MIRA INFORM REPORT

 

 

Report Date :

03.08.2013

 

IDENTIFICATION DETAILS

 

Name :

WESTFORD  TRADE  SERVICES  LTD.

 

 

Registered Office :

c/o Excellent Corporate Services Ltd.

Suite 1222, 12/F., Leighton Centre, 77 Leighton Road, Causeway Bay, Hong Kong

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

21.04.2009

 

 

Com. Reg. No.:

50591223

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Iron & Steel Trader (Scrap metals, iron & steel, iron ore)

 

 

No. of Employees :

No Employees in Hong Kong

 

(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 :

Ca

 

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 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

 Hong Kong

A2

A2

 

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 levies excise duties on only four commodities, namely: 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, it again faces a possible slowdown as exports to the Euro zone and US slump. 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 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous year. 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 exports 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 34.9 million in 2012, 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 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% 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. Growth slowed to 5% in 2011, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. 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.

 

Source : CIA

 

 


 

Company name & address

                                                                                    

WESTFORD  TRADE  SERVICES  LTD.

 

 

ADDRESS:             c/o Excellent Corporate Services Ltd.

Suite 1222, 12/F., Leighton Centre, 77 Leighton Road, Causeway Bay, Hong Kong.

 

PHONE:                  852-3465 6939

 

FAX:                       852-2881 8766

 

 

 

MANAGEMENT

 

Managing Director:  Mr. Anthony Robert Mushens

 

 

 

SUMMARY

 

Incorporated on:                        21st April, 2009.

 

Organization:                             Private Limited Company.

 

Capital:                                     Nominal:  HK$10,000.00 & US$5,714,285.00

                                           Issued:    US$4,310,959.00

 

Business Category:                   Iron & Steel Trader.

 

Annual Turnover:                      US$200-250 million.

 

Employees:                              Nil.

 

Main Dealing Banker:               Natixis, Hong Kong Branch.

 

Banking Relation:                     Satisfactory.


 

 

ADDRESS

 

Registered Office:-

c/o Excellent Corporate Services Ltd.

Suite 1222, 12/F., Leighton Centre, 77 Leighton Road, Causeway Bay, Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

50591223

 

 

COMPANY FILE NUMBER

 

1333544

 

 

MANAGEMENT

 

Managing Director:  Mr. Anthony Robert Mushens

 

 

CAPITAL

 

Nominal Share Capital           : HK$10,000.00 & US$5,714,285.00 (Divided into 1,000 Class A Ordinary shares                                       of HK$10.00 each and 5,714,285 Class B Ordinary shares of US$1.00 each)

 

 

Issued Share Capital: $US$4,310,959.00

 

 

SHAREHOLDERS

(As per registry dated 21-04-2013)

Name

 

No. of shares

 

 

Class B

Westford Investments Ltd., Hong Kong.

 

2,000,000

CWT International Pte. Ltd.

38 Tanjong Penjuru, Singapore 609039.

 

2,000,000

Elmener HANDE

 

176,757

Cigdem Caliskan

 

51,505

Arzu Tanriverdi

 

51,505

John Appel NICHOLAS

 

31,192

 

 

––––––––

 

Total:

4,310,959

=======

 

 

DIRECTORS

(As per registry dated 21-04-2013)

Name

(Nationality)

 

Address

Anthony Robert MUSHENS

3 Coventry Close, London, E6 5QT, U.K.

 

Elmener HANDE

Cornelis De Wittlaan 43, 2582 AC The Hague, The Netherlands.

 

LOI Pok Yen

46 Penjuru Lane, Singapore 609206.

 

David Henry MOGFORD

Flat 1, Grosvenor House, 52 Victoria Road, St. Peter Port, Guernsey, GY1 1HY, U.K.

