MIRA INFORM REPORT

Report Date :

02.09.2014

IDENTIFICATION DETAILS

Name :	ICL Performance Products (Jiangyin) Co., Ltd.

Registered Office :	No. 58 Dongsheng Road, Gaoxin Park, Economic Development Zone, Jiangyin, Jiangsu Province, 063000 PR

Country :	China

Financials (as on) :	31.12.2013

Date of Incorporation :	08.06.2005

Com. Reg. No.:	320281400009996

Legal Form :	Wholly Foreign-Owned Enterprise

Line of Business :	Engaged in manufacturing and selling chemical products.

No. of Employees :	234

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 – June 01, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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

ICL Performance Products (Jiangyin) Co., Ltd.

no. 58 dongsheng road, gaoxin park, economic development zone

jiangyin, jiangsu PROVINCE, 063000 PR CHINA

TEL: 86 (0) 510-86996866

FAX: 86 (0) 510-86996077

EXECUTIVE SUMMARY

Date of Registration : JUNe 8, 2005

REGISTRATION NO. : 320281400009996

LEGAL FORM : Wholly foreign-owned enterprise

CHIEF EXECUTIVE : ELI GLAZER (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : USD 13,643,000

staff : 234

BUSINESS CATEGORY : MANUFACTURING & TRADING

Revenue : CNY 377,510,000 (AS OF DEC. 31, 2013)

EQUITIES : CNY 168,600,000 (AS OF DEC. 31, 2013)

WEBSITE : www.bk-giulini-china.com

E-MAIL : leatherchemical@icl-pp-jy.com

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : stable

OPERATIONAL TREND : fairly STEADY

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 wholly foreign-owned enterprise of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 320281400009996 on June 8, 2005.

SC’s Organization Code Certificate No.: 77248220-6

SC’s Tax No.: 320281772482206

SC’s registered capital: USD 13,643,000

SC’s paid-in capital: USD 13,643,000

Registration Change Record:-

Date	Change of Contents	Before the change	After the change
2008-6-3	Registered Capital	USD 5,500,000	USD 5,738,000
2008-8-6	Legal Representative	Ytzhak Peretz	Alexander Paz
2009-12-16	Registered Capital	USD 5,738,000	USD 15,723,000
2009-12-16	Shareholder (s) (% of Shareholding)	Rotem Holding GmbH 100%	Rotem Holding GmbH 46.03% BK Giulini Personal Care Co.,Limited 44.43% BK Giulini Leather Chemistry Co., Limited 9.54%
2011-6-21	Registered Capital	USD 15,723,000	USD 13,643,000
2011-8-10	Legal Representative	Alexander Paz	Eli Glazer
2014-2-17	Company Name	BK Giulini Performance Products (Jiangyin) Co., Ltd.	ICL Performance Products (Jiangyin) Co., Ltd.

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

Name of Shareholder (s)	% of Shareholding
Rotem Holding GmbH (Germany)	53.05
BK Giulini Personal Care Co., Limited (Hong Kong)	35.95
BK Giulini Leather Chemistry Co., Limited (Hong Kong)	11.00

SC’s Chief Executives:-

Position	Name
Legal Representative and Chairman	Eli Glazer
General Manager	Haim Shalom Vaisman
Director	Jie Yucheng
Director	Zhu Haiqing
Supervisor	Bruene Dr Cremer

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Rotem Holding GmbH 53.05

BK Giulini Personal Care Co., Limited 35.95

BK Giulini Leather Chemistry Co., Limited 11.00

Rotem Holding GmbH (Germany)

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

Giulinistr 2

Ludwigshafen Am Rhein, 67065, Germany

Phone: (621) 570-9289

BK Giulini Personal Care Co., Limited (Hong Kong)

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

Date of Registration: April 19, 2004

Registration No.: 0895942

Legal Form: Private

BK Giulini Leather Chemistry Co., Limited

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

Date of Registration: June 12, 2002

Registration No.: 0802004

Legal Form: Private

MANAGEMENT

Eli Glazer, Legal Representative and Chairman

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

Ø Gender: M

Ø Passport No.: 10920857

Ø Qualification: University

Ø Working experience (s):

At present, working in SC as legal representative and chairman

Haim Shalom Vaisman, General Manager

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

Ø Gender: M

Ø Passport No.: 9999111

Ø Qualification: University

Ø Working experience (s):

At present, working in SC as general manager

Director

-----------

Jie Yucheng

Zhu Haiqing

Supervisor

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

Bruene Dr Cremer

BUSINESS OPERATION

SC’s registered business scope includes manufacturing and processing chemical products, mold material, high quality waterproof sealing materials, chemical products; manufacturing chemical products; wholesale of its owned products, machinery and equipment, water treatment membrane products, providing related technical services.

SC is mainly engaged in manufacturing and selling chemical products.

Brand: ICL

SC’s products mainly include: specialty fertilizers and specialty phosphates, flame retardants.

SC sources its materials 100% from domestic market, mainly Jiangsu. SC sells 75% of its products in domestic market, and 25% to overseas market.

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

Staff & Office:

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

SC is known to have approx. 234 staff at present.

SC rents an area as its operating office & factory of approx. 66,000 sq. meters at the heading address.

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 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 SAIC.

FINANCIALS

Financial Summary

Unit: CNY’000	As of Dec. 31, 2013
Total assets	272,660
	-------------
Total liabilities	104,060
Equities	168,600
	-------------
Revenue	377,510
Profit before tax	11,240
Less: profit tax	3,010
Profits	8,230

Important Ratios

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

	As of Dec. 31, 2013
*Liabilities to assets	0.38
*Net profit margin (%)	2.18
*Return on total assets (%)	3.02
*Revenue / Total assets	1.38

FINANCIAL COMMENTS

PROFITABILITY: AVERAGE

l The revenue of SC appears fairly good in its line.

l SC’s net profit margin is average.

l SC’s return on total assets is average.

LIQUIDITY: AVERAGE

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

LEVERAGE: AVERAGE

l The debt ratio of SC is low.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Stable.

CONCLUSIONS

SC is considered medium-sized in its line with stable financial conditions

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.47
UK Pound	1	Rs.100.42
Euro	1	Rs.79.39

INFORMATION DETAILS

Analysis Done by :	KAR

Report Prepared by :	PDT

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.