MIRA INFORM REPORT

 

 

Report Date :

16.01.2013

 

IDENTIFICATION DETAILS

 

Name :

APPLE  COMMODITIES  LTD.

 

 

Registered Office :

Unit 1113A & 1115, 11/F., Grand Millennium Plaza, Cosco Tower, 183 Queen’s Road Central, Wanchai

 

 

Country :

Hong Kong.

 

 

Date of Incorporation :

27.03.2009

 

 

Com. Reg. No.:

50498061

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of Steel, coal, construction materials, etc.

 

 

No. of Employees :

10.

 

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 :

Good

Payment Behaviour :

Regular

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

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'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


Company name and address

 

APPLE  COMMODITIES  LTD.

 

 

ADDRESS:       Unit 1113A & 1115, 11/F., Grand Millennium Plaza, Cosco Tower, 183 Queen’s Road Central, Wanchai, Hong Kong.

 

PHONE:                        2850 5799

 

FAX:                 2821 2301

 

E-MAIL:                        hkg@applegroup.co.in

 

 

MANAGEMENT

 

Managing Director:  Mr. Ashish Narendra Garg

 

 

SUMMARY

 

Incorporated on:             27th March, 2009.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$193,750,000.00

Issued:              HK$193,750,000.00

 

Business Category:        Importer, Exporter and Wholesaler.

 

Employees:                   10.

 

Main Dealing Banker:     Punjab National Bank, Hong Kong.

 

Banking Relation:           Satisfactory.


ADDRESS

 

Registered Office:-

Unit 1113A & 1115, 11/F., Grand Millennium Plaza, Cosco Tower, 183 Queen’s Road Central, Wanchai, Hong Kong.

 

Holding Company:-

Apple Commodities Pvt. Ltd., India.

 

Subsidiary & Associated Companies:-

Apple Group of Companies

Apple Alloys Pvt. Ltd., India.

Apple Buildtech Ltd., India.

Apple Carbon Pvt. Ltd., India.

Apple Industries Ltd., India.

Apple Insurance Brokers Pvt. Ltd., India.

Apple Minerals Pvt. Ltd., India.

Apple Nature Resources Pvt. Ltd., India.

Apple Power Ltd., India.

Apple Rolling Mills Pvt. Ltd., India.

Apple Sponge & Power Ltd., India.

P.T. Apple Coal, Indonesia.

Pacific Mining Products Pvt. Ltd., India.

Promart Retail India Pvt. Ltd., India.

Zync Global Pvt. Ltd., India.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

50498061

 

 

COMPANY FILE NUMBER

 

1328343

 

 

MANAGEMENT

 

Managing Director:  Mr. Ashish Narendra Garg

 

 


CAPITAL

 

Nominal Share Capital: HK$193,750,000.00 (Divided into 193,750,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$193,750,000.00

 

 

SHAREHOLDER

(As per registry dated 31-03-2012)

 

Name

 

No. of share

Apple Commodities Pvt. Ltd.

B-16, Sector-2, Noida 201301, Uttar Pradesh, India.

 

193,750,000

=========

 

 

DIRECTORS

(As per registry dated 27-03-2012)

 

Name

(Nationality)

 

Address

Ankit GARG

10-A, New Mandi, Muzaffarnagar, U.P., India.

 

Ashish Narendra GARG

F-22, Model Town II, Delhi-110009, India.

 

Nischal JAIN

P-62, South Extn-II, New Delhi-110049, India.

 

 

SECRETARY

(As per registry dated 16-07-2012)

 

Name

Address

Co. No.

HKBSS Ltd.

5/F., Far East Consortium Building, 121 Des Voeux Road Central, Hong Kong.

0838155

 

 

HISTORY

 

The subject was incorporated on 27th March, 2009 as a private limited liability company under the Hong Kong Companies Ordinance.

The subject does not have its own operating address.  Formerly, its operating address was located at 21/F., ICBC Tower, Citibank Plaza, 3 Garden Road, Central, Hong Kong where is the operating address of a commercial service provider Regus Business Services (HK) Ltd. [Regus].  Regus moved to 2/F., Shui On Centre, 6-8 Harbour Road, Wanchai, Hong Kong in 2011, so did the subject.  The subject moved to the present address in October 2011.

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

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           Steel, coal, construction materials, etc.

 

Employees:                   10.

 

Commodities Imported:   China, Indonesia, etc.

           

Markets:                       India, other Asian countries, etc.

 

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

 

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

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$193,750,000.00 (Divided into 193,750,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$193,750,000.00

 

Alternation of Capital:-

Initially

paid up

HK$  31,200,000.00

16-03-2011

paid up

HK$  46,300,000.00

31-03-1012

paid up

HK$116,250,000.00

 

 

––––––––––––––––

Total:

paid up

HK$      193,750,000.00

==============

 

Increase of Nominal Capital:-

From

HK$31,200,000.00

to

HK$  77,500,000.00

on

16-03-2011

From

HK$77,500,000.00

to

HK$193,750,000.00

on

31-03-2012

 

Mortgage or Charge:       (See attachment)

 

Profit or Loss:                Made a small profit in the past two years.

 

Condition:                      Business is normal.

 

Facilities:                      Is making rather active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.


 

Bankers:-

Indian Overseas Bank, Hong Kong Branch.

Bank of Baroda, Hong Kong Branch.

Punjab National Bank, Hong Kong.

 

Standing:  Normal.

 

 

GENERAL

 

Originally had issued 77.5 million ordinary shares of HK$1.00 each, Apple Commodities Ltd. is wholly owned by Apple Commodities Private Ltd. which is an India-based firm.  Now its issued share capital was increased to HK$193.75 million in March 2012.

