MIRA INFORM REPORT

Report Date :

18.10.2013

IDENTIFICATION DETAILS

Name :	ALKON SALES PTY LIMITED
Formerly Known as:	HOSE VAN PTY LIMITED
Registered Office :	C/O Consolidated Bearing Co (Australia) Pty Limited, 3 The Crescent, Kingsgrove, New South Wales, Zip/Postal Code 2208
Country :	Australia
Date of Incorporation :	29.09.2003
Com. Reg. No.:	106493547
Legal Form :	Australian Proprietary Company
Line of Business :	Importer and Wholesale distributor of industrial fasteners mainly to the building, electrical and automotive industries
No. of Employees :	1,600 employees (Inenco Group)

RATING & COMMENTS

MIRA’s Rating :

B

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

Status :	Moderate
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)
Australia	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

austraLia ECONOMIC OVERVIEW

The Australian economy has experienced continuous growth and features low unemployment, contained inflation, very low public debt, and a strong and stable financial system. By 2012, Australia had experienced more than 20 years of continued economic growth, averaging 3.5% a year. Demand for resources and energy from Asia and especially China has grown rapidly, creating a channel for resources investments and growth in commodity exports. The high Australian dollar has hurt the manufacturing sector, while the services sector is the largest part of the Australian economy, accounting for about 70% of GDP and 75% of jobs. Australia was comparatively unaffected by the global financial crisis as the banking system has remained strong and inflation is under control. Australia has benefited from a dramatic surge in its terms of trade in recent years, stemming from rising global commodity prices. Australia is a significant exporter of natural resources, energy, and food. Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron, copper, gold, natural gas, uranium, and renewable energy sources. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. Australia is an open market with minimal restrictions on imports of goods and services. The process of opening up has increased productivity, stimulated growth, and made the economy more flexible and dynamic. Australia plays an active role in the World Trade Organization, APEC, the G20, and other trade forums. Australia has bilateral free trade agreements (FTAs) with Chile, Malaysia, New Zealand, Singapore, Thailand, and the US, has a regional FTA with ASEAN and New Zealand, is negotiating agreements with China, India, Indonesia, Japan, and the Republic of Korea, as well as with its Pacific neighbors and the Gulf Cooperation Council countries, and is also working on the Trans-Pacific Partnership Agreement with Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam.

Source : CIA

IDENTIFICATION DETAILS

Verified Address

Subject name : ALKON SALES PTY LIMITED

Other style / Business name : ALKON FASTENERS

Business address : 12-14 Abruzzo Crescent

Town : Thomastown

Province : Victoria

Zip/postal code : 3074

Country : Australia

Tel : +61 3 94643711

Fax : +61 3 94643733

Email : sales@alkon.com.au

Website : www.alkon.com.au

Registered address : C/o CONSOLIDATED BEARING CO (AUSTRALIA) PTY LIMITED

3 The Crescent

Town : Kingsgrove

Province : New South Wales

Zip/postal code : 2208

Country : Australia

Postal address : P.O. Box 82

Town : Thomastown

Province : Victoria

Zip/postal code : 3074

Country : Australia

SUMMARY DETAILS

Executive Summary

Date founded or registered : 29/09/2003

Legal form : Australian Proprietary Company

Chief executive : Mark Hunter See

Issued & paid up capital : AUD 1

Line of business : Import and wholesale distribution of industrial fasteners.

Staff employed : 1,600 employees (Inenco Group)

CREDIT RISK OPINION

Company Analysis

Country risk : Country risk is minimal

Operation trend : Operational trend is steady

Management experience : Management is modestly experienced

Financial performance : Financial performance is undetermined

Organization structure : Organizational structure is stable

Detrimental : No detrimental found

Payment history : No payment delays noted

STATUTORY DETAILS

Registry Data

Registration date : 29/09/2003

Legal form : Australian Proprietary Company

Registration no Australian Company Number: 106493547

Registered authority : Australian Securities and Investments Commission

Fiscal/ Tax no : Australian Business Number: 49106493547

Registry status : Live/Active

Previous name : HOSE VAN PTY LIMITED (initial)

Change of legal form : None reported.

MANAGEMENT / DIRECTORS

Key Management

Name : Mark Hunter See

Designation : Managing Director

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

Appointments

Name : Matthew Hinton Barnett

Designation : Director

Appointment date : 16/06/08

Address : 14 Windward Avenue

Mosman, NSW 2088

Australia

Biography : Born on 21-11-1962 in Melbourne, Victoria, Australia.

