MIRA INFORM REPORT

Report Date :

17.12.2014

IDENTIFICATION DETAILS

Name :	CHINA FOMA (GROUP) CO., LTD.
Registered Office :	Shiji Xingyuan Building, No. 20, Anyuan Road, Chaoyang District, Beijing, 100029 Pr
Country :	China
Financials (as on) :	30.06.2013
Date of Incorporation :	21.04.1984
Com. Reg. No.:	100000000001847
Legal Form :	One-Person Limited Liability Company
Line of Business :	· Engaged in manufacturing and selling construction machinery, agricultural machinery, environmental protection machinery, woodworking machinery, forestation and timber cutting machinery and special equipment, internal-combustion engine and mating machinery, motorcycle engine, motorcycles, other special vehicle, woodworking cutting tools, hand tools, man-made panels; selling timber, furniture, other wooden articles and automobiles; vehicle modification; import and export business; domestic and international project contracting; equipment installation, technology service and technology consulting relative to the above business (if needed with permit). · engaged in investment and management in its subsidiaries, and international trade · Subject product ranges includes Loaders, Road Rollers, Motor Graders, Construction Machinery and Equipments, Man-Made Panels, Forestry Machinery, Motorcycle Engine & Motorcycles as well as Wood Based Panel Machinery.
No of Employees :	Not Available [We tried to confirm the number of employees but no one is ready to part any information from the company management.]

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 :	Good
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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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, growth of the private sector, development of stock markets and a modern banking system, 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 considered important to "economic security," explicitly looking to foster globally competitive industries. After keeping its currency tightly linked to the US dollar for years, in July 2005 China 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 and expanded the daily trading band within which the RMB is permitted to fluctuate. 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 2013 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 consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (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. Several factors are converging to slow China's growth, including debt overhang from its credit-fueled stimulus program, industrial overcapacity, inefficient allocation of capital by state-owned banks, and the slow recovery of China's trading partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated at the Communist Party's "Third Plenum" meeting in November 2013, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent in the future on fixed investments, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources.

Source : CIA

Company name & address

China Foma (Group) Co., Ltd.

SHIJI XINGYUAN BUILDING, NO. 20, ANYUAN ROAD,

CHAOYANG DISTRICT, BEIJING, 100029 PR CHINA

TEL: 86 (0) 10-84898622 FAX: 86 (0) 10-84898421

EXECUTIVE SUMMARY

INCORPORATION DATE : APR. 21, 1984

REGISTRATION NO. : 100000000001847

REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY

CHIEF EXECUTIVE : MR. LIU QUN (chairman)

STAFF STRENGTH : N/A

REGISTERED CAPITAL : CNY 929,117,036.6

BUSINESS LINE : investment and management, TRADE

TURNOVER : CNY 1,122,210,000 (JAN. 1~JUN. 30 OF 2013)

EQUITIES : CNY 1,410,030,000 (AS OF JUN. 30 OF 2013)

PAYMENT : No Complaints

MARKET CONDITION : competitive

FINANCIAL CONDITION : fairly STABLE

OPERATIONAL TREND : steady

GENERAL REPUTATION : well known

EXCHANGE RATE : CNY 6.193 = 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 State-owned enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Apr. 21, 1984 and has been under present ownership since Aug. 5, 2008.

Company Status: One-person Limited Liability Company

Single person LLC refers to a limited liability company set up by only one natural person or legal person as the single shareholder of it.

The minimum registered capital of Single person LLC is CNY100,000. The shareholder’s capital contributes, as set out by the articles of associations should be a lump-sum payment in full.

One natural person can only invest in and set up one limited liability company, which is not permitted to invest in and set up a new Single person LLC.

As to any one-person limited liability company, the sole-investor nature of the natural person or legal person shall be indicated in the registration documents of the company and shall be indicated in the business license thereof as well.

The regulation of Single person LLC should be set up by the shareholder

The regulation of Single person LLC has no shareholder meeting.

SC’s registered business scope includes manufacturing and selling construction machinery, agricultural machinery, environmental protection machinery, woodworking machinery, forestation and timber cutting machinery and special equipment, internal-combustion engine and mating machinery, motorcycle engine, motorcycles, other special vehicle, woodworking cutting tools, hand tools, man-made panels; selling timber, furniture, other wooden articles and automobiles; vehicle modification; import and export business; domestic and international project contracting; equipment installation, technology service and technology consulting relative to the above business (if needed with permit).

SC is mainly engaged in investment and management in its subsidiaries, and international trade.

Mr. Liu Qun is the legal representative, chairman and general manager of SC at present.

SC’s employee’s information is unavailable at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Beijing. SC’s accountant refused to release the detailed information of the area.

