MIRA INFORM REPORT

Report Date :

29.10.2013

IDENTIFICATION DETAILS

Name :	C & A SOURCING LTD.
Registered Office :	Level 18, Millennium City 6, 392 Kwun Tong Road, Kwun Tong, Kowloon
Country :	Hong Kong
Date of Incorporation :	21.12.1979
Com. Reg. No.:	06395994
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter & Buying Office of All kinds of garments, sporting goods & general merchandise
No. of Employees :	200. (Including other group members)

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 :	Good
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

C & A SOURCING LTD.

ADDRESS

Level 18, Millennium City 6, 392 Kwun Tong Road, Kwun Tong, Kowloon, Hong Kong.

PHONE: 852-2732 6222, 2724 8441

FAX: 852-2724 1170, 2369 3185

MANAGEMENT

Managing Director: Mr. Jeffrey John Macho

SUMMARY

Incorporated on: 21st December, 1979.

Organization: Private Limited Company.

Capital: Nominal: HK$4,000,000.00

Issued: HK$3,000,000.00

Business Category: Buying Office.

Group Employees: 200. (Including other group members)

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

Banking Relation: Very Good.

Company name

C & A SOURCING LTD.

ADDRESS

Registered Head Office:-

Level 18, Millennium City 6, 392 Kwun Tong Road, Kwun Tong, Kowloon, Hong Kong.

Inspection Centre:-

Rooms B5001-5014, Asia Terminal Centre, 3, Container Port Road, Kwai Chung, New Territories, Hong Kong.

[Tel.: 852-2796 9728]

Holding Company:-

COFRA Holding AG, Switzerland.

Associated Companies:-

C&A (China) Co. Ltd., China.

C&A Bank GmbH, Germany.

C&A Europe S.A., Belgium.

C&A Foundation, Switzerland.

C&A Mexico S. de. R.L., Mexico.

C&A Sourcing International Ltd., Hong Kong.
[Formerly known as Mondial Oriental Ltd., Hong Kong.]

Cardex Services (HK) Co. Ltd., Hong Kong. [Dissolved]

Foxy Fashion Ltd., Hong Kong. [Dissolved]

Meteor (HK) Ltd., Hong Kong. [Dissolved]

MOL Holdings Ltd., Hong Kong. [Dissolved]

Redevco B.V., Netherlands.

BUSINESS REGISTRATION NUMBER

06395994

COMPANY FILE NUMBER

0076767

MANAGEMENT

Managing Director: Mr. Jeffrey John Macho

Contact Person: Ms. Milky Young M K

CAPITAL

Nominal Share Capital: HK$4,000,000.00 (Divided into 1,000,000 “A” shares, 2,000,000 “B” shares & 1,000,000 Unclassified shares of HK$1.00 each)

Issued Share Capital: HK$3,000,000.00

SHAREHOLDERS

(As per registry dated 21-12-2012)

Name	No. of shares
	Ordinary A	Ordinary B
COFRA Holding AG Grafenauweg 10, 6300 Zug, Switzerland.	1,000,000 =======	2,000,000 =======

DIRECTORS

(As per registry dated 18-06-2013)

Name (Nationality)	Address
Jeffrey John MACHO	Flat D, 19/F., Branksome Grande, 3 Tregunter Path, Mid‑Levels, Hong Kong.
Jacqueline NIXON	Flat B, 40/F., Tower 8, Imperial Cullinan, 10 Hoi Fai Road, Kowloon, Hong Kong.
CHOW Hoi King, Elsa	20/F., Flat D, Tower 3, South Hoizons, 3 South Horizons Drive, Hong Kong.
Christian Tomas A.P. BRENNINKMEIJER	74 Block 6, Sheung Sze Wan, Caribbean Villa, Clear Water Bay, New Territories, Hong Kong.

SECRETARY

(As per registry dated 03-09-2013)

Name	Address	Co. No.
Tricor Strath Ltd.	Level 54, Hopewell Centre, 183 Queen’s Road East, Hong Kong.	0004873

HISTORY

The company was incorporated on 21st December, 1979 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Mondial Services (Hong Kong) Ltd., name changed to the present style on 7th September, 2012.

