MIRA INFORM REPORT

Report Date :

11.11.2013

IDENTIFICATION DETAILS

Name :	WING FAT ENTERPRISES LTD.

Registered Office :	Room 1214-1218, 12/F., Peninsula Centre, 67 Mody Road, Tsimshatsui East, Kowloon

Country :	Hong Kong

Date of Incorporation :	26.11.2004

Com. Reg. No.:	35165287

Legal Form :	Private Limited Company

Line of Business :	Importer, Re-exporter and Wholesaler of all kinds of garments, fabrics and other textiles.

No. of Employees :	25. (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 :	Good
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

WING FAT ENTERPRISES LTD.

address

Room 1214-1218, 12/F., Peninsula Centre, 67 Mody Road, Tsimshatsui East, Kowloon, Hong Kong.

PHONE: 852-3552 5500, 3553 5607

FAX: 852-3552 5501, 2723 3357

E-MAIL: rajesh@basicline.com.hk

wingfat@wingfat.biz

MANAGEMENT

Managing Director: Mr. Seema Rajesh Mirpuri

SUMMARY

Incorporated on : 26th November, 2004.

Organization : Private Limited Company.

Capital: Nominal : HK$2,000,000.00

Issued : HK$2,000,000.00

Business Category : Importer, Re-exporter and Wholesaler.

Employees : 25. (Including associates)

Main Dealing Banker : The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Banking Relation : Satisfactory.

Company name

WING FAT ENTERPRISES LTD.

ADDRESS

Registered Head Office:-

Room 1214-1218, 12/F., Peninsula Centre, 67 Mody Road, Tsimshatsui East, Kowloon, Hong Kong.

Holding Company:-

Euroline Overseas Co. Ltd., British Virgin Islands.

Affiliated/Associated Companies:-

· Basicline International Ltd., Hong Kong. (Same address)

· RK Manufacturing Corporation, Philippines.

· Wing Fat Enterprises Ltd., China.

· Wing Fat Enterprises Ltd., India.

· Wing Fat Enterprises Ltd., Bangladesh.

BUSINESS REGISTRATION NUMBER

35165287

COMPANY FILE NUMBER

0936443

MANAGEMENT

Managing Director: Mr. Seema Rajesh Mirpuri

Contact Person: Ms. Sabine Tarte

CAPITAL

Nominal Share Capital : HK$2,000,000.00

(Divided into 2,000,000 shares of HK$1.00 each)

Issued Share Capital : HK$2,000,000.00

SHAREHOLDERS

(As per registry dated 26-11-2012)

Name	Occupation	No. of shares
Euroline Overseas Co. Ltd. Palm Grove House, P.O. Box 438, Road Town, Tortola, British Virgin Islands.	Corporation	1,200,000
Tagifa Hong Kong Ltd., Hong Kong.	Corporation	800,000
		––––––––
	Total:	2,000,000 =======

DIRECTOR

(As per registry dated 026-11-2012)

Name

(Nationality)

Address

Seema Rajesh MIRPURI

Flat B, U23/F., Block 3, Garden Terrace, 8A Old Peak Road, Hong Kong.

SECRETARY

(As per registry dated 26-11-2012)

Name	Address
Rajesh Prishotam MIRPURI	Flat B, U23/F., Block 3, Garden Terrace, 8A Old Peak Road, Hong Kong.

HISTORY

The subject was incorporated on 26th November, 2004 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, Re-exporter and Wholesaler.

Lines : All kinds of garments, fabrics and other textiles.

Employees : 25. (Including associates)

Commodities Imported : Imported from Europe, China, India

Markets : South Africa, Asian countries

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

Terms/Buying : As per contracted.

FINANCIAL INFORMATION

Nominal Share Capital : HK$2,000,000.00

(Divided into 2,000,000 shares of HK$1.00 each)

Issued Share Capital : HK$2,000,000.00

Mortgage or Charge:-

Date of Charge : 27-04-2005

Amount : All monies obligations and liabilities

Property : By way of first fixed charge of all monies from time to time standing to the credit of the Security 'Account (means deposit account number 630-588783-824) and any account opened by the Chargee

Mortgagee : Belgian Bank, Hong Kong Branch.

[Business was taken over by Industrial & Commercial Bank of China (Asia) Ltd.]

Profit or Loss : Business is profitable.

Condition : Keeping in a satisfactory condition.

Facilities : Actively using general banking facilities.

Payment : Met as contracted.

Commercial Morality : Satisfactory.

Bankers

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

Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

Standing : Good.

GENERAL

Having issued 2 million ordinary shares of HK$1.00 each, Wing Fat Enterprises Ltd. was a wholly owned subsidiary of Euroline Overseas Co. Ltd. [Euroline] which was a BVI-registered firm. Now, the subject is jointly owned by Euroline, holding 60% interests, and Tagifa Hong Kong Ltd., holding 40%.

The subject is chiefly controlled by Mr. Seema Rajesh Mirpuri who is an Indian. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently. He is also the only director of the subject.

The subject has got an associated company Basicline International Ltd. [Basicline] located at its operating address. Basicline and the subject are engaged in the same lines of business.

Incorporated on 17th August, 1990, Basicline is a private limited company jointly owned by Mr. Prishotam Ramchand Mirpuri and Mr. Asha Prishotam Mirpuri, both of whom are the members of the Indian Mirpuri family. The former is holding 50.34% while the latter, holding 49.66%. The two Mirpuris are also directors of Basicline and have got the right to reside in Hong Kong permanently as they are Hong Kong ID Card holders.

The subject is a garment, fabric and other textile product importer and re‑exporter. It is trading in the following products:-

Suits & Jackets - Men’s;

Suits & Jackets - Women’s;

Children’s Wear;

Anoraks;

Parkas & Carcoats;

Blouses;

Coats;

Denim Garments;

Dresses & Skirts;

Shirts;

Trousers & Slacks;

Knitted Garments;

Crocheted & Hand-Knitted Garments; &

Tee & Sweat Shirts,

Commodities are mainly imported China, other Asian countries, while its re‑exported markets are Asian countries, Europe, the United States and even South Africa. The subject also trades in sweaters, knitted accessories. Overall business has been steady.

The subject and Basicline have developed long term business ties with a number of firms in India and buyers in South Africa.

The subject has set up an office in Guangzhou, Guangdong Province, China. The subject also has set up offices in Mumbai of India, Dhaka of Bangladesh and Guangzhou of China.

Besides, the subject has had an associated company RK Manufacturing Corporation [RKMC] which is in the Philippines. Located at Pasay City, Manila, the Philippines, RKMC is a garment manufacturer which is also operated by the Mirpuri family.

In order to penetrate the international market further, Basicline has taken part in fairs and exhibitions held in Hong Kong and other foreign large cities. For instance, the subject took part in the fair held in Las Vegas, the United States in February, 2010.

The contact person of the subject Ms. Sabine Tarte is also an Indian.

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

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 :

NNA

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.