MIRA INFORM REPORT

 

 

Report Date :

22.03.2013

 

IDENTIFICATION DETAILS

 

Name :

SYNERGY  RESOURCES  HK  LTD.

 

 

Registered Office :

c/o Asia Business Service Ltd., Unit 1010, 10/F., Miramar Tower, 132 Nathan Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong 

 

 

Date of Incorporation :

03.10.2007

 

 

Com. Reg. No.:

38537647

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer and Exporter of Iron ore, Steel, Coal, etc.

 

 

No. of Employees :

Not available 

 

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 :

Usually Correct 

 

 

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

(31.03.2012)

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

 

SYNERGY  RESOURCES  HK  LTD.

 

 

Company ADDRESS

 

c/o Asia Business Service Ltd.

Unit 1010, 10/F., Miramar Tower, 132 Nathan Road, Tsimshatsui, Kowloon, Hong Kong.

PHONE:            8102 2592

FAX:                 8102 2593

 

MANAGEMENT

 

Managing Director:  Mr. Sachin Sehgal

 

 

SUMMARY

 

Incorporated on:             3rd October, 2007.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$10,000.00

Issued:              HK$10,000.00

 

Business Category:        Importer and Exporter.

 

Employees:                   Nil.

 

Main Dealing Banker:     Standard Bank Asia Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.


Company ADDRESS

 

Registered Office:-

c/o Asia Business Service Ltd.

Unit 1010, 10/F., Miramar Tower, 132 Nathan Road, Tsimshatsui, Kowloon, Hong Kong.

 

Associated Companies:-

OreTeam Exim Pvt. Ltd., India.

OreTeam India Pvt. Ltd., India.

Synergy (Shanghai) Trading Co. Ltd.

Suite 1508, The North Block 1, Changfeng Commercial Building, 106 Zhongjiang Road, Shanghai-200062, China.

[Tel: 86-21-3255 2250;   Fax: 86-21-3255 2251

E-mail:  asuna@srl.hk ]

 

 

BUSINESS REGISTRATION NUMBER

 

38537647

 

 

COMPANY FILE NUMBER

 

1171995

 

 

MANAGEMENT

 

Managing Director:  Mr. Sachin Sehgal

 

 

CAPITAL

 

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

Issued Share Capital:     HK$10,000.00

 

 

SHAREHOLDERS

(As per registry dated 03-10-2012)

 

Name

 

No. of shares

Sachin SEHGAL

 

5,000

Amit Kumar JEJANI

 

5,000

 

 

––––––

 

Total:

10,000

=====

 

 

DIRECTORS

(As per registry dated 03-10-2012)

 

Name

(Nationality)

 

Address

Sachin SEHGAL

Room 501, Building 6, Yanlord Riverside Garden, 388 Furong Jiang Lu, Shanghai 200051, China.

 

Amit Kumar JEJANI

Room 2001, Building 20, Yanlord Riverside Garden, 388 Furong Jiang Lu, Shanghai 20051, China.

 

 

SECRETARY 

(As per registry dated 03-10-2012)

 

Name

Address

Co. No.

Asia Business Service Ltd.

Unit 1010, 10/F., Miramar Tower, 132 Nathan Road, Tsimshatsui, Kowloon, Hong Kong.

0871994

 

 

HISTORY

 

The subject was incorporated on 3rd October, 2007 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Formerly the subject was located at Room 813, 8/F., Hollywood Plaza, 610 Nathan Road, Hong Kong where was the operating office of Asia Business Service Ltd.  Its registered has moved to the present address in late 2011 where is also an office of Asia Business Service Ltd.

 

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

 

 

OPERATIONS

 

Activities:                      Importer and Exporter.

 

Lines:                           Iron ore, Steel, Coal, etc.

 

Employees:                   Nil.

 

Commodities Imported:   India, Brazil, Australia, etc.

 

Markets:                       China, etc.

 

Terms/Sales:                  As per contracted.

 

Terms/Buying:               Various terms.

 

 

FINANCIAL INFORMATION

 

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

 

Issued Share Capital: HK$10,000.00

 

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.

 

Bankers:-

Standard Bank Asia Ltd., Hong Kong.

United Overseas Bank Ltd., Hong Kong Branch.

 

Standing:  Small.

 

 

GENERAL

 

Having issued 10,000 ordinary shares of HK$1.00 each, Synergy Resources HK Ltd. is equally owned by Mr. Sachin Sehgal and Mr. Amit Kumar Jajani, both of whom are Indian.  They are India passport holders and do not have the right to reside in Hong Kong permanently.  They are also the directors of the subject.  Currently, the two directors are in Shanghai, China.

The subject does not have its own operating office.  Its registered office is in a commercial service firm located at Unit 1010, 10/F., Miramar Tower, 132 Nathan Road, Tsimshatsui, Kowloon, Hong Kong known as Asia Business Service 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.

The subject in fact is a member of the OreTeam Group which is an India-based companies. 


The Group has had the following three firms in India and China:-

·         OreTeam Exim Pvt. Ltd., India;

·         OreTeam India Pvt. Ltd., India; &

·         Synergy (Shanghai) Trading Co. Ltd. [Synergy Shanghai], China.

