MIRA INFORM REPORT

Report Date :

16.09.2014

IDENTIFICATION DETAILS

Name :	MACSTEEL INTERNATIONAL FAR EAST LTD.
Registered Office :	Room 1921, 19/F., Sun Hung Kai Centre, 30 Harbour Road, Wanchai
Country :	Hong Kong
Date of Incorporation :	28.05.1997
Com. Reg. No.:	20998376
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter, Wholesaler and Distributor of All kinds of Steel Products.
No of Employees :	25 [Group]

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 :	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 – June 01, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Hong Kong	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

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

MACSTEEL INTERNATIONAL FAR EAST LTD.

ADDRESS: Room 1921, 19/F., Sun Hung Kai Centre, 30 Harbour Road, Wanchai, Hong Kong.

PHONE: 852-2545 6661, 2853 5400

FAX: 852-2815 0149, 2853 5328, 2850 5167

E-MAIL: jt@mife.com.hk

flat@mife.com.hk

long@mife.com.hk

MANAGEMENT:

Managing Director: Mr. Gordon Stanley Thornton

SUMMARY

Incorporated on: 28th May, 1997.

Organization: Private Limited Company.

Capital: Nominal: HK$10,000,000.00

Issued: HK$10,000,000.00

Business Category: Steel Product Trader.

Annual Turnover: US$250~300 million.

Group Employees: 25. (Hong Kong)

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

Banking Relation: Good.

Name

MACSTEEL INTERNATIONAL FAR EAST LTD.

ADDRESS

Registered Head Office:-

Room 1921, 19/F., Sun Hung Kai Centre, 30 Harbour Road, Wanchai, Hong Kong.

Mailing Address:

G.P.O. Box 2220, Hong Kong.

Immediate Holding Company:-

MacSteel International Trading Holdings B.V., the Netherlands.

Intermediate Holding Company:-

MacSteel International Holdings B.V., the Netherlands.

Penultimate Holding Company:-

MacSteel Global B.V., the Netherlands.

Ultimate Holding Company:-

MacSteel Holdings (Pty) Ltd., South Africa.

Sister & Affiliated Companies:-

MacSteel Group of Companies

Argonautica Shipping Investments B.V., the Netherlands.

Dockendale Ship Management (India) Pvt. Ltd., India.

Dockendale Ship Management DMCCO, UAE.

FECAT Ltd., Hong Kong.

MacSteel Celik Ticaret Ltd., Turkey.

MacSteel International (China) Ltd., China.

MacSteel International (China) Ltd., Hong Kong.

MacSteel International (Korea) Ltd., South Korea.

MacSteel International (Thailand) Ltd., Thailand.

MacSteel International Australia (Pty) Ltd., Australia.

MacSteel International Business Support Services B.V., the Netherlands.

MacSteel International Central, the Netherlands.

MacSteel International DMCC, UAE.

MacSteel International Do Brazil Ltda., Brazil.

MacSteel International Far East Ltd., India.

MacSteel International FZCO, UAE.

MacSteel International Italia Srl, Italy.

MacSteel International Mauritius Ltd., Mauritius.

MacSteel International SA (Pty.) Ltd., South Africa.

MacSteel International Singapore Pte. Ltd., Singapore.

MacSteel International South Africa (Pty) Ltd., South Africa.

MacSteel International Trading B.V., the Netherlands.

MacSteel International UK Ltd., UK.

MacSteel International USA Corporation, USA.

MacSteel International USA Latin American Corporation, USA.

Metall und Rohstoff AC, Switzerland.

MUR Shipping Australia Pty. Ltd., Australia.

MUR Shipping B.V., the Netherlands.

MUR Shipping Denmark A/S, Denmark.

MUR Shipping DMC Co., UAE.

MUR Shipping Holding B.V., the Netherlands.

MUR Shipping Ltd., Malta.

MUR Shipping Romania SRL, Romania.

MUR Shipping RSA (Pty.) Ltd., South Afirca.

MUR Shipping USA Corporation, USA.

