MIRA INFORM REPORT

Report Date :

20.07.2013

IDENTIFICATION DETAILS

Name :	MONARCH INTERNATIONAL LTD.

Registered Office :	19/F., 9 Wing Hong Street, Cheung Sha Wan, Kowloon

Country :	Hong Kong.

Date of Incorporation :	25.04.1967.

Com. Reg. No.:	02273071

Legal Form :	Private Limited Company

Line of Business :	Commission Agent, Importers and Exporters of Garments - woven and knitted for babies and children, men’s and boy’s jackets, parkas, T-shirts, shirts, pants, rompers; jogging sets, track suites; footwear: sports shoes, canvas shoes, beach slippers, plush slippers; hats and caps; all kinds of toys including plastic toys and plush dolls; gifts and sundry items; household products.

No. of Employees :	10

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 :	Good
Payment Behaviour :	Regular
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 and address

MONARCH INTERNATIONAL LTD.

Address: 19/F., 9 Wing Hong Street,

Cheung Sha Wan, Kowloon,

Hong Kong.

(Formerly located at:

5/F., Kundamal House,

2-4 Part Avenue,

Tsimshatsui, Kowloon,

Hong Kong. )

PHONE: 852-2367 0189, 2371 6860, 2371 6863, 2371 6800

FAX: 852-2369 7247

E-MAIL: monarch@netvigator.com

info@monarch.com.hk

MANAGEMENT

Managing Director: Mr. Nanoj Manik Mohanani

SUMMARY

Incorporated on: 25th April, 1967.

Organization: Private Limited Company.

Capital: Nominal: HK$2,000,000.00

Issued: HK$2,000,000.00

Business Category: Exporters and Importers.

Employees: 10.

Main Dealing Bankers: Banque Nationale de Paris, Hong Kong Branch.

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

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

19/F., 9 Wing Hong Street, Cheung Sha Wan, Kowloon, Hong Kong.

Mailing Address:-

P.O. Box 7194, Kowloon, Hong Kong.

Associated Company:-

Mundial Co. Ltd., Hong Kong. (Same address)

BUSINESS REGISTRATION NUMBER

02273071

COMPANY FILE NUMBER

0014169

MANAGEMENT

Managing Director: Mr. Nanoj Manik Mohanani

CAPITAL

Nominal Share Capital: HK$2,000,000.00 (Divided into 20,000 shares of HK$100.00 each)

Issued Share Capital: HK$2,000,000.00

SHAREHOLDERS

(As per registry dated 25-04-2013)

Name		No. of shares
Shaku Nanik MOHANANI		2,000
Manoj Nanik MOHANANI		18,000
		––––––
	Total:	20,000 =====

DIRECTORS

(As per registry dated 25-04-2013)

Name (Nationality)	Address
Reyan Manoj MOHANANI	7/F., Flat B, Block 4, Grandeur Villa, 21 Tat Chee Avenue, Kowloon, Hong Kong.
Shaku Nanik MOHANANI	8/F., Flat B, Block 4, Grandeur Villa, 21 Tat Chee Avenue, Kowloon, Hong Kong.
Manoj Nanik MOHANANI	7/F., Flat B, Block 4, Grandeur Villa, 21 Tat Chee Avenue, Kowloon, Hong Kong.

SECRETARY

(As per registry dated 25-04-2013)

Name	Address	Co. No.
FNG (Nominees) Ltd.	903A, Nan Dao Commercial Building, 359‑361 Queen’s Road Central, Hong Kong.	1335862

HISTORY

The company was incorporated on 25th April, 1967 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at 5/F., Kundamal House, 2-4 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in August 2008.

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

OPERATIONS

Activities: Importers, Exporters and Commission Agent.

Lines: Garments - woven and knitted for babies and children, men’s and boy’s jackets, parkas, T-shirts, shirts, pants, rompers; jogging sets, track suites; footwear: sports shoes, canvas shoes, beach slippers, plush slippers; hats and caps; all kinds of toys including plastic toys and plush dolls; gifts and sundry items; household products.

Employees: 10.

Commodities Imported: Mainly imported from Taiwan, Philippines, China and procured locally.

Markets: Asian countries, Europe, Pacific Islands, South Africa, Egypt, Middle East, North and South America, etc.

Terms/Sales: L/C, T/T, D/P or D/A.

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

MEMBERSHIP

The Hong Kong General Chamber of Commerce, Hong Kong.

