MIRA INFORM REPORT

 

 

Report No. :

303407

Report Date :

23.01.2015

 

IDENTIFICATION DETAILS

 

Name :

BLUE FABRICS LTD.

 

 

Registered Office :

C/o Buttar.HK Ltd./Buttar Secretarial Services Ltd., Unit B, 1/F., Mau Lam Commercial Building, 16-18 Mau Lam Street, Jordan, Kowloon

 

 

Country :

Hongkong

 

 

Date of Incorporation :

20.10.2003

 

 

Com. Reg. No.:

35571014

 

 

Legal Form :

Private Limited Liability Company

 

 

LINE OF BUSINESS :

THE SUBJECT IS TRADING IN THE FOLLOWING COMMODITIES: HOME TEXTILES, WORK WEAR AND INDUSTRIAL, A COMPLETE RANGE OF FABRICS FROM 100% COTTON, BLENDED AND LYCRA STRETCH BOTTOM WEIGHT & SHIRTING FABRICS, LIKE TWILLS, POPLINS, CANVAS, CORDUROYS, DENIMS, RAYONS, RAMIE, 100% LINEN, LINEN BLENDS LIKE RAYON LINEN, COTTON LINEN, VELVET, 100% POLYESTER & POLYESTER BLENDS LIKE POLY COTTON & CVC, Y/DYED, FLANNEL, SUEDE FABRICS, JACQUARDS, DOBBY, TAPESTRY, CHENILLE FABRICS, LYCRA FABRICS, TERRI TOWEL FABRICS.

 

 

No. of Employees :

No Employees in Hongkong

 

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 Hongkong 

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Hongkong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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

           

BLUE FABRICS LTD.

 

 

ADDRESS

 

Registered Office:-

C/o Buttar.HK Ltd./Buttar Secretarial Services Ltd.

Unit B, 1/F., Mau Lam Commercial Building, 16-18 Mau Lam Street, Jordan, Kowloon, Hong Kong.

 

Associated Company:-

Blue Fabrics Shanghai Ltd.

Room C, 5/F., Building No. 1, 825 Zhaojiabang Road, Shanghai, 200032 China.

[Tel:      86-21-6464 6364

Fax:      86-21-6464 6116

Mobile: 86-1381 7851 363]

 

 

BUSINESS REGISTRATION NUMBER

 

35571014

 

 

COMPANY FILE NUMBER

 

0866909

 

 

DATE OF INCORPORATION

 

20th October, 2003.

 

 

ISSUED SHARE CAPITAL

 

HK$10,000.00

 

 

SHAREHOLDER

(As per registry dated 20-10-2014)

 

Name

 

No. of shares

Subramaniam Shivakumar RAPPAL

 

10,000

=====

 

 

DIRECTOR

(As per registry dated 20-10-2014)

 

Name

(Nationality)

 

Address

Subramaniam Shivakumar RAPPAL

Flat A, 15/F., Pollock Building, 9-10 Tak Hing Street, Kowloon, Hong Kong.

 

 

SECRETARY

(As per registry dated 20-10-2014)

 

Name

Address

Co. No.

Buttar Secretarial Ltd.

Unit 13, 16/F., Asia Trade Centre, 79 Lei Muk Road, Kwai Chung, New Territories, Hong Kong.

2086550

 

 

HISTORY

 

The subject was incorporated on 20th October, 2003 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of Horse International Ltd., name changed to the present style on 15th November, 2006.

 

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

 

 

MORTGAGE OR CHARGE

 

(See attachment)

 

 

GENERAL

 

Having issued 10,000 ordinary shares of HK$1.00 each, Blue Fabrics Ltd. is wholly owned by Mr. Subramaniam Shivakumar Rappal.  He is a Hong Kong ID holder and has got the right to reside in Hong Kong permanently.  He is also the only director of the subject.

 

The subject does not have its own operating office.  Its registered office is in a commercial service firm located at Unit B, 1/F., Mau Lam Commercial Building, 16-18 Mau Lam Street, Jordan, Kowloon, Hong Kong known as Buttar Secretarial Services Ltd. [Buttar] which is handling its correspondences and documents.  Buttar is also the corporate secretary of the subject.  This company has several offices in Hong Kong.  ‘Unit B’ is the file number of the subject in Buttar.

 

The subject has no employees in Hong Kong.

 

The subject has had an associated company Blue Fabrics Shanghai Ltd. [Blue Fabrics Shanghai] which is in Shanghai, China.  Your given phone and fax number 86-21-6464 6364 and 86-21-6464 6116 respectively belong to Blue Fabrics Shanghai.

