MIRA INFORM REPORT

Report Date :

19.02.2014

IDENTIFICATION DETAILS

Name :	ECHO PORT INTERNATIONAL LTD.

Registered Office :	c/o Maxfold Accounting & Secretarial Service Ltd. 19/F., Kiu Yin Commercial Building, 361-363 Lockhart Road, Wanchai,

Country :	Hong Kong

Date of Incorporation :	27.09.2002

Com. Reg. No.:	33007114

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturing chest freezers, showcases and refrigerators

No. of Employees :	No Employees In Hong Kong 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 :

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, 2013

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 levies excise duties on only four commodities, namely: 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, it again faces a possible slowdown as exports to the Euro zone and US slump. 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 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous year. 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 exports 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. Growth slowed to 5% in 2011, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. 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

Source : CIA

Company name and address

ECHO PORT INTERNATIONAL LTD.

ADDRESS

Registered Office:-

c/o Maxfold Accounting & Secretarial Service Ltd.

19/F., Kiu Yin Commercial Building, 361-363 Lockhart Road, Wanchai, Hong Kong.

China Office:-

Foshan Echo Port International Ltd.

Room 306, Chengye Building, 12 Yonggui Fengxiang North Road, Shunde District, Foshan City, Guangdong Province, China.

BUSINESS REGISTRATION NUMBER

33007114

COMPANY FILE NUMBER

0815660

DATE OF INCORPORATION

27th September, 2002.

CAPITAL

Nominal Share Capital: HK$2,000,000.00 (Divided into 2,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$2,000,000.00

SHAREHOLDERS: (As per registry dated 27-09-2012)

Name		No. of shares
LI Jianzhong		1,994,000
ZHU Xiaoming		3,000
HUANG Decai		3,000
		––––––––
	Total:	2,000,000 =======

DIRECTORS: (As per registry dated 27-09-2012)

Name (Nationality)	Address
HUANG Decai	No. 12 Chengye Building, Fengxiangbei Road, Ronggui, Shunde, Foshan, Guangdong, China.
LI Jianzhong	No. 12 Chengye Building, Fengxiangbei Road, Ronggui, Shunde, Foshan, Guangdong, China.

Name

(Nationality)

Address

HUANG Decai

No. 12 Chengye Building, Fengxiangbei Road, Ronggui, Shunde, Foshan, Guangdong, China.

LI Jianzhong

No. 12 Chengye Building, Fengxiangbei Road, Ronggui, Shunde, Foshan, Guangdong, China.

SECRETARY: (As per registry dated 27-09-2012)

Name	Address	Co. No.
Maxfold Accounting & Secretarial Service Ltd.	19/F., Kiu Yin Commercial Building, 361-363 Lockhart Road, Wanchai, Hong Kong.	0119965

GENERAL

Echo Port International Ltd. was incorporated on 27th September, 2002 as a private limited liability company under the Hong Kong Companies Ordinance.

The subject does not have its own operating office. Its registered office is in a commercial service firm located at “19/F., Kiu Yin Commercial Building, 361-363 Lockhart Road, Wanchai, Hong Kong” known as “Maxfold Accounting & Secretarial Service Ltd.” which is handling its correspondences and documents. This company is also the corporate secretary of the subject.

The subject has no employees in Hong Kong.

According to the Companies Registry of Hong Kong, the subject has issued 2 million ordinary shares of HK$1.00 each of which 99.7% are owned by Mr. Li Jianzhong. The balance 0.3% is equally held by Mr. Zhu Xiaoming and Mr. Huang Decai. Li and Huang are also directors of the subject. Both are China ID holders and do not have the right to reside in Hong Kong permanently.

The subject’s main office is in Foshan City, Guangdong Province, China [Foshan Echo Port].

Foshan Echo Port is specialized in manufacturing chest freezers, showcases and refrigerators. It offers full range OEM products for well-known enterprises in domestic and export market. It has been the long term supplier of some famous brands in the world, such as SANYO, AKIRA, AKAI, etc. The annual production capacity is about 600,000 units.

Its products have got the following international certificates: CE, CB, SASO, MEPS. Its full range “top open door series A” are rated “tropical’ and have been proven ‘high performance” especially in very hot areas such as Saudi Arabia.

To our knowledge, Echo Port has had the following two contractors:

Jiaxing Zhongyi Electrical Appliances Co. Ltd. [Zhongyi], China;

Zhejiang Hailishi Electrical Appliances Co. Ltd., China

In 2008, the subject and Zhongyi were sued by a Turkey company known as Vestel Elektronik Sanayi Ve Ticaret A.S [VESVT] for patent infringement. Zhongyi had manufactured a number of freezers bearing the trade mark Vestel. However, the trade mark Vestel was owned by the Turkey firm. Zhongyi used the trade mark in its products without getting permission from VESVT. Finally, the subject and Zhongyi lost in the litigation.

Li Jianzhong is also the legal representative of Foshan Echo Port.

The subject’s business in Hong Kong is not active. History in Hong Kong is over eleven years.

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.62.12
UK Pound	1	Rs.103.93
Euro	1	Rs.85.17

INFORMATION DETAILS

Report Prepared by :

NIS

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.