FINANCIAL INFORMATION

Nominal Share Capital: HK$2,000,000.00 (Divided into 20,000 shares of HK$100.00 each)

Issued Share Capital: HK$2,000,000.00

Increases of Nominal Capital:-

From	HK$ 100,000.00	to	HK$1,000,000.00	on	28-09-1981
From	HK$1,000,000.00	to	HK$2,000,000.00	in	Apr. 1987

Alternation of Issued Capital:-

14-06-1967	paid up	HK$ 10,000.00
02-06-1975	paid up	HK$ 90,000.00
22-10-1981	paid up	HK$ 400,000.00
Apr. 1987	paid up	HK$1,500,000.00
		–––––––––––––––
Total:	paid up	HK$2,000,000.00 ==============

Indebtedness: 6,426,000.00 (Total amount outstanding on all mortgages and charges as per last Annual Return dated 25-04-2013)

Mortgage or Charge: (See attachment)

Profit & Loss: Business is profitable.

Condition: Keeping in an active and satisfactory manner.

Facilities: Making active use of general banking facilities.

Payment: Met as required.

Commercial Morality: Satisfactory.

Bankers:-

Banque Nationale de Paris, Hong Kong Branch.

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

Indian Overseas Bank, Hong Kong Branch.

Lloyds Bank PLC, Hong Kong Branch.

The Daiwa Bank Ltd., Hong Kong Branch.

United Commercial Bank, Hong Kong Branch.

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

Standing: Very Good.

GENERAL

Monarch International Ltd. is an old-established Indian business of the Mohanani family. Having issued 20,000 ordinary shares of HK$1.00 each, it is jointly owned by Mr. Manoj Nanik Mohanani, holding 90% interests; and Shaku Nanik Mohanani, holding 10%.

The subject is an internationally reputed trading company headquartered in Hong Kong. With two offices in China, it is specialized in clothing & accessories, toys, house wares and most recently, its own brand of wireless technology.

Established in 1966, the subject brings together the combined talents and abilities of its designers, merchandisers, production houses, factories, distribution and logistics divisions to offer a dynamic and effective partnership with its clients. It is a full service trading company which offers comprehensive in-house services such as sourcing with experience, talented merchandising, research and development, quality control, OEM manufacturing, offshore production, shipping and logistics along with a variety of other peripheral services.

The subject has extensive displays at its showrooms in Hong Kong. It has the capacity and capability to efficiently distribute and deliver high volumes of stock from various ports in China, to any part of the world.

The subject is trading in the following commodities:-

Clothing & Accessories

Knitted Sweat Shirts and Jogging Pants;
Knitted T - Shirts / Polo’s;
Woven Board Shorts and Swim Shorts;
Woven Casual / Formal Shirts and Blouses;
Woven Casual Outer Wear / Jackets;
Woven Denim Jeans / Clammy’s / Shorts; &
Woven Pants / Trousers and Bottoms.

Toys

Animal Toys;
Baby Toys and Products;
Battery Operated and Electronic Toys;
Die Cast Toys;
Dolls, Soft Toys and Figures;
Educational and Pre-School Toys;
General Toys;
Novelty Items;
Outdoor and Sport Toys; &
Play Sets.

Housewares

Bar Tools;
Bread Boxes;
Can openers;
Canisters;
Cheese Cutters;
Cheese sets;
Colanders;
Cookware Sets;
Cutlery Holders;
Cutting Boards;
Flatware;
Fondue Sets;
Food steamers;
Fruit Squeezers;
Frying Pans;
Graters;
Kettles;
Kitchen Knives;
Kitchen Racks;
Kitchen Scales;
Kitchen Scissors;
Mixing Bowls;
Pressure Cookers;
Roasting Pans;
Salt & pepper Set;
Saucepans;
Saucepans;
Silicon Baking Moulds;
Spatulas;
Spice Holder;
Stock Pots;
Tongs;
Trays;
Vacuum Flasks; &
Woks.

Outdoor products

Aqua slings;
Batteries;
Binoculars;
Drybags;
Goggles;
Headlamps;
Hunting tools;
Knife sharpeners;
Multi-tool sets;
Pocket knives;
Sports knives;
Sunglasses;
Tarps; &
Torches.

Wireless technology by Musso

Multimedia Chair;
Wireless Home Theatre Chair;
Wireless Home Theatre Sofa;
Wireless Home Theatre System/Chair; &
Wireless Speaker & Subwoofer.

Actually, the subject has had an associated company Mundial Co. Ltd. which is chiefly trading in kitchen ware such as knives, cutlery, etc. All its products bear the brand name Mundial.

The subject has set up a representative office in Guangzhou, Guangdong Province, China.

The subject is exporting to most countries worldwide, and has a good network of sourcing and supplying for all types of products. Main markets are Africa, the Middle East, North and South America, Europe, Asian countries and the Asian Pacific region. Under capable and experienced management.