Transorient Ore Supplies Ltd., Hong Kong. [Dissolved]

BUSINESS REGISTRATION NUMBER

20998376

COMPANY FILE NUMBER

0609775

MANAGEMENT

Chief Executive Officer: Mr. Salvatore Anthony Purpura

Managing Director: Mr. Gordon Stanley Thornton

Director & Contact Person (Flat Products): Mr. Sylvio Fernao Caldira Bertoli

Contact Person (Long Products): Mr. Peter Faulkner

CAPITAL

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

Issued Share Capital: HK$10,000,000.00

SHAREHOLDER

(As per registry dated 28-05-2014)

Name	No. of shares
MacSteel International Trading Holdings B.V. Zuidplein 164, 1077 XV Amsterdam, the Netherlands.	10,000,000 ========

DIRECTORS

(As per registry dated 03-06-2014)

Name (Nationality)	Address
POON Pun Wing	Flat H, 8/F., Tower 3, Island Resort, 28 Siu Sai Wan Road, Hong Kong.
LAI Yuet Sin, Raina	Flat B, 9/F., 1A Kennedy Street, Wanchai, Hong Kong.
Gordon Stanley THORNTON	5A Seabird Lane, Beach Village, Discovery Bay, Hong Kong.
Jeffrey Mark Hunt KEMP	Apartment No. 10, 5/F., Block B, South Bay Villa, 4 South Bay Close, Hong Kong.
Sylvio Fernao Caldeira BERTOLI	12/F., Bowen’s Lookout, 13 Bowen Road, Hong Kong.
Salvatore Anthony PURPURA	Marina Residence 5, Unit 105, Palm Jumeriah, Dubai, UAE.
Geoffrey Norman BINDLEY	Flat F, 42/F., Block 5, La Cite Noble, Hang Hau, Tseung Kwan O, New Territories, Hong Kong.
Peter Langley FAULKNER	Flat B2, Deepdene, 55 Island Road, Deepwater Bay, Hong Kong.

SECRETARY

(As per registry dated 28-05-2014)

Name	Address	Co. No.
Tricor Strath Ltd.	Level 54, Hopewell Centre, 183 Queen’s Road East, Hong Kong.	0004873

HISTORY

The subject was incorporated on 28th May, 1997 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, Wholesaler and Distributor.

Lines: All kinds of steel products.

Employees: 25. (Hong Kong)

Commodities Imported: Imported from South Africa, USA, etc.

Markets: China, Eastern Europe, Japan, Korea, Middle East, other Asian countries, Scandinavia, Southeast Asia, Taiwan, Western Europe, etc.

Annual Turnover: US$250~300 million.

Terms/Sales: On various terms.

Terms/Buying: As per contracted.

FINANCIAL INFORMATION

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

Issued Share Capital: HK$10,000,000.00

Profit & Loss: Business is profitable.

Condition: Keeping in an active state.

Facilities: Sufficient for current needs.

Payment: Reliable and prompt.

Commercial Morality: Good.

Bankers:-

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

Australia & New Zealand Banking Group Ltd., Hong Kong Branch.

Standing: Very Good.

GENERAL

MacSteel International Far East Ltd. was a wholly-owned subsidiary of MacSteel International Holdings B.V. [MIHBV] of the Netherlands. On 27th October, 2010, MIHBV transferred all its shares to MacSteel International Trading Holdings B.V. [MITH] which is also based in the Netherlands. Since then, the subject has become a 100%-owned subsidiary of MITH which in turn is wholly-owned by MIHBV. MITH and MIHBV are engaged in the same lines of business, more or less.

MIHBV was set up as a joint venture between two South Africa firms, MacSteel Holdings (Pty) Ltd. [MacSteel] and ArcelorMittal SA, around MacSteel’s pre-existing international steel marketing organisation and is headquartered in Amsterdam, the Netherlands.

For more than 28 years, the MacSteel Group has been trading in steel around the globe. From small beginnings in the Asia Pacific region during the early 1980’s, following the acquisition of trading house Leo Raphaely & Sons, steel products are now traded annually through 5 regional Hubs located strategically in London, New York, Hong Kong, Dubai and Johannesburg. The total volume of steel products traded annually is over 5 million tons.

Cargo shipping which started out as an ancillary service to facilitate international steel trading has grown into a substantial business in its own right.

