MIRA INFORM REPORT

Report No. :	319190
Report Date :	25.04.2015

IDENTIFICATION DETAILS

Name :	DAGRO CHEMICAL (CHANGZHOU) CO., LTD.
Registered Office :	No. 398, Tongjiang Middle Avenue, High-Tech Zone, Changzhou, Jiangsu Province, 213022 Pr
Country :	China
Financials (as on) :	31.12.2014
Date of Incorporation :	01.04.2005
Com. Reg. No.:	320407000045298
Legal Form :	Limited Liabilities Co.
Line of Business :	Subject is engaged in selling chemicals
No. of Employee :	5

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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. In 2014 the People’s Bank of China (PBOC) doubled 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 2014 stood as the largest economy in the world, surpassing the US that year� 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; � 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including legislation allowing local governments to issue bonds, further opening several state-owned enterprises to private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.

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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including legislation allowing local governments to issue bonds, further opening several state-owned enterprises to private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.

Source : CIA

company name and address

Dagro Chemical (Changzhou) Co., Ltd.

NO. 398, TONGJIANG MIDDLE AVENUE, HIGH-TECH ZONE, CHANGZHOU,

JIANGSU PROVINCE, 213022 PR CHINA

TEL: 86 (0) 519-85138680/85131381

FAX: 86 (0) 519-85138682

EXECUTIVE SUMMARY

INCORPORATION DATE : APR. 1, 2005

REGISTRATION NO. : 320407000045298

REGISTERED LEGAL FORM : Limited liabilities co.

CHIEF EXECUTIVE : dai yu (CHAIRMAN)

STAFF STRENGTH : 5

REGISTERED CAPITAL : CNY 1,000,000

BUSINESS LINE : TRADING

TURNOVER : CNY 21,800,000 (AS OF DEC. 31, 2014)

EQUITIES : CNY 2,180,000 (AS OF DEC. 31, 2014)

PAYMENT : AVERAGE

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : fairly stable

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.1965 = usd

ADOPTED ABBREVIATIONS

ANS - amount not stated

NS - not stated

SC - subject company (the company inquired by you)

NA - not available

CNY - China Yuan Renminbi

SC was registered as a limited liabilities co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Apr. 1, 2005.

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 chemical raw materials and products (excluding hazardous chemicals), rubber and rubber products and chemical equipment; importing and exporting commodities and technologies, excluding commodities and technologies prohibited by country. (with permit if needed)

SC is mainly engaged in selling chemicals.

Dai Yu is legal representative, chairman and general manager of SC at present.

SC is known to have approx. 5 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Changzhou. Our checks reveal that SC rents the total premise about 300 square meters.

http://www.dagrochem.com/ The design is professional and the content is well organized. At present it is in Chinese and English versions.

Email: info@dagrochem.com

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
Unknown	Legal representative	Fu Xiaoli	Present one
	Shareholders	Fu Xiaoli 75% Zhang Shujuan 25%	Present ones

Organization Code: 772495517

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

MAIN SHAREHOLDERS:

Name % of Shareholding

Dai Yu 75

Zhang Shuzhen 25

Legal representative, Chairman and General manager:

Dai Yu is currently responsible for the overall management of SC.

Working Experience(s):

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

Also working in Dagro Chemical (Chengwu) Co., Ltd. as legal representative.

Supervisor:

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

Zhang Shuzhen

SC is mainly engaged in selling chemicals.

SC’s products mainly include:

Intermediate:

2-Ethylsulfonyl imidazo [1, 2-a] pyridine-3-sulfonamide

1-Methyl-4-ethoxy carbonyl pyrazol-5-sulfonamide

4,6-Dimethoxy-2-(phenoxycarbonyl) aminopyrimidine

4,6-Dimethoxy-2-methylsulfonyl pyrimidine

2,6-Dihydroxybenzoic acid

2,4-Dihydroxybenzoic acid

Catalysts:

4-Dimethylamino pyridine

Herbicide:

Sulfosulfuron

Imazosulfuron

Pyrazosulfuron-ethyl

Bispyribac-sodium

SC sources its materials 100% from domestic market. SC sells 5% of its products in domestic market, and 95% to overseas market, mainly Middle East.

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.

Main Supplier:

……………….

Dagro Chemical (Chengwu) Co., Ltd.

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

Dagro Chemical (Chengwu) Co., Ltd.

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

Registration no.: 371723200002804

Legal representative: Dai Yu

Incorporation date: 2010-07-01

Add: Fine Chemical Industry Zone, Chengwu, Shandong Province

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’s suppliers declined to make any comments.

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.

China Construction Bank

AC#: 51032001628436052505135

Relationship: Normal.

Balance Sheet

Unit: CNY’000

	as of Dec. 31, 2014
Cash & bank	970
Inventory	60
Accounts receivable	960
Advances to suppliers	0
Export drawback receivable	690
Other receivables	150
Other current assets	0
	------------------
Current assets	2,830
Fixed assets net value	160
Long-term investment	0
Intangible and other assets	0
	------------------
Total assets	2,990
	=============
Short loans	0
Accounts payable	580
Advances from clients	0
Other Accounts payable	220
Taxes payable	10
Other current liabilities	0
	-----------------
Current liabilities	810
Long term liabilities	0
	------------------
Total liabilities	810
Shareholders equities	2,180
	------------------
Total liabilities & equities	2,990
	=============

Income Statement

Unit: CNY’000

	as of Dec. 31, 2014
Turnover	21,800
Cost of goods sold	20,090
Sales expense	900
Management expense	850
Finance expense	-580
Profit before tax	540
Less: profit tax	140
Profits	400

Important Ratios

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

	as of Dec. 31, 2014
*Current ratio	3.49
*Quick ratio	3.42
*Liabilities to assets	0.27
*Net profit margin (%)	1.83
*Return on total assets (%)	13.38
*Inventory /Turnover ×365	1 day
*Accounts receivable/Turnover ×365	16 days
*Turnover/Total assets	7.29
* Cost of goods sold/Turnover	0.92

PROFITABILITY: AVERAGE

The turnover of SC appears average in its line.

SC’s net profit margin is average.

SC’s return on total assets is good.

SC’s cost of goods sold is fairly high, comparing with its turnover.

LIQUIDITY: AVERAGE

The current ratio of SC is maintained in a normal level.

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

The inventory of SC appears small.

The accounts receivable of SC appears average.

SC has no short-term loan in 2014.

SC’s turnover is in a good 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.63.00
UK Pound	1	Rs.95.42
Euro	1	Rs.68.49

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	ANK

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.