MIRA INFORM REPORT

Report Date :

24.12.2014

IDENTIFICATION DETAILS

Name :	CHINA SDIC INTERNATIONAL TRADE CO., LTD.

Formerly Known as :	China Textile Resources Co., Ltd.

Registered Office :	No. 19 Huixin West Street, Chaoyang District, Beijing 100029 PR

Country :	China

Financials (as on) :	31.07.2013

Date of Incorporation :	27.09.1984

Com. Reg. No.:	100000000002366

Legal Form :	One-Person Limited Liability Company

Line of Business :	engaged in the wholesaling prepackaged food and dairy products; purchasing grains. International trade; selling, storage and transporting feed, primary agricultural products, cotton, wool, hemp, silk, synthetic fiber & chemical fiber, textiles, garments, daily necessities, petrochemicals (excluding product oil), steel materials, nonferrous metal, building materials, wood, chemical materials (excluding poisonous chemicals), machinery equipment and components, hardware, household appliances, electronic products, vehicle, motorcycle and parts; private housing leasing and property management

No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

China

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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, growth of the private sector, development of stock markets and a modern banking system, 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 considered important to "economic security," explicitly looking to foster globally competitive industries. After keeping its currency tightly linked to the US dollar for years, in July 2005 China 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 and expanded the daily trading band within which the RMB is permitted to fluctuate. 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. Several factors are converging to slow China's growth, including debt overhang from its credit-fueled stimulus program, industrial overcapacity, inefficient allocation of capital by state-owned banks, and the slow recovery of China's trading partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated at the Communist Party's "Third Plenum" meeting in November 2013, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent in the future on fixed investments, exports, and heavy industry. 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

CHINA SDIC INTERNATIONAL TRADE CO., LTD.

NO. 19 HUIXIN WEST STREET, CHAOYANG DISTRICT, BEIJING 100029 PR CHINA

TEL: 86 (0) 10-52021800/52021870

FAX: 86 (0) 10-52021871/52021872

EXECUTIVE SUMMARY

Date of Registration : SEPTEMBER 27, 1984

REGISTRATION NO. : 100000000002366

LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY

CHIEF EXECUTIVE : ZHANG SONGLIN (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 1,200,000,000

staff : 200

BUSINESS CATEGORY : TRADE & INVESTMENT & MANAGEMENT

REVENUE : CNY 2,831,652,000 (JAN. 1, 2013 TO JUL. 31, 2013)

EQUITIES : CNY 1,242,917,000 (AS OF JUL. 31, 2013)

WEBSITE : www.sdictrade.com

E-MAIL : ctrc@ctrc.com.cn

PAYMENT : No Complaints

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : fairly good

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : fairly good

EXCHANGE RATE : CNY 6.25 = USD 1

Adopted abbreviations (as follows)

SC - Subject Company (the company inquired by you)

N/A – Not available

CNY – China Yuan Ren Min Bi

OPERATIONAL TREND & GENERAL REPUTATION

This section aims at indicating the relative positions of SC in respect of its operational trend & general reputation

Operational Trend:- General Reputation:-

Upward Excellent

Steady Good

Fairly Steady Fairly Good

Ordinary Average

Fair Fair

Stagnant Detrimental

Downward Not known

Not known Not yet be determined

LEGAL STATUS & HISTORY

SC was established as a state-owned enterprise of PRC on September 27, 1984. However, SC changed to present legal form, and was registered as one-person limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 100000000002366 on December 23, 2008.

SC’s Organization Code Certificate No.: 10000236-1

SC’s registered capital: CNY 1,200,000,000

SC’s paid-in capital: CNY 1,200,000,000

Registration Change Record:-

Date	Change of Contents	Before the change	After the change
1998-11-4	Legal Representative	Shen Kejian	Chang Junchuan
2000-9-29	Registered Capital	CNY 26,100,000	CNY 244,090,000
2008-12-23	Registered Capital	CNY 244,090,000	CNY 500,000,000
	Legal Form	State-owned enterprise	One-person Limited Liability Company
	Company Name	China Textile Resources Corp.	China Textile Resources Co., Ltd.
2009	Company Name	China Textile Resources Co., Ltd.	China SDIC International Trade Co., Ltd.
--	Registration No.	1000001000236	100000000002366
--	Registered Capital	CNY 500,000,000	cny 1,000,000,000
2013	Legal Representative	Chang Junchuan	Zhang Songlin
2014	Registered Capital	cny 1,000,000,000	cny 1,200,000,000

Current Co search indicates SC’s shareholders & chief executives are as follows:-

Name of Shareholder (s)

% of Shareholding

State Development & Investment Corp.

