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Report Date : |
23.02.2013 |
IDENTIFICATION DETAILS
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Name : |
H&F IRONMAN LTD. |
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Registered Office : |
C/o Hyrux Investment & Management Ltd. Flat B, 8/F., Wing Cheung Industrial Building, 109 How Ming Street, Kwun Tong, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
20.12.2010. |
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Com. Reg. No.: |
53479666 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter of Iron ore, etc. |
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No. of Employees : |
Approx. 105. (As at 31-03-2012) (Group) |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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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 |
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Status : |
No Operating Office in Hong Kong |
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Payment Behaviour : |
Unknown |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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'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 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the 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 28 million in 2011, 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 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% 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. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. 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
H&F IRONMAN
LTD.
ADDRESS: c/o Hyrux Investment &
Management Ltd.
Flat B, 8/F., Wing Cheung Industrial
Building, 109 How Ming Street, Kwun Tong, Kowloon, Hong Kong.
PHONE: 2154 6998
FAX: 3007 4948
Managing Director: Mr. Ngai Shu
Kwong
Incorporated on: 20th
December, 2010.
Organization: Private
Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10,000.00
Business Category: Importer, Exporter.
Group Revenues: US$4,199,551 (Year ended 31-03-2012)
Group Employees: Approx.
105. (As at 31-03-2012)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
c/o Hyrux Investment & Management Ltd.
Flat B, 8/F., Wing Cheung Industrial Building, 109 How Ming Street, Kwun
Tong, Kowloon, Hong Kong.
Holding Company:-
India Globalization Capital Inc., USA.
Subsidiary:-
Linxi He Fei Economic & Trade Co. Ltd., China.
Associated Companies:-
IGC India Mining and Trading Private Ltd., India.
IGC Logistic Private Ltd., India.
IGC Materials Private Ltd., India.
India Globalization Capital, Mauritius, Ltd., Mauritius.
Linxi H&F Economic and Trade Co., China.
Techni Bharathi Ltd., India.
53479666
1542194
Managing Director: Mr. Ngai Shu
Kwong
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of
HK$1.00 each)
Issued Share Capital: HK$10,000.00
(As per registry dated 20-12-2012)
|
Name |
|
No. of shares |
|
India Globalization Capital Inc. 4336 Montgomery Avenue, Bethesda, MD 20841. |
|
10,000 ===== |
(As per registry dated 20-12-2012)
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Name (Nationality) |
Address |
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John Barnabas SELVARAJ |
12810 Eagle Creek Drive, Beltsville, MD 20705, USA. |
|
Ramachandra MUKUNDA |
8909 Tuckerman Lane, Potomac, Maryland, 20854, USA. |
|
NGAI Shu Kwong |
Flat 06, 25/F., Block O, 77 Ngau Tau Kok Road, Kowloon, Hong Kong. |
(As per registry dated 20-12-2012)
|
Name |
Address |
Co. No. |
|
Hyrux Investment & Management Ltd. |
Flat B, 8/F., Wing Cheung Industrial Building, 109 How Ming Street,
Kwun Tong, Kowloon, Hong Kong. |
0996074 |
The subject was incorporated on 20th December, 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.
Activities: Importer,
Exporter.
Lines: Iron
ore, etc.
Group Employees: Approx.
105. (As at 31-03-2012)
Commodities Imported: China, India, etc.
Markets: India,
etc.
Group Revenues: US$4,073,919 (Year
ended 31-03-2011)
US$4,199,551 (Year ended
31-03-2012)
Terms/Sales:
As per contracted.
Terms/Buying: Various
terms.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of
HK$1.00 each)
Issued Share Capital: HK$10,000.00
Group Net Income/(Loss) Attributable to
Shareholders:-
(US$20,240,907) (Year ended 31-03-2011)
(US$ 7,751,925)
(Year ended 31-03-2012)
Profit or Loss: Group made a great loss in 2011 & 2012.
Condition: Business
is not active in Hong Kong.
Facilities: Is
making use of general banking facilities.
Payment:
Met trade
commitments as required.
Commercial Morality: Satisfactory.
Banker:
The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Standing:
Small.
H&F Ironman Ltd. is a wholly-owned subsidiary of India Globalization
Capital Inc. [IGC/Company/Group] (NYSE MKT: IGC) which is a US-listed firm.
The subject does not have its own operating office. Its registered office is in a commercial
service firm located at Flat B, 8/F., Wing Cheung Industrial Building, 109 How
Ming Street, Kwun Tong, Kowloon, Hong Kong known as Hyrux Investment &
Management Ltd. which is handling its correspondences and documents. This firm is also the corporate secretary of
the subject.
The subject has no employees in Hong Kong.
Your given mobile phone number 852-6159 0007 belongs to the subject’s
director Mr. Ngai Shu Kwong who is a Hong Kong business man.
The subject belongs to the IGC Group.
It is a ‘Non-operating subsidiary’ of the Group.
The subject has had a 95% owned subsidiary Linxi He Fei Economic &
Trade Co. Ltd. which is in Chifeng, Inner Mongolia, China.
IGC, an infrastructure and materials company based in India, provides
materials to the fast growing infrastructure industry in China and India. The Company was incorporated in 2005 and is
based in Bethesda, Maryland with offices in Mauritius, Nagpur, Cochin, Delhi
and Bangalore. IGC offers strategic high
demand services including : 1) the export of iron ore to China and the resale
of iron ore to traders in India; 2) operations and supply of rock aggregate; 3)
civil construction of roads and highways; and 4) the construction and
maintenance of high temperature cement and steel plants. IGC’s present and past clients include
various Indian government organizations and steel mills in China. Including subsidiaries, IGC has approximately
251 employees and contractors worldwide.
