MIRA INFORM REPORT

Report Date :

26.10.2013

IDENTIFICATION DETAILS

Name :	CONCORD INTERNATIONAL OIL LTD.
Registered Office :	Room 605, 6/F., Lippo Sun Plaza, 28 Canton Road, Tsimshatsui, Kowloon
Country :	Hong Kong
Date of Incorporation :	03.09.1992
Com. Reg. No.:	16072748
Legal Form :	Private Limited Company
LINE OF BUSINESS :	BROKER/TRADER; TRANSHIPMENT AGENT OF ALL KINDS OF PETROLEUM PRODUCTS, OIL, COAL AND RELATED CHEMICAL PRODUCTS.
No. of Employees :	10

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
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	A2	A2

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

CONCORD INTERNATIONAL OIL LTD.

ADDRESS

Room 605, 6/F., Lippo Sun Plaza, 28 Canton Road, Tsimshatsui, Kowloon, Hong Kong.

PHONE: 852-2376 1861, 2376 1891, 2376 1865

FAX: 852-2735 0179

E-MAIL: andychan17@biznetvigator.com

MANAGEMENT

Managing Director: Mr. Leung Kai Fai

SUMMARY

Incorporated on: 3rd September, 1992.

Organization: Private Limited Company.

Capital: Nominal: HK$12,500,000.00

Issued: HK$12,500,000.00

Business Category: Broker/Trader; Transhipment Agent.

Annual Turnover: US$25-30 million.

Employees: 10.

Main Dealing Banker: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

Banking Relation: Satisfactory.

Company name

CONCORD INTERNATIONAL OIL LTD.

ADDRESS

Registered Head Office:-

Room 605, 6/F., Lippo Sun Plaza, 28 Canton Road, Tsimshatsui, Kowloon, Hong Kong.

Associated Companies:-

Concord (Tianjin) Petro-Chemical Co. Ltd., China.

Concord Asia Pacific Investment Ltd., Hong Kong.

Concord International Management Ltd., Hong Kong.

BUSINESS REGISTRATION NUMBER

16072748

COMPANY FILE NUMBER

0377481

MANAGEMENT

Managing Director: Mr. Leung Kai Fai

Contact Persons: Mr. Xiang Yu, Mr. Andy Chan

CAPITAL

Nominal Share Capital: HK$12,500,000.00 (Divided into 125,000 shares of HK$100.00 each)

Issued Share Capital: HK$12,500,000.00

SHAREHOLDERS

(As per registry dated 03-09-2013)

Name		No. of shares
CHEUNG Sui Ling		32,500
LEUNG Kai Fai		86,250
LEUNG Man Him		6,250
		–––––––
	Total:	125,000 ======

DIRECTORS

(As per registry dated 03-09-2013)

Name (Nationality)	Address
CHEUNG Yan Lam	Flat C1, 3/F., Sunderland Estate, 1 Hereford Road, Kowloon, Hong Kong.
LEUNG Kai Fai	House G, 28 LaSalle Road, Kowloon, Hong Kong.
LEUNG Man Him	House 16, Mount Beacon, 20 Cornwall Street, Kowloon, Hong Kong.
CHEUNG Sui Ling	House G, 28 LaSalle Road, Kowloon, Hong Kong.

SECRETARY

CHEUNG Sui Ling (As per registry dated 03-09-2013)

HISTORY

The company was incorporated on 3rd September, 1992 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: Broker/Trader; Transhipment Agent.

Lines: All kinds of petroleum products, oil, coal and related chemical products.

Employees: 10.

Commodities Imported From: Southeast Asia, etc.

Markets: China, other Asian countries, etc.

Annual Turnover: US$25-30 million.

Terms/Sales: Various terms.

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

MEMBERSHIP

The Chinese General Chamber of Commerce, Hong Kong.

FINANCIAL INFORMATION

Nominal Share Capital: HK$12,500,000.00 (Divided into 125,000 shares of HK$100.00 each)

Issued Share Capital: HK$12,500,000.00

Mortgage or Charge (Since September 2010): (See attachment)

Profit & Loss: Business is profitable.

Condition: Keeping in an active and satisfactory condition.

Facilities: Making active use of banking facilities.

Payment: So far so good.

Commercial Morality: Satisfactory.

Bankers:-

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

Australia and New Zealand Banking Group Ltd., Hong Kong.

DBS Bank (Hong Kong) Ltd., Hong Kong.

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

Standing: Very Good.

GENERAL

Having issued 125,000 ordinary shares of HK$100.00 each, Concord International Oil Ltd. is jointly owned by Mr. Leung Kai Fai, holding 69% interests; Ms. Cheung Sui Ling, holding 26%, and Mr. Leung Man Him, 5%. Being Hong Kong merchant, all are directors of the subject.

The subject is trading in all kinds of petroleum products, coal and related chemical products. China and the other Asian countries are its prime markets. In recent years, it also has been trading in the following commodities:-

Jatropha Oil, Corn Oil, Palm Oil, Sunflower Oil, etc.

The subject is also a coal exporter and distributor. Most of its coal is sourced from Shanxi Province, China.

The subject has had an associated company Concord (Tianjin) Petro‑Chemical Co. Ltd. [Concord Tianjin] which is in Tianjin, China.

Business commenced on 4th August, 1994, Concord Tianjin is trading in all kinds of petroleum products. With a registered capital of RMB500,000 Yuan, Concord Tianjin is in Tianjin Bonded Zone. Leung Kai Fai is the General Manager of it. Now, Concord Tianjin has become one of the significant petro-chemical product trader in Tianjin, China. The legal representative of Concord Tianjin is Zhang Jianwu.

The subject is chiefly owned by Mr. Leung Kai Fai who was an ex-employee of Feoso Oil. He had been in charge of lubricating oil sales for ten years. He left Feoso and started his own business in 1992.

