MIRA INFORM REPORT

Report Date :

30.10.2012

IDENTIFICATION DETAILS

Name :	MARVELOUS ENTERPRISE CO. LTD.
Registered Office :	7/F., Sung Kee Industrial Building, 18-30 Kwai Ting Road, Kwai Chung, New Territories
Country :	Hong Kong
Date of Incorporation :	18.02.1992
Com. Reg. No.:	15888726
Legal Form :	Private Limited Company.
Line of Business :	Importer and Exporter of Leather handbags, leather belts, wallets, etc.
No. of Employees :	16. (Including affiliates)

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

MARVELOUS ENTERPRISE CO. LTD.

ADDRESS: 7/F., Sung Kee Industrial Building, 18-30 Kwai Ting Road, Kwai Chung, New Territories, Hong Kong.

PHONE: 2420 4801

FAX: 2480 4722

MANAGEMENT

Managing Director: Mr. Chow Wing Kin

SUMMARY

Incorporated on: 18th February, 1992.

Organization: Private Limited Company.

Capital: Nominal: HK$1,000,000.00

Issued: HK$1,000,000.00

Business Category: Leather Product Trader.

Annual Turnover: HK$100-110 million.

Employees: 16. (Including associates)

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

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

7/F., Sung Kee Industrial Building, 18-30 Kwai Ting Road, Kwai Chung, New Territories, Hong Kong.

Associated/Affiliated Companies:-

Mat Wah International Enterprise Ltd., Hong Kong.

Mat Wah Leather Goods Co. Ltd., Hong Kong.

Gloria Leather Products Co. Ltd., Hong Kong.

Yixing Wuhua Leather Products Co. Ltd., China.

Shanghai Wuhua Leather Hardware Products Co. Ltd., China.

BUSINESS REGISTRATION NUMBER

15888726

COMPANY FILE NUMBER

0343575

MANAGEMENT

Managing Director: Mr. Chow Wing Kin

Director & Sales Contact: Ms. Tsang Suk Yee, Grace

CAPITAL

Nominal Share Capital: HK$1,000,000.00 (Divided into 10,000 shares of HK$100.00 each)

Issued Share Capital: HK$1,000,000.00

SHAREHOLDERS

(As per registry dated 18-02-2012)

Name		No. of shares
CHOW Wing Kin		5,050
TSANG Suk Yee, Grace		4,650
CHOW Ming Tak, Jason		150
CHOW Shing Tak, Fernando		150
		–––––
	Total:	10,000 =====

DIRECTORS

(As per registry dated 18-02-2012)

Name (Nationality)	Address
CHOW Wing Kin	House 85, Tycoon Place, 38 Lo Fai Road, Tai Po, New Territories, Hong Kong.
TSANG Suk Yee, Grace	House 85, Tycoon place, 38 Lo Fai Road, Tai Po, New Territories, Hong Kong.

SECRETARY

CHOW Wing Kin (As per registry dated 18-02-2012)

HISTORY

The subject was incorporated on 18th February, 1992 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at 10/F., Sang Cheong Industrial Building, 11-13 Ka Hing Road, Kwai Chung, New Territories, Hong Kong, moved to the present address in March 1997.

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

OPERATIONS

Activities: Importer and Exporter.

Lines: Leather handbags, leather belts, wallets, etc.

Employees: 16. (Including affiliates)

Materials/Commodities: Mainly imports raw materials from European countries, India, and imports finished products from China.

Markets: US, Canada, Europe, other Asian countries, etc.

Annual Turnover: HK$100-110 million.

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

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

FINANCIAL INFORMATION

Nominal Share Capital: HK$1,000,000.00 (Divided into 10,000 shares of HK$100.00 each)

Issued Share Capital: HK$1,000,000.00

Alternation of Capital:-

Initially	paid up	HK$ 100,000.00
March 2011	paid up	HK$ 900,000.00
		––––––––––––––––
Total:	paid up	HK$ 1,000,000.00 ==============

Increases of Nominal Capital:-

From

HK$ 100,000.00

to

HK$ 1,000,000.00

on

March 2011

Mortgage or Charge:- (See attachment)

Profit & Loss: Traded at a small profitable angle.

Condition: Keeping in an active state.

