MIRA INFORM REPORT

 

 

Report Date :

29.08.2013

 

IDENTIFICATION DETAILS

 

Name :

DEVI  RESOURCES  LTD.

 

 

Formerly Known As :

China Power & Resources Ltd

 

 

Registered Office :

Room 2305, 23/F., CCT Telecom Building, 11 Wo Shing Street, Fo Tan, Shatin, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

12.10.2009

 

 

Com. Reg. No.:

51273185

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Wholesaler and Re-exporter of Foodstuffs, chemicals, pharmaceuticals.

 

 

No. of Employees :

10.  (Including associate)

 

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

 

DEVI  RESOURCES  LTD.

 

 

Company ADDRESS

 

Room 2305, 23/F., CCT Telecom Building, 11 Wo Shing Street, Fo Tan, Shatin, New Territories, Hong Kong.

PHONE:            852-2679 0040,  2670 7851,  2679 0519,  2544 4068,  2690 3908

FAX:                 852-2639 5376,  2690 5201,  2687 5002,  2544 5568

E-MAIL:            devihkg@netvigator.com

accounting@devihkg.com

nanthakumar@devihkg.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Alwarpillai Nanthakumar

 

 

SUMMARY

 

Incorporated on:            12th October, 2009.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$10,000,000.00

Issued:             HK$8,000,000.00

 

Business Category:       Importer, Wholesaler and Re-exporter.

 

Employees:                  10.  (Including associate)

 

Main Dealing Banker:     Bank of India, Hong Kong Branch.

 

Banking Relation:          Satisfactory.


Company ADDRESS

 

Registered Head Office:-

Room 2305, 23/F., CCT Telecom Building, 11 Wo Shing Street, Fo Tan, Shatin, New Territories, Hong Kong.

 

Headquarters:-

Sri Lanka Office
125 Bank Shali Street, Colombo 11, Sri Lanka.
Tel:       9411-2432443, 2437453
Fax:      9411-2432444
E-mail:  devi@devi.wow.lk

 

China Office:-

Shenzhen Office
20B, Daxin Building, Bao’an South Road, Luohu District, Shenzhen, China.
Tel:       86-755-2557 9418
Fax:      86-755-8211 7558
E-mail:  devichina@szonline.net

 

Associated/Affiliated Companies:-

Advant Technologies Inc., India.

D Maritime Hong Kong Pvt. Ltd., Hong Kong.

Devi Mineral Resources (I) Pvt. Ltd., India.

Devi Trading Co. Ltd. (Jinxiang), China.

Devi Trading Co. Ltd., China.

Devi Trading Co. Ltd., Hong Kong.

Devi Trading Co. Ltd., Sri Lanka.

Devi Trading Co. Ltd., United Kingdom.

Devi Trading Co., Hong Kong.

Devi Trading Co., Sri Lanka.

Devi Trading Company, Hong Kong.

Devi Trading Inc., USA.

Smart Dragon Lanka Pvt. Ltd., Sri Lanka.

Somap (UK) Ltd., United Kingdom.

Xuzhou Elegant Food Grower Co. Ltd., China.

 

 

BUSINESS REGISTRATION NUMBER

 

51273185

 

 

COMPANY FILE NUMBER

 

1381065

 

MANAGEMENT

 

Managing Director:  Mr. Alwarpillai Nanthakumar

 

 

CAPITAL

 

Nominal Share Capital: HK$10,000,000.00 (Divided into 10,000,000 shares of HK$1.00 each)

Issued Share Capital:     HK$8,000,000.00

 

 

SHAREHOLDER  

(As per registry dated 12-10-2012)

Name

 

No. of shares

Nanthakumar ALWARPILLAI

 

8,000,000

=======

 

 

DIRECTOR

(As per registry dated 12-10-2012)

 

Name

(Nationality)

 

Address

Nanthakumar ALWARPILLAI

Flat E, 15/F., Block 5, Royal Ascot, 1 Tsun King Road, Shatin, New Territories, Hong Kong.

 

SECRETARY 

(As per registry dated 12-10-2012)

 

Name

Address

Co. No.

RJA Management Ltd.

