MIRA INFORM REPORT

Report No. :	351454
Report Date :	01.12.2015

IDENTIFICATION DETAILS

Name :	WHIRLPOOL (CHINA) CO., LTD.
Registered Office :	L-2 North, High-Tech Industrial Development Zone, Hefei City, Anhui Province, 230088 Pr
Country :	China
Financials (as on) :	30.09.2015
Date of Incorporation :	22.03.1994
Com. Reg. No.:	340100400002170
Legal Form :	Shares limited co.
Line of Business :	Manufacturing, sales, service, and storage of washing machine, refrigerator, microwave oven, bedet, air purifier, and other related products, electronic program-controller, clutch, motor, controller; sales and service of freezer, cooler, cleaning machine, dryer, lighting, lamps and lanterns, smoke lampblack machine, kitchen burning gas, cooker, alexipharmic ark, dishwasher, electric steam oven and kitchen appliance.
No. of Employee :	3,900

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	--

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. 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 for the first time in modern history. Still, China's per capita income is below the world average.

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 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 also 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 and address

WHIRLPOOL (CHINA) CO., LTD.

L-2 NORTH, HIGH-TECH INDUSTRIAL DEVELOPMENT ZONE, HEFEI CITY,

ANHUI PROVINCE, 230088 PR CHINA

TEL: 86 (0) 551-65338028 FAX: 86 (0) 551-65320313

EXECUTIVE SUMMARY

INCORPORATION DATE : March 22, 1994

REGISTRATION NO. : 340100400002170

REGISTERED LEGAL FORM : SHARES LIMITED CO.

CHIEF EXECUTIVE : MR. JIN YOUHUA (LEGAL REPRESENTATIVE)

STAFF STRENGTH : 3,900

REGISTERED CAPITAL : CNY 766,439,000

BUSINESS LINE : MANUFACTURING AND TRADING

TURNOVER : CNY 4,282,452,000 (JAN. 1 TO SEP. 30, 2015)

EQUITIES : CNY 4,412,311,000 (AS OF SEP. 30, 2015)

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.3922= 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 Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on March 22, 1994 and has been under the present legal form since 2000.

Company Status: Shares limited co.

This form of business in PR China is defined as a legal person. Its registered capital is divided into shares of equal par value and the co. raises capital by issuing share certificates by promotion or by public offer. Shareholders bear limited liability to the extent of shareholding, and the co. is liable for its debts only to the extent of its total assets. The co has independent property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as follows:

The establishment of the co. requires at least two promoters and no more than 200, half of whom shall be domiciled in China.. Natural person are allowed to serve as promoters.

The minimum registered capital of a co. is CNY 5M. while that of the co. with foreign investment is CNY 5M. The total capital of a co. which propose to apply for publicly listed must be no less than CNY 30M.

The board of directors must consist of five to nineteen directors.

If the co. raises capital by public offer, the promoters must not subscribe less than 35% of the total shares. the promoters’ shares are restricted to transfer- within one year of the offer.

A state-owned enterprise that is restructured into a shares limited co. must comply with the conditions & requirements specified under the law & administrative rule.

SC’s registered business scope includes: manufacturing, sales, service, and storage of washing machine, refrigerator, microwave oven, bedet, air purifier, and other related products, electronic program-controller, clutch, motor, controller; sales and service of freezer, cooler, cleaning machine, dryer, lighting, lamps and lanterns, smoke lampblack machine, kitchen burning gas, cooker, alexipharmic ark, dishwasher, electric steam oven and kitchen appliance. (With permit if needed)

SC is mainly engaged in manufacturing and trading of various household appliances.

Mr. Jin Youhua (金友华) is legal representative, president and chairman of SC at present.

SC is known to have approx. 3,900 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the high-tech industrial development zone of Hefei. Our checks reveal that SC owns the total premise, but the gross area is unspecified.

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

E-mail: fangbin@whirlpool-china.com

See below for SC as executive party (defendant).

Executed Party	Hefei Rongshida Sanyo Electric Co., Ltd. (SC’s former name)
Court	Anhui Province Hefei High & New Technology Industrial Development Zone People’s Court
Date of Case	March 29, 2010
Case Number	(2010) 00141
Claim Amount	CNY 12,000
Case Status	Completed

Executed Party	Hefei Rongshida Sanyo Electric Co., Ltd. (SC’s former name)
Court	Tianjin City Hebei District People’s Court
Date of Case	February 28, 2011
Case Number	(2011) 00363
Claim Amount	CNY 39,199.72
Case Status	Completed

Executed Party	Hefei Rongshida Sanyo Electric Co., Ltd. (SC’s former name)
Court	Anhui Province Hefei High & New Technology Industrial Development Zone People’s Court
Date of Case	February 27, 2012
Case Number	(2012) 00188
Claim Amount	CNY 46,494
Case Status	Completed

Executed Party	Hefei Rongshida SANYO Electric Co., Ltd. (SC’s former name)
Court	Shenyang Heping People's Court
Date of Case	May 15, 2014
Case Number	(2014) 00110
Claim Amount	RMB 8,000

Remark: Due to the lack of information, we are unable to provide the cause of action, judgment or other information.

