MIRA INFORM REPORT

 

 

Report Date :

05.04.2014  

 

IDENTIFICATION DETAILS

 

Name :

DK METAL WORLD LTD.

 

 

Registered Office :

Flat B4, 15F., Prat Manion, 26-36 Prat Avenue, Kowloon, Hong Kong.

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

09.04.2005

 

 

Com. Reg. No.:

35506518

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesalers of All kinds of Alloy Products.

 

 

No. of Employees :

Nil

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Status :

Moderate

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Hong Kong

A1

A1

 

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 has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: 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, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. 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 12% of total system deposits in Hong Kong by the end of 2013. 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 total trade 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. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies.

 

 

Source : CIA

 

 

 

 

Company name and address

 

DK  METAL  WORLD  LTD.

 

ADDRESS:             Flat B4, 15/F., Prat Mansion, 26-36 Prat Avenue, Kowloon, Hong Kong.

 

PHONE:                  852-2312 1660

 

FAX:                       852-2312 1662

 

 

MANAGEMENT

 

Managing Director:  Mr. Sanjay Arya

 

 

SUMMARY

 

Incorporated on:      9th April, 2005.

 

Organization:           Private Limited Company.

 

Capital:                   Nominal:  HK$200,000.00

                         Issued:    HK$10,000.00

 

Business Category: Importer, Exporter and Wholesaler.

 

Employees:            Nil.

 

Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:    Satisfactory.

 

 

ADDRESS

 

Registered Head Office:-

Flat B4, 15/F., Prat Mansion, 26-36 Prat Avenue, Kowloon, Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

35506518

 

 

COMPANY FILE NUMBER

 

0962064

 

 

MANAGEMENT

 

Managing Director:  Mr. Sanjay Arya

 

 

CAPITAL

 

Nominal Share Capital: HK$200,000.00 (Divided into 200,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$10,000.00

 

 

SHAREHOLDERS

(As per registry dated 09-04-2013)

 

Name

 

No. of shares

Rajesh Popatlal GALA

 

5,000

Sanjay ARYA

 

5,000

 

 

––––––

 

Total:

10,000

=====

 

 

DIRECTORS

(As per registry dated 06-02-2014)

 

Name

(Nationality)

 

Address

Sanjay ARYA

804, B-Wing, Magnam Vasant Marvel Western, Express Highway Borivali-E, Mumbai-66, M.S., India.

 

Rajesh Popatlal GALA

A/103, Satyam, Simpoli Road, Borivali (West), Mumbai‑L100092, India.

 

 

SECRETARY

(As per registry dated 09-04-2013)

 

Name

Address

Co. No.

VMC Secretaries Ltd.

Room 1617-1618, 16/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon, Hong Kong.

0750831

 

 

HISTORY

 

The subject was incorporated on 9th April, 2005 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of KR Metals Ltd., name changed to the present style on 18th October, 2007.

 

Formerly the subject was located at Room 1617-1618, 16/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon, Hong Kong where is the operating office of VMC Secretaries Ltd.  The subject moved to the present address with effect from 16th January, 2011.

 

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

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of alloy products.

 

Employees:                  Nil.

 

Commodities Imported: India, Middle East, South America, etc.

 

Markets:                        Japan, Europe, US, etc.

 

Terms/Sales:                 L/C, T/T, etc.

 

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

 

FINANCIAL INFORMATION

 

Nominal Share Capital:              HK$200,000.00 (Divided into 200,000 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 very active in Hong Kong.

 

Facilities:                                  Making fairly active use of general banking facilities.

           

Payment:                                  Met trade commitments as contracted.

 

Commercial Morality:                 Satisfactory.

 

Banker:                                     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:                                  Small.

 

 

GENERAL

 

DK Metal World Ltd. has issued 10,000 ordinary shares of HK$1.00 each which are equally owned by Mr. Rajesh Popatlal Gala and Mr. Sanjay Arya, both of whom are Indian.  Being India passport holders and with registered addresses in India, the two shareholders are also directors of the subject.