 

The subject has been banking with Citibank N.A., Hong Kong and The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Blue Fabrics Shanghai is a supplier of woven fabrics as well as garments to foreign customers.  It has had close business ties with leading fabric and garment manufacturers of China.  It also has had good association with China’s textile industry.

 

Blue Fabrics Shanghai can weave fabrics and make garments to the requirements of its customers.

 

Blue Fabrics Shanghai has a dedicated team of professionals providing comprehensive pre-sales and post-sales service.

 

The subject is trading in the following commodities: Home textiles, work wear and industrial, a complete range of fabrics from 100% Cotton, Blended and Lycra stretch bottom weight & shirting fabrics, like Twills, Poplins, Canvas, Corduroys, Denims, Rayons, Ramie, 100% linen, Linen blends like Rayon linen, Cotton linen, Velvet, 100% Polyester & Polyester blends like Poly Cotton & CVC, Y/dyed, Flannel, Suede fabrics, Jacquards, Dobby, Tapestry, chenille fabrics, Lycra fabrics, Terri Towel fabrics.

 

Blue Fabrics Shanghai is an agent of High-end fashion fabrics.  It sells its products to leading Export Houses across India, Sri Lanka and Bangladesh.  Its shipped fabrics are being used for reputed buyers like Eddie Bauer, Gap, M & S, Tommy Hilfiger, Dillard’s, Target, Mervyns’s, Federated Stores, DKNY, Calvin Klein, Levi’s, Charming Shoppe, Lane Bryant, Women’ Secret, Liz Claiborne, Carrefour, Wal-Mart, Style & Co., Sears, May & Co., Etam, JCP, Matalan, Elcorte Ingles, etc.

 

The business of Blue Fabrics Shanghai is chiefly handled by Mr. Subramaniam Shivakumar Rappal himself.  He can be reached at his China mobile phone number 86-1381 7851 363.

 

The subject’s business in Hong Kong is not active.  History in Hong Kong is over eleven years and two 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.

 

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

13-05-2008

Instrument:        Lien & Set-off Agreement

Property:

Deposit No.      Favouring         Amount Due Date

DFN8030482     Blue Fabrics Ltd.           US$100,000      30/06/2008

DFN8040520     Blue Fabrics Ltd.           US$50,000        10/07/2008

DFN8040561     Blue Fabrics Ltd.           US$50,000        25/07/2008

Mortgagee:        HBZ Finance Ltd., Hong Kong.

For securing (general credit facility)

25-07-2008

Instrument:        Lien & Set-off Agreement

Property:

Deposit No.      Favouring         Amount Due Date

DFN8050723     Blue Fabrics Ltd.           US$50,000        27/08/2008

DFN8050738     Blue Fabrics Ltd.           US$10,000        29/08/2008

Mortgagee:        HBZ Finance Ltd., Hong Kong.

For securing (general credit facility)

30-01-2012

Instrument:        Deposit Deed

Property:

By way of a first fixed charge and as a continuing security for the Obligations, the Company charges and assigns absolutely all its rights, title to and interest in the Accounts and all Deposits from time to time in the Accounts and/or comprising the Accounts maintained with Citibank N.A., and branch and/or Citibank (Hong Kong) Ltd.

Mortgagee:        Citibank N.A., Hong Kong Branch.

All  moneys

19-01-2012

Instrument:        Assignment of Life Insurance

Property:

(i)         All the Assignor’s claims, options, privileges, right, title, interest and benefit in and under the Insurance

(ii)         All the Assignor’s claims and rights against the issuer of the Policy upon the terms herein set out as a continuing security for the due and punctual payment of the Secured Monies

Insurance Policy No.:     28003979-50

Name of Insurance:       HSBC Life (International) Ltd.

Name of the Insured:     Rappal Subramaniam Shivakumar

Name of Assignor:        Blue Fabrics Ltd.

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

(i) All and any monies and liabilities; (ii) Interest on such monies; (iii) All monies paid by the Bank; (iv) All expenses of the Bank

25-06-2013

Instrument:        Assignment of Life Insurance

Property:

(i)         All the Assignor’s claims, options, privileges, right, title, interest and benefit in and under the Insurance

(ii)         All the Assignor’s claims and rights against the issuer of the Policy upon the terms herein set out as a continuing security for the due and punctual payment of the Secured Monies

Insurance Policy No.:     28006890

Name of Insurance:       HSBC Life (International) Ltd.

Name of the Insured:     Rappal Subramaniam Shivakumar

Name of Assignor:        Blue Fabrics Ltd.

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

(i) All and any monies and liabilities; (ii) Interest on such monies; (iii) All monies paid by the Bank; (iv) All expenses of the Bank

 

 

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.61.69

UK Pound

1

Rs.93.33

Euro

1

Rs.71.49

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.