The Company is focused on building out rock aggregate quarries,
expanding relations and export hubs for the export of iron ore to China, and
winning construction contracts.
IGC’s subsidiaries include IGC-India Mining & Trading, Private
Limited [IGC-IMT] a company located in Chennai engaged in the export of iron
ore to China, IGC Materials Private Limited. [IGC-MPL] a company located in
Nagpur that operates rock quarries and provides construction material to the
industry, Techni Bharathi Limited [TBL], a construction company located in
Kerala, IGC Logistics, Private Limited (IGC-LPL) a company that provides supply
side logistics.
IGC’s goals are to grow organically as well as acquire and grow
operating infrastructure businesses located in India.
IGC has four core competencies:-
On 30th December, 2011 IGC shareholders approved the acquisition of
Ironman. Ironman is engaged in the
processing and extraction of iron ore from sand and dirt at its beneficiation
plant on 2.2 square kilometres of hills in southwest LinXi in the autonomous
region of eastern Inner Mongolia.
PRC Ironman has audited revenues of approximately US$13.5 million and
approximately US$5.9 million in net after tax earnings for FYE March 31, 2011
and a good liquid balance sheet. In
addition to an immediate impact on earnings, this acquisition is able to
enhance its position in the materials business by creating a rapidly growing,
profitable iron ore business for IGC. PRC Ironman refines low-grade ore to
high-grade ore, which commands a higher price and margin in the market. Its strategy is to both mine and ship
low-grade ore to the refining facilities and through a beneficiation process
convert the ore to high-grade ore. Over
the next 24 months, IGC expects to expand this business rapidly through organic
growth. Additionally, there are great
values in this space which may provide additional opportunities for bolt-on
acquisitions.
For the year ended 31st March, 2012, the revenues of the Group amounted
to US$4.2 million (2011: US$4.1 million); loss attributable to shareholders
amounted to US$7.8 million as compared to a loss of US$20.2 million in 2011.
The subject is fully supported by IGC.
The subject’s business in Hong Kong is not active. History in Hong Kong is just over two years
and two months.
Since the subject does not have its own operating office and has no
employees in Hong Kong, consider it good for business engagements on L/C basis.
Brief introduction to the directors:-
Mr. Ramachandra MUKUNDA, aged 53, IGC’s founder, has served as our
Executive Chairman. Chief Executive
Officer and President since our inception on 29th April, 2005 and was Chairman
of the Board from 29th April, 2005 through 15th December, 2005. Since July 2010, Mr. Mukunda has been on
the board of directors of the BLA Power Private Ltd. Board, in Mumbai,
India. From January 1990 to May 2004,
Mr. Mukunda served as Founder, Chairman and Chief Executive Officer of Startec
Global Communications, an international telecommunications carrier focused on
providing voice over Internet protocol (VOIP) services to the emerging
economics. Startec was among the first
carriers to have a direct operating agreement with India for the provision of
telecom services. Mr. Mukunda was
responsible for the organizing, structuring and integrating a number of
companies owned by Startec. Many of
these companies provided strategic investments in India-based operations or
provided services to India-based companies.
Under Mr. Mukunda’s tenure at Startec, the company made an initial
public offering of its equity securities in 1997 and conducted a public
high-yield debt offering in 1998. From
June 1987 to January 1990, Mr. Mukunda served as Strategic Planning Advisor at
INTELSAT, a provider of satellite capacity.
Mr. Mukunda serves on Board of Visitors at the University of
Maryland, School of Engineering. From 2001-2003,
he was a Council Member at Harvard’s Kennedy School of Government, Belfer Centre
of Science and International Affairs.
Mr. Mukunda is the recipient of several awards, including the University
of Maryland’s 2001 Distinguished Engineering Alumnus Awards and the 1998 Ernest
& Young, LLP’s Entrepreneur of the Year Award. He holds B.S. degrees in electrical
engineering and mathematics and a M.S. in Engineering from the University of
Maryland. Mr. Mukunda has travelled
extensively through India and has conducted business in India and China for
more than 20 years. He has more than 15 years
of experience managing a publicly held company, has acquired and integrated
more than 18 companies, and is an engineer by training. His in-depth business experience in India,
his knowledge of U.S. capital markets and his engineering background make him a
highly effective board member.
Mr. John Barnabas SELVARAJ, aged 68, has served as our Treasurer and
Principal Financial and Accounting Officer since 27th November, 2006. From 15th November, 1997 to 10th August,
2007, Mr. Selvaraj served in various capacities with Startec, Inc., including
from January 2001 to April 2006 as Vice President of Finance and Accounting
where he was responsible for SEC reporting and international subsidiary
consolidation. Prior to joining Startec,
from July 1984 to December 1994, Mr. Selvaraj served as the Chief Financial and
Administration Officer for the US office of the European Union. In 1969, Mr. Selvaraj received a BBA in
Accounting from Spicer Memorial College India, and an Executive MBA, in 1993,
from Averette University, Virginia. Mr.
Selvaraj is a Charted Account (CA, 1971).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.43 |
|
|
1 |
Rs.83.20 |
|
Euro |
1 |
Rs.71.91 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.