MIRA INFORM REPORT

 

 

Report Date :

05.06.2014

 

IDENTIFICATION DETAILS

 

Name :

BST (HK) LTD.

 

 

Registered Office :

Room 4102-03, 41/F., MCL Tower, 248 Queen’s Road East, Wanchai

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

27.10.1998

 

 

Com. Reg. No.:

22087101

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer and Exporter of all kinds of iron and steel, iron ore and coke.

 

 

No. of Employees :

8.

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Hong Kong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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

 

BST (HK) LTD.

 

ADDRESS:       Room 4102-03, 41/F., MCL Tower, 248 Queen’s Road East, Wanchai, Hong Kong.

 

PHONE:            852-2634 1088,  2690 2410

 

FAX:                 852-2634 0171,  2690 4211

 

E-MAIL:            Bsttrade@ biznetvigator.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Dejan Minic

 

 

SUMMARY

 

Incorporated on:            27th October, 1998.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$10,000.00

 

Issued:                         HK$10,000.00

 

Business Category:       Iron and Steel Trader.

 

Employees:                  8.

 

Main Dealing Banker:     United Overseas Bank Ltd., Hong Kong Branch.

 

Banking Relation:          Satisfactory.


Company name

 

BST  (HK)  LTD.

 

 

ADDRESS

 

Registered Head Office:-

Room 4102-03, 41/F., MCL Tower, 248 Queen’s Road East, Wanchai, Hong Kong.

 

Associated Companies:-

Best Solution Trading Ltd., Hong Kong.

Globechart Ltd., Hong Kong.

Globechart Pte. Ltd., Singapore.

 

 

BUSINESS REGISTRATION NUMBER

 

22087101

 

 

COMPANY FILE NUMBER

 

0658014

 

 

MANAGEMENT

 

Managing Director:  Mr. Dejan Minic

 

 

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 27-10-2013)

Name

 

No. of shares

Dejan MINIC

 

6,000

Ashish Ranchhod SHUKLA

 

4,000

 

 

––––––

 

Total:

10,000

=====

 

 

DIRECTORS

 

(As per registry dated 27-10-2013)

Name

(Nationality)

 

Address

Ashish Ranchhod SHUKLA

Flat F, 28/F., Lotus Mansion, 6 Taikoo Wan Road, Taikoo Shing, Shau Kai Wan, Hong Kong.

 

Dejan MINIC

4/F., 16 Scenic Villa Drive, Pokfulam, Hong Kong.

 

 

SECRETARY

 

(As per registry dated 27-10-2013)

Name

Address

Co. No.

CNK Ltd.

Room 801, 8/F., Workington Tower, 78 Bonham Strand East, Hong Kong.

1556477

 

 

HISTORY

 

The subject was incorporated on 27th October, 1998 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Balkan Steel (HK) Ltd., name changed to the present style on 19th April, 2002.

Formerly the subject was located at Room 1907, 19/F., Tower II, Grand Central Plaza, 138 Shatin Rural Committee Road, Shatin, New Territories, Hong Kong, moved to Room 5206, 52/F., Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong with effect from 19th December, 2010.  With effect from 11th November, 2011, the subject moved to Unit A & B, 17/F., Eton Building, 288 Des Voeux Road Central, Hong Kong, moved back to Hopewell Centre again in May 2012.  The subject moved to the present address in December 2012.

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

 

OPERATIONS

 

Activities:                      Importer and Exporter.

 

Lines:                           All kinds of iron and steel, iron ore and coke.

 

Employees:                  8.

 

Commodities Imported: India, former Yugoslavia, Russia

 

Markets:                        China, other Asian countries

 

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

 

Alternation of Issued Capital:-

Initially

paid up

HK$     100.00

15-11-2010

paid up

HK$  9,900.00

 

 

–––––––––––––

Total:

paid up

HK$10,000.00

===========

 

Mortgage or Charge:     (See attachment)

 

Profit or Loss:               Making a small profit every year.

 

Condition:                     Keeping in an active condition.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

Banker:                         United Overseas Bank Ltd., Hong Kong Branch.

 

Standing:                      Good.

