MIRA INFORM REPORT

Report Date :

31.10.2013

IDENTIFICATION DETAILS

Name :	HB COMMUNICATIONS (HK) LTD.
Registered Office :	Room 1015-1020, 10/F., Tower 1, Grand Century Place, 193 Prince Edward Road West, Kowloon
Country :	Hong Kong
Date of Incorporation :	05.02.2013
Com. Reg. No.:	60971362
Legal Form :	Private Limited Company
Line of Business :	Broadcast Solution Provider of All kinds of communication products and services, video systems and tools for broadcasters, cable networks.
No. of Employees :	20

RATING & COMMENTS

MIRA’s Rating :

NB

RATING		STATUS	PROPOSED CREDIT LINE
----	NB	New Business	----

Status :	New Company
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	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

HB COMMUNICATIONS (HK) LTD.

ADDRESS

Room 1015-1020, 10/F., Tower 1, Grand Century Place, 193 Prince Edward Road West, Kowloon, Hong Kong.

PHONE: 852-2174 2500, 2628 3013, 2776 0732

FAX: 852-2776 0628

MANAGEMENT

Managing Director: Mr. Steven Glenn Eisner

SUMMARY

Incorporated on: 5th February, 2013.

Organization: Private Limited Company.

Capital: Nominal: HK$10,000.00

Issued: HK$1.00

Business Category: Broadcast Solution Provider.

Employees: 20.

Main Dealing Banker: Citibank N A, Hong Kong.

Banking Relation: Satisfactory.

Company name

HB COMMUNICATIONS (HK) LTD.

ADDRESS

Registered Office:-

c/o TMF Secretaries (HK) Ltd.

36/F., Tower Two, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong.

Operating Office:-

Room 1015-1020, 10/F., Tower 1, Grand Century Place, 193 Prince Edward Road West, Kowloon, Hong Kong.

Holding Company:-

Kelday Enterprises Ltd., Hong Kong.

Associated Companies:-

Harris Communications Ltd., Hong Kong. (same address)

HB Communications (UK) Ltd., UK.

HBC Solutions Inc., US.

Leich Asia Ltd., Hong Kong. (same address)

BUSINESS REGISTRATION NUMBER

60971362

COMPANY FILE NUMBER

1861078

MANAGEMENT

Managing Director: Mr. Steven Glenn Eisner

CAPITAL

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

Issued Share Capital: HK$1.00

SHAREHOLDER

(As per registry dated 05-02-2013)

Name	No. of share
Kelday Enterprises Ltd., Hong Kong.	1 =

DIRECTORS

(As per registry dated 18-02-2013)

Name (Nationality)	Address
Daniel Eric ABRAMS	236 North Bundy Drive, Los Angeles, California, 90049, US.
Steven Glenn EISNER	17544 Weddington Street, Encino, California 91316, US.

SECRETARY

(As per registry dated 05-02-2013)

Name	Address	Co. No.
TMF Secretaries (HK) Ltd.	36/F., Tower Two, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong.	0099444

HISTORY

The subject was incorporated on 5th February, 2013 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: Broadcast Solution Provider.

Lines: All kinds of communication products and services, video systems and tools for broadcasters, cable networks.

Employees: 20.

Commodities Imported: Foreign advanced countries, etc.

Markets: North America, Europe, and Africa.

Terms/Sales: As per contracted.

Terms/Buying: Various terms.

FINANCIAL INFORMATION

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

Issued Share Capital: HK$1.00

Profit or Loss: Too early to offer an opinion.

Condition: Business is under development.

Facilities: Making fairly active use of general banking facilities.

Payment: Met trade commitments as required.

Commercial Morality: Satisfactory

Banker: Citibank N A, Hong Kong.

Standing: Normal.

GENERAL

Having issued just one ordinary share of HK$1.00, HB Communications (HK) Ltd. is a wholly owned subsidiary of Kelday Enterprises Ltd. which is a Hong Kong-registered firm.

The director of the subject Steven Glenn Eisner is also the director of HB Communications (UK) Ltd. He is also an attorney. Currently, he is 43 years old.

The Gores Group (held by The Gores Group LLC of the United States) acquired the business of Harris Broadcast Communications (held by Harris Corporation) and formed HB Communications in January 2013. The subject, incorporated in February 2013, is the Hong Kong branch company of HB Communications.

The subject is engaged in the same lines of business as its associated company HBC Solutions Inc. [HBC Solutions], a US-based firm.

HBC Solutions, doing business as Harris Broadcast, develops audio and video systems and tools for broadcasters, cable networks, MSOs, and mobile and IPTV providers worldwide. Its products include advertising software, automation solutions, business intelligence and analytics, digital asset management systems, distribution amplifiers, editing systems, fibre optic solutions, graphics, integrated channel playout, master control and branding, multiviewers, network monitoring and control, networking and encoding products, programming and rights software, radio studio systems, radio transmission systems, routing and control systems, servers, signal processing solutions, television transmission equipment, test and measurement systems, and voice/data networking for public safety, as well as sales, traffic, and billing software. HBC Solutions also provides solutions for television, radio, sports and live events, digital out-of-home, news, and government. It markets and sells its products through resellers in North America, Europe, and Africa. HBC Solutions was formerly known as Gores Broadcast Solutions, Inc. The company was founded in 1922 and is based in Englewood, Colorado with additional office locations around the world. HBC Solutions is a former subsidiary of Harris Corporation.

The Gores Group, founded by CEO and Chairman Alec Gores, is a control oriented private equity firm specializing in acquiring and partnering with businesses that can benefit from its operational expertise and flexible capital base. It combines the operational and due diligence capabilities of a strategic buyer with the seasoned M&A team of a traditional financial buyer.

Since 1987, Gores Group has successfully acquired and operated more than 80 companies while employing a number of professionals.

Its current portfolio includes companies across diverse industries in which its partners have considerable experience, including technology, telecommunications, business services, industrial, healthcare, media & entertainment, and consumer products. Gores offices in North America and Europe serve its active investment programs in those regions.

Headquartered in Los Angeles, the United States, Gores Group currently has approximately US$3.5 billion in assets under management (as of 30th June, 2013) and is presently investing from Gores Capital Partners III, L.P. and Gores Small Capitalization Partners, L.P., which have approximately US$2.1 billion and US$300 million in capital commitments, respectively.

The subject is supported by the Gores Group.

On the whole, since the history of the subject is short in Hong Kong, consider it good for normal business engagements on L/C basis.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.49
UK Pound	1	Rs.98.71
Euro	1	Rs.84.49

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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