SC is a listed company in Shanghai Stock Exchange Market with the code of 600983.

Changes of its registered information:

Date of change	Item	Before the change	After the change
1996-8	Registered capital	USD 15,000,000	USD 26,000,000
1997-10	Company name	Hefei Sanyo Washing Machine Co., Ltd.	Hefei Sanyo Rongshida Electric Co., Ltd.
2000-3-30	Company name	Hefei Sanyo Rongshida Electric Co., Ltd.	Present name
	Legal form	Chinese-foreign equity joint venture enterprise	Shares limited co.
	Registration no.	001536	340100400002170
	Registered capital	USD 26,000,000	CNY 180,000,000
2001-6	Registered capital	CNY 180,000,000	CNY 248,000,000
2004-7	Registered capital	CNY 248,000,000	CNY 333,000,000
2010-10	Registered capital	CNY 333,000,000	CNY 532,800,000
2014-12-9	Registered capital	CNY 532,800,000	Present one
	Legal name	Hefei Rongshida SANYO Electric Co., Ltd.

Organization Code: 610307130

Tax Registration Certificate No.: 340104610307130

MAIN SHAREHOLDERS (as of Sep. 30, 2015)

Name % of Shareholding

Whirlpool (China) Investment Co., Ltd. 51

Hefei State-owned Assets Holding Co., Ltd. 23.34

China Securities Finance Corporation Limited (CSF) 2.2

ICBC Limited-Huashang Quantization Flexible Configuration 1.05

Hybrid Securities Investment Funds

Capital International, Inc. 1.02

Merrill Lynch International 0.87

Central Huijin Investment Ltd. 0.79

UBS AG 0.72

Shenzhen Peace Enterprise Annuity Collection plan (literal translation) - 0.5

China Merchants Bank Co., Ltd.

Ping An Insurance (Group) Company of China, Ltd. Enterprise Annuity Plan- 0.35

China Merchants Bank Co., Ltd.

Others 18.16

Whirlpool (China) Investment Co., Ltd.

Registered No.: 310000400415043

Incorporation date: 2005-2-23

Legal representative: Lee Ian

Hefei State-owned Assets Holding Co., Ltd.

Registered No.: 340100000226579

Incorporation date: 1996-9-26

Legal representative: Yong Fengshan

China Securities Finance Corporation Limited (CSF)

Credibility Code: 9111000058442472XT

Incorporation date: 2011-10-28

Legal representative: Nie Qingping

Web: www.csf.com.cn

Central Huijin Investment Ltd.

Registered No.: 100000000038533

Incorporation date: 2003-12-16

Legal representative: Ding Xuedong

Web: www.huijin-inv.cn

Legal representative, President and Chairman:

Mr. Jin Youhua, born in 1965, MBA, senior engineer, is currently responsible for the overall management of SC.

Working Experience(s):

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

Vice chairman:

Mr. Yong Fengshan, born in 1968, with master’s degree, senior accountant, is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as vice chairman

Vice presidents:

Mr. Zheng Dunhui, born in 1962, with technical secondary education

Mr. Zhang Rongzhong, born in 1967

Mr. Wu Cunhong, born in 1971, with bachelor degree

Mr. Amit Mohanty, born in 1974, American, with master’s degree

Mr. Huang Qiuhong, born in 1981

Mr. Zhang Zhi, born in 1970, senior engineer, with bachelor degree

Directors:

Shen Kunrong

Cao Ruohua

Sun Suming

Zhou Xuemin

Amit Mohanty

Arnab K Bagchi

Supervisors:

Zhang Yongjun

Deborah Vaughn

Leah Stark

Wang Jianjun

Lin Pingsheng

SC is mainly engaged in manufacturing and trading of various household appliances.

SC’s products mainly include: washing machine, refrigerator, microwave oven, and variable frequency motor

SC sources its materials 70% from domestic market, and 30% from overseas market, mainly Japan. SC sells 80% of its products in domestic market, and 20% to overseas market, mainly Southeast Asian market.

The buying terms of SC include 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.

Major Customers

Electrolux (China) Electric Appliance Co., Ltd.

Electrolux Sea Pte Ltd.