 


GENERAL

 

Having issued 10,000 ordinary shares of HK$1.00 each, BST (HK) Ltd. is jointly owned by Mr. Dejan Minic, holding 60% interests, and Mr. Ashish Ranchhod Shukla, holding 40%.  The equity held by the shareholders slightly changed on 1st November, 2010.

The shares held by Shukla was held by Mr. Maja Minic who transferred his shares to him on 11th March, 2010.  Dejan Minic and Shukla are also directors of the subject.

The subject’s ordinary shares have been increased to 10,000 from 100.

Dejan Minic was a Yugoslavia passport holder and now he is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.

Incorporated in October 1998, the subject is an iron and steel trader.  Its main supplier is Balkan Steel I.E. [Balkan Steel] which is in Liechtenstein.

The subject is trading in the following products:-

·         Cold Rolled Tubes with Small Radius;

·         Construction Supports and Tripods;

·         Elements and Compositions;

·         Elliptic Tubes;

·         Frame Scaffold;

·         Greenhouses;

·         Medium Heavy Tubes;

·         Rectangular Tubes;

·         Round Tubes;

·         Square Tubes;

·         Wood Processing Gear, &

·         ZP Profiles, etc.

Apart from the above-mentioned products, the subject also trades in iron ore and coal.

The subject now has set up representative offices in Beijing, Shanghai, Singapore, Goa, India and Indonesia.

Besides, the subject also owns a chartering company – Globechart Pte Ltd. [Globechart] through which it charters vessels and offer logistics solutions to its partners worldwide.

The chartering company in Singapore is run by a team of experienced personnel which can supply an efficient solution for the logistics requirements of its clients.  It charters vessels from coaster to cape size with special expertise in Handymax and Supramax vessels.  Globechart does not only cater for the subject’s physical shipping requirements but also third party requirements.

Established in 1995, Balkan Steel is engaged in steel products trading.  Its main markets are Russia, Ukraine and the Asia Pacific region.  Now, its markets have been expanded to the European Union and even the United States.  However, Balkan Steel’s business centres on the Republic of Macedonia, Bosnia, Herzegovina, etc. all which belonged to former Yugoslavia which dissolved in 1991.

Currently, Balkan Steel centres its business activities in Bosnia in two business entities: UNIS Tube Factory Derventa and the Port of Shamac.  Besides, Balkan Steel has set up business entities in the following countries and cities: Bonn of Germany, Paris of France, and Skopje of Macedonia.  Set up representative offices in Mariupol of Ukraine, Belgrade of Serbia, Banja Luka of Bosnia, and Herzegovina.  Balkan Steel also has secured sales agents in France, Croatia, Bulgaria, etc.

The subject is Balkan Steel’s Hong Kong agent.  Most of Balkan Steel’s products are steel pipes which are manufactured by its Unis Pipe Factory.

The subject also re-exports the products to China and the other Asian countries.  Its also imports iron and steel from India, other Asian countries and re-exports to the Eastern Europe, Ukraine, etc.  Business is active as the demand has been increasing.  However, China is its prime market.

According to the subject, it supplies 5 to 6 million of products to China end‑users annually.  At present, it has developed close business ties with a number of iron and steel mills, power generating companies and traders in China.

The subject’s business is chiefly handled by Dejan Minic and Shukla themselves.

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

 

 

REMARKS

 

Brief personal profile of the directors:

Dejan Minic – Owner, Director.  Minic was the founder of the subject and has a wealth of experience in the supply chain across physical commodities.  With more than 20 years of experience in the steel and steel related raw materials industry, he has created an efficient platform in the placement of products from origins all over the world to destinations mainly concentrated in fast developing markets in Asia.  With the foresight of identifying China as the major future player in commodities globally, Minic established the subject in Hong Kong (the gateway to China) and dedicated his time in developing strong relationships with the key industry players, providing them with a choice of products and services to suit their requirements.

Ashish Shukla – Owner, Director, Ashish with more than 20 years of experience in the steel related raw materials industry and bulk commodities has been vital for the subject’s success in establishing strong ties between the Indian and Chinese markets.  He has forged life-long relationships at the highest level within the industry and has structured strategic partnerships which provide win-win solutions for the subject and their partners.  Ashish is also an expert in the operational risk aspects of the movement of physical commodities globally.

