MIRA INFORM REPORT

Report No. :	335721
Report Date :	10.08.2015

IDENTIFICATION DETAILS

Name :	FARREACHING (DALIAN) CO., LTD.
Registered Office :	618b, Market Building, Free Trade Zone, Dalian, Liaoning Province, 116600 Pr
Country :	China
Financials (as on) :	31.12.2014
Date of Incorporation :	21.11.2007
Com. Reg. No.:	210200400029839
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Subject is engaged in exporting ship parts.
No. of Employees :	6

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 :	Small Company
Payment Behaviour :	Slow but correct
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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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; (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 2014 more than 274 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 passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.

Source : CIA

Company name and address

FARREACHING (DALIAN) CO., LTD.

618B, MARKET BUILDING, FREE TRADE ZONE, DALIAN,

LIAONING PROVINCE, 116600 PR CHINA

TEL: 86 (0) 411-82768620-605/39016580 FAX: 86 (0) 411-39016596

EXECUTIVE SUMMARY

INCORPORATION DATE : NOV. 21, 2007

REGISTRATION NO. : 210200400029839

REGISTERED LEGAL FORM : Wholly foreign-owned enterprise

CHIEF EXECUTIVE : MS. SONG YUAN (CHAIRMAN)

STAFF STRENGTH : 6

REGISTERED CAPITAL : USD 160,000

BUSINESS LINE : trading

TURNOVER : cny 4,320,000 (AS OF DEC. 31, 2014)

EQUITIES : CNY 560,000 (AS OF DEC. 31, 2014)

PAYMENT : SLOW BUT CORRECT

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : FAIRLY stable

OPERATIONAL TREND : FAIRLY steady

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.2091

Note: the “Room 1310, Tower B, Mingshi Fortune Center, No. 20, Gangwan Street, Zhongshan Ward, Dalian, Liaoning” was SC’s former address, while SC is operating in the heading one.

SC was registered as a wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Nov. 21, 2007.

Company Status: Wholly foreign-owned enterprise

This form of business in PR China is defined as a legal person. It is a limited co. established within the territories of PR China with capital provided totally by the foreign investors. More than one foreign investor may jointly invest in a wholly foreign-owned enterprise. The investing party/parties solely exercise management, reap profit and bear risks and liabilities by themselves. This form of companies usually have a limited duration is extendible upon approval of Examination and Approval Authorities.

SC’s registered business scope includes international trade, transit trade, information consulting, product display, engineering and technical services and consulting *** (with permit if needed).

SC is mainly engaged in exporting ship parts.

Ms. Song Yuan has been the legal representative, chairman and general manager of SC since 2007.

SC is known to have approximately 6 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in the free trade zone of Dalian. Our checks reveal that SC rents the total premise, but the gross area of the premise is unspecific.

http://www.farreachingintl.com The website belongs to Farreaching International Co., Ltd. The design is professional and the content is well organized. At present it is in Chinese and English versions.

E-mail: sales@far-reaching.com.cn

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

Organization Code: 665839695

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

MAIN SHAREHOLDERS:

Name % of Shareholding

Farreaching (Hong Kong) Co., Limited 100

Incorporation date: Sep. 3, 2007

Registration no.: 1163858

Legal form: Private company limited by shares

Status: Live

Add: 21/F, New World Tower 1, 18 Queen’S Road Central, Hong Kong

Tel: +852-6159 1069

Fax: +852-3007 0786

E-Mail: sales@far-reaching.com.cn

l Legal representative, chairman and general manager:

Ms. Song Yuan is currently responsible for the overall management of SC.

Working Experience(s):

From 2007 to present Working in SC as legal representative, chairman and general manager

l Directors:

Tan Youquan

Tan Bin

l Supervisor:

Yang Caihong

SC is mainly engaged in exporting ship parts.

SC’s products mainly include: ship parts.

SC sources its materials 100% from domestic market. SC sells 100% of its products 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, L/C and Credit of 30-60 days.

TRADEMARKS & PATENTS

No record

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

According to the website: http://www.farreachingintl.com

Farreaching General Trading Fze

Block C 1-Office 817, Ajman Free Zone, Ajman-U.A.E.

Tel: +971-6-747 9775

Fax: +971-6-747 9755

E-Mail: sales@far-reaching.com.cn

Farreaching India

Emerald Plaza, Hiranandani Meadows, Block No 3, Office No 19, Pokhran Road No.2, Thane West, Thane 400610

Tel: +91-22-4024 4888

Fax: +91-22-4024 4777

E-Mail: sales@far-reaching.com.cn

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 refused to release any information of its domestic suppliers and the trade reference was not available.

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 management declined to release the bank information of SC.

Balance Sheet

Unit: CNY’000

	as of Dec. 31, 2013	as of Dec. 31, 2014
Cash & bank	930	620
Inventory	70	100
Accounts receivable	40	130
Advances to suppliers	630	650
Other receivables	30	200
Other current assets	0	0
	------------------	------------------
Current assets	1,700	1,700
Long-term investments	0	0
Fixed assets net value	20	10
Projects under construction	0	0
Intangible assets	0	0
Other assets	0	0
	------------------	------------------
Total assets	1,720	1,710
	=============	=============
Short loans	0	0
Accounts payable	160	460
Advances from customers	440	240
Accrued payroll	0	0
Taxes payable	-290	-340
Other accounts payable	900	790
Other current liabilities	0	0
	-----------------	-----------------
Current liabilities	1,210	1,150
Long term liabilities	0	0
	------------------	------------------
Total liabilities	1,210	1,150
Shareholders equities	510	560
	------------------	------------------
Total liabilities & equities	1,720	1,710
	=============	=============

Income Statement

Unit: CNY’000

	as of Dec. 31, 2014
Turnover	4,320
Cost of goods sold	3,520
Taxes and additional of main operation	0
Sales expense	730
Management expense	0
Finance expense	0
Non-operating income	0
Non-operating expense	10
Profit before tax	60
Less: profit tax	10
Net profit	50

Important Ratios

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

	As of Dec. 31, 2013	As of Dec. 31, 2014
*Current ratio	1.40	1.48
*Quick ratio	1.35	1.39
*Liabilities to assets	0.70	0.67
*Net profit margin (%)	/	1.16
*Return on total assets (%)	/	2.92
*Inventory /Turnover ×365	/	9 days
*Accounts receivable/Turnover ×365	/	11 days
*Turnover/Total assets	/	2.53
* Cost of goods sold/Turnover	/	0.81

PROFITABILITY: AVERAGE

l The turnover of SC appears average in its line in 2014.

l SC’s net profit margin is average in 2014.

l SC’s return on total assets is average in 2014.

l SC’s cost of goods sold is average in 2014, comparing with its turnover.

LIQUIDITY: AVERAGE

l The current ratio of SC is in a normal level in both years.

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

l SC’s inventory is average in both years.

l The accounts receivable of SC appears average in both years.

l SC has no short-term loan in both years.

l SC’s turnover is average in 2014, comparing with the size of its total assets.

LEVERAGE: AVERAGE

l The debt ratio of SC is average.

l 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.63.81
UK Pound	1	Rs.98.93
Euro	1	Rs.69.66

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	TRU

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.