Mitsui-Soko Logistics

Major Suppliers

Shanghai King Harvests Co., Ltd.

Sanyo Electric Co., Ltd. (Japan)

TRADEMARKS & PATENTS:

Registration No. 12133135 12139700 8671559

Registration Date 2014-7-21 2014-08-14 2011-09-28

Trademark Design

According to SC’s website: SC’s ultimate controlling owner is the following company:

Whirlpool Corporation (America)

Stock code: WHR

SC is known to have the following related companies:

Guangdong Whirlpool Electrical Appliances Co., Ltd.

Registered No.: 440681400008773

Incorporation date: 1988-01-14

Legal representative: He Zemian

Hisense-Whirlpool (Zhejiang) Electric Appliances Co., Ltd.

Registered No.: 330000400001890

Incorporation date: 2008-11-04

Legal representative: Lee Ian

Whirlpool (Hong Kong) Limited

Registered No.: 0229575

Incorporation date: 1988-10-7

Branch:

Whirlpool (China) Co., Ltd. Shandong Branch

Whirlpool (China) Co., Ltd. Guangzhou Branch

Whirlpool (China) Co., Ltd. Shenzhen Branch

Whirlpool (China) Co., Ltd. Zhanjiang Branch

Whirlpool (China) Co., Ltd. Tianjin Branch

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.

Bank of China High-tech Zone Sub-branch

AC#: 188728746131

Relationship: Normal

Bank of Communications Hefei Nanqi Sub-branch

AC#: 341306000018170146132

Relationship: Normal

Balance Sheet

Unit: CNY’000	as of Dec. 31, 2014	As of Sep. 30, 2015
Cash & bank	2,543,490	2,212,859
Inventory	954,323	771,909
Accounts receivable	702,194	1,220,044
Advances to suppliers	56,396	78,895
Interest receivable	4,515	9,567
Other Accounts receivable	102,110	109,486
Notes receivable	1,869,641	1,381,960
Other current assets	3,542	720,263
	------------------	------------------
Current assets	6,236,211	6,504,983
Fixed assets net value	717,886	765,314
Project under construction	105,962	133,453
Intangible assets	254,140	250,814
Deferred income tax assets	71,999	73,753
Other Non-current assets	9,309	0
	------------------	------------------
Total assets	7,395,507	7,728,317
	=============	=============
Short loans	0	0
Accounts payable	1,136,847	1,074,517
Note payable	1,393,982	1,565,105
Advances from clients	227,811	96,833
Taxes payable	99,137	74,492
Other Accounts payable	206,448	288,636
Accrued payroll	109,573	106,149
	------------------	------------------
Current liabilities	3,173,798	3,205,732
Deferred income	120,269	110,274
	------------------	------------------
Total liabilities	3,294,067	3,316,006
Equities	4,101,440	4,412,311
	------------------	------------------
Total liabilities & equities	7,395,507	7,728,317
	=============	=============

Income Statement

Unit: CNY’000	as of Dec. 31, 2014	Jan. 1 to Sep. 30, 2015
Turnover	5,504,826	4,282,452
Cost of goods sold	3,728,291	2,872,291
Tax and additional of main operation	37,025	31,203
Sales expense	1,135,576	898,504
Management expense	296,732	187,106
Finance expense	-26,882	-41,986
Assets impairment loss	30,584	20,684
Investment income	5	0
Non-operating income	33,323	89,789
Non-operating expense	566	107
Profit before tax	336,262	404,332
Less: profit tax	42,638	55,139
Profits	293,624	349,193

Important Ratios

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

	As of Dec. 31, 2014	Jan. 1 to Sep. 30, 2015
*Current ratio	1.96	2.03
*Quick ratio	1.66	1.79
*Liabilities to assets	0.45	0.43
*Net profit margin (%)	5.33	8.15
*Return on total assets (%)	3.97	4.52
*Inventory /Turnover ×365	63 days	/
*Accounts receivable/Turnover ×365	47 days	/
*Turnover/Total assets	0.74	0.55
* Cost of goods sold/Turnover	0.68	0.67

PROFITABILITY: FAIRLY GOOD

The turnover of SC appears good in its line.

SC’s net profit margin is fairly good.

SC’s return on total assets is average.

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

LIQUIDITY: AVERAGE

The current ratio of SC is maintained in a normal level in 2014, and fairly good in the first three quarters of 2015.

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

The inventory of SC appears average.

The accounts receivable of SC appears average.

SC has no short-term loan.

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

LEVERAGE: AVERAGE

The debt ratio of SC is low.

The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Stable.

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.81
UK Pound	1	Rs.100.37
Euro	1	Rs.70.68
CNY	1	Rs.10.39

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TRU

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.