MIRA INFORM REPORT

Report Date :

30.09.2014

IDENTIFICATION DETAILS

Name :	Wuhan baslong saddlery Co., Ltd.
Registered Office :	No. 236 Lijing Plaza, Jinnan 1^st Road, Dongxihu District, Wuhan City, Hubei Province, 430048 PR
Country :	China
Financials (as on) :	31.12.2013
Date of Incorporation :	02.06.2010
Com. Reg. No.:	420112000067070
Legal Form :	Limited Liabilities Co.
Line of Business :	Sales of harness, equestrian products and electronic products
No of Employees :	4

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 :	Slow
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

WUHAN BASLONG SADDLERY CO., LTD.

NO. 236 LIJING PLAZA, JINNAN 1^ST ROAD, DONGXIHU DISTRICT,

WUHAN CITY, HUBEI PROVINCE, 430048 PR CHINA

TEL: 86 (0) 27-83915123

FAX: N/A

EXECUTIVE SUMMARY

INCORPORATION DATE : JUNE 2, 2010

REGISTRATION NO. : 420112000067070

REGISTERED LEGAL FORM : Limited liabilities co.

CHIEF EXECUTIVE : Mr. HU CHENJIE (legal representative)

STAFF STRENGTH : 4

REGISTERED CAPITAL : CNY 500,000

BUSINESS LINE : TRADING

TURNOVER : CNY 680,000 (AS OF DEC. 31, 2013)

EQUITIES : CNY 400,000 (AS OF DEC. 31, 2013)

PAYMENT : AVERAGE

MARKET CONDITION : fair

FINANCIAL CONDITION : fairly STABLE

OPERATIONAL TREND : FAIRLY steady

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.127 = 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 telephone no. 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) on Jun. 2, 2010.

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 sales of harness, equestrian products and electronic products (if needed with permit).

SC is mainly engaged in trading of goods.

Mr. Hu Chenjie is legal representative, executive director and general manager of SC at present.

SC is known to have approx. 4 employees at present.

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

SC is not known to host website of its own at present.

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

No significant changes were found during our checks with the local Administration for Industry and Commerce.

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

Organization Code: 555026925

MAIN SHAREHOLDERS:

Name % of Shareholding

Hu Chenjie 70

Hu Yongxiang 30

Legal Representative, Executive Director and General Manager:

Mr. Hu Chenjie is currently responsible for the overall and daily management of SC.

Working Experience(s):

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

Supervisor:

Hu Yongxiang

SC is mainly engaged in trading of goods.

SC’s products mainly include: harness

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

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

TRADEMARKS & PATENTS

Registration No.: 11853678

Registration Date: May 21, 2014

Trademark Design:

SC is not known to have the subsidiary at present.

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 accountant refused to release the bank details.

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2013
Cash & bank	520
Inventory	30
Accounts receivable	130
Advances to suppliers	50
Other receivables	60
	------------------
Current assets	790
Fixed assets net value	0
	------------------
Total assets	790
	===========
Short loan	0
Accounts payable	110
Taxes payable	10
Other accounts payable	270
	------------------
Current liabilities	390
Long term liabilities	0
	------------------
Total liabilities	390
Equities	400
	------------------
Total liabilities & equities	790
	===========

Income Statement

Unit: CNY’000

	As of Dec. 31, 2013
Turnover	680
Cost of goods sold	470
Sales expense	70
Management expense	220
Profit before tax	-80
Less: profit tax	0
Profits	-80

Important Ratios

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

	As of Dec. 31, 2013
*Current ratio	2.03
*Quick ratio	1.95
*Liabilities to assets	0.49
*Net profit margin (%)	-11.76
*Return on total assets (%)	-10.13
*Inventory /Turnover ×365	17 days
*Accounts receivable/Turnover ×365	70 days
*Turnover/Total assets	0.86
* Cost of goods sold/Turnover	0.69

PROFITABILITY: FAIR

The turnover of SC appears fair in its line.

SC’s net profit margin is poor.

SC’s return on total assets is poor.

SC’s cost of goods sold is average.

LIQUIDITY: AVERAGE

The current ratio of SC is maintained in a fairly good level.

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

The inventory of SC appears average.

The accounts receivable of SC is maintained in an average level.

SC has no short loans in 2013.

SC’s turnover is in a fair level, comparing with the size of its total assets.

LEVERAGE: AVERAGE

The debt ratio of SC is low.

The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly stable.

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.43
UK Pound	1	Rs.99.73
Euro	1	Rs.77.93

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	SMN

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.