MIRA INFORM REPORT

 

 

Report No. :

347041

Report Date :

31.10.2015

 

IDENTIFICATION DETAILS

 

Name :

WALLON COTTON LTD.

 

 

Registered Office :

Room 405, 4/F., Eastern Commercial Centre, 393-407 Hennessy Road

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

28.04.1997

 

 

Com. Reg. No.:

20930320

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Trader of Cotton.

 

 

No. of Employees :

7

 

 

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 – 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 & address

 

WALLON COTTON LTD.

 

ADDRESS:       Room 405, 4/F., Eastern Commercial Centre, 393-407 Hennessy Road, Hong Kong.

 

PHONE:            852-2891 1165

 

FAX:                 852-2834 5029

 

E-MAIL:            wallon@walloncotton.com

 

MANAGEMENT:

 

Managing Director:  Ms. Lee Mei Yin, Vivienne

 

 

SUMMARY

 

Incorporated on:            28th April, 1997.

 

Organization:                  Private Limited Company.

 

Issued Share Capital:     HK$500,000.00

 

Business Category:       Cotton Trader.

 

Annual Turnover:           HK$120 - 150 million.

 

Employees:                  7.

 

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

 

Banking Relation:           Satisfactory.

 

 

Name

 

WALLON COTTON LTD.

 

 

ADDRESS

 

Registered Head Office:-

Room 405, 4/F., Eastern Commercial Centre, 393-407 Hennessy Road, Hong Kong.

 

Associated Company:-

Shanghai Shuofeng Cotton Co. Ltd.

Flat 102, 10/F., Jing Yuan, 1765 Hongqiao Road, 200336 Shanghai, China.

[Tel: 86-21-6270 1545;  Fax: 86-21-6270 1546]

 

 

BUSINESS REGISTRATION NUMBER

 

20930320

 

 

COMPANY FILE NUMBER

 

0605592

 

 

MANAGEMENT

 

Managing Director:  Ms. Lee Mei Yin, Vivienne

 

 

ISSUED SHARE CAPITAL

 

HK$500,000.00

 

 

SHAREHOLDERS

 

As per registry dated 28-04-2015)

Name

 

No. of shares

LEE Mei Yin

 

350,000

Vily KU

 

150,000

 

 

––––––

 

Total:

500,000

======

 

 

DIRECTORS      

 

(As per registry dated 28-04-2015)

Name

(Nationality)

 

Address

VilY KU

Room B, 15/F., Block 2, Ruby Court, 55 South Bay Road, Hong Kong.

 

Ateng SETIAWAN LIE

123 Kopo Bandung, Indonesia.

 

LEE Mei Yin

Room B, 15/F., Block 2, Ruby Court, 55 South Bay Road, Hong Kong.

 

 

SECRETARY

 

LEE Mei Yin  (As per registry dated 28-04-2015)

 

 

HISTORY

 

The subject was incorporated on 28th April, 1997 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:                                  Cotton Trader.

 

Lines:                                       Cotton.

 

Employees:                              7.

 

Commodities Imported:             US, Southeast Asia, Egypt, India, Pakistan.

 

Markets:                                    Worldwide countries.

 

Annual Turnover:                       HK$120 - 150 million.

 

Terms/Sales:                             L/C or as per contracted.

 

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

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:                             HK$500,000.00

 

Mortgage or Charge (Since July 2010):  (See attachment)

 

Profit or Loss:                                       Making a small profit every year.

 

Condition:                                             Keeping in a satisfactory manner.

 

Facilities:                                              Making rather active use of general banking facilities.

 

Payment:                                              Met trade commitments as required.

 

Commercial Morality:                             Satisfactory.

 

Bankers:-

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

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

 

Standing:                                              Good.

 

 

GENERAL

 

Having issued 500,000 ordinary shares of HK$1.00 each, Wallon Cotton Ltd. is jointly owned by Ms. Lee Mei Yin, holding 70% interests, and Ms. Vily Ku, holding 30%.

 

The subject is a cotton trader.  It has had an associated company in Shanghai, China known as Shanghai Shuofeng Cotton Co. Ltd. [Shuofeng], a China-based firm.  Shuofeng is the branch company of the subject in China.  The contact person of Shuofeng is Mr. Xu Jun who is a Chinese.

 

The subject imports cottons from various sources and markets in China.  The subject imports cotton from the following countries: Sudan, West Africa, India, Pakistan, Egypt, Uzbekistan, Xinjiang of China, Brazil, Uganda, Turkey, Greece, East Africa, Argentina, Parquet.

 

Its business partners are also in Sri Lanka, the United States, Southeast Asia.

 

Cotton is marketed in Hong Kong, China or re-exported to Southeast Asia, especially Indonesia, etc.  One of the directors of the subject Ateng Setiawan Lie is responsible for the business in Indonesia.

 

Most of the subject’s customers are spinning factories in China and Southeast Asia.

 

According to the subject, it is able to provide customers with good quality cotton and efficient logistic services.

 

The annual sales turnover of the subject ranges from HK$120 to 150 million.  Business is profitable and active.

 

As the history of the subject is about 18 years and six months in Hong Kong, on the whole, consider it good for normal business engagements.

 

 

MORTGAGE OR CHARGE

 

(Since July 2010)

 

 

Date

 

Particulars

Amount

02-07-2010

Instrument:        Charge Over Inventory

Property:

The Secured Property, being the Chargor’s right, title and interest, whether present or future, in:-

a) all Goods:

(i)         in respect of which the Collateral manager has issued Warehouse Receipts to the Bank; or

(ii)         held or stored in any of the Warehouses; or

(iii)        under the control or custody of the Collateral Manager;

b) any other cotton, cotton yard or other related goods owned or held, or which come into the possession or control of, the Chargor from time to time; and

c) the Marine Cargo Insurance, the Property Insurance and any other insurance policies relating to the goods referred to in paragraphs (a) and (b) above and the proceeds of any claim under those policies.

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

To secure payment of the Secured Money, being all amounts that, at any time, for any reason or circumstance

13-07-2010

Instrument:        Security Over Deposits

Property:

A deposit with the chargee in the amount of US$1,250,000 under Deposit No. 808-800312

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

(i) all monies in any currency owing by the Company to the Chargee; (ii) interest on such monies; and (iii) all expenses of the chargee in prefecting or enforcing the charge

03-11-2010

Instrument:        Pledge Agreement on Goods and Warehouse Receipt

Property:

1          The Pledgor agrees to create pledges in favor of the Pledgee over the Warehouse Receipt(s) and the Goods.

2.         The Pledgor shall, on demand by the Pledgee or in compliance with the banking facility letter, a collateral management agreement and any other documents.

3.         Before the Secured Liabilities have been fully discharged, upon the request of the Pledgee, the Pledgor shall pledge to the Pledgee such additional Pledged Assets as to ensure that the Security created under the Agreement in favor of the Pledgee is not reduced or impaired.

4.         The Pledgor shall effect all necessary insurances at its own cost and expense, as may be required by the Pledgee.

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

As security for the full and punctual payment, performance and discharge of all and any of all debts and monetary liabilities of the Pledgor to the Pledgee under a banking facility letter dated 2nd July, 2010.

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.22

UK Pound

1

Rs.99.93

Euro

1

Rs.71.67

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TPT

 

               

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.