MIRA INFORM REPORT

Report Date :

11.08.2011

IDENTIFICATION DETAILS

Name :	MAYAR (H.K.) LTD.
Registered Office :	Room 803, 8/F., Lippo Centre, Tower 2, 89 Queensway, Admiralty
Country :	Hong Kong
Date of Incorporation :	16.09.1993
Com. Reg. No.:	17391818
Legal Form :	Private Limited Company
Line of Business :	Importer and Exporter of all kinds of newsprint paper, graphic paper, timber, soya bean, raw cashew in shells, industrial materials, sundries and native produces

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 :	Regular
Litigation :	Exists

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^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
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

MAYAR (H.K.) LTD.

ADDRESS

Room 803, 8/F., Lippo Centre, Tower 2, 89 Queensway, Admiralty, Hong Kong.

PHONE: 2850 7366, 2851 7366

FAX: 2542 2302, 2851 7423

E-MAIL: ajay@mayarhk.com

MANAGEMENT

Managing Director: Mr. Ajay Deepak

SUMMARY

Incorporated on: 16th September, 1993.

Organization: Private Limited Company.

Capital: Nominal: US$50,000,000.00

Issued: US$9,972,000.00

Business Category: Importer and Exporter; Buying Office and Regional Office.

Annual Turnover: US$200~220 million.

Employees: 14.

Main Dealing Bankers: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

Room 803, 8/F., Lippo Centre, Tower 2, 89 Queensway, Admiralty, Hong Kong.

Overseas Offices:-

Mayar (H.K) Ltd., Yangon Office
Room 703-704, Level 7, La Pyayt Wun Plaza, No. 37, Signal Pagoda Road, Dagon Township, Yangon, Myanmar.
Tel: 95-1-371374, 371375
Fax: 95-1-371376
E-mail: mayarcm@myanmar.com.mm

Mayar (H.K) Ltd., Malaysia Office
H. No. 8-A, Lane 15, Delta Estate, 96000, SIBU, Sarawak, Malaysia.
Tel: 60-84-338730
Fax: 60-84-338641
E-mail: mayarsb@streamyx.com

Parent Company:-

Mayar India Ltd., India.

Associated/Affiliated Companies:-

Mayar Group of Companies

Amar Eye Centre & Research, India.

Mannor Impex Pvt. Ltd., India.

Mayar Finance Ltd., India.

Mayar Health Resorts Ltd., India.

Mayar Infrastructure Development Pvt. Ltd., India.

Mayar Properties & Investments (Pvt.) Ltd., India.

Mayar Securities (Pvt.) Ltd., India.

Qingdao Jinhuihai International Transportation Co. Ltd., China.

Shree Cosmetics Ltd., India.

Signalize Impex (P) Ltd., India.

Sivananda Pharmaceuticals (Pvt.) Ltd., India.

V.O.U. Investment (Pvt.) Ltd., India.

etc.

BUSINESS REGISTRATION NUMBER

17391818

COMPANY FILE NUMBER

0449525

MANAGEMENT

Group Chairman & Managing Director: Mr. Ajit Kumar Sud

Director & Business Head: Mr. Ashit Sud

Managing Director: Mr. Ajay Deepak

CAPITAL

Nominal Share Capital: US$50,000,000.00 (Divided into 400,000 shares of US$125.00 each)

Issued Share Capital: US$9,972,000.00

SHAREHOLDERS

(As per registry dated 16-09-2010)

Name		No. of shares
Ajit Kumar SUD		16
Mayar India Ltd. Plot No. A, Basant Lok Community Centre, Vasant Vihar, New Delhi 110057, India.		79,744
Ajay DEEPAK		16
		––––––
	Total:	79,776 =====

DIRECTORS

(As per registry dated 16-09-2010)

Name (Nationality)	Address
Ajit Kumar SUD (Indian)	2-A, Shankra Charya Marg, Behind I.P. College, Civil Lines, Alipur Road, New Delhi-110054, India.
Ashit SUD	Flat B, 37/F., South Towers, Tower 5, 38 Bel-Air Avenue, Residence Belair, Island South, Wah Fu, Hong Kong.
Abhit SUD	2-A, Shankra Charya Marg, Behind I.P. College, Civil Lines, Alipur Road, New Delhi-110054, India.
Ajay DEEPAK	Flat E, 8/F., Block 7, City Garden, 233 Electric Road, Hong Kong.

SECRETARY

(As per registry dated 16-09-2010)

Name	Address	Co. No.
Tricor Tengis Ltd.	Level 28, Three Pacific Place, 1 Queen’s Road East, Hong Kong.	0041027

HISTORY

The subject was incorporated on 16th September, 1993 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject’s office was located at Room 1102, 11/F., The Centre Mark, 287-299 Queen’s Road Central, Hong Kong, moved to Room 604, 6/F., Lippo Centre, Tower 1, 89 Queensway, Admiralty, Hong Kong with effect from 8th February, 1999; and moved further to the present address in June 2010.

