MIRA INFORM REPORT

 

 

Report No. :

354292

Report Date :

11.12.2015

 

IDENTIFICATION DETAILS

 

Name :

SINOTRADE  GLOBAL  LTD.

 

 

Registered Office :

C/o Prima Secretaries Ltd., Suite 605, 6/F., China Insurance Group Building, 141 Des Voeux Road Central

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

15.09.2004

 

 

Com. Reg. No.:

34918706

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject is engaged in trading of leather chemicals, consumer electronics, textile products, fabrics, silk yarn, cotton yarn, furniture, textile products, garments, gifts, novelties, tableware, hotel ware, iron ore, cement/clinker

 

 

No. of Employee :

No employees in Hong Kong.

 

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.

 

 

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 12.5% of total system deposits in Hong Kong by the end of 2014. 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 47.3 million in 2014, 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 2014 mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% 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 4.4% in 2014. 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 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies.

 

Source : CIA

 

Company name

 

SINOTRADE  GLOBAL  LTD.

 

 

Address

 

C/o Prima Secretaries Ltd., Suite 605, 6/F., China Insurance Group Building, 141 Des Voeux Road Central, Hong Kong.

 

Associated Companies:-

Feather Touch Ltd., Hong Kong.

Sinotrade International Ltd., China.

Finkotech Ltd., Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

34918706

 

 

COMPANY FILE NUMBER

 

0922746

 

 

MANAGEMENT

 

Managing Director:  Mr. Anand Kumar Damani

 

 

ISSUED SHARE CAPITAL

 

HK$3,900,000.00

 

 

SHAREHOLDER

 

(As per registry dated 15-09-2015)

Name

 

No. of shares

Anand Kumar DAMANI

 

3,900,000

=======

 

 

DIRECTOR

 

(As per registry dated 15-09-2015)

Name

(Nationality)

 

Address

Anand Kumar DAMANI

Block A, 23D, Regal Court, 75 Longkou Xi Road, Guangzhou, Guangdong Province, China.

 

 

SECRETARY

 

(As per registry dated 15-09-2015)

Name

Address

Co. No.

Prima Secretaries Ltd.

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

0569406

 

 

HISTORY

 

The subject was incorporated on 15th September, 2004 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at Suite 1402, 14/F., 1 Duddell Street, Central, Hong Kong where was the operating office of Prima Secretaries Ltd., Prima Secretaries Ltd. moved to the present address with effect from 28th September, 2009.

The subject has increased its issued share capital from HK$780,000.00 to HK$3,900,000.00 in October 2014.

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

 

INDEBTEDNESS

 

US$464,310.45 (Total amount outstanding on all mortgages and charges as per last Annual Return dated 15-09-2015)

 

MORTGAGE OR CHARG

 

See attachment

 

 

GENERAL

 

Having issued 3.9 million ordinary shares of HK$1.00 each, Sinotrade Global Ltd. is wholly owned by Mr. Anand Kumar Damani who is an Indian.  He is an India passport holder

Formerly the directors of the subject were Mr. Indra Kumar Bagri and Mr. Anand Kumar Damani, but now the former has outgone.  A K Damani is the only director of the subject who is residing in Guangzhou, Guangdong Province, China.

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, Hong Kong known as Prima Secretaries Ltd. [Prima] which is handling its correspondences and documents.  This firm is also the corporate secretary of the subject.  Formerly Prima was located at Suite 1402, 14/F., 1 Duddell Street, Central, Hong Kong, moved to the present address with effect from 28th September, 2009. 

The subject has no employees in Hong Kong.

To our knowledge, the subject has had an associated company in Hong Kong known as Feather Tough Ltd. [Feather Tough] which is also located at the operating office of Prima.  The operations of Feather Tough is also in Guangzhou, Guangdong Province, China.  The subject and Feather Tough are engaged in the same lines of business.

The subject is trading in the following commodities:

Leather chemicals, consumer electronics, textile products, fabrics, silk yarn, cotton yarn, furniture, textile products, garments, gifts, novelties, tableware, hotel ware, iron ore, cement/clinker.

Most of the products are sourced from China.  However, garments, yarns and light industrial products trading are the main lines of business of the subject.  Prime markets are India, other Asian countries, Australia, Germany, the United Kingdom, other European countries, and North America.

The subject has had another associated company bearing the name of Sinotrade International Ltd.[China Sinotrade] in Guangzhou, Guangdong Province, China.  It is reprorted that China Sinotrade was set up in 1997.

Most of the time, A K Damani is residing in Guangzhou, Guangdong Province, China.  The business of China Sinotrade in China is satisfactory.

The history of the subject in Hong Kong is over eleven years and a month.

The subject also has had an associated firm in India.

It has been banking with Bank of Baroda, Hong Kong Branch.

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

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

13-05-2011

Instrument:      Memorandum

Property:

Distinctive
No. of Receipts        Date of Issue          Amount             Due Date

91210300004225       22-07-2010       US$211,000.00        22-07-2011

Mortgagee:      Bank of Baroda, Hong Kong Branch.

Loan or credit or other facilities

16-09-2011

Instrument:      Memorandum

Property:

Distinctive
No. of Receipts        Date of Issue          Amount             Due Date

91210300004968       26-05-2011       US$  40,000.00        28-11-2011
91210300004225       22-07-2011       US$213,310.45        23-07-2012

Mortgagee:      Bank of Baroda, Hong Kong Branch.

Loan or credit or other facilities

 

 

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.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.79

UK Pound

1

Rs.101.37

Euro

1

Rs.73.46

HKD

1

Rs.8.63

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

TRU

 

 


 

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.