MIRA INFORM REPORT

Report Date :

05.10.2012

IDENTIFICATION DETAILS

Name :	KEDA INDUSTRIAL (HONG KONG) LTD.
Registered Office :	Room 2104, 21/F., Austin Plaza, 83 Austin Road, Tsimshatsui, Kowloon
Country :	Hong Kong
Date of Incorporation :	26.10.2006
Com. Reg. No.:	37321334
Legal Form :	Private Limited Company.
Line of Business :	Importer, Exporter and Wholesaler of all kinds of machinery and equipment.
No. of Employees :	8. (Including associates) 3,803. (Group)

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

KEDA INDUSTRIAL (HONG KONG) LTD.

ADDRESS: Room 2104, 21/F., Austin Plaza, 83 Austin Road, Tsimshatsui, Kowloon, Hong Kong.

PHONE: 2417 1739, 2866 6933

FAX: 2866 6166

E-MAIL: hkkeda@netvigator.com

MANAGEMENT

Managing Director: Mr. Zeng Fei

SUMMARY

Incorporated on: 26th October, 2006.

Organization: Private Limited Company.

Capital: Nominal: HK$78,000,000.00

Issued: HK$78,000,000.00

Business Category: Importer, Exporter and Wholesaler.

Operating Income: RMB69,436,200 Yuan (Year ended 31-12-2011)

Employees: 8. (Including associates)

Main Dealing Banker: Bank of China (Hong Kong) Ltd., Hong Kong.

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

Room 2104, 21/F., Austin Plaza, 83 Austin Road, Tsimshatsui, Kowloon, Hong Kong.

Holding Company:-

Keda Industrial Co. Ltd.

1 Huanzhen Xi Road, Guanglong Industrial Zone, Chencun, Shunde, Foshan, Guangdong, China.

[Tel: 86-757-2383 2929, 2383 2922

Fax: 86-757-2383 2690

E-mail: ied@kedachina.com.cn]

Affiliated/Associated Companies:-

Champ Will Development Ltd., Hong Kong. (Same address)

Foshan Henglitai Machinery Co. Ltd., China.

Foshan Keda Steel Machine Works, China.

Great Champ International Trading Ltd., Hong Kong. (Same address)

Jiangyin Tianjiang Pharmaceutical Co. Ltd., China.

Keda Clean Energy (Ma’anshan) Co. Ltd., China.

Keda Industrial (Ma’anshan) Ltd., China.

Keda Stone Machinery Co. Ltd., China.

BUSINESS REGISTRATION NUMBER

37321334

COMPANY FILE NUMBER

1083119

MANAGEMENT

Managing Director: Mr. Zeng Fei

CAPITAL

Nominal Share Capital: HK$78,000,000.00 (Divided into 78,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$78,000,000.00

SHAREHOLDER

(As per registry dated 26-10-2011)

Name	No. of shares
Keda Industrial Co. Ltd. 1 Huanzhen Xi Road, Guanglong Industrial Zone, Chencun, Shunde, Foshan, Guangdong, China.	78,000,000 ========

DIRECTORS

(As per registry dated 23-07-2012)

Name (Nationality)	Address
LI Zhiqing	Room 1906, Block D, 66 Tongji Road, Chan Cheng District, Foshan, Guangdong, China.
WU Muhai	19#, 5 Jie, Cui Hu Pan 2 Qu, Bi Gui Hua Cheng, Chencun, Shunde, Foshan, Guangdong, China.
ZENG Fei	401, G Zuo, Junjing Haoting, Songyuan Xincheng, Hecheng Lu, Chencun, Shunde, Foshan, Guangdong, China.

SECRETARY

(As per registry dated 26-10-2011)

Name	Address	Co. No.
H & R Block (HK) Ltd.	Room 504, 5/F., Tung Wai Commercial Building, 109-111 Gloucester Road, Wanchai, Hong Kong.	0113523

HISTORY

The subject was incorporated on 26th October, 2006 as a private limited liability company under the Hong Kong Companies Ordinance.

The subject increased its issued share to HK78 million on 18th July, 2011.

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

OPERATIONS

Activities: Importer, Exporter and Wholesaler.

Lines: All kinds of machinery and equipment.

Employees: 8. (Including associates)

3,803. (Group)

Commodities Imported: India, China, etc.

Markets: Other Asian countries, Europe, etc.

Operating Income: RMB69,436,200 Yuan (Year ended 31-12-2011)

Terms/Sales: L/C, T/T, etc.

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

FINANCIAL INFORMATION

Nominal Share Capital: HK$78,000,000.00 (Divided into 78,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$78,000,000.00

Alternation of Capital:-

Initially	paid up	HK$ 3,900,000.00
06-11-2009	paid up	HK$ 35,100,000.00
18-07-2011	paid up	HK$ 39,000,000.00
		––––––––––––––––
Total:	paid up	HK$ 78,000,000.00 ==============

Assets: RMB116,922,200 Yuan (Year ended 31-12-2011)

Net Profit: RMB12,079,500 Yuan (Year ended 31-12-2011)

Profit or Loss: Making a 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: Bank of China (Hong Kong) Ltd., Hong Kong.

Standing: Good.

GENERAL

Having issued 78 million ordinary share of HK$1.00, Keda Industrial (Hong Kong) Ltd. is wholly-owned by Keda Industrial Co. Ltd. [Keda] which is a China-based firm. All the directors of the subject are China merchants residing in Guangdong Province, China.

The subject is one of the trading arms of Keda which is a machinery and equipment trader. Keda is in Shunde District, Foshan City, Guangdong Province, China.

Keda is a listed firm in Shanghai bearing stock code 600499. It has had a main factory in Foshan City, Guangdong Province, China known as Foshan Keda Steel Machine Works which was set up in December 1982. Keda is principally engaged in the manufacture and sale of machinery products. Its machinery products include ceramics machinery, energy resource machinery, stone processing machinery and building material processing machinery. The ceramics machinery products include cloth processing machine, turn over machine, desiccator, drying apparatus, furnace, buffing machine, edge grinding machine, testing equipment, stacking apparatus. It also manufactures clean coal gasification machinery and others. Keda’s products are marketed in China and exported to overseas markets.

As of 31st December, 2011, Keda had a number of subsidiaries/associates, primarily engaged in the provision of stone machinery, new energy machinery and construction ceramics machinery, among others.

In June 2011, Keda acquired Henglitai Machinery Co. Ltd. which is a Foshan-based firm.

The subject is managed by Mr. Zhen Fei who is a China businessman.

For the year ended 31st December, 2011, the principal operating revenue of Keda was RMB2,492.5 million Yuan (2010: RMB2,064.7 million); profit attributable to shareholders was RMB356.1 million Yuan for the year (2010: RMB241.0 million Yuan).

The subject is trading in the products of Keda and responsible for sourcing raw materials for it.

Currently, Keda has had distributors or agents in the following countries: Taiwan, India, Vietnam, Thailand, Indonesia, Malaysia, North Korea, Iran, Turkey, Egypt, Russia, the United Arab Emirates, etc. The business of Keda is rather active and steady.

For the year ended 31st December, 2011, the operating income of the subject was RMB69.4 million Yuan, net profit was RMB12.1 million Yuan.

In the years ahead, the subject will expand its overseas business according to the strategies of Keda.

The subject’s history in Hong Kong is about six years.

On the whole, supported by Keda, the subject is considered good for normal business engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.97
UK Pound	1	Rs.83.67
Euro	1	Rs.67.19

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.