MIRA INFORM REPORT

Report Date :

21.12.2012

IDENTIFICATION DETAILS

Name :

ITEMA  (ASIA)  LTD

Formerly Known As :

SOMET (ASIA) LTD

Registered Office :

Room 808, 8/F.,
Tower 1, Enterprise Square, 9 Sheung Yuet Road, Kowloon Bay, Kowloon

Country :

Hong Kong

Date of Incorporation :

28.06.1994

Com. Reg. No.:

18344757

Legal Form :

Private Limited Company

Line of Business :

Importer and Exporter of all Kinds of Textile Machinery and Equipment

No. of Employees :

8 Employees

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: [email-masked] while quoting report
number, name and date.

ECGC Country Risk Classification List – June 30th,
2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Hong Kong

A2

A2

Risk Category

ECGC
Classification

Insignificant

A1

Low

A2

Moderate

B1

High

B2

Very High

C1

Restricted

C2

Off-credit

D

HONG KONG - ECONOMIC OVERVIEW

Hong Kong has a free market economy, highly dependent on
international trade and finance - the value of goods and services trade,
including the sizable share of re-exports, is about four times GDP. Hong Kong's
open economy left it exposed to the global economic slowdown that began in
2008. Although increasing integration with China, through trade, tourism, and
financial links, helped it to make an initial recovery more quickly than many
observers anticipated, it again faces a possible slowdown as exports to the
Euro zone and US slump. The Hong Kong government is promoting the Special
Administrative Region (SAR) as the site for Chinese renminbi (RMB)
internationalization. Hong Kong residents are allowed to establish
RMB-denominated savings accounts; RMB-denominated corporate and Chinese
government bonds have been issued in Hong Kong; and RMB trade settlement is
allowed. The territory far exceeded the RMB conversion quota set by Beijing for
trade settlements in 2010 due to the growth of earnings from exports to the
mainland. RMB deposits grew to roughly 7.8% of total system deposits in Hong
Kong by the end of 2011, an increase of over 59% since the beginning of the
year. The government is pursuing efforts to introduce additional use of RMB in Hong
Kong financial markets and is seeking to expand the RMB quota. The mainland has
long been Hong Kong's largest trading partner, accounting for about half of
Hong Kong's exports by value. Hong Kong's natural resources are limited, and
food and raw materials must be imported. As a result of China's easing of
travel restrictions, the number of mainland tourists to the territory has
surged from 4.5 million in 2001 to 28 million in 2011, outnumbering visitors
from all other countries combined. Hong Kong has also established itself as the
premier stock market for Chinese firms seeking to list abroad. In 2011 mainland
Chinese companies constituted about 43% of the firms listed on the Hong Kong
Stock Exchange and accounted for about 56% of the Exchange's market capitalization.
During the past decade, as Hong Kong's manufacturing industry moved to the
mainland, its service industry has grown rapidly. Growth slowed to 5% in 2011.
Credit expansion and tight housing supply conditions caused Hong Kong property
prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. Lower and
middle income segments of the population are increasingly unable to afford
adequate housing. Hong Kong continues to link its currency closely to the US
dollar, maintaining an arrangement established in 1983.

Source : CIA

COMPANY NAME & ADDRESS

ITEMA
(ASIA)  LTD.

ADDRESS: Room 808, 8/F.,
Tower 1, Enterprise Square, 9 Sheung Yuet Road, Kowloon Bay, Kowloon, Hong
Kong.

PHONE:                  2317
1212,  2317 1420

FAX:                       2317
1612

E-MAIL:                  [email-masked]

[email-masked]

MANAGEMENT

Managing
Director:  Ms. Lee Wing Yan, Eva

SUMMARY

Incorporated
on:                     28th
June, 1994.

Organization:                          Private
Limited Company.

Capital:                                  Nominal:     HK$10,000.00

Issued:       HK$10,000.00

Business Category:
Importer and Exporter.

Annual
Turnover:                    HK150~200
million.

Employees:                            8.

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

Banking
Relation:                    Satisfactory.

ADDRESS

Registered Head Office:-

Room 808, 8/F.,
Tower 1, Enterprise Square, 9 Sheung Yuet Road, Kowloon Bay, Kowloon, Hong
Kong.

Holding Company

ITEMA S.p.A.,
Italy.  [Formerly Promatech S.p.A.]

Ultimate Holding Company

ITEMA Holding
S.p.A., Italy.

Associated/Affiliated Companies

ITEMA Group of
Companies

ITEMA (Shanghai)
Textile Machinery Co. Ltd., China.

ITEMA
(Switzerland) Ltd., Switzerland.

ITEMA America
Inc., USA.

ITEMA International B.V., the Netherlands.

ITEMA Spinning
India Ltd., India.

ITEMA Weaving
(India) Private Ltd., India.

