MIRA INFORM REPORT

 

 

 

Report Date :

18.08.2008

 

IDENTIFICATION DETAILS

 

Name :

NIIDO LEATHER BAG & BELT MANUFACTURING COMPANY

 

 

Registered Office :

Flat 14, 3/F, Wah Yiu Ind'l Ctr, 30-32 Au Pui Wan Street, Fotan, Shatin, N.T

 

 

Country :

Hong Kong

 

 

Financials (as on) :

31.03.2001

 

 

Date of Incorporation :

1989

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Manufacturer and Exporter of Leather Wallet and Handbag for Men and Ladies

 

 

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

 

Maximum Credit Limit :

USD 20,000.00

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

name of the company

 

NIIDO LEATHER BAG & BELT MANUFACTURING COMPANY

 

Business Address

Flat 14, 3/F, Wah Yiu Ind'l Ctr
30-32 Au Pui Wan Street
Fotan, Shatin
N.T
Hong Kong
Tel: +852-26011131
Fax: +852-26011470

 

 

CREDIT RECOMMENDATION

 

Credit requested: USD 500,000.00
Credit limit: USD 20,000.00

Opinion: Requires guarantees

 

 

 

 

 

SUMMARY

 

 

Founded:

1989

Legal form:

Sole Proprietorship

Registration date:

01.09.1989

ACTIVITY:

Manufacturer & Exporter

Main Products:

Leather Wallet & Handbag for men & ladies

Staff:

257 (7 in Hong Kong, 250 in PR China)

Financial situation:

Modest but ordered

Turnover:

HKD 21.00 Mio.

Payments:

Payments are made according to terms

Litigation:

clear

 

 

Registration status: 1989 - Registered company
Activity status: 1989 - Active company

 

 

 

 

IDENTIFICATION

 

 

Name:                       Niido Leather Bag & Belt Manufacturing Company

Telephone:                 +852-26011131

Fax:                          +852-26011470

 

Business Address:    Flat 14, 3/F, Wah Yiu Ind'l Ctr
30-32 Au Pui Wan Street
Fotan, Shatin
N.T
Hong Kong
Tel: +852-26011131
Fax: +852-26011470

                               

Registered Address:  Flat 14, 3/F, Wah Yiu Ind'l Ctr
30-32 Au Pui Wan Street
Fotan, Shatin
N.T
Hong Kong

                               

 

 

 

HISTORY AND REGISTRATION

 

 

Founded:

1989

 

Legal form:

Sole Proprietorship

 

Registration date:

01.09.1989

 

BR Number:

13037492



Subject is an unlimited company and therefore has no record under the Companies Registry, does not have a paid-up capital and has unlimited liability.

 

 

SHAREHOLDERS     

 

DOO Yuen Chiu, David
12E, G/F, Tung Lo Wan Villas
On Ting Terrace
Shatin
Hong Kong

Proprietor

 

 

MANAGEMENT

 

 

 

Management Assessment

The management is deemed to have sufficient experience and industry expertise to manage subject properly. Experience accumulated is well relevant to present position.
Subject is a relatively small entity. There is simple division of management functions and responsibilities evident. One or two key figures are responsible for overall management.

 

 

 

 

ACTIVITY

 

NATURE OF BUSINESS:

Manufacturer & Exporter & Wholesaler

 

NACE:

4624 Wholesale of hides, skins and leather

 

Main products:

Leather Wallet & Handbag for men & ladies

 

Other products:

PVC Wallet and Handbags

 

 

 

Activity comment:

Subject is engaged in manufacturing, wholesaling and exporting of leather bags and wallet.

Sources are mainly purchased in Italy, Korea, USA and Thailand. Some will purchased in HK. production is conducted in the joint venture factory in Shenzhen, PR China with 250 workforces. Subject 's market includes Japan, USA and Europe.

Basic traffic of phone calls, deliveries of documents, visitors indicates that subject is performing barely adequate level of daily business activities with little functional divisions and business structures. Operations are observed to be simply organized with minimal number of staff.

 

 

 

Manufacturing in PR China:

Number of staff: 250
Location: Shenzhen
Type: Joint-venture

 

 

MARKETS

 

 

PR China 10%
Payment terms:
L/C (letter of credit)
COD (cash on delivery)
T/T At sight

Japan, United States, Europe 90%
Payment terms:
L/C (letter of credit)

 

 

 

PURCHASES

 

 

Local
Payment terms:
O/A (open account) 30 days
COD (cash on delivery)

Italy, Korea, Republic of, United States, Thailand
Payment terms:
L/C (letter of credit)
T/T At sight

 

 

PREMISES

 

Address:

Flat 14, 3/F, Wah Yiu Ind'l Ctr
30-32 Au Pui Wan Street
Fotan, Shatin
Hong Kong

Type of premises:

office premises

Type of ownership:

Premises reportedly owned by subject

Area:

Industrial

Condition:

reasonable

Equipment:

Properly equipped and maintained


Subject is located in a fair industrial building. Reasonable computing equipment was observed at captioned premise with enough basic office facilities.

