MIRA INFORM REPORT

Report No. :	342859
Report Date :	29.09.2015

IDENTIFICATION DETAILS

Name :	GRACE (HONG KONG) INTERNATIONAL TRADING LIMITED

Registered Office :	Rm B, 14/F, Wah Hen Commercial Centre, 383 Hennessy Road, Wan Chai

Country :	Hong Kong

Date of Incorporation :	26.07.2012

Com. Reg. No.:	60145890

Legal Form :	Private Limited Liability Company

Line of Business :	Not Available (Note: We tried to confirm obtain the details activity but the same is not available from any source.)

No. of Employees :	Not Available

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 :	Offshore Company
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

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 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

Contact Points

Company Name (in English):	Grace (Hong Kong) International Trading Limited
Supplied Name:	Grace (Hong Kong) International Trading Limited
Supplied Address:	Rm B, 14/F, Wah Hen Commercial Centre, 383 Hennessy Road, Wan Chai, Hong Kong.

Note: The exact name is as above.

Credit Summary

Credit Opinion:

Since we consider subject as an offshore company and we didn’t find subject’s business entity either in Hong Kong or anywhere else, thus we did not give credit rating at present.

Special Note

We cannot find any operation or valid contact information of the subject in Hong Kong through public files according to supplied name and supplied address.

We visited the supplied address (also the registered address), but did not find the subject on it. We found another company (Lee Chi Fai & Co. Certified Public Accounts) located at it, which is engaged in providing registered and accounting services. The relevant staff on the address introduced that subject is registered on the supplied address, but they declined to disclose any information of the subject for confidential reasons.

Based on subject’s registered files and our investigation, we consider subject as an offshore company.

We found subject’s registered files from local registry, supplying as following for reference.

Company Identification Details

Registered Name:	Grace (Hong Kong) International Trading Limited
Registered Address:	Rm B, 14/F, Wah Hen Commercial Centre, 383 Hennessy Road, Wan Chai, Hong Kong.
Date of Registration:	2012-7-26
Registered Number:	1778893
Business Registration No.:	60145890
Paid-up Capital:	HKD 1,000,000 (USD 129,000) = 1,000,000 Shares@ HKD 1 (As of 2015.4, 1 HKD = 0.129 USD)
Legal Form:	Private Limited Liability Company
Listed at Stock Exchange:	No
Date of Last Annual Return:	2014-7-26

History

Subject was incorporated on 2012-7-26 with the registered number 1778893 as Private Limited Liability Company in Hong Kong.

Corporate Structure

Parent Company:

Name:	Yibin Grace Group Co. Ltd (literal translation)
Registered Address:	Hangtian Road, Nan’an Economic and Technology Development Area, Yibin, China
Date of Foundation:	1987-7-1
Legal Representatives:	Tao Feng
Legal Form:	Private Limited Liability Company
Registered Number:	511500000000068
Stake Interest in Subject:	100%
Registered Capital:	CNY 341,047,800 (USD 55,727,211) (As of 2015.4, 1 CNY= 0.1634 USD)
Activities:	Manufacturing and sale of fiber and related raw material, etc.

Shareholders

Name	Subscription Shares	Proportion of Investment (%)
Yibin Grace Group Co. Ltd (literal translation)	1,000,000	100%
Total	1,000,000	100%

Major Shareholder Information:

Name:	Yibin Grace Group Co. Ltd (literal translation)
Address:	Hangtian Road, Nan’an Economic and Technology Development Area, Yibin, China

Management Information

Core Management

Detailed Information of Directors:

1
Name:	Tao Feng
Address:	No. 1, Unit 2, No. 81, Beiqing Street, Cuiping District, Yibin, Sichuan, China
Position:	Director
ID Number:	512501196401072674
2
Name:	Ming Deng
Address:	No. 11, Building 9, Xinfu Village, No. 13 Changjiang Avenue (West Section), Cuiping District, Yibin, Sichuan, China
Position:	Director
ID Number:	512223196903250014
3
Name:	Hua Deng
Address:	No. 8, Unit 2, No. 43, Xianfu Street, Cuiping District, Yibin, Sichuan, China
Position:	Director
ID Number:	512501196310180012
4
Name:	Chuandong Deng
Address:	No. 9, Building 9, Xingfu Village, No. 13, Changjiang Avenue (West Section), Cuiping District, Yibin, Sichuan, China
Position:	Director
ID Number:	512501196311162270
5
Name:	Wei Song
Address:	No. 2, 3/F, Unit 5, Building 61, Longwan Village, No. 13, Changjiang Avenue (West Section), Cuiping District, Yibin, Sichuan, China
Position:	Director
ID Number:	512501196910272316
6
Name:	Global-Fortune Irap Limited
Address:	Rm B, 14/F, Wah Hen Commercial Centre, 383 Hennessy Road, Wan Chai, Hong Kong.
Position:	Corporate Secretary
Registered Number:	1169967

Operation Information

Subject does not have business entity in Hong Kong.

Financial Information

The subject has no obligation to supply its financial statement to the third party according to the relevant policy in Hong Kong and the only source from which we can obtain the information is the subject itself.

Subject does not have business entity in Hong Kong, thus we cannot obtain the relevant information.