ITEMA Weaving
(Japan) Ltd., Japan.

ITEMA Weaving
Machinery (China) Co. Ltd., China.

Shandong Istma Textile Machinery Co. Ltd., China.

etc.

BUSINESS REGISTRATION NUMBER

18344757

COMPANY FILE NUMBER

0483728

MANAGEMENT

Managing
Director:  Ms. Lee Wing Yan, Eva

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

SHAREHOLDER

(As per registry dated 28-06-2012)

Name

No.
of shares

ITEMA S.p.A.

Via Cav. Gianni
Radici, n° 4 in Colzate (Bergamo), Italy.

10,000

=====

DIRECTORS

(As per registry dated 28-06-2012)

Name

(Nationality)

Address

LEE Wing Yan

Flat H, 5/F., Glamour Garden, 1-5 Chik Fai
Street, Shatin, New Territories, Hong Kong.

Giacomo SALA

Building N. 2-27G, 2128 Hua Shan Road,
Xuhui District, Shanghai, China.

Danilo Enrico
ARIZZI

Via M. Merisi 32/A, Albino (BG), Italy.

SECRETARY

(As per registry dated 28-06-2012)

Name

Address

Co.
No.

Forward
Secretarial Services Ltd.

Room 1117, 11/F., Hollywood Plaza, 610 Nathan Road, Mongkok, Kowloon,
Hong Kong.

0575813

HISTORY

The
subject was incorporated on 28th June, 1994 as a private limited liability
company under the Hong Kong Companies Ordinance.

Originally
the subject was registered under the name of Somet (Asia) Ltd., name changed to
the present style on 29th January, 2001.

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

OPERATIONS

Activities:
Importer and Exporter.

Lines:                                     All kinds of textile machinery and
equipment.

Brand Names:                       “Sultex”, “Somet”,
and “Vamatex”.

Employees:                             8.

Commodities
Imported:
Europe, China and other foreign advanced countries.

Markets:                                 China, Taiwan, other Asian
countries, Europe, etc.

Annual
Turnover:
HK150~200 million.

Terms/Sales:                          L/C or as per contracted.

Terms/Buying:                      As
per contracted.

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

Indebtedness:  HK$677,000.00  (Total amount outstanding on all
mortgages and charges as per last Annual Return dated 28-06-2012)

Mortgage or
Charge:  (See attachment)

Profit or Loss:    Making a small profit every
year.

Condition:  Keeping in a normal condition.

Facilities:  Making rather active use of general
banking facilities.

Payment:  Met trade commitments as contracted.

Commercial
Morality:  Satisfactory.

Bankers

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

Intesa Sanpaolo
S.p.A., Hong Kong Branch.

Standing:  Good.

GENERAL

ITEMA
(Asia) Ltd. is a wholly-owned subsidiary of ITEMA S.p.A. (formerly known as
Promatech S.p.A.), an Italy-based firm which in turn is a subsidiary of ITEMA
Holding S.p.A., also an Italy-based company.  The subject is a member of the ITEMA
Group and has got the ISO9001 certification.

ITEMA
Group is an international textile machinery and equipment provider.  Its history is more than 150 years in
Europe.  It is a leading global
textile machinery group that was established in December 2001 following the
merger of some important firms working in the various sectors on this market.  The subject is trading in the
Group’s products.

ITEMA
Group is providing the following textile machinery and equipment in 4 different
business areas:-

ITEMA Weaving —
Fabric forming solutions including weaving machines, weaving accessories,
spare parts and services.
Leading brands carried are “Sulzer Textil”,
“Somet”, “Vamatex” and “Fimtextile”;

ITEMA Spinning —
Thread forming solutions including spinning, winding and twisting
machines, accessories, spare parts and services.  Leading brand carried is “Savio”;

ITEMA Electronics —
Electronic technology solutions including joint development and
manufacturing of components.
Leading brands carried are “Eutron”, “Loepfe”,
“BMS Vision” and “Sedo”;
&

ITEMA Knitting —
Fabric forming solutions including knitting machines, accessories, spare
parts and services.  Leading
brand carried is “Steiger”.

The
subject is trading in the following main products and brand names:-

Brand
Name

Brand
Product/Service

Brand
Remarks

Somet
(Brand Owner)

Machine
– Weaving

Rapier
and air jet

Vamatex
(Brand Owner)

Machine
– Weaving

Rapier
and air jet

The
subject’s products are marketed in China, exported to Japan, Taiwan,
Southeast Asia, other Asian countries, etc.  It belongs to the division of
“ITEMA Weaving”.

The
subject has had a wholly-owned subsidiary in China known as ITEMA Weaving
Machinery (China) Co. Ltd. [ITEMA Shanghai] which is in Shanghai.  This firm is engaged in manufacturing
rapier weaving machines.  Currently,
it has about 100 employees.

