MIRA INFORM REPORT

Report Date :

04.10.2012

IDENTIFICATION DETAILS

Name :	B & P CHEMICALS (HONG KONG) CO. LTD.
Registered Office :	Room 418, 4/F., Hing Wah Centre, 82-84 To Kwa Wan Road, Tokwawan, Kowloon
Country :	Hong Kong
Date of Incorporation :	25.09.1998.
Legal Form :	Private Limited Company.
Line of Business :	Importer and Wholesaler of all kinds of chemicals and chemical raw materials including dyestuffs and intermediates.
No. of Employees :	5

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

B & P CHEMICALS (HONG KONG) CO. LTD.

ADDRESS: Room 418, 4/F., Hing Wah Centre, 82-84 To Kwa Wan Road, Tokwawan, Kowloon, Hong Kong.

PHONE: 2754 6337

FAX: 2754 6351

E-MAIL: katchow@sinaman.com

MANAGEMENT

Managing Director: Mr. Hung Kwok Hing, Patrick

SUMMARY

Incorporated on: 25th September, 1998.

Organization: Private Limited Company.

Capital: Nominal: HK$100,000.00

Issued: HK$20,000.00

Business Category: Chemical Trader.

Employees: 5.

Main Dealing Banker: Chiyu Banking Corporation Ltd., Hong Kong.

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

Room 418, 4/F., Hing Wah Centre, 82-84 To Kwa Wan Road, Tokwawan, Kowloon, Hong Kong.

Affiliated Company:- (Same address)

Artist Chemicals Industrial Ltd. [Not Registered in Hong Kong]

COMPANY FILE NUMBER

0655467

MANAGEMENT

Managing Director: Mr. Hung Kwok Hing, Patrick

CAPITAL

Nominal Share Capital: HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)

Issued Share Capital: HK$20,000.00

SHAREHOLDERS

(As per registry dated 25-09-2012)

Name		No. of shares
CHOW Shing Sze, Kathy		10,000
HUNG Kwok Man		10,000
		––––––
	Total:	20,000 =====

DIRECTORS

(As per registry dated 25-09-2012)

Name (Nationality)
HUNG Kwok Man	6/F., 10 Baker Street, Hung Hom.
HUNG Kwok Hing, Patrick	Flat A, 2/F., Block 9, Park Central, Tseung Kwan O, Kowloon, Hong Kong.

SECRETARY

(As per registry dated 25-09-2012)

Name	Address
CHOW Shing Sze, Kathy	Flat A, 2/F., Block 9, Park Central, Tseung Kwan O, Kowloon, Hong Kong.

HISTORY

The subject was incorporated on 25th September, 1998 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 Wholesaler.

Lines: All kinds of chemicals and chemical raw materials including dyestuffs and intermediates.

Employees: 5.

Commodities Imported: Mainly imported from Europe, India, etc.

Markets: Hong Kong, China, North America, Western Europe, etc.

Terms/Sales: As per contracted.

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

FINANCIAL INFORMATION

Nominal Share Capital: HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)

Issued Share Capital: HK$20,000.00

Profit & Loss: Traded at a small profitable angle.

Condition: Keeping in an active manner.

Facilities: Making rather active use of general banking facilities.

Payment: Met trade commitments as required.

Commercial Morality: Satisfactory.

Banker: Chiyu Banking Corporation Ltd., Hong Kong.

Standing: Normal.

GENERAL

Having issued 20,000 ordinary shares of HK$1.00 each, B & P Chemicals (Hong Kong) Co. Ltd. is a private limited company. It was equally owned by Ms. Kathy Chow Shing Sze and Mr. Yeung Ping Suen. On 1st September, 2010, Yeung transferred all his shares to Mr. Hung Kwok Man.

The directors of the subject are Mr. Hung Kwok Man and Mr. Hung Kwok Hing. The two Hungs are full brothers.

The subject is trading in the following commodities:-

· Ink - Printing;

· Ink - Writing;

· Essential Oil/Cosmetic Chemicals (Ingredient for cosmetic);

· Dyeing; &

· Tanning & Colouring Materials (For water colour).

The subject’s chemicals are imported from Germany, Switzerland and India. Prime markets are Hong Kong, China, other Asian countries, North America, Western Europe, etc.

Some of its buyers are Hong Kong firms which have got associated factories in China. Business has been steady since late 2001.

The subject’s business is chiefly administered by the two Hungs.

The subject has had an affiliated company Artist Chemicals Industrial Ltd. [ACI] located at its operating address. ACI is trading in chemicals and a contract manufacturer of toys and stationery, ink, art and craft, candle, cosmetics, etc. However, ACI is not registered in Hong Kong.

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

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.33
UK Pound	1	Rs.84.30
Euro	1	Rs.67.45

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%)

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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.