Long time ago, the subject was located at 11/F. & 12/F., Harbour Crystal Centre, 100, Granville Road, Tsimshatsui East, Kowloon, Hong Kong. It moved to the present address in March 2008.

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

OPERATIONS

Activities: Importer, Exporter & Buying Office.

Lines: All kinds of garments, sporting goods & general merchandise.

Agent for: C&A Group of Companies.

Group Employees: 200. (Including other group members)

Commodities Handled: China, other Asian countries, Hong Kong, etc.

Market: Europe, etc.

Terms/Sales: Various terms.

Terms/Buying: As per contracted.

FINANCIAL INFORMATION

Nominal Share Capital: HK$4,000,000.00 (Divided into 1,000,000 “A” shares, 2,000,000 “B” shares & 1,000,000 Unclassified shares of HK$1.00 each)

Issued Share Capital: HK$3,000,000.00

Alternation of Issued Capital:-

21-12-79	paid up	HK$ 2.00
17-01-80	paid up	HK$2,999,998.00
		–––––––––––––––
Total:	paid up	HK$3,000,000.00 ==============

Profit or Loss: Business is profitable.

Condition: Keeping in an active and good condition.

Facilities: Making active use of general banking facilities.

Payment: So far so good.

Commercial Morality: Good.

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

Standing: Very Good.

GENERAL

Formerly known as Mondial Services (Hong Kong) Ltd., C & A Sourcing Ltd. is a wholly-owned subsidiary of COFRA Holding AG which is a Switzerland-based company. It has had a division known as C&A which is engaged in retailing business.

The subject is sourcing garments from China, the other Asian countries and exporting to Switzerland and the other European countries.

It is trading in the following commodities:-

Suits & Jackets - Men’s, Suits & Jackets - Women’s, Children’s Wear, Blouses, Jeans, Dresses & Skirts, Shirts, Trousers, Slacks, Cardigan, Sweater & Pullover, Sporting Knitwear, Knitted Garments, Crocheted & Hand-Knitted Garments, Tee & Sweat Shirts, Underwear - Men’s, Underwear - Women’s, Underwear - Children’s, Nightwear & Pyjamas, Sport Suits, Windbreaker, Swimwear, Yachting & Fishing Suit, Winter Sports Apparel, Sports Gloves, Belts, Handkerchiefs, Hats & Caps, Hosiery, Scarves, Ties & Bowties, Babies Wear, etc.

The subject is a member of the COFRA Group. It is responsible for the retailing business of the Group.

The COFRA Group of companies are mainly active within the following industries: Retail, Real Estate, private equity investment management.

COFRA Holding AG, founded in October 2001, is the holding company for a privately-owned group of companies located in Europe, North and Latin America and Asia, whose main activities include retail, real estate and private equity investment management. COFRA is headquartered in Zug, Switzerland.

With over 170 years of experience spanning 5 generations of the same family, C&A is one of the leading fashion retailers, with operations in Europe, Brazil, Mexico and China. C&A’s aim has always been to provide high quality affordable fashion for the whole family and for any occasion.

Now C&A is operating about 1,800 retailing shops in China, Europe and the Latin America, in total there are twenty countries throughout the world. Its total employees are over 35,000.

According to C&A, 300 to 350 stores are scheduled to open in the next two to three years worldwide. C&A China currently operates 8 stores in Shanghai, 5 stores in Beijing, and other 22 stores in Shenyang, Zhengzhou, Wuxi, Suzhou, Tianjin, Dalian, Chengdu, Ningbo, Changsha, Wuhan, Taizhou, Jinan, Shijiazhuang, Chongqing, Tangshan, etc.

C&A has five lifestyle brands -- CLOCKHOUSE, YESSICA, ANGELO LITRICO, PALOMINO and BABY CLUB -- offering global fashion trends for men, ladies and kids from hip and trendy to urban chic and beyond, as well as accessories, lingerie and more.

The subject is fully supported by its holding company. History in Hong Kong is about 34 years.

The annual sales turnover of the subject is very significant. Business is profitable.

On the whole, in view of the subject’s parentage and background, consider it good for normal business engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.50
UK Pound	1	Rs.99.49
Euro	1	Rs.84.88

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%)

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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.