 

 

 

STAFF:

Total staff: 257 (shared with related concern)

Staff in Hong Kong: 7

Staff in PR China: 250

 

 

IMPORTANCE:          Small Company

 

 

 

AFFILIATION:

Related company:

Blue Bay Pool Service Co.
Rm 14, 3/F, Wah Yiu Ind Centre
30-32 Au Pui Wan Street
Fo Tan
N.T
Hong Kong

Founded: 1984
Legal form: Unlimited Company
Bus.Reg.Cert.Num: 08908648
ACTIVITY: Services
Main Products: Plastic Mould
Staff: 7 in Hong Kong
Litigation records: clear

 

 


Engaged in the business of swimming pool products.

 

 

 

 

FINANCE

 

 

Financial situation:

Modest but ordered

 

Status of company:

Properly run

 

Business trends:

Stagnant

 

 

 

Direct interview:

Ms. Chan on 12.08.2008

 

 

 

Financial data source:

Declined to disclose financial information

 

 

 

Financial data:

Amounts shown in Hong Kong Dollar (HKD) Thousand 

31.03.2001

31.03.2000

31.03.1999

 

Turnover

21,000.00

19,000.00

18,000.00

 

Profit after Tax

1,500.00

1,300.00

1,200.00

 

Stocks

800.00

750.00

1,000.00

 

Accounts receivable

800.00

500.00

500.00

 

Trade creditors

500.00

 

 


Subject declined to disclose financial information on the ground of undisclosed identity of the ultimate enquiry under its company policy.

Subject claimed that management staffs Mr Doo David and Mr Jimmy To were not in the office during our interview but Ms Chan was contacted. However, she declined to disclose financial information.

Based on subject's scope of business and the size of operation, subject seems to have reasonable turnover and profit margin. Subject's turnover could be estimated as HKD 23 million in the fiscal year 2007.

 

 

 

Ratios:

 

31.03.2001

31.03.2000

31.03.1999

Net profit margin (%)
Profit after tax / Turnover * 100

7.14

6.84

6.67

Receivables turnover (times)
Turnover / Accounts Receivable

26.25

38

36

 

 

Bankers:

DBS Bank (Hong Kong) Limited
, 11/F, The Center 99 Queen's Road Central

 

 

 

Facilities:

L/C, O/D from Dao Heng Bank ltd : 2 million (previous record)

 

 

 

Payments:

Payments are made according to terms

 

 

 

Litigation records:

clear
on subject: clear
on Doo Yuen Chiu, David: clear

 

 

 

Insolvency Information:

According to available information sources the company is not in a insolvency/Preliminary/debt regulation proceeding.

 

 

 

Negative file check:

clear

 

 

 

Company comment:

Subject is considered good for limited credit. Normal business is carried out with necessary resources. Subject is capable of meeting usual daily commitments. But it is sensitive to unfavorable conditions which may cause financial difficulties. Unsecured credit should only be granted in small amount with regular monitoring.

 

 

 

 

Macro Economic Indicator - Hong Kong

(USD billions)

2003

2004

2005

2006

2007 (f)

2008 (f)

Economic growth (%)

3.2

8.6

7.5

6.9

5.6

5.3

Inflation (%)

-1.9

0.3

1.4

2.3

3.0

3.1

Public sector balance (%GDP)

-3.3

1.7

1.0

2.7

2.7

3.0

Exports

224.7

260.3

289.5

317.6

343.3

381.9

Imports

230.4

269.6

297.2

331.7

362.6

400.2

Trade balance

-5.8

-9.3

-7.6

-1.4

-2.0

-1.8

Current account balance

16.5

15.7

20.2

20.2

20.1

24.6

Current account balance (%GDP)

10.4%

9.5%

11.4%

10.6%

9.9%

11.1%

Foreign debt

37.8%

41.0%

40.7%

38.0%

36.3%

35.4%

Debt service (%Exports)

1.8%

2.1%

2.2%

2.3%

2.1%

2.0%

Currency reserves (import months)

4.8

4.2

3.7

3.4

3.2

3.0

(e)estimate (f)forecast

 

 

 


COUNTRY RATING (Hong Kong)

Rating : A1

The steady political and economic environment has positive effects on an
already good payment record of companies.Very weak default probability.

For further information of country rating and payment experience such as
Assets – weaknesses – risk outlook; Industries overview; Insolvency trend;
Means of payment and collection methods; and Non payment index,
please visit our group’s official homepage at www.cofacerating.com or go
directly to your interest at www.cofacerating.com/anglais/home/Country.html

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.43.23

UK Pound

1

Rs.80.89

Euro

1

Rs.63.80

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. 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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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