Facilities: Making rather active use of general banking facilities.

Payment: Met as required.

Commercial Morality: Satisfactory.

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

Standing: Normal.

GENERAL

Founded in early 1992, Marvelous Enterprise Co. Ltd. is jointly owned by Mr. Chow Wing Kin, his wife Ms. Grace Tsang Suk Yee, Mr. Chow Ming Tak and Mr. Chow Shing Tak. The subject’s business is controlled by the Chow family.

The subject is a leather product trader. It handles leather handbags, leather belts, wallets, etc. Products are manufactured by its associated factory in Yixing, Jiangsu Province, China known as Yixing Wuhua Leather Products Co. Ltd. [Yixing Wuhua] which was founded in 2000.

Employing about 106 persons, Yixing Wuhua is engaged in manufacturing all kinds of leather products. Its annual sales turnover ranges from RMB80 to 85 million Yuan.

Finished products are exported to the United States, Canada and Europe. Business has been satisfactory. The subject is responsible for supplying its associated factory in China with raw materials which are mainly imported from Italy, Spain and India.

The subject has got an affiliated company Mat Wah International Enterprise Ltd. [Mat Wah] located at its operating address. Engaged in the same lines of business as the subject, Mat Wah is also controlled by the Chow family.

The business of the subject is rather active.

Having a history of over twenty years in Hong Kong, the subject is considered good for normal business engagements.

REMARKS

Property information of affiliate and director:-

1. Property Location: 5/F., Sung Kee Industrial Building, 18-30 Kwai Ting Road, Kwai Chung, New Territories, Hong Kong.

Owner: Mat Wah Leather Goods Co. Ltd.

Date of Purchase: 23-07-1983

Purchased Price: HK$1,610,000

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
05-09-1988	-	Sin Hua Bank Ltd., Hong Kong Branch. [Merged into Bank of China (Hong Kong) Ltd.]	Mortgage to secure general banking facilities

2. Property Location: 7/F., Sung Kee Industrial Building, 18-30 Kwai Ting Road, Kwai Chung, New Territories, Hong Kong.

Owner: Mat Wah Leather Goods Co. Ltd.

Date of Purchase: 05-03-1974

Purchased Price: HK$390,000

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
27-08-1977	HK$950,000	The Bank of East Asia Ltd., Hong Kong.	Mortgage to secure general banking facilities

3. Property Location: Flat B on 15/F., 102 Broadway, Mei Foo Sun Chuen, Kowloon, Hong Kong.

Owner: Mat Wah Leather Goods Co. Ltd.

Date of Purchase: 01-12-1982

Purchased Price: HK$680,000

Incumbrances: No mortgage record registered against the property.

4. Property Location: Flat B on 3/F. of Block 2 and Car Parking Space No. 59 on G/F., Faraday House, 6 Sing Yung Street, Tuen Mun, New Territories, Hong Kong.

Owner: Chow Wing Kin

Date of Purchase: 05-12-1991

Purchased Price: HK$3,840,000

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
05-12-1991	-	Hua Chiao Commercial Bank Ltd., Hong Kong. [Merged into Bank of China (Hong Kong) Ltd.]	Legal charge to secure general banking facilities
26-10-1993	-	- ditto -	Second legal charge to secure general banking facilities granted to Marvelous Enterprise Co. Ltd.

MORTGAGE OR CHARGE

Date	Particulars	Amount
30-11-2004	Instrument: Legal Charge / Mortgage Property: All Those 439 equal undivided 57,954 parts or shares of and in All That piece or parcel of ground registered in the Tai Po New Territories Land Registry as Tai Po Town Lot No. 119 (the Land) and of and in the messuages erection and buildings thereon now known as Tycoon Place Together with the sole and exclusive right and privilege to hold use occupy and enjoy All That House No. 85 (and the Roof, Car Parking Space, Garden and Open Yard thereof) of the Building as shown on the Plans annexed to an Assignment registered in the Tai Po New Territories Land Registry by Memorial No. 649965 and coloured Pink Mortgagee: The Bank of East Asia Ltd., Hong Kong.	All monies in respect of general banking facilities

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.81
UK Pound	1	Rs.86.52
Euro	1	Rs.69.50

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%)

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.