MIRA INFORM REPORT

Report Date :

12.10.2011

IDENTIFICATION DETAILS

Name :	DK METAL WORLD LTD.

Formerly Known As :	KR Metals Ltd.,

Registered Office :	Flat B4, 15/F., Prat Mansion, 26-36 Prat Avenue, Kowloon

Country :	Hong Kong

Date of Incorporation :	09.04.2005

Com. Reg. No.:	35506518

Legal Form :	Private Limited Company

Line of Business :	Importer, Exporter and Wholesaler of all kinds of alloy products

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

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 – 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

DK METAL WORLD LTD.

Company ADDRESS

Flat B4, 15/F., Prat Mansion, 26-36 Prat Avenue, Kowloon, Hong Kong.

PHONE: 2312 1660

FAX: 2312 1662

MANAGEMENT

Managing Director: Mr. Sanjay Arya

SUMMARY

Incorporated on: 9th April, 2005.

Organization: Private Limited Company.

Capital: Nominal: HK$200,000.00

Issued: HK$10,000.00

Business Category: Importer, Exporter and Wholesaler.

Employees: Nil.

Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Banking Relation: Satisfactory.

COMPANY ADDRESS

Registered Head Office:-

Flat B4, 15/F., Prat Mansion, 26-36 Prat Avenue, Kowloon, Hong Kong.

BUSINESS REGISTRATION NUMBER

35506518

COMPANY FILE NUMBER

0962064

MANAGEMENT

Managing Director: Mr. Sanjay Arya

CAPITAL

Nominal Share Capital: HK$200,000.00 (Divided into 200,000 shares of HK$1.00 each)

Issued Share Capital: HK$10,000.00

SHAREHOLDERS

(As per registry dated 09-04-2011)

Name		No. of shares
Rajesh Popatlal GALA		5,000
Sanjay ARYA		5,000
		––––––
	Total:	10,000 =====

DIRECTORS

(As per registry dated 09-04-2011)

Name (Nationality)	Address
Sanjay ARYA	804, B-Wing, Magnam Vasant Marvel Western, Express Highway Borivali-E, Mumbai-66, M.S., India.
Rajesh Popatlal GALA	A/103, Satyam, Simpoli Road, Borivali (West), Mumbai‑L100092, India.

Name

(Nationality)

Address

Sanjay ARYA

804, B-Wing, Magnam Vasant Marvel Western, Express Highway Borivali-E, Mumbai-66, M.S., India.

Rajesh Popatlal GALA

A/103, Satyam, Simpoli Road, Borivali (West), Mumbai‑L100092, India.

SECRETARY

(As per registry dated 09-04-2011)

Name	Address	Co. No.
VMC Secretaries Ltd.	Room 1617-1618, 16/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon, Hong Kong.	0750831

HISTORY

The subject was incorporated on 9th April, 2005 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of KR Metals Ltd., name changed to the present style on 18th October, 2007.

Formerly the subject was located at Room 1617-1618, 16/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon, Hong Kong where is the operating office of VMC Secretaries Ltd. The subject moved to the present address with effect from 16 January, 2011.

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

OPERATIONS

Activities: Importer, Exporter and Wholesaler.

Lines: All kinds of alloy products.

Employees: Nil.

Commodities Imported: India, Middle East, South America, etc.

Markets: Japan, Europe, US, etc.

Terms/Sales: L/C, T/T, etc.

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

FINANCIAL INFORMATION

Nominal Share Capital: HK$200,000.00 (Divided into 200,000 shares of HK$1.00 each)

Issued Share Capital: HK$10,000.00

Mortgage or Charge:-

Date of Assignment of DC Proceeds: 17-05-2011

Amount: All loans or other advances made or to be made by the Bank to the

Customer against documents submitted under a Documentary Credit, all monies and liabilities in any currency owing by the Customer to the Bank at any time, whether separately or jointly, actually or contingently, present or future, interest on all loans and advances and such monies and all expenses of the Bank in perfecting or enforcing the Assignment

Property: By way of assignment or agreement to assign in each case as beneficial

owner. All monies in any currency representing proceeds payable or to be paid to the Customer under the Documentary Credits, all the Customer’s right, title, benefit and interest in the said Documentary Credits, the benefit of all powers and remedies for enforcing the Documentary Credits and any payment made pursuant to the contract for sale of goods in connection with which the Documentary Credit is issued.

Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

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

Condition: Business is not very active in Hong Kong.

Facilities: Making fairly active use of general banking facilities.

Payment: Met trade commitments as contracted.

Commercial Morality: Satisfactory.

Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Standing: Small.

GENERAL

DK Metal World Ltd. has issued 10,000 ordinary shares of HK$1.00 each which are equally owned by Mr. Rajesh Popatlal Gala and Mr. Sanjay Arya, both of whom are Indian. Being India passport holders and residing in India, the two shareholders are also directors of the subject.

The subject does not have its own operating office. Its registered office was in a secretarial service firm located at Room 1617-1618, 16/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon, Hong Kong known as VMC Secretaries Ltd. [VMC] which is handling its correspondences and documents. VMC is also the corporate secretary of the subject. With effect from 16 January, 2011, the subject’s registered address moved to Flat B4, 15/F., Prat Mansion, 26-36 Prat Avenue, Kowloon, Hong Kong. This office is not in a commercial building but a residential building. This address may also be the residence of the two shareholders when they are in Hong Kong.

The subject has no employees in Hong Kong.

To our knowledge, the subject is trading in the following products:

Ferro manganese (ELC, LC, MC, HC), ferro chrome (ELC, LC, HC), ferro molybdenum, ferro titanium, silicon manganese, stabilised ferro silicon, manganese oxide, etc.

These alloys are widely used in manufacturing tools. Some of these products are de‑oxidizers, de-nitrogenator, etc. Commodities are sourced from India, the United Arab Emirates, Russia, South America, etc. Prime markets are Japan, European countries and the United States. The following companies are two of the subject’s US buyers:-

· Tremond Alloys & Metals GRP Corporation

· R. L. Swearer Co. Inc.

It is likely that the subject has got an affiliated company in Mumbai, India which is also operated by the two shareholders. This affiliated company is also a metal and alloy trading firm.

It was reported that the subject has had an office in China.

The India firm deals with foreign parties under the name of the subject and let foreign firms correspond with the subject’s registered address in Hong Kong. Besides, the India firm 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 seems not very active. History in Hong Kong is over six years and six months.

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.03
UK Pound	1	Rs.76.60
Euro	1	Rs.66.80

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%)

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