MIRA INFORM REPORT

 

 

Report No. :

323641

Report Date :

22.05.2015

 

IDENTIFICATION DETAILS

 

Name :

PSONS LTD.

 

 

Registered Office :

Room 3601-3602, 36/F., COSCO Tower, 183 Queen’s Road Central

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

05.07.2004

 

 

Com. Reg. No.:

34705222

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of All kinds of minerals such as coal, raw sapphire, sapphire Ingot, iron ore, thermal coal, manganese ore, steel products, chrome

 

 

No of Employees :

12

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 40.7 million in 2013, 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 48.5% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56.9% 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. As of year-end 2014, the Democracy protests that began in late September probably will have some adverse effects on economic growth, particularly retail sales.

 

Source : CIA

 


Company name & address

 

PSONS  LTD.

 

ADDRESS:       Room 3601-3602, 36/F., COSCO Tower, 183 Queen’s Road Central, Hong Kong.

 

PHONE:            852-2907 7667

 

FAX:                 852-2347 7667

 

E-MAIL:            psons@psons.com

pooja@sons.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Sunil Poddar

 

 

SUMMARY

 

Incorporated on:                        5th July, 2004.

 

Organization:                             Private Limited Company.

 

Capital: Nominal:                       HK$780,000,000.00

            Issued:                         HK$101,908,404.00

 

Business Category:                   Importer, Exporter and Wholesaler.

 

Employees:                              12.

 

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

 

Banking Relation:                      Satisfactory.

 


Company name

 

PSONS  LTD.

 

 

ADDRESS

 

Registered Head Office:-

Room 3601-3602, 36/F., COSCO Tower, 183 Queen’s Road Central, Hong Kong.

 

Shanghai Office:-

A-2406, Far East International Plaza, 319 Xi’an Xia Road, Shanghai, China.

[Tel:      86-21-6208 8744

Fax:      86-21-6209 1951

E-mail:  E-mail: guru@psons.com]

 

Holding Company:-

Pacatolus Holdings Ltd., Mauritius.

 

Affiliated/Associated Companies:-

A.R. Int’l (HK) Ltd., Hong Kong.

A.R.Steel Ltd., Hong Kong.  [Dissolved]

Akshay Software Technologies Ltd., India.

ARA Investments & Finance Ltd., India.

ARA Securities Pvt. Ltd., India.

Crown Labels Pvt. Ltd., India.

Jai Insurance Broking Pvt. Ltd., India.

K9 Technologies Pvt. Ltd., India.

L&T Fashion Incorporate, India.

Lanxin Engineering Pvt. Ltd., India.

Lumen Magnetic Wires Ltd., India.

Plutus Asia Pte. Ltd., Singapore.

Praag S.A., Switzerland.

Psons Foundation Ltd., Hong Kong.

Rachuman China Ltd., Hong Kong.

Seyyone Software Solutions Pvt. Ltd., India.

Subiksha Spinners Ltd., India.

Sunrise Plastech F.Z.C., UAE.

Texuna International Ltd., Hong Kong.  (Same address)

Vishnuram Textiles Pvt. Ltd., India.

Yoha Logistix Pvt. Ltd., India.

etc.


 

BUSINESS REGISTRATION NUMBER

 

34705222

 

 

COMPANY FILE NUMBER 

 

0909863

 

 

MANAGEMENT

 

Managing Director:  Mr. Sunil Poddar

Contact Person:  Ms. Rukhsana Gulzar

 

 

CAPITAL

 

Nominal Share Capital: HK$780,000,000.00 (Divided into 780,000,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$101,908,404.00

 

 

SHAREHOLDER  

 

(As per registry dated 05-07-2014)

Name

 

No. of shares

Pacatolus Holdings Ltd.

St. James Court, Suite 308, St. Denis Street, Port Louis, Mauritius.

 

101,908,404

=========

 

 

DIRECTORS

 

(As per registry dated 05-07-2014)

Name

(Nationality)

 

Address

Pradeep Phulchand AGARWAL

Plot No. 4, Villa B, Pockhanwala Road, Near Godrej Tower, Worli Seaface, Worli, Mumbai 400030, India.

 

Sujit Govindrao PARSATWAR

5 Serenity, Nariman Road, Vile Parle (East), Mumbai‑40057, India.

 

Sunil PODDAR

Flat B, 25/F., South Tower 2, Residence Bel-Air, Island South, 38, Bel-Air Ave, Hong Kong.

 

 

SECRETARY 

 

(As per registry dated 01-03-2015)

Name

Address

Mukesh BAGRI

Room 3601-3602, 36/F., COSCO Tower, 183 Queen’s Road Central, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 5th July, 2004 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of Psons Ltd., name changed to Pson Ltd. on 17th August, 2007 and changed back to the present style on 4th March, 2008.

 

Formerly the subject was located at Flat A, 19/F., On Hing Building, 1 On Hing Terrace, Central, Hong Kong, moved to 22/F., Hong Kong Diamond Exchange Building, 8-10 Duddell Street, Central, Hong Kong in June 2010 and further to the present address in October 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 minerals such as coal, raw sapphire, sapphire Ingot, iron ore, thermal coal, manganese ore, steel products, chrome, etc.

 

Employees:                  12.

 

Commodities Imported: India, South America, etc.

 

Markets:                        China, other Asian countries, etc.

 

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

 

Terms/Buying:               L/C, T/T, D/P, etc.

