MIRA INFORM REPORT

Report No. :	327333
Report Date :	20.06.2015

IDENTIFICATION DETAILS

Name :	HIGHLY INTERNATIONAL TRADING (SHANGHAI) CO., LTD.
Registered Office :	Room 116, S & T Building, No. 888 Ningqiao Road, Jinqiao Export Processing Zone, Pudong New Area, Shanghai, 201206 Pr
Country :	China
Financials (as on) :	31.12.2012
Date of Incorporation :	28.10.2003
Com. Reg. No.:	310115000798418
Legal Form :	Limited Liabilities Company
Line of Business :	Subject includes importing and exporting goods and technologies; transit trade; selling refrigeration equipment and accessories, hardware household electrical appliances, electromechanical equipment and accessories, auto spare parts, hardware accessories and plastic products; consulting services of related business; trade and agent service within free trade zone; storage business (excluding the hazard products).
No. of Employee :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
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 and address

HIGHLY INTERNATIONAL TRADING (SHANGHAI) CO., LTD.

ROOM 116, S & T BUILDING, NO. 888 NINGQIAO ROAD, JINQIAO EXPORT PROCESSING ZONE, PUDONG NEW AREA, SHANGHAI, 201206 PR CHINA

TEL: 86 (0) 21-58547777/58547925

FAX: 86 (0) 21-58995961

EXECUTIVE SUMMARY

INCORPORATION DATE : oct. 28, 2003c

REGISTRATION NO. : 310115000798418

REGISTERED LEGAL FORM : Limited liabilities company

chief executive : MR. Feng guodong (CHAIRMAN)

STAFF STRENGTH : N/A

REGISTERED CAPITAL : CNY 20,000,000

BUSINESS LINE : TRADING

TURNOVER : CNY 371,745,000 (AS OF DEC. 31, 2012)

EQUITIES : CNY 9,590,000 (AS OF DEC. 31, 2012)

PAYMENT : AVERAGE

MARKET CONDITION : average

FINANCIAL CONDITION : Fairly stable

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : average

EXCHANGE RATE : CNY 6.21= 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

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

SC was registered as a limited liabilities co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Oct. 28, 2003.

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 importing and exporting goods and technologies; transit trade; selling refrigeration equipment and accessories, hardware household electrical appliances, electromechanical equipment and accessories, auto spare parts, hardware accessories and plastic products; consulting services of related business; trade and agent service within free trade zone; storage business (excluding the hazard products). Any project that needs to be approved by law can only be carried out after getting approval by relevant authorities.

SC is mainly engaged in international trade.

Mr. Feng Guodong 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 in Jinqiao Export Processing Zone of Shanghai. Detailed information of the premise is unknown.

http://www.highly.cc/ The website belongs to Shanghai Highly (Group) Co., Ltd., and it includes the introduction on SC and its related companies. The design is professional and the content is well organized. At present it is both in Chinese and English versions.

E-mail: chengxx@highly.cc

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
2014-4-1	Company name	Shanghai Highly Group Trading Co., Ltd.	Present one
Unknown	Reg. no.	3101151018751	Present one

Organization Code: 75572738X

See below for SC as executive party (defendant).

Executed Party	Shanghai Highly Group Trading Co., Ltd.
Court	Shanghai Pudong New Area People's Court
Date of Case	Jan. 4, 2008
Case Number	(2008) 00448
Claim Amount	RMB 5,772.5
Case Status	Completed

Executed Party	Shanghai Highly Group Trading Co., Ltd.
Court	Shanghai Pudong New Area People's Court
Date of Case	Dec. 7, 2007
Case Number	(2007) 08896
Claim Amount	RMB 792,530.94
Case Status	Completed

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

MAIN SHAREHOLDERS:

Name % of Shareholding

Shanghai Highly (Group) Co., Ltd. 80

Shanghai Shiny Investments Co., Ltd. 20

Shanghai Highly (Group) Co., Ltd.

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

Shanghai Highly (Group) Co., Ltd. is a listed company in Shanghai Stock Exchange Market and its stock code is: 600619 and 900910.

HIGHLY has seven invested enterprises such as Shanghai Hitachi Electrical Appliances Co., Ltd., etc. and its main products include home air conditioning compressors, dehumidifier compressors, heat pump-specific compressors, special refrigeration equipments, casting, commercial freezers, automobile starters, etc.

