MIRA INFORM REPORT

Report Date :

29.05.2012

IDENTIFICATION DETAILS

Name :	XIZI OTIS ELEVATOR CO., LTD.

Registered Office :	No. 28 Jiuhuan Road, Jianggan Economic Park Zone, Hangzhou, Zhejiang Province, 310019 Pr

Country :	China

Financials (as on) :	31.12.2010

Date of Incorporation :	12.03.1997

Com. Reg. No.:	330100400019078

Legal Form :	Chinese-Foreign Equity Joint Venture Enterprise

Line of Business :	Manufacturing and Selling Elevators, Escalators and Parts

No. of Employees :	3,000

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good

Payment Behaviour :	Regular

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

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name & address

xizi otis elevator co., ltd.

no. 28 jiuhuan road, jianggan economic park zone, hangzhou,

zhejiang PROVINCE, 310019 PR CHINA

TEL: 86 (0) 571-85140888/81600684 FAX: 86 (0) 571-85147888

EXECUTIVE SUMMARY

INCORPORATION DATE : march 12, 1997

REGISTRATION NO. : 330100400019078

REGISTERED LEGAL FORM : Chinese-foreign equity joint venture enterprise

CHIEF EXECUTIVE : MR. chen xiaxin (legal representative)

STAFF STRENGTH : 3,000

REGISTERED CAPITAL : usd 15,000,000

BUSINESS LINE : manufacturing

TURNOVER : CNY 5,934,196,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 1,331,334,000 (AS OF DEC. 31, 2010)

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRLY GOOD

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : well-known

EXCHANGE RATE : CNY 6.3492 = 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

SC was registered as a Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC – The official body of issuing and renewing business license) on March 12, 1997.

Company Status: Chinese-foreign equity joint venture enterprise

This form of business in PR China is defined as a legal person. It is a limited co. jointly invested by one or more foreign companies and one or more PR China controlled companies within the territories of PR China according to a certain proportion of capital investment. The investing parties exercise business management, share profits and bear all risks and liabilities of the co. together. The equity joint venture law requires that foreign party contribute not less than 25% of the registered capital, with no maximum. The investing parties are free to agree on method of profit distribution and liabilities bearing according to the proportion of capital investment. Each investing parties contributes funds, tangible assets, technology & etc. The board of directors excises the high authority. The joint venture usually has a limited duration of 10 to 50 years. Enterprise with large investment, long construction periods, low investment returns, introducing of advanced technology & advanced technology products that have good competition position in international market may extend beyond the 50 years limit.

SC’s registered business scope includes researching, designing, manufacturing elevators, escalators, moving walkways and related equipment & accessories (validity period as of November 30, 2013); selling its own products; providing installation, repair, maintenance, transformation and technical consulting services; wholesaling, importing & exporting, acting as a commission agency (excluding auction) of the same kind products of the above and supplying related technology services for the same kind products; in accordance with the related regulations and license.

SC is mainly engaged in manufacturing and selling elevators, escalators and parts.

Mr. Chen Xiaxin has been legal representative of SC since 2007.

SC is known to have approx. 3,000 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the economic park zone of Hangzhou. Our checks reveal that SC owns the total premise about 55,000 square meters.

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

Honors:

Listed as 2009 Annual International Energy-saving and Environment-protecting (China) Science and Technology Demonstration Project

Elected in Top100 Chinese Influence over the Global Environmental Protection and New Energy Industry

National Award of Customer Satisfaction in Elevator Products Quality Evaluation Inspection for the Seventh Consecutive Time

Honor of “Customer Satisfactory Service” in National Elevator Customer Satisfaction Evaluation

Group Member Unit of Zhejiang Association for Quality

Won the honor of “Serving the Beijing Olympics and Keep the Subway Smooth”

2008 Unit with Prominent Contribution in the Elevator Safety Protection Work for the 2008 Beijing Olympics and Paralympics by Beijing Bureau of Quality and Technical Supervision

Xizi Otis Elevator’s Wireless Control System won the Annual Best Design Award of Fortune

Etc.

2007：

2006：

Outstanding Enterprise of Hangzhou

2005：

2004：

Won the OTIS Global ACE Silver Medal

Famous Trade Name of Zhejiang Province

2003：

Award of Best Operational Performance

2002：

2001：

2000：

1999：

1998：

1997：

2008：

2007：

2006：

Outstanding Enterprise of Hangzhou

2005：

2004：

Won the OTIS Global ACE Silver Medal

Famous Trade Name of Zhejiang Province

2003：

Award of Best Operational Performance

2002：

2001：

2000：

1999：

1998：

1997：

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
2001-11-30	% of shareholding	Xizi Elevator Group Co., Ltd. 70% Otis Far East Holdings Ltd. 30%	Xizi Elevator Group Co., Ltd. 20% Otis Far East Holdings Ltd. 80%
2004-8-27	Company’s name	Hangzhou Xizi Otis Elevator Co., Ltd.	Present one
2007-3-8	Legal representative	Wang Shuifu	Chen Xiaxin
2008-4-11	Registration No.	002763	Present one
2008-4-11	Shareholders	Xizi Elevator Group Co., Ltd. 20% Otis Far East Holdings Ltd. 80%	Present ones

Tax Registration Certificate No.: 330104609138624

Organization Code: 609138624

MAIN SHAREHOLDERS:

Name % of Shareholding

Otis Elevator (China) Investment Co., Ltd. (U.S.A) 80

Xizi Elevator Group Co., Ltd. 20

Otis Elevator (China) Investment Co., Ltd.:

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

Address: No. 443 South Jiefang Road, Hexi District, Tianjin.

