MIRA INFORM REPORT

Report No. :	486001
Report Date :	25.01.2018

IDENTIFICATION DETAILS

Name :	XILICA AUDIO DESIGN (ASIA) LIMITED
Registered Office :	Room 14, 10/F., Kwai Cheong Centre, 50 Kwai Cheong Road, Kwai Chung, New Territories
Country :	Hongkong
Date of Incorporation :	22.06.2010
Com. Reg. No.:	52490023
Legal Form :	Private Limited Company.
Line of Business :	Importer, exporter and wholesaler of all kinds of audio products, car audio products, premium electronics.
No. of Employees :	6

RATING & COMMENTS

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

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
Hongkong	A1	A1

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

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 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 and address

XILICA AUDIO DESIGN (ASIA) LIMITED

ADDRESS: Room 14, 10/F., Kwai Cheong Centre, 50 Kwai Cheong Road, Kwai Chung, New

Territories, Hong Kong.

PHONE: 852-2604 9382

FAX: 852-2617 4699

E-MAIL: tim@xilica.com

MANAGEMENT

Managing Director: Mr. Cheung Kwok Tin

SUMMARY

Incorporated on: 22nd June, 2010.

Organization: Private Limited Company.

Issued Share Capital: HK$20,000.00

Business Category: Importer, Exporter and Wholesaler.

Employees: 6.

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

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

Room 14, 10/F., Kwai Cheong Centre, 50 Kwai Cheong Road, Kwai Chung, New Territories, Hong Kong.

Associated Companies:-

Golden Sound International Ltd., Hong Kong. (Same address)

Xilica Audio Design Ltd., Canada.

Zhuanshang (Guangzhou) Audio Co. Ltd., China.

BUSINESS REGISTRATION NUMBER

52490023

COMPANY FILE NUMBER

1471684

MANAGEMENT

Managing Director: Mr. Cheung Kwok Tin

ISSUED SHARE CAPITAL

HK$20,000.00

SHAREHOLDERS

(As per registry dated 22-06-2017)

Name		No. of shares
CHEUING Kwok Tin		18,000
TAM Man Hoi		2,000
		–––––––
	Total:	20,000 ======

DIRECTOR

(As per registry dated 22-06-2017)

Name (Nationality)	Address
CHEUNG Kwok Tin	Flat B, 37/F., Block 2, Ocean View, Ma On Shan, New Territories, Hong Kong.

SECRETARY

(As per registry dated 22-06-2017)

Name	Address
SHUM Oi Lin	Flat B, 37/F., Block 2, Ocean View, Ma On Shan, New Territories, Hong Kong.

HISTORY

The subject was incorporated on 22nd June, 2010 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: All kinds of audio products, car audio products, premium electronics.

Employees: 6.

Commodities Imported: China, other Asian countries, etc.

Markets: Japan, Other Asian countries, US, etc.

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

Terms/Buying: Various terms.

FINANCIAL INFORMATION

Issued Share Capital: HK$20,000.00

Profit or Loss: Made small profits in past years.

Condition: Keeping in a satisfactory manner.

Facilities: Making rather active use of general banking facilities.

Payment: Met trade commitments as required.

Commercial Morality: Satisfactory.

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

Standing: Normal.

GENERAL

Having issued 20,000 ordinary shares of HK$1.00 each, Xilica Audio Design (Asia) Limited is jointly owned by Mr. Cheuing Kwok Tin, holding 90% interests, and Mr. Tam Man Hoi, holding 10%. The former is also director of the subject.

The subject is trading in all kinds of audio products.

According to the subject, its head office is in Canada known as Xilica Audio Design Ltd. [Xilica], a Canada-registered company. The subject is trading in the products of Xilica.

Headquartered in Toronto, Xilica has been a prominent name in the development of class-leading configurable DSP systems since it was founded in 2002. Having garnered experience in various areas of pro-audio, including loudspeaker development, Xilica is engaged in designing, developing and manufacturing all kinds of audio systems.

In 2017, Xilica’s flagship offering includes: the Neutrino DSP family, whose products focus on time-efficient configuration; the Uno Series of pre-configured processors for fixed installation; the NeuPanel Series of intuitive remote control devices; and the Rio Series of Dante I/O interface devices. SolaroConsole, Xilica’s programming software, is taking the spotlight too as it continues to develop into a universal control platform for third-party products.

The products of Xilica are as follow:

· SolaroConsole;

· Neutrino;

· Uno;

· NeuPanel;

· Rio;

· XD Series;

· XP Series;

· XA Series; &

· Centro.

The products are widely used in the following venues:

· Corporate & Conference,

· Educational organizations,

· Houses of Worship,

· Hospitality & Dining,

· Performance Venues,

· Sporting & Recreation, etc.

The subject’s associated factory in China is known as Zhuanshang (Guangzhou) Audio Co. Ltd. [Zhuanshang] which was established in 1995. Currently it has about 250 employees. Its products are exported to Southeast Asia, Europe and North America. Zhuanshang is an ISO 9001 certified factory.

In Hong Kong, the subject’s business is chiefly handled by Cheung Kwok Tin. History is over seven years and seven months.

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.64
UK Pound	1	INR 89.32
Euro	1	INR 78.45
HKD	1	INR 8.13

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

INFORMATION DETAILS

Analysis Done by :	VIV
Report Prepared by :	NIT

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)

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.