MIRA INFORM REPORT

Report Date :

16.08.2014

IDENTIFICATION DETAILS

Name :	LOKUMAL & CO. (HONG KONG) LTD.

Registered Office :	Unit 611-613, 6/F., Block A, New Mandarin Plaza, 14 Science Museum Road, Tsimshatsui East, Kowloon.

Country :	Hongkong

Date of Incorporation :	13.03.1970

Com. Reg. No.:	02938201

Legal Form :	Private Limited Company

Line of Business :	Importers and Exporters of Transhipment Agent.

No. of Employees :	15

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 :	Satisfactory

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 – June 01, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Hongkong

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

HONGKONG - 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 has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: 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, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. 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 12% of total system deposits in Hong Kong by the end of 2013. 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 total trade 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. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies.

Source : CIA

Company name and Address

LOKUMAL & CO. (HONG KONG) LTD.

ADDRESS: Unit 611-613, 6/F., Block A, New Mandarin Plaza, 14 Science Museum Road, Tsimshatsui East, Kowloon, Hong Kong.

PHONE: 852-2523 1161-4, 2521 1359

FAX: 852-2810 4155, 2525 4983

E-MAIL: office@lokumal.com.hk

samoa.consulate@gmail.com

MANAGEMENT

Managing Director: Mr. Ramesh Mahtani

SUMMARY

Incorporated on: 13th March, 1970.

Organization: Private Limited Company.

Capital: Nominal:HK$8,500,000.00

Issued: HK$8,500,000.00

Business Category: Importer and Exporter, Transhipment Agent.

Employees: 15.

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

Banking Relation: Good.

ADDRESS

Registered Head Office:-

Unit 611-613, 6/F., Block A, New Mandarin Plaza, 14 Science Museum Road, Tsimshatsui East, Kowloon, Hong Kong.

Mailing Address:-

G.P.O. Box 1213, Hong Kong.

Overseas Branch:-

Lokumal & Co. (Hong Kong) Ltd.

P.O. Box 68307, Taipei, Taiwan.

[Tel: (8862) 5956 121/3, Fax: (8862) 5956 057]

Overseas Associates:-

Lokumal & Co. (Guangzhou) Ltd., China.

Lokumal & Co. (Yi Wu) Ltd., China.

Lokumal (Singapore) Pte. Ltd., Singapore.

Lokumal Trading (India) Pvt. Ltd., India.

Mahtani Brothers Co. Ltd., Thailand.

Mahtani Brothers Enterprise, Malaysia.

PT. Lokumals Export Indonesia, Indonesia.

BUSINESS REGISTRATION NUMBER

02938201

COMPANY FILE NUMBER

0019775

MANAGEMENT

Managing Director: Mr. Ramesh Mahtani

CAPITAL

Nominal Share Capital: HK$8,500,000.00 (Divided into 85,000 shares of HK$100.00 each)

Issued Share Capital: HK$8,500,000.00

SHAREHOLDERS

(As per registry dated 13-03-2014)

Name		No. of shares
Ramesh MAHTANI		30,820
Radhakishin Isardas MAHTANI		30,820
Sanjay MAHTANI		10,000
Aroon Radhakishin MAHTANI		10,000
Mira Ramesh MAHTANI		1,680
Sheila Radhakishin MAHTANI		1,680
		––––––
	Total:	85,000 =====

DIRECTORS

(As per registry dated 13-03-2014)

Name

(Nationality)

Address

Radhakishin Isardas MAHTANI

Flat C2, 20/F., Villa Monte Rosa, 41A Stubbs Road, Hong Kong.

Ramesh MAHTANI

Flat D1, 18/F., Villa Monte Rosa, 41A Stubbs Road, Hong Kong.

SECRETARY

Ramesh MAHTANI (As per registry dated 13-03-2014)

HISTORY

The company was incorporated on 13th March, 1970 as a private limited liability company under the Hong Kong Companies Ordinance in order to take over the business of Lokumal & Co. which was established in December 1962.

Very long time ago, the subject was located at 2/F., Grand Progress Building, 58-62 D’Aguilar Street, Hong Kong. It moved to the present address in May 2009.

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

OPERATIONS

Activities: Importers and Exporters; Transhipment Agent.

Lines: Imports: Chinese goods and garments.

