MIRA INFORM REPORT

Report Date :

14.06.2014

IDENTIFICATION DETAILS

Name :	TAIAN TAMEC IMPORT & EXPORT CO., LTD.

Registered Office :	No. 1 Juling Road, High & New Technology Development Zone Taian City, Shandong Province 271000 PR

Country :	China

Financials (as on) :	31.12.2013

Date of Incorporation :	24.12.2003

Com. Reg. No.:	370900228083462

Legal Form :	Limited Liabilities Company

Line of Business :	Subject includes selling and repairing diesel engines, construction machines, petroleum machines, tractors, generating sets and hydraulic machines; importing and exporting commodities and technologies

No. of Employees	15

RATING & COMMENTS

MIRA’s Rating :

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, 2014

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

China

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate 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

TAIAN TAMEC IMPORT & EXPORT CO., LTD.

NO. 1 JULING ROAD, HIGH & NEW TECHNOLOGY DEVELOPMENT ZONE

TAIAN CITY, SHANDONG PROVINCE 271000 PR CHINA

TEL: 86 (0) 538-8258577

FAX: 86 (0) 538-8258578

***Note: SC’s current address should be the heading one, while the (8 Floor Longtan Hotel, 14, Longtan Road,Taian City, Shandong Province, China) was the former one.

EXECUTIVE SUMMARY

Date of Registration : DECEMBER 24, 2003

REGISTRATION NO. : 370900228083462

LEGAL FORM : Limited liabilities company

CHIEF EXECUTIVE : WANG CHUANWU (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 2,180,000

staff : 15

BUSINESS CATEGORY : TRADING

Revenue : CNY 57,119,000 (AS OF DEC. 31, 2013)

EQUITIES : CNY 2,633,000 (AS OF DEC. 31, 2013)

WEBSITE : N/A

E-MAIL : N/A

PAYMENT : AVERAGE

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : FAIRly stable

OPERATIONAL TREND : ORDINARY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.21 = 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

Not yet be determined

LEGAL STATUS & HISTORY

SC was established as a limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 370900228083462 on December 24, 2003.

SC’s Organization Code Certificate No.: 75829948-0

SC’s Tax No.: 370902758299480

SC’s registered capital: CNY 2,180,000

SC’s paid-in capital: CNY 2,180,000

Registration Change Record:-

Date

Change of Contents

Before the change

After the change

2010

Registration No.

3709002808346

370900228083462

2010-10-14

Shareholder (s) (% of Shareholding)

Shandong Juling Group Co., Ltd. 50.46%

14 individuals 14 49.54%

Shandong Juling Group Co., Ltd. 50.46%

Zhang Xingjian

21.32%

Xu Guanghui

11.65%

Zhao Huanzhong

2.45%

An Deyong

4.27%

Yin Yanwei

5.05%

Wang Qiang

0.44%

Zhang Junying

1.05%

Zhao Ping

0.69%

Rao Yong

2.29%

Hua Rui

0.33%

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

Name of Shareholder (s)	% of Shareholding
Shandong Juling Group Co., Ltd.	50.46
Zhang Xingjian	21.32
Xu Guanghui	11.65
Zhao Huanzhong	2.45
An Deyong	4.27
Yin Yanwei	5.05
Wang Qiang	0.44
Zhang Junying	1.05
Zhao Ping	0.69
Rao Yong	2.29
Hua Rui	0.33

SC’s Chief Executives:-

Position	Name
Legal Representative and Chairman	Wang Chuanwu
General Manager	Zhang Xingjian
Director	Yin Yanwei
	Zhao Huanzhong
	Xu Guanghui
	Yang Dongsheng
	An Deyong
Supervisor	Tian Zhaoguo
	Zong Chenglin
	Li Yujin

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Shandong Juling Group Co., Ltd. 50.46

Zhang Xingjian 21.32

Xu Guanghui 11.65

Zhao Huanzhong 2.45

An Deyong 4.27

Yin Yanwei 5.05

Wang Qiang 0.44

Zhang Junying 1.05

Zhao Ping 0.69

Rao Yong 2.29

Hua Rui 0.33

Shandong Juling Group Co., Ltd.

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

Shandong Juling Group is a provincial level state-owned comprehensive corporation with the former Taian Diesel Engine Factory as the main sponsor. It has ten subsidiary companies, including Taian Tamec Imp. & Exp. Co., Ltd., which is approved by Ministry of Foreign Trade and Economic Cooperation P.R.C.

Add: Juling Industrial Park, Taian City, Shandong Province.

Tel: 86-0538-6180655

Fax: 86-0538-8258578

Website: www.newjuling.com

Registration No.: 370900228092578

Date of Registration: August 25, 2006

Legal Form: Limited Liabilities Company

Registered Capital: CNY 20,000,000

Legal Representative: Wang Chuanwu

MANAGEMENT

Wang Chuanwu Legal Representative and Chairman

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

Gender: M

Qualification: University

Working experience (s):

At present, working in SC as legal representative and chairman

Also working in Shandong Juling Group Co., Ltd. as legal representative

Zhang Xingjian, General Manager

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

Gender: M

Qualification: University

Working experience (s):

At present, working in SC as general manager

Director

-----------

Yin Yanwei

Zhao Huanzhong

Xu Guanghui

Yang Dongsheng

An Deyong

Supervisor

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

Tian Zhaoguo

Zong Chenglin

Li Yujin

BUSINESS OPERATION

SC’s registered business scope includes selling and repairing diesel engines, construction machines, petroleum machines, tractors, generating sets and hydraulic machines; importing and exporting commodities and technologies.(

SC is mainly engaged in selling construction machines.