 

Adam SLATER

61 Grove Drive, 279101 Singapore.

 

 

SECRETARY 

(As per registry dated 21-04-2013)

 

Name

Address

LAM Kwai Ming

Flat D, 9/F., Block 4, Well On Garden, 9 Yuk Nga Lane, Tseung Kwan O, New Territories, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 21st April, 2009 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the registered address of the subject was located at 1/F., Sunning Plaza, 10 Hysan Avenue, Causeway Bay, Hong Kong where was the old operating address of a commercial service provider Excellent Corporate Services Ltd. [ECSL].  ECSL moved to the present address in December 2012, so did the subject.

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

 

OPERATIONS

 

Activities:                                   Iron & Steel Trader.

 

Lines:                                          Scrap metals, iron & steel, iron ore, etc.

                                   

Employees:                                 Nil.

 

Commodities Imported:                India, other Asian countries, South America, etc.

 

Markets:                                       China, other Asian countries, Europe, etc.

 

Annual Turnover:                          US$200-250 million.

 

Terms/Sales:                               As per contracted.

 

Terms/Buying:                             Various terms.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital       : HK$10,000.00 & US$5,714,285.00 (Divided into 1,000 Class A Ordinary shares of

                                          HK$10.00 each and 5,714,285 Class B Ordinary shares of US$1.00 each)

                             

Issued Share Capital         : $US$4,310,959.00

 

Mortgage or Charge                      :  (See attachment)

 

Profit or Loss                    :  Keeping a balance account in Hong Kong.

 

Condition                          : Business is not active in Hong Kong.

 

Facilities                           : Making fairly active use of general banking facilities.

 

Payment                           :  Met trade commitments as required.

 

Commercial Morality           :  Satisfactory.

 

Banker                               :  Natixis, Hong Kong Branch.

 

Standing                            :  Small.

 

 

 

 

 

GENERAL

 

Having issued 4,310,959 ordinary shares of US$1.00 each, Westford Trade Services Ltd. is chiefly held by Westford Investments Ltd. [Westford Investments], a Hong Kong-registered firm holding 46.4% interests, and CWT International Pte. Ltd. [CWT International], a Singapore‑based firm also holding 46.4%.  The balance 7.2% is jointly owned by three Turkey companies and Mr. John Appel Nicholas.

The subject does not have its own operating office.  Its registered office is in a commercial service firm located at “Suite 1222, 12/F., Leighton Centre, 77 Leighton Road, Causeway Bay, Hong Kong” known as “Excellent Corporate Services Ltd.” which is handling its correspondences and documents.

The subject has no employees in Hong Kong.  Its main office is in Singapore.  It is a specialist provider of trade solutions for businesses throughout the world – ranging from conventional trade transactions and supply chain services to structured trade solutions that may require integrated logistics expertise also offered by one of its partner companies.

The subject buys and sells goods on behalf of its customers utilising traditional trade finance facilities, using its own balance sheets and its banking finance facilities.

The subject, through its relationship with the CWT Group of Singapore - a Global Logistics provider and, in particular, its subsidiary CWT Commodities -- has access to freight solutions, warehousing, stock management and all the tools that enable financing structures to be created.  Because of the expertise of its experienced personnel, the subject also enjoys support from other major international logistics groups.

The subject has had close business ties with Steelinvest Group [Steelinvest / Group] which is trading in steel materials.  Steelinvest, an associated company of the subject, is one of the principal suppliers of it.

The subject is chiefly trading in the following commodities:-

Scrap metals, iron & steel, iron ore, etc.

Scrap Metal is imported by the subject’s customers.  The subject establishes purchase contract with suppliers.  It establishes back-to-back sales contract with its clients, the importers.  The subject pays supplier 95% of contract value at ship’s arrival against the requisite documentation and the balance after inspection and weighing.  Its client, the importer, pays it a 10% advance payment and the 90% balance at arrival date + 120 open account against draft acceptance.

Now, the subject has set up hub offices in Istanbul, London, Dubai and New York, with satellite offices throughout the rest of the world.

