MIRA INFORM REPORT

Report Date :

10.01.2011

IDENTIFICATION DETAILS

Name :	SINO COAST LTD.
Registered Office :	Suite 2512, 25/F., Shell Tower, Times Square, 1 Matheson Street, Causeway Bay
Country :	Hong Kong
Date of Incorporation :	28.03.2001
Com. Reg. No.:	31746099
Legal Form :	Private Limited Company
Line of Business :	Importer, Re-exporter, Financial Service Provider of Chemicals, textile raw materials, feedstuffs, oils and fats, 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 :	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 – 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

SINO COAST LTD.

company ADDRESS

Suite 2512, 25/F., Shell Tower, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong.

PHONE: 3421 1343, 3421 1345

FAX: 3421 1347, 3421 1348

E-MAIL: webmail@sinocoast.com

MANAGEMENT

Managing Director: Mr. Lee Kang Min

SUMMARY

Incorporated on: 28th March, 2001.

Organization: Private Limited Company.

Capital: Nominal: HK$3,900,000.00

Issued: HK$3,900,000.00

Business Category: Importer, Re-exporter, Financial Service Provider.

Employees: 5.

Main Dealing Banker: Bank of China (Hong Kong) Ltd., Hong Kong.

Banking Relation: Satisfactory.

Company ADDRESS

Registered Head Office:-

Suite 2512, 25/F., Shell Tower, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong.

Shanghai Office:-

Room 802, 8/F., Dawning Center B, 500 Hongbaoshi Road, Changning District, Shanghai, China.

[Tel: 86-21-5187 3311; Fax: 86-21-5187 3322]

Thailand Office:-

Unit 4-5, 10/F., 571 Fenix Tower, Soi Sukhumvit 31, Sukhumvit Road, Klongton Nue, Wattana, Bangkok 10110, Thailand.

[Tel: 66-2-2596923; Fax: 66-2-2596924]

Subsidiaries:-

Fu Chem Ltd.

16B2, Nobel Center, 1006 3rd Fuzhong Road, Futian District, Shenzhen, China.

[Tel: 86-755-8202 2088; Fax: 86-755-8202 2089]

Sino Coast Huanyu (Shenzhen) Co. Ltd.

Room 17, 9/F., Jinwei Building, 4051 Jiabin Road, Shenzhen, China.

[Tel: 86-755-8246 5533; Fax: 86-755-8246 5522]

BUSINESS REGISTRATION NUMBER

31746099

COMPANY FILE NUMBER

0752009

MANAGEMENT

Managing Director: Mr. Lee Kang Min

CAPITAL

Nominal Share Capital: HK$3,900,000.00 (Divided into 3,900,000shares of HK$1.00 each)

Issued Share Capital: HK$3,900,000.00

SHAREHOLDER

(As per registry dated 28-03-2010)

Name	No. of shares
LEE Kang Min	3,900,000 =======

DIRECTORS

(As per registry dated 28-03-2010)

Name (Nationality)	Address
LEE Kang Min	16A, Building 3, Phase 1, East Pacific Garden, Futian, Shenzhen, China.
KIM Yoo Kyung	16A, Building 3, Phase 1, East Pacific Garden, Futian, Shenzhen, China.

SECRETARY

(As per registry dated 28-03-2010)

Name	Address	Co. No.
Apexlink Secretaries Ltd.	Room 1901, 19/F., Henan Building, 90-92 Jaffe Road, Wanchai, Hong Kong.	1183803

HISTORY

The subject was incorporated on 28th March, 2001 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject’s office was located at Unit 4, 12/F., Bonham Trade Centre, 50 Bonham Strand East, Sheung Wan, Hong Kong, moved to Room 902, 9/F., Hutchison House, 10 Harcourt Road, Central, Hong Kong with effect from 1st September, 2003, and further to the present address in July 2007.

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

OPERATIONS

Activities: Importer, Re-exporter, Financial Service Provider.

Lines: Chemicals, textile raw materials, feedstuffs, oils and fats, etc.

Employees: 5.

Commodities Imported: Indonesia, India, South Korea, etc.

Markets: China, Hong Kong and overseas.

Terms/Sales: As per contracted.

Terms/Buying: Various terms.

FINANCIAL INFORMATION

Nominal Share Capital: HK$3,900,000.00 (Divided into 3,900,000shares of HK$1.00 each)

Issued Share Capital: HK$3,900,000.00

Alternation of Capital:-

Initially	paid up	HK$ 10,000.00
09-03-2006	paid up	HK$ 3,890,000.00
		–––––––––––––––
Total:	paid up	HK$ 3,900,000.00 ==============

Increase of Nominal Capital:-

From

HK$10,000.00

to

HK$3,900,000.00

on

09-03-2006

Mortgage or Charge: (See attachment)

Profit & Loss: Traded at a very small profitable angle.

