MIRA INFORM REPORT

Report Date :

06.10.2014

IDENTIFICATION DETAILS

Name :	UNION FORTUNE TRADING LTD.

Registered Office :	C/o Prima Secretaries Ltd., Suite 605, 6/F., China Insurance Group Building, 141 Des Voeux Road Central

Country :	Hong Kong

Date of Incorporation :	04.07.2006

Com. Reg. No.:	37390054

Legal Form :	Private Limited Company.

Line of Business :	Subject is trading in metal scraps such as aluminium scrap, brass scrap, and other metal scraps.

No of Employees :	Not Available 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 :

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 – June 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 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 & ADDRESS

UNION FORTUNE TRADING LTD.

ADDRESS:

Registered Office:-

c/o Prima Secretaries Ltd.

Suite 605, 6/F., China Insurance Group Building, 141 Des Voeux Road Central, Hong Kong.

BUSINESS REGISTRATION NUMBER

37390054

COMPANY FILE NUMBER

1056641

DATE OF INCORPORATION

4th July, 2006.

LEGAL FORM

Private Limited Company.

CAPITAL

HK$4,000,000.00

SHAREHOLDERS

(As per registry dated 04-07-2014)

Name		No. of shares
Mohamed Nahin Nasir Begawala		800,000
Madeena RAJAGIRI		3,200,000
		‑‑‑‑‑‑‑‑‑‑‑‑‑
	Total:	4,000,000 =======

DIRECTOR

(As per registry dated 04-07-2014)

Name

(Nationality)

Address

Madeena RAJAGIRI

Flat No. 903, UBL Building, King Faisal Street, Sharjah, United Arab Emirates.

SECRETARY

(As per registry dated 04-07-2014)

Name	Address	Co. No.
Prima Secretaries Ltd.	Suite 605, 6/F., China Insurance Group Building, 141 Des Voeux Road Central, Hong Kong.	0569406

MORTGAGE OR CHARGES

(See attachment)

GENERAL

Union Fortune Trading Ltd. was incorporated on 4th July, 2006 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 Suite 605, 6/F., China Insurance Group Building, 141 Des Voeux Road Central, Hong Kong known as Prima Secretaries 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 4 million ordinary shares of HK$1.00 each of which 80% are owned by Mr. Rajagiri Madeena and 20% by Mohamed Nahin Nasir Begawala. The former is also the director of the subject. He is an India passport 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 is in the United Arab Emirates.

The subject is trading in metal scraps such as aluminium scrap, brass scrap, and other metal scraps. It also trades in paper scrap and plastic scrap. Commodities are sourced from Europe, and some of the Asian countries. India is one of its prime markets.

The subject has had the following two main customers in India:-

Dev Metals & Alloys Pvt. Ltd.

Ghanshyamlal & Co.

The subject has been banking with Bank of Baroda [BOB] of Hong Kong, Bank of India, Hong Kong Branch and The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

The subject’s business in Hong Kong is not active. History in Hong Kong is over eight years and three 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.

MORTGAGE OR CHARGE

Date	Particulars	Amount
28-03-2008	Instrument: Memorandum Property: Distinctive No. of Receipts Date of Issue Amount Due Date 91210300001207 25-02-2008 US$100,000.00 25-05-2008 91210300001296 19-03-2008 US$50,000.00 19-06-2008 Mortgagee: Bank of Baroda, Hong Kong Branch.	Loan or credit or other facilities
04-06-2009	Instrument: Memorandum Property: Distinctive No. of Receipts Date of Issue Amount Due Date 91210300002793 19-03-2009 US$50,855.96 19-06-2009 91210300003073 25-03-2009 US$101,694.05 25-08-2009 91210300003007 05-05-2009 US$100,000.00 05-05-2010 91210300003080 29-05-2009 US$125,000.00 31-05-2010 Mortgagee: Bank of Baroda, Hong Kong Branch.	Loan or credit or other facilities
17-05-2010	Instrument: Security Over Deposits with the Bank Limited Company – Under Seal Property: Initially HK$50,000 or equivalent and all monies whether now or hereafter standing to the credit of the Company’s deposit with the Bank under deposit number 808-276729-838 Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.	To secure all monies in respect of banking facilities owing at any time plus interest and expenses
18-05-2010	Instrument: Memorandum Property: Distinctive No. of Receipts Date of Issue Amount Due Date 91210300003890 22-03-2010 US$51,084.45 22-06-2010 91210300004037 18-05-2010 US$376,836.97 16-08-2010 91210300004042 25-05-2010 US$102,004.15 25-08-2010 91210300003080 29-05-2009 US$125,000.00 31-05-2010 91210300004006 05-05-2010 US$101,013.89 05-05-2011 Mortgagee: Bank of Baroda, Hong Kong Branch.	Loan or credit or other facilities
29-06-2011	Instrument: Memorandum Property: Distinctive No. of Receipts Date of Issue Amount Due Date 91210300004643 22-06-2011 US$51,302.89 22-09-2011 91210300004826 16-05-2011 US$378,337.57 16-08-2011 91210300004855 25-05-2011 US$102,336.93 25-08-2011 91210300004006 05-05-2011 US$102,079.03 07-05-2012 912103000040533 31-05-2011 US$127,810.62 31-05-2012 91210300005023 24-06-2011 US$100,000.00 25-06-2012 91210300005033 27-06-2011 US$80,000.00 27-06-2012 91210300005034 28-06-2011 US$70,000.00 28-06-2012 Mortgagee: Bank of Baroda, Hong Kong Branch.	Loan or credit or other facilities
29-01-2013	Instrument: Letter of Set-Off & Appropriation Property: The bank shall have the right at any time and without prior notice to the company to set-off any credit balances due to the company whether in the company’s current/savings account or in respect of moneys kept by the company on terms deposit or deposits withdrawable after notice or any other deposit at any of the bank’s branches, against the outstanding debit balances of the company’s loan/overdraft/cash credit/trade finance facilities or other advance account with the bank or against any liability incurred or to be incurred by the company to the bank whether under or in respect of guarantees or bills or otherwise howsoever and whether such liability be actual or contingent. The following fixed deposits of Account No. 037662 placed with Bank of India, Hong Kong Branch and all moneys directly or indirectly deriving therefrom and any other sum of sums which are from time to time deposited by the company with the bank is as under:- Deal No. Date Amount Due Date 182052 28-01-2013 US$300,000.00 28-01-2014 Mortgagee: Bank of India, Hong Kong Branch.	Advances and other banking facilities

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.75
UK Pound	1	Rs.100.07
Euro	1	Rs.77.95

INFORMATION DETAILS

Analysis Done by :	KAR

Report Prepared by :	SMN

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.