MIRA INFORM REPORT

Report Date :

04.07.2011

IDENTIFICATION DETAILS

Name :	P. LACHMAN (HONG KONG) LTD.

Registered Office :	Unit G & H, 9/F., Summit Building, 30 Man Yue Street, Hunghom, Kowloon,

Country :	Hong Kong

Date of Incorporation :	19.06.1973

Com. Reg. No.:	03937303

Legal Form :	Private Limited Company

Line of Business :	Importer, Exporter and Wholesaler of Footwear, eyewear, electric household appliances, solar products, etc.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory

Payment Behaviour :	Usually 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^st, 2011

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

Hong Kong

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

Company name

P. LACHMAN (HONG KONG) LTD.

company ADDRESS

Unit G & H, 9/F., Summit Building, 30 Man Yue Street, Hunghom, Kowloon, Hong Kong.

PHONE: 2366 0575

FAX: 2739 8070

E-MAIL: plachman@lachman.com.hk

MANAGEMENT

Managing Director: Mr. Nandkumar Lachmandas

SUMMARY

Incorporated on: 19th June, 1973.

Organization: Private Limited Company.

Capital: Nominal: HK$1,000,000.00

Issued: HK$1,000,000.00

Business Category: Importer, Exporter and Wholesaler.

Employees: 10.

Main Dealing Banker: Bank of India, Hong Kong Branch.

Banking Relation: Good.

Company ADDRESS

Registered Head Office:-

Unit G & H, 9/F., Summit Building, 30 Man Yue Street, Hunghom, Kowloon, Hong Kong.

Business Name:-

Hwa Cheong Hong, Hong Kong. (Same BR No. and same address)

Affiliated Company:-

Instar Ltd., Hong Kong. (Same address)

BUSINESS REGISTRATION NUMBER

03937303

COMPANY FILE NUMBER

0034202

MANAGEMENT

Managing Director: Mr. Nandkumar Lachmandas

CAPITAL

Nominal Share Capital: HK$1,000,000.00 (Divided into 10,000 shares of HK$100.00 each)

Issued Share Capital: HK$1,000,000.00

SHAREHOLDERS

(As per registry dated 19-06-2010)

Name		No. of shares
Nandkumar LACHMANDAS		5,500
Bhavishya N. LACHMANDAS		2,250
Deepa Nandkumar LACHMANDAS		2,250
		––––––
	Total:	10,000 =====

DIRECTORS

(As per registry dated 19-06-2010)

Name (Nationality)	Address
Nandkumar LACHMANDAS	Front Block, 12/F., Ocean View Court, 25 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
Bhavishya N. LACHMANDAS	Front Block, 12/F., Ocean View Court, 25 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
Deepa Nandkumar LACHMANDAS	Front Block, 12/F., Ocean View Court, 25 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.

SECRETARY

(As per registry dated 19-06-2010)

Name	Address
CHEUNG So Lai	Room 424, Fu Shun House, Fu Shan Estate, Kowloon, Hong Kong.

HISTORY

The subject was incorporated on 19th June, 1973 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at Front Portion, 12/F., Ocean View Court, 25 Chatham Road, Tsimshatsui, Kowloon, Hong Kong, moved to 13/F., Daily House, 35-37 Hai Phong Road, Tsimshatsui, Kowloon, Hong Kong in July 2002; and further to the present address in April 2008.

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

OPERATIONS

Activities: Importer, Exporter and Wholesaler.

Lines: Footwear, eyewear, electric household appliances, solar products, etc.

Employees: 10.

Commodities Imported: China, India, other Asian countries, etc.

Markets: Asian countries, Europe, North America, etc.

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: HK$1,000,000.00 (Divided into 10,000 shares of HK$100.00 each)

Issued Share Capital: HK$1,000,000.00

Mortgage or Charge (since 2002): (See attachment)

Profit or Loss: Making a small profit every year.

Condition: Keeping in an active manner.

Facilities: Making active use of general banking facilities.

Payment: Met trade commitments on time.

Commercial Morality: Satisfactory.

Bankers:-

· Bank of India, Hong Kong Branch.

· Citibank N.A., Hong Kong Branch.

· HBZ Finance Ltd., Hong Kong.

Standing: Good.

