MIRA INFORM REPORT

Report No. :	323715
Report Date :	25.05.2015

IDENTIFICATION DETAILS

Name :	MANUCHAR STEEL HONG KONG LTD.
Registered Office :	Suite 1005-1006, 10/F., China Insurance Group Building, 73 Connaught Road Central
Country :	Hong Kong
Date of Incorporation :	22.12.2006
Com. Reg. No.:	37489219
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Wholesaler of
No of Employees :	10 (Including associate)

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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

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 40.7 million in 2013, 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 48.5% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56.9% 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. As of year-end 2014, the Democracy protests that began in late September probably will have some adverse effects on economic growth, particularly retail sales.

Source : CIA

Company name & address

MANUCHAR STEEL HONG KONG LTD.

ADDRESS: Suite 1005-1006, 10/F., China Insurance Group Building, 73 Connaught Road Central, Hong Kong.

PHONE: 852-3162 8301, 3162 8302

FAX: 852-3162 8313, 3162 8307

E-MAIL: anthony.maas@manuchar.com

MANAGEMENT

Managing Director: Mr. Anthony G.S.B. Maas

SUMMARY

Incorporated on: 22nd December, 2006.

Organization: Private Limited Company.

Issued Share Capital: €100,000.00

Business Category: Importer, Exporter and Wholesaler.

Employees: 10. (Including associate)

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

Banking Relation: Satisfactory.

Company name

MANUCHAR STEEL HONG KONG LTD.

ADDRESS

Registered Head Office:-

Suite 1005-1006, 10/F., China Insurance Group Building, 73 Connaught Road Central, Hong Kong.

Immediate Holding Company:-

Manuchar Steel N.V., Belgium.

2170 Antwerp-Merksem, Rietschoorvelden 20, Belgium.

[Tel: 32-3-640 8430

Fax: 32-3-640 9330

E-mail: contact@manucharsteel.com]

Ultimate Holding Company:-

Manuchar N.V., Belgium.

2170 Antwerp-Merksem, Rietschoorvelden 20, Belgium.

[Tel: 32-3-640 9302

Fax: 32-3-640 9330

E-mail: contact@manuchar.com]

Associated/Affiliated Companies:-

Baubur NV, Belgium.

LDI International NV, Belgium.

Manuchar (Shanghai) Co. Ltd., China.

Manuchar (Thailand) Ltd., Thailand.

Manuchar Argentina S.A., Argentina.

Manuchar Chile S.A., Chile.

Manuchar Colombia Cia S.A.S., Columbia.

Manuchar Cote d’Ivoire S.A., Cote d’Ivoire.

Manuchar de EI Salvador SA de CV, El Salvador.

Manuchar Dominicana SA, Dominican Republic.

Manuchar Hong Kong Ltd., Hong Kong. (Same address)

Manuchar Inc., US.

Manuchar India Pvt. Ltd., India.

Manuchar Internacional SA de CV, Mexico.

Manuchar Kenya Ltd., Kenya.

Manuchar Logistics S.A.S., Columbia.

Manuchar Middle East FZE, UAE.

Manuchar Philippines Inc., Philippines.

Manuchar South Africa (Pty) Ltd., South Africa.

Manuchar Trading House Internagtional Ltd., Nigeria.

Manuchar Trinidad Ltd., Trinidad.

Manuchar Venezuela C.A., Venezuela.

Manuchar Vietnam Ltd., Vietnam.

Parts Trading Co. NV, Belgium.

PT. Manuchar Indonesia, Indonesia.

etc.

BUSINESS REGISTRATION NUMBER

37489219

COMPANY FILE NUMBER

1097316

MANAGEMENT

Managing Director: Mr. Anthony G.S.B. Maas

ISSUED SHARE CAPITAL

€100,000.00

SHAREHOLDER

(As per registry dated 22-12-2014)

Name	No. of shares
Manuchar Steel N.V. 2170 Antwerp-Merksem, Rietschoorvelden 20, Belgium.	10,000 =====

DIRECTORS

(As per registry dated 22-12-2014)

Name (Nationality)	Address
Anthony G.S.B. MAAS	Flat C, 29 Seahorse Lane, Discovery Bay Beach Village, Lantau Island, Hong Kong.
Philippe L.M. HUYBRECHS	Breemlaan 20, 2530 Boechout, Belgium.

SECRETARY

(As per registry dated 22-12-2014)

Name	Address	Co. No.
Manylike Services Ltd.	Room 1-3, 10/F., Kwan Chart Tower, 6 Tonnochy Road, Wanchai, Hong Kong.	0237093

HISTORY

The subject was incorporated on 22nd December, 2006 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at Suite 2106, 21/F., The Centrium, 60 Wyndham Street, Central, Hong Kong, moved to the present address in June 2013.

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

OPERATIONS

Activities: Importer, Exporter and Wholesaler.

Lines: Iron and steel, related products, etc.

Employees: 10. (Including associate)

Commodities Imported: Imported from Latin America, Southeast Asia, Europe, etc.