Exports: Bicycle and bicycle parts, Chinese goods, garments, sewing machine, textiles, electronic products, toys/games/dolls.

Employees: 15.

Commodities Imported: Bought in Hong Kong, China, other Asian countries, etc.

Markets: Africa, Middle East, Australia, Central and South America, Southeast Asia, etc.

Terms/Sales: L/C, T/T, etc.

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

MEMBERSHIP

The Indian Chamber of Commerce Hong Kong, Hong Kong.

FINANCIAL INFORMATION

Nominal Share Capital: HK$8,500,000.00 (Divided into 85,000 shares of HK$100.00 each)

Issued Share Capital: HK$8,500,000.00

Mortgage or Charge (since 2007): (See attachment)

Profit & Loss: Business is profitable.

Condition: Keeping in an active and good manner.

Facilities: Making active use of general banking facilities.

Payment: No Complaints

Commercial Morality: Good.

Bankers:-

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

ABN AMRO Bank N.V., Hong Kong Branch.

Bank of India, Hong Kong Branch.

Banque Nationale de Paris, Hong Kong Branch.
[Now known as BNP Paribas]

Canara Bank, Hong Kong Branch.

DBS Bank Ltd., Hong Kong Branch.

HBZ Finance Ltd., Hong Kong.

Indian Overseas Bank, Hong Kong Branch.

Banking:-

One source reports they maintain an active and well conducted current account opened in their books on 7th November, 1973. They handle their import bills under documentary credits. They negotiate their export bills both under and not under documentary credits.

Another source informs active and properly conducted account opened since 1st April, 1971.

Third source states subject maintains a satisfactorily conducted current account with them since 21st July, 1975. The have handled their import and export bills with satisfactory experience.

Fourth source says current account opened in January 1972 has been satisfactory conducted.

Fifth source states the company maintains well conducted current account in their books opened in July 1965. They have financed their import and export transactions with good results.

Standing: Very Good.

GENERAL

Lokumal & Co. (Hong Kong) Ltd. is the successor to Lokumal & Co. which was established in 1962. It is an Indian firm owned by the Mahtani family. Now it is owned by six members of the family.

The subject is trading in general merchandise.

It belongs to the Lokumal Group of Companies which consists of a number of companies located in Guangzhou and Yiwu of China, Bangkok of Thailand, Singapore, New Delhi of India.

The subject is trading in the following commodities:

Suits & Jackets - Men’s, Suits & Jackets - Women’s, Blouse - Plain, Dresses & Skirts, Shirt - Woven & Knitted, Trousers & Slacks, Toys - Metal, Toys - Plastic, Freewheel, Battery Operated Toys, Clocks, Watches, Cookware, Cutlery & Flatware, Tableware - Porcelain/ Ceramic / Stone, Household Cleaning Tool, Clothes Peg - Plastic, Clothes Peg - Wooden, Hanger - Plastic, Hanger - Wooden, Giftware, Advertising Premium (Promotional item), Exercise Book, Ball Pen (From Japan, China, South East Asia), Pencil (From Japan, China, South East Asia), Fish - Canned, Nail, Small Metal Parts, Fan - Ceiling, Electrical Domestic Appliances - Misc., Towel, Wall & Floor Tile (PVC Flooring), Foodstuffs, Furniture, Electric Appliances, House Wares, etc.

The subject has had regular suppliers and customers in overseas.

The subject’s managing director Ramesh Mahtani is also the Honorary Consul in Hong Kong of Samoa.

Directors are respectable and trustworthy enjoying good reputation in commercial circles.

The annual sales turnover is significant. Overall business is active. History in Hong Kong is over 44 years.

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

MORTGAGE OR CHARGE

(Since 2007)

Date	Description of Instrument	Mortgagee
24-07-2007	Undertaking Relating To Deposits	Canara Bank, Hong Kong Branch.
05-12-2008	Lien & Set-Off Agreement	HBZ Finance Ltd., Hong Kong.
02-02-2009	Undertaking Relating To Deposits	Indian Overseas Bank, Hong Kong Branch.
17-08-2010	Security Over Deposits With The Bank	The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
02-03-2011	Mortgage	DBS Bank Ltd., Hong Kong Branch.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.06
UK Pound	1	Rs.101.84
Euro	1	Rs.81.56

INFORMATION DETAILS

Analysis Done by :	SUM

Report Prepared by :	NIT

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.