MIRA INFORM REPORT

Report Date :

10.12.2014

IDENTIFICATION DETAILS

Name :	ASK RE LTD.

Registered Office :	Room 502, 5/F., Tower 1, South Seas Centre, 75 Mody Road, Tsimshatsui, Kowloon

Country :	Hong Kong

Date of Incorporation :	30.06.2006

Legal Form :	Private Limited Company

Line of Business :	Importer, Exporter and Wholesaler of agri-business, industrial minerals, steel raw materials, power plant equipment.

No. of Employees	06

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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Hong Kong

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 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

ASK RE LTD.

ADDRESS: Room 502, 5/F., Tower 1, South Seas Centre, 75 Mody Road, Tsimshatsui, Kowloon, Hong Kong.

PHONE: 852-2368 7799

FAX: 852-2368 7899

E-MAIL: askre.trade@askreltd.com

MANAGEMENT

Managing Director: Mr. Surekha Attaluri

SUMMARY

Incorporated on: 30th June, 2006.

Organization: Private Limited Company.

Capital: Nominal:HK$8,000,000.00

Issued: HK$8,000,000.00

Business Category: Importer, Exporter and Wholesaler.

Employees: 6. (Including associate)

Main Dealing Banker: ICIC Bank Ltd., Hong Kong Branch.

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

Room 502, 5/F., Tower 1, South Seas Centre, 75 Mody Road, Tsimshatsui, Kowloon, Hong Kong.

Holding Company:-

Xlat Ltd., British Virgin Islands.

Associated Company:

Excel Rich Management Ltd., Hong Kong. (Same address)

BUSINESS REGISTRATION NUMBER

36912176

COMPANY FILE NUMBER

1056098

MANAGEMENT

Managing Director: Mr. Surekha Attaluri

Chief Accountant: Ms. Rebecca Chan

Manager of Agri-Business: Mr. Jacky Tsui

Manager of Steel Trading: Mr. Jackson Li

Shipping Department: Mr. Moniqui Hui

CAPITAL

Nominal Share Capital: HK$8,000,000.00 (Divided into 8,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$8,000,000.00

SHAREHOLDER

(As per registry dated 30-06-2014)

Name

No. of shares

Xlat Ltd.

P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands.

8,000,000

========

DIRECTORS

(As per registry dated 30-06-2014)

Name

(Nationality)

Address

Surekha ATTALURI

Flat D, 3/F., Tower 2, Harbour Green, 8 Sham Mong Road, Tai Kok Tsui, Kowloon, Hong Kong.

Venkateswara Prasad ATTALURI

Flat D, 3/F., Tower 2, Harbour Green, 8 Sham Mong Road, Tai Kok Tsui, Kowloon, Hong Kong.

SECRETARY

(As per registry dated 30-06-2014)

Name	Address	Co. No.
Granhill Ltd.	5/F., Dah Sing Life Building, 99-105 Des Voeux Road Central, Hong Kong.	0503199

HISTORY

The subject was incorporated on 30th June, 2006 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: Importer, Exporter and Wholesaler.

Lines: Agri-business, industrial minerals, steel raw materials, power plant equipment.

Employees: 6. (Including associate)

Commodities Imported: India, other Asian countries, etc.

Markets: Worldwide.

Terms/Sales: L/C or as per contracted.

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

FINANCIAL INFORMATION

Nominal Share Capital: HK$8,000,000.00 (Divided into 8,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$8,000,000.00

Mortgage or Charge (since 2013): (See attachment)

Profit or Loss: Making a small profit every year.

Condition: Keeping in a satisfactory manner.

Facilities: Making rather active use of general banking facilities.

Payment: Met trade commitments as contracted.

Commercial Morality: Satisfactory.

Bankers:-

Indian Overseas Bank, Hong Kong Branch.

Bank of Baroda, Hong Kong Branch.

Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

RB International Finance (Hong Kong) Ltd., Hong Kong.

Canara Bank, Hong Kong Branch.

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

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

ICIC Bank Ltd., Hong Kong Branch.

Standing: Good.

GENERAL

Ask Re Ltd. is a wholly-owned subsidiary of Xlat Ltd. which is a BVI-registered firm.

The subject is wholly-owned by the Attaluri family. The directors of the subject Surekha Attaluri and Venkateswara Prasad Attaluri are Indian. They are Hong Kong ID holders and have got the right to reside in Hong Kong permanently.

The subject has had an associated company Excel Rich Management Ltd. [Excel Rich], a Hong Kong-registered company located at the same address. The subject and Excel Rich are engaged in the same lines of business, more or less.

Incorporated in June 2006, the subject is engaged in the following business scope: agri-business, industrial minerals, steel raw materials, power plant equipment.

The subject is specialized in sourcing products directly from mine owners or producers. Presently it is dealing in the following agricultural products: cotton, DDGA, fish meal, glycerine, groundnut oil, palm oil (olein/stearin), rape seed meal, rice, shortening, soya bean meal, tapioca chips.

The subject is also engaged in minerals exporting and is mainly focused on shipping iron ore, chrome ore, manganese ore, nickel ore and molybdenum ore which are used in steel production. It also trades in Bauxite, Barytes and Bentonite.

Coking Coal, Anthracite Coal and Steam Coal are increasingly being shipped from Australia, Russia, Ukraine, the United States, Colombia, Vietnam and Indonesia. It is able to meet the requirements of steel mills and power plants to import these commodities on a regular basis.

The subject also supplies critical steel making raw materials by consistently meeting the requirements of discerning steel mills in Korea, China, India, Europe and South America.

The subject is leveraging its association with reputed manufacturers of Power Plant equipment in China and providing consultancy services for technology transfer, equipment supply and logistics. It is also involved in designing, and production and shipment of equipment for each project as per customer requirements and ensure performance guarantee by the Chinese manufacturers after setting up and the running of the units. The subject also offers clients with services such as shipping, logistics, warehousing and financing.

Mr. Venkateswara Prasad Attaluri was graduated from Acharya N G Ranga Agricultural University, Tirupati, India, in 1987. In 1990, he graduated from Indian Institute of Management, Ahmedabad, India.

According to the subject, its total turnover since establishment has been amounted to over US$1.3 billion.

To facilitate its trading activities, it is capitalizing on its financial strength, as it currently enjoy over US$50 million credit lines with various first class international banks in Hong Kong.

According to the subject, its purchases are always on FOB terms form producers or manufacturers. It also makes advance payments against warehouse receipts for cargoes inspected and stored in bank-approved warehouses.

The subject’s business is rather active. History in Hong Kong is over eight years

On the whole, consider it good for normal business engagements.

MORTGAGE OR CHARGE

(Since 2013)

Date	Description of Instrument	Mortgagee
16-04-2013	Memorandum	Bank of Baroda, Hong Kong Branch.
28-03-2014	Assignment of Receivables	ICICI Bank Ltd., Hong Kong Branch.
30-04-2014	Debenture	ICICI Bank Ltd., Hong Kong Branch.
20-06-2014	Assignment of Life Insurance	The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.88
UK Pound	1	Rs.96.90
Euro	1	Rs.76.29

INFORMATION DETAILS

Report Prepared by :

SMN

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.