MIRA INFORM REPORT

Report Date :

25.05.2013

IDENTIFICATION DETAILS

Name :	GRANDWAYS INTERNATIONAL LTD.

Registered Office :	c/o SBC Corporate Services Ltd. Unit 503, 5/F., Silvercord, Tower 2, 30 Canton Road, Tsimshatsui, Kowloon

Country :	Hong Kong

Date of Incorporation :	24.03.2003

Com. Reg. No.:	33577000

Legal Form :	Private Limited Company

Line of Business :	Importer and Exporter of Granite, slab and other building materials.

No. of Employees :	No employees in Hong Kong NOTE : It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	No Operating Office in Hong Kong

Payment Behaviour :	Unknown

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 Company

GRANDWAYS INTERNATIONAL LTD.

ADDRESS: c/o SBC Corporate Services Ltd.

Unit 503, 5/F., Silvercord, Tower 2, 30 Canton Road, Tsimshatsui, Kowloon, Hong Kong.

PHONE: 3519 6338

FAX: 3519 6339

E-MAIL: silvercord@sbc.com.hk

MANAGEMENT

Managing Director: Mr. Feng Hua

SUMMARY

Incorporated on: 24th March, 2003.

Organization: Private Limited Company.

Capital: Nominal:HK$10,000.00

Issued: HK$10,000.00

Business Category: Importer and Exporter.

Employees: Nil

Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Xiamen Branch, China.

Banking Relation: Fair.

ADDRESS

Registered Office:-

c/o SBC Corporate Services Ltd.

Unit 503, 5/F., Silvercord, Tower 2, 30 Canton Road, Tsimshatsui, Kowloon, Hong Kong.

Subsidiary/Associated Companies:-

Xiamen Shenji Stones Co. Ltd., China.

Xiamen Stone Enterprise Group Co. Ltd., China.

XSE Blocks Company, China.

BUSINESS REGISTRATION NUMBER

33577000

COMPANY FILE NUMBER

0841315

MANAGEMENT

Managing Director: Mr. Feng Hua

CAPITAL

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

Issued Share Capital: HK$10,000.00

SHAREHOLDER

(As per registry dated 24-03-2013)

Name

No. of shares

FENG Hua

10,000

=====

DIRECTOR

(As per registry dated 24-03-2013)

Name

(Nationality)

Address

FENG Hua

8/F., Zhong Xin Hui Yang Business Building, 59 Hu Bin Bei Lu, Xiamen SEZ, China.

SECRETARY

(As per registry dated 24-03-2013)

Name	Address	Co. No.
SBC Corporate Services Ltd.	Room B, 10/F., Tower A, Billion Centre, 1 Wang Kwong Road, Kowloon Bay, Kowloon, Hong Kong.	0618863

HISTORY

The subject was incorporated on 24th March, 2003 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 Exporter.

Lines: Granite, slab and other building materials.

Employees: Nil

Commodities Imported: India, China, etc.

Markets: US, other Asian countries, etc.

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

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

FINANCIAL INFORMATION

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

Issued Share Capital: HK$10,000.00

Mortgage or Charge: (See attachment)

Profit or Loss: Keeping a balance account in Hong Kong.

Condition: Business is not active in Hong Kong.

Facilities: Making fairly active use of general banking facilities.

Payment: Met as required.

Commercial Morality: Satisfactory.

Banker: The Hongkong & Shanghai Banking Corp. Ltd., Xiamen Branch, China.

Standing: Small.

GENERAL

Having issued 10,000 ordinary shares of HK$1.00 each, Grandways International Ltd. was equally owned by Mr. Han Wen Qing and Mr. Han Ming Chen, both of whom are China merchants residing in Shandong Province, China. Now, the two Hans have transferred all their shares to Mr. Feng Hua who is also a China merchant. He is also the only director of the subject.

The subject does not have its own operating office. Its registered office is in a commercial service firm located at Unit 503, 5/F., Silvercord, Tower 2, 30 Canton Road, Tsimshatsui, Kowloon, Hong Kong known as SBC Corporate Services Ltd. [SBC] which is handling its correspondences and documents. Having several branch offices in Hong Kong, SBC is also the corporate secretary of the subject. Your given phone and fax number belong to SBC.

