MIRA INFORM REPORT

Report Date :

23.12.2014

IDENTIFICATION DETAILS

Name :	FREUDENBERG & VILENE INTERNATIONAL LTD.
Registered Office :	8/F., Loyal Centre, 828 Cheung Sha Wan Road, Kowloon
Country :	Hong Kong
Date of Incorporation :	10.10.1980
Com. Reg. No.:	06871407
Legal Form :	Private Limited Company.
LINE OF BUSINESS :	IMPORTER, EXPORTER AND WHOLESALER OF INTERLININGS, LININGS
No. of Employees	25

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

FREUDENBERG & VILENE INTERNATIONAL LTD.

ADDRESS: 8/F., Loyal Centre, 828 Cheung Sha Wan Road, Kowloon, Hong Kong.

PHONE: 852-2786 8368

FAX: 852-2786 2847

E-MAIL: vilene@fvihk.com

MANAGEMENT

Managing Director: Mr. Urs Peter Heggli

SUMMARY

Incorporated on: 10th October, 1980.

Organization: Private Limited Company.

Capital: Nominal: HK$100,000,000.00

Issued: HK$100,000,000.00

Business Category: Importer, Exporter and Wholesaler.

Freudenberg Group Total Sales: €5,646.1 million (Year ended 31-12-2013)

Employees: 25.

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

Banking Relation: Good.

Company name and address

FREUDENBERG & VILENE INTERNATIONAL LTD.

ADDRESS:

Registered Head Office:-

8/F., Loyal Centre, 828 Cheung Sha Wan Road, Kowloon, Hong Kong.

Holding Companies:-

Freudenberg Trading (Hong Kong) Ltd., Hong Kong. (Same address)

Japan Vilene (Hong Kong) Ltd., Hong Kong.

Associated Companies:-

A.Y.N. Accessories Trading Ltd., Hong Kong.

A.Y.N. Fashion Accessories Ltd., Hong Kong.

Freudenberg & Co. KG, Germany.

Freudenberg & Vilene Filter (Changchun) Co. Ltd., China.

Freudenberg & Vilene Filter (Thailand) Co. Ltd., Thailand.

Freudenberg & Vilene Interlinings (Nantong) Co. Ltd., China.

Freudenberg & Vilene International Ltd., China.

Freudenberg & Vilene International Ltd., Philippines.

Freudenberg & Vilene International Ltd., Singapore.

Freudenberg & Vilene International Ltd., Vietnam.

Freudenberg & Vilene Nonwovens (Dalian) Co. Ltd., China.

Freudenberg & Vilene Nonwovens (Guangzhou) Co. Ltd., China.

Freudenberg & Vilene Nonwovens (Nantong) Co. Ltd., China.

Freudenberg & Vilene Nonwovens (Suzhou) Co. Ltd., China.

Freudenberg & Vilene Nonwovens (Taiwan) Co. Ltd., Taiwan.

Freudenberg Beteiligungs GmbH, Germany.

Freudenberg España S.A., Spain.

Freudenberg Evolon S.a.r.l., France.

Freudenberg Far Eastern Spunweb Co. Ltd., Taiwan.

Freudenberg Household Products Ltd., Hong Kong.

Freudenberg Nao-Tecidos Ltda., Brazil.

Freudenberg Nonwovens (Pty) Ltd., South Africa..

Freudenberg Nonwovens India Pvt. Ltd., India.

Freudenberg Nonwovens Ltd. Partnership, UK.

Freudenberg Nonwovens North America, USA.

Freudenberg Spunweb Company, USA.

Freudenberg Telas sin Tejer S.A., Paraguay.

Freudenberg Telas sin Tejer S.A., Peru.

Freudenberg Telas sin Tejer S.A., Venezuela.

Freudenberg Vilene s.r.o., Czech Republic.

Freudenberg Vilene Sp.zo.o, Poland.

Freudenberg Vilene Telas sin Tejer S.A., Panama.

Freudenberg Vitech Ltd., USA.

Freudenberg Vliesstoffe KG, Germany.

FV Logistik KG, Germany.

FV Service KG, Germany.

Japan Vilene Co. Ltd., Japan.

