MIRA INFORM REPORT

Report Date :

10.02.2012

IDENTIFICATION DETAILS

Name :	MICHELLE ELECTRICAL SUPPLIES (HONG KONG) LTD.
Registered Office :	Room 902-903, 9/F., Yan Hing Centre, 9-13 Wong Chuk Yeung Street, Fotan, Shatin, New Territories
Country :	Hong Kong
Date of Incorporation :	20.08.1991
Com. Reg. No.:	14909169
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Wholesaler of Lighting products, cable and wires, etc.
No. of Employees :	30.

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 :	Good
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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 and address

MICHELLE ELECTRICAL SUPPLIES (HONG KONG) LTD.

ADDRESS: Room 902-903, 9/F., Yan Hing Centre, 9-13 Wong Chuk Yeung Street, Fotan, Shatin, New Territories, Hong Kong.

PHONE: 2694 7833

FAX: 2690 4777

E-MAIL: meshkltd@hkstar.com

sales@meshkltd.com

MANAGEMENT

Managing Director: Ms. Ho Sau May, Michelle

SUMMARY

Incorporated on: 20th August, 1991.

Organization: Private Limited Company.

Capital: Nominal: HK$2,000,000.00

Issued: HK$2,000,000.00

Business Category: Electrical Product Trader.

Employees: 30.

Main Dealing Banker: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

Banking Relation: Good.

ADDRESS

Registered Head Office:-

Room 902-903, 9/F., Yan Hing Centre, 9-13 Wong Chuk Yeung Street, Fotan, Shatin, New Territories, Hong Kong.

Affiliated Company:-

MAS Cables Ltd., Hong Kong.

BUSINESS REGISTRATION NUMBER

14909169

COMPANY FILE NUMBER

0322340

MANAGEMENT

Managing Director: Ms. Ho Sau May, Michelle

CAPITAL

Nominal Share Capital: HK$2,000,000.00 (Divided into 2,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$2,000,000.00

SHAREHOLDERS

(As per registry dated 20-08-2011)

Name		No. of shares
HO Sau May		1,800,000
AU Chi Chiu		200,000
		––––––––
	Total:	2,000,000 =======

DIRECTORS

(As per registry dated 20-08-2011)

Name (Nationality)	Address
HO Sau May	House No. 33, Villa Castell, 20 Yau King Lane, Tai Po, New Territories, Hong Kong.
AU Chi Chiu	House No. 33, Villa Castell, 20 Yau King Lane, Tai Po, New Territories, Hong Kong.

SECRETARY

HO Sau May (As per registry dated 20-08-2011)

HISTORY

The subject was incorporated on 20th August, 1991 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 Wholesaler.

Lines: Lighting products, cable and wires, etc.

Employees: 30.

Commodities Imported: China, etc.

Markets: Hong Kong, China, India, other Asian countries, Europe, North America, etc.

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

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

MEMBERSHIP

The Hong Kong & Kowloon Electric Trade Association, Hong Kong.

FINANCIAL INFORMATION

Nominal Share Capital: HK$2,000,000.00 (Divided into 2,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$2,000,000.00

Mortgage or Charge:-

Date of Charge Over Deposits - CD2 (10a): 25-02-2011

Amount: To secure the payment or discharge of all monies, obligations and liabilities

Property: (1) By fixed charge: all the Company’s rights in respect of the following (i) the sum deposited by the Company or for its benefit in the account or as evidence by deposit instrument or other evidence of indebtedness; and (ii) 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, on any account in the Company’s sole or joint names maintained with the Bank or any SCB Group Company including renewals of such sum. (2) By assignment: all deposits held with any SCB Group Company.

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

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.

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

Standing: Good.

GENERAL

Having issued 2 million ordinary shares of HK$1.00 each, Michelle Electrical Supplies (Hong Kong) Ltd. is jointly owned by Ms. Ho Sau May, holding 90% interests; and Mr. Au Chi Chiu, holding 10%. Ho and Au are also directors of the subject. They seem to be a couple.

The subject is trading in all kinds of electrical products.

In 1982, Ms. Ho Sau May founded Michelle Hardware Supplies Ltd., later renamed as the subject. The subject originally focused on the sales and distribution of materials required for electrical and mechanical engineering in building services.

In 1995, the subject produced its first brand, “HN-MES®”, a series of hot‑dipped galvanized steel conduits and accessories. In the first year of introduction, the subject successfully broke the monopoly of the market for hot-dipped galvanized steel conduits in Hong Kong by the Japanese brands “C.E.-Maruichi®” and “Nippon®” with its new brand. In November 1997, the subject obtained the sole supplier rights to “AEI”, the third largest brand for electric cables in the British markets. The combination of the production of its own brand, “HN-MES®”, and the supplier rights to “AEI” electric cables have made the subject a leading supplier of this kind of products.

The subject’s products are in conformity with the quality measures established by the International Electrotechnical Commission [IEC] standards, marking the shift from the British Standards from the colonial era. In 2005, all the subject’s products obtained the required certification and entered mass distribution. The Hong Kong government has implemented the IEC standards across the board. As of 30th April, 2009, market research indicated that “HN‑MES®” and “MAS®” were the only brands used in large quantities in large-scale construction projects that are IEC-certified.

The subject also has subsidiaries in China that focus on product design, material procurement, and assistance for the production of its brands, including: “HN-MES®” hot-dipped galvanized steel conduits and accessories, “HN-MES®” cable trunkings, cable trays, cable ladders, U-channels and accessories.

In 2005, the subject expanded its business to electric wires and cables with registered brand name “MAS” cables. Its product range covers general wirings and power cables with rated voltage less than 1000 Volt applied in building services. This includes conduit wirings, surface wiring cables, flexible cords, armoured power cables, rubber cables, fire resistant cables and eco cables. “MAS” cables also produce middle (upto 35V) and high voltage (upto 110V) power cables in main power supply system.

In addition, “MAS” cables concentrate special cables development and application in different industries such as oil pump cable for mining, cables for elevator, cables for welding machine, cable for automobiles, prefabricated branch cable for high-rise residential or commercial buildings, shipboard cables, signal cables, etc. All the products are products sold under the “HN‑MES®” and “MAS®” brands. Both brands have been awarded with the quality certifications and approval from multiple international standards institutions.

Currently, the two major brands and three product series under the subject supplies for the projects supervised by the Hong Kong Architectural Services Department, Hong Kong Electrical and Mechanical Services Department, Airport Authority of Hong Kong, and MTR. It also is widely used in residential, commercial (shopping malls, hotels, theme parks) projects, the hotels and casino in Macau, etc.

The subject’s products occupy the leading position in both the Hong Kong and Macau markets. According to the market sales research report from the Hong Kong Electrical Contractors’ Association, as of 31st December, 2008, the “HN-MES®” hot-dipped galvanized steel conduits and accessories had at least 65% market share, the electric wires and cable business had a 25% market share, and each occupies the first and third position respectively in its corresponding product series. The report also revealed that “HN-MES®” and “MAS®” were two of the most well-known brands among users in construction projects in Hong Kong and Macao.

The subject’s products also exported to Japan, India, other Asian countries, Europe, etc. Business is active.

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

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.29
UK Pound	1	Rs.78.10
Euro	1	Rs.65.59

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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