In 2011, the turnover of the subject was over US$230 million.  Now, its annual sales turnover ranges from US$200 to 250 million.  Business is active.

The subjec has had offices in Istanbul, London, Dubai, Singapore and New York with satellite offices throughout the rest of the world.  It is able to serve clients in Europe, CIS, Africa, the Middle East and Asia.

In recent years, the subject has got investments from its investment holding arm, CWT International, to provide trade finance services.

Established in April 2009, the subject focuses in trade finance services, leveraging on its strong in-house banking expertise and close connections with traders, stockists and manufacturers.  With a team of qualified bankers in structured trade finance, the subject undertakes transactions in secured structure for a selected range of product sectors.

The subject’s business in Hong Kong is not active.  History in Hong Kong is just over four years.

Since the subject does not have its own operating office and has no employees in Hong Kong, on the whole, consider it good for business engagements on L/C basis.

 

REMARKS

 

Brief personal history of the directors of the subject:-

David Mogford Chairman and founding partner

David gained his degree from the University of Cambridge.  His career started in the 1970’s for Steel Trading where he was based in Karachi, Pakistan for 5 years.  He later became Managing Director of Stemcor UK Ltd., where after, he traded steel on behalf of Uvisco.

In 2002, after 27 years of being immersed in steel trading for other companies, he started SteelInvest and more recently in 2009 the subject.

In addition to being current Chairman of the subject, David also continues to manage SteelInvest (Jersey) Ltd. on a full time basis.

Hande Elmener BA Econ, MBA. CEO and founding partner

Hande graduated from Bogazici University, Istanbul with a degree in Economics in 1996.

She completed an Executive MBA at Erasmus RSM, Rotterdam in 2002.

Hande started her working career at Garantibank International NV in Amsterdam within the Financial Institutions division in 1997.  After 5 years, having been promoted to Vice President, she moved across to their Trade and Commodity Finance division gaining significant experience in this arena.

In 2005 she was offered the position as Trade Finance Manager at Steelinvest Group, a sister company of the subject and in 2009 became the CEO and founding partner of the subject.

 


MORTGAGE OR CHARGE

 

Date

Particulars

Amount

25-03-2011

Instrument:      Trade Finance Security Agreement

Property:

1.   Assignment of Moneys and Receivables and Insurances

2.   Pledge and Hypothecation of Goods and Documents

Mortgagee:      BNP Paribas (Suisse) SA
2, Place de Hollande, 1204 Geneva, Switzerland.

All money

14-12-2011

Instrument:      Master Security Agreement

Property:

1. Charges by way of first fixed charge all the Company’s right, title and interest from time to time under, in and to, the Documents, the Goods, the Proceeds and the Credit Balances;

2. Assigns to the Bank by way of first fixed security all Contract Rights and the benefit of any encumbrance, guarantee and securities for the time being held by the Company in respect of any such Contract Rights;

3. Charges by way of first floating charge, the whole of the Charged Property other than any part of the Charged Property validly and effectively charged or assigned

Mortgagee:      Natixis, Hong Kong Branch.

Banking facilities or other financial accommodation granted by NATIXIS, Hong Kong Branch

14-12-2011

Instrument:      Power of Attorney / Security Letter

Property:

Assign to the Bank all the Customer’s present and future rights, title and interest and benefit to and in all and any moneys of the Master Credits

Mortgagee:      Natixis, Hong Kong Branch.

Credit banking facilities or other accommodation

14-12-2011

Instrument:      Charge Over Deposit

Property:

By way of fixed charge, and assigns and releases to the Bank of the Deposit and all its rights, titles, interests and benefits

Account Number:
1)     458372-USD-253000200

2)   2458372100-USD

Mortgagee:      Natixis, Hong Kong Branch.

Banking facilities or other financial accommodation granted by NATIXIS, Hong Kong Branch

 

 

 

 

 

 

 

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.60.80

UK Pound

1

Rs.91.95

Euro

1

Rs.80.36

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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%)

 

 

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.