MIRA INFORM REPORT

Report Date :

09.04.2011

IDENTIFICATION DETAILS

Name :	LION FORESTRY LTD.
Registered Office :	Room 4305, 43/F., Tower One, Lippo Centre, 89 Queensway, Admiralty
Country :	Hong Kong
Date of Incorporation :	17.01.2003
Com. Reg. No.:	33301465
Legal Form :	Private Limited Company
Line of Business :	Importer and Exporter of Timber, log, etc.

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 :	Regular
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, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
Hong Kong	a2	a2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name

LION FORESTRY LTD.

Company ADDRESS

Room 4305, 43/F., Tower One, Lippo Centre, 89 Queensway, Admiralty, Hong Kong.

PHONE: 2523 5112, 2523 5116

FAX: 2537 1066

E-MAIL: lionforest@biznetvigator.com

MANAGEMENT

General Manager: Mr. Jain Sudeep

SUMMARY

Incorporated on: 17th January, 2003.

Organization: Private Limited Company.

Capital: Nominal: HK$5,000,000.00

Issued: HK$5,000,000.00

Business Category: Importer and Exporter.

Employees: 4.

Main Dealing Banker: UCO Bank, Hong Kong Branch.

Banking Relation: Satisfactory.

COMPANY ADDRESS

Registered Head Office:-

Room 4305, 43/F., Tower One, Lippo Centre, 89 Queensway, Admiralty, Hong Kong.

BUSINESS REGISTRATION NUMBER

33301465

COMPANY FILE NUMBER

0829902

MANAGEMENT

General Manager: Mr. Jain Sudeep

CAPITAL

Nominal Share Capital: HK$5,000,000.00 (Divided into 5,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$5,000,000.00

SHAREHOLDERS

(As per registry dated 17-01-2011)

Name		No. of shares
Mohammed Azim ALI		4,999,999
Jaideep SHARMA		1
		––––––––
	Total:	5,000,000 =======

DIRECTORS

(As per registry dated 17-01-2011)

Name (Nationality)	Address
Mohammed Azim ALI	Pulau Li Hua, Lane 3, House #25B, 96000 Sibu, Sarawak, Malaysia.
Anil Kumar SHARMA	U A-57/5981 Jawahar Nagar, Kamla Nagar, Delhi, India.

SECRETARY

(As per registry dated 17-01-2011)

Name	Address	Co. No.
Karalon Ltd.	12/F., The Lee Gardens, 33 Hysan Avenue, Causeway Bay, Hong Kong.	0155628

HISTORY

The subject was incorporated on 17th January, 2003 as a private limited liability company under the Hong Kong Companies Ordinance.

Apart from these, neither material change nor amendment has been ever traced and noted.

OPERATIONS

Activities: Importer and Exporter.

Lines: Timber, log, etc.

Employees: 4.

Commodities Imported: Malaysia, other Asian countries, etc.

Markets: Hong Kong, China, other Asian countries, etc.

Terms/Sales: L/C or as per contracted.

Terms/Buying: As per contracted.

MEMBERSHIP

The Hong Kong General Chamber of Commerce, Hong Kong.
[Membership No. HKL0494]

FINANCIAL INFORMATION

Nominal Share Capital: HK$5,000,000.00 (Divided into 5,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$5,000,000.00

Mortgage or Charge: (See attachment)

Profit or Loss: Making a small profit every year.

Condition: Keeping in a normal manner.

Facilities: Making active use of general banking facilities.

Payment: Met trade commitments as contracted.

Commercial Morality: Satisfactory.

Bankers:-

UCO Bank, Hong Kong Branch.

Bangkok Bank Public Co. Ltd., Hong Kong Branch.

Canara Bank, Hong Kong Branch.

Punjab National Bank, Hong Kong Branch.

Union Bank of India, Hong Kong Branch.

Standing: Normal.

GENERAL

Lion Forestry Ltd. is almost wholly-owned by Mr. Mohammed Azim Ali. Ali is a Canada passport holder and current residing in Sarawak, Malaysia. Minor shareholder Mr. Jaideep Sharma is an Indian residing in India.

The directors of the subject are Mohammed Azim Ali and Anil Kumar Sharma. The latter is an India passport holder and residing in Delhi, India.