 

The subject is trading in iron ore, ferrous powder, steel, coal, etc.  Commodities are chiefly imported from India, Brazil, Australia, etc.  The subject’s associated company Synergy Shanghai currently is administered by the subject’s directors.

Synergy Shanghai is a premier trading house based in Shanghai, China having expertise in iron ore supply chain management and is in the process of building similar capabilities in Fertilizers and Gypsum for supply to Indian sub-continent.  This company achieved US$150 mllion in revenue in 2011 and had predicted to reach US$250 million revenue in 2012.  However, it fell to the ground in 2012 which just got US$120 million revenue, decreased by 20% as compared with 2011.  This might be due to the fluctuation of the exchange rate of RMB and the uncertain demand of its commodities in China.

According to Synergy Shanghai, in spite of turbulent business environment in bulk commodities in 2012, it maintained healthy margin in trading operations.  In the years ahead, it is still optimistic in its business.

OreTeam is a renowned Information and Research company in India providing in-depth coverage on Indian Iron ore and Steel Industry.  Its clients include the world’s mining majors incl BHP, Rio, Anglo American, VALE, POSCO and Vedanta Group.

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

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

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

23-04-2009

Instrument:      Trade Finance Security Deed (the Deed)

Property:

All assets from time to time charged or assigned (a) assigns and agrees to assign absolutely to the Bank all the present and future rights, title, interests and benefits of the Borrower in and to the following assets: (i) the Export Credits; (ii) the Export Collection Bills; (iii) the Contracts; (iv) the Invoice Receivables; (v) the Trade Documents; (vi) the Insurances; and (vii) all claims, remedies and proceeds in connection with any of the foregoing; (b) charges and agrees to charge to the Bank of the Borrower to the following assets: (i) the Goods together with their proceeds; and (ii) the Charged Account and all monies at any time standing to the credit of the Charged Account, including all interest from time to time accrued or accruing on such monies; and (c) pledges and agrees to pledge to the Bank the Pledged Goods and the Trade Documents which are every Borrower’s account maintained in the name of the Borrower with the Bank at the date of the Deed or may in the future be in the Bank’s possession.

Mortgagee:      Standard Bank Plc.
Cannon Bridge House, 25 Dowgate Hill, London EC4R 2SB, England.

All obligations and liabilities of whatever nature of the Borrower to the Bank

17-11-2010

Instrument:      Addendum to Charge Over Account and Set‑Off

Property:

The addendum, as an integral part of the Charge Undertaking (Charge Over Account and Set-Off dated 17th November, 2010), varies the Charge Undertaking in terms of the deposits in the Account (all deposits, renewals and interest thereon and monies which are deposited with the Bank) being differentiated and identified

Mortgagee:      United Overseas Bank Limited.
80 Raffles Place, UOB Plaza, Singapore 048624, Singapore.

To secure general banking facilities

17-11-2010

Instrument:      General Memorandum of Pledge of Goods

Property:

All the Company’s rights, title and interest in and to the goods bills of lading warrants delivery orders and all documents of title and securities whatsoever delivered to or deposited with the Bank

Mortgagee:      United Overseas Bank Limited.
80 Raffles Place, UOB Plaza, Singapore 048624, Singapore.

To secure general banking facilities

17-11-2010

Instrument:      Assignment of Letters of Credit

Property:

All the Company’s rights, title, interest and benefit in and to all and any moneys now or at any time due or owing to the Company under or in connection with each of the letters of credit issued in the Company’s favour and deposited with the Bank

Mortgagee:      United Overseas Bank Limited.
80 Raffles Place, UOB Plaza, Singapore 048624, Singapore.

To secure general banking facilities

17-11-2010

Instrument:      Charge Over Account and Set-Off

Property:

All the Company’s rights, title and interest in and to all deposits, renewals and interest thereon which are deposited with the Bank

Mortgagee:      United Overseas Bank Limited.
80 Raffles Place, UOB Plaza, Singapore 048624, Singapore.

To secure general banking facilities

09-11-2011

Instrument:      Trade Finance Security Assignment

Property:

The Borrower as beneficial owner and as security for the payment of all Secured Liabilities: (a) assigns and agrees to assign absolutely to the Bank to the following assets: (i) the Export Credits; (ii) the Export Collection Bills; (iii) the Sales Contracts; (iv) the Export Invoice Receivables; (v) the Insurances; (vi) the Trade Documents; and (vii) all claims, remedies and proceed; (b) charges and agrees to charge to the Bank to the following assets: (i) the Goods together with their proceeds; (ii) the Pledged Goods; (iii) the Deposit and (iv) to the extent any Security Assets; and (c) pledges and agrees to pledge to the Bank the Pledged Goods and the Trade Documents

Mortgagee:      United Overseas Bank Limited.
80 Raffles Place, UOB Plaza, Singapore 048624, Singapore.

All obligations and liabilities of whatever nature of the Borrower owed to the Bank

12-11-2012

Instrument:      Letter of Charge & Set-Off

Property:

The company as beneficial owner hereby charges in favour of the Bank by way of first fixed charge all the company’s rights, title and interest both present of future in and to the deposits and other deposits

Mortgagee:      United Overseas Bank Ltd.,
80 Raffles Place, UOB Plaza. Singapore 048624.

To secure banking facilities granted to the company


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.28

UK Pound

1

Rs.82.06

Euro

1

Rs.70.23

 

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.