MIRA INFORM REPORT

Report No. :	505657
Report Date :	30.04.2018

IDENTIFICATION DETAILS

Name :	HONG KONG POLYCHEM COMPANY LIMITED
Registered Office :	Room 1002, 10/F., Wah Yuen Building, 149 Queen’s Road Central
Country :	Hong Kong
Date of Incorporation :	30.03.2009
Com. Reg. No.:	50526298
Legal Form :	Private Limited Company
Line of Business :	Importer, Wholesaler and Re-exporter of Chemicals, Household Electric Appliances, Toys.
No. of Employees :	5. (Including Associated Companies)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
Hong Kong	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately 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 reexports, 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 continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

Excess liquidity, low interest rates and a tight housing supply have caused Hong Kong property prices to rise rapidly. The lower and middle-income segments of the population increasingly find housing unaffordable.

Hong Kong's open economy has left it exposed to the global economic situation. Its continued reliance on foreign trade and investment makes it vulnerable to renewed global financial market volatility or a slowdown in the global economy.

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 surged from 4.5 million in 2001 to 47.3 million in 2014, outnumbering visitors from all other countries combined. After peaking in 2014, overall tourist arrivals dropped 2.5% in 2015 and 4.5% in 2016. The tourism sector rebounded in 2017, with visitor arrivals rising 3.2% to 58.47 million. Travelers from Mainland China totaled 44.45 million, accounting for 76% of the total.

The Hong Kong Government is promoting the Special Administrative Region (SAR) as the preferred business hub for 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, RMB trade settlement is allowed, and investment schemes such as the Renminbi Qualified Foreign Institutional Investor (RQFII) Program was first launched in Hong Kong. Offshore RMB activities experienced a setback, however, after the People’s Bank of China changed the way it set the central parity rate in August 2015. RMB deposits in Hong Kong fell from 1.0 trillion RMB at the end of 2014 to 559 billion RMB at the end of 2017, while RMB trade settlement handled by banks in Hong Kong also shrank from 6.8 trillion RMB in 2015 to 3.9 trillion RMB in 2017.

Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2015, mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 66% 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. 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 (CEPA), adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, which took effect in March 2015, cover a negative list and a most-favored treatment provision. On the basis of the Guangdong Agreement, the Agreement on Trade in Services signed in November 2015 further enhanced liberalization, including extending the implementation of the majority of Guangdong pilot liberalization measures to the whole Mainland, reducing the restrictive measures in the negative list, and adding measures in the positive lists for cross-border services as well as cultural and telecommunications services. In June 2017, the Investment Agreement and the Agreement on Economic and Technical Cooperation (Ecotech Agreement) were signed under the framework of CEPA.

Hong Kong’s economic integration with the mainland continues to be most evident in the banking and finance sector. Initiatives like the Hong Kong-Shanghai Stock Connect, the Hong Kong- Shenzhen Stock Connect the Mutual Recognition of Funds, and the Bond Connect scheme are all important steps towards opening up the Mainland’s capital markets and have reinforced Hong Kong’s role as China’s leading offshore RMB market. Additional connect schemes such as ETF Connect (for exchange-traded fund products) are also under exploration by Hong Kong authorities. In 2017, Chief Executive Carrie LAM announced plans to increase government spending on research and development, education, and technological innovation with the aim of spurring continued economic growth through greater sector diversification.

Source : CIA

Company name & address

HONG KONG POLYCHEM COMPANY LIMITED

ADDRESS: Room 1002, 10/F., Wah Yuen Building, 149 Queen’s Road Central, Hong Kong.

PHONE: 852-2541 2111

FAX: 852-2854 1094

E-MAIL: appans@netvigator.com

MANAGEMENT

Managing Director: Mr. Lomesh Devdas Appan

SUMMARY

Incorporated on: 30th March, 2009.

Organization: Private Limited Company.

Issued Share Capital: HK$500,000.00

Business Category: Importer, Wholesaler and Re-exporter.

Employees: 5. (Including Associated Companies)

Main Dealing Banker: Indian Overseas Bank, Hong Kong Branch.

