MIRA INFORM REPORT

Report No. :	318221
Report Date :	23.04.2015

IDENTIFICATION DETAILS

Name :	schindler (china) elevator Co., Ltd.
Registered Office :	No. 40, Wenshui Road, Zhabei District, Shanghai, 200072 Pr
Country :	China
Financials (as on) :	31.12.2013
Date of Incorporation :	05.07.1980
Com. Reg. No.:	310000400000033
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Manufacturing, Installing, Repairing and Selling of Elevators.
No. of Employees :	Not Available

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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. In 2014 the People’s Bank of China (PBOC) doubled 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 2014 stood as the largest economy in the world, surpassing the US that year 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; 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including legislation allowing local governments to issue bonds, further opening several state-owned enterprises to private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.

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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including legislation allowing local governments to issue bonds, further opening several state-owned enterprises to private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.

Source : CIA

Company Name and address

schindler (china) elevator Co., Ltd.

No. 40, wenshui road, Zhabei District, shanghai, 200072 PR CHINA

TEL: 86 (0) 21-56650991 FAX: 86 (0) 21-56032562

EXECUTIVE SUMMARY

INCORPORATION DATE : july 5, 1980

REGISTRATION NO. : 310000400000033

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : MR. zheng ruiheng (legal representative)

STAFF STRENGTH : N/A

REGISTERED CAPITAL : CNY 941,400,145

BUSINESS LINE : MANUFACTURING, INSTALLING, repairing & TRADING

TURNOVER : CNY 5,131,080,000 (AS OF DEC. 31, 2013)

EQUITIES : CNY 553,030,000 (AS OF DEC. 31, 2013)

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : well-known

EXCHANGE RATE : CNY 6.197 = 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 wholly foreign-owned enterprise at local Administration for industry & commerce (AIC - the official body of issuing and renewing business license) on July 5, 1980.

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 manufacturing, developing, installing, maintaining, repairing and transforming elevator, escalator, moving pavement and its accessory equipment and components, design new products and developing related technology; selling the above products with the brand of “Xunda”; importing and exporting of elevator, escalator, moving pavement and related products with the brand of “Xunda”; wholesaling, importing and exporting different sorts of elevator, escalator, moving pavement components and accessory equipment. (with permit if needed)

SC is mainly engaged in manufacturing, installing, repairing and selling elevators.

Mr. Zheng Ruiheng is legal representative and chairman of SC at present.

SC’s management declined to disclose its staff strength.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Shanghai. The detailed information of the premise is unspecified.

SC has another factory: No. 555, Xingshun Road, Jiading District, Shanghai

http://www.schindler.com.cn the website belongs to Schindler, and it includes the information on SC. The design is professional and the content is well organized. At present it is in Chinese, English and other versions.

Email: N/A

No significant events or changes were found during our checks with the local Administration for Industry and Commerce.

Organization Code: 625901263

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

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

MAIN SHAREHOLDERS:

Name % of Shareholding

Schindler Holding AG (Switzerland) 100

Schindler Holding AG is a Switzerland-based holding Company that specializes in the production of escalators, elevators and moving walks. The Company operates globally in two main divisions: Elevators and Escalators, and ALSO. The Elevators and Escalators division provides a range of elevators for different applications, including freight and special elevators, high-rise elevators, residential elevators and commercial elevators. It also offers commercial and public transport escalators, as well as inclined and horizontal moving walks.

l Legal representative and Chairman:

Mr. Zheng Ruiheng, ID # 11010219550815****, born in 1955. He 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 Fujian Schindler Elevator Co., Ltd. as legal representative

l Directors:

Thomas Oetterli

Julien sonnerat

l Supervisor:

Julien Marchon

SC is mainly engaged in manufacturing, installing, repairing and selling elevators.

SC’s products mainly include: elevator, escalator, moving walks, etc.

SC sources its materials 70% from domestic market, and 30% 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.

Note: SC’s management declined to release its customer and supplier details.