Condition: Keeping in an normal state.

Facilities: Adequate for current running.

Payment: Met as required.

Commercial Morality: Satisfactory.

Banker: Bank of China (Hong Kong) Ltd., Hong Kong.

Standing: Normal.

GENERAL

At the beginning, Sino Coast Ltd. issued 10,000 ordinary shares of HK$1.00 each and was jointly owned by Lee Kang Min, holding 50% interests; Park Dong Hwan, holding 25%; and Jang Yang Soo, also 25%. The subject has been reshuffled and now it is wholly owned by Lee Kang Min. Its issued share capital has been increased from HK$10,000.00 to HK$3,900,000.00 in March 2006.

The directors of the subject are Lee Kang Min and Kim Yoo Kyung, both of whom are residing in Shenzhen Special Economic Zone, China. Currently, they are also directors of the subject.

The subject has got a subsidiary company Sino Coast Huanyu (Shenzhen) Co. Ltd. in Shenzhen Special Economic Zone, China. Currently, the subject and its subsidiary company are carrying the following commodities:-

· Aromatics — Toluene, Mixed Xylene

· Petrochemical Raw Material — MEG

· Textile Raw Materials — PTA, P-Chip

· Resin — PP, PE

· Feedstuffs

· Iron and Steel

· Electronic Products

· Oils and Fats

According to the subject, the predecessor of the Shenzhen company was the representative office of a foreign company. It has been taken over by the subject since mid-2001.

According to the subject, “PTA” are chiefly imported from South Korea, Indonesia, and India. It is also the sole agent in Southern China of the “PTA” produced by KP Chemical, a South Korea-based firms. The subject imports galvanised zinc sheets, electroplated zinc sheets, colour steel boards, chrome‑plated iron, etc. Exports steel wires, steel rods, steel boards, etc. for construction and building industries. Plastic raw materials such as LLDPE are provided by Hanhwa of South Korea, and Taiwan Plastic Corporation of Taiwan.

The Shenzhen company is also the agent in Shenzhen for Hunan Petrochemical Corporation, Honam, LG, and Caltex. It also distributes feedstuffs, produced by China manufacturers, in Southern China.

The subject’s core business, commodities wholesaling, is principally handled by its subsidiary company in Shenzhen Special Economic Zone. The subject in Hong Kong is responsible for the importation and exportation of commodities.

Besides the Shenzhen company, the subject has set up offices in Shanghai, China and Thailand.

At the end of 2007, the subject invested a factory in China engaged in manufacturing petrochemicals. Now, the subject is trading in the following two main lines of business:-

· Petrochemicals— aromatics, polyester raw materials, alcohol, unsaturated resin raw materials, solvents and inorganic chemicals, chemical fertilizer, fine chemicals, etc.

· Energy — base oil, fuel oil, solvent oil, asphalt and other by-products; coal, coal tar, carbon black, etc.

The subject is providing Pohang Iron and Steel, a South Korea-based firm, with all kinds of iron and steel scrap. The subject is also engaged in fund raising and capitals pooling.

The subject has developed business ties with many petrochemical enterprises which are located at South Korea, Taiwan, Southeast Asia, the Middle East, India, etc. In China, the subject also has built relationship with many petrochemical enterprises and polyester factories.

The subject also has a strong advantage in financing based on the professional services provided by its banks in Hong Kong.

Most of the time, Lee Kang Min is administering his firm in Shenzhen. Overall business is active.

Including its associates, the subject’s annual sales turnover has achieved over US$500 million. Business is profitable.

On the whole, the subject is considered good for normal business engagements.

COURT CASES: None per our.

MORTGAGE OR CHARGE

Date	Particulars	Amount
25-02-2010	Instrument: Deed of Indemnity, Charge Over Deposit and Set-Off Property: All the Company’s estate, right, title, claim, benefit and interest to and in the Deposit and all interest from time to time payable thereon and together with all title deeds or documents relating thereto Particulars of the Deposit: Deposit No.: 012-897-5-062614-6 Amount: US$600,000.00 Mortgagee: Bank of China (Hong Kong) Ltd., Hong Kong.	All moneys in respect of general banking facilities
05-07-2010	Instrument: Security Deed (Proceeds) Property: (a) All Proceeds, together with the right to receive, to sue for recovery and give effectual discharge for the Proceeds in the name of the Obligor and all claims in respect of any breach of the Contract; and (b) all moneys from time to time standing to the credit of the Charged Account and the Obligor irrevocably authorises the Bank to withdraw and apply any credit balance in the Charged Account in reduction of the Secured Liabilities at any time Mortgagee: Bank of China (Hong Kong) Ltd., Hong Kong.	At any time all principal, interest, fees, charges, costs, expenses, damages and other moneys

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.37
UK Pound	1	Rs.70.38
Euro	1	Rs.58.93

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.