MIRA INFORM REPORT

Report Date :

18.06.2014

IDENTIFICATION DETAILS

Name :	ARCHROMA (TIANJIN) LTD.
Registered Office :	No. 83, Xianfeng East Road, Dongli District, Tianjin, 300300 PR
Country :	China
Date of Incorporation :	23.03.1995
Com. Reg. No.:	120000400041117
Legal Form :	Chinese-Foreign Equity Joint Venture Enterprise
Line of Business :	Subject is engaged in the manufacturing and selling dyes, dye intermediates, pigments, pigment intermediates, catalysts, adhesives, coating, chemical reagent and other chemical products; providing after-sales services; relative technology consulting; storage; leasing self-owned houses.
No. of Employees :	400

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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
China	A2	A2

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

ARCHROMA (TIANJIN) LTD.

NO. 83, XIANFENG EAST ROAD, DONGLI DISTRICT, TIANJIN, 300300 PR CHINA

TEL: 86 (0) 22-24994288-333

FAX: 86 (0) 22-24990146

EXECUTIVE SUMMARY

INCORPORATION DATE : MAR. 23, 1995

REGISTRATION NO. : 120000400041117

REGISTERED LEGAL FORM : Chinese-foreign equity joint venture enterprise

CHIEF EXECUTIVE : MR. yang shujun (CHAIRMAN)

STAFF STRENGTH : 400

REGISTERED CAPITAL : CNY 280,620,000

BUSINESS LINE : MANUFACTURING AND TRADING

TURNOVER : N/A

EQUITIES : N/A

PAYMENT : AVERAGE

MARKET CONDITION : competitive

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.2345 = 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 Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Mar. 23, 1995.

Company Status: Chinese-foreign equity joint venture enterprise

This form of business in PR China is defined as a legal person. It is a limited co. jointly invested by one or more foreign companies and one or more PR China controlled companies within the territories of PR China according to a certain proportion of capital investment. The investing parties exercise business management, share profits and bear all risks and liabilities of the co. together. The equity joint venture law requires that foreign party contribute not less than 25% of the registered capital, with no maximum. The investing parties are free to agree on method of profit distribution and liabilities bearing according to the proportion of capital investment. Each investing parties contributes funds, tangible assets, technology & etc. The board of directors excises the high authority. The joint venture usually has a limited duration of 10 to 50 years. Enterprise with large investment, long construction periods, low investment returns, introducing of advanced technology & advanced technology products that have good competition position in international market may extend beyond the 50 years limit.

SC’s registered business scope includes manufacturing and selling dyes, dye intermediates, pigments, pigment intermediates, catalysts, adhesives, coating, chemical reagent and other chemical products; providing after-sales services; relative technology consulting; storage; leasing self-owned houses.

SC is mainly engaged in manufacturing and selling dyes.

Mr. Yang Shujun has been the legal representative and chairman of SC since May of 2014.

SC is known to have approx. 400 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 Tianjin. Our checks reveal that SC owns the total premise, but the gross area of the premise is unspecific.

http://archroma.com The website belongs to one of Archroma. The design is professional and the content is well organized. At present the web is only in English version.

Changes of its registered information:

Date of change	Item	Before the change	After the change
Unknown	Legal Representative	Gary James Fielding	Peter Lindner
2014-5		Peter Lindner	Present one
	Company name	Clariant (Tianjin) Co., Ltd.	Present one
	Shareholders and shareholding	Clariant International AG (Switzerland) 94.79% Tianjin No. 5 Dyestuff Chemical Plant 5.21%	Present ones

Organization code: 600587773

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

MAIN SHAREHOLDERS:

Name Investment amount % of Shareholding

Archroma Textiles SARL (Luxembourg) CNY 266,006,000 94.79

Tianjin Bohai Fine Chemical Co., Ltd CNY 14,614,000 5.21

Tianjin Bohaid Fine Chemical Co., Ltd.

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

Registration no.: 120110000087333

Registered capital: CNY 500,000,000

Legal rep.: Mi Yong

Legal form: One-person Limited Liability Company

Legal representative and chairman:

Mr. Yang Shujun is currently responsible for the overall management of SC.

Working Experience(s):

From May of 2014 to present Working in SC as legal representative and chairman.

Vice Chairman:

Su Yongli and Mr. Thomas Winkler are currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as vice chairman.

Mr. Thomas Winkler was appointed as President Textile Specialties at Archroma after Clariant’s textile business transferred to Archroma in September 2013.

Directors:

Roland Waibel

Qiang Jilai

Alan Cunningham

Guilherme Goulart

Supervisors:

Hans Lourens

Song Jingzhong

SC is mainly engaged in manufacturing and selling dyes.

SC’s products mainly include: disperse dyes, acid dyes, direct dyes

SC sources its materials 70% from domestic market and 30% from the overseas market. SC sells 30% in domestic market and sells 70% 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 T/T, L/C and Credit of 30-60 days.

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

According to the website: http://archroma.com

Archroma Management LLC

Neuhofstrasse 11

4153 Reinach

Switzerland

Tel: +41 61 469 7222

Textile Specialties

1 International Business Park

#06-01 The Synergy

609917 Singapore

Tel: +65 6866 7409

Email: textile.specialties@archroma.com

Paper Solutions

Neuhofstrasse 11

4153 Reinach

Switzerland

Tel: +41 61 469 7218

Emulsion Products

Av. Nações Unidas, 18.001

04795-900 São Paulo SP

Brazil

Tel: + 55 11 5683 7706MEDIA & COMMUNICATIONS

Muriel Werle

Phone: +65 6866 7422 or +65 8318 1260

Email: muriel.werle@archroma.com

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.

Bank of China

AC#：N/A

Relationship: Normal.

SC’s management declined to release any financial information.

SC is considered medium-sized in its line with a development history of 19 years.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.37
UK Pound	1	Rs.102.48
Euro	1	Rs.81.87

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.