MIRA INFORM REPORT

Report Date :

09.03.2011

IDENTIFICATION DETAILS

Name :	KARTEX TRADING LTD.
Registered Office :	c/o Benzol Co. Ltd., Unit 12, G/F., Block A, Shatin Industrial Centre, 5-7 Yuen Shun Circuit, Shatin, New Territories
Country :	Hong Kong
Date of Incorporation :	11.01.1999
Com. Reg. No.:	30032796
Legal Form :	Private Limited Company
Line of Business :	Importer, Wholesaler and Re-exporter of Coatings, rust conventing primer, steel surface treatment chemical, silicone sealant, 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 :	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 – 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

KARTEX TRADING LTD.

Company ADDRESS

c/o Benzol Co. Ltd.

Unit 12, G/F., Block A, Shatin Industrial Centre, 5-7 Yuen Shun Circuit, Shatin, New Territories, Hong Kong.

PHONE: 2636 0299

FAX: 2647 8041

MANAGEMENT

Managing Director: Mr. Chui Chit Kwong, Charles

SUMMARY

Incorporated on: 11th January, 1999.

Organization: Private Limited Company.

Capital: Nominal: HK$500,000.00

Issued: HK$500,000.00

Business Category: Chemical Trader.

Employees: 10. (Including affiliates)

Main Dealing Banker: Shanghai Commercial Bank Ltd., Hong Kong.

Banking Relation: Satisfactory.

Company address

Registered Head Office:-

c/o Benzol Co. Ltd.

Unit 12, G/F., Block A, Shatin Industrial Centre, 5-7 Yuen Shun Circuit, Shatin, New Territories, Hong Kong.

China Affiliated Factory:-

Buji Sang Hing Electronic Chemical Factory

Xia Li Lang Industrial District, Buji Town, Shenzhen, China.

[Tel: 86-755-2872 5654; Fax: 86-755-2872 5572]

Affiliated Companies:-

Benzol Co. Ltd., Hong Kong.

Chemlab American Ltd., Hong Kong.
[Trading as Sang Hing Industrial Chemicals Co.]

Chemlab International Ltd., British Virgin Islands.

Hoson Technology Ltd., Hong Kong. [Dissolved]

Mid-Sino Holdings Ltd., British Virgin Islands.

Mid-Sino Properties Ltd., Hong Kong.

Sang Hing Electronic Chemical Ltd., Hong Kong.

etc.

BUSINESS REGISTRATION NUMBER

30032796

COMPANY FILE NUMBER

0664513

MANAGEMENT

Managing Director: Mr. Chui Chit Kwong, Charles

CAPITAL

Nominal Share Capital: HK$500,000.00 (Divided into 500,000 shares of HK$1.00 each)

Issued Share Capital: HK$500,000.00

SHAREHOLDERS

(As per registry dated 11-01-2011)

Name		No. of shares
Chemlab International Ltd. Skelton Building, Main Street, P.O. Box 3136, Road Town, Tortola, British Virgin Islands.		175,000
CHUI Chit Kwong		325,000
		–––––––
	Total:	500,000 ======

DIRECTORS

(As per registry dated 11-01-2011)

Name (Nationality)	Address
HO Yau Hon	House No. 93, Constellation Cove, 1 Hung Lam Drive, Tai Po, New Territories, Hong Kong.
CHUI Chit Kwong	Room 109, Block O, Telford Gardens, Kowloon Bay, Kowloon, Hong Kong.

SECRETARY

CHUI Chit Kwong (As per registry dated 11-01-2011)

HISTORY

The subject was incorporated on 11th January, 1999 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, Wholesaler and Re-exporter.

Lines: Coatings, rust conventing primer, steel surface treatment chemical, silicone sealant, etc.

Trade Marks: CHEMLAB, STEELCOTE, KSP, SILICEX, SLUBYSIL, LEO and DIABOND.

Office Area: 2,000 sq.ft. in Hong Kong – owned by affiliate.

Employees: 10. (Including affiliates)

Commodities Imported: Imported from USA, Europe, India, etc.

Markets: Hong Kong, China, other Asian countries, etc.

