MIRA INFORM REPORT

 

 

Report Date :

26.05.2014              

 

IDENTIFICATION DETAILS

 

Name :

JC PETROCHEM LTD.

 

 

Registered Office :

Unit 1304, 13/F., 248 Queen’s Road East, Wanchai

 

 

Country :

Hongkong

 

 

Date of Incorporation :

18.06.2008

 

 

Com. Reg. No.:

39466738

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of Petrochemical Products.

 

 

No. of Employees :

5

 

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Hongkong

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

 


 

HONGKONG - 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

 

JC  PETROCHEM  LTD.

 

ADDRESS:             Unit 1304, 13/F., 248 Queen’s Road East, Wanchai, Hong Kong.

 

PHONE:                  852-2527 1880,  2527 1999

FAX:                       852-2527 1780

 

 

MANAGEMENT

 

Managing Director:  Mr. Chung Jin Hee

 

 

SUMMARY

 

Incorporated on:             18th June, 2008.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal: HK$3,500,000.00

                                    Issued:  HK$3,500,000.00

 

Business Category:        Importer, Exporter and Wholesaler.

 

Employees:                   5.

 

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

 

Banking Relation:           Satisfactory.

 

 

ADDRESS

 

Registered Head Office:-

Unit 1304, 13/F., 248 Queen’s Road East, Wanchai, Hong Kong.

 

Affiliated Companies:-

Continent International Ltd., Hong Kong.

Green Corporation Ltd., Hong Kong.

Hymax Ltd., Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

39466738

 

 

COMPANY FILE NUMBER

 

1248497

 

 

MANAGEMENT

 

Managing Director:  Mr. Chung Jin Hee

 

 

CAPITAL

 

Nominal Share Capital: HK$3,500,000.00 (Divided into 3,500,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$3,500,000.00

 

 

SHAREHOLDER

(As per registry dated 18-06-2013)

 

Name

 

No. of shares

CHUNG Jin Hee

 

3,500,000

=======

 

 

DIRECTOR

(As per registry dated 18-06-2013)

 

Name

(Nationality)

 

Address

CHUNG Jin Hee

Flat B, 9/F., Taggart (Tower 2), The Repulse Bay, 109 Repulse Bay Road, Hong Kong.

 


SECRETARY

(As per registry dated 18-06-2013)

 

Name

Address

Co. No.

Tims Corporate Services Ltd.

Room A, 15/F., Fortis Tower, 77‑79 Gloucester Road, Wanchai, Hong Kong.

0284320

 

 

HISTORY

 

The subject was incorporated on 18th June, 2008 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Formerly the subject was located at Unit A, 12/F., China Overseas Building, 139 Hennessy Road, Wanchai, Hong Kong, moved to Unit B, 20/F., Wing Hang Finance Centre, 60 Gloucester Road, Wanchai, Hong Kong in March 2012, and further to the present address in February 2014.

 

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

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of petrochemical products, etc.

 

Employees:                   5.

 

Commodities Imported:   India, Singapore, etc.

 

Markets:                       South Korea, other Asian countries, etc.

 

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

 

Terms/Buying:               L/C, or as per contracted.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$3,500,000.00 (Divided into 3,500,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$3,500,000.00

 


Increase of Nominal Capital:-

From

HK$     10,000.00

to

HK$1,500,000.00

on

05-03-2010

From

HK$1,500,000.00

to

HK$3,500,000.00

on

10-07-2012

 

Alternation of Issued Capital:-

18-06-2008

paid up

HK$              1.00

05-03-2010

paid up

HK$1,499,999.00

10-07-2012

paid up

HK$2,000,000.00

 

 

–––––––––––––––

Total:

paid up

HK$3,500,000.00

==============

 

Mortgage or Charge (since 2012):  (See attachment)

 

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

 

Condition:                      Business is improving.

 

Facilities:                      Making fairly active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

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

Australia & New Zealand Banking Group Ltd., Hong Kong Branch.

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

United Overseas Bank Ltd., Hong Kong Branch.

 

Standing:                      Moderate.

 

 

GENERAL

 

Having issued 1.5 million ordinary shares of HK$1.00 each, JC Petrochem Ltd. is wholly-owned by Chung Jin Hee who is a South Korea passport holder.  Chung Jin Hee is also the only director of the subject.  Now, he is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.

In July 2012, the subject increased its issued share capital to HK$3.5 million.  Chung Jin Hee is still the sole shareholder.

Incorporated in June 2008, the subject is a petrochemical and organic chemical product trader including lubricants, etc.  It also imports other chemicals.  Most of the products are imported from Singapore and some of the European countries.  Prime markets are South Korea and the other Asian countries.  The subject has got a number of wholesalers in South Korea.  Business keeps on improving.  The subject’s business is chiefly handled by Chung himself.