100

SC’s Chief Executives:-

Position	Name
Legal Representative and Chairman	Zhang Songlin
General Manager	Zhou Huayu
Director	Feng Sujing
	He Baoyin
	Lin Naiji
	Meng Shuhao
	Wang Wenjun
	Zhang Liang
Supervisor	Qi Weiren
	Zhang An
	Zhang Dingyuan

RECENT DEVELOPMENT

Honors:

In 1993, SC was named one of the “Top 100 State-owned Logistics Companies in China”

In 1994, t SC was named one of the “Top 500 Logistics Companies in China”.

Since 1994, SC has been named “Outstanding Entity under the Central Government of China” and “Outstanding Entity of Beijing” for many consecutive times.

In 1995, SC was named one of the “Top 100 State-owned Logistics Companies in China” in terms of comprehensive capacity.

In 1999, SC was named one of the “Top 500 Import/Export Companies in China” and “National Class-A Companies”.

In 2000, SC was named one of the “Top 500 Companies in China in Terms of Import/Export Volume”.

In 2005, SC was named one of the “Top 500 Service Providers in China”.

In 2010, SC was awarded two “Grade-II National Awards for Science and Technology Progress” for two projects, one by its subsidiary Sinotex Investment & Development Co., Ltd, and the other by China Tex Mechanical & Electrical Engineering Ltd.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

State Development & Investment Corp. 100

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

State Development & Investment Corporation (SDIC) is the largest state-owned investment holding company in China. Since its establishment, SDIC continuously improves its development strategy, optimizes its assets composition, and has built its unique tri-pillared business framework that integrates industrial investment, financial services and state-owned assets management. SDIC’s industrial investment mainly goes to power generation, coal mining, ports and shipping, chemical fertilizer production and other infrastructure or resource-oriented fields as well as high-tech projects.

Date of Registration: April 14, 1995

Registration No.: 100000000017644

Legal Form: State-owned Enterprise

Chief Executive: Wang Huisheng

Registered Capital: CNY 19,470,510,000

Address: International Investment Plaza,6-6 Fuchengmen North Street, Xicheng District, Beijing

Tel: +86-10-8800 6880

Fax: +86-10-6657 9035

Website: www.sdic.com.cn

MANAGEMENT

Zhang Songlin, Legal Representative and Chairman

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

Gender: F

Age: 49

Qualification: University

Working experience (s):

From 2013 to present, working in SC as legal representative and chairman

Also working in Sinotex Investment & Development Co., Ltd. as legal representative

Zhou Huayu, General Manager

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

Gender: M

Qualification: University

Working experience (s):

At present, working in SC as general manager

Director

-----------

Feng Sujing

He Baoyin

Lin Naiji

Meng Shuhao

Wang Wenjun

Zhang Liang

Supervisor

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

Qi Weiren

Zhang An

Zhang Dingyuan

BUSINESS OPERATION

SC’s registered business scope includes selling wholesaling prepackaged food and dairy products; purchasing grains. International trade; selling, storage and transporting feed, primary agricultural products, cotton, wool, hemp, silk, synthetic fiber & chemical fiber, textiles, garments, daily necessities, petrochemicals (excluding product oil), steel materials, nonferrous metal, building materials, wood, chemical materials (excluding poisonous chemicals), machinery equipment and components, hardware, household appliances, electronic products, vehicle, motorcycle and parts; private housing leasing and property management; technology transfer, communication, consultation and services; investment and assets management; culture exchange..

SC is mainly engaged in international trade, investment & management of its subsidiaries.

SC’s products mainly include: wool, terylene and acrylic, textile raw materials, cotton, agricultural products

SC is one of the largest wool importers in China at present.