Incorporated in Hong Kong in January 2003, the subject is trading in timber and log (mainly round timber logs and sawn timber). Most of the commodities are imported from Malaysia. Prime markets are Hong Kong, China, India, other Asian countries, etc. It is likely that Ali, who is residing in Sarawak, is responsible for the sourcing of timber in Sarawak as the region is rich in forestry resources. Jaideep Sharma who is in India is responsible for the distribution of timber in the country. It seems that the subject has got affiliated companies both in Malaysia and India. Business is rather active.

The subject’s total amount outstanding registered with the Companies Registry of Hong Kong as at mid-January, 2010 amounted to HK$161.3 million. It got loans from bank in December 2009. The subject has got banking facilities from Punjab National Bank by depositing a sum of US$2 million in the Bank. However, as at mid-January, 2011, the subject did not have any outstanding.

The subject’s business is chiefly handled by Mr. Jain Sudeep who is an Indian. He is also the General Manager of the subject.

The subject is a member of The Hong Kong General Chamber of Commerce, Hong Kong. It joined in as a member in 2006.

On the whole, having a history of over eight years and two months in Hong Kong, the subject is considered good for normal business engagements.

COURT CASES: None per our.

MORTGAGE OR CHARGE

Date	Particulars	Amount
23-11-2004	Instrument: Undertaking Relating to Deposits Property: Receipt No.: EM 1280 Date: 20-11-2004 Amount: US$500,000.00 Mortgagee: UCO Bank, Hong Kong Branch.	Liabilities
26-04-2005	Instrument: Undertaking Relating to Deposits Property: Receipt No.: EM 1434 Value Date: 26-04-2005 Due Date: 26-04-2006 Amount: US$500,000.00 Mortgagee: UCO Bank, Hong Kong Branch.	Liabilities
22-11-2005	Instrument: Charge Over Deposit Property: Deposit for US$300,000.00 evidenced by Confirmation of Deposit No. TDCC502117B00 Mortgagee: Bangkok Bank Public Co. Ltd., Hong Kong Branch.	To secure the due performance of all obligations in respect of banking facilities
11-04-2007	Instrument: Undertaking Relating to Deposits Property: Receipt No. Value Date Due Date Amount 2005 EM 517 21-02-2007 21-05-2007 US$547,899.53 2005 EM 632 31-03-2007 26-04-2007 US$518,250.00 A/C No. 35005 Mortgagee: UCO Bank, Hong Kong Branch.	Liabilities
25-10-2007	Instrument: Undertaking Relating to Deposits Property: Receipt No. Value Date Due Date Amount 2005 EM 519 21-08-2007 21-11-2007 US$562,457.21 2005 EM 633 26-04-2007 28-04-2007 US$545,310.57 2007 EM 151 05-11-2007 04-02-2008 US$400,000.00 A/C No. 35005 Mortgagee: UCO Bank, Hong Kong Branch.	Liabilities
23-03-2009	Instrument: Undertaking Relating to Deposits Property: Rate of Maturity Receipt No. Date Amount Interest Date 2009 FD 37 1 20-03-2009 US$400,000.00 1.22% 18-06-2009 2009 FD 38 1 20-03-2009 US$500,000.00 1.22% 18-06-2009 Mortgagee: Canara Bank, Hong Kong Branch.	Liabilities
18-12-2009	Instrument: Charge on Deposit to secure the Depositor’s Obligations Property: A sum of US$2,000,000.00 currently represented or evidenced by a certificate of deposit dated as follows:- Deposit Dated Bearing No. Amount 03-11-2009 7140000037 US$ 750,000.00 05-11-2009 7141000796 US$ 210,000.00 05-11-2009 7141000794 US$ 150,000.00 11-11-2009 7141000798 US$ 890,000.00 –––––––––––––– US$2,000,000.00 ============= Mortgagee: Punjab National Bank, Hong Kong Branch.	As a continuing security for the payment and discharge of the Secured Obligations
30-03-2010	Instrument: Undertaking Relating to Deposits Property: Receipt No.: 2010 EM 5 Date of Receipt: 30-03-2010 Due Date: 29-06-2010 Amount: US$1,000,000.00 Mortgagee: UCO Bank, Hong Kong Branch.	Liabilities
30-03-2010	Instrument: Charge on Deposit Property: A sum of US$1,500,000.00 currently represented or evidenced by a certificate of deposit dated 22-03-2010 bearing number 000013010000443 Mortgagee: Union Bank of India, Hong Kong Branch.	All moneys

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.04
UK Pound	1	Rs.72.02
Euro	1	Rs.63.40

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

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.