MIRA INFORM REPORT

Report Date :

28.11.2012

IDENTIFICATION DETAILS

Name :	K. WAH INTERNATIONAL LTD.
Registered Office :	Room 2302, 23/F., Chung Kiu Commercial Building, 47-51 Shantung Street, Kowloon
Country :	Hong Kong
Date of Incorporation :	07.08.1984
Com. Reg. No.:	09153800
Legal Form :	Private Limited Company.
Line of Business :	Importer and Exporter of Special valves for power plants, etc.
No. of Employees :	07 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: 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

K. WAH INTERNATIONAL LTD.

Company ADDRESS

Room 403-404, 4/F., Gee Tuck Building, 18 Bonham Strand, Central, Hong Kong.

PHONE: 2511 7451, 2507 3069

FAX: 2507 4599

E-MAIL: kwah0pcl@netvigator.com

MANAGEMENT

Managing Director: Ms. Leung Kit Fun

SUMMARY

Incorporated on: 7th August, 1984.

Organization: Private Limited Company.

Capital: Nominal: HK$1,000,000.00

Issued: HK$681,468.00

Business Category: Importer and Exporter.

Employees: 7.

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

Banking Relation: Satisfactory.

Company ADDRESS

Registered Office:-

Room 2302, 23/F., Chung Kiu Commercial Building, 47-51 Shantung Street, Kowloon, Hong Kong.

Head Office:-

Room 403-404, 4/F., Gee Tuck Building, 18 Bonham Strand, Central, Hong Kong.

P.O. Box: GPO Box 6556, Hong Kong.

China Offices:-

Beijing, Shanghai, Guangzhou, Chengdu.

Overseas Office:-

K. Wah International Ltd. UK Office, UK.

Retailing Shop:-

G/F., 12B Stewart Road, Wanchai, Hong Kong.

Associated Companies:-

A-T Armaturen Ltd., Hong Kong.

Bomafa Armaturen Ltd., Hong Kong.

BUSINESS REGISTRATION NUMBER

09153800

COMPANY FILE NUMBER

0140119

MANAGEMENT

Managing Director: Ms. Leung Kit Fun

CAPITAL

Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$681,468.00

SHAREHOLDERS

(As per registry dated 07-08-2012)

Name		No. of shares
WAN Kin Shing		661,418
LEUNG Kit Fun		20,050
		–––––––
	Total:	681,468 ======

DIRECTORS

(As per registry dated 07-08-2012)

Name (Nationality)	Address
WAN Kin Shing	G/F., 12B Stewart Road, Wanchai, Hong Kong.
LEUNG Kit Fun	G/F., 12B Stewart Road, Wanchai, Hong Kong.

SECRETARY

LEUNG Kit Fun (As per registry dated 07-08-2012)

HISTORY

The subject was incorporated on 7th August, 1984 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 and Exporter.

Lines: Special valves for power plants, etc.

Employees: 7.

Commodities Imported: Foreign advanced countries.

Markets: Hong Kong, China, other Asian countries, etc.

Terms/Sales: As per contracted.

Terms/Buying: As per contracted.

FINANCIAL INFORMATION

Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$681,468.00

Profit or Loss: Operation is conducted on a profitable basis.

Condition: Maintained in a satisfactory manner.

Facilities: Is making use of general banking facilities.

Payment: Met as agreed.

Commercial Morality: Satisfactory.

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

Standing: Good.

GENERAL

K. Wah International Ltd. is jointly owned by Mr. Wan Kin Shing, holding 97.1% interests, and Ms. Leung Kit Fun, holding 2.9%. Being Hong Kong merchants, Wan and Leung are also directors of the subject.

The subject is trading in all kinds of special valves for power plants, etc. It is the agent for Schroedahl-Arapp Spezialarmaturen GmbH & Co. KG [Schroedahl] which is a Germany-based firm. Schroedahl is supplying the subject with pump protection valves, control valves and spare parts.

Schroedahl is a worldwide established company with decades of experience in the development and production of high quality speciality valves for power plants, industrial facilities as well as exploration and production systems in oil and gas applications.

The subject has had a retailing shop located at G/F., 12B Stewart Road, Wanchai, Hong Kong retailing Schroedahl’s products.

Products are marketed in Hong Kong, re-exported to China and the other Asian countries. China is its prime market.

The subject has had a specific trade mark for pumps and valves delivered to China Projects which carries a life time service guarantee. Its Pumps ,Valves and Actuators are used in almost every industry including Power, Nuclear, Gas and Oil, Refining, Petrochemical, Chemical Processing, Pulp and Paper, Mining, Steel, Pharmaceuticals.

Now, the subject has set up offices in China’s large cities such as Beijing, Shanghai, Guangzhou of Guangdong Province, Chengdu of Sichuan Province. Besides, the subject also has had an office in the United Kingdom.

The overall business of the subject is satisfactory and improving.

The subject has had an associated company A-T Armaturen Ltd. [A‑T Armaturen] which is a Hong Kong-registered firm. The managing director of this firm is Mr. Victor Wan Kin Shing. A-T Armaturen trades in the same products as the subject. The followings are the products it traded:-

FOR POWER GENERATION INDUSTRY-

l Turbine Bypass System

l HP Preheater Bypass System

l Quick Close Check Valve

l Gate Globe Check Valve

FOR OIL & GAS INDUSTRY-

l Trunnion Ball Valve

l Metal Seat Butterfly Valve

l WellHead Shut Down Valve

l Pump Protection Valve & Minimum Flow Protection Valve

FOR PROCESS INDUSTRY-

l Steam Conditioning Valve

l Globe Control Valve

All the products bear the trade mark “A&T”. “A&T” is an ODM trade mark manufactured by A-T Armaturen. Schroedahl is the German manufacturer.

The subject’s history in Hong Kong is over twenty-eight years. Business is chiefly handled by the two shareholders.

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.70
UK Pound	1	Rs.89.34
Euro	1	Rs.72.35

INFORMATION DETAILS

Report Prepared by :

MNL

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.