MIRA INFORM REPORT

Report Date :

24.09.2014

IDENTIFICATION DETAILS

Name :	SANDA KING INDUSTRIES LTD.
Registered Office :	Room 1501, 15/F., Lippo Sun Plaza, 28 Canton Road, Tsimshatsui, Kowloon
Country :	Hongkong
Date of Incorporation :	28.08.1987
Com. Reg. No.:	12644634
Legal Form :	Private Limited Company.
Line of Business :	Importer, Exporter and Wholesaler of Digital Products, Computer Related Products, Audio And Video Products, Mobile Phones
No. of Employees :	20 (Including Branch Offices)

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 1, 2014

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

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	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 and Address

SANDA KING INDUSTRIES LTD.

ADDRESS: Room 1501, 15/F., Lippo Sun Plaza, 28 Canton Road, Tsimshatsui, Kowloon, Hongkong.

PHONE: 852-2723 5613, 2724 2096, 2723 1361

FAX: 852-2723 1263

E-MAIL: sandaking@sandaking.com

MANAGEMENT

Managing Director: Ms. Lu Yueh Chun

SUMMARY

Incorporated on: 28th August, 1987.

Organization: Private Limited Company.

Capital: Nominal: HK$13,000,000.00

Issued: HK$13,000,000.00

Business Category: Importer, Exporter and Wholesaler.

Employees: 20. (Including branch offices)

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

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

Room 1501, 15/F., Lippo Sun Plaza, 28 Canton Road, Tsimshatsui, Kowloon, Hong Kong.

Branches & Offices:

Majestic House, Tsimshatsui, Kowloon, Hong Kong.

Comfort Building, Tsimshatsui, Kowloon, Hong Kong.

Mailing Address:

P.O. Box 98808, Tsim Sha Tsui Post Office, Kowloon, Hong Kong.

Taiwan Branch:-

Sandal King Industries Ltd.

Room 6, 5F, 43 Alley, 115 Cheongsam North Road, Section 2, Taipei, Taiwan.

[Tel: 886-2-2531-9720; Fax: 886-2-2571-2696]

Shenzhen Office:-

Sandal King Management & Consultant (Shenzhen) Co. Ltd.

Room 2201-04, 22/F., Nonempty Building, 6013 Shannon Road, Fustian, Shenzhen Special Economic Zone, China.

[Tel: 86-755-8283 9303; Fax: 86-755-8283 9379]

Associated/Affiliated Companies:-

Master Electronics Industries Ltd., Hong Kong.

Ram Ever Prosper International Inc., Taiwan.

BUSINESS REGISTRATION NUMBER

12644634

COMPANY FILE NUMBER

0197364

MANAGEMENT

Chairman: Mr. N Kaka Shaker

Managing Director: Ms. Lu Yueh Chun

Marketing Officer: Mr. Zoe Lam

CAPITAL

Nominal Share Capital: HK$13,000,000.00 (Divided into 11,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$13,000,000.00

SHAREHOLDER

(As per registry dated 28-08-2013)

Name	Occupation	No. of shares
LU Yueh Chun	Merchant	13,000,000 ========

DIRECTOR

(As per registry dated 28-08-2013)

Name (Nationality)	Address
LU Yueh Chun	Suite 2506, 25/F., Hampton Court, Gateway Apartment, Harbour City, Canton Road, Kowloon, Hong Kong.

SECRETARY

(As per registry dated 28-08-2013)

Name	Address	Co. No.
Welldone Accounting & Secretarial Ltd.	Flat B, 6/F., Wing Wong Commercial Building, 557-559 Nathan Road, Kowloon, Hong Kong.	0208931

HISTORY

The subject was incorporated on 28th August, 1987 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 and Wholesaler.

Lines: Digital products, computer related products, audio and video products, Mobile phones

Employees: 20. (Including branch offices)

Commodities Imported: China and other Asian countries.

Markets: Taiwan, India, and other Asian countries, Turkey, Europe, North and South America, etc.

Terms/Sales: L/C, T/T, etc.

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

MEMBERSHIP

The Indian Chamber of Commerce Hong Kong, Hong Kong.

FINANCIAL INFORMATION

Nominal Share Capital: HK$13,000,000.00 (Divided into 11,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$13,000,000.00

Mortgage or Charge (since August 2012): (See attachment)

Profit & Loss: Made small profits in the past years.

Condition: Business is active.

Facilities: Making active use of general banking facilities.

Payment: Met obligations as required.

Commercial Morality: Satisfactory.