In September 2009, the subject increased its ordinary shares from 63,776 to 79,776.

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

OPERATIONS

Activities: Importer and Exporter; Buying Office and Regional Office.

Lines: All kinds of newsprint paper, graphic paper, timber, soya bean, raw cashew in shells, industrial materials, sundries and native produces.

Employees: 14.

Commodities Imported: Russia, Germany, Austria, Korea, India, etc.

Markets: Hong Kong, India and Southeast Asia.

Annual Turnover: US$200~220 million.

Terms/Sales: L/C, T/T, etc.

Terms/Buying: L/C, T/T, D/P, etc.

MEMBERSHIP

The Indian Chamber of Commerce Hong Kong, Hong Kong.

FINANCIAL INFORMATION

Nominal Share Capital: US$50,000,000.00 (Divided into 400,000 shares of US$125.00 each)

Issued Share Capital: US$9,972,000.00

Alternation of Capital:-

16-09-1993	paid up	US$ 250.00
06-09-1994	paid up	US$ 498,000.00
25-03-1997	paid up	US$ 7,473,750.00
25-09-2009	paid up	US$ 2,000,000.00
		–––––––––––––––
Total:	paid up	US$ 9,972,000.00 =============

Increases of Nominal Capital:-

From	US$ 250,000.00	to	US$ 500,000.00	on	06-09-1994
From	US$ 500,000.00	to	US$ 9,375,000.00	on	25-03-1997
From	US$9,375,000.00	to	US$50,000,000.00	on	25-09-2009

Indebtedness: US$50 million (Total amount outstanding on all mortgages and charges as per last Annual Return dated 16-09-2010)

Mortgage or Charge (since June 2008): (See attachment)

Profit & Loss: Making a small profit every year.

Condition: Keeping in an active and good condition.

Facilities: Making very active use of general banking facilities.

Payment: Met trade commitments as contracted.

Commercial Morality: Satisfactory.

Bankers:-

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

Calyon, Hong Kong Branch.

BNP Paribas, Hong Kong Branch.

Australia & New Zealand Banking Group Ltd., Hong Kong Branch/Singapore Branch.

Indian Overseas Bank, Hong Kong Branch.

Bank of Baroda (Hong Kong) Ltd., Hong Kong.

Bank of India, Hong Kong Branch.

Axis Bank Ltd., Hong Kong Branch.

Allahabad Bank, Hong Kong Branch.

UCO Bank, Hong Kong Branch.

Allahabad Bank, Hong Kong Branch.

Standing: Normal.

GENERAL

Mayar (H.K.) Ltd. was incorporated in Hong Kong in September 1993 and commenced business in June 1994. Its main holding company is Mayar India Ltd. [Mayar India] which is an India-based firm.

Located in the east of Delhi, India, Mayar India has been dealing in paper for over 50 years. The subject is an Indian company acting as a buying and regional office for Mayar India in Hong Kong.

The subject is a part of the Mayar Group, headquartered in India, with a history of over 62 years. Established in 1948, Mayar Group is a large business conglomerate having interests in paper, timber, beans, other agricultural products, iron and steel, iron ore, real estate, FMCG personal care products, infrastructure development and hospitality. It is an over US$500 million-dollar enterprise in India.

Now, the Group has set up a number of affiliated and associated companies in the world. It oversees the activities of all its offices across the world — in Hong Kong which is the subject, Malaysia, Singapore, Indonesia, Venezuela, Burma and Russia.

According to the Group, it is a “debt free company” as it believes in expanding its interests by drawing on its own resources. The Group will keep on expanding under this way.

The subject is rated as one of the largest trading company of Indian origin, with its net worth in excess of US$25 million as of 31st March, 2010. Now, its annual sales turnover ranges from US$200 to 220 million.

The subject is principally engaged in importing and exporting of standard newsprint paper and glazed newsprint paper. The suppliers are in Russia, Germany, Austria and South Korea. In order to diversify the business, the subject also has been engaged in importing and exporting of timber, agricultural products, iron ore, iron and steel, chemicals, etc. Its business has penetrated China and offices have been set up in Guangzhou, Qingdao and Beijing. Business has been expanding. The Qingdao firm is known as Qingdao Jinhuihai International Transportation Co. Ltd. The General Manager of the Qingdao firm is Mr. Qi Jianxin who is a Chinese. The Qingdao firm is responsible for the co-ordination with the newsprint mills and logistic services. Qi Jianxin has become one of the key managing personnel of the Group. He is one of the managers of the Publication Paper Division.

Besides the China offices, the subject also has set up offices in Myanmar and Malaysia.