 

 

MEMBERSHIP    

 

The Indian Chamber of Commerce Hong Kong, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:                          HK$780,000,000.00 (Divided into 780,000,000 shares of HK$1.00 each)

 

Issued Share Capital:                             HK$101,908,404.00

 

 

Increase of Nominal Capital:-

From

HK$15,600,000.00

to

HK$780,000,000.00

on

28-09-2009

 

Alternation of Issued Capital:-

Initially

paid up

HK$  15,600,000.00

28-09-2009

paid up

HK$  85,255,404.00

29-03-2010

paid up

HK$    1,053,000.00

 

 

–––––––––––––––––

Total:

paid up

HK$101,908,404.00

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

 

Mortgage or Charge (since 2013):           (See attachment)

 

Profit or Loss:                                       Making a small profit every year.

 

Condition:                                             Keeping in an active and steady manner.

 

Facilities:                                              Making active use of general banking facilities.

 

Payment:                                              Met trade commitments as required.

 

Commercial Morality:                             Satisfactory.

 

Bankers:-

Bank of India, Hong Kong Branch.

ABN AMOR Bank N.V., the Netherlands.

Allahabad Bank, Hong Kong Branch.

Bank of Baroda, Hong Kong Branch.

Canara Bank, Hong Kong Branch.

UCO Bank, Hong Kong Branch.

Union Bank of India, Hong Kong Branch.

 

Standing:                                              Very Good.

 

 

GENERAL

 

Psons Ltd. formerly was a wholly-owned subsidiary of Psons Holdings Ltd. which was a Mauritius-registered firm.  Now, the holding company of the subject is Pacatolus Holdings Ltd., also a Mauritius-registered firm.

 

The subject in fact is an Indian firm owned by India passport holders.  The main office of the subject, also known as Psons Ltd. [Psons], is in Mumbai, India.  It is chiefly a mining company.

 

Besides the subject, Psons also has set up offices in Shanghai, China and Dubai of the United Arab Emirates, Singapore, Indonesia, India, South Africa, and Brazil.

 

The subject started operations in 2004 and has since been growing its business over the years.  It is chiefly trading in raw materials for steel making.

 

In 2011, the subject shipped over 3.8 million tons of iron ore to its worldwide customers.  Now, its annual shipping volume is over 4 million tons.

 

The subject sources iron ore from India, Indonesia, Norway and Africa.  It predominantly sources directly from the mining companies.  It plans to further increase the size and extent of its global sourcing in the years ahead as the demand has been increasing.  It has developed strong relationships with its suppliers and has also entered into long term sourcing arrangements with them.

 

The subject is also trading in the following commodities: Coal, Gants Mod Port Processing Park, Mineral Rough, Charcoal Briquette, Steel Products, Chrome, Manganese, Aluminium, Bitumen, Cotton, Clinkers, etc.

 

Since 2008, the subject has been handling the chartering of vessels in-house through its Singapore office.  It has a professional team who have established good business ties with some of the major global shipping companies.  Other than in-house chartering, the logistics division increasingly handles chartering for third parties as well.

 

The subject has established a marketing office in Shanghai since its inception.  Besides, it also has opened an office in Beijing, China.  In recent years, a subsidiary has been set up in Australia.

 

With a view to integrate its business and bring in long term sustainable growth, the subject has invested in iron ore mines in Brazil and coal mine in Indonesia.  As iron ore and coal are the two major raw materials to produce steel, the subject is trying to become a strong global supplier of these two commodities.  It is also trying to source iron ore from Australia, Malaysia, the Middle East, Europe and Latin America, etc.

 

Psons is one of the largest exporters of iron ore to China from different countries.

 

The history of the subject is over ten years and ten months in Hong Kong.  Business in Hong Kong is chiefly handled by Ms. Rukhsana Gulzar who is also an Indian.

 

Mr. Pradeep Phulchand Agarwal is the executive Chairman of Psons and also one of the directors of the subject.  Agarwal is also managing director of Phulchand Exports Ltd. which is an India-based company.

The subject is fully supported by its main office in Mumbai, India.  The annual sales turnover of the Group is quite significant, ranges from US$700 to 800 million.  Business is active and steady.

 

On the whole, in view of the subject’s lines of business and background, consider it good for normal business engagements.

 

 

REMARKS

 

Brief personnel profile of director:-

 

Mr. Pradeep Phulchand Agarwal is the executive chairman of Psons.  He has over 2 decades of experience in international trading of a wide range of commodities such as metals, minerals, agro-products and chemicals.  He is also the Managing Director of Phulchand Exports Ltd, Mumbai which has won many accolades from the Indian Government for his performance in commodity exports.  Mr. Pradeep Agarwal has also successfully expanded into apparel manufacturing and established Prateek Apparels Pvt. Ltd in 1995.  Prateek Apparels currently is one of the largest apparel manufacturers in India.

 

Mr. Pradeep P Agarwal obtained his MBA degree from Switzerland and also received a bachelor’s degree in commerce from University of Bombay, India.

 

 

MORTGAGE OR CHARGE

 

(Since 2013)

 

Date

Description of Instrument

Mortgagee

25-01-2013

Memorandum

Bank of Baroda, Hong Kong Branch.

14-02-2013

Deed of Assignment

ABN AMRO Bank N.V., Gustav Mahlerlaan 10, 1082 PP Amsterdam, The Netherlands.

14-02-2013

Charge on Deposit

Union Bank of India, Hong Kong Branch.

28-02-2013

Undertaking Relating to Deposits

Canara Bank, Hong Kong Branch.

06-03-2014

General Letter of Hypothecation

Allahabad Bank, Hong Kong Branch.

02-05-2014

Security Assignment

ABN AMRO Bank N.V., Gustav Mahlerlaan 10, 1082 PP Amsterdam, The Netherlands.

24-06-2014

Charge on Deposit

Union Bank of India, Hong Kong Branch.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 63.70

UK Pound

1

Rs. 98.91

Euro

1

Rs. 70.66

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

Report Prepared by :

DPT

 

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.