SC’s products mainly include: Block machines, Bulldozers, Dump trucks, Excavators, Food processing machinery, Road rollers, Skid steers and Wheel loaders.

SC sources its merchandises 10% from the overseas market and 90% from domestic market, mainly Shandong. SC sells 10% of its merchandises in domestic market, and 90% 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.

*Major Clients:

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

Pakistan NOOR

Pakistan HA

*Major Supplier:

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

Shandong Taichai Machine Co., Ltd.

Staff & Office:

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

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

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

RELATED COMPANY

SC is not known to have any subsidiary at present.

PAYMENT

Overall payment appraisal:

( ) Excellent ( ) Good (X) Average ( ) 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 refused 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:

Bank of China Taian Branch

AC#: 211702527098

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2010	As of Dec. 31, 2011	As of Dec. 31, 2012	As of Dec. 31, 2013
Cash	2,261	4,599	6,046	5,429
Notes receivable	0	0	0	0
Accounts receivable	2,879	724	775	1,235
Advances to suppliers	3,230	680	1,482	588
Other receivable	386	172	30	137
Subsidy receivable	115	512	449	697
Inventory	0	0	13	13
Non-current assets within one year	0	0	0	0
Other current assets	0	0	0	0
	------------------	------------------	------------------	------------------
Current assets	8,871	6,687	8,795	8,099
Fixed assets	24	18	11	12
Construction in progress	0	0	0	0
Intangible assets	0	0	0	0
Long-term investment	0	0	0	0
Deferred income tax assets	0	0	0	0
Other non-current assets	0	0	0	0
	------------------	------------------	------------------	------------------
Total assets	8,895	6,705	8,806	8,111
	=============	=============	=============	=============
Short-term loans	0	0	0	0
Notes payable	0	0	0	0
Accounts payable	3,813	1,500	1,686	2,194
Wages payable	0	0	0	0
Taxes payable	7	3	0	-60
Advances from clients	0	0	0	0
Other payable	2,595	2,664	4,531	3,344
Other current liabilities	1	1	1	0
	------------------	------------------	------------------	------------------
Current liabilities	6,416	4,168	6,218	5,478
Non-current liabilities	0	0	0	0
	------------------	------------------	------------------	------------------
Total liabilities	6,416	4,168	6,218	5,478
Equities	2,479	2,537	2,588	2,633
	------------------	------------------	------------------	------------------
Total liabilities & equities	8,895	6,705	8,806	8,111
	=============	=============	=============	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2010	As of Dec. 31, 2011	As of Dec. 31, 2012	As of Dec. 31, 2013
Revenue	65,580	62,697	64,497	57,119
Cost of sales	61,970	59,462	61,280	54,041
Sales expense	2,640	2,590	2,606	2,418
Management expense	300	84	90	118
Finance expense	600	473	432	471
Profit before tax	70	86	88	66
Less: profit tax	20	22	22	16
Profits	50	64	66	50

Important Ratios

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

	As of Dec. 31, 2010	As of Dec. 31, 2011	As of Dec. 31, 2012	As of Dec. 31, 2013
*Current ratio	1.38	1.60	1.41	1.48
*Quick ratio	1.38	1.60	1.41	1.48
*Liabilities to assets	0.72	0.62	0.71	0.68
*Net profit margin (%)	0.08	0.10	0.10	0.09
*Return on total assets (%)	0.56	0.95	0.75	0.62
*Inventory / Revenue ×365	--	--	1 day	1 day
*Accounts receivable / Revenue ×365	17 days	5 days	5 days	8 days
*Revenue / Total assets	7.37	9.35	7.32	7.04
*Cost of sales / Revenue	0.94	0.95	0.95	0.95

FINANCIAL COMMENTS

PROFITABILITY: AVERAGE

The revenue of SC appears average, and it decreased slightly in 2013.

SC’s net profit margin is average in four years.

SC’s return on total assets is average in four years.

SC’s cost of sales is fairly high, comparing with its revenue.

LIQUIDITY: AVERAGE

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

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

The inventory of SC appears small in 2012 and 2013.

The accounts receivable of SC appears average.

SC has no short-term loans in four years.

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

LEVERAGE: AVERAGE

The debt ratio of SC is average in four years.

The risk for SC to go bankrupt is above average.

Overall financial condition of the SC: Fairly Stable.

CONCLUSIONS

SC is considered small-sized in its line with fairly stable financial conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.48
UK Pound	1	Rs.100.93
Euro	1	Rs.80.71

INFORMATION DETAILS

Analysis Done by :	SUM

Report Prepared by :	NIS

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.