Tel: 86 022-28101188

Website: http://www.otisworldwide.com/ (Otis Elevator Company)

Xizi Elevator Group Co., Ltd.:

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

Registration no.: 330104000016372

Registered capital: CNY 760,000,000

Legal representative: Wang Shuifu

Address: No. 420 Fengqi Road, Hangzhou, Zhejiang Province

Tel: 86 0571-85160862

l Legal representative:

Mr. Chen Xiaxin, ID # 330104196205151916, born in 1962, with university education. He is currently responsible for the daily management of SC.

Working Experience(s):

From 2007 to present Working in SC as legal representative.

· Chairman:

Mr. Wang Shuifu, born in 1955. He is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as chairman.

Also working in Xizi Elevator Group Co., Ltd. as legal representative.

l Directors:

Chales. Vo

Michael Griffin

Zheng Peimin

Alberto Meroni

Nicholas Lee

Etc.

SC is mainly engaged in manufacturing and selling elevators, escalators and parts.

Brand: XIZI OTIS.

SC’s products mainly include: gear-less passenger elevator series, residential elevator series, machine room-less passenger elevator series, freight elevator series, gear passenger elevator series, hydraulic elevator series, sightseeing elevator series, automatic escalator series, medical use series, and automatic walkway series.

SC sources its materials 60% from domestic market, and 40% from overseas market, mainly U.S.A. and Europe. SC sells 90% of its products in domestic market, and 10% to overseas market, mainly U.S.A. and Southeast Asian market.

The buying terms of SC include 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.

*Major Customers:

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

Wuhan Sanjiang Spaceflight Real Estate Development Co., Ltd.

Wuhan Zhenghe Industry Co., Ltd.

*Major Supplier:

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

Otis Elevator Co. (U.S.A.)

Branches:

=========

· Xizi Otis Elevator Co., Ltd. Ningbo Branch

· Xizi Otis Elevator Co., Ltd. Hangzhou Branch

· Xizi Otis Elevator Co., Ltd. Zhejiang Branch

· Xizi Otis Elevator Co., Ltd. Beijing Branch

· Xizi Otis Elevator Co., Ltd. Shanghai Branch

· Xizi Otis Elevator Co., Ltd. Jiangsu Branch

· Xizi Otis Elevator Co., Ltd. Suzhou Branch

· Xizi Otis Elevator Co., Ltd. Wuhan Branch

· Xizi Otis Elevator Co., Ltd. Guangzhou Branch

· Xizi Otis Elevator Co., Ltd. Shenzhen Branch

· Xizi Otis Elevator Co., Ltd. Tianjin Branch

Etc.

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.

Industrial and Commercial Bank of China Jiefang Road Sub-branch

AC# 1202020709016208188

Relationship: Normal.

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2010
Cash & bank	2,515,047
Inventory	264,809
Bills receivable	101,949
Accounts receivable	569,548
Other Accounts receivable	32,854
Advances to suppliers	17,698
Non-current assets due within one years	2,039
Other current assets	0
	------------------
Current assets	3,503,944
Fixed assets net value	171,045
Projects under construction	2,694
Intangible assets	19,446
Long-term deferred expense	260
Long-term investment	0
Other assets	42,427
	------------------
Total assets	3,739,816
	=============
Short loans	0
Accounts payable	856,953
Advance from customers	935,772
Accrued payroll	73,037
Other Accounts payable	134,987
Notes payable	0
Taxes payable	119,820
Non-current liabilities due within one years	243,447
Other current liabilities	44,466
	------------------
Current liabilities	2,408,482
Long term liabilities	0
Other liabilities	0
	------------------
Total liabilities	2,408,482
Equities	1,331,334
	------------------
Total liabilities & equities	3,739,816
	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2010
Turnover	5,934,196
Cost of goods sold	4,169,189
Taxes and additional of main operation	13,941
Sales expense	297,245
Management expense	149,496
Finance expense	-37,819
Non-operating income	4,623
Non-operating expense	886
Profit before tax	1,345,881
Less: profit tax	352,660
Profits	993,221

Important Ratios

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

	As of Dec. 31, 2010
*Current ratio	1.45
*Quick ratio	1.34
*Liabilities to assets	0.64
*Net profit margin (%)	16.74
*Return on total assets (%)	26.56
*Inventory /Turnover ×365	16 days
*Accounts receivable/Turnover ×365	35 days
*Turnover/Total assets	1.59
* Cost of goods sold/Turnover	0.70

PROFITABILITY: FAIRLY GOOD

l The turnover of SC appears good in its line.

l SC’s net profit margin is fairly good.

l SC’s return on total assets is good.

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

LIQUIDITY: AVERAGE

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

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

l The inventory of SC is maintained in an average level.

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

l SC has no short-term loan in 2010.

l SC’s turnover is in an average level, 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 low.

Overall financial condition of the SC: Fairly Good.

SC is considered large-sized in its line with fairly good financial conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.26
UK Pound	1	Rs.86.80
Euro	1	Rs.69.63

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.