MIRA INFORM REPORT

Report Date :

16.11.2012

IDENTIFICATION DETAILS

Name :	DEVI RESOURCES LTD.
Registered Office :	Room 2305, 23/F., CCT Telecom Building, 11 Wo Shing Street, Fo Tan, Shatin, New Territories
Country :	Hong Kong
Date of Incorporation :	12.10.2009
Com. Reg. No.:	51273185
Legal Form :	Private Limited Company.
Line of Business :	Importer, Wholesaler and Re-exporter of Foodstuffs, chemicals, pharmaceuticals, etc.
No. of Employees :	10. (including associate)

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 (31.03.2012)	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 and address

DEVI RESOURCES LTD.

ADDRESS: Room 2305, 23/F., CCT Telecom Building, 11 Wo Shing Street, Fo Tan, Shatin, New Territories, Hong Kong.

PHONE: 2679 0040, 2670 7851, 2679 0519

FAX: 2639 5376, 2690 5201, 2687 5002

E-MAIL: devihkg@netvigator.com

MANAGEMENT

Managing Director: Mr. Alwarpillai Nanthakumar

SUMMARY

Incorporated on: 12th October, 2009.

Organization: Private Limited Company.

Capital: Nominal: HK$10,000,000.00

Issued: HK$8,000,000.00

Business Category: Importer, Wholesaler and Re-exporter.

Employees: 10. (including associate)

Main Dealing Banker: Bank of India, Hong Kong Branch.

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

Room 2305, 23/F., CCT Telecom Building, 11 Wo Shing Street, Fo Tan, Shatin, New Territories, Hong Kong.

Overseas Offices:-

Shenzhen Office
20B, Daxin Building, Baoan South Road, Luohu District, Shenzhen, China.
Tel: 86-755-2557 9418
Fax: 86-755-8211 7558
E-mail: devichina@szonline.net

Jinxiang Office
Jinxiang County, ShandongProvince, China.
Tel: 86-537-872 6786
Fax: 86-537-872 6786

Sri Lanka Office
125 Bank Shali Street, Colombo 11, Sri Lanka.
Tel: 9411-2432443, 2437453
Fax: 9411-2432444
E-mail: devi@devi.wow.lk

London Office
Tel: 44 795 7356423, 44 208 2035163
E-mail: ahmed@somapuk.co.uk

Associated/Affiliated Companies:-

Advant Technologies Inc., India.

Devi Mineral Resources (I) Pvt. Ltd., India.

Devi Trading Co. Ltd., Shenzhen SEZ, China.

Devi Trading Co. Ltd., Hong Kong.

Devi Trading Co. Ltd., Sri Lanka.

Devi Trading Company, Hong Kong.

Devi Trading Co. Ltd., United Kingdom.

Devi Trading Inc., USA.

Devi Trading Co. Ltd. (Jinxiang), China.

Xuzhou Elegant Food Grower Co. Ltd., China.

BUSINESS REGISTRATION NUMBER

51273185

COMPANY FILE NUMBER

1381065

MANAGEMENT

Managing Director: Mr. Alwarpillai Nanthakumar

CAPITAL

Nominal Share Capital: HK$10,000,000.00 (Divided into 10,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$8,000,000.00

SHAREHOLDER

(As per registry dated 12-10-2011)

Name	No. of shares
Nanthakumar ALWARPILLAI	8,000,000 =======

DIRECTOR

(As per registry dated 12-10-2011)

Name (Nationality)	Address
Nanthakumar ALWARPILLAI	Flat E, 15/F., Block 5, Royal Ascot, 1 Tsun King Road, Shatin, New Territories, Hong Kong.

SECRETARY

(As per registry dated 12-10-2011)

Name	Address	Co. No.
RJA Management Ltd.	Room A & B, 2/F., Lee Kee Commercial Building, 221-227 Queen’s Road, Central, Hong Kong.	1044456

HISTORY

The subject was incorporated on 12th October, 2009 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of China Power & Resources Ltd., name changed to the present style on 20th January, 2010.

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

OPERATIONS

Activities: Importer, Wholesaler and Re-exporter.

Lines: Foodstuffs, chemicals, pharmaceuticals, etc.

Employees: 10. (including associate)

Commodities Imported: Imported from India, Sri Lanka, etc.

Markets: Hong Kong, China, Pakistan, India, Sri Lanka, etc.

Annual Turnover: Un-reported.

Terms/Sales: As per contracted.

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

FINANCIAL INFORMATION

Nominal Share Capital: HK$10,000,000.00 (Divided into 10,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$8,000,000.00

Mortgage or Charge (Since September 2011): (See attachment)

Profit & Loss: Business is profitable.