 

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

15-12-2009

Instrument:        Charge Over Account and Set-Off

Property:

All the Company’s rights, title and interest in and to the Account

Mortgagee:        United Overseas Bank Ltd., Hong Kong Branch.

To secure general banking facilities

15-12-2009

Instrument:        Addendum to Charge Over Account and Set-Off

Property:

The addendum, as an integral part of the Charge Undertaking, varies the Charge Undertaking in terms of the deposits in the Account being differentiated and identified as being protected or not protected by or under the Scheme and/or the guarantee and such variation shall come to effect from the date of the Charge Undertaking until the Expiry Date

Mortgagee:        United Overseas Bank Ltd., Hong Kong Branch.

To secure general banking facilities

15-12-2009

Instrument:        General Memorandum of Pledge of Goods

Property:

All the Company’s rights, title and interest in and to the Merchandise

Mortgagee:        United Overseas Bank Ltd., Hong Kong Branch.

To secure general banking facilities

15-12-2009

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

Mortgagee:        United Overseas Bank Ltd., Hong Kong Branch.

To secure general banking facilities

18-10-2010

Instrument:        Assignment of Sale Contracts

Property:

All the Company’s rights, title and interest in and to the Assigned Assets

Mortgagee:        United Overseas Bank Ltd., Singapore.

To secure general banking facilities

30-05-2011

Instrument:        Charge Over Deposit

Property:

The Depositor as beneficial owner, by way of first fixed charge, charges in favour of the Bank, as security for the payment and discharge of the Secured Obligations all of its right, title and interest in and to the Deposits

Mortgagee:        ING Bank N.V., Hong Kong Branch.

All monies

07-11-2012

Instrument:        Trade Finance Security Assignment

Property:

(a)        Assigns to the Bank to the following assets:-

(1)        The Export Credits;

(2)        The Export Collection Bills;

(3)        The Sales Contracts;

(4)        The Export Invoice Receivables;

(5)        The Insurances;

(6)        The Trade Documents, and

(7)        All Claims, remedies and proceeds in connection with any of the foregoing

(b)        Charges to the Bank to the following assets:-

(1)        The Goods together with their proceeds;

(2)        The Pledged Goods;

(3)        The Deposit and

(4)        To the extent any Security Assets is not effectively assigned under sub-clause, such Security Asset; and

(c)        Pledges and agrees to pledge to the Bank the Pledged Goods and the Trade Documents which are now or may in the future be in the possession of the Bank

Mortgagee:        United Overseas Bank Ltd., Singapore.

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

26-03-2012

Instrument:        Deed of Charge and Assignment of Receivables

Property:

The Assignor executes and delivers this Deed in favour of the Assignees as security for the payment of the Secured Amounts and the performance and discharge of all undertakings, covenants, terms and conditions on the part of the Assignor under or in connection with the Facilities or this Deed

Mortgagee:        ING Bank N.V., Hong Kong Branch.

All monies

29-06-2012

Instrument:        Trade Finance Security Assignment

Property:

(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:-

1)         The Export Credits;

2)         The Export Collection Bills;

3)         The Sales Contracts;

4)         The Export Invoice Receivables;

5)         The Insurances;

6)         The Trade Documents; and

7)         All Claims, remedies and proceeds in connection with any of the foregoing

(b)        Charge and agrees to charge to the Bank by way of first fixed charge all the present and future rights, title, interests and benefits of the Borrower in and to the following assets:-

1)         The Goods together with their proceeds;

2)         The Pledged Goods;

3)         The Deposit; and

4)         To the extent any Security Assets is not effectively assigned under sub-clause, such Security Asset; and

(c)        Pledges and agrees to pledge to the Bank the Pledged Goods and the Trade Documents which are now or may in the future be in the possession of the Bank

Mortgagee:        Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

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

15-03-2013

Instrument:        Security Agreement over Bank Account

Property:

By way of a first fixed charge all of the Chargor’s rights in respect of any amount standing to the credit of the Account

Mortgagee:        Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

To secure the payment and satisfaction of all present and future obligations and liabilities


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.34

UK Pound

1

Rs.99.18

Euro

1

Rs.80.76

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NNA

 

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.