Incorporation Date : March 26, 1993

Registration No. : 310000400040612

Registered Legal Form : Shares Limited Company

Chief Executive : Mr. Shen Jianfang (Chairman)

Registered Capital : CNY 667,744,115

Add: No. 888 Ningqiao Road, Jinqiao Export Processing Zone, Pudong New Area, Shanghai, 201206 Pr China

Tel: 86 (0) 21-58547777

Fax: 86 (0) 21-50326960

Email: heartfelt@highly.cc

Web: http://www.highly.cc/

Shanghai Shiny Investments Co., Ltd.

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

Registration no.: 310115000770569

Registered capital: CNY 100,800,000

Legal representative: Yu Jianping

Date of incorporation: 2003-6-23

Telephone: 021-50935566

Fax: 021-50938337

Web: http://www.sino-shiny.com.cn/

Legal representative and chairman:

Mr. Feng Guodong, born in 1959, senior engineer, with Master’s Degree, 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 Shanghai Highly (Group) Co., Ltd. as vice general manager, and in Shanghai Hitachi Electrical Appliances Co., Ltd. as director

General manager:

Mr. Cui Rongsheng is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as general manager

Directors:

Liu Huicheng

Zhuang Hua

Miao Gen

Cui Rongsheng

Supervisor:

Lu Shenqun

Li Li

SC is mainly engaged in international trade.

SC’s products mainly include: refrigeration equipment and spare parts, household electrical appliances

Trademarks & patents: N/A

SC sources its materials 50% from domestic market, and 50% from overseas market. SC sells 30% of its products in domestic market, and 70% 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 refused to release its main suppliers and clients.

Shanghai Hitachi Electrical Appliances Co., Ltd.

Shanghai Jinxuan Property Management Co., Ltd.

Shanghai Highly Special Refrigeration Equipment Co., Ltd.

Shanghai Highly Realnen Environmental Technology Co. Ltd.

Shanghai Highly Nakano Refrigerators Co., Ltd.

Hitachi Highly Automobile Products (Shanghai) Co., Ltd.

Hitachi Highly Automobile Systems (Shanghai) Co., Ltd.

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 declined to release its banking details.

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2011	As of Dec. 31, 2012
Cash & bank	15,200	9,350
Inventory	4,990	7,910
Bills receivable	10,200	18,600
Accounts receivable	16,290	28,750
Other Accounts receivable	10,370	1,110
Advances to suppliers	25,460	13,030
Other current assets	0	0
	------------------	------------------
Current assets	82,510	78,750
Fixed assets net value	110	340
Long-term investment	0	0
Intangible and other assets	0	0
	------------------	------------------
Total assets	82,620	79,090
	=============	=============
Short loans	12,000	12,000
Accounts payable	30,410	21,910
Advance from customers	15,480	11,890
Other Accounts payable	9,730	14,610
Notes payable	5,890	6,440
Accrued payroll	1,110	1,260
Taxes payable	540	1,390
Other current liabilities	0	0
	------------------	------------------
Current liabilities	75,160	69,500
Long term liabilities	0	0
	------------------	------------------
Total liabilities	75,160	69,500
Equities	7,460	9,590
	------------------	------------------
Total liabilities & equities	82,620	79,090
	=============	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2012
Turnover	371,745
Cost of goods sold	363,555
Taxes and additional of main operation	258
Sales expense	1,627
Management expense	1,326
Finance expense	107
Profit before tax	4,870
Less: profit tax	1,250
Profits	3,620

Note: SC’s management declined to release its latest financial reports.

Important Ratios

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

	As of Dec. 31, 2011	As of Dec. 31, 2012
*Current ratio	1.10	1.13
*Quick ratio	1.03	1.02
*Liabilities to assets	0.91	0.88
*Net profit margin (%)	/	0.97
*Return on total assets (%)	/	4.58
*Inventory /Turnover ×365	/	8 days
*Accounts receivable/Turnover ×365	/	29 days
*Turnover/Total assets	/	4.70
* Cost of goods sold/Turnover	/	0.98

PROFITABILITY: AVERAGE

The turnover of SC appears fairly good in 2012.

SC’s net profit margin is average in 2012.

SC’s return on total assets is average in 2012.

SC’s cost of goods sold is high in 2012, comparing with its turnover.

LIQUIDITY: AVERAGE

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

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

The inventory of SC is maintained in an average level in both years.

The accounts receivable of SC is maintained in an average level in both years.

SC’s short-term loan appears fairly large in both years.

SC’s turnover is in a fairly good level in 2012, comparing with the size of its total assets.

LEVERAGE: FAIR

The debt ratio of SC is high.

The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly stable.

SC has developed for 12 years with fairly stable financial conditions. The large amount of short-term loan could be a threat to SC’s financial condition.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.82
UK Pound	1	Rs.101.26
Euro	1	Rs.72.36

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	ANK

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.