MIRA INFORM REPORT

Report No. :	489839
Report Date :	07.02.2018

IDENTIFICATION DETAILS

Name :	ROTARY ENGINEERING (ASIA) LIMITED

Registered Office :	Unit 6, 11/F., Guard Force Centre, 3 Hok Yuen Street East, Hunghom, Kowloon

Country :	Hong Kong

Date of Incorporation :	16.04.1985

Com. Reg. No.:	09609479

Legal Form :	Private Limited Company

Line of Business :	Importers and re-exporters; distributors and wholesalers; agents; installation, supply, repair & maintenance services of Air & gas compressors; ventilating & exhaust fans; fork lift trucks; hand tools on truck maintenance; hoists; lubricants; motorcar testing, repairing & servicing equipment & supplies; railway vehicle cleaning equipment; tyre recapping, retreading & repairing equipment & supplies.

No. of Employees :	8. (Hong Kong Office)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating

Explanation

Rating Comments

Acceptable Risk

Business dealings permissible with moderate risk of default

Status :	Good

Payment Behaviour :	Regular

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

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

Hong Kong

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately 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 reexports, 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 continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

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 aided a more rapid initial recovery 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 9.4% of total system deposits in Hong Kong by the end of 2015. 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. Mainland visitors to Hong Kong declined 3% in 2015 to approximately 45.7 million, reflecting an overall drop of 2.5% in total visitors to Hong Kong. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2015, mainland Chinese companies constituted about 51% of the firms listed on the Hong Kong Stock Exchange and accounted for about 62.1% 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. 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, which took effect in 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.

Credit expansion and a tight housing supply have caused Hong Kong property prices to rise rapidly; consumer prices increased 2.6% in 2016, but slowed to 2.0% in 2017. Lower- and middle-income segments of the population are increasingly unable to afford adequate housing.

Hong Kong’s economic integration with the mainland continues to be most evident in the banking and finance sector. Initiatives like the Hong Kong-Shanghai Stock Connect, the Mutual Recognition of Funds, and The Hong Kong Shanghai Gold Connect are all important steps towards opening up the Mainland’s capital markets and has reinforced Hong Kong’s leading role as China’s offshore RMB market. Additional connect schemes from bonds to commodities and other investment products are also under exploration by Hong Kong authorities.

Source : CIA

Company name & address

ROTARY ENGINEERING (ASIA) LIMITED

ADDRESS: Unit 6, 11/F., Guard Force Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.

PHONE: 852-2363 2978

FAX: 852-2363 2978

E-MAIL: sales@rotaryengasia.com

MANAGEMENT

Managing Director: Mr. Mak Wai, Lucas

SUMMARY

Incorporated on: 16th April, 1985.

Organization: Private Limited Company.

Issued Share Capital: HK$2,000,000.00

Business Category: Marketing of Engineering Equipment.

Employees: 8. (Hong Kong Office)

Main Dealing Banker: Bank of China (Hong Kong) Ltd., Hong Kong.

Banking Relation: Good.

Name

ROTARY ENGINEERING (ASIA) LIMITED

ADDRESS

Registered Head Office:-

Unit 6, 11/F., Guard Force Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.

BUSINESS REGISTRATION NUMBER

09609479

COMPANY FILE NUMBER

0149793

MANAGEMENT

Managing Director: Mr. Mak Wai, Lucas

Contact Person: Mr. Mak King Sau

ISSUED SHARE CAPITAL

HK$2,000,000.00 (20,000 fully paid ordinary shares)

SHAREHOLDERS

(As per registry dated 16-04-2017)

Name		No. of shares
MAK Wai		18,000
MAK King Sau		2,000
		––––––
	Total:	20,000 =====

DIRECTORS

(As per registry dated 19-04-2017)

Name

(Nationality)

Address

MAK Wai (British)

Flat 2, 17/F., Block C, Yee On Court, 124B Argyle Street, Homantin, Kowloon, Hong Kong.

