MIRA INFORM REPORT

Report Date :

09.10.2013

IDENTIFICATION DETAILS

Name :	ATLAS COPCO (WUXI) COMPRESSOR CO., LTD.

Registered Office :	No. 22 Changjiang Road, Hi-New Tech. Industry Dev. Zone, Wuxi, Jiangsu Province, 214028 Pr

Country :	China

Date of Incorporation :	09.08.1994

Com. Reg. No.:	320200400005286

Legal Form :	Wholly Foreign-Owned Enterprise

Line of Business :	Subject is engaged in manufacturing and selling compressors.

No. of Employees :	563

RATING & COMMENTS

MIRA’s Rating :

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

Status :	Satisfactory
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,2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

China

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

ATLAS COPCO (WUXI) COMPRESSOR CO., LTD.

NO. 22 CHANGJIANG ROAD, HI-NEW TECH. INDUSTRY DEV. ZONE, WUXI, JIANGSU PROVINCE, 214028 PR CHINA

TEL: 86 (0) 510-85210977/85212456/81814571/85220727 FAX: 86 (0) 510-85211410

EXECUTIVE SUMMARY

INCORPORATION DATE : AUG. 9, 1994

REGISTRATION NO. : 320200400005286

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : MR. LYBAERT CHRISTIAAN GERMAIN RICHARD (CHAIRMAN)

STAFF STRENGTH : 563

REGISTERED CAPITAL : USD 44,200,000

BUSINESS LINE : MANUFACTURING and 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 6.121= 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 wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license)

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 general business: manufacturing air compressors, turbo-compressors, natural gas compressors, process gas compressors, marine air compressors, generator and its auxiliary equipment; operating leasing service for the above products, (operating period of operating leasing service 30 years only); wholesale, commission agency (excluding auction), import and export of the above products (excluding state trading, import and export quota license, export quota bidding and export license of special management of commodities).

SC is mainly engaged in manufacturing and selling compressors.

Mr. Lybaert Christiaan Germain Richard has been legal representative and chairman of SC since 2010.

SC is known to have approx. 563 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 Wuxi. Our checks reveal that SC owns the total premise about 70,000 square meters.

http://www.atlascopco.com It is the website of Atlas Copco Group. The design is professional and the content is well organized. At present it is in Chinese and English versions.

Tax Registration No.: 320200607913359

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
2006-12	Company name	Wuxi Atlas Copco Compressor Co., Ltd.	Atlas Copco (Wuxi) Compressor Co., Ltd.
2008	Registration number	003397	Present one
2008	Registered capital	USD 23,000,000	USD 27,200,000
2010-5	Legal representative	Edward Jones	Lybaert Christiaan Germain Richard
Unknown	Registered capital	USD 27,200,000	Present amount

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

MAIN SHAREHOLDERS:

Name % of Shareholding

Atlas Copco (China) Investment Co., Ltd. (Sweden) 100

Registration no.: 310000400187768

Registered capital: USD 70,500,000

Legal rep.: Thomas Kung

Legal form: Wholly foreign-owned enterprise

Add: 8/F Zhongchuang Building, No. 819 West Nanjing Road, Shanghai

Tel: 86 021-62551331

Fax: 86 021-62551406

Legal Representative and Chairman:

Mr. Lybaert Christiaan Germain Richard, Belgian, Passport # EH048225, born in 1963. He is currently responsible for the overall management of SC.

Working Experience(s):

From 2010 to present Working in SC as legal representative and chairman

General Manager:

Mr. George Guiaux, Swedish, # EB293277, in his 40’s with university education. He is currently responsible for the daily management of SC.

Working Experience(s):

From 2005 to present Working in SC as general manager

Directors:

………......

Thomas Kung # H0836472600

Duthu Toernblom Liselotte Birgit Marga, # 82153576

Supervisor:

……………

Magnus Johansson, # 52161647

SC is mainly engaged in manufacturing and selling compressors.

SC’s products mainly include: compressors.

SC sources its materials 90% from domestic market, and 10% from the overseas market, mainly European countries. SC sells 70% of its products in domestic market, and 30% to the overseas market, mainly American and European countries.

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 suppliers and clients.

Atlas Copco (Nanjing) Construction and Mining Equipment Ltd.

Atlas Copco (Shanghai) Trading Co., Ltd.

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

Incorporation date: 1999-2-3

Registration no.: 310115400058651

Registered capital: USD 1,500,000

Legal rep.: Thomas Kung 龚元相

Legal form: Wholly foreign-owned enterprise

Atlas Copco (Shanghai) Process Equipment Co., Ltd.

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

Incorporation date: 2008-9-18

Registration no.: 310000400583884

Registered capital: CNY 38,400,000

Legal rep.: Udo Junk

Legal form: Wholly foreign-owned enterprise

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 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.

China Construction Bank Wuxi Development Zone Sub-branch

AC#：32001615736050017105

Relationship: Normal.

SC’s management declined to release any financial information.

SC is considered medium-sized in its line with a development history of 19 years. Taking into consideration of SC’s general performance, reputation as well as market conditions we would rate SC as an average credit risk company.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.69
UK Pound	1	Rs.99.20
Euro	1	Rs.83.69

INFORMATION DETAILS

Report Prepared by :

SDA

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.

MIRA INFORM REPORT

Company name and address

EXECUTIVE SUMMARY

Unit