MIRA INFORM REPORT

 

 

Report Date :

05.09.2014

 

IDENTIFICATION DETAILS

 

Name :

BEST OASIS LTD.

 

 

Registered Office :

c/o Prima Group Ltd.

Suite 605, 6/F., China Insurance Group Building, 141 Des Voeux Road, Central,

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

16.04.2010

 

 

Com. Reg. No.:

52222004

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of Ship recycling, scrap metals

 

 

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 – 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

 

BEST  OASIS  LTD.

 

 

ADDRESS:       c/o Prima Group Ltd.

Suite 605, 6/F., China Insurance Group Building, 141 Des Voeux Road, Central, Hong Kong.

 

PHONE:            852-2376 3611

 

FAX:                 852-2736 5115

 

 

MANAGEMENT

 

Managing Director:  Mr. Trupti Sanjay Mehta

 

 

SUMMARY

 

Incorporated on:              16th April, 2010.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:HK$16,403,915.00

Issued:  HK$16,403,915.00

 

Business Category:        Importer, Exporter and Wholesaler.

 

Employees:                   Nil.

 

Main Dealing Banker:     Bank of India, Hong Kong Branch.

 

Banking Relation:           Satisfactory.


 

ADDRESS

 

Registered Office:-

c/o Prima Group Ltd.

Suite 605, 6/F., China Insurance Group Building, 141 Des Voeux Road, Central, Hong Kong.

 

Holding Company:-

Priya Blue Industries Private Ltd., India.

 

Associated Companies:-

Priya Holdings Pvt. Ltd., India.

Priyablue Import/Export Pvt. Ltd., India.

Priyablue Infrastructure Pvt. Ltd., India.

Priyablue Shipping Pvt. Ltd., India.

Priyablue Textile Pvt. Ltd., India.

Sanjay Sales Corporation, India.

 

 

BUSINESS REGISTRATION NUMBER

 

52222004

 

 

COMPANY FILE NUMBER

 

1444361

 

 

MANAGEMENt

 

Managing Director:  Mr. Trupti Sanjay Mehta

 

 

CAPITAL

 

Nominal Share Capital: HK$16,403,915.00 (Divided into 803,915 Ordinary shares and 15,600,000 Preference shares of HK$1.00 each)

 

Issued Share Capital: HK$16,403,915.00

 


SHAREHOLDERS:         (As per registry dated 16-04-2014)

Name

 

No. of shares

 

 

Ordinary

Preference

Priya Blue Industries Private Ltd.

“Aashirvad”, Plot No. 1563-A OPP. Panna Tower, Rupani Sardarnagar Road, Bhavnagar-364002, India.

 

803,915

-

Rishikumar Bhansali

 

-

15,600,000

 

 

–––––––

–––––––––

 

Total:

803,915

======

15,600,000

========

 

DIRECTORS:    (As per registry dated 16-04-2014)

Name

(Nationality)

 

Address

Trupti Sanjay MEHTA

Flat No. 801/802, 8/F., Leela Baug, Plot No. 248, Telang Cross Road, Behind Poddar College, Matunga-E, Mumbai - 400019, India.

 

Sanjay Prataprai MEHTA

Flat No. 801/802, 8/F., Leela Baug, Plot No. 248, Telang Cross Road, Behind Poddar College, Matunga-E, Mumbai - 400019, India.

 

SECRETARY:    (As per registry dated 16-04-2014)

Name

Address

Co. No.

Prima Secretaries Ltd.

Suite 605, 6/F., China Insurance Group Building, 141 Des Voeux Road Central, Central, Hong Kong.

0569406

 

 

HISTORY

 

The subject was incorporated on 16th April, 2010 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:               Ship recycling, scrap metals,

 

Employees:       Nil.

 

Commodities Imported:   Worldwide countries,

 

Markets:           India (main), other Asian countries, Europe,

 

Terms/Sales:      As per contracted.

 

Terms/Buying:  Various terms.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$16,403,915.00 (Divided into 803,915 Ordinary shares and 15,600,000 Preference shares of HK$1.00 each)

 

Issued Share Capital:     HK$16,403,915.00

 

Indebtedness:                US$3,000,000.00 (Total amount outstanding on all mortgages and charges as per last Annual Return dated 16-04-2014)

 

Mortgage or Charge:         (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.

 

Banker:                         Bank of India, Hong Kong Branch.

 

Standing:                      Small.

 

 

GENERAL

 

Best Oasis Ltd. is a wholly-owned subsidiary of Priya Blue Industries Private Ltd. [Priya Blue] which is an India-based firm.  The subject is a member of the Priya Group of companies.

