MIRA INFORM REPORT

Report Date :

09.11.2013

IDENTIFICATION DETAILS

Name :	WHITE SWAN LEATHERS

Registered Office :	c/o Gurus & Lexes Consultants Ltd., Suite 1008, 10/F., Prosperity Millennia Plaza, 663 King’s Road, Quarry Bay, Hong Kong.

Country :	Hong Kong

Date of Incorporation :	25.05.2009

Com. Reg. No.:	50710455-000-05

Legal Form :	Sole Proprietorship

Line of Business :	Subject is a leather processing factory. It is processing all kinds of leather and crust leather such as the followings:- Cow — finish leather for handbags and shoes; Pig — nappa and suede for garment and hand bags; & Sheep — W/B, crust, finish garment nappa.

No. of Employees :	No employees in Hong Kong [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
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

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 & address

WHITE SWAN LEATHERS

ADDRESS

Registered Office:-

c/o Gurus & Lexes Consultants Ltd.

Suite 1008, 10/F., Prosperity Millennia Plaza, 663 King’s Road, Quarry Bay, Hong Kong.

BUSINESS REGISTRATION NUMBER

50710455-000-05

MANAGEMENT

Manager: Ms. Zhu Lei

SOLE PROPRIETOR

Name: Ms. ZHU Lei

Residential Address: 107/4 Wen Miao Kou Cun, Chonglong Town, Zigong City, Sichuan Province, China.

HISTORY

The subject was established on 25th May, 2009 as a sole proprietorship concern owned by Ms. Zhu Lei under the Hong Kong Business Registration Regulations.

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

GENERAL

White Swan Leathers is a sole proprietorship set up and owned by Ms. Zhu Lei who is a China businesswoman. She is a China passport holder and does not have the right to reside in Hong Kong permanently.

Zhu is the manager of the subject and currently residing in Zigong City, Sichuan Province, China.

The subject does not have its own operating office. Its registered office is in a consultant firm located at Suite 1008, 10/F., Prosperity Millennia Plaza, 663 King’s Road, Quarry Bay, Hong Kong known as Gurus & Lexes Consultants Ltd. which is handling its correspondences and documents.

Business commenced on 25th May, 2009, the subject has no employees in Hong Kong.

To our knowledge, the subject is a leather material trader. It imports leather raw materials from India, Spain, Italy, other European countries, etc. and re‑exports to Sichuan Province, China.

The manager of the subject cannot be reached as she is in Sichuan Province, China.

It is likely that the subject has got an associated company in Zigong City, Sichuan Province, China which is also operated by Zhu Lei. This firm is a leather processing factory. It is processing all kinds of leather and crust leather such as the followings:-

Cow — finish leather for handbags and shoes;

Pig — nappa and suede for garment and hand bags; &

Sheep — W/B, crust, finish garment nappa.

Processed leather materials are marketed in China, exported to the other Asian countries, Europe, etc.

The China firm deals with foreign parties under the name of the subject and let foreign firms correspond with the subject’s registered address in Hong Kong. The China firm also exports commodities to foreign markets under the name of the subject and its registered address in Hong Kong.

The subject’s business in Hong Kong is not very active. History in Hong Kong is just over four 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.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.73
UK Pound	1	Rs.100.92
Euro	1	Rs.84.06

INFORMATION DETAILS

Report Prepared by :

NIA

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.