MIRA INFORM REPORT

Report Date :

22.12.2014

IDENTIFICATION DETAILS

Name :	Chint Electric Co., Ltd.
Registered Office :	No. 1255, Wenhe Road, Songjiang District, Shanghai 201614 PR
Country :	China
Financials (as on) :	30.06.2014
Date of Incorporation :	02.01.2004
Com. Reg. No.:	310000000092831
Legal Form :	Shares Limited Company
Line of Business :	Subject is engaged in designing, manufacturing and selling electric machinery and apparatus.
No. of Employees :	3,500

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 :	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 and Address

Chint Electric Co., Ltd.

No. 1255, Wenhe Road, Songjiang District, Shanghai 201614 PR China

TEL: 86 (0) 21-67777777

FAX: 86 (0) 21-67777999

EXECUTIVE SUMMARY

Date of Registration : janUARY 2, 2004

REGISTRATION NO. : 310000000092831

LEGAL FORM : SHARES LIMITED COMPANY

CHIEF EXECUTIVE : nan cunhui (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 850,000,000

staff : 3,500

BUSINESS CATEGORY : DESIGNING & manufacturing & TRADING

REVENUE : CNY 1,671,283,000 (JAN. 1, 2014 TO JUN. 30, 2014)

EQUITIES : CNY 1,312,674,000 (AS OF JUN. 30, 2014)

WEBSITE : www.chintelectric.com

E-MAIL : zyin@chint.com

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : stable

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.21 = USD 1

Adopted abbreviations (as follows)

SC - Subject Company (the company inquired by you)

N/A – Not available

CNY – China Yuan Ren Min Bi

OPERATIONAL TREND & GENERAL REPUTATION

This section aims at indicating the relative positions of SC in respect of its operational trend & general reputation

Operational Trend:- General Reputation:-

Upward Excellent

Steady Good

Fairly Steady Fairly Good

Ordinary Average

Fair Fair

Stagnant Detrimental

Downward Not known

Not known Not yet be determined

Not yet be determined

LEGAL STATUS & HISTORY

SC was established as a shares limited company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 310000000092831 on January 2, 2004.

SC’s Organization Code Certificate No.: 75791202-8

SC’s Tax No.: 310227757912028

SC’s registered capital: CNY 850,000,000

SC’s paid-in capital: CNY 850,000,000

Registration Change Record:-

Date	Change of Contents	Before the change	After the change
2006-02-20	Registered Capital	CNY 350,000,000	CNY 500,000,000
2006-09-20	Registered Capital	CNY 500,000,000	CNY 700,000,000
2007-06-10	Registered Capital	CNY 700,000,000	CNY 850,000,000
	Shareholder (s) (% of Shareholding)	Chint Group Corp. 99% Nan Cunhui 0.25% Gao Yiqiang 0.25% Nan Cunfei 0.25% Zhu Xinmin 0.25%	Chint Group Corp. 40.77% Nan Cunhui 0.10% Gao Yiqiang 0.10% Nan Cunfei 0.10% Zhu Xinmin 0.10% Other Shareholders 58.83%
--	Registered No.	3100001007199	310000000092831

Current Co search indicates SC’s shareholders & chief executives are as follows:-

Name of Shareholder (s)	% of Shareholding
Chint Group Corp.	40.77
Nan Cunhui	0.10
Gao Yiqiang	0.10
Nan Cunfei	0.10
Zhu Xinmin	0.10
Other Shareholders	58.83

SC’s Chief Executives:-

Position	Name
Legal Representative and Chairman	Nan Cunhui
Vice Chairman	Nan Cunfei
General Manager	Chen Chengjian
Director	Lin Bosheng
	Song Danpi
	Li Jinbiao
	Gao Yiqiang
Supervisor	Jin Linyong
	Guan Houjun

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Chint Group Corp. 40.77

Nan Cunhui 0.10

Gao Yiqiang 0.10

Nan Cunfei 0.10

Zhu Xinmin 0.10

Other Shareholders 58.83

Chint Group Corp.

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

Date of Registration: March 15, 1994

Registration No.: 330000000070201

Legal Form: Shares Limited Company

Chief Executive: Nan Cunhui

Registered Capital: CNY 1,500,000,000

MANAGEMENT

Nan Cunhui, Legal Representative and Chairman

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

Ø Gender: M

Ø Nationality: China

Ø Age: 51

Ø ID# 330323196307090958

Ø Qualification: University

Ø Working experience (s):

At present, working in SC as chairman

Also working in Chint Group Corp., Zhejiang Chint Electrics Co., Ltd., Chint Solar (Zhejiang) Co., Ltd., Chint Group Complete Set Equipment Manufacturing Co. Ltd. and Zhejiang Chint Auto Parts Industries Co., Ltd as legal representative

Activities and honors: (website sources)

l 2008-2013, congressmen of 11^th NPC (National People’s Congress)

l Board member, the Standing Committee of All-China Federation of Industry & Commerce.

l 2008, awarded the World Executive Award for his outstanding achievements on 2008 World Entrepreneurs Summit, which is the top award in domestic Economic, Management and Business.

l 2007, Outstanding Contribution to Charity of China.

l 2007, China Manufacturing Industry 10 Innovation Leadership (Chinese Academy of Sciences).

l 2006, one of final candidates of China Business Leaders Award 2006.

