MIRA INFORM REPORT

Report Date :

11.09.2014

IDENTIFICATION DETAILS

Name :	METAL RESOURCE HK LTD.
Registered Office :	C/o Baililai International Group (HK) Ltd., Room 1501 B2, Grand Millennium Plaza (Lower Block), 181 Queen’s Road, Central
Country :	Hongkong
Date of Incorporation :	18.09.2009
Com. Reg. No.:	51179391
Legal Form :	Private Limited Liability Company
Line of Business :	Trading in Metals, Minerals and Related Raw Materials.
No of Employees :	No employees in Hong Kong. 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 :

Ca

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 Hongkong
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 01, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Hongkong	A1	A1

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

Hongkong - 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

METAL RESOURCE HK LTD.

ADDRESS

Registered Office:-

c/o Baililai International Group (HK) Ltd.

Room 1501 B2, Grand Millennium Plaza (Lower Block), 181 Queen’s Road, Central, Hong Kong.\

Holding Company:-

QVC Exports Private Ltd., India.

Associated Company:-

Metsil Exports (Pvt) Ltd., India.

BUSINESS REGISTRATION NUMBER

51179391

COMPANY FILE NUMBER

1374670

DATE OF INCORPORATION

18th September, 2009.

CAPITAL

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

Issued Share Capital: HK$10,000.00

SHAREHOLDERS

(As per registry dated 18-09-2013)

Name	No. of shares
QVC Exports Private Ltd. 6. Dr.Meghnad Saha Sarani 2nd Floor, Kolkata, W.B. 700026, India.	10,000 =====

DIRECTORS

(As per registry dated 18-09-2013)

Name (Nationality)	Address
Priti SHARMA	136, Charu Chandra Place East, 4th Floor, Kolkata-700 033, West Bengal, India.
Nilesh KUMAR SHARMA	136 Charu Chandra Place East Tollygunge Charu, Market Kolkata-33, India.

SECRETARY

(As per registry dated 18-09-2013)

Name	Address	Co. No.
Baililai International Group (HK) Ltd.	Room 1708, 17/F., Nan Fung Tower, 173 Des Voeux Road Central, Hong Kong.	1071086

HISTORY

The subject was incorporated on 18th September, 2009 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the registered address of the subject was located at Room 1708, 17/F., Nan Fung Tower, 173 Des Voeux Road Central, Hong Kong where was the old operating address of a commercial service provider Baililai International Group (HK) Ltd. [Baililai]. Baililai moved to the present new address in May 2014, so did the subject.

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

GENERAL

Having issued 10,000 ordinary shares of HK$1.00 each, Metal Resource HK Ltd. is a wholly owned subsidiary of by QVC Exports Private Ltd. [QVC] which is an India-based company. The directors of the subject are Priti Sharma and Nilesh Kumar Sharma. Both are India passport holders and do not have the right to reside in Hong Kong permanently.

The subject does not have its own operating office. Its registered office is in a commercial service firm located at Room 1501 B2, Grand Millennium Plaza (Lower Block), 181 Queen’s Road, Central, Hong Kong known as Baililai International Group (HK) 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.

The subject is trading in metals, minerals and related raw materials. QVC is engaged in the same lines of business.

QVC is trading in the following commodities: aluminium, coal, metal scraps, ores, ferro alloys, copper, coking coal, charcoal, metallurgical coke, etc.

The CEO of QVC Mr. Nilesh Sharma is a family member of the two shareholders of the subject.

QVC has had an associated company in India known as Metsil Exports (Pvt) Ltd. [Metsil] which is engaged in the same lines of business and carrying the same commodities. Metsil is also operated by the Sharma family.

The subject’s business in Hong Kong is not active. History in Hong Kong is about five 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.60.83
UK Pound	1	Rs.98.15
Euro	1	Rs.78.66

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	NIT

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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