MIRA INFORM REPORT

Report Date :

08.05.2012

IDENTIFICATION DETAILS

Name :	BICHAMP CUTTING TECHNOLOGY (HUNAN) CO., LTD.
Registered Office :	No. 68, Taijia Road, Hunan High-Tech Industrial Zone, Wangcheng, Changsha, Hunan Province 410200 Pr
Country :	China
Date of Incorporation :	23.10.2003
Com. Reg. No.:	430100400000977
Legal Form :	Shares Limited Company
Line of Business :	Subject is engaged in manufacturing and selling Bi-metallic composite materials and their bandsaw products
No. of Employees :	430

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 – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
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 & address

BICHAMP CUTTING TECHNOLOGY (HUNAN) CO., LTD.

NO. 68, TAIJIA ROAD, HUNAN HIGH-TECH INDUSTRIAL ZONE, WANGCHENG,

CHANGSHA, HUNAN PROVINCE 410200 PR CHINA

TEL: 86 (0) 731-88059666/88051650-8215 FAX: 86 (0) 731-88051649

EXECUTIVE SUMMARY

INCORPORATION DATE : OCT. 23, 2003

REGISTRATION NO. : 430100400000977

REGISTERED LEGAL FORM : Shares limited co.

CHIEF EXECUTIVE : MR. FANG HONG (CHAIRMAN)

STAFF STRENGTH : 430

REGISTERED CAPITAL : CNY 100,000,000

BUSINESS LINE : MANUFACTURING & TRADING

TURNOVER : N/A

EQUITIES : N/A

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.2972 = 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 Ren Min Bi

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

Company Status: Shares limited co.

This form of business in PR China is defined as a legal person. Its registered capital is divided into shares of equal par value and the co. raises capital by issuing share certificates by promotion or by public offer. Shareholders bear limited liability to the extent of shareholding, and the co. is liable for its debts only to the extent of its total assets. The co has independent property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as follows:

The establishment of the co. requires at least two promoters and no more than 200, half of whom shall be domiciled in China.. Natural person are allowed to serve as promoters.

The minimum registered capital of a co. is CNY 5M. while that of the co. with foreign investment is CNY 5M. The total capital of a co. which propose to apply for publicly listed must be no less than CNY 30M.

The board of directors must consist of five to nineteen directors.

If the co. raises capital by public offer, the promoters must not subscribe less than 35% of the total shares. the promoters’ shares are restricted to transfer- within one year of the offer.

A state-owned enterprise that is restructured into a shares limited co. must comply with the conditions & requirements specified under the law & administrative rule.

SC’s registered business scope includes manufacturing Bi-metallic composite materials and their bandsaw products; research, development and production of sawing machine and Electromechanical Integration product; sales and import & export of the above products.

SC is mainly engaged in manufacturing and selling Bi-metallic composite materials and their bandsaw products.

Mr. Fang Hong is legal representative, chairman and general manager of SC at present.

SC is known to have approx. 430 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Changsha. The detailed information of the area is unspecified.

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

Email: marketing@bichamp.com ; sales@bichamp.com

In April of 2005, SC’s "Technology of manufacturing Bi-metal Steel Strips" passed through the examination by experts organized by Hunan Science & Technology Bureau: In October of 2005, SC’s project of "Bi ¨C metal Steel Strips for High Speed Cutting" was awarded "National High and New Technology Industrialization Demonstration Project" by China National Development and Reform Commission. In year of 2006, SC was approved by the national Foreign Experts Bureau to be the one of key enterprises, which will enjoy special support on obtain know-how from foreign expert and technician overseas training. In October of 2006, SC won the prize of "New Science and technology Contribution" awarded by Wangcheng County Science and Technology Bureau. In June of 2007, SC’s Project was listed as the key project of Science and Technology Plan of Changsha City Government.

No significant changes were found during our checks with local AIC.

MAIN SHAREHOLDERS:

Name % of Shareholding

Shanghai Baizhi Investment Management Center (in Chinese pinyin) 7.5

Zoomlion Heavy Industry Science and Technology Co., Ltd. 32

North Sea Guosheng Investment Co., Ltd. (in Chinese pinyin) 1.5

Bangzhong Investment Co., Ltd. (in Chinese pinyin) 51

Hunan Hualin Weiye Investment Management Center (in Chinese pinyin) 2.5

Hunan Jiahua Assets Management Co., Ltd. (in Chinese pinyin) 5.5

Zoomlion Heavy Industry Science and Technology Co., Ltd.

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

Founded in 1992 and listed on the Shenzhen Stock Exchange (hereinafter referred to as “Zoomlion”, stock code: 000157) in October 2000 and on the Hong Kong Stock Exchange (stock code: 01157) in December 2010, Changsha Zoomlion Heavy Industry Science & Technology Co., Ltd is China’s leading manufacturer of construction machinery equipment and among China’s first “Group of Innovative Enterprises.” Zoomlion is mainly specialized in the R&D and manufacturing of advanced technologies and equipment for national key infrastructure construction projects, including construction, energy engineering, environment engineering and transportation engineering projects.

Zoomlion Heavy Industry Science and Technology Co., Ltd. was formerly named as Changsha Zoomlion Heavy Industry Science and Technology Development Co., Ltd.

Registration no.: 430000400000198

Legal representative: Zhan Chunxin

Add: No. 361, Yinpen South Road, Changsha, Hunan Province

Tel: 0731-88923908/ 88923897

Fax: 0731-88923904

Website: http://www.zoomlion.com/

Legal representative, chairman and general manager:

Mr. Fang Hong is currently responsible for the overall management of SC.

Working Experience(s):

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

Other officials:

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

Li Hui

Yi Danqing

Qi Shanhong

Zhou Shengyu

Shen Ke

Liu Wei

Zhu Xinmin

Peng Feizhou

Chen Tiejian

Note: The given contact person (Ms. Karen Wang) is confirmed to be working in SC at present.

SC is mainly engaged in manufacturing and selling Bi-metallic composite materials and their bandsaw products.

SC’s products mainly include:

Bimetal BandSaw Strip

Bimetal BandSaw Blades:

1/2 '' M42 Bandsaw Blades

3/4 '' M42 Bandsaw Blades

1 '' M42 Bandsaw Blades

11/4 '' M42 Bandsaw Blades

11/2 '' M42 Bandsaw Blades

''CB'' Carbide Tipped Saw Blades

''HB''High Speed Steel Blades

Band Saws for Metal Cutting:

Pallet BandSaw Blades

"Just Cut"Band Saw Blades

Circular saw machine

Special purpose machine

Brands: TANCUT”, “JUSTCUT”, “AA”、“FICUT”, “Bichamp”

SC has the capacity of annually producing 2300 tons bi-metal steel strips, 10 million bi-meatal Bandsaw Blades and 3500 sets of metal Cutting Saw Machine at present.

SC sources its materials 100% from overseas market. SC sells 90% of its products in domestic market, and 10% to the 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 T/T, L/C and Credit of 30-60 days.

Note: SC’s management refused to release its main clients and suppliers.

SC is not known to have any 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.

Shanghai Pudong Development Bank Changsha Branch

AC# N/A

Relationship: Normal.

SC’s financial reports were not found during our checks with the local Administration for Industry and Commerce.

SC’s management declined to release any financial information.

SC is considered medium-sized in its line with a development history of 9 years. Taking into consideration of SC’s general performance, reputation as well as market conditions, credit up to moderate amount may be considered.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.34
UK Pound	1	Rs.86.09
Euro	1	Rs.69.37

INFORMATION DETAILS

Report Prepared by :

MNL

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.