Condition: Keeping in a rather active state.

Facilities: Making active use of general banking facilities.

Payment: Met trade commitments on time.

Commercial Morality: Satisfactory.

Banker: Bank of India, Hong Kong Branch.

Standing: Normal.

GENERAL

Having issued 8 million ordinary shares of HK$1.00 each, Devi Resources Ltd. is wholly-owned by Mr. Nanthakumar ALWARPILLAI who is a Sri Lankan. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently. He is also the only director of the subject.

The subject has had an associated company Devi Trading Co. Ltd. [DTCL] which is also located at the same operating address.

The subject and DTCL are engaged in the same lines of business, more or less.

DTCL is engaged in the following business scope:-

· Mines Management

· Ship Chartering

· Iron Ore Exporting

· Commodities Trading

· IT Services Offering

· Scrap Recycling

Currently, the subject is trading the following commodities and offering clients with the following services:-

Product/Service	Product/Service Remarks
Yarns, Piecegoods and Textiles
Piecegoods – Blended
Food and Beverage
Sauce and Seasoning
Spice	Include cassia, StarAniseed (Exporter) Include cassia, StarAniseed (Importer)
Sesame Seed
Raw Materials
Non-Ferrous Metal
Ferrous Metal
Minerals	Iron ore, chrome ore, maganese ore, mill scale, copper ore (Exporter) Iron ore, chrome ore, maganese ore, mill scale, copper ore (Importer)
Agricultural Products, Livestock and Poultry
Fruits and Vegetables	Garlic, ginger, potato, onion (Importer) Garlic, ginger, potato, onion (Exporter)
Chemicals (Including Plastic Materials)
Industrial Chemicals
Waste and Scrap
Metal Scrap

The subject’s commodities are mainly imported from India, Sri Lanka and Europe. Principal markets are Hong Kong, China and elsewhere such as Pakistan, Nepal, etc. However, most of its products are re-exported to China.

DTCL has got some affiliated factories in Shenzhen Special Economic Zone, China. The subject acquires finished products from these factories and re-exports to India, Sri Lanka, Pakistan, Bangladesh, etc.

Currently, DTCL has set up three offices in China — Jinxiang, Shenzhen and Xuzhou. Other offices are in Sri Lanka and London of the United Kingdom.

The subject has got an affiliate Devi Trading Company which is also located at the operating address of the subject. Founded in December 1994 and bearing the Business Registration No. 18706967, Devi Trading Company was solely founded and owned by Mr. Alwarpillai Nanthakumar. It is engaged in the same lines of business as the subject.

The subject’s main office (hereinafter is referred to Devi) was set up in Sri Lanka in 1971 by Mr. A. Vengadasalam. Devi is trading in iron ore, steel, agro, chemicals and pharmaceuticals. Since then, it has built up a rather good business reputation and global network extending to Asia, South America, Australia and New Zealand serving its customers worldwide.

The net turnover of Devi Group grew to US$130 million in 2007. Now, the net turnover of Devi Group ranges from US$140 to 150 million. Making a good profit in some of the past years.

The subject is fully supported by the Devi Group.

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

MORTGAGE OR CHARGE

(Since September 2011)

Date	Particulars	Amount
08-09-2011	Instrument: Charge and Hypothecation of Book Debts Property: Hypothecation and charge to the Bank by way of charge on all the book debts outstanding,moneys receivable, claims and bills Mortgagee: Bank of India, Hong Kong Branch.	US$5,000,000.00
08-09-2011	Instrument: Hypothecation of Tangible Moveable Property Property: All tangible moveable assets of borrower including in particular Furniture, Fixture, Plant & Machinery and stocks of all goods of Iron ores, ferrous and non ferrous scrap, steel product etc. Mortgagee: Bank of India, Hong Kong Branch.	US$5,000,000.00
08-09-2011	Instrument: General Letter of Hypothecation Property: Bills of exchange, and / or invoices, or any other documents representing or relating to goods. Mortgagee: Bank of India, Hong Kong Branch.	All the money
03-10-2011	Instrument: Letter of Lien Property: Nature of Deposit: TDR Date of Deposit: 03-10-2011 Amount: US$1,250,000.00 Due Date: 03-10-2012 Rate of Interest: 1.55% Mode of Payment of Interest: Maturity Mortgagee: Bank of India, Hong Kong Branch.	US$5,000,000.00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.93
UK Pound	1	Rs.87.38
Euro	1	Rs.69.93

INFORMATION DETAILS

Report Prepared by :

PDT

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.