Banking Relation: Satisfactory.

Name

HONG KONG POLYCHEM COMPANY LIMITED

ADDRESS

Registered Head Office:-

Room 1002, 10/F., Wah Yuen Building, 149 Queen’s Road Central, Hong Kong.

Subsidiary:-

Hong Kong Polychem Co., Hong Kong. (Same address)

Associated Companies:-(Same address)

Appan & Appan Ltd., Hong Kong. (Dissolved)

Fulbrook Company, Hong Kong.

Hongkong Polychem Company, Hong Kong.

BUSINESS REGISTRATION NUMBER

50526298

COMPANY FILE NUMBER

1330056

MANAGEMENT

Managing Director: Mr. Lomesh Devdas Appan

ISSUED SHARE CAPITAL

HK$500,000.00

SHAREHOLDERS: (As per registry dated 30-03-2018)

Name		No. of shares
Lomesh Devdas APPAN		250,000
Vasudev Devdas APPAN		250,000
		–––––––
	Total:	500,000 ======

DIRECTORS

(As per registry dated 30-03-2018)

Name (Nationality)	Address
Vasudev Devdas APPAN	Room 1002, 10/F., Wah Yuen Building, 148 Queen’s Road Central, Hong Kong.
Lomesh Devdas APPAN	Room 1002, 10/F., Wah Yuen Building, 148 Queen’s Road Central, Hong Kong.

SECRETARY

(As per registry dated 30-03-2018)

Name	Address	Co. No.
Akin Professionals Ltd.	20/F., Champion Building, 287-291 Des Voeux Road Central, Sheung Wan, Hong Kong.	1273165

HISTORY

The subject was incorporated on 30th March, 2009 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, Wholesaler and Re-exporter.

Lines: Chemicals, household electric appliances, toys.

Employees: 5. (Including associated companies)

Commodities Imported: Imported from Europe, India, China, other Asian countries, etc.

Markets: Hong Kong, China, other Asian countries, Europe, etc.

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

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

FINANCIAL INFORMATION

Issued Share Capital: HK$500,000.00

Profit or Loss: Made small profits in the past years.

Condition: Business is normal.

Facilities: Making active use of general banking facilities.

Payment: No Complaints.

Commercial Morality: Satisfactory.

Banker: Indian Overseas Bank, Hong Kong Branch.

Standing: Normal.

GENERAL

Having issued 500,000 ordinary shares of HK$1.00 each, Hong Kong Polychem Company Limited is equally owned by Mr. Lomesh Devdas Appan [L. D. Appan] and Mr. Vasudev Devdas Appan. Both are also directors of the subject. They are Hong Kong ID holders and have got the right to reside in Hong Kong.

The subject has a subsidiary company Hong Kong Polychem Co. located at the same address.

Besides, the subject has had an associated company known as Hongkong Polychem Co. [HPC] also located at the same address. Established on 9th March, 1989, HPC was set up and owned by Mr. L. D. Appan. The subject and HPC are engaged in the same lines of business, more or less.

The subject is a commission agent dealing in chemicals which are chiefly imported from Europe, India, etc. Prime markets are Hong Kong, China and the other Asian countries. Business is normal.

The subject’s industrial chemicals include plastic resin, solvent for printing, textiles and other industrial purpose.

L. D. Appan also operates another firm Fulbrook Co. [Fulbrook] which is also a Hong Kong-registered firm located at the same operating address.

Fulbrook is trading in toys, electric appliances, leather, and the other light industrial products. Commodities are imported from China, India, and Canada. Products are marketed in Hong Kong or re-exported to the other countries.

The Appan family have been in Hong Kong for a very long time. They have developed business ties with a number of firms, of which some are suppliers while some are buyers, in India.

The subject has set up an office in India to facilitate the importation and exportation.

The history of the subject in Hong Kong is over nine years.

The annual sales turnover of the Group ranges from HK$55 to HK$60 million. Business has been active and steady.

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 66.78
UK Pound	1	INR 92.89
Euro	1	INR 80.74
HKD	1	INR 8.45

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

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TPT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.