MIRA INFORM REPORT

Report Date :

09.07.2013

IDENTIFICATION DETAILS

Name :	CONTINENT INTERNATIONAL LTD.

Registered Office :	Unit B, 20/F., Wing Hang Finance Centre, 60 Gloucester Road, Wanchai

Country :	Hong Kong

Date of Incorporation :	07.08.2002

Com. Reg. No.:	32919166

Legal Form :	Private Limited Company

Line of Business :	Importer, Exporter and Wholesaler of All kinds of chemicals, petrochemicals.

No. of Employees :	6. (Including associates)

RATING & COMMENTS

MIRA’s Rating :

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 – March, 31^st,2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Hong Kong

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 levies excise duties on only four commodities, namely: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. 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 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous 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 34.9 million in 2012, 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 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% 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, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. 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

CONTINENT INTERNATIONAL LTD.

ADDRESS

Unit B, 20/F., Wing Hang Finance Centre, 60 Gloucester Road, Wanchai, Hong Kong.

PHONE: 852-2527 1663

FAX: 852-2527 2387

MANAGEMENT

Managing Director: Mr. Koo Bok Mo

SUMMARY

Incorporated on: 7th August, 2002.

Organization: Private Limited Company.

Capital: Nominal: HK$1,000,000.00

Issued: HK$1,000,000.00

Business Category: Importer, Exporter and Wholesaler.

Employees: 6. (Including associates)

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

Banking Relation: Satisfactory.

Company name

CONTINENT INTERNATIONAL LTD.

ADDRESS

Registered Head Office:-

Unit B, 20/F., Wing Hang Finance Centre, 60 Gloucester Road, Wanchai, Hong Kong.

Affiliated/Associated Companies:-

Green Corporation Ltd., Hong Kong.

Hymax International Ltd., Hong Kong. (same address)

JC Petrochem Ltd., Hong Kong. (same address)

BUSINESS REGISTRATION NUMBER

32919166

COMPANY FILE NUMBER

0809364

MANAGEMENT

Managing Director: Mr. Koo Bok Mo

CAPITAL

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

Issued Share Capital: HK$1,000,000.00

SHAREHOLDER

(As per registry dated 07-08-2012)

Name

No. of shares

SUH Eun Seok

1,000,000

=======

DIRECTOR

(As per registry dated 20-05-2013)

Name

(Nationality)

Address

Bok Mo KOO

Flat H, 10/F., Lotus Mansion, 6 Taikoo Wan Road, Taikoo Shing, Quarry Bay, Hong Kong.

SECRETARY

(As per registry dated 07-08-2012)

Name	Address	Co. No.
Tims Corporate Services Ltd.	Room A, 15/F., Fortis Tower, 77-79 Gloucester Road, Wanchai, Hong Kong.	0284320

HISTORY

The subject was incorporated on 7th August, 2002 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at Unit A, 12/F., China Overseas Building, 139 Hennessy Road, Wanchai, Hong Kong, moved to the present address in March 2012.

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

OPERATIONS

Activities: Importer, Exporter and Wholesaler.

Lines: All kinds of chemicals, petrochemicals.

Employees: 6. (Including affiliates)

Commodities Imported: Europe, India, Taiwan, etc.

Markets: China, Japan, other Asian countries, North America, etc.

Terms/Sales: L/C or as per contracted.

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

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$1,000,000.00

Alternation of Issued Capital:-

Initially	paid up	HK$ 100.00
07-05-2010	paid up	HK$ 999,900.00
		–––––––––––––––
Total:	paid up	HK$1,000,000.00 ==============

Mortgage or Charge (since 2009): (See attachment)

Profit or Loss: Making a small profit every year.

Condition: Keeping in a satisfactory condition.

Facilities: Making active use of general banking facilities.

Payment: Met trade commitments as required.

Commercial Morality: Satisfactory.

Bankers:-

DBS Bank (Hong Kong) Ltd., Hong Kong.

BNP Paribas, Hong Kong Branch.

United Overseas Bank Ltd., Hong Kong Branch.

Standing: Normal.

