MIRA INFORM REPORT

 

 

Report Date :

30.07.2014

 

IDENTIFICATION DETAILS

 

Name :

TERRATEC LTD.

 

 

Registered Office :

Room 407, 4/F., Empire Centre, 68 Mody Road, Tsimshatsui, Kowloon,

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

19.12.2008

 

 

Com. Reg. No.:

50128365

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is a designer and manufacturer of Tunnel Boring Machines [TMB], Raise Boring Machines [RBM] and other custom-made products for tunnelling and mining applications.

 

 

No. of Employees

02

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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

 

TERRATEC  LTD.

 

 

ADDRESS:       Room 407, 4/F., Empire Centre, 68 Mody Road, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:            852-3169 3660

 

FAX:                 852-3169 3661

 

E-MAIL:            info@terratec.com.hk

 

 

MANAGEMENT

 

Managing Director:  Mr. Juan Parreno Fernandez

 

 

SUMMARY

 

Incorporated on:             19th December, 2008.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:HK$200,000.00

Issued:  HK$200,000.00

 

Business Category:        Machine Trader.

 

Employees:                   2.

 

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

 

Banking Relation:           Satisfactory.


 

 ADDRESS

 

Registered Head Office:-

Room 407, 4/F., Empire Centre, 68 Mody Road, Tsimshatsui, Kowloon, Hong Kong.

 

Holding Company:-

Terratec Group Inc., Cayman Island.

 

Associated Companies:-

Terratec (India) Pvt. Ltd., India.

Terratec America Inc., Panama.

Terratec Asia Pacific Pty. Ltd., Australia.

 

 

BUSINESS REGISTRATION NUMBER

 

50128365

 

 

COMPANY FILE NUMBER

 

1295661

 

 

MANAGEMENT

 

Managing Director:  Mr. Juan Parreno Fernandez

Contact Person:  Ms. Vicky Wong

 

 

CAPITAL

 

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

 

Issued Share Capital: HK$200,000.00

 

SHAREHOLDER:           (As per registry dated 19-12-2013)

Name

 

No. of shares

Terratec Group Inc.

Scotia Centre, 4/F., P.O. Box 2804, George Town, Grand Cayman KY1-1112, Cayman Island.

 

200,000

======

 


DIRECTOR:       (As per registry dated 19-12-2013)

Name

(Nationality)

 

Address

Juan PARRENO FERNANDEZ

Apartment #C1003, 8 Hung Luen Road, Hung Hom Bay, Kowloon, Hong Kong.

 

SECRETARY:    (As per registry dated 19-12-2013)

Name

Address

LAU Pui Yee

Room 407, 4/F., Empire Centre, 68 Mody Road, Tsimshatsui, Kowloon, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 19th December, 2008 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Tunnelling Equipment Ltd., name changed to the present style on 18th February, 2009.

 

Formerly the subject was located at 22/F., 6 Knutsford Terrace, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in June, 2012.

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

 

 

OPERATIONS

 

Activities:          Machine Trader.

 

Lines:               Tunnel Boring Machines, Raise Boring Machines and other custom-made products for tunnelling and mining applications.

 

Employees:       2.

 

Commodities Imported:   Australia, etc.

 

Markets:           Africa, Australasia, Central & South America, China, Eastern Europe, Hong Kong, Japan, South Korea, Middle East, North America, Scandinavia, Southeast Asia, Taiwan, Western Europe, etc.

 

Terms/Sales:     As per contracted.

 

Terms/Buying:   Various terms.

 


 

FINANCIAL INFORMATION

 

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

 

Issued Share Capital:     HK$200,000.00

 

Indebtedness:                US$1,880,000.00  (Total amount outstanding on all mortgages and charges as per last Annual Return dated 19-12-2013)

 

 

Mortgage or Charge:-

Date of Deposit Deed:  11-12-2009

Amount:                        All moneys now or at any time in the future owing by the company

Property:                       By way of a first fixed charge & as a continuing security for the Obligations, the Company charges and assigns absolutely all its rights, title to and interest in the Accounts & all Deposits from time to time in the Accounts and comprising the Accounts maintained with the Bank

Mortgagee:                    Citibank N.A., Hong Kong Branch.

 

Profit or Loss:                Made small profits in past three years.

 

Condition:                       Keeping in a normal manner.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

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

Citibank N.A., Hong Kong Branch.

 

Standing:                      Small.

 

 

GENERAL

 

Having issued 200,000 ordinary shares of HK$1.00 each, Terratec Ltd. is wholly owned by Terratec Group Inc. which is a Cayman Island-registered firm.  The only director of the subject Juan Parreno Fernandez is a Hong Kong ID holder and has got the right to reside in Hong Kong permanently.

The subject in fact is an associated company of Terratec Asia Pacific Pty. Ltd. [TAPP] which is an Australia-based firm.  Including the subject, TAPP and its associated companies form the Terratec Group [Terratec/Group].

The subject is the regional office for the China and Southeast Asian markets.

Incorporated in 1990, Terratec is the world-renowned Australian designer and manufacturer of Tunnel Boring Machines [TMB], Raise Boring Machines [RBM] and other custom-made products for tunnelling and mining applications.

Terratec’s main products are TBM, RBM, Conveyor Systems, and the others related equipment.  It also offers customers with after-sales services such as repairing and maintenance services.

Terratec has had an experienced engineering team.  The team includes engineers with over 40 years experience in the design and manufacture of tunnelling and mining machines who have also worked on some of the world’s largest underground projects.

Terratec’s products have been claimed to be well-known in the industry as “Robust, Durable and Safe”, basic principles which must prevail in the conception of any equipment made to work in the extreme conditions encountered underground.  As a provider of Total Tunnelling Solutions, Terratec’s scope of work extends to include operation and maintenance of boring equipment during the execution of works as well as supply of ancillary equipment.

Today, Terratec is well placed to meet the growing global market.  Now, Terratec has set up associated companies in the United States and India in order to penetrate the international market further.  The India company is in Bhikaji Cama Place, New Delhi, India.  Besides, Terratec has set up associate companies in Africa, the United Arab Emirates and Panama.

In December 2012, first of eight TBMS for Delhi Metro were sold by Terratec.  Terratec sold the machines to Delhi Metro after a record seven months from receipt of order.  The Tunnel Boring Machine is a Ø6.61m EPB Shield.

In February 2013, Terratec launches its new Universal Boxhole Borer [UBB].  The Universal Boxhole Boring Machine - UB1000, is designed to boxhole sections up to 1.06 m diameter x 100 m long and it can also ream conventional raises nominally 1.8 m diameter x 200 m dee.  UBB is a kind of new product which needs time to penetrate the international market.

The subject’s business in Hong Kong is chiefly handled by Juan Parreno Fernandez.  The contact person Ms. Vicky Wong is the personal assistant of Juan Parreno Fernandez.  She is a Hongkongnese.

The main business territories of the subject are Hong Kong, China, Southeast Asia, etc.  It also exports the machinery & equipment to the Middle East, North America, Europe, Scandinavia, etc.

However, the subject is trying to penetrate the China market further in the years ahead.

As the history of the subject is just over five years in Hong Kong, on the whole, consider it good for normal business engagements.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.10

UK Pound

1

Rs.102.04

Euro

1

Rs.80.74

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NIS

 

               

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.