The subject does not have its own operating office.  Its registered office is in a commercial service firm located at “Suite 605, 6/F., China Insurance Group Building, 141 Des Voeux Road Central, Central, Hong Kong” known as “Prima Group Ltd.” which is handling its correspondences and documents.  An associated company of Prima Group Ltd. Prima Secretaries Ltd. is the corporate secretary of the subject.  Prima Secretaries is also located at the above-mentioned address.

The subject has no employees in Hong Kong.

However, the head office of the subject is in India [hereinafter is referred to BOL].

BOL is part of Priya Blue Group.  It has been formed to serve its customers in the ship recycling industry.

BOL is engaged in multiple jobs which acts as a purchaser, seller and financer.

In 2010, Mr Sanjay Mehta set up the subject in Hong Kong for the sole purpose of cash buying of vessels for recycling at Alang, India, Pakistan, Bangladesh and China.

Hence the risk factors of re-negotiations is cushioned by BOL leaving the ship owners with their committed price and experience no hassle at all through the whole deal, at the same time the buyer enjoys the liberty of purchasing a vessel and getting it delivered to their yard.

In the past years, BOL has negotiated to purchase more then 150 vessels in the duration of just over five years.

Priya Blue is one of the established and leading recycling units in Alang/Sosiya (Gujarat, India).  It is also a member of the Priya Group of Industries.

Priya Blue has recycled over 43 ships out of which 7 are ULCC’s and 5 were VLCC’s ships.  It has successfully recycled one of the largest passenger vessel Ex SS France Ex SS Norway “BLUE LADY” that was monitored by the Honourable Supreme Court appointed committees to ensure all statutory procedures with respect to safety, health and the environment are fulfilled.  It also has recycled the world’s largest vessel ever built “ST MONT” Ex Jhare Viking Ex Knock Nevis in a record breaking time of 9 Months.

Ship recycling involves processing used materials into new products to prevent wastage of potentially useful materials.  Priya Blue has been one of the companies in India which is able to achieve its purposes.

Now, Priya Blue is in Gujarat, India.  It also has had a ship breaking yard which is also in Gujarat, India.

Sanjay Prataprai Mehta was the founder of the Group which was established in 1983.

During the course of business from 1983 to 1990, the Group had served well‑known Corporate Bodies, Enterprises, Star Trading House, Government Undertakings, etc. in India.

The Priya Blue Group is seeking for opportunities in the Asia Pacific region in order to increase its business portfolio.  Especially from China.

The subject’s total amount outstanding registered with the Companies Registry as at mid-April, 2014 amounted to US$3.0 million.

The subject’s business in Hong Kong is not active.  History in Hong Kong is just over four years and four months.

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.

 

 

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

 

Date

Particulars

Amount

20-01-2011

Instrument:        Letter of Set-off & Appropriation

Property:

The following fixed deposit of A/C No. 037518 placed with Bank of India, Hong Kong Branch and all moneys directly or indirectly deriving therefrom and any other sum of sums which are from time to time deposited by the company with the Bank is as under:-

Deal No.            Date     Amount Due Date

168533  07-02-2011        US$1,500,000    07-02-2012

Mortgagee:        Bank of India, Hong Kong Branch.

Advances and other banking facilities

20-05-2011

Instrument:        Letter of Set-off & Appropriation

Property:

The following fixed deposit of A/C No. 037518 placed with Bank of India, Hong Kong Branch and all moneys directly or indirectly deriving therefrom and any other sum of sums which are from time to time deposited by the company with the Bank is as under:-

Deal No.            Date     Amount Due Date

170434  20-05-2011        USD1,500,000   21-05-2012

Mortgagee:        Bank of India, Hong Kong Branch.

Advances and other banking facilities

22-08-2012

Instrument:        Undertaking Relating to Deposits

Property:

Distinctive         Date of  Amount of         Rate of  Maturity
No. of Receipt    Receipt Deposit (US$)    Interest             Date    

2011 FD 446 2   28-05-2012        $1,003,125.00    1.25%   27-08-2012
2012 FD 62 2     20-08-2012        $1,158,644.81    1.25%   19-11-2012
2012 FD 93 1     04-06-2012        $   844,964,68   1.25%   03-09-2012

Mortgagee:        Indian Overseas Bank, Hong Kong Branch.

All and any liabilities, sole or joint, actual or contingent, quantified or not, now or hereafter owing or designated by the company


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.45

UK Pound

1

Rs.99.46

Euro

1

Rs.79.46

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.