MIRA INFORM REPORT

Report Date :

22.11.2014

IDENTIFICATION DETAILS

Name :	UNICHEM COMPANY LTD. (CHINA)
Registered Office :	Room 1302 The Modern International Industrial Mansion, No. 801 Hongqiao Road, Liyuan Development Zone, Wuxi, Jiangsu Province 214001 Pr
Country :	China
Financials (as on) :	31.12.2013
Date of Incorporation :	23.03.2001
Com. Reg. No.:	320211000047617
Legal Form :	Limited Liabilities Company
Line of Business :	Wholesaling dangerous chemicals; selling chemical materials & products, textile materials & products, general machinery, leather products, electrical equipment & apparatus, hardware, plastic & rubber products, metal materials, and grocery; importing and exporting commodities and technology.
No of Employees :	24

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 :	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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

UNICHEM COMPANY LTD. (CHINA)

ROOM 1302 THE MODERN INTERNATIONAL INDUSTRIAL MANSION

NO. 801 HONGQIAO ROAD, LIYUAN DEVELOPMENT ZONE

WUXI, JIANGSU PROVINCE 214001 PR CHINA

TEL: 86 (0) 510-82328710/82328705

FAX: 86 (0) 510-82328706

EXECUTIVE SUMMARY

Date of Registration : MARCH 23, 2001

REGISTRATION NO. : 320211000047617

LEGAL FORM : Limited liabilities company

CHIEF EXECUTIVE : PU WEIFENG (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : cny 1,000,000

staff : 24

BUSINESS CATEGORY : trading

Revenue : CNY 81,120,000 (AS OF DEC. 31, 2013)

EQUITIES : CNY 1,100,000 (AS OF DEC. 31, 2013)

WEBSITE : www.unionchems.com

E-MAIL : webmaster@unionchems.com

PAYMENT : AVERAGE

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : ORDINARY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.15 = 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.: 320211000047617 on March 23, 2001.

SC’s Organization Code Certificate No.: 72723976-8

SC’s Tax No.: 320200727239768

SC’s registered capital: cny 1,000,000

SC’s paid-in capital: cny 1,000,000

Registration Change Record:-

No significant changes of SC have been noted in SAIC since its incorporation.

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

Name of Shareholder (s)	% of Shareholding
Pu Weifeng	51
Ye Zhiqun	39
Cai Ying	10

SC’s Chief Executives:-

Position	Name
Legal Representative, Chairman and General Manager	Pu Weifeng
Supervisor	Ye Zhiqun

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Pu Weifeng 51

Ye Zhiqun 39

Cai Ying 10

MANAGEMENT

Pu Weifeng, Legal Representative, Chairman and General Manager

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

Gender: M

Working experience (s):

At present, working in SC as legal representative, chairman and general manager

Ye Zhiqun, Supervisor

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

Gender: M

BUSINESS OPERATION

SC’s registered business scope includes wholesaling dangerous chemicals; selling chemical materials & products, textile materials & products, general machinery, leather products, electrical equipment & apparatus, hardware, plastic & rubber products, metal materials, and grocery; importing and exporting commodities and technology.

SC is mainly engaged in selling chemical materials & products.

SC’s products mainly include:

4-Dimethylaminopyridine

4-tert-Butyl catechol

Dibromoneopentyl Glycol

Monomethyl Ether Hydroquinone

Toluhydroquinone

Tribromo Neopentyl Glycol

Triphenyl phosphine

Ultraviolet Absorber 41

SC sources its products 100% from domestic market. SC sells 40% of its products in domestic market, and 60% to overseas market.

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

Staff & Office:

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

SC is known to have approx. 24 staff at present.

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

RELATED COMPANY

Wuxi Pridechem Co., Ltd.

Registration No.: 320205000138614

Date of Registration: March 15, 2010

Legal Form: Limited Liabilities Company

Registered Capital: CNY 500,000

Legal Representative: Wang Weiqun

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 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.

BANKING

The bank information of SC is not filed in local SAIC.

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2013
Cash	3,820
Notes receivable	0
Accounts receivable	9,520
Advances to suppliers	0
Other receivable	5,720
Inventory	9,730
Non-current assets within one year	0
Other current assets	-2,820
	------------------
Current assets	25,970
Fixed assets	40
Construction in progress	0
Intangible assets	0
Long-term investment	0
Deferred income tax assets	0
Other non-current assets	20
	------------------
Total assets	26,030
	=============
Short-term loans	0
Notes payable	0
Accounts payable	5,620
Welfares payable	0
Taxes payable	0
Advances from clients	0
Other payable	16,660
Other current liabilities	2,640
	------------------
Current liabilities	24,920
Non-current liabilities	0
	------------------
Total liabilities	24,920
Equities	1,100
	------------------
Total liabilities & equities	26,030
	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2013
Revenue	81,120
Cost of sales	75,770
Sales expense	2,020
Management expense	2,600
Finance expense	460
Profit before tax	90
Less: profit tax	20
Profits	70

Important Ratios

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

	As of Dec. 31, 2013
*Current ratio	1.04
*Quick ratio	0.65
*Liabilities to assets	0.96
*Net profit margin (%)	0.09
*Return on total assets (%)	0.27
*Inventory / Revenue ×365	44 days
*Accounts receivable / Revenue ×365	43 days
*Revenue / Total assets	3.12
*Cost of sales / Revenue	0.93

FINANCIAL COMMENTS

PROFITABILITY: AVERAGE

The revenue of SC appears average in its line.

SC’s net profit margin is average.

SC’s return on total assets is average.

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.

SC’s quick ratio is maintained in a fair level.

The inventory of SC appears average.

The accounts receivable of SC appears average.

SC has no short-term loans.

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

LEVERAGE: FAIR

The debt ratio of SC is high.

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.61.85
UK Pound	1	Rs.97.01
Euro	1	Rs.77.62

INFORMATION DETAILS

Report Prepared by :

TPT

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.