MIRA INFORM REPORT

Report No. :	349810
Report Date :	16.11.2015

IDENTIFICATION DETAILS

Name :	PICHEIR ENTERPRISE (XIAMEN) CO., LTD.
Registered Office :	207-208, No. 15, Xiangxing 1st Road, Free Trade Zone, Xiamen, Fujian Province, 361006 Pr
Country :	China
Financials (as on) :	31.12.2014
Date of Incorporation :	05.11.2009
Com. Reg. No.:	350298200010344
Legal Form :	Limited Liabilities Company
Line of Business :	Manufacturing, processing and selling garments, shoes, hats and textiles; wholesaling & retailing arts & crafts, daily necessities, machinery equipment, office stationery, electronic products, hardware, auto parts, building materials, computer & parts, sporting goods, metal materials, logistics equipment, coffee utensil, fishing equipment, furniture, energy conservation & environmental protection products, plumbing sanitary ware; importing & exporting commodities and technology
No. of Employees :	6

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

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 – 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

Company name and address

PICHEIR ENTERPRISE (xiamen) CO., LTD.

207-208, NO. 15, XIANGXING 1^ST ROAD, FREE TRADE ZONE,

XIAMEN, fujian province, 361006 PR CHINA

TEL: 86 (0) 592-5762155/5762319/17759220056 FAX: 86 (0) 592-5762622

EXECUTIVE SUMMARY

INCORPORATION DATE : Nov. 5, 2009

REGISTRATION NO. : 350298200010344

REGISTERED LEGAL FORM : Limited liabilities company

chief executive : QIU HUARONG (CHAIRMAN)

STAFF STRENGTH : 6

REGISTERED CAPITAL : CNY 1,000,000

BUSINESS LINE : TRADING

TURNOVER : CNY 3,530,000 (AS OF DEC. 31, 2014)

EQUITIES : CNY -110,000 (AS OF DEC. 31, 2014)

PAYMENT : SLOW

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : Fair

OPERATIONAL TREND : fair

GENERAL REPUTATION : average

EXCHANGE RATE : CNY 6.37 = 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 “Wanshan Third Plant of Layer 2 of 3, No. 78, Huli Avenue, Huli District, Xiamen” is SC’s registered address and “No. 16, Xinfengsan Road, Torch Section of Xiamen, Fujian Province” was SC’s former operation address; the present operating address should be the heading one. The given contact person Liu Weina was SC’s former legal representative.

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 Nov. 5, 2009.

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 manufacturing, processing and selling garments, shoes, hats and textiles; wholesaling & retailing arts & crafts, daily necessities, machinery equipment, office stationery, electronic products, hardware, auto parts, building materials, computer & parts, sporting goods, metal materials, logistics equipment, coffee utensil, fishing equipment, furniture, energy conservation & environmental protection products, plumbing sanitary ware; importing & exporting commodities and technology (without import and export commodity list), excluding the items prohibited or limited by the country.

SC is mainly engaged in trading of goods.

Qiu Huarong is the legal representative, executive director and general manager of SC at present.

SC is known to have approx. 6 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in Xiamen. The detailed premise information is unspecified.

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

Email: rick.qiu@picheir.com

Certificates:

===========

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
Unknown	Chinese name		Present one
	Legal representative	Liu Weina	Present one
	Shareholdings	Liu Weina 60% Qiu Huafeng 40%	Present ones

Note: SC changed its Chinese, while its English name remains the same.

Organization Code: 693026026

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

MAIN SHAREHOLDERS:

Name % of Shareholding

Qiu Huarong 60

Qiu Huafeng 40

Legal Representative, Executive Director and General Manager:

Qiu Huarong is currently responsible for the overall management of SC.

Working Experience(s):

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

Supervisor:

Qiu Huafeng

SC is mainly engaged in trading of goods.

SC’s products mainly include: coconut shell charcoal, coco peat, coir fibre

The products are mainly applied in industrial production, landscaping and erosion control.

SC sources its materials 30% from domestic market, and 70% from overseas market. SC sells 95% of its products in domestic market, and 5% to overseas 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, L/C and Credit of 30-60 days.

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

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.

Agricultural Bank of China

AC#：N/A

Relationship: Normal.

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2014
Cash & bank	50
Inventory	5,930
Accounts receivable	990
Other Accounts receivable	280
Advances to suppliers	-400
Other current assets	0
	------------------
Current assets	6,850
Fixed assets net value	0
Intangible and other assets	0
	------------------
Total assets	6,850
	=============
Short loans	0
Accounts payable	300
Advance from customers	50
Other Accounts payable	7,000
Taxes payable	-390
Other current liabilities	0
	------------------
Current liabilities	6,960
Long term liabilities	0
	------------------
Total liabilities	6,960
Equities	-110
	------------------
Total liabilities & equities	6,850
	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2014
Turnover	3,530
Cost of goods sold	3,070
Sales expense	430
Management expense	360
Finance expense	20
Profit before tax	-350
Less: profit tax	0
Profits	-350

Important Ratios

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

	As of Dec. 31, 2014
*Current ratio	0.98
*Quick ratio	0.13
*Liabilities to assets	1.02
*Net profit margin (%)	-9.92
*Return on total assets (%)	-5.11
*Inventory /Turnover ×365	614 days
*Accounts receivable/Turnover ×365	103 days
*Turnover/Total assets	0.52
* Cost of goods sold/Turnover	0.87

PROFITABILITY: FAIR

The turnover of SC appears average in its line.

SC’s net profit margin is fair.

SC’s return on total assets is fair.

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

LIQUIDITY: FAIR

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

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

The inventory of SC appears large.

The accounts receivable of SC appears fairly large.

SC has no short-term loan in 2014.

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

LEVERAGE: POOR

The debt ratio of SC is too high.

The risk for SC to go bankrupt is above average.

Overall financial condition of the SC: Fair.

SC is considered small-sized in its line with fair financial conditions. The large amount of accounts receivable and inventory could be a threat to SC’s financial condition. Great caution is required in providing credit to SC and C.O.D. is recommended.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.14
UK Pound	1	Rs.100.55
Euro	1	Rs.71.26

INFORMATION DETAILS

Analysis Done by :	RAS
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.