GENERAL

Having issued 1 million ordinary shares of HK$1.00 each, Continent International Ltd. is wholly owned by Mr. Suh Eun Seok who is a merchant. Suh was the only director of the subject. He is a Hong Kong ID Card holder but most of the time he is residing in Shenzhen Special Economic Zone, China. Now, the director is Mr. Koo Bok Mo who is a Hong Kong ID Card holder.

The subject is a chemical and petrochemical product trader. It has got the following affiliated companies located at its operating address:-

Hymax International Ltd.;

JC Petrochem Ltd.

Another associated company Green Corporation Ltd. is located at another address. The old name of Hymax International Ltd. was Continent International (HK) Ltd.

The subject and its affiliated companies are trading in paraffin wax, wax, lubricants, etc. Commodities are imported from Germany, Switzerland, India and Taiwan. Prime markets are Hong Kong, Japan, China, North America, etc. The subject also exports China petrochemical products to worldwide countries. Overall business is steady. Making a small profit in the past years.

The subject’s business is chiefly handled by Koo Bok Mo himself.

Having issued 1 million ordinary shares of HK$1.00 each, Green Corporation Ltd. is wholly owned by Megamaster Holdings Ltd. which is a Hong Kong‑registered firm.

The director of Green Corporation Mr. Mark Oliver Von Torklus is also the director of Helm Hong Kong Ltd. [Helm HK] which is a chemical trader. Helm HK is located at a different address. Von Torklus is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.

The subject and Green Corporation are engaged in the same lines of business.

As the history of the subject is over ten years in Hong Kong, on the whole, consider it good for normal business engagements.

MORTGAGE OR CHARGE

(Since 2009)

Date	Particulars	Amount
23-07-2010	Instrument: Charge over Stocks and Receivables Property: By way of a first fixed charge all the Receivables and the Goods and by way of a first floating charge all the Receivables and Goods and assigns and agrees to assign absolutely and unconditionally Mortgagee: BNP Paribas, Hong Kong Branch.	To secure all present and future indebtedness, obligations and liabilities
23-07-2010	Instrument: Pledge and Master Trust Receipt Property: As beneficial owner and as a continuing security for the payment or discharge in full of the Secured Liabilities Mortgagee: BNP Paribas, Hong Kong Branch.	Secured Liabilities means all present and future indebtedness, obligations and liabilities
23-07-2010	Instrument: Account Charge Property: As beneficial owner, charges and agrees to charge the deposit and all its right, title and interest in the deposit to the Bank by way of first fixed charge as continuing security for the payment and discharge of the Secured Liabilities Mortgagee: BNP Paribas, Hong Kong Branch.	Secured Liabilities means all present and future indebtedness, obligations and liabilities
21-02-2012	Instrument: Trade Finance Security Assignment Property: The Borrower as beneficial owner:- (A) Assigns and agrees to assign absolutely to the Bank all the present and future rights, title, interests and benefits of the Borrower in and to the following assets:- (i) Export Credits; (ii) Export Collection Bills; (iii) Sales Contracts; (iv) Invoice Receivables; (v) Insurances; (vi) Trade Documents; and (vii) all claims, remedies and proceeds in connection with any of the foregoing; and (B) Charges and agrees to charge to the Bank by way of first fixed charge all the present and future rights, title, interests and benefits of the Borrower in and to the following assets: (i) the Goods together with their proceeds; and (ii) the Deposit; and (iii) the Deposit and (iv) to the extent any security assets is not effectively assigned under sub-clause, such security assets; and (C) Pledges & agrees to pledge to the Bank the Pledged Goods and the Trade Documents which are now or may in the future be in the possession of the Bank Mortgagee: United Overseas Bank Ltd., Hong Kong Branch.	All obligations & liabilities of whatever nature of the Borrower owed to the Bank at any time and in any currency and whether present or future, actual or contingent and whether owed solely or jointly or severally with or as surety for another and all costs and expenses incurred by the Bank in connection with the recovery of any of the above or the enforcement of the Assignment basis

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.04
UK Pound	1	Rs.90.89
Euro	1	Rs.78.27

INFORMATION DETAILS

Report Prepared by :

SDA

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.