Name : Mark Hunter See

Designation : Director

Appointment date : 20/11/12

Address : 5 Decora Crescent

Warabrook, NSW 2304

Australia

Biography : Born on 08-12-1965 in Maitland, New South Wales, Australia.

Name : Hans Albert Kerkhoven

Designation : Director

Appointment date : 20/11/12

Address : De Roy Van Zuidemijnlaan 39

4818 Ga Breda

Netherlands

Biography : Born on 13-11-1962 in Leiderdorp, Netherlands.

Name : Matthew Paul Street

Designation : Company Secretary

Appointment date : 16/06/05

Address : 6 Humberstone Avenue

Gymea, NSW 2227

Australia

Biography : Born on 05-03-1972 in Sutherland, New South Wales, Australia.

Staff employed : 1,600 employees (Inenco Group)

SHARE CAPITAL

Composition

Authorized Capital : AUD 1

No of shares : 1 Ordinary Share

Share par value : AUD 1

Issued capital : AUD 1

Paid up capital : AUD 1

OWNERSHIP / SHAREHOLDERS

How listed : Full List

Composition

Shareholder name : FASTENERS AUSTRALIA PTY LIMITED

Address : No 3 The Crescent

Kingsgrove, NSW 2208

Australia

No. of shares : 1 Ordinary Share

% of shares : 100%

RELATED COMPANIES & CORPORATE AFFILIATIONS

Structure

Name : INENCO PTY LIMITED

Affiliation type : Ultimate Holding Company

Address : 3 The Crescent

Kingsgrove, NSW 2208

Australia

Name : FASTENERS AUSTRALIA PTY LIMITED

Affiliation type : Parent Company

Address : No 3 The Crescent

Kingsgrove, NSW 2208

Australia

Name : INENCO GROUP NZ LIMITED

Affiliation type : Sister Company

Address : C/O WHK

44 York Place

Dunedin Central, Dunedin 9016

New Zealand

Name : CBC AUSTRALIA PTY LIMITED

Affiliation type : Sister Company

Address : 3 The Crescent

Kingsgrove, NSW 2208

Australia

Comments : CBC Australia Pty Ltd is a bearing and power transmission supplier to the mining

and manufacturing industries in Australia, and Indonesia.

Name : ROLLING BEARINGS COMPANY PTY LTD

Affiliation type : Sister Company

Address : 221 Boundary Road

Braeside, VIC 3195

Australia

Related companies and corporate affiliations comments

Other companies of the Inenco Group should be considered affiliated companies of the Subject.

BANK & MORTGAGES

Bank Details

Name of bank : Australia and New Zealand Banking Group

Address : Australia

Account details : Current Account

Comments It is generally not the policy of local banks to provide credit status information to

non related parties, however interested parties would be advised to consult first

with the Subject if banker's references are required.

Mortgages : None reported.

Legal Fillings

Bankruptcy fillings : None reported.

Court judgements : None reported.

Tax liens : None reported.

Others : None reported.

FINANCIAL DATA

Comments : The Subject is classified as a small proprietary company by the Australian

Securities & Investments Commission hence is not required to disclose their

financial statement.

A proprietary company is defined as small for a financial year if it satisfies at least

two of the following:

- The consolidated revenue for the financial year of the company and any entities

it controls is less than $25 million;

-The value of the consolidated gross assets at the end of the financial year of the

company and any entities it controls is less than $12.5 million, and

-The company and any entities it controls have fewer than 50 employees at the

end of the financial year.

OPERATION DETAILS

Main activities : The Subject engages in import and wholesale distribution of industrial

fasteners mainly to the building, electrical and automotive industries.

The Subject is ultimately owned by Inenco Pty Ltd. Inenco Pty Ltd consists

of 26 companies, grouped in different product/market divisions.

Inenco Pty Limited's core business is distribution of bearings and power

transmission products in Australia and New Zealand.

Product & services :

Bolts

Nuts

Screws

Masonry Anchors

Threaded Rods

Washers

Rivets

Anchors

Nail In Plugs

Wall Plugs

Driver Bits

Drill Bits

Pins

Wrenches

Adhesives & Sealants

Handy Packs

Brand :

ALKON FASTENERS

AK

Purchases

International : China, Taiwan, India

Sales

Local : Yes

International : New Zealand and South East Asia

Property & Assets

Premises : The Subject operates from the verified heading address consisting of an

administrative office and warehouse.

Branches : In addition, the Subject operates from a branch located at:

2/25 Michlin St, Moorooka

Brisbane, QLD 4105

Australia

Tel: +61 7 38486855

Fax: +61 7 38480411

Intellectual property : ISO 9001:2008 - Quality Management Systems certified.