Room A & B, 2/F., Lee Kee Commercial Building, 221-227 Queen’s Road, Central, Hong Kong.

1044456

 

 

HISTORY

 

The subject was incorporated on 12th October, 2009 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of China Power & Resources Ltd., name changed to the present style on 20th January, 2010.

 

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

 

OPERATIONS

 

Activities:                      Importer, Wholesaler and Re-exporter.

 

Lines:                           Foodstuffs, chemicals, pharmaceuticals.

 

Employees:                  10.  (Including associate)

 

Commodities Imported: Imported from India, Sri Lanka, etc.

 

Markets:                        Hong Kong, China, Pakistan, India, Sri Lanka, etc.

 

Terms/Sales:                 As per contracted.

 

Terms/Buying:                L/C, T/T and D/P.

 

 

MEMBERSHIP

 

The Indian Chamber of Commerce Hong Kong, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$10,000,000.00 (Divided into 10,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$8,000,000.00

 

Mortgage or Charge

(Since May 2013):          (See attachment)

 

Profit & Loss:               Business is profitable.

 

Condition:                     Keeping in a rather active condition.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments on time.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

·         Bank of India, Hong Kong Branch.

·         Bank of Baroda, Hong Kong Branch.

·         ICICI Bank Ltd., Hong Kong Branch.

 

Standing:  Normal.

 


GENERAL

 

Having issued 8 million ordinary shares of HK$1.00 each, Devi Resources Ltd. is wholly-owned by Mr. Nanthakumar Alwarpillai who is a Sri Lankan.  He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.  He is also the only director of the subject.

The subject has had an associated company Devi Trading Co. Ltd. [DTCL] which is also located at the same operating address.

The headquarters of DTCL are located in Colombo, Sri Lanka.

The subject and DTCL are engaged in the same lines of business, more or less.  Both of the firms belong to the Devi Group.

DTCL, the founding member of the Group was established in 1971 by Mr. A. Vengadasalam to create a global market, by linking trade of Iron ore, Steel, Agro, Chemicals and Pharmaceuticals.  Since then, it has built up a good reputation and global network extending to Asia, South America, Australia and New Zealand.

Devi Group is engaged in the following business scope:-

·         Agro Commodities;

·         Coke & Coal;

·         Minerals;

·         Oil & Gas;

·         Ship Chartering; &

·         Steel Products.

 

Currently, the subject is trading in the following commodities and offering clients with the following services:-

 

Product/Service

Product/Service Remarks

Food and Beverage

 

Sauce and Seasoning

 

Spice

Include cassia, StarAniseed (Exporter)

Include cassia, StarAniseed (Importer)

Sesame Seed

 

Raw Materials

 

Non-Ferrous Metal

 

Ferrous Metal

 

Minerals

Iron ore, chrome ore, maganese ore, mill scale, copper ore (Exporter)

Iron ore, chrome ore, maganese ore, mill scale, copper ore (Importer)

Agricultural Products, Livestock and Poultry

 

Fruits and Vegetables

Garlic, ginger, potato, onion (Importer)

Garlic, ginger, potato, onion (Exporter)

Chemicals (Including Plastic Materials)

 

Industrial Chemicals

 

Dyes

 

Coconut

 

Cinnamon

 

 

The subject’s commodities are mainly imported from India, Sri Lanka and Europe.  Principal markets are Hong Kong, China and other Asian countries such as Pakistan, Nepal, etc.  However, most of its products are re-exported to China and the other Asian countries.

DTCL has got some affiliated factories in Shenzhen Special Economic Zone, China.  The subject acquires finished products from these factories and re‑exports to India, Sri Lanka, Pakistan, Bangladesh, etc.

Currently, DTCL has set up three offices in China which are in Jinxiang, Shenzhen Special Economic Zone and Xuzhou.  Other overseas offices are in Sri Lanka and London of the United Kingdom.

The subject has got an associate Devi Trading Company which is also located at the operating address of the subject.  Founded in December 1994 and bearing the Business Registration No. 18706967, Devi Trading Company was solely founded and owned by Mr. Alwarpillai Nanthakumar.  It is engaged in the same lines of business as the subject.

