MIRA INFORM REPORT

Report Date :

29.12.2012

IDENTIFICATION DETAILS

Name :	GOFRONT HOLDING LTD.
Registered Office :	Room 13, 21/F., Peninsula Tower, 538 Castle Peak Road, Cheung Sha Wan, Kowloon
Country :	Hong Kong
Date of Incorporation :	05.10.1995
Com. Reg. No.:	19401093
Legal Form :	Private Limited Company.
Line of Business :	Importer, Exporter and Manufacturer of Yarn & fabric dyeing and finishing machines, etc.
No. of Employees :	8

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: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	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 and address

GOFRONT HOLDING LTD.

ADDRESS: Room 13, 21/F., Peninsula Tower, 538 Castle Peak Road, Cheung Sha Wan, Kowloon, Hong Kong.

PHONE: 2393 2208

FAX: 2381 9656

E-MAIL: gf@gofront.com.hk

MANAGEMENT

Managing Director: Mr. Siu Chun Lam

SUMMARY

Incorporated on: 5th October, 1995.

Organization: Private Limited Company.

Capital: Nominal: HK$10,000.00

Issued: HK$10,000.00

Business Category: Importer, Exporter and Manufacturer.

Annual Turnover: US$30-40 million.

Employees: 8.

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

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

Room 13, 21/F., Peninsula Tower, 538 Castle Peak Road, Cheung Sha Wan, Kowloon, Hong Kong.

Associated Companies:-

Guangzhou Panyu Gofront Dyeing & Finishing Machinery Manufacturer Ltd., China.

MSC & Gofront China Ltd., China.

BUSINESS REGISTRATION NUMBER

19401093

COMPANY FILE NUMBER

0527178

MANAGEMENT

Managing Director: Mr. Siu Chun Lam

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 05-10-2012)

Name	No. of shares
SIU Chun Lam	10,000 =====

DIRECTOR

(As per registry dated 05-10-2012)

Name (Nationality)	Address
SIU Chun Lam	Flat A, 32/F., Tower 5, Manhattan Hill, 1 Po Lun Street, Lai Chi Kok, Kowloon, Hong Kong.

SECRETARY

(As per registry dated 05-10-2012)

Name	Address	Co. No.
Right Point Accountancy & Secretaries Ltd.	Rooms 1506-1508, 15/F., Laws Commercial Plaza, 788 Cheung Sha Wan Road, Kowloon, Hong Kong.	0784052

HISTORY

The subject was incorporated on 5th October, 1995 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, Exporter and Manufacturer.

Lines: Yarn & fabric dyeing and finishing machines, etc.

Employees: 8.

Commodities Imported: China, etc.

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

Annual Turnover: US$30-40 million.

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

Mortgage or Charge (since 2006): (See attachment)

Profit or Loss: Making a small profit every year.

Condition: Keeping in a satisfactory manner.

Facilities: Making rather active use of general banking facilities.

Payment: Met trade commitments as required.

Commercial Morality: Satisfactory.

Bankers:-

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

Hang Seng Bank Ltd., Hong Kong.

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

Standing: Normal.

GENERAL

Having issued 10,000 ordinary shares of HK$1.00 each, Gofront Holding Ltd. is wholly owned by Mr. Siu Chun Lam who is a Hong Kong merchant. He is also the only director of the subject.

The subject is specialized in manufacturing quality High Temperature and Pressure Packaging Dyeing Machine. Its main objective is to design and manufacture pressure vessels for use in Textiles, Chemicals, Pharmaceuticals, Foodstuffs, and other similar industries.

It has its own factory with 8,000 sq.m. and have 250 workers in Panyu, Guangzhou City, Guangdong Province, China. Formally known as Guangzhou Panyu Gofront Dyeing & Finishing Machinery Manufacturer Ltd., this firm has been granted “Manufacture Qualification Certificate” of BR-1 Grade - I, II category, Serial No. RB1-40 issued by the Labour Department of Guangdong Province, China. The manufacturing facilities include highly‑technical equipment, i.e., L.A.S.E.R. plate cutting machine, automatic welding machine, plasma welding machine, sand-blast finishing machine, etc. The factory at present is specialized in the production of yarn and fabric dyeing machines for the textile industry, both for domestic and overseas markets. Its aim is to achieve international recognition through its continuing R&D efforts and coordination with customers by introducing cost‑effective machines and processing techniques.

