MIRA INFORM REPORT

Report No. :	354482
Report Date :	18.12.2015

IDENTIFICATION DETAILS

Name :	pamica electric material (hubei) co., ltd.
Registered Office :	No. 226, Yuli Avenue, Tongcheng County, Hubei Province 437400 Pr
Country :	China
Financials (as on) :	31.12.2014
Date of Incorporation :	16.10.2000
Com. Reg. No.:	422324000001000
Legal Form :	Limited Liabilities Company
Line of Business :	Manufacturing and selling electrical insulation materials; exporting self-made products and technology; importing raw and auxiliary materials, instruments, machinery and equipment, spare parts and technology used for self-production (excluding the goods and technology prohibited or limited by the country); processing with imported materials, processing with imported samples, assembling with imported parts, and compensation trade in agreement.
No. of Employees :	700

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. 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 & address

pamica electric material (hubei) co., ltd.

NO. 226, YULI AVENUE, TONGCHENG COUNTY

HUBEI PROVINCE 437400 PR CHINA

TEL: 86 (0) 715-4352570-825/4337383 FAX: 86 (0) 715-4354338

EXECUTIVE SUMMARY

INCORPORATION DATE : oct. 16, 2000

REGISTRATION NO. : 422324000001000

REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY

CHIEF EXECUTIVE : Ms. chen shanshan (chairman)

STAFF STRENGTH : 700

REGISTERED CAPITAL : cny 30,486,000

BUSINESS LINE : manufacturing, selling

TURNOVER : cny 280,780,000 (AS OF DEC. 31, 2014)

EQUITIES : CNY 109,070,000 (AS OF DEC. 31, 2014)

PAYMENT : average

MARKET CONDITION : competitive

FINANCIAL CONDITION : stable

OPERATIONAL TREND : steady

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.4574 = 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

Note: SC’s correct name should be the heading one.

SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Oct. 16, 2000.

Company Status: Limited liabilities co.

This form of business in PR China is defined as a legal person. No more than fifty shareholders contribute its registered capital jointly. Shareholders bear limited liability to the extent of shareholding, and the co. is liable for its debts only to extent of its total assets. The characteristics of this form of co. are as follows:

Upon the establishment of the co., an investment certificate is issued to the each of shareholders.

The board of directors is comprised of three to thirteen members.

The minimum registered capital for a co. is CNY 30,000.

Shareholders may take their capital contributions in cash or by means of tangible assets or intangible assets such as industrial property and non-patented technology.

Cash contributed by all shareholders must account for at least 30% of the registered capital.

Existing shareholders have pre-exemption right to purchase shares of the co. offered for sale by the other shareholders and to subscribe for the newly increased registered capital of the co.

SC’s registered business scope includes manufacturing and selling electrical insulation materials; exporting self-made products and technology; importing raw and auxiliary materials, instruments, machinery and equipment, spare parts and technology used for self-production (excluding the goods and technology prohibited or limited by the country); processing with imported materials, processing with imported samples, assembling with imported parts, and compensation trade in agreement.

SC is mainly engaged in manufacturing and selling electrical insulation materials.

Ms. Chen Shanshan has been the legal representative and chairman of SC since 2014.

SC is known to have approx. 700 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Tongcheng County. Our checks reveal that SC owns the total premise about 150,000 square meters.

Note: According to SC’s employee, the heading address (No. 226, Yuli Avenue) was renamed as No. 16, Yuli Avenue after the new regional planning.

http://www.pamica.com.cn The design is professional and the content is well organized. At present the web is both in Chinese and English versions.

Email: sales@pamica.com.cn

SC has obtained ISO14001:2004, ISO9001:2000 certificates, etc.

"PAMICA" is a famous trademark in Hubei, China's brand-name products, its products are certified by UL CE TUV and conformed with IEC, BS, RoHS, REACH EU directives and regulations.

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
2007-12	Registration No.	4223001010135	Present one
Unknown	Registered capital	CNY 28,386,000	Present amount
2014-6-13	Legal representative	Pan Dujiang	Present one

Organization Code: 753436079

Credibility Code: 91421222753436079M

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

MAIN SHAREHOLDERS:

Name Amount (CNY’0000) % of Shareholding

Pan Xiebao 447.54 14.68

Xu Shuangyan 131.83 4.32

Fang Jiutao 131.83 4.32

Wei Jinping 354.72 11.64

Pan Yanfang 354.72 11.64

Deng Bingnan 354.72 11.64

Chen Shanshan 993.26 32.58

Xu Jun 279.98 9.18

Legal representative and Chairman:

Ms. Chen Shanshan, ID# 42232419830928XXXX, born in 1983. She is currently responsible for the overall management of SC.

Working Experience(s):

From 2014 to present Working in SC as legal representative and chairman

General Manager:

Li Jingbo is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as general manager

Also working in Hubei Pamica Electrical Co., Ltd. (literal translation) as director.

Director:

Deng Bingnan

SC is mainly engaged in manufacturing and selling electrical insulation materials.

SC’s products mainly include:

Mica Tape for Cable

Mica Slip-Plan

Mica Sheet for Heater

Mica Plate for Furnace

Mica Sheet for Commutator

Mica Paper

Mica Parts

SC sources its materials 60% from domestic market, and 40% from overseas market; SC sells its products 85% to overseas market, mainly Europe, America, and Southeast Asia, and 15% in domestic 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.

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

TRADEMARKS & PATENTS

Registration No.	11074953	11075008	11075017
Registration Date	2013-10-28	2013-10-28	2013-10-28
Trademark Design

Partners: according to SC’s website

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

SC is known to invest in the following companies:

Hubei Pamica Electrical Co., Ltd. (literal translation)

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

Registration no.: 422300000042470

Legal representative: Pan Dujiang

Incorporation date: 2015-3-19

Shenzhen Pu An Hua Electric Co., Ltd. (in Chinese pinyin)

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

Registration no.: 440306104870790

Legal representative: Fang Dingfu

Incorporation date: 2010-8-12

Tongli Fiberglass (Tongcheng) Co., Ltd.

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

Registration no.: 422324000006604

Legal representative: Pan Dujiang

Incorporation date: 2011-4-29

http://tctlbx.com/

Tongcheng Pamica Real Estate Co., Ltd. (literal translation)

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

Registration no.: 422324000009140

Legal representative: Pan Xiebao

Incorporation date: 2012-10-18

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.

Agricultural Bank of China

AC#：17-700201040002112

Relationship: Normal.

Financial Summary

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

Unit: CNY’000

	As of Dec. 31, 2014
Total assets	187,400
	=========
Total liabilities	78,330
Equities	109,070
	--------------
Total liabilities & equities	187,400
	=========
Turnover	280,780
Profits	24,170

Note: SC’s management refused to release its detailed financial reports.

Important Ratios

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

	as of Dec. 31, 2014
*Liabilities to assets	0.42
*Net profit margin (%)	8.61
*Return on total assets (%)	12.90
*Turnover/Total assets	1.50

PROFITABILITY: FAIRLY GOOD

The turnover of SC appears fairly good in its line.

SC’s net profit margin is fairly good.

SC’s return on total assets is good.

SC’s turnover is in an average 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 medium-sized in its line with stable financial conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.65
UK Pound	1	Rs.99.61
Euro	1	Rs.72.33
CNY	1	Rs.10.25

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

INFORMATION DETAILS

Analysis Done by :	HEE
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.