GENERAL

Having issued 10,000 ordinary shares of HK$100.00 each, P. Lachman (Hong Kong) Ltd. is jointly owned by Nandkumar Lachmandas, holding 55% interests; Mr. Bhavishya N. Lachmandas, holding 22.5%; and Mr. Deepa Nandkumar Lachmandas, also 22.5%.

The subject is also trading as Hwa Cheong Hong. It has been a liaison office based in Hong Kong since 1973. It was founded by Mr. Pohoomal Kewalram, and has been passed down by generation. Now the subject was directed by Mr. Nanu Lachman and his family.

The subject has been one of the significant Indian firms in Hong Kong having a long history. It is a buying agent, an exporter and importer, and a manufacturer representative. The subject currently is trading in different kinds of commodities such as the followings:-

· Audio and Video Products

· Chemicals and Fertilizers

· Consumer Goods

· Electric and Electronic Products, n.e.s

· Garments and Accessories

· Jewellery, Jewellery-Imitation

· Porcelain Ware

· Premium, Novelties and Gift Items

· Stationery

· Toys and Dolls

· Watches, Clocks and Components

· Miscellaneousellaneous

Commodities are chiefly sourced from China. Other supplying countries are other Asian countries and European countries. The prime markets are Western and Eastern Europe, the Middle East, Africa, Australia, Southeast Asia, North America, South America, etc. Overall business is active. Annual sales turnover is significant.

Having offices in Hong Kong, Guangzhou, Ningbo, Thailand, Spain, and Chile, the subject is able to offer adequate resources for its clients.

As the history of the subject is over thirty-eight years in Hong Kong, on the whole, consider it good for normal business engagements.

REMARKS:

Court Cases: None per our.

Property information of the company:-

Property Location: Front Portion of 12/F., Ocean View Court, 25 Chatham Road, Kowloon, Hong Kong.

Owner: P. Lachman (Hong Kong) Ltd.

Date of Purchase: n.a.

Purchased Price: n.a.

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
16-01-2002	-	Bank of India, Hong Kong Branch.	Legal charge to secure general banking facilities

MORTGAGE OR CHARGE

(Since 2002)

Date	Particulars	Amount
16-01-2002	Instrument: Legal Charge/Mortgage Property: 1/30th part or share of and in Section N of Kowloon Inland Lot No. 6453 (Front Portion of 12/F. of Ocean View Court, 25 Chatham Road, Kowloon, Hong Kong.) Mortgagee: Bank of India, Hong Kong Branch.	General banking facilities
10-03-2008	Instrument: General Letter of Hypothecation Property: Bills of exchange, and/or invoices, or any other documents representing or relating to goods. The Company agree that the same and all goods thereby represented or to which the document relate shall be hypothecated by way of first charge as a continuing security for all sums in which the company from time to time be actually or contingently indebted or liable to bank on any account Mortgagee: Bank of India, Hong Kong Branch.	All the money
23-06-2009	Instrument: Deposit Deed Property: By way of a first fixed charge and as a continuing security for the obligations, the Company charges and assigns absolutely all its rights, title to and interest in the accounts and all deposits from time to time in the accounts and/or comprising the accounts maintained with Citibank N.A. and/or Citibank (Hong Kong) Ltd. Mortgagee: Citibank N.A., Hong Kong Branch.	All moneys now or at any time in the future owing by the Company and/or P. Lachman (Hong Kong) Ltd. trading as Hwa Cheong Hong
18-01-2010	Instrument: Lien and Set-Off Agreement Property: Fixed Deposit Receipt No. Principal Amount Maturity Date DFN2010001 US$13,000.00 12-04-2010 DFN1120038 US$15,879.16 14-03-2010 Mortgagee: HBZ Finance Ltd., Hong Kong.	General credit facility
16-11-2010	Instrument: Lien and Set-Off Agreement Property: Fixed Deposit Receipt No. Principal Amount Maturity Date DFN2110098 US$14,277.70 08-02-2011 Mortgagee: HBZ Finance Ltd., Hong Kong.	General credit facility
09-12-2010	Instrument: Lien and Set-Off Agreement Property: Fixed Deposit Receipt No. Principal Amount Maturity Date DFN2120109 US$23,000.00 02-03-2011 DFN2110104 US$18,000.00 16-02-2011 Mortgagee: HBZ Finance Ltd., Hong Kong.	General credit facility

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.59
UK Pound	1	Rs.71.75
Euro	1	Rs.64.80

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.