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

Email: chinafoma@chinafomna.com

The predecessor of SC was Forestry Machinery Company of State Forestry Administry.

Changes of its registered information:

Date of change	Item	Before the change	After the change
1996-10-15	Legal form	State-owned enterprise	Limited liabilities company
1999-12-14	Legal form	Limited liabilities company	Sole state-owned enterprise
2005-08-08	Legal representative	Jiang Zuhui	Li Yanjiang
2006-11-13	Chinese Name	福马林业机械集团有限公司	Present one
2008-08-05	Legal representative	Li Yanjiang	Wu Peiguo
	Legal form	Sole state-owned enterprise	One-person limited liability company
	Registered capital	CNY 300,000,000	CNY 700,000,000
2009-08-27	Registered capital	CNY 700,000,000	CNY 702,000,000
Unknown	Legal representative	Wu Peiguo	Present one
	Registered capital	CNY 702,000,000	CNY 855,350,000

Note: SC changed its registered capital to the present amount, but we could not obtain the detailed changes.

Subject passed the annual inspection of 2012 with Administration for Industry & Commerce.

Organization Code: 100001844

MAIN SHAREHOLDER:

Name % of Shareholding

China National Machinery Industry Corporation 100

China National Machinery Industry Corporation (SINOMACH) is a large scale, state-owned enterprise group, which has the most diversified business coverage, a complete business chain, and the strongest R&D capabilities in China’s machinery industry.

Legal representative: Ren Hongbin

Registration No.: 100000000008032

Registered capital: CNY 13,000,000,000

Website: http://www.sinomach.com.cn/

Tel.: 010-82688888

Fax: 010-82688811

Address: No. 3, Danleng Street, Haidian District, Beijing

Legal representative, Chairman and General Manager:

Mr. Liu Qun is currently responsible for the overall and daily management of SC.

Working Experience(s):

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

Director:

Kong Luoyuan

Ma Qisheng

Lu Haimin

Cao Wanjin

Supervisor:

Wang Jun

Peng Xintian

Han Xiaojun

SC is mainly engaged in investment and management in its subsidiaries, and international trade.

SC’s products mainly include: Loaders, Road Rollers, Motor Graders, Construction Machinery and Equipments, Man-Made Panels, Forestry Machinery, Motorcycle Engine & Motorcycles as well as Wood Based Panel Machinery.

SC sources its materials 90% from domestic market and 10% from overseas market. SC sells 60% of its products in domestic market, and 40% of its products to overseas market, mainly to America, France, and Europe.

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 declined to release its major clients and suppliers.

TRADEMARKS & PATENTS

Registration No.: 8061722

Registration Date: 2011-3-7

Trademark Design:

Registration No.: 8061750

Registration Date: 2011-4-28

Trademark Design:

Registration No.: 8061801

Registration Date: 2011-2-14

Trademark Design:

SC is known to invest in the following companies at present:

· Changlin Company Limited

· Linhai Co., Ltd.

· Jiangsu Linhai Power Machinery Group Corporation

· Suzhou Sufoma Machinery Co., Ltd.

· Zhenjiang Zhongfoma Machinery Co., Ltd.

· China Foma Forestry Machinery Shanghai Co., Ltd.

Etc.

Overall payment appraisal:

( ) Excellent ( ) Good (X) No Complaints ( ) 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.

Industrial and Commercial Bank of China Hepingli Office

AC#：N/A

Relationship: Normal.

Financial Summary

Unit: CNY’000

	As of Dec. 31, 2012	As of Jun. 30, 2013
Total assets	2,765,140	2,768,500
Total liabilities	1,367,410	1,358,470
Equities	1,397,730	1,410,030
	===========	===========
	As of Dec. 31, 2012	Jan. 1~ Jun. 30, 2013
Turnover	2,988,730	1,122,210
Profits	32,200	14,420

Note: We did not find SC’s detailed financial reports.

Important Ratios

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

	As of Dec. 31, 2012	As of Jun. 30, 2013
*Liabilities to assets	0.49	0.49
*Net profit margin (%)	1.08	1.28
*Return on total assets (%)	1.16	0.52
*Turnover/Total assets	1.08	0.41

PROFITABILITY: AVERAGE

l The turnover of SC appears good in its line.

l SC’s net profit margin is average.

l SC’s return on total assets is average.

l SC’s turnover is in an average level, comparing with the size of its total assets.

LEVERAGE: FAIRLY GOOD

l The debt ratio of SC is low.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly stable.

SC is well-known in its industry with a long development history.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.41
UK Pound	1	Rs.99.30
Euro	1	Rs.79.00

INFORMATION DETAILS

Analysis Done by :	DIV
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.