MIRA INFORM REPORT

Report Date :

23.05.2014

IDENTIFICATION DETAILS

Name :	RED SEA TRADING CO. LTD.

Registered Office :	Room 1303-4, 13/F., Alliance Building, 130-136 Connaught Road Central

Country :	Hong Kong

Date of Incorporation :	01.02.1977

Com. Reg. No.:	05067542

Legal Form :	Private Limited Company

Line of Business :	Importer and Re-exporter of Bags, wallets, pouches, consumer goods, porcelain ware, sundry goods, and other goods made in China.

No of Employees :	08

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 – March 31, 2014

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Hong Kong

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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

RED SEA TRADING CO. LTD.

Company ADDRESS

Room 1303-4, 13/F., Alliance Building, 130-136 Connaught Road Central, Hong Kong.

PHONE: 852-2525 9617, 25259513

FAX: 852-2526 0365, 25371301

E-MAIL: vijay@redseatrading.com

redsea@netvigator.com

redsea@redseatrading.com

MANAGEMENT

Managing Director: Mr. Ramesh Lalchand Dowlani

SUMMARY

Incorporated on: 1st February, 1977.

Organization: Private Limited Company.

Capital: Nominal: HK$15,000,000.00

Issued: HK$15,000,000.00

Business Category: Importer and Re-exporter.

Employees: 8.

Main Dealing Banker: Indian Overseas Bank, Hong Kong Branch.

Banking Relation: Good.

Company ADDRESS

Registered Head Office:-

Room 1303-4, 13/F., Alliance Building, 130-136 Connaught Road Central, Hong Kong.

BUSINESS REGISTRATION NUMBER

05067542

COMPANY FILE NUMBER

0051429

MANAGEMENT

Managing Director: Mr. Ramesh Lalchand Dowlani

CAPITAL

Nominal Share Capital: HK$15,000,000.00 (Divided into 150,000 shares of HK$100.00 each)

Issued Share Capital: HK$15,000,000.00

SHAREHOLDERS

(As per registry dated 01-02-2014)

Name		No. of shares
Ramesh Lalchand DOWLANI		60,000
Sonia Ramesh DOWLANI		45,000
Vijay Kumar DOWLANI		45,000
		–––––––
	Total:	150,000 ======

DIRECTORS

(As per registry dated 01-02-2014)

Name (Nationality)	Address
Sonia Ramesh DOWLANI	Flat A, 12/F., Elegant Garden, 11 Conduit Road, Central, Hong Kong.
Vijay Kumar DOWLANI	Unit A, 11/F., Block 2, Scenic Garden, 9 Kotewall Road, Mid Level, Hong Kong.
Ramesh Lalchand DOWLANI	Flat A, 12/F., Elegant Garden, 11 Conduit Road, Central, Hong Kong.

SECRETARY

(As per registry dated 01-02-2014)

Name	Address	Co. No.
Akin Professionals Ltd.	20/F., Champion Building, 287-291 Des Voeux Road Central, Sheung Wan, Hong Kong.	1273165

HISTORY

The subject was incorporated on 1st February, 1977 as a private limited liability company under the Hong Kong Companies Ordinance.

At the very beginning, the subject was located at 12/F., Winning Centre, 46‑48 Wyndham Street, Hong Kong, moved to 14/F., Hang Lung House, 184‑192 Queen’s Road Central, Hong Kong in March 2001 and further to the present address in October 2009.

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

OPERATIONS

Activities: Importer and Re-exporter.

Lines: Bags, wallets, pouches, consumer goods, porcelain ware, sundry goods, and other goods

made in China.

Employees: 8.

Commodities Imported: Mainly imported from China, India, other Asian countries, etc.

Markets: Africa, Australasia, Central & South America, Middle East, Western Europe, etc.

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

Terms/Buying: L/C, D/P and D/A.

FINANCIAL INFORMATION

Nominal Share Capital: HK$15,000,000.00 (Divided into 150,000 shares of HK$100.00 each)

Issued Share Capital: HK$15,000,000.00

Mortgage or Charge (since 2009): (See attachment)

Profit & Loss: Business is profitable.

Condition: Keeping in an active state.

Facilities: Making active use of general banking facilities.

Payment: Met as required.

Commercial Morality: Satisfactory.

Bankers:-

· Indian Overseas Bank, Hong Kong Branch.

Crédit Agricole Indosuez, Hong Kong Branch.

Dao Heng Bank Ltd., Hong Kong.

Fortis Bank Asia HK, Hong Kong Branch.

HBZ Finance Ltd., Hong Kong.

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

Standing: Good.

GENERAL

Red Sea Trading Co. Ltd. is a private limited company controlled by an Indian family. Its shareholders are Mr. Ramesh Lalchand Dowlani, holding 40% interests, Mr. Sonia Ramesh Dowlani, holding 30%, and Vijay Kumar Dowlani, also 30%.

They are also directors of the subject. They are Hong Kong ID holders and have got the right to reside in Hong Kong permanently.

The subject’s issued share capital has been increased to HK$15,000,000.00 from HK$2,000,000.00.

The subject was established in Hong Kong in 1977. From a fledgling family run business, the subject today has evolved into a leading Export and Manufacturing house, spanning four continents with several offices across China and trading partners in Dubai, Saudi Arabia, India, Africa and South America.

The subject has set up offices in China and is able to handle several different lines of trade including Electronics, Garments, Hardware, Sundries, etc.

The subject is trading in the following commodities:

Suits & Jackets - Men’s, Suits & Jackets - Women’s, Children’s Wear, Blouses, Jeans, Dresses & Skirts, Evening & Party Dresses, High Fashion Wear, Shirts, Tailor Made Garments, Trousers, Slacks, Tee & Sweat Shirts, Underwear - Men’s, Underwear - Women’s,
Underwear - Children’s, Nightwear & Pyjamas, Sport Suits,
Games & Toys - Electronic, Games & Toys - Non-Electronic, Battery Operated Toys, Dolls, Soft Toys, Clocks, Watches, Cookware,
Cutlery - Stainless Steel, Kitchen Utensils - Metal, Tableware - Metal (Stainless steel), Tableware - Porcelain / Ceramic / Stone, Babies' Wear, Audio Equipment, Calculators

The subject’s China offices are in Shishi City of Fujian Province and Guangzhou City of Guangdong Province.

The business of the subject is active. History in Hong Kong is over 37 years. On the whole, consider it good for normal business engagements.

REMARKS:

Property information of the company:-

1. Property Location: 14/F., Hang Lung House, 184-192 Queen’s Road Central, Hong Kong.