Korea Vilene Co. Ltd., Korea.

Group Companies:-

Freudenberg Group Companies

Burgmann Dalian Co. Ltd., China.

Burgmann Shanghai Ltd., China.

Capol GmbH, Germany.

Chem-Trend (Deutschland) GmbH, Germany.

Chem-Trend Chemicals (Shanghai) Co. Ltd., China.

Chem-Trend Industria e Comercio de Produtos Quimicos Ltda., Brazil.

Eagle Burgmann Australasia Pty. Ltd., Australia.

EagleBurgmann do Brasil Vedacoes Ltda., Brazil.

EagleBurgmann Espey GmbH, Germany.

EagleBurgmann Germany GmbH & Co. KG, Germany.

Freudenberg DS Tooling Centre GmbH & Co. KG, Germany.

Freudenberg Filtration Technologies (Aust) Pty. Ltd., Australia.

Freudenberg Filtration Technologies SE & Co. KG, Germany.

Freudenberg Haushaltsprodukte Augsburg GmbH, Germany.

Freudenberg Interlining SE & Co. KG, Germany.

Freudenberg S.A. Telas sin Tejer, Argentina.

Freudenberg Schwab Vibration Control GmbH & Co. KG, Germany.

Freudenberg Sealing Technologies GmbH & Co. KG, Germany.

Freudenberg Vliesstoffe SE & Co. KG, Germany.

Freudenberg-NOK-Componentes Brasil Ltda., Brazil.

Helix Medical Europe GmbH, Germany.

Integral Accumulator GmbH & Co. KG, Germany.

Kluber Lubrication Argenting S.A., Argentina.

Kluber Lubrication Benelux S.A./N.V., Belgium.

Kluber Lubrication Lubrificantes Especiais Ltda., Brazil.

Kluber Lubrication Munchen SF & Co. KG, Germany.

Lederer GmbH, Germany.

Merkel Freudenberg Fluidtechnic GmbH, Germany.

OKS Spezialschmierstoffe GmbH, Germany.

SurTec Deutschland GmbH Zwingenberg, Germany.

SurTec do Brasil Ltda., Brazil.

BUSINESS REGISTRATION NUMBER

06871407

COMPANY FILE NUMBER

0087831

MANAGEMENT

Managing Director: Mr. Urs Peter Heggli

CAPITAL

Nominal Share Capital: HK$100,000,000.00 (Divided into 1,000,000 shares of HK$100.00 each)

Issued Share Capital: HK$100,000,000.00

SHAREHOLDERS

(As per registry dated 10-10-2013)

Name		No. of shares
Freudenberg Trading (Hong Kong) Ltd., Hong Kong.		500,000
Japan Vilene (Hong Kong) Ltd., Hong Kong.		500,000
		––––––––
	Total:	1,000,000 =======

DIRECTORS

(As per registry dated 15-11-2013)

Name (Nationality)	Address
Urs Peter HEGGLI	1256, DD253, 7 Miles, Clearwater Bay Road, Kowloon, Hong Kong.
Dr. Frank Georg HEISLITZ	Erlenweg 5, 65719 Hofheim, Germany.
Masahiro KIMURA	3-8-46-1106, Saiwai-cho, Kawaguchi-city 332-0016, Japan.
Yasuhiro ESAKI	3-8-1-208, Nakaumagome, Ota-Ku, Tokyo 143‑0027, Japan.
Bruce Robert OLSON	Laurentiusstrasse 74, 51465 Bergisch, Germany.
Alexander Karl ROZMAN [Altemate to Dr. Frank Georg HEISLITZ]	Flat A, 9/F., Tower 5, Bel-Air on the Peak, Island South, Hong Kong.
Stephan Alexander WIRTZ [Altemate to Yasubiro ESAKI]	2/F., 17 Broom Road, Happy Vallery, Hong Kong.

SECRETARY

(As per registry dated 10-10-2013)

Name	Address	Co. No.
Secreco Ltd.	8/F., Gloucester Tower, The Landmark, 15 Queen’s Road Central, Hong Kong.	0139490

HISTORY

The subject was incorporated on 10th October, 1980 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: Interlinings, linings.