SUMMARIZED COUNTRY RISK

Gross Domestic Products (GDP) & Economic Overview

Central bank : Reserve Bank of Australia

Reserve of foreign exchange & gold : US$ 46.714 billion

Gross domestic product - GDP : US$ 1.586 trillion

GPP (Purchasing power parity) : 954.296 billion of International dollars

GDP per capita - current prices : US$ 68,916

GDP - composition by sector : agriculture: 4%

industry: 25.6%

services: 70.4%

Inflation : 2010: 2.8%

2011: 3.4%

2012: 2.7%

Unemployment rate : 2010: 5.2%

2011: 5.1%

2012: 5.2%

Public debt

(General Government gross debt as

a % GDP) 2010: 20.4%

2011: 22.9%

2012: 24%

Government bond ratings : Standard & Poor's: AAA

Moody's rating: Aaa

Moody's outlook: STA

Market value of publicly traded shares : US$1.198 trillion

Largest companies in the country : Qantas Airways (Airline),Coca-Cola Amatil (Beverages), CSL (Biotechs),

Brambles (Business & Personal Services),Crown Ltd (Casinos & aming), Amcor (Containers & Packaging),Suncorp-Metway (Diversified Insurance), BHP Billiton (Diversified Metals & Mining),Newcrest Mining (Diversified Metals & Mining), Orica (Diversified Metals & Mining), Iluka Resources (Diversified Metals & Mining), Origin Energy (Electric Utilities), AGL Energy (Electric Utilities), Wesfarmers (Food Retail), Woolworths (Food Retail), Metcash (Food Retail), Macquarie Group (Investment services), AMP (Investment services), Challenger Ltd (Investment services), Fortescue Metals Group (Iron & Steel), Bluescope Steel (Iron & Steel), Commonwealth Bank (Major Banks), Westpac Banking Group (Major Banks), National Australia Bank (Major Banks), ANZ (Major Banks), Woodside Petroleum (Oil & Gas Operations), Santos (Oil & Gas Operations), Caltex Australia (Oil & Gas Operations), WorleyParsons (Oil Services & Equipment), Toll Holdings (Other Transportation), Transurban Group (Other Transportation), QBE Insurance Group (Property & Casualty Insurance), Insurance Australia Group (Property & Casualty Insurance), QR National (Railroads), Westfield Group (Real Estate), Stockland Australia (Real Estate), Westfield Retail Trust (Real Estate), Lend Lease (Real Estate), CFS Retail Property Trust (Real Estate), Goodman Group (Real Estate), Bendigo & Adelaide Bank (Regional Banks), Bank of Queensland (Regional Banks), Incitec Pivot (Specialized Chemicals), Telstra (Telecommunications Services)

Trade & Competitiveness Overview

Total exports : US$263.9 billion

Exports commodities : Coal, iron ore, gold, meat, wool, alumina, wheat, machinery and transport

equipment

Total imports : US$239.7 billion

Imports commodities : Machinery and transport equipment, computers and office machines,

telecommunication equipment and parts; crude oil and petroleum products

Export - major partners : China 27.4%, Japan 19.2%, South Korea 8.9%, India 5.8%

Import - major partners : China 18.5%, US 11.4%, Japan 7.9%, Singapore 6.3%, Germany 4.7%

FDI Inflows : 2009: US$26,554 million

2010: US$35,556 million

2011: US$41,317 million

FDI Outflows : 2009: US$16,693 million

2010: US$12,791 million

2011: US$19,999 million

Best countries for doing business : 10 out of 185 countries

Global competitiveness ranking : 20 (ranking by country on a basis of 144, the first is the best)

Country and Population Overview

Total population : 22.68 million

Total area : 7,692,024 km2

Capital : Canberra

Currency : Australian dollars (AUD)

Internet users as % of total

Population 79%

PAYMENT HISTORY

PAY

Purchase Term

International : Telegraphic transfer, Credit 30-60 days

Sales Term

Local : Bank transfer, Credit 30-60 days

International : Telegraphic transfer, Credit 30-60 days

Trade Reference/ Payment Behaviour

Comments : As local and international trade references were not supplied, the Subject's

payment track record history cannot be appropriately determined but based

on our research, payments are believed to be met without delay.

Investigation Note

Sources : Interviews and material provided by the Subject

Other official and local business sources

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.58
UK Pound	1	Rs.98.51
Euro	1	Rs.83.49

INFORMATION DETAILS

Report Prepared by :

MNL

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.