Leung Kai Fai is a “horse-owner” in Hong Kong. He is also engaged in horses raising and breeding. He is a rather significant character in Horse Racing field in Hong Kong.

The subject has had an associated company in Hong Kong known as Concord Asia Pacific Investment Ltd. [CAPIL] located at the same address. This firm purchased a residential unit in Tsimshatsui, Kowloon, Hong Kong at a consideration of HK$14.393 million in May 2009. In May 2012, CAPIL sold the premises at a consideration of HK$22.88 million. The firm got a net profit of HK$8.487 million.

The annual sales turnover of the subject ranges from US$25 to 30 million. Making a profit every year.

The contact person of the subject is Mr. Andy Chan.

As the history of the subject is over 21 years in Hong Kong, on the whole, consider it good for normal business engagements.

REMARKS

Property information of directors:-

1. Property Location: Flat B on 9/F., 104 Broadway, Mei Foo Sun Chuen, Kowloon, Hong Kong.

Owner: Leung Kai Fai & Cheung Sui Ling

Date of Purchase: 09-07-1996

Purchased Price: HK$7,380,000

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
09-07-1996	-	Bank of Communications, Hong Kong Branch.	Mortgage to secure general banking facilities

2. Property Location: Flat C on 11/F., 6 Broadway, Mei Foo Sun Chuen, Kowloon, Hong Kong.

Owner: Cheung Yan Lam

Date of Purchase: 07-08-1996

Purchased Price: HK$1,200,000

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
07-08-1996	-	Bank of Communications, Hong Kong Branch.	Mortgage to secure general banking facilities

MORTGAGE OR CHARGE

(Since September 2010)

Date	Particulars	Amount
24-08-2010	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
15-02-2011	Instrument: Charge on Cash Deposit to secure Liabilities of the Depositor Property: 1) By way of first fixed charge and agreement to charge: the Deposit and all right, title and interest of the Company 2) By way of set-off: any sum standing to the credit of any one or more of the accounts of the Company with the Bank Mortgagee: DBS Bank (Hong Kong) Ltd., Hong Kong.	All sums of money & liabilities
18-08-2011	Instrument: Charge Over Deposit Property: Deposit Account: All of the Deposit’s time & fixed deposit accounts opened, maintained or held with ANZ at its Hong Kong Branch and all other sums from time to time standing to the credit of all of the Depositor's accounts with ANZ or to which the Depositor is beneficially entitled, whether at ANZ’s Hong Kong brance or at any of ANZ’s other branches or offices, whether in the same or in any other currency & whether in addition to or by way of renewal for or replacement for any sum previously deposited by the Depositor with ANZ or otherwise, together in each case with any interest from time to time accruing in respect thereof Secured Facilities: Each financial facility provided by ANZ to the Depositor from time to time Limits of Charge: Notwithstanding any of the provisions of the Charge, the amount recoverable from the Depositor under the Charge shall not exceed the aggregate of: (a) US$1,500,000; and (b) An amount equal to the aggregate of all interest, costs & expenses and other amounts due by the Depositor under the Charge or due by the Depositor under any document, agreement or notice evidencing the Secured Obligations Mortgagee: Australia & New Zealand Banking Group Ltd., Hong Kong Branch.	All moneys & performance of all other obligations that the Depositor
01-11-2011	Instrument: Security Over Deposit with the Bank Placed in Specified Account Property: A deposit with chargee in the amount of all monies under Deposit A/C No. 491-265138-201 from time to time standing to the credit of the account specified in the Schedule, including any interest accrued thereon Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.	Amount secured
20-04-2012	Instrument: Charge Over Deposit Property: The Chargor, as legal & beneficial owner, charges:- a) By way of a first fixed charge, with full title guarantee, all Deposits in all Accounts and all right, title & interest, both present and future, in and to such Deposits & Accounts in favour of the Chargee as continuing security for the due and punctual payment and performance of the Secured b) By way of first floating charge, the security created of the if and insofar as the same is ineffective as a first fixed charge for any reason Mortgagee: Australia & New Zealand Banking Group Ltd., Hong Kong Branch.	Payment of all moneys & performance of all other obligations that the Chargor and/or the Customer
09-08-2013	Instrument: Trade Finance Security Agreement Property: For good & valuable consideration, receipt of which is acknowledged, the Borrower as beneficial owner and as continuing security for the payment of all secured liabilities:- A) Assigns and agrees to assign absolutely to the Bank all the presend and future rights, title, interests and benefits of the Borrower in and to the following assets:- 1) The Export Credits; 2) The Export Collection Bills; 3) The Sales Contracts; 4) The Invoice Receivables; 5) The Purchases Contracts; 6) The Insurances; 7) The Trade Documents; 8) The Bills of Exchange; 9) The Related Collaterals; & 10) All claims, remedies and proceeds in connection with any of the foregoing B) Charges and agrees to charge to the Bank by way of first fixed charge all the present and future rights, title, interest & benefits of the Borrower in and to the following assets:- 1) The Goods together with their proceeds; 2) The Deposit, and 3) To the extent any Security Asset is not effectively assigned under sub-clause such Security Asset C) Pledges and agrees to pledge to the Bank, the Bills of Exchange, the Pleges Goods & the Trade Documents which are now or may in the future be in actual or constructive possession of the Bank; and D) Charges and agrees to charge to the Bank by way of first floating charge all the present and future rights, title, interest & benefits of the Borrower in and to any Security Asset which is described in the above sub-clauses (a), (b) and (c). Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.	All monies, obligations and liabilities

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.63
UK Pound	1	Rs.99.94
Euro	1	Rs.85.14

INFORMATION DETAILS

Report Prepared by :

SDA

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.