Employees: 25.

Commodities Imported: Imported from Japan, Germany

Markets: Hong Kong, China, other Asian countries, etc.

Freudenberg Group Total Sales: €5,681.3 million (Year ended 31-12-2012)

€5,646.1 million (Year ended 31-12-2013)

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

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

MEMBERSHIP

The Hong Kong General Chamber of Commerce, Hong Kong.
[Membership No. HKF0228]

FINANCIAL INFORMATION

Nominal Share Capital: HK$100,000,000.00 (Divided into 1,000,000 shares of HK$100.00 each)

Issued Share Capital: HK$100,000,000.00

Freudenberg Group Profit from Operation:

€531.6 million (Year ended 31-12-2012)

€457.3 million (Year ended 31-12-2013)

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 required.

Commercial Morality: Satisfactory.

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

Standing: Very Good.

GENERAL

Having issued 1 million ordinary shares of HK$100.00 each, Freudenberg & Vilene International Ltd. is equally owned by Freudenberg Trading (Hong Kong) Ltd. and Japan Vilene (Hong Kong) Ltd. which both are Hong Kong-registered firms.

The subject is a member of the Freudenberg Group which is the largest and most diverse manufacturer of nonwovens in the world. The subject is a clothing accessories trader. It is now responsible for marketing of the Group’s products in Hong Kong, China and Southeast Asia.

Freudenberg Group is a family-owned group of companies active on the global stage. Its 16 Business Groups operate on various markets and in various sectors of industry.

Freudenberg Group offers its customers in the automotive, mechanical and plant engineering, textile and clothing, construction, mining and heavy industry, energy, chemical, oil and gas sectors tailor-made, innovative technological products and services. Customer groupings also include companies in the medical technology, civil aviation, rail vehicles and semiconductor sectors.

Freudenberg Group develops and manufactures seals, vibration control technology components, filters, nonwovens, surface treatment products, release agents and specialty lubricants, medical technology, and mechatronic products.

Freudenberg Group develops software solutions and IT services primarily for small- and medium-sized enterprises. Final users enjoy the benefits of the Group’s state-of-the-art household products marketed under the vileda®, O’Cedar®, Gala®, SWASH® and Wettex® brands.

Freudenberg Group is committed to partnerships with customers, and believes in a long-term orientation, financial solidity and the excellence of over 40,000 associates in 60 countries around the globe.

Freudenberg & Co. Kommanditgesellschaft (limited partnership) is the strategic parent company of the Freudenberg Group. Under its umbrella, Freudenberg SE acts as the parent company of the various Business Groups, with responsibility for managing business operations.

Freudenberg Group is a family company. It is owned by some 320 heirs to the founding father Carl Johann Freudenberg.

For the year ended 2013, the sales of the Group amounted to €5,646.1 million, 2013 sales fell below the 2012 level (€5,681.3 million). The inclusion of Vibracoustic before the company was integrated in the TrelleborgVibracoustic joint venture in July 2012 should be taken into consideration here. If the inclusion of Vibracoustic for part of 2012 is eliminated, sales rose by 6.7 percent from €5,291.4 million in 2012 to €5,646.1 million in 2013.

Profit from operations amounted to €457.3 million (previous year: €531.6 million) and consolidated profit totalled €398.8 million (previous year: €437.7 million).

The decline in consolidated profit is principally due to high one-off extraordinary income in 2012.

Freudenberg Group holds a minority interest, either direct or via subsidiaries, in several companies, most of which are consolidated under the equity method. The most important minority shareholdings held by the Group concern the Japanese companies NOK Corporation and Japan Vilene Co. Ltd. [JVC], both Tokyo, where the Group holds an interest of approximately 25.1% in the former and an interest of 33.4% in the latter company.

At 31st December, 2013, the Group’s workforce totalled 33,245 employees (previous year: 30,786 employees).

On the whole, fully supported by the Freudenberg Group, the subject is considered good for normal business engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.17
UK Pound	1	Rs.98.85
Euro	1	Rs.77.42

INFORMATION DETAILS

Report Prepared by :

TPT

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.