MIRA INFORM REPORT

 

 

Report Date :

23.08.2013

 

IDENTIFICATION DETAILS

 

Name :

HONG  KONG  POLYCHEM  COMPANY 

 

 

Registered Office :

Room 1002, 10/F., Wah Yuen Building, 149 Queen’s Road Central

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

18.08.2010

 

 

Com. Reg. No.:

50526298-001-03

 

 

Legal Form :

Sole Ownership

 

 

Line of Business :

Importer, Wholesaler and Re-exporter of Chemicals, household electric appliances, toys.

 

 

No. of Employees :

5

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

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 – 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 AND ADDRESS  

 

HONG  KONG  POLYCHEM  COMPANY

 

ADDRESS:                   Room 1002, 10/F., Wah Yuen Building, 149 Queen’s Road Central, Hong Kong.

 

PHONE:                        852-2541 2111

 

FAX:                             852-2854 1094

 

E-MAIL:                        appans@netvigator.com

 

 

MANAGEMENT   

 

Manager:  Mr. Lomesh Devdas Appan

 

 

SUMMARY

 

Establishment:              18th August, 2010.

 

Organization:                 Sole Ownership.

 

Capital:                         Provided by Sole Owner.

 

Business Category:       Importer, Wholesaler and Re-exporter.

 

Employees:                  5.  (Including associated companies)

 

Main Dealing Banker:     Indian Overseas Bank, Hong Kong Branch.

 

Banking Relation:          Satisfactory.

 

 

 

ADDRESS

 

Head Office:-

Room 1002, 10/F., Wah Yuen Building, 149 Queen’s Road Central, Hong Kong.

 

Parent Company:-

Hong Kong Polychem Co. Ltd., Hong Kong.  (Same address)

 

Associated Companies:-(Same address)

Appan & Appan Ltd., Hong Kong.  (Dissolved)

Fulbrook Company, Hong Kong.

Hongkong Polychem Company, Hong Kong.

 

BUSINESS REGISTRATION NUMBER

50526298-001-03

 

MANAGEMENT

Manager:  Mr. Lomesh Devdas Appan

 

SOLE OWNER

Hong Kong Polychem Co. Ltd.  (See attachment)

 

 

HISTORY

 

The subject was established on 18th August, 2010 as a sole ownership firm with Hong Kong Polychem Co. Ltd. as the proprietor under the Hong Kong Business Registration Regulations.

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

 

 

OPERATIONS

 

Activities:                      Importer, Wholesaler and Re-exporter.

 

Lines:                           Chemicals, household electric appliances, toys.

 

Employees:                  5.  (Including associated companies)

 

Commodities Imported: Imported from Europe, India, China, etc.

 

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

 

Terms/Sales:                 L/C or as per contracted.

 

Terms/Buying:               L/C, T/T, D/P, D/A, etc.

 

 

FINANCIAL INFORMATION

 

Capital:                         Provided by Sole Owner.

           

Profit & Loss:               Made small profits in the past three years.

 

Condition:                     Business is normal.

           

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

Banker:                         Indian Overseas Bank, Hong Kong Branch.

 

Standing:                      Small.

 

 

GENERAL

 

Hong Kong Polychem Company is a wholly-owned subsidiary of Hong Kong Polychem Co. Ltd. [HKPLC], a Hong Kong-registered firm located at the same address.  The subject was established in August 2010 and the Manager is Mr. Lomesh Devdas Appan who is an Indian.

The subject has had an associated company known as Hongkong Polychem Co. [HPC] located at the same address.  Established on 9th March, 1989, HPC was set up and owned by Mr. Lomesh Devdas Appan.  The subject and HPC are engaged in the same lines of business.

The subject is a commission agent dealing in chemicals which are chiefly imported from Europe, India, etc.  Prime markets are Hong Kong, China and the other Asian countries.  Business is normal.

Besides the subject, L. D. Appan is also operating HKPCL.  HKPLC is also engaged in the same lines of business as the subject.  HKPCL was incorporated on 30th March, 2009.  It is equally owned by L. D. Appan and Vasudev Devdas Appan.

L. D. Appan also operates another firm Fulbrook Co. [Fulbrook] which is also a Hong Kong-registered firm located at the same operating address.

Fulbrook is trading in toys, electric appliances, leather, and the other light industrial products.  Commodities are imported from China, India, and Canada.  Products are marketed in Hong Kong or re-exported to the other countries.

The parent of Fulbrook Appan & Appan Ltd. [A&A] was also located at the same address.  However, A&A has been dissolved by deregistration since 20th July, 2012.

The Appan family have been in Hong Kong for a very long time.

HKPCL has set up an office in India to facilitate the importation and exportation.  The Appan family has developed business ties with a number of firms, of which some are suppliers while some are buyers, in India.

The history of the subject in Hong Kong is just over three years.

The annual sales turnover of the Group ranges from HK$55 to HK$60 million.  Business has been active and steady.

On the whole, in view of the subject’s background and parentage, consider it good for normal business engagements in small credit amounts.

 

 

COMPANY NAME AND ADDRESS

 

HONG  KONG  POLYCHEM  CO.  LTD.

 

ADDRESS:       Room 1002, 10/F., Wah Yuen Building, 149 Queen’s Road Central, Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

50526298

 

 

COMPANY FILE NUMBER

 

1330056

 

 

DATE OF INCORPORATION

 

30th March, 2009

 

 

CAPITAL

 

Nominal Share Capital: HK$500,000.00 (Divided into 500,000 shares of HK$1.00 each)

Issued Share Capital: HK$500,000.00

 

 

SHAREHOLDERS

 

(As per registry dated 30-03-2013)

Name

 

No. of shares

Lomesh Devdas APPAN

 

250,000

Vasudev Devdas APPAN

 

250,000

 

 

–––––––

 

Total:

500,000

======

 

 

DIRECTORS  

(As per registry dated 30-03-2013)

Name

(Nationality)

 

Address

Vasudev Devdas APPAN

Room 1002, 10/F., Wah Yuen Building, 149 Queen’s Road Central, Hong Kong.

 

Lomesh Devdas APPAN

Room 1002, 10/F., Wah Yuen Building, 149 Queen’s Road Central, Hong Kong.

 

 

SECRETARY

(As per registry dated 30-03-2013)

Name

Address

Co. No.

Akin Professionals Ltd.

20/F., Champion Building, 287-291 Des Voeux Road Central, Hong Kong.

1273165

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 65.42

UK Pound

1

  Rs. 102.10

Euro

1

Rs. 87.32

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.