The subject has no employees in Hong Kong.

To our knowledge, the subject is a marble and granite trader. It has had a granite processing factory in Xiamen Special Economic Zone, China. The factory is known as Xiamen Shenji Stones Co. Ltd. [Shenji]. Shenji was established in October 2002 as a Sino-Hongkong joint venture. With a registered capital of US$5.5 million, it is jointly owned by Xiamen Stone Enterprise Group Co. Ltd. [XSE Group], a large-scale crude stone importer in Xiamen Special Economic Zone, China holding 51% interests while the subject, holding 49%.

Raw materials are imported from Europe and India. After processing in Xiamen, the finished products are exported to the United States, Europe and other Asian countries. Shenji is controlled by Mr. Yang Zhanli.

Shenji’s sale income ranges from RMB45 to 50 million Yuan, total profit was about RMB1 million Yuan.

XSE Group is a reputed and experienced stone supplier. It is a stone manufacturer, stone exporter and importer. It is also ISO9001 qualified. Its stone products mainly include granites and marbles. It constantly imports more than 100 types of granite blocks from India, Brazil, South Africa, Norway, Finland, the United States and Canada.

XSE Group’s factory is equipped with brand-new Italian Barsanti gang saws and automatic polishing line, infrared ray cutting machine, bridge cutting machine, and many other advanced machinery and equipment such as hole drillers and profile machines. The Group is able to meet the demands of the markets with all kinds of stone products. Its products include slabs, tiles, countertops, project cut-to-size and tombstones. Its stone products have been exported to European countries, America, South Korea, Japan, Southeast Asia and the Middle East, as well as sold in the domestic market.

The subject’s business in Hong Kong is not active. History in Hong Kong is over ten years.

Since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on L/C basis or in small credit amounts.

NOTE :

It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.

MORTGAGE OR CHARGE

Date	Particulars	Amount
17-04-2006	Instrument: Security Over Deposits Property: A deposit with chargee in the amount of US$600,000 under Deposit A/C No. 003-031861-253, whatever currency it may subsequently be denominated in, any renewal of such deposit and the interest thereon together with any further monies in any deposit account with the chargee at any of its offices Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Xiamen Branch, China.	Amount secured – (i) all monies in any currency owing by the Company to the chargee at any time, actually or contingently, in any capacity, alone or jointly with any other person; (ii) interest on such monies, to the date on which the chargee receives payment, at the rates payable by the Company or which would have been payable but for any circumstance which restricts payment and (iii) all expenses of the chargee in perfecting or enforcing the charge
06-10-2008	Instrument: Security Over Deposits with the Bank (Individual and Firm – Under Seal) Property: The deposit with HSBC Bank (China) Co. Ltd., Xiamen Branch in the amount of US$1,000,000 under Deposit A/C No. 003-031861-250 and 003-031861-254, whatever currency it may subsequently be denominated in, any renewal of such deposit and the interest thereon together with any further monies in any deposit account with the chargee at any of its offices Mortgagee: HSBC Bank (China) Co. Ltd., Xiamen Branch, China.	All moneys
12-06-2012	Instrument: Debenture Property: A) By way first fixed charge:- 1) All chattels now or at any time hereafter belonging to the Company 2) All book debts & other debts and monetary claims 3) Any credit balance on any account of the company with the Bank or any other bank or financial institution 4) All goodwill & uncalled capital for the time being of the company 5) All stocks shares debentures bonds loan capital & other securities of any description of any other person 6) All letters patent trademarks service marks designs utility models copyright applications for registration of any of the foregoing & the right to apply for them in any part of the world moral right inventions confidential informational know how and rights of like nature arising or subsisting anywhere in the world in relation to all of the foregoing whether registered or unregistered now or at any time hereafter belonging to the company 7) All present and future contracts or policies of insurance 8) The proceeds of sale of any property hereinbefore referred to. B) By way of floating charge all the undertaking of the company and all its property whatsoever & wheresoever both present & future Mortgagee: HSBC Bank (China) Co. Ltd., Xiamen Branch, China.	As security for the payment & discharge of the monies and liabilities

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.61
UK Pound	1	Rs.83.98
Euro	1	Rs.71.94

INFORMATION DETAILS

Report Prepared by :

NIT

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.