As the history of the subject is over 46 years in Hong Kong, on the whole, consider it good for normal business engagements.

REMARKS

Property information of the company and directors:-

1. Property Location: Office A on 5/F., Kundamal House, 2-4 Prat Avenue, Kowloon, Hong Kong.

Owner: Monarch International Ltd.

Date of Purchase: 27-04-1982

Purchased Price: HK$1,100,000

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
17-08-1994	-	Banque Nationale de Paris, Hong Kong Branch.	Mortgage to secure general banking facilities

2. Property Location: Office B on 5/F., Kundamal House, 2-4 Prat Avenue, Kowloon, Hong Kong.

Owner: Monarch International Ltd.

Date of Purchase: n.a.

Purchased Price: n.a.

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
18-03-1992	-	The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.	Mortgage to secure general banking facilities

3. Property Location: Flat B on 7/F. of Block 4 and Car Parking Space No. 32 on Basement Floor, Grandeur Villa, 21 Tat Chee Avenue, Kowloon, Hong Kong.

Owner: Monarch International Ltd.

Date of Purchase: n.a.

Purchased Price: n.a.

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
06-12-1999	-	The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.	Mortgage to secure general banking facilities

4. Property Location: 8/F., Hanover Court, 85 Waterloo Road, Kowloon, Hong Kong.

Owner: Nanik Mohanani & Shaku Nanik Mohanani

Date of Purchase: 14-08-1970

Purchased Price: HK$200,000

Incumbrances: No mortgage record registered against the property.

MORTGAGE OR CHARGE

Date	Particulars	Amount
26-06-1980	Instrument: Letter of Authority Property: Particulars of deposit Receipt:- Number: EDD 80715/15361 Date Issued: 05-06-1980 Name of Depositor: Monarch International Ltd. Amount: US$15,853 Rate of Interest: 10.125% Due Date: 05-09-1980 Mortgagee: Indian Overseas Bank, Hong Kong Branch.	All moneys
15-12-1980	Instrument: Letter of Authority Property: Fixed deposits bearing No. EDDC 80312 for US$16,809 Mortgagee: Indian Overseas Bank, Hong Kong Branch.	All moneys
01-10-1981	Instrument: Letter of Authority Property: Euro deposit bearing No. EDDC 81882 for US$19,098 Mortgagee: Indian Overseas Bank, Hong Kong Branch.	All moneys
01-02-1989	Instrument: Charge on Cash Deposit Property: Fixed Deposit for HK$100,000 Mortgagee: Trusban Finance Asia Ltd., Hong Kong.	All monies obligations and liabilities
17-08-1994	Instrument: Mortgage Property: 17/1,000th parts or shares of and in Kowloon Inland Lot No. 6543 (Office A on 5/F. of Kundamal House, 2-4 Prat Avenue, Kowloon, Hong Kong.) Mortgagee: Banque Nationale de Paris, Hong Kong Branch.	General banking facilities
06-12-1999	Instrument: Mortgage Property: 42/3,836th parts or shares of and in New Kowloon Inland Lot No. 6081 (Flat B on 7/F. of Block 4 and Car Parking Space No. 32 on Basement Floor of Grandeur Villa, 21 Tat Chee Avenue, Kowloon, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.	To secure “all monies” in respect of general banking facilities and interest thereon
17-10-2012	Instrument: Security Agreement over Bank Account Property: By way of a first fixed charge all of the Chargor’s rights in respect of any amount standing to the credit of the account from time to time and the debt represented by it Mortgagee: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.	To secure the payment and satisfaction of all present and future obligations and liabilities
17-10-2012	Instrument: Security Agreement over Securities Property: (1) By way of first fixed charge; (a) all Specified Securities; (b) all Specified Securities; (c) all Related Rights of a capital nature; (d) all Related Rights of an income nature; (e) where Specified Securities are held in a Relevant System; and (2) By way of assignment, all the Chargor’s rights, title and interest, present and future, in and to any Specified Securities and any Related Rights Mortgagee: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.	To secure the payment and satisfaction of all present and future obligation and liabilities
23-11-2012	Instrument: Security Over Deposits Property: A deposit with chargee for HK$13,000,004.97 or its equivalent in other foreign currencies under Deposit A/C No. 181-229931-000, whatever currency it may subsequently be denominated in, any renewal of such deposit and the interest thereon together with any future monies in any deposit account with the chargee at any of its offices Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.	All monies in any currency owing by the company to the chargee at any time

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.73
UK Pound	1	Rs.91.03
Euro	1	Rs.78.52

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.