The subject is engaged in establishing business ties between Hong Kong, India firms and the rest of the world. The subject is importing commodities form India and re-exporting to the other countries. Businesses keep on improving.

The directors of the subject are also Chief Executive Officers of the Mayar Group.

The subject is fully supported by the Mayar Group. The business of the subject is chiefly handled by Mr. Ajay Deepak who is residing in Hong Kong most of the time. He is in fact a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.

In December 2007, the subject got a litigation filed with the Hong Kong court concerning an amount due of US$358,000.

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

REMARKS

Brief information of directors:-

Mr. Ajit Kumar SUD is the Chairman and Managing Director of the Group. Born in 1946, Mr. Ajit Kumar Sud joined in the family business in 1967, a worthy inheritor of his father’s mantle, is continuing the legacy by expanding the Group in other areas like Health Resorts, Day Spas, and Development of Special Economic Zones. He is sticking firmly to the ideals that have made the Mayar a corporate global organization.

Mr. Ashit SUD is the Business Head. Born in 1979, Mr. Ashit Sud is the elder son of Mr. A.K. Sud. He is young and dynamic personality. He possesses a degree in B.Sc. (Hons), specializing in Finance and Human Resources from University of Bradford, the United Kingdom. He has got extensive training in the subject for 7 years. He joined the family business in 2000. He was part of the core team for establishing the Mayar Group’s Hospitality Venture, Health Spa at Ashok Hotel, Chanakyapuri, New Delhi in 2004. Presently he is the Business Head of the subject.

Mr. Ajay DEEPAK, M.Sc.(Physics), CAIIB is a professional from banking industry. Has over 20 years of banking experience at National and International level. His present position is Managing Director of the subject.

Court case record:-

Action Date	Case No.	Plaintiff	Defendant	Cause	Amount
06-12-2007	H1430	Ashita Impex Pvt. Ltd.	Mayar (H.K.) Ltd. and other	Money Due/Owing	US$358,000

Property information of the company:-

1. Property Location: Room 803 on 8/F. of Tower 2, Lippo Centre, 89 Queensway, Hong Kong.

Owner: Mayar (H.K.) Ltd.

Date of Purchase: n.a.

Purchased Price: n.a.

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
10-02-2010	-	Bank of India, Hong Kong Branch.	Mortgage to secure general banking facilities

2. Property Location: Flat G on 11/F. of Tower 18, South Horizons,
18 South Horizon Drive, Hong Kong.

Owner: Mayar (H.K.) Ltd.

Date of Purchase: n.a.

Purchased Price: n.a.

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
19-11-1998	-	Banque Nationale de Paris, Hong Kong Branch. [Now known as BNP Paribas]	Mortgage to secure general banking facilities

3. Property Location: Flat E on 8/F. of Block 7, City Garden, 233 Electric Road, Hong Kong.

Owner: Mayar (H.K.) Ltd.

Date of Purchase: n.a.

Purchased Price: n.a.

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
10-09-2010	-	Allahabad Bank, Hong Kong Branch.	Mortgage to secure general banking facilities

4. Property Location: Flat B on 37/F. of Tower 8 and Private Car Park No. 188 on Car Park Level 2, Residence Bel-Air, 28-38 Bel-Air Avenue, Island South, Hong Kong.

Owner: Mayar (H.K.) Ltd.

Date of Purchase: n.a.

Purchased Price: n.a.

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
30-09-2010	-	Bank of Baroda, Hong Kong Branch.	Mortgage to secure general banking facilities

MORTGAGE OR CHARGE

(Since June 2008)

