MIRA INFORM REPORT

Report No. :	344257
Report Date :	13.10.2015

IDENTIFICATION DETAILS

Name :	HONGKONG FIRST SOURCE LTD.

Registered Office :	C/o Conpak Management Consultants Ltd. Room 05-15, 13A/F., South Tower, World Finance Centre, Harbour City, 17 Canton Road, Tsimshatsui, Kowloon

Country :	Hong Kong

Date of Incorporation :	01.08.2013

Com. Reg. No.:	61831149

Legal Form :	Private Limited Liability Company

Line of Business :	The subject’s lines of business are unknown since the secretarial company declined to tell us about its business.

No. of Employees :	No Employee 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 :

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 – March 31, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 12.5% of total system deposits in Hong Kong by the end of 2014. 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 47.3 million in 2014, 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 2014 mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% 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 4.4% in 2014. 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 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies.

Source : CIA

Company Name

HONGKONG FIRST SOURCE LTD.

ADDRESS

Registered Office:-

C/o Conpak Management Consultants Ltd.

Room 05-15, 13A/F., South Tower, World Finance Centre, Harbour City, 17 Canton Road, Tsimshatsui, Kowloon, Hong Kong.

BUSINESS REGISTRATION NUMBER

61831149

COMPANY FILE NUMBER

1946739

DATE OF INCORPORATION

1st August, 2013.

ISSUED SHARE CAPITAL

HK$10,000.00

SHAREHOLDERS

(As per registry dated 01-08-2015)

Name		No. of shares
Rupesh Mannalal PANDIT		7,500
Goldy TIWARI		2,500
		–––––
	Total:	10,000 =====

DIRECTOR

(As per registry dated 01-08-2015)

Name

(Nationality)

Address

Rupesh Mannalal PANDIT

Unit 1501, No. 2, Block 3, Luluo Yuan, Fei Cui Cheng, Xian Lin Jie Dao, Yu Hang Qu, Hangzhou City, Zhejiang Province, 311100, China.

SECRETARY

(As per registry dated 01-08-2015)

Name	Address	Co. No.
Conpak Management Consultants Ltd.	Room 05-15, 13A/F., South Tower, World Finance Centre, Harbour City, 17 Canton Road, Tsimshatsui, Kowloon, Hong Kong.	0640849

GENERAL

Hongkong First Source Ltd. was incorporated on 1st August, 2013 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 ‘Room 05-15, 13A/F., South Tower, World Finance Centre, Harbour City, 17 Canton Road, Tsimshatsui, Kowloon, Hong Kong’ known as ‘Conpak Management Consultants Ltd.’ which is handling its correspondences and documents. This consultant 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 10,000 ordinary shares of HK$1.00 each of which 75% are owned by Mr. Rupesh Mannalal Pandit and 25% owned by Mr. Goldy Tiwari. Both are India merchants. The first is also 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. The registered address of the shareholders are in Hangzhou City, Zhejiang Province, China.

The subject’s lines of business are unknown since the secretarial company declined to tell us about its business.

The director and shareholder of the subject cannot be reached as they are in China.

There is a company in Shaoxing County, Shaoxing City, Zhejiang Province, China known as Shaoxing Bitai Import & Export Co. Ltd. [Bitai] which is operated by Mr. Rupesh Mannalal Pandit who is an India merchant. However, we are not sure whether this Pandit is the same person as the director of the subject or not.

Bitai was established in 2011 with a registered capital of RMB220,000.00 Yuan. It is trading in the following commodities: Textile products, knitting products, garments and garment accessories, building materials, furniture, electronic products, machinery & equipment, plastic raw materials, chemicals, arts and crafts, toys, footwear, general merchandise.

Commodities are chiefly sourced from China. Prime markets are India and the other Asian countries.

The subject’s business is chiefly handled by the two shareholders of the subject. However, its business in Hong Kong is not active. History in Hong Kong is over two years and two 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.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.73
UK Pound	1	Rs.99.30
Euro	1	Rs.73.60

INFORMATION DETAILS

Analysis Done by :	KIN

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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