Public

Mortgage Record

1
Company Name:	Grace (Hong Kong) International Trading Limited ("the Company")
Instrument of Creating Mortgage:	Charge on Cash Deposits) to secure Liabilities of the Depositor(s) ("Charge")
Date of Creating Mortgage:	2013-8-19
Amount Secured:	All sums of money and liabilities whether actual or contingent, as at the date of the Charge or in the fiiture owing or incurred to the Bank on any account whatsoever by the Company whether as principal or surety and whether from the Company solely or from the Company jointly with any other person or persons or from any firm in which the Company may be a partner and in whatever style, name or form, and including (without limitation): (i) the amount of (01) any loans, acceptances or other credits or advances made to or for the accommodation or at the request of the Company, (02) any notes or bills, made, accepted, endorsed, discounted or paid by the Bank, (03) any liability under guarantees, indemnities, foreign exchange contracts (spot, forward or otherwise), documentary or other credits or any other instruments whatsoever assumed or given or entered into by the Bank for or at the request of the Company and (04) any liability under all hire purchase agreements and financial, equipment, motor vehicle and other leases entered into between the Bank and the Company; and (ii) (01) interest to the date of payment (notwithstanding any demand, judgment, death, dissolution, insolvency or other incapacity of the Company or any other person) at such rates and upon such terms as may from time to time be payable，(02) all commissions, discounts, fees and other charges payable to the Bank and (03) all sums, disbursements and other expenses paid or incurred by the Bank, in relation to the Bank's provision of banking or credit facilities or other financial accommodation (including, without limitation, pursuant to hire purchase agreements and financial, equipment, motor vehicle and other leases) to the Company, the implementation of the provisions of, or exercise of rights under, the Charge or the perfection or enforcement (or attempted perfection or enforcement) of the security or any other guarantees or encumbrances for any indebtedness of the Company to the Bank, including all reasonable legal costs and all other costs and expenses and any exchange control premiums, penalties or expenditure on a full indemnity basis
Name of Mortgagee:	DBS Bank (Hong Kong) Limited ("Bank")
Address of Mortgagee:	11th Floor, The Center, 99 Queen's Road Central, Hong Kong
Description of Property Mortgaged:	Description of Property Mortgaged or Charged (1) By way of first fixed charge and agreement to charge : the Deposit and all right, title and interest of the Company whatsoever, present and future, thereto and therein, together with any certificates of deposit or other instruments or securities evidencing title, or otherwise relating, thereto and any account to which the same is credited. (2) By way of set-off: any sum standing to the credit of any one or more of the accounts of the Company with the Bank (whether current, deposit, loan or of any other nature whatsoever and whether subject to notice or not and whether such sum or sums is/are unmatured deposits and including, without limitation, the account to which the Deposit is credited) wheresoever situate
2
Company Name:	Grace (Hong Kong) International Trading Limited ("the Borrower")
Instrument of Creating Mortgage:	Trade Finance Security Assignment (the “Assignment”)
Date of Creating Mortgage:	2013-7-18
Amount Secured:	All obligations and liabilities of whatever nature of the Borrower owed to the Bank at any time and in any currency and whether present or future, actual or contingent and whether owed solely or jointly or severally with or as surety for another and all costs and expenses incurred by the Bank in connection with the recovery of any of the above or the enforcement of the Assignment on a full indemnity basis (“Secured Liabilities”)
Name of Mortgagee:	Industrial and Commercial Bank of China (Asia) Limited (the “Bank”）
Address of Mortgagee:	33rd Floor, ICBC Tower, 3 Garden Road, Central, Hong Kong.
Description of Property Mortgaged:	Under Clause 3 of the Assignment, the Borrower as beneficial owner and as security for the payment of all Secured Liabilities: (a) assigns and agrees to assign absolutely to the Bank all the present and future rights, title, interests and benefits of the Borrower in and to the following assets (i) the Export Credits; (ii) the Export Collection Bills; (iii) the Sales Contracts; (iv) the Export Invoice Receivables; (v) the Insurances; (Vi) the Trade Documents; and (vii) all claims, remedies and proceeds in connection with any of the foregoing; (b) charges and agrees to charge to the Bank by way of first fixed charge all the present and future rights, title, interests and benefits of the Borrower in and to the following assets (i) the Goods together with their proceeds; (ii) the Pledged Goods; (iii) the Deposit; and (iv) to the extent any Security Assets is not effectively assigned under sub-clause (a), such Security Asset; and (c) pledges and agrees to pledge to the Bank the Pledged Goods and the Trade Documents which are now or may in the future be in the possession of the Bank.

Lawsuits

Up to now, no present or latent litigation of the subject has been found.

High Court Action:	Clear
High Court Baukufty Bankruptcy Proceedings:	Clear
High Court Commercial Action:	Clear
High Court Construction & Arbitration Proceedings:	Clear
High Court Companies Winding-Up:	Clear

Attachment

Wah Hen Commercial Centre, 383 Hennessy Road, Wan Chai, Hong Kong

14/F, Wah Hen Commercial Centre, 383 Hennessy Road, Wan Chai, Hong Kong

Rm B,14/F, Wah Hen Commercial Centre, 383 Hennessy Road, Wan Chai, Hong Kong.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.08
UK Pound	1	Rs.100.32
Euro	1	Rs.73.81

INFORMATION DETAILS

Analysis Done by :	RAS

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.