The subject’s main office (hereinafter is referred to Devi) was set up in Sri Lanka in 1971 by Mr. A. Vengadasalam.  Devi is trading in iron ore, steel, agro, chemicals and pharmaceuticals.  Since then, it has built up a rather good business reputation and global network extending to Asia, South America, Australia and New Zealand serving its customers worldwide.  According to the subject, its business covers over 25 countries throughout the world.

D Maritime Hong Kong Pvt. Limited [D Maritime] is the chartering arm of the Devi Group.  It is a professional shipping company staffed by people with decades of experience in the industry and the London market.  It has a team of international dry cargo brokers in Europe and Asia.  It has established a good track record over the years and it has shown its professional expertise in its dealing with ship owners and operators.  D Maritime charters in vessels on Voyage or time charter and the group has chartered in over 350 vessels to date.

Now, the net turnover of Devi Group ranges from US$140 to 160 million.  Making good profits in some of the past years.

The subject is fully supported by the Devi Group.  The history of the subject in Hong Kong is over three years.

On the whole, consider it good for normal business engagements.

 

MORTGAGE OR CHARGE

(Since May 2013)

 

Date

Particulars

Amount

14-05-2013

Instrument:      Memorandum

Property:

Distinctive
No. of Receipts       Date of Issue         Amount           Due Date

91210300005553       14-05-2013     US$875,000.00     14-08-2013

Mortgagee:      Bank of Baroda, Hong Kong Branch.

Loan or credit or other facilities

12-07-2013

Instrument:      Debenture (Own/Third Party Debt)

Property:

The Company, as beneficial owner, charge to the Bank by way of a first floating charge.  all funds standing to the credit of the Chargor from time to time on any account with any bank or financial institution, including the collection account;

i)    The sum deposited by the chargor or for the chargor’s benefit in the savings and deposit account with the Bank.

ii)    All other sums in any currency from time to time standing to the credit of the chargor or the credit of any other person for the benefit of the chargor on any deposit or other account with the bank including additions to or renewals or replacements of such sums;

iii)   Any amount received by or for the account of the bank which the bank is under a duty to credit to the account but which the Bank has not yet credited to the accounts; and

iv)   Any interest and other accounts accrued or accruing on an amount covered by paragraphs to above whether or not the interest has been credited to that accounts

All choses in action and claims now and in the future belonging to the Chargor not otherwise charged or assigned by paragraphs above

Mortgagee:      ICICI Bank Ltd., Hong Kong Branch.

By way of continuing security for the due and punctual payment to the Bank

21-06-2013

Instrument:      Letter of Lien

Property:

Nature of Deposit:                     TDR                     TDR
Date of Deposit:                       30-10-2012           14-07-2013
Amount (US):                            $1,269,697,92       US$500,000.00
Due Date:                                 30-10-2013           14-07-2013
Rate of Interest:                        1.55%                  1.00%
Mode of Payment of Interest:    Maturity               Maturity

Mortgagee:      Bank of India, Hong Kong Branch.

US$7,000,000.00

21-06-2013

Instrument:      Charge and Hypothecation of Book Debts

Property:

Hypothecate and charge to the bank by way of charge on all the book debts outstanding, moneys receivable, claims and bills which are now due and owing or which may at any time hereafter during the continuance of this security become due and owing to the “Borrower” in the course of its business by any person, company or by the government or any local or public body or authority as security for the due payment to the bank at any time on demand at hong kong.

Mortgagee:      Bank of India, Hong Kong Branch.

US$7,000,000.00

21-06-2013

Instrument:      Hypothecation of Tangible Moveable Property

Property:

All tangible moveable assets of borrower including in particular stocks of all goods of diamonds, gem, precious stones, jewellery, gold, furniture and fixtures and plant and machinery, etc. wheresoever situate and/or in transit

Mortgagee:      Bank of India, Hong Kong Branch.

US$7,000,000.00

21-06-2013

Instrument:      General Letter of Hypothecation

Property:

Bills of exchange, and/or invoices, or any other documents representing or relating to goods

Mortgagee:      Bank of India, Hong Kong Branch.

All the money now granted by the Bank and the Company now owing to the Bank


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.68.36

UK Pound

1

Rs.106.03

Euro

1

Rs.91.47

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.