MIRA INFORM REPORT

 

 

Report Date :

30.06.2014

 

IDENTIFICATION DETAILS

 

Name :

CUMIC  STEEL  LTD.

 

 

Registered Office :

c/o HKRTP Ltd.

MSH 3061, Room 1007, 10/F., Ho King Centre, 2-16 Fa Yuen Street, Mongkok, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

16.01.2006

 

 

Com. Reg. No.:

36376794

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

·         Subject is involved in Local Processing and Distribution for steel products.

·         Engaged in trading in carbon steel and special steel. 

·         Subject products ranges include Long Products, Flat Products, Special Products, Pipes and Tubes, Slab and Billet, as well as Iron and Steel Raw Materials.

 

 

No of Employees :

No Employees in Hong Kong

 

(It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.)

 

 

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 :

Unknown

 

 

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

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate 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

 

CUMIC  STEEL  LTD.

 

 

copmpany ADDRESS  

 

c/o HKRTP Ltd.

MSH 3061, Room 1007, 10/F., Ho King Centre, 2-16 Fa Yuen Street, Mongkok, Kowloon, Hong Kong.

 

PHONE:            852-2687 5558

FAX:                 852-2687 5563

 

 

MANAGEMENT

 

Managing Director:  Mr. Zhang Jiahua

 

 

SUMMARY

 

Incorporated on:            16th January, 2006.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$20,000,000.00

Issued:             HK$20,000,000.00

 

Business Category:       Importer, Exporter and Wholesaler.

 

Employees:                  Nil.

 

Main Dealing Banker:     DBS Bank (Hong Kong) Ltd., Hong Kong.

 

Banking Relation:          Satisfactory.


Company ADDRESS

 

Registered Office:-

c/o HKRTP Ltd.

MSH 3061, Room 1007, 10/F., Ho King Centre, 2-16 Fa Yuen Street, Mongkok, Kowloon, Hong Kong.

 

Holding Company:-

Cumic Resources Ltd., British Virgin Islands.

 

Associated/Affiliated Companies:-

Shanghai Cumic Steel Ltd.

Room 2002, City Centre Tower A, 100 Zunyi Road, Changning District, 200051 Shanghai, China.

[Tel:      86-21-5611 8383

Fax:      86-21-5611 9383

E-mail:  cumic@cumic.cn ]

 

CUMIC India

Level 3, Neo Vikram, New Link Road, Andheri (W), Mumbai, India.

[E-mail: cumic@cumic.cn ]

CUMIC Dubai

#2809, JBC 01, Jumeirah Lake Towers, Dubai, UAE.

[E-mail: cumic@cumic.cn ]

 

 

BUSINESS REGISTRATION NUMBER

 

36376794

 

 

COMPANY FILE NUMBER

 

1019472

 

MANAGEMENT

 

Managing Director:  Mr. Zhang Jiahua

 

 

CAPITAL

 

Nominal Share Capital: HK$20,000,000.00 (Di0vided into 20,000,000 shares of HK$1.00 each)

Issued Share Capital:     HK$20,000,000.00

 


SHAREHOLDER

(As per registry dated 16-01-2014)

 

Name

 

No. of shares

Cumic Resources Ltd.

Palm Grve House, P.O. Box 438, Road Town, Tortola, British Virgin Islands.

 

20,000,000

========

 

 

DIRECTORS

(As per registry dated 22-05-2014)

 

Name

(Nationality)

 

Address

ZHANG Jiahua

Room 601, No. 356 Building, Gongfusichun, Baoshan District, Shanghai, China.

 

TU Ling

Room 801, No. 22 Building, 667 Haijiang Road, Baoshan District, Shanghai, China.

 

QIAN Haiming

Room 1102, No. 51 Building, 1298 Mudanjiang Road, Baoshan District, Shanghai, China.

 

 

SECRETARY

(As per registry dated 16-01-2014)

 

Name

Address

Co. No.

HKRTP Ltd.

Room 1007, 10/F., Ho King Centre, 2-16 Fa Yuen Street, Mongkok, Kowloon, Hong Kong.

0663489

 

 

HISTORY

 

The subject was incorporated on 16th January, 2006 as a private limited liability company under the Hong Kong Companies Ordinance.

 

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

 


OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           Iron and steel materials and products.

 

Employees:                  Nil.

 

Commodities Imported: China, Russia, India, South America, etc.

 

Markets:                        China, other Asian countries, etc.

 

Terms/Sales:                 As per contracted.

 

Terms/Buying:               Various terms.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$20,000,000.00 (Divided into 20,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$20,000,000.00

 

Mortgage or Charge

(since 2009):                 (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:-

·         DBS Bank (Hong Kong) Ltd., Hong Kong.

·         Agricultural Bank of China, Hong Kong Branch.

·         BNP Paribas, Hong Kong Branch.

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

 

Standing:  Small.

 


GENERAL

Having issued 20 million ordinary shares of HK$1.00 each, Cumic Steel Ltd. formerly was jointly owned by six China merchants while the largest shareholder Mr. Qian Haiming held 82% interests; the second largest shareholder Mr. Zhang Jiahua held 8%.  The other four shareholders held 10% in total.  Now, the shareholders have been reshuffled.  The subject is solely owned by Cumic Resources Ltd., a BVI-registered company.

The subject does not have its own operating office.  Its registered office is in a commercial service firm located at MSH 3061, Room 1007, 10/F., Ho King Centre, 2-16 Fa Yuen Street, Mongkok, Kowloon, Hong Kong known as HKRTP Ltd. which is handling its correspondences and documents.  HKRTP Ltd. is also the corporate secretary of the subject.  MSH 3061 is the file number of the subject in the secretarial company.