Bankers:-

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

HBZ Finance Ltd., Hong Kong.

BNP Paribas, Hong Kong Branch.

Shanghai Commercial Bank Ltd., Hong Kong.

National Bank of Pakistan Kowloon Branch, Hong Kong.

Citibank, N.A., Hong Kong.

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

Standing: Very Good.

GENERAL

Having issued 13 million ordinary shares of HK$1.00 each, Sanda King Industries Ltd. is wholly-owned by Ms. Lu Yueh Chun who is a Taiwan businesswoman. Ms. Lu has been in Hong Kong for a very long time. Being a Hong Kong ID holder, she is also the only director of the subject.

The Chairman of the subject is Mr. N Kaka Shaker.

The subject has got a branch in Taiwan also known as Sanda King Industries Ltd. [Taiwan Sanda King]. Taiwan Sanda King is the head office of the Sanda King Group of companies.

Set up in 1987, the subject is trading in the following commodities: B/W TVs, CRT TVs, LCD TVs, TFT TVs, car speakers, car stereos, car MP3 FM Modulator, head phones, DVDs and VCDs, Hi-Fi systems, home theatres, personal sterols, plasma TVs, radio cassettes, satellite receivers, digital products, computer related products, mobile-phones, etc.

In general, the subject is trading in the following main categories, namely, Audio & Video Equipment, Digital Products, Computer Related Products, Electronic Products, Kitchen Ware, Home Appliances. In recent years, its lines of businesses have included foodstuffs.

Commodities are sourced from China and the other Asian countries. It was due to business expansion, the subject has set up two branch companies in Tsimshatsui, Kowloon, Hong Kong.

The subject’s firm in China is known as Sanda King Management & Consultant (Shenzhen) Co. Ltd. [China Sanda King].

China Sanda King is responsible for the sourcing activities. It is responsible for sourcing commodities from China, mainly electronic products, small household electric appliances, giftware, etc, and exporting to Turkey and South America. Business is rather active.

Currently, the business of China Sanda King is expanding substantially as it is recruiting at least 20 staff members engaged in different posts.

The Contact Person Ms. Jiang Yunshan is a Chinese.

The prime markets of the subject are Taiwan, India, Southeast Asia, North America, South America, Europe, the Middle East, etc. The subject also has got business partners in Turkey for over twenty years.

To our knowledge, the subject has got a number of customers in India, Bangladesh, Taiwan, Europe, etc.

Formerly the subject was owned by a number of Indian. In 2010, it was acquired by Ms. Lu Yueh Chun. Lu seems to be also the owner of Taiwan Sanda King.

The business of Taiwan Sanda King keeps on expanding. It is trying to set up joint ventures in Western Europe and South America.

The subject has set up sourcing teams in Taiwan apart from China and Hong Kong.

The history of the subject in Hong Kong is over 27 years.

On the whole, consider it good for normal business engagements.

REMARKS

Court case record:-

Date	Plaintiff	Defendant	Cause	Amount
Feb. 1996	Jardine Shipping Agencies (Hong Kong) Ltd.	Sanda King Industries Ltd.	Amount due	HK$28,197

MORTGAGE OR CHARGE

(Since August 2012)

Date	Particulars	Amount
13-09-2012	Instrument: Deposit Deed Property: By way of a first fixed charge and as a continuing security for the Obligations, the Company charges and assigns absolutely all its rights, title to and interest in the Accounts and all Deposits from time to time in the Accounts and/or comprising the Accounts maintained with Citibank N.A., any branch and/or Citibank (Hong Kong) Ltd. Mortgagee: Citibank N.A., Hong Kong Branch.	All moneys
12-10-2012	Instrument: Charge Over Deposit Property: The Depositor charges the Deposits in all Accounts and all right, title and interest, both present and future, in and to such Deposits and Accounts in favour of ANZ as continuing security for the due and punctual payment of all moneys and performance of all other obligations that the Depositor and the Customer, in any capacity and whether alone or with any other person, is or at any time becomes actually or contingently liable to pay or perform to, for or on account of ANZ in any manner or on any account whatever pursuant to or in connection with the Secured Facilities Mortgagee: Australia & New Zealand Banking Group Ltd., Hong Kong Branch.	All obligations owing to Australia & New Zealand Banking Group Ltd. acting through its head office or at any other branch by the Deposit on any account, whether present or future, actual or contingent

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.87
UK Pound	1	Rs.99.63
Euro	1	Rs.78.23

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%)

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.