MIRA INFORM REPORT

Report No. :	337151
Report Date :	20.08.2015

IDENTIFICATION DETAILS

Name :	Bain Medical Equipment (Guangzhou) Co., Ltd.
Registered Office :	No. 10 Juncheng Road, Eastern Area, Guangzhou Economic & Technological Development District (Getdd), Guangzhou City, Guangdong Province, 510760 Pr
Country :	China
Financials (as on) :	31.12.2014
Date of Incorporation :	13.06.2003
Com. Reg. No.:	440108400003754
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Manufacture of plastic film, plastic pellets; medical research and experimental development; natural science research and test development; sales of own products (excluding those prohibited by the state; if needed with permit); chemical engineering research service; manufacture of medical diagnosis, monitoring and treatment equipment.
No. of Employees :	450

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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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; (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 2014 more than 274 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 passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.

Source : CIA

Company Name & address

Bain Medical Equipment (Guangzhou) Co., Ltd.

No. 10 Juncheng Road, Eastern Area, Guangzhou

Economic & Technological Development District (GETDD),

Guangzhou City, Guangdong Province, 510760 PR China

TEL: 86 (0) 20-82265249 FAX: 86 (0) 20-32067500

EXECUTIVE SUMMARY

INCORPORATION DATE : June 13, 2003

REGISTRATION NO. : 440108400003754

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : Mr. Yuan jian (Legal representative)

STAFF STRENGTH : 450

REGISTERED CAPITAL : USD 13,000,000

BUSINESS LINE : Manufacture and sales

TURNOVER : CNY 588,760,000 (AS OF DEC. 31, 2014)

EQUITIES : CNY 233,720,000 (AS OF DEC. 31, 2014)

PAYMENT : AVERAGE

MARKET CONDITION : competitive

FINANCIAL CONDITION : Fairly good

OPERATIONAL TREND : steady

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.3907 = 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 June 13, 2003.

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 manufacture of plastic film, plastic pellets; medical research and experimental development; natural science research and test development; sales of own products (excluding those prohibited by the state; if needed with permit); chemical engineering research service; manufacture of medical diagnosis, monitoring and treatment equipment.

SC is mainly engaged in manufacturing and selling medical equipment.

Mr. Yuan Jian is legal representative, chairman of SC at present.

SC is known to have approx. 450 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the economic & technological development zone of Guangzhou. Detailed premise information is not available at present.

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

Email: sales@baingz.com

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

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
2009-12-10	Registration No.	100895	Present one
2015-6-24	Registered Capital	usd 10,000,000

Organization Code: 749934606

SC has got the certificate ISO9001.

MAIN SHAREHOLDERS:

Name % of Shareholding

Medi-Top (China) Industry Company Limited (Hong Kong) 100

CR No.: 0847481

Company Type: Private company limited by shares

Date of Incorporation: 19-MAY-2003

Active Status: Live

Legal Representative, Chairman:

Mr. Yuan Jian, with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative, chairman.

Directors:

Liao Lei

Chen Xiaolan

SC is mainly engaged in manufacturing and selling medical equipment.

SC’s products mainly include: hollow fiber dialyzer polyethersulfone (PES), tubing sets for hemodialysis and A.V. fistula needle set.

SC sources its materials 50% from domestic market, and 50% from overseas market. SC sells 50% of its products in domestic market, and 50% 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 T/T, L/C and Credit of 30-60 days.

Note: SC declined to release its major suppliers and clients.

SC is not known to have any subsidiary at present.

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 accountant refused to release the bank details.

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2014
Cash & bank	41,830
Inventory	119,670
Accounts receivable	63,700
Advances to suppliers	56,210
Short term investment	22,050
Prepaid expenses	3,210
Other receivables	104,810
	------------------
Current assets	411,480
Fixed assets net value	79,690
Projects under construction	3,070
Intangible and other assets	4,150
	------------------
Total assets	498,390
	===========
Short loan	32,200
Accounts payable	22,630
Advances from customers	126,600
Taxes payable	3,530
Salary payable	38,280
Welfare expenses payable	1,330
Accrued expenses	23,530
Other fees payable	220
Other Accounts payable	16,350
	------------------
Current liabilities	264,670
Long-term liability	0
	------------------
Total liabilities	264,670
Equities	233,720
	------------------
Total liabilities & equities	498,390
	===========

Income Statement

Unit: CNY’000

	As of Dec. 31, 2014
Turnover	588,760
Cost of goods sold	453,040
Taxes and additional of main operation	3,630
Sales expense	17,590
Management expense	59,070
Finance expense	-15,080
Investment income	730
Subsidy income	4,890
Non-operating income	360
Non-operating expense	420
Profit from other operations	-230
Profit before tax	75,840
Less: profit tax	12,490
Profits	63,350

Important Ratios

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

	As of Dec. 31, 2014
*Current ratio	1.55
*Quick ratio	1.10
*Liabilities to assets	0.53
*Net profit margin (%)	10.76
*Return on total assets (%)	12.71
*Inventory /Turnover ×365	75 days
*Accounts receivable/Turnover ×365	40 days
*Turnover/Total assets	1.18
* Cost of goods sold/Turnover	0.77

PROFITABILITY: GOOD

The turnover of SC appears fairly good in its line.

SC’s net profit margin is good.

SC’s return on total assets is good.

SC’s cost of goods sold is average.

LIQUIDITY: AVERAGE

The current ratio of SC is maintained in a normal level

SC’s quick ratio is maintained in a normal level.

The inventory of SC appears average.

The accounts receivable of SC appears average.

SC’s short loans are average.

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

LEVERAGE: AVERAGE

The debt ratio of SC is average.

The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly good.

SC is considered medium-sized in its line with fairly good financial conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.25
UK Pound	1	Rs.102.25
Euro	1	Rs.72.20

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	TPT

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.