MIRA INFORM REPORT

Report Date :

18.12.2014

IDENTIFICATION DETAILS

Name :	O.S. ELECTRONICS (H.K.) LTD.
Registered Office :	Unit 1808-9, 18/F., 9 Wing Hong Street, Cheung Sha Wan, Kowloon
Country :	Hong Kong
Date of Incorporation :	30.11.1993
Com. Reg. No.:	17645643
Legal Form :	Private Limited Company.
Line of Business :	Importer, Exporter and Wholesaler of Electronics Devices, Semiconductors and Batteries,
No of Employees :	15

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 :	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	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 and address

O.S. ELECTRONICS (H.K.) LTD.

ADDRESS: Unit 1808-9, 18/F., 9 Wing Hong Street, Cheung Sha Wan, Kowloon, Hong Kong.

PHONE: 852-2741 2218

FAX: 852-2786 5733

MANAGEMENT

Managing Director: Mr. Naoki Narita

SUMMARY

Incorporated on : 30th November, 1993.

Organization : Private Limited Company.

Issued Share Capital : US$300,000.00

Business Category : Importer, Exporter and Wholesaler.

Annual Turnover of Parent : ¥35,000 to ¥40,000 million.

Employees : 15.

Main Dealing Banker : Sumitomo Mitsui Banking Corporation, Hong Kong.

Banking Relation : Satisfactory.

ADDRESS

Registered Head Office:-

Unit 1808-9, 18/F., 9 Wing Hong Street, Cheung Sha Wan, Kowloon, Hong Kong.

Holding Company:-

O.S. Electronics Co. Ltd., Japan.

Associated Companies:-

O.S. Electronics (Shenzhen) Ltd., China.

O.S. Semiconductor Co. Ltd., Taiwan.

OS Electronics (S) Pte. Ltd. India Liaison Office, India.

OS Electronics (S) Pte. Ltd., Singapore.

BUSINESS REGISTRATION NUMBER

17645643

COMPANY FILE NUMBER

0455506

MANAGEMENT

Managing Director: Mr. Naoki Narita

ISSUED SHARE CAPITAL

US$300,000.00

SHAREHOLDER

(As per registry dated 30-11-2014)

Name	No. of shares
O.S. Electronics Co. Ltd. 3-16-8, Sotokanda Chiyoda-ku, Tokyo, Japan.	3,000 ====

DIRECTORS

(As per registry dated 30-11-2014)

Name (Nationality)	Address
Hideaki IKEDA	1-20-53 Higashi Sendai Miyagino-ku, Sendai City, Miyagi-Ken, Japan.
Naoki NARITA	1-68 Jiyugaoka Chikusake, Nagoyashi, Aichi, Japan.

SECRETARY

(As per registry dated 30-11-2014)

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

HISTORY

The subject was incorporated on 30th November, 1993 as a private limited liability company under the Hong Kong Companies Ordinance.

The subject’s Chinese name was formally registered on 14th April, 2004.

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

OPERATIONS

Activities: Importer, Exporter and Wholesaler.

Lines: Electronics devices, semiconductors and batteries.

Employees: 15.

Commodities Imported: Japan

Markets: China, Taiwan, Southeast Asia, India

Annual Turnover of Parent: ¥35,000 to ¥40,000 million.

Terms/Sales: As per contracted.

Terms/Buying: Various terms.

SUPPLIERS

Sanyo Electric

Sanyo Semiconductors

FDK Corp.

Sun Electronic Ind.

Diamond Electric

Tocad Energy Co.

FINANCIAL INFORMATION

Issued Share Capital: US$300,000.00

Profit or Loss: Traded at a small profitable angle.

Condition: Keeping in a satisfactory manner.

Facilities: Is making use of general banking facilities.

Payment: Met trade commitments as contracted.

Commercial Morality: Satisfactory.

Banker: Sumitomo Mitsui Banking Corporation, Hong Kong.

Standing: Very Good.

GENERAL

O.S. Electronics (H.K.) Ltd. is wholly-owned by O.S. Electronics Co. Ltd. [OSE] which is a Japan-based company.

Incorporated in November 1993, the subject is the agent of the following companies and trading in the following products:-

• Panasonic Corporation

Automotive & Industrial Systems Company

(POSCAP/OS-CON)

Portable Rechargeable Battery Business Group

Automotive & Industrial Systems Company of Panasonic Group

(Lithium Ion Batteries/Nickel Cadmium Batteries/Chargers)

• SANYO Electric Co. Ltd.

Automotive & Industrial Systems Sector

(Lithium Ion Batteries/Nickel Cadmium Batteries/Chargers

• Panasonic Eco Solutions Amorton Co. Ltd.

(Amorphous Si Solar Cells)

• ON Semiconductor

Semiconductors (Applications for Automotive/Medical/LED Lighting/Consumer/Power Supply)

• FDK Corporation

(Ni-MH Batteries/Lithium Batteries/Electronic Components)

• SUN Electronic Industries Corporation

(Capacitors/Switching Power Supplies)

• Tyco Electronics Japan G.K.

(Poly Switches/Chip Fuses)

• Heat-Sink & Os Co. Ltd.

(Various Heat Sinks)

OSE was established originally for manufacturing radio, TV and telecommunications devices. In April 1965 became the distributor for Semiconductor Business Division of Tokyo Sanyo Electric Co. Ltd. OSE is a trading firm specialized in importing, exporting and wholesaling electronic devices, semiconductors, batteries

The subject’s products are marketed in Hong Kong, China and exported to Taiwan, Southeast Asia, India, Business is rather active.

The subject has set up an office in Shanghai, China. Established in 1993 and with a registered capital of US$300,000.00, the Shanghai company is trading in the products of Sanyo chiefly.

The subject’s associated company in Shenzhen O.S. Electronics (Shenzhen) Ltd. has got satisfactory business results in recent years.

The sales volume of OSE for March 2013 fiscal term amounted to ¥38,300 million, a 3.0% up from ¥37,200 million in the previous term.

According to OSE, in FY 2013, 49% of its products were semiconductor, 21% were Panasonic AIS Battery, 13% were Panasonic AIS Devices and 17% other products. Currently, OSE has 205 employees in Japan.

The subject is chiefly supported by OSE. History in Hong Kong is over 21 years.

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.6358
UK Pound	1	Rs.99.98
Euro	1	Rs.79.00

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	ANK

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.