Nan Cunfei, Vice Chairman

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

Ø Gender: M

Ø Nationality: China

Ø Age: 45

Ø Qualification: University

Ø Working experience (s):

At present, working in SC as vice chairman, also working in Chint Group Corp. as CEO

Chen Chengjian, General Manager

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

Ø Gender: M

Ø Nationality: China

Ø Qualification: University

Ø Working experience (s):

At present, working in SC as general manager

Director

-----------

Lin Bosheng

Song Danpi

Li Jinbiao

Gao Yiqiang

Supervisor

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

Jin Linyong

Guan Houjun

BUSINESS OPERATION

SC’s registered business scope includes designing, manufacturing, installing, selling, researching and repairing electric machinery and apparatus; technical consulting services; exporting its products and technology, importing raw materials, instruments and meters, machinery equipment, parts and technology needed in the manufacture, excluding the items limited or forbidden by the state(with permit if needed).

SC is mainly engaged in designing, manufacturing and selling electric machinery and apparatus.

SC’s products mainly include: power transformer, distribution transformer, dry type transformer, reactor, etc.

SC sources its materials 80% from domestic market, and 20% from overseas market. SC sells 70% of its products in domestic market, and 30% to 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 Check, T/T, L/C and Credit of 30-60 days.

*Major Customers*

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

Global Engineering Group Inc.

Equisales Associates Inc.

Comercial De Energeticos S.A.

Ceym Compaia Electrica Y Mecanica S.A.

Industria Pyade Cobre S.A.

*Major suppliers*

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

Anji Nanfang Copper Co., Ltd.

Fujian Sanmax Metal Co., Ltd.

Hengtong Group Co., Ltd.

Shanghai Baosteel Steel Products Trading Co., Ltd.

Shanghai Guole Steel Trade Co., Ltd.

Shanghai Sino-Perfect Co., Ltd.

Staff & Office:

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

SC is known to have approx. 3,500 staff at present.

SC owns an area as its operating office and factory, but the detailed information is unknown.

RELATED COMPANY

SC is known to have 6 subsidiaries at present:

n Chint Group Complete Equipment Manufacturing Co., Ltd.

n Zhejiang Chint Electric Cable Co., Ltd.

n Shanghai Chint Automation Software System Co., Ltd.

n Shanghai Chint Electric Power Engineering Company Limited

n Shanghai Zhengsailian Equity Investment Co., Ltd.

n AnHui Hedian Chint Electrical Complete Equipment Manufacturing Co., Ltd.

SC is known to have the following offices:

Kenya

Add: Kita garden Suguta Road, P.O. Box 18435, Nairobi 00500, Kenya

Mobile: 00254 712 415 333

E-mail: huyw@chint.com chinthuyw@gmail.com

Russia

Россия, г. Москва, ул.Рублёвское шоссе 26, корпус 1. квартира 229

Моб: 007+915 096 9551 007+915 096 9551

E-mail: hjian@chint.com , huangj777@yahoo.com.cn

UAE

Add: Room 1005, M.M Towers, AL MAKTOUM Road, Plot No. 353, P.O. BOX 94918, Dubai

Mobile: 00971 4 2233457

E-mail: pengx@chint.com

PAYMENT

Overall payment appraisal:

( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.

BANKING

Basic Bank:

China Construction Bank Shanghai Branch Songjiang Sub-branch

AC#: 31001937710059666777

FINANCIALS

Financial Summary

Unit: CNY’000	As of Jun. 30, 2014
Total assets	4,589,472
	-------------
Total liabilities	3,276,798
Equities	1,312,674
	-------------
Unit: CNY’000	Jan. 1, 2014 to Jun. 30, 2014
Revenue	1,671,283
Profits	27,475

Important Ratios

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

	As of Jun. 30, 2014
*Liabilities to assets	0.71
*Net profit margin (%)	1.64
*Return on total assets (%)	0.60
*Revenue / Total assets	0.36

FINANCIAL COMMENTS

PROFITABILITY: AVERAGE

l The revenue of SC appears good in its line.

l SC’s net profit margin is average.

l SC’s return on total assets is average.

LIQUIDITY: FAIR

l SC’s revenue is in a fair level, comparing with the size of its total assets.

LEVERAGE: FAIRLY GOOD

l The debt ratio of SC is average.

l The risk for SC to go bankrupt is low.

Overall financial condition of the SC: Stable.

CONCLUSIONS

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.07
UK Pound	1	Rs.98.73
Euro	1	Rs.77.46

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	NIT

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.