The subject is trading in ferrous metals (from North America, Western Europe, India, China and South Africa). Products are re-exported to China, Eastern Europe, Japan, Korea, the Middle East, Scandinavia, Southeast Asia, Taiwan, Western Europe

Formed in January 1997 as a joint venture between Iscor Ltd. [Iscor] and MacSteel, the MacSteel Group trades internationally in steel produced by ArcelorMittal SA and the other steel mills.

MacSteel now comprises a group of companies specialised in the marketing, distribution, warehousing, processing and movement of steel and similar bulk commodities.

Since its formation, it has acquired a number of subsidiaries that, together, have been trading in the international steel market since the 1980’s. MIHBV is already recognized as one of the world’s most professional steel marketing operators.

One of the main member of the Group is Macsteel Service Centres SA [MSCSA]. This firm is South Africa’s market leader in the processing and distribution of carbon and stainless steels. Three dynamic business units operate a strategic network of 68 branches in South Africa, Swaziland, Mozambique, Zambia and Malawi, with a joint venture in Ghana. MSCSA has serviced the metals industry for over 100 years through its group of companies, all of which operate under the umbrella of MSCSA.

Another main member of the Group is Macsteel Service Centers USA which is one of the leading metal processors in North America, distributing a full complement of carbon steel, general line and specialty products as well as a comprehensive range of stainless steel and aluminium flat rolled steel to customers throughout North America.

Summarised, the MacSteel Group’s activities comprise the following volumes on an annual basis:-

· MacSteel Service Centres – 3.5 million tonnes

· MacSteel International Trading – 5.5 million tonnes

· MUR Shipping – 25.0 million tonnes

· Iron Ore Supplies – 10 million tonnes

The followings are some of the products carried by the Group and the subject:

Basic pig iron, Blast furnace pellets, Iron ore - lump and fines, Foundry pig iron, Nodular pig iron, Pool iron, Pool steel, D.R. Pellets, D.R. Sinter, Coking coal, Metallurgical coke, Granulated iron, Graphite fines, Petroleum coke, Heavy melting scrap, Ingots, Blooms, Billets, Alloyed bars, Square, Rectangular and Round tubing, Seamless, hot finished line/OCTG pipe, Seamless pipe, Spring Steel Flat/ Round Bar in coil and lengths, Steel wool wire rods, Steel wool wire, Universal beams and columns, Welded ERW/DSAW/Spiral Line pipe, Wide flange beams, Prime slabs (also Stock, Over rolling and Transfer slabs), Hot rolled coil and sheet, Hot rolled plate, Hot rolled pickled and oiled coil and sheet, Hot rolled chequer plate in coil and sheet, Cold rolled coil and sheet, Electrical steel in coil and sheet

The business scope of MIHBV are the followings:-

· Sourcing of steel products and raw materials

· Marketing and selling of steel products and raw materials

· Claims handling

· Logistics management

· Banking services

· After sales support

·

MIHBV is particularly well placed to provide these services through its worldwide network of offices and agents, who have built up significant knowledge and experience of their local market needs. MIHBV trades in a vast range of products including hot and cold rolled coil, billets, wire rod, slabs, stainless steel, aluminium, reinforced bar, tubes and pipes, galvanized and engineered steel products and iron ore.

The subject was set up in Hong Kong in May 1997 for the marketing of steel products in the Asia Pacific region. Its local affiliate, MacSteel International (China) Ltd. [MacSteel China] is responsible for the China market. In February 1998, MacSteel China was renamed from Far East Commodities & Trading Co. Ltd. which was incorporated in January 1963.

The associated company of the subject Hong Kong MUR Shipping is also located at the same operating office.

The business of MUR Shipping has been expanding.

The contact persons of the subject are Mr. Sylvio Fernao Caldira Bertoli and Mr. Peter Faulkner. The former is responsible for flat products while the latter for long products.

The annual turnover of the subject ranges from US$250 to 350 million. History in Hong Kong is over seventeen years and three months.

The subject is fully supported by MIHBV which has set up affiliated and associated companies in Asia, Europe, Africa, Australia, North and South America.

Now the new CEO of MIHBV is Mr. Salvatore Anthony Purpura.

On the whole, in view of the parentage and lines of business of the subject, consider it good for normal business engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.99
UK Pound	1	Rs.99.10
Euro	1	Rs.79.03

INFORMATION DETAILS

Analysis Done by :	KAR
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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.