MIRA INFORM REPORT

Report Date :

31.12.2014

IDENTIFICATION DETAILS

Name :	ZHEJIANG RUIDA MACHINERY CO., LTD.
Registered Office :	Wei 11th Road, Feiyun New Area, Ruian, Zhejiang Province, 325207 Pr
Country :	China
Date of Incorporation :	08.12.1999
Com. Reg. No.:	330381000066943
Legal Form :	Limited Liabilities Company
Line of Business :	Subject is engaged in manufacturing and selling machinery
No. of Employee :	150

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 :	Unknown
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	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, 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 & address

ZHEJIANG RUIDA MACHINERY CO., LTD.

WEI 11^TH ROAD, FEIYUN NEW AREA, RUIAN,

ZHEJIANG PROVINCE, 325207 PR CHINA

TEL: 86 (0) 577-65021888/65571183 FAX: 86 (0) 577-65921217

EXECUTIVE SUMMARY

INCORPORATION DATE : DEC. 8, 1999

REGISTRATION NO. : 330381000066943

REGISTERED LEGAL FORM : LIMITED liabilities COMPANY

CHIEF EXECUTIVE : MR. CHEN ZHIPING (CHAIRMAN)

STAFF STRENGTH : 150

REGISTERED CAPITAL : CNY 18,000,000

BUSINESS LINE : MANUFACTURING & TRADING

TURNOVER : N/A

EQUITIES : N/A

PAYMENT : unknown

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.1952=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 Ren Min Bi

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 Dec. 8, 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 manufacturing and selling machinery; importing and exporting goods and technology.

SC is mainly engaged in manufacturing and selling machinery.

Mr. Chen Zhiping has been legal representative and chairman of SC since 2005.

SC is known to have approx. 150 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Ruian. The detailed premise information is unspecified.

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

Email: nanda@nan-da.com

Tax Registration No.: 330381720061549

Organization Code: 720061549

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
2004-2	Shareholders	Zhou Xuefu 36% Dai Daojin 32% Chen Zhiping 32%	Zhou Xuefu 36% Zhou Xueliang 32% Chen Zhiping 32%
2004-4	Registered capital	CNY 500,000	CNY 5,000,000
	Shareholding	Zhou Xuefu 36% Zhou Xueliang 32% Chen Zhiping 32%	Zhou Xuefu 32% Chen Zhiping 36% Zhou Xueliang 32%
	Company name	Ruian Nanda Paper Cup Machinery Co., Ltd.	Present one
2005-11	Legal representative	Zhou Xuefu	Chen Zhiping
	Shareholders and shareholding	Zhou Xuefu 32% Chen Zhiping 36% Zhou Xueliang 32%	Chen Zhiping 68% Huang Zhumei 32%
2009-9	Registered capital	CNY 5,000,000	CNY 18,000,000
	Registration no.	3303811006609	Present one

Certificates:

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

MAIN SHAREHOLDERS:

Name % of Shareholding

Chen Zhiping 68

Huang Zhumei 32

l Legal Representative and Chairman:

Mr. Chen Zhiping, ID# 33032519650114XXXX, born in 1965, with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

From 2005 to present Working in SC as legal representative and chairman

l Supervisor:

Huang Zhumei ID# 33032519630818XXXX

SC is mainly engaged in manufacturing and selling machinery.

SC’s products mainly include:

Paper Cup/Plate Machinery

·Cup Paper Printing Machine

·Cup Paper Die Cutter

·Paper Cup Forming Machinery

·Paper Bowl Forming Machine

·Popcorn Cup Machine

·Double Wall Cup Machine

·Cup Lid Forming Machine

·Paper Plate Forming Machine

Label Forming Machinery

·Flexo Printing Machinery

·Label Die Cutting Machinery

·Label Slitting Machine

·Printing Plate Maker

SC sources its materials 90% from domestic market, and 10% from the overseas market, mainly European countries. SC sells 40% of its products in domestic market, and 60% to the overseas market, mainly American and European countries.

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

Note: SC refused to release its major suppliers and customers.

Trademark & Patents

Registration No.	8484424	8484425	9774634
Registration Date	2011-7-28	2011-10-21	2012-9-21
Trademark Design

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 refused to release any information of its suppliers and the trade reference was not available.

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 Ruian City Feiyun Office

AC#：1203281609045821666

Relationship: Normal.

SC’s management declined to release any financial information.

SC is considered medium-sized in its line with a development history of 15 years. Due to lack of financial status, we are unable to recommend accurate credit limit for SC. Taking into consideration of SC’s development history and operation size we would rate SC as an above average credit risk company.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.74
UK Pound	1	Rs.98.87
Euro	1	Rs.77.32

INFORMATION DETAILS

Analysis Done by :	KRN
Report Prepared by :	DPT

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.