ITEMA
Weaving (textile machines and accessories) with the 4 product brands “Itema
Shanghai”, “Somet”, “Sulzer Textil”,
“Vamatex”, finally “First” and
“Fimtextile” for the accessories.

ITEMA
Group’s companies working on the foreign markets are ITEMA Shanghai,
Shandong Istma Textile Machinery Co. Ltd., ITEMA Spinning India Ltd., ITEMA America
Inc., etc.  Constantly committed to
research and implementing important new products, ITEMA Group has an approach
to the market that sees the customer as its benchmark.  With constant annual investments between
4% and 5% of total group turnover, ITEMA Group’s R&D centres have
cutting edge means at their disposal for carrying out research, designing,
building and experimenting new prototypes and applications.  An area of excellence that can count on
a team of specialized technicians and engineers and on relation networks at
international level with some of the most illustrious research institutes.  Even at production level ITEMA Group
reaches parameters of absolute excellence in all its 4 area of business, guaranteeing
a comprehensive range, maximum quality standards, production flexibility and a
widespread presence on the relevant markets the world over.

In
2009, the Group’s associate Sultex Ltd. changed name to ITEMA
(Switzerland) Ltd. a manufacturer of weaving machinery and member of the
Italy-based ITEMA Group and has moved its headquarters from Ruti to
Wetzikon.  The changes were part of
structural moves at ITEMA to merge Promatech, Sultex, Itema Weaving Machinery
(China) and First S.p.A. into one streamlined company with a single
headquarters location sharing management, marketing, sales and service
functions with an integrated data system and supply chain.  The consolidation was previously
announced during ITMA Asia + CITME 2008 in Shanghai, China.

The
Shanghai firm is managed by Mr. Giacomo Sala who is an Italian.  Sala is also a director of the subject.

In
2011, the Group’s Promatech S.p.A. changed name to ITEMA S.p.A. which is
currently the parent company of the subject.

The
Group exhibited its ITEMA products at ITMA ASIA + CITME 2012.

The
most recent important event for the company was the opening of ITEMA India Ltd.
which was held September 24, in Coimbatore, India.  ITEMA India, which is located in a new
1,600-square-meter building, provides sales and marketing functions including a
showroom, after-sales and spare-parts service and an electronic circuit board
repair centre and training centre for end-user technicians for the Somet,
Vamatex and Savio companies.

From
the ITEMA India headquarters in Coimbatore, offices in Mumbai, Gunthur and
Delhi which operate in the relevant areas with support of seven representative
agencies are coordinated.  ITEMA
India employs a total of 87 people, 63 of which are dedicated to customer
service.  If necessary, these
customer service agents can cover other Middle and Far East countries from
Turkey to Iran and Indonesia.

The
annual sales turnover of the subject ranges from HK$150 to 200 million.  Business is rather active.  Making a small profit every year.

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

On
the whole, in view of the background and parentage of the subject, consider it
good for normal business engagements.

MORTGAGE OR CHARGE

Date

Particulars

Amount

28-08-2002

Instrument:      Trade
Finance Security Deed

Property:

By the Deed, all
the Company’s right, title, interest and benefit to and in all and any
moneys now or at any time due or owing to the Company

Mortgagee:      IntesaBci
S.p.A., Hong Kong Branch.
[Renamed to Banca Intesa S.p.A. and further to Intesa Sanpaolo S.p.A.]

All the Company’s obligations and liabilities

21-04-2010

Instrument:      Security
Over Deposits

Property:

A deposit with chargee in the amount of
HK$500,000.00 or its equivalent in other foreign currencies under Deposit A/C
No. 508-188885, whatever currency it may subsequently be denominated in, any
renewal of such deposit and the interest thereon together with any further
monies in any deposit account with the chargee at any of its offices

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

Amount secured – (i) all monies in any currency owing by the
Company to the chargee at any time, actually or contingently, in any
capacity, alone or jointly with any other person; (ii) interest on such
monies, to the date on which the chargee receives payment, at the rates payable
by the Company or which would have been payable but for any circumstance
which restricts payment and (iii) all expenses of the chargee in perfecting
or enforcing the charge

31-07-2012

Instrument:      Security
Agreement over Bank Account

Property:

By way of a
first fixed charge all of the Chargor’s rights in respect of any amount
standing to the credit of the Account from time to time & the debt
represented by it

Mortgagee:      Standard
Chartered Bank (Hong Kong) Ltd., Hong Kong.

To secure the payment & satisfaction of all present & future
obligation & liabilities

FOREIGN EXCHANGE RATES

Currency

Unit

Indian
Rupees

US Dollar

1

Rs.55.84

UK Pound

1

Rs.89.11

Euro

1

Rs.72.46

INFORMATION DETAILS

Report
Prepared by :

SDA

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.