Date	Particulars	Amount
07-08-2008	Instrument: Letter of Set-off and Appropriation Property: Fixed Deposit deal No. 145410 dated 28-07-2008 for US$503,133.58 of A/C No. 037130 Mortgagee: Bank of India, Hong Kong Branch.	Advances and other banking facilities
24-09-2008	Instrument: Undertaking Relating to Deposits Property: Distinctive No. of Receipt: MU 283792, MU 283793, MU283794 Date of Receipt: 09-07-2008, 09-07-2008, 09-07-2008 Amount of Deposit: US$750,000.00; US$750,000.00; US$814,867.17 Rate of Interest: 2.70%, 2.70%, 2.70% Maturity Date Shown on Receipt: 09-10-2008, 09-10-2008, 09-10-2008 Mortgagee: Indian Overseas Bank, Hong Kong Branch.	All and any liabilities
31-01-2009	Instrument: Charge on Deposit Property: A sum of US$1,690,940.96 for Account No. 911020400003162, 911020400002875, 911020400002431 and 911020400001892 Mortgagee: Axis Bank Ltd., Hong Kong Branch.	As a continuing security for the payment and discharge of the Liabilities
06-03-2009	Instrument: Obligations of the Depositor Property: Account No. 82000014 and 82100014: Amount Rate of Maturity Receipt No. Date (US$) Interest Date 2008 FD 48 2 18-10-2008 283,645.50 3.50% 18-04-2009 2008 FD 49 2 18-10-2008 96,245.92 3.50% 18-04-2009 2009 FD 50 1 18-03-2009 550,000.00 1.58% 18-09-2009 2009 FD 51 1 23-03-2009 537,000.00 0.92% 23-06-2009 Mortgagee: Allahabad Bank, Hong Kong Branch.	All moneys
12-05-2009	Instrument: Letter of Set-off and Appropriation Property: The following fixed deposit of A/C No. 037130: Deal No. Date Amount Due Date 152688 02-03-2009 US$553,010.60 02-06-2009 152690 02-03-2009 US$509,760.41 02-06-2009 153209 17-03-2009 US$ 67,493.00 17-06-2009 153210 17-03-2009 US$157,618.62 17-06-2009 153211 17-03-2009 US$110,533.69 17-06-2009 153327 19-03-2009 US$178,744.39 19-06-2009 153465 30-03-2009 US$ 67,329.07 30-06-2009 153821 08-04-2009 US$608,400.29 08-07-2009 153935 14-04-2009 US$345,168.68 14-07-2009 153936 14-04-2009 US$ 20,121.37 14-07-2009 153937 14-04-2009 US$239,687.92 14-07-2009 155123 26-05-2009 US$150,000.00 26-08-2009 Mortgagee: Bank of India, Hong Kong Branch.	Advances and other banking facilities
01-06-2009	Instrument: Undertaking Relating to Deposits Property: Receipt No.: EM 57 Date of Receipt: 29-05-2009 Due Date: 30-11-2009 Amount: US$597,412.61 Mortgagee: UCO Bank, Hong Kong Branch.	Liabilities
10-02-2010	Instrument: Mortgage Property: 343,435/1,285,159th parts or shares of and in 1,285/102,750th parts or shares of and in Inland Lot No. 8615 {Room 803 on 8/F. of Tower Two [formerly known as Peregrine Tower and before that known as EIE Tower and further before that known as Tower 1 (West Tower)] of Lippo Centre (formerly known as Bond Centre), 89 Qeuensway, Hong Kong.} Mortgagee: Bank of India, Hong Kong Branch.	Repayment of all monies obligations and liabilities in respect of general banking facilities
21-04-2010	Instrument: Memorandum Property: Distinctive No. of Receipts Date Amount Due Date 91210300003341 01-03-2010 US$662,373.17 01-06-2010 91210300003462 08-04-2010 US$196,283.69 08-07-2010 91210300003880 16-03-2010 US$125,000.00 17-06-2010 91210300003902 26-03-2010 US$157,053.04 26-04-2010 91210300003922 01-04-2010 US$600,148.67 03-05-2010 91210300003928 07-04-2010 US$166,289.53 07-07-2010 91210300003929 07-04-2010 US$ 80,000.00 07-07-2010 91210300003941 09-04-2010 US$551,815.79 10-05-2010 91210300003851 26-03-2010 HK$320,036.82 26-04-2010 91210300003559 16-11-2009 US$160,254.33 16-11-2010 91210300003590 30-11-2009 US$248,662.09 30-11-2010 91210300003648 21-12-2009 US$283,360.13 21-12-2010 91210300003679 29-12-2009 US$219,011.06 29-12-2010 91210300003699 05-01-2010 US$121,772.93 05-01-2011 Mortgagee: Bank of Baroda, Hong Kong Branch.	Loan or credit or other facilities
21-06-2010	Instrument: Undertaking Relating to Deposits Property: Receipt No.: 2010 UL 2 Date of Receipt: 03-06-2010 Due Date: 05-07-2010 Amount: HK$14,820,000.00 Mortgagee: UCO Bank, Hong Kong Branch.	Liabilities
10-09-2010	Instrument: Mortgage Property: 38/100,180th parts or shares of and in Inland Lot No. 8580 (Flat E on 8/F. of Block 7 of City Garden, 233 Electric Road, Hong Kong.) Mortgagee: Allahabad Bank, Hong Kong Branch.	All moneys
30-09-2010	Instrument: Mortgage Property: 164/553,324th parts or shares of and in Section B of Inland Lot No. 8969 (Flat B on 37/F. of Tower 8 and Private Car Park No. 188 on Car Park Level 2 of Residence Bel-Air, 28-38 Bel-Air Avenue, Island South, Hong Kong.) Mortgagee: Bank of Baroda, Hong Kong Branch.	All moneys
04-04-2011	Instrument: Charge Over Deposit Property: All the fixed deposit and/or call deposit under the Customer ID 911000130 Mortgagee: Axis Bank Ltd., Hong Kong Branch.	To secure all monies in respect of banking facilities

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.27
UK Pound	1	Rs.73.33
Euro	1	Rs.64.58

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.