The subject now has set up branch offices in Shanghai, Qingdao ,Tianjin of China. It has been serving its customers for over 10 years.

The followings are the main products of the subject:-

All kinds of Pressure Vessels, etc.;

Machine - Dyeing & Bleaching (Yarn dyeing/spray hank dyeing, fabric dyeing); &

Spare Part - Textile Machine (Mechanical seal).

Products are marketed in Hong Kong, China and exported to Australasia, Central & South America, Japan, South Korea, North America, Southeast Asia, Taiwan, Western Europe, etc. Business is rather active.

The annual sales turnover of the subject ranges from US$30 to 40 million. Making a small profit every year.

As the history of the subject is over 17 years in Hong Kong, on the whole, consider it good for normal business engagements.

MORTGAGE OR CHARGE

(Since 2006)

Date	Particulars	Amount
20-09-2006	Instrument: Charge Over Securities Property: 1) Any interests, rights, title or property owned by the company 2) All dividends, interest, distributions & other moneys derived therefrom; and 3) All accretions, allotments, and other benefits accruing or arising in respect thereof Mortgagee: Hang Seng Bank Ltd., Hong Kong.	To secure all monies in any currency owing by the Company to the Bank at any time, actually or contingently, in any capacity, alone or jointly with any other person
13-12-2006	Instrument: Charge Over Deposits - CD 1 Property: 1) By fixed charge:- All the company’s rights in respect of the following (a) The sums deposited by the company or for its benefit in the account or as evidenced by deposit instruments or other evidence of indebtedness specified in the annexed schedule, including additions to or renewals or replacements of such sums in any currency, & b) All other sums in any currency from time to time standing to the credit of the company or the credit of any other person for the company’s benefit, whether alone or jointly with others, on any deposit account with the Bank or any other SCB Group Company including additions to or renewals or replacements of such sums 2) By assignment:- All Deposits held with any SCB Group Company Mortgagee: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.	To secure the payment or discharge of all moneys, obligations & liabilities
13-12-2006	Instrument: A Charge Over Securities - Sec 1 (05) Property: 1) All the company’s rights, title & interest in ant to: A) All stock, shares, bonds, debentures, certificates of deposit, promissory notes, units in any trust, units or other interests in any collective investment scheme & other securities of any kind whatsoever which, or the certificated or other documents of or evidencing title, or the right to title, to which, are for the time being or from time to time i) deposited with transferred to or registered in the name of the Bank or its nominees by the company or on the company’s behalf or on the company’s instructions or otherwise held by any person directly or indirectly to the Bank’s order ii) Lodged with or held by any depository or recorded by any depository as held by it for the account of the Bank or its nominees iii) Transferred to or held in any account with any clearance or settlement system for the account of the Bank or its nominees; and B) All securities listed in the schedule to the Charge Mortgagee: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.	All moneys, obligations and liabilities
11-08-2009	Instrument: Charge Over Deposits/Securities (2-Parties) Property: The Chargor charges by way of first fixed charge to the Bank all the right, title & interest of the Chargor in and to the Charged Assets Mortgagee: Hang Seng Bank Ltd., Hong Kong.	To secure owing all monies in any currency by the company to the Bank at any time, actually or contingently, in any capacity, alone or jointly with any other person
31-08-2011	Instrument: Assignment of Insurance Policy Property: All the rights, title, benefits & interests of the Borrower in and to the Policy & the Proceeds, whether in existence at the date of the Assignment of after the date of the Assignment Name of the Insured: Siu Chun Lam Policy No. 30884086 Effective date of the Policy: 19th August, 2011 Mortgagee: Hang Seng Bank Ltd., Hong Kong.	To secure all sums of money, debt & liabilities whether certain or contingent, whether at the date of the Assignment or at any time after the date of the Assignment owing or incurred to the Assignee anywhere in the world

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.85
UK Pound	1	Rs.88.39
Euro	1	Rs.72.63

INFORMATION DETAILS

Report Prepared by :

PRL

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.