 

Formerly, the subject’s registered office was in a secretarial service firm located at Room 1617-1618, 16/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon, Hong Kong known as VMC Secretaries Ltd. [VMC] which is handling its correspondences and documents.  VMC is also the corporate secretary of the subject.  With effect from 16th January, 2011, the subject’s registered address moved to Flat B4, 15/F., Prat Mansion, 26‑36 Prat Avenue, Kowloon, Hong Kong.  This office is not in a commercial building but a residential building.  This address may also be the residence of the two shareholders when they are in Hong Kong.

 

The subject has no employees in Hong Kong.

 

To our knowledge, the subject is trading in the following products:

 

Ferro manganese (ELC, LC, MC, HC), ferro chrome (ELC, LC, HC), ferro molybdenum, ferro titanium, silicon manganese, stabilised ferro silicon, manganese oxide, etc.

 

These alloys are widely used in manufacturing tools.  Some of these products are de‑oxidizers, de-nitrogenator, etc.  Commodities are sourced from India, the United Arab Emirates, Russia, South America, etc.  Prime markets are Japan, European countries and the United States.  The following companies are two of the subject’s US buyers:-

·         R. L. Swearer Co. Inc.;

·         Tremond Alloys & Metals GRP Corporation.

 

It was reported that the subject has had an office in China.  The China office is responsible for the distribution of the subject’s products in China.

 

The subject’s business in Hong Kong seems not very active.  History in Hong Kong is about nine years.

 

Since the subject’s registered address is in a residential building and has no employees in Hong Kong, on the whole, consider it good for business engagements on L/C basis for the time being.

 

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

17-05-2011

Instrument:      Assignment of DC Proceeds

Property:

By way of assignment or agreement to assign in each case as beneficial owner.  All monies in any currency representing proceeds payable or to be paid to the Customer under the Documentary Credits, all the Customer’s right, title, benefit and interest in the said Documentary Credits, the benefit of all powers and remedies for enforcing the Documentary Credits and any payment made pursuant to the contract for sale of goods in connection with which the Documentary Credit is issued.

Mortgagee:      The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

All loans or other advances made or to be made by the Bank to the Customer against documents submitted under a Documentary Credit, all monies and liabilities in any currency owing by the Customer to the Bank at any time, whether separately or jointly, actually or contingently, present or future, interest on all loans and advances and such monies and all expenses of the Bank in perfecting or enforcing the Assignment

05-04-2012

Instrument:      Security Over Deposits with the Bank Limited Company - Under Seal

Property:

Initially US$1,000,000 and all monies hereafter standing to the credit of the company’s deposit account No. 491‑543435

Mortgagee:      The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

To secure all monies in respect of banking facilities owing at any time plus interest and all expenses

05-04-2012

Instrument:      Assignment of Life Insurance

Property:

(1)  All the Assignor’s claims under the Insurance:

Insurance Policy No: 20633928

Name of Insurance Co.: HSBC Life (International) Ltd.

Name of the Insured: Rajesh Popatlal GALA

Assignor / Policy Owner: DK Metal World Ltd.

(2)  All the Assignor’s claims against the issuer of the Policy

Mortgagee:      The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

All and any monies and liabilities

05-04-2012

Instrument:      Assignment of Life Insurance

Property:

(1)  All the Assignor’s claims under the Insurance:

Insurance Policy No: 20611525

Name of Insurance Co.: HSBC Life (International) Ltd.

Name of the Insured: Sanjay ARYA

Assignor / Policy Owner: DK Metal World Ltd.

(2)  All the Assignor’s claims against the issuer of the Policy

Mortgagee:      The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

All and any monies and liabilities

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.32

UK Pound

1

Rs.100.04

Euro

1

Rs.82.65

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIT

 

 

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.