MIRA INFORM REPORT

Report Date :

22.02.2011

IDENTIFICATION DETAILS

Name :	KUNLUN INDUSTRIAL CO. LTD.
Registered Office :	c/o HK Zhout Int’l Invest Consultant Ltd., Room C1D, 6/F., Wing Hing Industrial Building, 14 Hing Yip Street, Kwun Tong, Kowloon
Country :	Hong Kong
Date of Incorporation :	18.01.2008
Com. Reg. No.:	38864385
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Wholesaler of Scarp metals, coke, old vessels, etc

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 :	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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
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

KUNLUN INDUSTRIAL CO. LTD.

company ADDRESS

c/o HK Zhout Int’l Invest Consultant Ltd.

Room C1D, 6/F., Wing Hing Industrial Building, 14 Hing Yip Street, Kwun Tong, Kowloon, Hong Kong.

PHONE: 2110 1865, 9666 9759

FAX: 2110 0996

MANAGEMENT

Managing Director: Mr. Li Wenyan

SUMMARY

Incorporated on: 18th January, 2008.

Organization: Private Limited Company.

Capital: Nominal: HK$10,000.00

Issued: HK$10,000.00

Business Category: Importer, Exporter and Wholesaler.

Employees: Nil.

Main Dealing Banker: Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

Banking Relation: Satisfactory.

company ADDRESS

Registered Head Office:-

c/o HK Zhout Int’l Invest Consultant Ltd.

Room C1D, 6/F., Wing Hing Industrial Building, 14 Hing Yip Street, Kwun Tong, Kowloon, Hong Kong.

Affiliated Companies:-

· Beijing Jinshi Enterprise Co. Ltd., China.

· Kangqian Industrial Co. Ltd., Japan.

· Risui Co. Ltd., Japan.

· Tianjin Kangqian Industrial Co. Ltd., China.

· Tianjin Risui Shipping Management Co. Ltd.

Room 2103, 21/F., 16 Third Street, Tianjian Economic & Technology Development Area, Tianjin, China.

[Tel: 86-22-6620 9900; Fax: 86-22-6628 1782]

BUSINESS REGISTRATION NUMBER

38864385

COMPANY FILE NUMBER

1205084

MANAGEMENT

Managing Director: Mr. Li Wenyan

CAPITAL

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

Issued Share Capital: HK$10,000.00

SHAREHOLDER

(As per registry dated 18-01-2011)

Name	No. of shares
LI Wenyan	10,000 =====

DIRECTOR

(As per registry dated 18-01-2011)

Name (Nationality)	Address
LI Wenyan	No. 301, 2 Door, 4 Building, Hui’an Lane, Tanggu Area, Tianjin, China.

SECRETARY

(As per registry dated 18-01-2011)

Name	Address	Co. No.
HK Zhout Int’l Invest Consultant Ltd.	Room C1D, 6/F., Wing Hing Industrial Building, 14 Hing Yip Street, Kwun Tong, Kowloon, Hong Kong.	1053033

HISTORY

The subject was incorporated on 18th January, 2008 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, Exporter and Wholesaler.

Lines: Scarp metals, coke, old vessels, etc.

Employees: Nil.

Commodities Imported: Japan, India, other Asian countries, Europe, etc.

Markets: China, other Asian countries, etc.

Terms/Sales: As per contracted.

Terms/Buying: Various terms.

FINANCIAL INFORMATION

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

Issued Share Capital: HK$10,000.00

Mortgage or Charge: (See attachment)

Profit or Loss: Keeping a balance account in Hong Kong.

Condition: Business is not active in Hong Kong.

Facilities: Making fairly active use of general banking facilities.

Payment: Met trade commitments as required.

Commercial Morality: Satisfactory.

Banker: Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

Standing: Small.

GENERAL

Having issued 10,000 ordinary shares of HK$1.00 each, Kunlun Industrial Co. Ltd. is wholly owned by Mr. Li Wenyan who is a China merchant. He is a China ID holder and does not have the right to reside in Hong Kong permanently. Li is also the only director of the subject.

The subject does not have its own operating office. Its registered office is in a commercial service firm located at Room C1D, 6/F., Wing Hing Industrial Building, 14 Hing Yip Street, Kwun Tong, Kowloon, Hong Kong known as HK Zhout Int’l Invest Consultant Ltd. which is handling its correspondences and documents. This firm is also the corporate secretary of the subject.

The subject has no employees in Hong Kong.

To our knowledge, Li Wenyan is also the legal representative of Tianjin Kangqian Industrial Co. Ltd. [Tianjin Kangqian]. Established in 1994, Tianjin Kangqian has had its head office in Tokyo, Japan which is known as Kangqian Industrial Co. Ltd. [Kangqian]. Kangqian is engaged in vessel management, coke, iron ore, metallurgical products exporting and importing. It is also a shipping company.

The subject has had another affiliated company Tianjin Risui Shipping Management Co. Ltd. which is a China-based firm. Its holding company is Risui Co. Ltd. [Risui], a Japan-based firm. Your given phone and fax number belong to Tianjin Risui Shipping Management Co. Ltd.

Risui was founded in February 1994. It was a multinational company in China and Japan. Risui is engaged in trading, transportation and international business. Headquartered in Tokyo and has had branch company in Hong Kong, Tianjin and Beijing, Risui trades in steel and mineral products. It is also engaged in shipping. It has had vessels plying between China and Japan. Like Kangqian, Risui trades in steel scraps, coke, ferro-silica, carburant, calcined coal, active carbon, mill scales, grain and fodder. Overall business is normal.

It is likely that the China firms deal with foreign parties under the name of the subject and let foreign firms correspond with the subject’s registered address in Hong Kong. The China firms also exports commodities to foreign markets under the name of the subject and its registered address in Hong Kong.

The subject’s business in Hong Kong is not very active.

Since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on secured basis.

COURT CASES: None per our.

MORTGAGE OR CHARGE

Date	Particulars	Amount
16-12-2009	Instrument: Security over Deposit in respect of Obligations of the Depositor Property: By way of first fixed charge to the Chargee the account number 861530032431 and all deposits Mortgagee: Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.	All monies and liabilities, present or future, actual or contingent
16-12-2009	Instrument: Security over Deposit in respect of Obligations of the Depositor Property: By way of first fixed charge to the Chargee the account number 861530032444 and all deposits Mortgagee: Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.	All monies and liabilities, present or future, actual or contingent
16-12-2009	Instrument: Security over Deposit in respect of Obligations of the Depositor Property: By way of first fixed charge to the Chargee the account number 861530032457 and all deposits Mortgagee: Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.	All monies and liabilities, present or future, actual or contingent
29-12-2009	Instrument: First Preferred Panamanian Ship Mortgage Property: The Owner, mortgaged and charged to and in favour of the Mortgagee, the whole of the Vessel (means the motor vessel m.v. “Sheng Tang” registered in the Public Registry of the Republic of Panama) and all its benefits and interests present and future therein Mortgagee: Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.	To secure the repayment of the Outstanding Indebtedness and to secure the performance and observance of and compliance with the covenants, terms and conditions in the Mortgage, the Facility Agreement and the other Security Documents contained and supplemental thereto
29-12-2009	Instrument: General Assignment Property: The Owner, as legal and beneficial owner, hypothecated, charged, assigned and released to the Assignee, by way of a first fixed charge, as a continuing security for the payment and discharge of all moneys, obligations and liabilities Mortgagee: Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.	To secure for the payment and discharge of the Secured Obligations assigned and agreed to assign to the Assignee the Assigned Property

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.11
UK Pound	1	Rs.73.25
Euro	1	Rs.61.70

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%)

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.