MIRA INFORM REPORT

Report Date :

08.03.2011

IDENTIFICATION DETAILS

Name :	BST (HK) Limited
Registered Office :	Room 5206, 52F., Hopewell Centre, 183 Queen’s Road East, Wanchai
Country :	Hong Kong
Date of Incorporation :	27.10.1998
Com. Reg. No.:	22087101
Legal Form :	Private Limited Company
Line of Business :	Importer and Exporter of all Kinds of Iron and Steel.

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 :	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 – 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

BST (HK) LTD.

company ADDRESS

Room 5206, 52F., Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong.

PHONE: 2634 1088

FAX: 2634 0171

MANAGEMENT

Managing Director: Mr. Dejan Minic

SUMMARY

Incorporated on: 27th October, 1998.

Organization: Private Limited Company.

Capital: Nominal: HK$10,000.00

Issued: HK$10,000.00

Business Category: Iron and Steel Trader.

Employees: 5.

Main Dealing Banker: United Overseas Bank Ltd., Hong Kong Branch.

Banking Relation: Satisfactory.

Company ADDRESS

Registered Head Office:-

Room 5206, 52F., Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong.

BUSINESS REGISTRATION NUMBER

22087101

COMPANY FILE NUMBER

0658014

MANAGEMENT

Managing Director: Mr. Dejan Minic

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

SHAREHOLDERS

(As per registry dated 15-11-2010)

Name		No. of shares
Dejan MINIC		5,990
Ashish Ranchhod SHUKLA		4,010
		––––––
	Total:	10,000 =====

DIRECTORS

(As per registry dated 27-10-2010)

Name (Nationality)	Address
Ashish Ranchhod SHUKLA	Flat F, 28/F., Lotus Mansion, 6 Taikoo Wan Road, Taikoo Shing, Hong Kong.
Dejan MINIC	Flat B, 3/F., Block 28, Greenwood Terrace, 26-28 Sui Wo Road, Shatin, New Territories, Hong Kong.

SECRETARY

(As per registry dated 27-10-2010)

Name	Address	Co. No.
Sound Financial Ltd.	Room 801, 8/F., Workington Tower, 78 Bonham Strand East, Hong Kong.	0427601

HISTORY

The subject was incorporated on 27th October, 1998 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Balkan Steel (HK) Ltd., name changed to the present style on 19th April, 2002.

Formerly the subject was located at Room 1907, 19/F., Tower II, Grand Central Plaza, 138 Shatin Rural Committee Road, Shatin, New Territories, Hong Kong, moved to the present address with effect from 19th December, 2010.

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

OPERATIONS

Activities: Importer and Exporter.

Lines: All kinds of iron and steel.

Employees: 5.

Commodities Imported: India, former Yugoslavia, Russia, 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

Alternation of Capital:-

Initially	paid up	HK$ 100.00
15-11-2010	paid up	HK$ 9,900.00
		–––––––––––––
Total:	paid up	HK$ 10,000.00 ============

Mortgage or Charge (since 15-12-2009): (See attachment)

Profit or Loss: Making a small profit every year.

Condition: Keeping in a normal state.

Facilities: Making rather active use of general banking facilities.

Payment: Met trade commitments as contracted.

Commercial Morality: Satisfactory.

Banker: United Overseas Bank Ltd., Hong Kong Branch.

Standing: Normal.

GENERAL

Having issued 10,000 ordinary shares of HK$1.00 each, BST (HK) Ltd. is jointly owned by Mr. Dejan Minic, holding 59.9% interests, and Mr. Ashish Ranchhod Shukla, holding 40.1%. The shares held by Shukla was held by Mr. Maja Minic who transferred his shares to him on 11th March, 2010. Dejan Minic and Shukla are also directors of the subject.

The subject’s ordinary shares have been increased to 10,000 from 100.

Dejan Minic was a Yugoslavia passport holder and now he is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.

Incorporated in October 1998, the subject is an iron and steel trader. Its main supplier is Balkan Steel I.E. [Balkan Steel] which is in Liechtenstein.

The subject is trading in the following products:-

· Square Tubes

· Rectangular Tubes

· Round Tubes

· Medium Heavy Tubes

· Elliptic Tubes

· ZP Profiles

· Cold Rolled Tubes with Small Radius

· Construction Supports and Tripods

· Frame Scaffold

· Greenhouses

· Elements and Compositions

· Wood Processing Gear

etc.

Established in 1995, Balkan Steel is engaged in steel products trading. Its main markets are Russia, Ukraine and the Asia Pacific region. Now, its markets have been expanded to the European Union and even the United States. However, Balkan Steel’s business centres on the Republic of Macedonia, Bosnia, Herzegovina, etc. all which belonged to former Yugoslavia which dissolved in 1991.

Currently, Balkan Steel centres its business activities in Bosnia in two business entities: UNIS Tube Factory Derventa and the Port of Shamac. Besides, Balkan Steel has set up business entities in the following countries and cities: Bonn of Germany, Paris of France, and Skopje of Macedonia. Set up representative offices in Mariupol of Ukraine, Belgrade of Serbia, Banja Luka of Bosnia, and Herzegovina. Balkan Steel also has secured sales agents in France, Croatia, Bulgaria, etc.

The subject is Balkan Steel’s Hong Kong agent. Most of Balkan Steel’s products are steel pipes which are manufactured by its Unis Pipe Factory.

The subject also re-exports the products to China and the other Asian countries. Its also imports iron and steel from India, other Asian countries and re-exports to the Eastern Europe, Ukraine, etc. Business is normal.

The subject’s business is chiefly handled by Dejan Minic and Shukla.

As the history of the subject is over twelve years and three months in Hong Kong, on the whole, consider it good for normal business engagements.

COURT CASES: None per our.

MORTGAGE OR CHARGE

(Since 15-12-2009)

Date	Particulars	Amount
15-12-2009	Instrument: Charge Over Account and Set-Off Property: All the Company’s rights, title and interest in and to the Account Mortgagee: United Overseas Bank Ltd., Hong Kong Branch.	To secure general banking facilities
15-12-2009	Instrument: Addendum to Charge Over Account and Set-Off Property: The addendum, as an integral part of the Charge Undertaking, varies the Charge Undertaking in terms of the deposits in the Account being differentiated and identified as being protected or not protected by or under the Scheme and/or the guarantee and such variation shall come to effect from the date of the Charge Undertaking until the Expiry Date Mortgagee: United Overseas Bank Ltd., Hong Kong Branch.	To secure general banking facilities
15-12-2009	Instrument: General Memorandum of Pledge of Goods Property: All the Company’s rights, title and interest in and to the Merchandise Mortgagee: United Overseas Bank Ltd., Hong Kong Branch.	To secure general banking facilities
15-12-2009	Instrument: Assignment of Letters of Credit Property: All the Company’s rights, title, interest and benefit in and to all and any moneys now or at any time due or owing to the Company Mortgagee: United Overseas Bank Ltd., Hong Kong Branch.	To secure general banking facilities
18-10-2010	Instrument: Assignment of Sale Contracts Property: All the Company’s rights, title and interest in and to the Assigned Assets Mortgagee: United Overseas Bank Ltd., Singapore.	To secure general banking facilities

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.13
UK Pound	1	Rs.73.36
Euro	1	Rs.60.06

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 Company	----

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.