Imported Agricultural Products:

Rapeseed meal (mainly from India, Pakistan, Mexico and Canada)

Peanut meal (mainly from India, Pakistan, Senegal and other African regions)

Soybean meal (mainly from India, the United States, Brazil and Argentina)

Meat and bone meal (mainly from Uruguay, Australia and New Zealand)

Fish meal (mainly from Peru and Chili)

Flax seed (mainly from India, Ethiopia and Canada)

Peanut oil (mainly from Senegal)

Sunflower oil (mainly from the Ukraine and Argentina)

Olive oil (mainly from Turkey)

Castor seeds (mainly from Ethiopia)

SC sources its materials 70% from domestic market, and 30% from overseas market, mainly Australia, New Zealand, EU, Africa and etc. SC sells 50% of its products in domestic market, and 50% to overseas market, mainly EU, America, Southeast Asia and etc.

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.

*Major Customers:

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

Technologia En Cubrimiento S.A

Peter Cremer Canada Ltd.

*Major Supplier:

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

Northwest Grains International, LLC.

Staff & Office:

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

SC is known to have approx. 200 staff at present.

SC owns an area as its operating office, but the detailed information is unknown.

RELATED COMPANY

SC is known to have following subsidiaries at present,

China Tex Mechanical & Electrical Engineering Research Institute

China Sdic International Trade Shanghai Company

China Sdic International Trade Nanjing Co., Ltd.

China Sdic International Trade Guangzhou Company

China Sdic International Trade Qingdao Company

Beijing Sinotex Raw Materials Co., Ltd.

Sinotex Investment & Development Co., Ltd.

China Textile Resources Shannxi Company

Chian SDIC International Trade (Tianjin) Co., Ltd.

Chian SDIC International Trade Central African Co., Ltd.

PAYMENT

Overall payment appraisal: ( ) Excellent ( ) Good (X) No Complaints ( ) Fair ( ) Poor ( ) Not yet be 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.

BANKING

Basic Bank:

Industrial & Commercial Bank of China Hepingli Office

AC#: 0200004209002600468

China CITIC Bank Olympic Village Sub-branch

AC#: 7111910182300000513

China Merchants Bank Asian Games Village Sub-branch

AC#: 0782853210001

FINANCIALS

Financial Summary

Unit: CNY’000	As of Dec. 31, 2011	As of Dec. 31, 2012	As of Jul. 31, 2013
Long term investment	377,063	464,463	--
Total assets	2,818,630	3,438,983	3,548,186
	-------------	-------------	-------------
Long term liabilities	7,812	1,676	--
Total liabilities	1,755,892	2,258,438	2,305,269
Equities	1,062,738	1,180,545	1,242,917
	-------------	-------------	-------------
Unit: CNY’000	As of Dec. 31, 2011	As of Dec. 31, 2012	Jan. 1, 2013 to Jul. 31, 2013
Revenue	5,932,444	6,025,566	2,831,652
Profit before tax	111,925	174,817	--
Less: profit tax	25,894	46,815	--
Profits	86,031	128,002	62,372

Important Ratios

	As of Dec. 31, 2011	As of Dec. 31, 2012	As of Jul. 31, 2013
*Liabilities to assets	0.62	0.66	0.65
*Net profit margin (%)	1.45	2.12	2.20
*Return on total assets (%)	3.05	3.72	1.76
* Revenue/Total assets	2.10	1.75	0.80

FINANCIAL COMMENTS

PROFITABILITY: AVERAGE

· The revenue of SC appears good in its line.

· SC’s net profit margin is average.

· SC’s return on total assets is average.

LIQUIDITY: AVERAGE

· SC’s revenue is in an average level, comparing with the size of its total assets.

LEVERAGE: FAIRLY GOOD

· The debt ratio of SC is average.

· The risk for SC to go bankrupt is low.

Overall financial condition of the SC: Fairly Good.

CONCLUSIONS

SC is considered large-sized in its line with fairly good financial conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.45
UK Pound	1	Rs.98.88
Euro	1	Rs.77.62

INFORMATION DETAILS

Analysis Done by :	KAR

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%)

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.