The subject’s operating address has moved to Unit 1113A & 1115, 11/F., Grand Millennium Plaza, Cosco Tower, 183 Queen’s Road Central, Hong Kong.

The subject is a member of the Apple Group of Companies which is one of the leading conglomerates of India and is also establishing its footholds in other parts of the world.  It focuses on trading various forms of Iron & Steel, Coal & Iron Ore.

The subject has its wholly-owned subsidiary in Hong Kong which has acquired a large Coal Concession in South of Sumatra & East Kalimantan, Indonesia.  The Coal mine has 200 million ton of reserves which is Steam Grade Coal.

The Group is engaged in diversified economy such as steel, coal, iron ore, mining, insurance, power & energy, commodities trading, activated carbon, etc.  The Group is also engaged in building and construction, technology transference, retailing, real estate investment, etc.

Now, the network of the Group covers India, China, Hong Kong, Indonesia, Africa, etc.

The Group’s headquarter is situated in the satellite city Noida (also known as New Okhla Industrial Development Authority), Uttar Pradesh, which falls under the National Capital Region of India.  It has a state-of-the-art infrastructure and all other latest amenities required at its office.

The subject owns coal mines in the South Sumatra, Indonesia and is running concession in the East and South Kalimantan area under joint co-operation.  The subject has acquired 2 different concessions in Kalimantan area of non‑coking steam coal which have total reserves of over 30 million metric tons.  Its quality ranges from 5800/5600 Kcal/Kg upto 6700/6500 Kcal GCV.  The subject follows international standards as set by SCOTA for contractual specifications of coal.

The subject has already started mining and is expecting to achieve a turnover of US$140 to 150 million annually.  It is planning to acquire coal mines in Indonesia and increase its production capacity to 3 million metric tons per annum.

The Apple Group is engaged in international trade, construction, manufacturing and other lines of businesses.  The Group comprises of eight companies which operates in different sectors such as steel, coal, construction, insurance, power and energy, commodities trading, etc.  Its offices, factories and other assets are located in different parts of India, China and Indonesia.  The Group is looking forward to expand further with more projects and acquisitions in the pipeline.

PT Apple Coal [Apple Coal], established to support the subject on its trading business, is now shipping 450 to 500,000 tons of coal a month to main markets of China and India.  Now, Apple Coal has 45,000 hectares of coal mines in Indonesia.

Operating as a subsidiary of the subject in Hong Kong, Apple Coal provides mining support and commodity trading services to its parent company’s nine mines – six of which are 100% owned by the subject.

In 2011, it traded 2.8 million tons of coal and targeting 4.5 million tons in 2012.


The subject’s business in Hong Kong is good.  History is over three years and nine months.

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

 

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

31-07-2009

Instrument:        Undertaking Relating to Deposits

Property:

Distinctive No. of Receipt:           2009 FD 136 1
Date of Receipt: 31-07-2009
Amount of Deposit:        US$1,000,000.00
Rate of Interest: 1.50%
Maturity Date on Receipt:           27-01-2010

Mortgagee:        Indian Overseas Bank, Hong Kong Branch.

All liabilities

28-09-2009

Instrument:        Charge

Property:

1)         By way of first fixed charge the Debts and Inventory

2)         By way of first fixed charge the Account and all monies standing to the credit of the Account

3)         By way of first floating charge its undertaking and all its property, assets and rights

Mortgagee:        Bank of Baroda, Hong Kong Branch.

As a continuing security for the payment and discharge of the Secured Obligations

09-10-2009

Instrument:        Memorandum

Property:

Distinctive
No. of Receipts  Date of Issue     Amount Due Date

91210300003418            28-09-2009        US$700,000.00  29-03-2010
91210300003461            09-10-2009        US$200,000.00  09-04-2010

Mortgagee:        Bank of Baroda, Hong Kong Branch.

Loan or credit or other facilities

08-02-2012

Instrument:        Escrow Account Agreement

Property:

Property Mortgaged “Deposit” “Relevant Account” “Deposit Assets” “Encumbrances” “Receivables” “Coal Mine”

Mortgagee:        Bank of Baroda, Hong Kong Branch.

moneys, obligations and laibilities

08-02-2012

Instrument:        Share Charge

Property:

Property Mortgaged

Charge payment of all principal, interest

“Charged Property” means all dividends, stocks, shares, warrants, securities, rights, monies or other property. Further Shares the beneficial or registered owner of any shares of the Company

Mortgagee:        Punjab National Bank, Hong Kong Branch.

moneys, obligations and laibilities

08-02-2012

Instrument:        Share Charge

Property:

Property Mortgaged or Charge

the Chargor, as beneficial and registered owner,

the Chargor, as beneficial owner and registered owner, hereby charges to the Bank by way of first floating charge the Charged Property

Further Shares

Immediately upon its becoming the benefical or registered owner of any shares of the Company

Security means the charge and security created or intended to be created by this Share Charge.

Mortgagee:        Bank of Baroda, Hong Kong Branch.

Secured Obligations means:- all moneys, obligations and liabilities

02-11-2012

Instrument:        Charge On Deposit to secure The Depositor’s Obligations

Property:

Account Number: 7141001050, 7141001051, 7141001055, 7141001071 and 7141001412

A sum of US$953,314.01 + US$1,209,981.29 + US$826,897.50 + US$28,289.07 + US$2,500,000 currently represented or evidenced by a certificate of deposit dated 29-04-2012, 29-04-2012, 04-11-2011, 13-05-2012 & 02-08-2012 respectively.

Mortgagee:        Punjab National Bank, Hong Kong.

As a continuing security for the payment and discharge of the Secured Obligations.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.54

UK Pound

1

Rs.87.69

Euro

1

Rs.72.85

 

 

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%)

 

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.