Markets: Worldwide countries.

Terms/Sales: As per contracted.

Terms/Buying: Various terms.

FINANCIAL INFORMATION

Issued Share Capital: €100,000.00

Profit or Loss: Business is profitable.

Condition: Keeping in an active state.

Facilities: Making active use of general banking facilities.

Payment: Met trade commitments as contracted.

Commercial Morality: Satisfactory.

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

Standing: Very Good.

GENERAL

Manuchar Steel Hong Kong Ltd. is a 100%-owned subsidiary of Manuchar Steel N.V. which in turn is wholly-owned by Manuchar N.V. [Manuchar], both are Belgium-based firms.

Incorporated in December 2006, the subject is a member of the Manuchar Group which is engaged in diversified economy.

The subject is chiefly trading in iron and steel and related products. Manuchar Steel has developed relations with most of the steel mills in Latin America, Europe, Turkey, CIS, India, South Korea and China. It has also created niche markets for the mills in developing countries and receive monthly allocations which it promotes in close cooperation with the steel manufacturers. Its products include pig iron, billet and bloom, cold rolled coil, bars, etc.

The subject has got an affiliated company Manuchar Hong Kong Ltd. [Manuchar HK] located at its operating address. Incorporated on 18th October, 2004, Manuchar HK is engaged in the same lines of business as the subject, more or less. However, Manuchar HK carries more products than the subject.

Manuchar, located in Antwerp, is a trader, distributor and a logistics service provider. It carries chemicals, steel and wood. Over the past years, Manuchar recorded a strong growth in business.

The Group is trading in the following commodities:-

• Chemicals & Fertilizers, Detergents & Home Care Products, Agrochemicals;
• Personal Care and Cosmetics;
• Food & Feed;
• Mining & Oil/Gas Industry;
• Building Materials, Glass and Ceramics;
• Textile & Leather Products;
• Filtration & Water Treatment Chemicals;
• Minerals & Ferro-alloys;
• Pharmaceuticals - LDI International;
• Polymers;
• Pulp & Paper;
• Spare Parts & Mining Products - PTC;
• Steel;
• Special Steel and Metals - Baubur; &
• Wood
• Cement.

The subject is trading in the same commodities as the Group.

Currently, Manuchar is providing its clients with the following business scope:-

· Sourcing of products (mainly chemicals, steel and wood) from worldwide suppliers;

· Organisation of logistics between producers and customers;

· Financing of goods during transportation;

· Further handling and repackaging of goods; &

· Distribution and marketing of these products through its local network, etc.

Manuchar offers its clients with these services through a wide local distribution and sourcing network which extends today to 120 countries in Latin America, Africa, the Middle East and larger parts of Asia. It has got its own offices in the following regions and countries:-

· Latin America.

· South America — Brazil, Venezuela, Colombia, Ecuador, Peru, Bolivia, Chile and Argentina.

· Central America — Mexico, El Salvador, Honduras.

· Caribbean — Dominican Republic, Cuba.

· Africa — Nigeria, South Africa, Uganda.

· Asia — China, India, Thailand, the Philippines, Hong Kong.

· Europe — Belgium, Oekraïne, Russia.

Manuchar’s Hong Kong office is the subject and its associate. Manuchar has got a significant subsidiary known as Manuchar (Shanghai) Co. Ltd. [Manuchar China] which acts a bridge linking China with the rest of the world. Now, Manuchar has set up offices in Beijing, Shanghai, Tianjin, and Guangzhou. The logistics system developed by Manuchar China is able to organize and monitor several full cargo vessels per week.

Manuchar China also helps Chinese companies to raise their competitiveness by sourcing raw materials for them with the lowest prices from worldwide countries.

Manuchar and Rossari Biotch, an Indian firm, jointly set up Manuchar China. This firm is the sole agent for Manuchar’s and Rossari Biotch’s products in China. Rossari Biotch is a leader in India producing fine chemical products.

The subject acts as a foothold for Manuchar to penetrate the China market further.

Now, Manuchar has over 1,500 employees worldwide and has its own local infrastructure in over 40 countries, mainly in emerging markets.

According to Manuchar, its scope of business has been increasing and engaged in diversified economy. Besides, more and more associated companies have been set up.

In 2013, the revenues of the Group amounted to US$1.4 billion. Now, its annual revenues ranges from US$1.3 to 1.5 billion. Business is profitable and steady.

The subject’s business in Hong Kong is chiefly administered by Mr. Anthony G.S.B. Maas who is a Belgian. Being a member of the Patrick Maas family, he has been in Hong Kong for a very long time. Now, he is a Hong Kong ID holder.

On the whole, since the history of the subject in Hong Kong is over eight years and five months, consider it good for normal business engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 63.57
UK Pound	1	Rs. 99.66
Euro	1	Rs. 70.92

INFORMATION DETAILS

Analysis Done by :	KRN
Report Prepared by :	DPT

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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