MAK King Sau

Room C2, 17/F., Block C, Yee On Court, 124B Argyle Street, Homantin, Kowloon, Hong Kong.

SECRETARY

MAK Wai (As per registry dated 16-04-2017)

HISTORY

The subject was incorporated on 16th April, 1985 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: Importers and Re-exporters; Distributors and Wholesalers; Agents; Installation, Supply, Repair &

Maintenance Services.

Lines: Air & gas compressors; ventilating & exhaust fans; fork lift trucks; hand tools on truck

maintenance; hoists; lubricants; motorcar testing, repairing & servicing equipment & supplies; railway vehicle cleaning equipment; tyre recapping, retreading & repairing equipment & supplies.

Agents for:-

Brand	Product	Country of Origin
AIRTEC	Sand blasting machines	Sweden
CEM	Arc welding machines	Italy
CEM	Argon welding machines	Italy
3E	MIG welding machines	-
STENHOJ	Hydraulic press	Denmark
PASTORINO	Hand tools	Italy
NIKE	Industrial pumps	Sweden

Employees: 8. (Hong Kong office)

Commodities Imported: Mainly imported from Italy, Sweden, Denmark, US, Japan, etc.

Markets: Hong Kong, China, Japan, Taiwan and other Asian countries.

Terms/Sales: As per contracted.

Terms/Buying: Various terms.

GOVERNMENT CONTRACTS AWARDED IN THE PAST

Date

GN No.

Particulars

Amount

05-03-1993

GN764

Tender for Supply of Vehicle Workshop Equipment for USD Hong Kong Vehicle Maintenance Depot

HK$53,683 (Jointly)

28-02-1997

GN1042

Supply of Brake Roller Testers

HK$1,211,250 C.I.F./Hong Kong including delivery and related services

FINANCIAL INFORMATION

Issued Share Capital: HK$2,000,000.00 (20,000 fully paid ordinary shares)

Profit or Loss: Business is profitable.

Condition: Keeping in an active manner.

Facilities: Making active use of general banking facilities.

Payment: Regular.

Commercial Morality: Good.

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

Bank of China (Hong Kong) Ltd., Hong Kong.

Standing: Good.

GENERAL

Founded in 1985, Rotary Engineering (Asia) Limited [REAL] was jointly owned by four engineers, namely, Mr. Mak Wai, holding 51% stake, Mr. Chiu Man Cho, holding 14%; Mr. Lee Siu Wah, 25% and Mr. Leung Chi Wai, 10%. Now, the subject is just jointly owned by Mr. Mak Wai, holding 90%, and Mr. Mak King Sau, holding 10%.

REAL is trading in the following equipment:

Garage Equipment (Car collison repair equipment, can lift, paint spraying booth, Car collison repair equipment, can lift, paint spraying booth, Car collison repair equipment, can lift, paint spraying booth), etc.

Prime markets are Hong Kong and China as well as Japan, South Korea, North America, Southeast Asia, Western Europe, etc.

According to REAL, it is the world’s leader in spray booths and garage equipment manufacturing industry. With over 30 years’ experience in this industry, REAL provides quality services and equipment with the latest technology.

REAL manufactures and exports custom made Spray Booths and automobile lifts along with a wide range of garage equipment in order to worldwide customers who have different applications.

The business is chiefly handled by the two shareholders. History in Hong Kong is over 32 years and nine months.

REAL operates from its own premises in Hong Kong.

On the whole, consider it good for normal credit requirements.

REMARKS

Property information of the company:-

Property Location	Owner	Date of Purchase	Purchased Price
Workshop Unit No. 6 on 11/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.	Rotary Engineering (Asia) Ltd.	n.a.	n.a.

(No mortgage record registered against the property)

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.27
UK Pound	1	INR 89.72
Euro	1	INR 79.52
HKD	1	INR 8.21

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	VIV

Report Prepared by :	TPT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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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.