3decades

MIRA INFORM REPORT

Report No. :	510725
Report Date :	26.05.2018

IDENTIFICATION DETAILS

Name :	KANWAL DUROPARTS (HONGKONG) PVT LIMITED

Registered Office :	C/o Excel Registrations Ltd. Room 1905, 19/F., Nam Wo Hong Building, 148 Wing Lok Street, Sheung Wan

Country :	Hong Kong

Date of Incorporation :	26.03.2008

Com. Reg. No.:	39073353

Legal Form :	Private Limited Liability Company

Line of Business :	The subject is a well reputed Trading Company dealing in various type of Automobile Parts & Recreational Vehicles Accessories, towing & Custom manufactured Parts.

No. of Employees :	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 Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating

Explanation

Rating Comments

Medium High Risk

Business dealings permissible preferably on secured basis

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Hong Kong

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

KANWAL DUROPARTS (HONGKONG) PVT LIMITED

ADDRESS

Registered Office:-

C/o Excel Registrations Ltd.

Room 1905, 19/F., Nam Wo Hong Building, 148 Wing Lok Street, Sheung Wan, Hong Kong.

Holding Company:-

Kanwal Duroparts Pvt Ltd., India.

China Representative Office:-

India Kanwal Duroparts Pvt. Ltd.

Room # 1906, Xian Yue Garden, 489, Xian Yue Road, Xiamen 361012, China.

[Tel: 86-592-5851341

Fax: 86-592-5851340

E-mail: sales@hkduroparts.com]

US Office:-

1831, Fairgreen Drivefullerton, CA 92833c U.S.A.

[Tel: 001-714-879-7800

Fax: 001-909-735-9645

E-mail: singhparry@hkduroparts.com]

BUSINESS REGISTRATION NUMBER

39073353

COMPANY FILE NUMBER

1220062

DATE OF INCORPORATION

26th March, 2008.

ISSUED SHARE CAPITAL

HK$1,500,000.00

SHAREHOLDER

(As per registry dated 26-03-2018)

Name

No. of shares

Kanwal Duroparts Pvt Ltd.

Opp Pseb Sub Station, Phase VIII, Dhandari Kalan, Focal Piint, Ludhiana-141010, India.

1,500,000

=======

DIRECTORS

(As per registry dated 26-03-2018)

Name

(Nationality)

Address

Pio Jr PATERNO

104 San Antonio St., San Antonio Quezon City, Manila, Philippines.

Amardeep Singh

602-R, Model Town, Ludhiana Punjab, India.

SECRETARY: (As per registry dated 26-03-2018)

Name	Address	Co. No.
Excel Registrations Ltd.	Room 1905, 19/F., Nam Wo Hong Building, 148 Wing Lok Street, Sheung Wan, Hong Kong.	1046730

MORTGAGE OR CHARGE

Date of Security Over Deposits with the Bank Limited Company – Under Hand: 25-06-2008

Amount: To secure all monies in respect of banking facilities owing at anytime plus interest and all expenses

Property: Initially US$5,000 and all monies whether now or hereafter standing to the credit of the Company’s deposit with the Bank under deposit number 400-522504-838

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

GENERAL

Kanwal Duroparts (Hongkong) Pvt Limited was incorporated on 26th March, 2008 as a private limited liability company under the Hong Kong Companies Ordinance.

The subject does not have its own operating office. Its registered office is in a commercial service firm located at ‘Room 1905, 19/F., Nam Wo Hong Building, 148 Wing Lok Street, Sheung Wan, Hong Kong’ known as ‘Excel Registrations Ltd.’ [Excel] which is handling its correspondences and documents. Excel is also the corporate secretary of the subject.

The subject has no employees in Hong Kong.

According to the Companies Registry of Hong Kong, the subject has issued 1.5 million ordinary shares of HK$1.00 each which are wholly-owned by Kanwal Duroparts Pvt Ltd. [Kanwal Duroparts] which is an India-based company.

The directors of the subject are Mr. Pio Jr Paterno and Mr. Amardeep Singh. The former is a Pilipino merchant holding a Pilipino passport, while the second is an India merchant holding an India passport.

The two directors do not have the right to reside in Hong Kong.

The subject is a well reputed Trading Company dealing in various type of Automobile Parts & Recreational Vehicles Accessories, towing & Custom manufactured Parts.

The subject’s products are made to satisfy the requirements of its customers.

Kanwal Duroparts has a manufacturing facility located in the city of Ludhiana, North India.

The products of Kanwal Duroparts are marketed in China, exported to the other Asian countries, Europe and the United States.

The subject’s business in Hong Kong is not active. History in Hong Kong is over ten years and a month.

On the whole, 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.

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	INR 68.26
UK Pound	1	INR 91.22
Euro	1	INR 79.88
HKD	1	INR 8.63

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

INFORMATION DETAILS

Analysis Done by :	VIV

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.