Branches:

Schindler (China) Elevator Co., Ltd. Shanghai Branch

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

Registered no.: 310000500061077

Principal: Xu Changxing

Date of incorporation: 1998-11-06

Schindler (China) Elevator Co., Ltd. Shandong Branch

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

Registered no.: 370200505008031

Principal: Yu Tao

Date of incorporation: 2000-11-18

Schindler (China) Elevator Co., Ltd. Nanjing Branch

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

Registered no.: 320100500000078

Principal: Xu Chunjian

Date of incorporation: 1991-12-10

Schindler (China) Elevator Co., Ltd. Suzhou Branch

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

Registered no.: 320500500000659

Principal: Wang Kai

Date of incorporation: 1997-04-18

Schindler (China) Elevator Co., Ltd. Wuxi Branch

Schindler (China) Elevator Co., Ltd. Suzhou Manufacturing Branch

Etc.

Related companies:

Fujian Schindler Elevator Co., Ltd.

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

Registered no.: 350000100024034

Legal representative: Zheng Ruiheng

Date of incorporation: 1999-5-19

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.

SC’s management declined to release its bank details.

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2012	As of Dec. 31, 2013
Cash & bank	802,029	2,357,252
Trading financial assets	926	2,823
Bills receivable	7,164	30,985
Inventory	464,276	1,272,708
Accounts receivable	872,611	1,658,596
Other Accounts receivable	39,304	71,000
Advances to suppliers	44,970	118,509
Other current assets	40,484	32,796
	------------------	------------------
Current assets	2,271,764	5,544,669
Fixed assets net value	37,720	162,086
Projects under construction	104,183	292,282
Long-term investment	293,293	370,132
Intangible assets	126,555	159,516
Other assets	111,611	377,500
	------------------	------------------
Total assets	2,945,126	6,906,185
	=============	=============
Short loans	0	0
Accounts payable	1,214,196	1,480,677
Advance from customers	1,071,461	2,646,392
Other Accounts payable	132,626	255,751
Accrued payroll	136,751	254,419
Taxes payable	24,849	52,765
Non-current liabilities due within one year	3,855	9,181
Other current liabilities	725,251	1,627,332
	------------------	------------------
Current liabilities	3,308,989	6,326,517
Long term liabilities	0	26,638
	------------------	------------------
Total liabilities	3,308,989	6,353,155
Equities	-363,863	553,030
	------------------	------------------
Total liabilities & equities	2,945,126	6,906,185
	=============	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2012	As of Dec. 31, 2013
Turnover	3,838,510	5,131,080
Cost of goods sold	3,232,147	4,109,172
Taxes and additional of main operation	23,340	32,185
Sales expense	291,495	418,025
Management expense	383,385	537,894
Finance expense	-3,630	-34,514
Asset impairment loss	14,748	14,425
Profits on the changes in fair value	622	-2,702
Investment income	52,554	83,504
Non-operating income	8,574	5,274
Non-operating expense	4,729	6,330
Profit before tax	-45,954	133,639
Less: profit tax	5,127	18,868
Profits	-51,081	114,771

Important Ratios

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

	As of Dec. 31, 2012	As of Dec. 31, 2013
*Current ratio	0.69	0.88
*Quick ratio	0.55	0.68
*Liabilities to assets	1.12	0.92
*Net profit margin (%)	-1.33	2.24
*Return on total assets (%)	-1.73	1.66
*Inventory /Turnover ×365	45 days	91 days
*Accounts receivable/Turnover ×365	83 days	118 days
*Turnover/Total assets	1.30	0.74
* Cost of goods sold/Turnover	0.84	0.80

PROFITABILITY: AVERAGE

l The turnover of SC appears good in its line, and increasing in 2013.

l SC’s net profit margin remains in a fair level in 2012, and average in 2013.

l SC’s return on total assets remains in a fair level in 2012, and average in 2013.

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

LIQUIDITY: FAIR

l The current ratio of SC is maintained in a fair level in both years.

l SC’s quick ratio is maintained in a fair level in both years.

l The inventory of SC appears average.

l The accounts receivable of SC appears fairly large.

l There is no short-term loan in both years.

l SC’s turnover is in a fair level 2013, comparing with the size of its total assets.

LEVERAGE: FAIR

l The debt ratio of SC is too high in 2012, and high in 2013.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly stable.

SC is considered an old-established business with favorable background.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.82
UK Pound	1	Rs.93.85
Euro	1	Rs.67.59

INFORMATION DETAILS

Analysis Done by :	KAR
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.