MIRA INFORM REPORT

Report Date :

17.09.2014

IDENTIFICATION DETAILS

Name :	JA-E STORES (SHANGHAI) CORPORATION
Registered Office :	Room 202, Building C, Shunheng International Business Plaza, No. 28, Lane 289, Huxing Road, Minhang District, Shanghai, 201101 Pr
Country :	China
Date of Incorporation :	11.11.2010
Com. Reg. No.:	310112001023533
Legal Form :	Limited liabilities co.
Line of Business :	Subject scope includes selling maternal and child supplies, kitchen things, tableware, kitting and textile products, nursing materials, furniture, pet supplies, general merchandise, cleaning product, cosmetics, edible agricultural products (excluding pigs, cattle, sheep and other livestock products), sanitary ware, hardware and electric material, home appliances, electronic products, stationery, clock, garment, shoes, hats, building decoration materials, communication equipment and related products, fitness equipment, auto parts, flowers and plant, Class I medical devices and thermometer, sphygmomanometer, magnetic therapy instruments, medical absorbent cotton, medical absorbent gauze, medical health mask, gravid diagnostic test paper (early pregnancy test), condom, cervical caps, medical sterile gauze, business consulting (excluding economy), conference services, import and export of goods and technology, the following limited the branches: wholesale and retail of pre packaged food (including delicatessen and braised food, frozen food), bulk food, direct entrance food (excluding delicatessen and braised food), dairy products (including infant formula milk powder), retail of pig products, cattle and sheep meat, making on-site and selling direct entrance food (bread, pastry, decorative cake), making on-site and selling non direct entrance food (meat products)
No. of Employees	Not Available

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 – 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 and address

JA-E STORES (SHANGHAI) CORPORATION

Room 202, Building C, Shunheng international Business Plaza, No. 28, Lane 289, Huxing road, Minhang district, shanghai, 201101 PR CHINA

TEL: 86 (0) 21-34688116/33505000

FAX: 86 (0) 21-33504008

EXECUTIVE SUMMARY

INCORPORATION DATE : NOV. 11, 2010

REGISTRATION NO. : 310112001023533

REGISTERED LEGAL FORM : Limited liabilities co.

CHIEF EXECUTIVE : MR. ZHU RAOZHANG (LEGAL REPRESENTATIVE)

STAFF STRENGTH : N/A

REGISTERED CAPITAL : CNY 39,900,000

BUSINESS LINE : TRADING

TURNOVER : N/A

EQUITIES : N/A

PAYMENT : AVERAGE

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : steady

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.1516 = 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 Renminbi

Note: The correct address is the heading one.

SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license).

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 selling maternal and child supplies, kitchen things, tableware, kitting and textile products, nursing materials, furniture, pet supplies, general merchandise, cleaning product, cosmetics, edible agricultural products (excluding pigs, cattle, sheep and other livestock products), sanitary ware, hardware and electric material, home appliances, electronic products, stationery, clock, garment, shoes, hats, building decoration materials, communication equipment and related products, fitness equipment, auto parts, flowers and plant, Class I medical devices and thermometer, sphygmomanometer, magnetic therapy instruments, medical absorbent cotton, medical absorbent gauze, medical health mask, gravid diagnostic test paper (early pregnancy test), condom, cervical caps, medical sterile gauze, business consulting (excluding economy), conference services, import and export of goods and technology, the following limited the branches: wholesale and retail of pre packaged food (including delicatessen and braised food, frozen food), bulk food, direct entrance food (excluding delicatessen and braised food), dairy products (including infant formula milk powder), retail of pig products, cattle and sheep meat, making on-site and selling direct entrance food (bread, pastry, decorative cake), making on-site and selling non direct entrance food (meat products) (if needed with permit).（

SC is mainly engaged in wholesale and retail of all kinds of daily merchandise.

Mr. Zhu Raozhang is legal representative and executive director of SC at present.

SC’s employee’s information is unavailable at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Shanghai. Detailed premise information is not available at present.

http://www.ja-e.com/ The design is professional and the content is well organized. At present it is in Chinese version.

Email: info@ja-e.com

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

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
Unknown	Registered capital	CNY 10,000,000	Present amount
	Registered legal form	One-person limited liability company	Present one
	Shareholder	Zhu Raozhang 100%	Present ones

Subject passed the annual inspection of 2012 with Administration for Industry & Commerce.

Organization Code: 566523775

MAIN SHAREHOLDERS:

Name Amount (CNY) % of Shareholding

Zhu Raozhang 10,000,000 25.06

Hangzhou Jujifeng Industrial Co., Ltd. (In Chinese Pinyin) 29,900,000 74.94

Hangzhou Jujifeng Industrial Co., Ltd.

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

Registration No.: 330105000239001

Registered Legal Form: Limited Liabilities Co.

Legal representative: Ni Qiong

Legal Representative and Executive Director:

Mr. Zhu Raozhang, born in 1964 with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative and executive director.

Supervisor:

Liu Weihong

SC is mainly engaged in wholesale and retail of all kinds of daily merchandise.

SC’s products mainly include: wines, health products, skin care product, storage articles, and products for babies, bathroom, cleaning products, snack food, pet supplies, daily necessities, etc.

SC sources its materials 20% from domestic market, and 80% from overseas market. SC sells 100% of its products in domestic 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 and Credit of 30-60 days.

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

TRADEMARKS & PATENTS

Registration No.: 11713102

Registration Date: Apr. 14, 2014

Trademark Design:

Registration No.: 11713073

Registration Date: Apr. 14, 2014

Trademark Design:

Registration No.: 11713005

Registration Date: Apr. 14, 2014

Trademark Design:

Ja-e Stores (Shanghai) Corporation Huangjinchengdao Store

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

Incorporation Date: 2014-06-16

Registration No.: 310105000456563

Principal: Han Binbing

Ja-e Stores (Shanghai) Corporation Wanyuan Road Store

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

Incorporation Date: 2011-06-13

Registration No.: 310112001079025

Principal: Han Binbing

Ja-e Stores (Shanghai) Corporation Tianshan Road Store

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

Incorporation Date: 2013-12-26

Registration No.: 310105000443810

Principal: Han Binbing

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.

SC’s bank details are not available at present.

SC’s accountant refused to release the financial information.

SC has developed for 4 years. Due to lack of financial statements, we are unable to determine the maximum credit limit for SC. Taking into consideration of all the factors above, credit dealings with SC in small amount appear acceptable.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.10
UK Pound	1	Rs.99.04
Euro	1	Rs.79.03

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.