Terms/Sales: COD or as per contracted.

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

FINANCIAL INFORMATION

Nominal Share Capital: HK$500,000.00 (Divided into 500,000 shares of HK$1.00 each)

Issued Share Capital: HK$500,000.00

Profit or Loss: Traded at a small profitable angle.

Condition: Business is rather active.

Facilities: Making rather active use of general banking facilities.

Payment: Met as required.

Commercial Morality: Satisfactory.

Banker: Shanghai Commercial Bank Ltd., Hong Kong.

Standing: Normal.

GENERAl

Having issued 500,000 ordinary shares of HK$1.00 each, Kartex Trading Ltd. is a private limited company incorporated in January 1999.

Formerly the subject was jointly held by Mr. Chui Chit Kwong who owned 175,000 shares, Mr. Lin Chang Quan, owned 150,000 shares, and Chemlab International Ltd. [Chemlab], a BVI-registered firm, which held 175,000 shares. On 25th July, 2002, Lin transferred all his shares to Chui, since then Chui has been holding 325,000 shares which accounts for 65% interests, while Chemlab is still holding 175,000 shares, 35%.

The subject has got an affiliated company known as Benzol Co. Ltd. [Benzol] which is also located at the subject’s operating address. Benzol is a wholly‑owned subsidiary of Chemlab. Incorporated on 7th March, 1986 and engaged in the same lines of business as the subject, Benzol is specialized in coatings.

Currently, the subject is also dealing in coatings. It imports, wholesales and re-exports the following industrial chemicals:-

· Coating (Chemical resistance)
Brandnames: “LEO” and “STEELCOTE”

· Coating (Floor Coating)
Brandnames: “LEO” and “STEELCOTE”

· Rust Conventing Primer
Brandnames: “LEO” and “STEELCOTE”

· Steel Surface Treatment Chemical
Brandnames: “LEO” and “STEELCOTE”

· Silicone Sealant
Brandname: “RHODORSIL”

Benzol has got the ISO 9002 certification.

“STEELCOTE” coatings, manufactured in the United States, have been used for over 80 years in such diverse and demanding situations as mines, bridges, ships, wastewater plants, electric power stations, chemical tanks, etc.

The subject’s products are distributed in Hong Kong and re-exported to China, Southeast Asia, etc. Business is rather active.

The subject’s affiliated factory, in Shenzhen Special Economic Zone, covers an area of about 5,000 sq.ft. and employs over 50 persons. This China factory is responsible for re-packaging and distributing the above-mentioned coatings and chemicals. Prime markets are large cities of Guangdong Province, China. Market share has been increasing.

In Hong Kong, the subject also contracts engineering projects concerning the maintenance of iron and steel fabrications.

The Managing Director of Benzol Ho Yau Hong is also the director of the subject.

The history of the subject in Hong Kong is over twelve years.

On the whole, consider the subject good for normal business engagements.

REMARKS:

Court Cases: None per our.

Property information of affiliates:-

1. Property Location: Workshop 12 on G/F. of Block A and Car Parking Space No. L11 on G/F., Shatin Industrial Centre, 5-7 Yuen Shun Circuit, Shatin, New Territories, Hong Kong.

Owner: Chemlab American Ltd.

Date of Purchase: 29-11-1991

Purchased Price: HK$5,700,000

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
29-11-1991	-	Shanghai Commercial Bank Ltd., Hong Kong.	Mortgage to secure general banking facilities granted to Chemlab American Ltd. and Chemlab American Ltd. trading as Sang Hing Industrial Chemicals Co.

2. Property Location: Penthouse B & Roof of Penthouse B on 13/F., Claymore Garden,
3 Lok Fung Path, Shatin, New Territories, Hong Kong.

Owner: Mid-Sino Properties Ltd.

Date of Purchase: 22-03-1994

Purchased Price: HK$9,300,000 pt.

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
22-03-1994	-	Shanghai Commercial Bank Ltd., Hong Kong.	Legal charge to secure general banking facilities

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.03
UK Pound	1	Rs.72.98
Euro	1	Rs.62.94

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.