The subject had an affiliated company Continent International Ltd. [CIL], a Hong Kong-registered company located at its old address.

Having issued 1 million ordinary shares of HK$1.00 each, CIL is wholly owned by Mr. Suh Eun Seok who seems to be also a Korean.  Suh is the only director of CIL.  He is a Hong Kong ID Card holder but most of the time he is residing in Shenzhen Special Economic Zone, China.

CIL is also a organic chemical and petrochemical product trader.  Its products include paraffin wax, etc.

The history of the subject is over five years.

On the whole, consider it good for normal business engagements in small credit amounts.

 

 

MORTGAGE OR CHARGE

(Since 2012)

 

Date

Particulars

Amount

12-03-2012

Instrument:      Charge Over Deposit

Property:

The Depositor charges the Deposit with full title guarantee & by way of a first fixed charge, in favour ANZ as continuing security for the due and punctual payment of all moneys & performance of all other obligations that the Depositor and Borrower, in any capacity & whether alone or with any other person, is or at any time becomes actually or contingently liable to pay or perform to, for or on account of ANZ in any manner or on any account whatsoever pursuant to or in connection with the Secured Facilities

Mortgagee:        Australia & New Zealand Banking Group Ltd., Hong Kong Branch.

All obligations owing to Australia and the Bank acting trough its head office or at any other branch by the Depositor on any account, whether present or future, actual or contingent

13-04-2012

Instrument:      Security Over Deposits with the Bank

Property:

A deposit with chargee in the amount of all monies under Deposit A/C No. 848-250098-274 whatever currency it may subsequently by 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.

Amount Secured, all monies in any currency owing by the company

13-04-2012

Instrument:      Assignment of Receivables & Charge over Proceeds - General

Property:

In consideration of the Chargee entering or agreeing to enter into the Invoice Discounting/Factoring Agreement & providing or continuing to provide services, banking facilities or other financial accommodation to such extent & for so long as the Chargee may think fit to the Client, the Client, as beneficial owner & by way of security for payment of the Secured Monies, hereby:-

A) Assigns, and agrees to assign, to the Chargee all Non‑purchased debts;

B) Charges by way of first fixed charge to the Chargee all the Client’s, right, title, interest & benefit present & future, of and in:

i)   All Specified Debts;

ii)  The Factoring Proceeds,

iii) The Receipt Account together with all sums standing to the credit of the Receipt Account until all the Secured Monies have been fully & irrevocably paid or discharged

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

All monies & liabilities in any currency owing by the Client

02-05-2012

Instrument:      Assignment of Life Insurance

Property:

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

Insurance Policy No: 28005320

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

Name of the Insured: Mr. Chung Jin Hee

Assignor / Policy Owner: JC Petrochem 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 & liabilities in any currency whenever and however incurred

06-09-2013

Instrument:      Charge Over Deposit

Property:

The Depositor charges the Deposit in all Accounts and all right, title and interest, both present and future, in and to such Deposits and Accounts in favour of ANZ as continuing security for the due and punctual payment of all moneys & performance of all other obligations that the Depositor and Customer, in any capacity & whether alone or with any other person, is or at any time becomes actually or contingently liable to pay or perform to, for or on account of ANZ in any manner or on any account whatsoever pursuant to or in connection with the Secured Facilities

Mortgagee:      Australia & New Zealand Banking Group Ltd., Hong Kong Branch.

All obligations owing to Australia and New Zealand Banking Group Ltd. acting through its head office or at any other branch by Depositor and the Customer on any account, whether present or future, actual or contingent

05-11-2013

Instrument:      Trade Finance Security Agreement

Property:

The Borrows as beneficial owner:-

(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 Credit;

2)   The Export Collection Bills;

3)   The Sales Contracts;

4)   The Invoice Receivables;

5)   The Purchase Contracts;

6)   The Insurances;

7)   The Trade Documents;

8)   The Bills of Exchange;

9)   The Related Collaterals; and

10)  All claims, remedies and proceeds in connection with any of the foregoing.

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

1)   The Goods together with their proceeds;

2)   The Deposit; and

3)   To the extent any Security Assets is not effectively assigned under sub-clause (a), such Security Asset.

(C)  Pledges and agrees to pledge to the Bank, the Bills of Exchange, the Pledged Goods and the Trade Documents which are now or may in the future be in actual or constructive possession of the Bank; and

(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 which is not effectively charged by way of fixed charge or assigned or pledged under the above sub-clauses (a), (b) and (c).

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

All monies, obligations and liabilities

30-10-2013

Instrument:      Security Agreement over Bank Account

Property:

By way of a first 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.58.48

UK Pound

1

Rs.98.67

Euro

1

Rs.79.81

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.