MIRA INFORM REPORT

Report Date :

08.11.2013

IDENTIFICATION DETAILS

Name :	OTIS ELEVATOR (CHINA) COMPANY LIMITED
Registered Office :	NO. 71 Of Avenue 9, Economic And Technological Development Area, Tianjin, 300457 Pr
Country :	China
Date of Incorporation :	December 2005
Com. Reg. No.:	120000400078397
Legal Form :	Chinese-Foreign Equity Joint Venture Enterprise
Line of Business :	Engaged in designing, manufacturing, installing and selling various kinds of elevators.
No. of Employees :	2,000

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
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^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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, creation of a diversified banking system, development of stock markets, rapid growth of the private sector, 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 it considers important to "economic security," explicitly looking to foster globally competitive national champions. After keeping its currency tightly linked to the US dollar for years, in July 2005 China revalued its currency by 2.1% against the US dollar and 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. 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 2012 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of the US; China is second to the US in the value of services it produces. 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 demand; (b) sustaining adequate job growth for tens of millions of migrants and new entrants to the work force; (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. In 2010-11, China faced high inflation resulting largely from its credit-fueled stimulus program. Some tightening measures appear to have controlled inflation, but GDP growth consequently slowed to under 8% for 2012. An economic slowdown in Europe contributed to China's, and is expected to further drag Chinese growth in 2013. Debt overhang from the stimulus program, particularly among local governments, and a property price bubble challenge policy makers currently. The government's 12th Five-Year Plan, adopted in March 2011, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent on exports in the future. However, China has made only marginal progress toward these rebalancing goals

Source : CIA

Company name and address

OTIS ELEVATOR (CHINA) COMPANY LIMITED

NO. 71 OF AVENUE 9, ECONOMIC AND TECHNOLOGICAL DEVELOPMENT AREA, TIANJIN, 300457 PR CHINA

TEL: 86 (0) 22-28101188

FAX: 86 (0) 22-28301256

EXECUTIVE SUMMARY

INCORPORATION DATE : DECEMBER, 2005

REGISTRATION NO. : 120000400078397

REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE

CHIEF EXECUTIVE : MR. CAO LIZHI (CHAIRMAN)

STAFF STRENGTH : 2,000

REGISTERED CAPITAL : CNY 200,000,000

BUSINESS LINE : MANUFACTURING & SELLING

TURNOVER : N/A

EQUITIES : N/A

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : WELL KNOWN

EXCHANGE RATE : CNY 6.10 = 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 initially registered as a wholly foreign-owned enterprise at local Administration for industry & commerce (AIC - the official body of issuing and renewing business license), and has been under present legal form since 2013.

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, developing, designing, producing, processing, assembling, popularizing, selling, installing, repairing, maintaining and transforming cargo and passenger elevators, escalators, moving walks, power dumbwaiter and related transmitters, screen doors, power operated doors and control cabinets, gantry crane, steering hand wheel and other numerically-controlled systems, alternating current servo motors, constant magnetism synchronous motors, stator-rotor motors and stamped steels and other new-style electromechanical components, bumpers (including hydraulic presser buffers), other related products and components used in residential & commercial buildings, hospitals, shopping malls, exhibition halls, ports, subways, railway stations, airports, other buildings and public places; import, export, wholesale, retail and commission agent (excluding auction) of similar products.

SC is mainly engaged in designing, manufacturing, installing and selling various kinds of elevators.

Mr. Cao Lizhi is legal representative and chairman of SC at present.

SC is known to have approx. 2,000 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the development zone of Tianjin. Our checks reveal that SC owns the total premise about 12,540 square meters.

http://www.otisworldwide.com/ The website belongs to OTIS, the design is professional and the content is well organized. At present it is in Chinese, English and other versions.

Changes of its registered information:

Date of change	Item	Before the change	After the change
Unknown	Registration no.	018019	Present one
	Legal representative	Li Xiutao
	Company’s name	Tianjin Otis Elevator Co., Ltd.
2013	Legal Form	Wholly foreign-owned enterprise

See below for SC as executive party (defendant).

Executed Party	SC
Court	Wuhan City Huangbei District People's Court
Date of Case	2011-12-30
Case Number	(2012) 00184
Claim Amount	RMB 18,465
Case Status	Completed

Remark: Due to the lack of information, we are unable to provide the cause of action, judgment or other information.

Note: The present shareholders information of SC is not available in local AIC at present.

l Legal Representative and Chairman:

Mr. Cao Lizhi is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative and chairman.

Also working in China Tianjin Otis Elevator Co., Ltd. as legal representative, etc.

l Vice chairman:

Mr. Li Chaobao is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as vice chairman.

l Directors:

Thomas Rodney Vining

Michael F.Griffin

Giuliano Di Francesco

Philip Anthony Lilue

SC is mainly engaged in designing, manufacturing, installing and selling various kinds of elevators.

SC’s products mainly include: tractive elevator, hydraulic elevator, escalator and its related parts.

SC sources its materials 80% from domestic market and 20% from the overseas market. SC sells 10% of its products to overseas market and 90% in domestic market.

The buying terms of SC include Check, L/C, 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.

Note: SC’s management refused to release its supplier and client details.

Otis Elevator (Tianjin) International
Trading Co., Ltd.

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

Registration No.: 120000400078372

Incorporation Date: 2002-9-24

Chairman: Michael Francis Griffin

China Tianjin Otis Elevator Co., Ltd.

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

Registration No.: 120000400067224

Incorporation Date: 1984-12-1

Chairman: Cao Lizhi

Etc.

Branches:

Otis Elevator (China) Company Limited Tianjin Branch

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

Registration No.: 120000400047044

Incorporation Date: 2006-6-16

Principal: He Bing

Otis Elevator (China) Company Limited Tianjin Binhai New District Branch

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

Registration No.: 120116400009979

Incorporation Date: 2013-6-3

Principal: Guan Su

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.

Bank of China Tianjin Branch

AC#：800100208508093001

Relationship: Normal.

SC’s management declined to release any financial information.

SC is considered large-sized in its line with 8 years operation history. Taking into consideration of SC’s market conditions and development history, we would rate SC as an average credit risk company. Credit up to moderate amount may be considered.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.57
UK Pound	1	Rs.100.62
Euro	1	Rs.84.62

INFORMATION DETAILS

Report Prepared by :

PDT

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.