MIRA INFORM REPORT

Report Date :

16.12.2014

IDENTIFICATION DETAILS

Name :	SHANGYANG STEEL INTERNATIONAL LTD.
Registered Office :	c/o Eastop Business Consultancy Ltd. Unit A1, 7/F., Cheuk Nang Plaza, 250 Hennessy Road, Wanchai
Country :	Hong Kong
Date of Incorporation :	11.06.2013
Com. Reg. No.:	61578799
Legal Form :	Private Limited Liability Company
Line of Business :	· Engaged in trading of iron and Steel Material. · Subject is trading in the products of Tangshan Iron & Steel Company Ltd.
No of Employees :	no employees in Hong Kong (Note: It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.)

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	No Operating Office in Hong Kong
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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
Hong Kong	a1	a1

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

SHANGYANG STEEL INTERNATIONAL LTD.

Company ADDRESS

Registered Office:-

c/o Eastop Business Consultancy Ltd.

Unit A1, 7/F., Cheuk Nang Plaza, 250 Hennessy Road, Wanchai, Hong Kong.

[Tel: 852-2815 0191; Fax: 852-2544 5670]

Previous Address

c/o Eastop Business Consultancy Ltd.

Unit E88, 3/F., Wing Tat Commercial Building,

97 Bonham Strand East,

Sheung Wan, Hong Kong

BUSINESS REGISTRATION NUMBER

61578799

COMPANY FILE NUMBER

1921617

DATE OF INCORPORATION

11th June, 2013.

ISSUED SHARE CAPITAL

HK$10,000.00

SHAREHOLDER

(As per registry dated 11-06-2014)

Name	No. of shares
ZHANG Jianhong	10,000 =====

DIRECTOR

(As per registry dated 11-06-2014)

Name (Nationality)	Address
ZHANG Jianhong	No. 402, Gate 3, Building 308, Tianyuanhuayuan, Kunyuanli, Xingyuandao, Lubei District, Tangshan, Hebei, China.

SECRETARY

(As per registry dated 11-06-2014)

Name	Address	Co. No.
Eastop Business Consultancy Ltd.	Unit E88, 3/F., Wing Tat Commercial Building, 97 Bonham Strand East, Sheung Wan, Hong Kong.	1367421

GENERAL

Shangyang Steel International Ltd. was incorporated on 11th June, 2013 as a private limited liability company.

The subject does not have its own operating office. Its nominal office is in a commercial service firm located at Unit E88, 3/F., Wing Tat Commercial Building, 97 Bonham Strand East, Sheung Wan, Hong Kong known as Eastop Business Consultancy Ltd. [Eastop] which is handling its correspondences and documents. Eastop is also the corporate secretary of the subject. This company has more than one office in Hong Kong.

The subject has no employees in Hong Kong.

According to the Companies Registry of Hong Kong, the subject has issued 10,000 ordinary shares of HK$1.00 each which are wholly-owned by Mr. Zhang Jianhong who is a China merchant.

He is a China ID holder and does not have the right to reside in Hong Kong permanently. He is also the only director of the subject. His registered address in in Tangshan City, Hebei Province, China.

The subject is an iron and steel material trader. It is trading in the products of Tangshan Iron & Steel Company Ltd. (herein after is referred to “Tanggang”).

Tanggang is a member of the ‘Hebei Iron & Steel Group’. It is a State-owned listed company, a large steel enterprise and is the main enterprise of the Hebei Iron & Steel Group.

Tanggang has an annual production capacity of 15 million tons. Its products covers four categories: plates, rods, lines and sections, with a total of more than 140 varieties and more than 400 kinds of specifications. The main products are hot-rolled sheet, cold rolled thin plate, galvanized sheet, colour-coated sheet medium and thick plates, stainless steel plate, bar, wire rod & sections.

The subject exports the products of Tanggang to Japan, the other Asian countries, etc. It also trades in the products of the other iron and steel companies in China.

The subject’s business in Hong Kong is not active. History in Hong Kong is just over a years and six months.

Since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on L/C basis.

NOTE :

It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.65
UK Pound	1	Rs.98.53
Euro	1	Rs.78.02

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	MNL

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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