Co. (literal translation) 100

Note: the nationality of the shareholder is not available.

Legal representative and Chairman:

Mr. Xu Yuhua is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative and chairman.

Directors:

Zheng Jialiang

Jiang Weiming

SC is mainly engaged in selling fiber intermediates.

SC’s products mainly include: fiber intermediates.

SC sources its materials 100% from domestic market. SC sells 100% of its products in domestic market.

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

Note: SC’s management declined to release its major clients and suppliers.

Nanjing Office:

Tel: 86-25-84677759

Fax: 86-25-84677769

Add: Room 1510/1511, Block A, New Century Plaza, No. 288, Zhongshan East Road, Nanjing, Jiangsu Province

According to the website: http://www.dsm.com

DSM (China) Limited

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

Incorporation date: 1995-12-8

Registration no.: 310000400520520

Registered capital: USD 38,000,000

Legal rep.: Jiang Weiming

Legal form: Wholly foreign-owned enterprise

Web: http://www.dsmbeijing.com

E-mail: www.dsmbeijing@126.com

Tel: 010-87452984

DSM Vitamins Trading (Shanghai) Co., Ltd.

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

Incorporation date: 2004-6-28

Registration no.: 310115400153407

Registered capital: USD 200,000

Legal rep.: Eric Lodder

Legal form: Wholly foreign-owned enterprise

Jinling DSM Resins Co., Ltd.

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

Incorporation date: 1989-6-28

Registration no.: 320100400023368

Registered capital: CNY 205,700,000

Legal rep.: Gao Yue

Legal form: Chinese-foreign equity joint venture enterprise

Web: http://www.jdr.com.cn

Tel: 86 (0) 25 85493888

Fax: 86 (0) 25 85564848 / 85561724

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 declined to release its bank details.

SC’s management declined to release any financial information.

SC is considered small-sized in its line with a development history of 11 years.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.32
UK Pound	1	Rs.100.04
Euro	1	Rs.82.65

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	NNA

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.