The subject has no employees in Hong Kong.

According to the subject, its businesses started in May, 2006 and the first deal was concluded also in May, 2006.

To our knowledge, the subject has had an associated company in Shanghai, China known as Shanghai Cumic Steel Ltd. [Shanghai Cumic].  Shanghai Cumic and the subject are engaged in the same lines of business.  Your given phone number 86-21-5611 8383 belongs to Shanghai Cumic.

Shanghai Cumic is devoted to the steel business including international trading.  It is also involved in local processing and distribution for steel products.

The management team of Shanghai Cumic is experienced professionals in the steel industry.  Shanghai Cumic enjoys good reputation in the steel industry in China as well as in some of the countries of the world.

Shanghai Cumic trades in carbon steel and special steel.  The products carried by Shanghai Cumic includes long products, flat products, special products, pipes and tubes, slab and billet, and iron and steel raw materials.

Shanghai Cumic keeps stable relationship with local and overseas iron and steel mills, especially those based in China and the other Asian countries.  Shanghai Cumic serves the customers in the Middle East, East Asia, Latin America, Africa and Europe.  Besides, Shanghai Cumic also has been keeping cooperation relationships with customers in North America , Australia, Southeast Asia, etc.  Shanghai Cumic’s customers include those enterprises engaged in machine, building, structure manufacturing, automobile manufacturing, home appliance industry, light industry, and gas and oil transportation.  Its customers are in over forty countries.  Total volume managed and supplied in 2013 was over 740,000 metric tonnes.

Shanghai Cumic also maintains long term, stable and close ties with close prime world bank, insurance companies, shipping companies & main port authorities

On 8th August, 2006, Shanghai Cumic was granted facility from prime world bank.

In 2007, Shanghai Cumic penetrated the South Africa market.

In 2008, the turnover of Shanghai Cumic amounted to US$250 million and its total sales volume was 300,000 metric tonnes.

In 2008, Shanghai Cumic penetrated the Latin America and Australia market.

In 2011, its sales of steel reached 620,000 metric tonnes.

Many large iron and steel companies are the main suppliers of Shanghai Cumic.

Now, the annual sales turnover of Shanghai Cumic ranges from US$550 to 600 million.

Shanghai Cumic now has set up offices in Mumbai of India and Dubai of the United Arab Emirates.

It is likely that Shanghai Cumic deals with foreign parties under the name of the subject and let foreign firms correspond with the subject’s registered address in Hong Kong.  Shanghai Cumic also exports commodities to foreign markets under the name of the subject and its registered address in Hong Kong.

The subject’s business in Hong Kong is not very active.

On the whole, since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on L/C basis or in small credit amounts.

NOTE :

It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.

 

MORTGAGE OR CHARGE

(Since 2009)

 

Date

Particulars

Amount

02-03-2009

Instrument:      Charge on Cash Deposit to secure Liabilities of the Depositor

Property:

1)   By way of first fixed charge and agreement to charge: the Deposit and all right, title and interest of the Company

2)   By way of set-off: any sum standing to the credit of any one or more of the accounts of the Company with the Bank

Mortgagee:      DBS Bank (Hong Kong) Ltd., Hong Kong.

All sums of money and liabilities

20-12-2010

Instrument:      Deed of Charge

Property:

As security for the due payment and discharge of the Secured Amounts, the Company (a) charges to the Bank by way of floating charge all its right, title and interest in and to all Goods; and (b) charges to the Bank by way of first fixed charge all its right, title and interest in and to all Credit Balances; and (c) assigns to the Bank by way of first fixed security all Contract Rights and the benefit of any Security Interest and securities for the time being held by the Company in respect of any such Contract Rights

Mortgagee:      BNP Paribas, Singapore Branch.

All moneys and liabilities

25-06-2012

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

Property:

A deposit with Chargee in the amount of US$3,850,000 - under Deposit A/C No. 808-580799 whatever currency it may subsequently be denominated in, any renewal of such deposit & the interest thereon together with any further monies in any deposit account with the chargee at any of its offices

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

All monies in any currency owing by the Company

01-08-2013

Instrument:      Security Over Deposits with the Bank

Property:

The Depositor, as beneficial owner, changes, by way of security, and releases to the Bank all the right, title and interest of the Depositor in and to the Deposit
(Deposit Amount: US$5,500,000).

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

(i) all moneys; (ii) interest on such moneys; and (iii) all expenses

01-08-2013

Instrument:      Trade Finance Security Agreement

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: (i) the Export Credits; (ii) the Export Collection Bills; (iii) the Sales Contracts; (iv) the Invoice Receivables; (v) the Purchase Contracts; (vi) the Insurances; (vii) the Trade Documents; (viii) the Bills of Exchange; (ix) the Related Collaterals; and (x) all claims, remedies and proceeds;

b)   charges 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: (i) the Goods together with their proceeds; (ii) the Deposit; and (iii) to the extent any Security Asset is not effectively assigned;

c)   pledges and agrees to pledge to the Bank, the Bills of Exchange, the Pledged Goods and the Trade Documents;

d)   charges and agrees to charge to the Bank by way of first floating charge all the present and future rights, title, interests and benefits of the Borrower in and to any Security Asset

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

All monies, obligations and liabilities


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.10

UK Pound

1

Rs.102.40

Euro

1

Rs.81.88

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.