MIRA INFORM REPORT

PRELIMINARY REPORT

 

 

Report Date :           

17.04.2012

 

IDENTIFICATION DETAILS

 

Name :

SCORPIO ENTERPRISES CO.  LTD.

 

 

Registered Office :

Flat B, 9/F., Season Commercial Building, 3 Humphreys Avenue, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

02.06.1992

 

 

Com. Reg. No.:

15769554

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products, emerald, precious stones, etc

 

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 :

Regular

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

Hong Kong

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 Bottom of Form

 

Company name

 

SCORPIO  ENTERPRISES  CO.  LTD.

 

 

Company ADDRESS

 

Flat B, 9/F., Season Commercial Building, 3 Humphreys Avenue, Tsimshatsui, Kowloon, Hong Kong.

PHONE:            2311 0081

FAX:     2311 0012

E-MAIL:            wongngfamily@yahoo.com.hk

 

 

MANAGEMENT

 

Managing Director:  Mr. Ng Chi Kwong

 

 

SUMMARY

 

Incorporated on:             2nd June, 1992.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$2,000,000.00

 

Issued:              HK$2,000,000.00

 

Business Category:        Diamond Trader.

 

Employees:                   6.

 

Main Dealing Banker:     Wing Lung Bank Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.


COMPANY ADDRESS

 

Registered Head Office:-

Flat B, 9/F., Season Commercial Building, 3 Humphreys Avenue, Tsimshatsui, Kowloon, Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

15769554

 

 

COMPANY FILE NUMBER 

 

0359744

 

 

MANAGEMENT

 

Managing Director:         Mr. Ng Chi Kwong

Contact Person:             Ms. Wong Yee Ching, Winnie

 

 

CAPITAL

 

Nominal Share Capital: HK$2,000,000.00 (Divided into 2,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$2,000,000.00

 

 

SHAREHOLDER

(As per registry dated 02-06-2010)

 

Name

 

No. of shares

NG Chi Kwong

 

2,000,000

=======

 


DIRECTOR    

(As per registry dated 02-06-2010)

 

Name

(Nationality)

 

Address

NG Chi Kwong

Penthouse No. 22A of House 22A, Forest Hill, 31 Lo Fai Road, Tai Po, New Territories, Hong Kong.

 

 

SECRETARY 

(As per registry dated 02-06-2010)

 

Name

Address

Co. No.

Sam Wang Ltd.

Room 2009, 20/F., Hang Bong Commercial Centre, 28 Shanghai Street, Kowloon, Hong Kong.

0525239

 

 

HISTORY

 

The subject was incorporated on 2nd June, 1992 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, Exporter and Wholesaler.

 

Lines:                           All kinds of diamonds and jewellery products, emerald, precious stones, etc.

 

Employees:                   6.

 

Commodities Imported:   India, Belgium, other European countries, etc.

 

Markets:                       China, Japan, South Korea, Taiwan, Southeast Asia, other Asian countries, Africa,

Australia, Eastern Europe, Middle East, North America, Central & South America, Scandinavia, Western Europe, etc.

 

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

 

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

 

FINANCIAL INFORMATION

 

Nominal Share Capital:               HK$2,000,000.00 (Divided into 2,000,000 shares of HK$1.00 each)

 

Issued Share Capital:                 HK$2,000,000.00

 

Mortgage or Charge:                   (See attachment)

 

Profit or Loss:                            Making a small profit every year.

 

Condition:                                  Keeping in an active and satisfactory manner.

 

Facilities:                                  Making active use of general banking facilities.

 

Payment:                                  Met trade commitments as contracted.

 

Commercial Morality:                 Satisfactory.

 

Banker:                                     Wing Lung Bank Ltd., Hong Kong.

 

Standing:                                  Normal.

 

 

GENERAL

 

Having issued 2 million ordinary shares of HK$1.00 each, Scorpio Enterprises Co. Ltd. is wholly-owned by Mr. Ng Chi Kwong who is a Hong Kong merchant.  Ng is also the only director of the subject.

Incorporated in June 1992, the subject is a diamond importer, exporter and wholesaler.  It is trading in bracelets, brooches, earrings, necklaces, rings, pendants, etc.  Rough diamonds, polished and cut diamonds are imported from India, Belgium and other European countries, etc.  Some of the rough diamonds are polished or processed in Hong Kong.

It is reported that the subject has had an affiliated factory in Southern China employing about 100 persons.  However, details are unknown.  Finished products and polished diamonds are marketed in Hong Kong and China or exported to South Korea, Taiwan, Southeast Asia, other Asian countries, Africa, Australasia, Eastern Europe, the Middle East, North America, Central & South America, Scandinavia, Western Europe, etc.  Business is rather active.  Regular suppliers and foreign customers have been maintained.

The subject’s business is chiefly handled by Ms. Winnie Wong Yee Ching who is the contact person of the subject.  Wong is a Hongkonger.

The subject owns a number of premises in Hong Kong which have been mortgaged to Wing Lung Bank Ltd., a Hong Kong-based bank, for securing general banking facilities.

The subject’s history in Hong Kong is over eighteen years and eleven months.  Overall business is active and satisfactory.

On the whole, consider the subject good for normal business engagements.

 

REMARKS:

 

Court Cases:      None per our.

 

Property information of the company:-

1.     Property Location:       Flat A on 21/F. of Block 5, Sun Tuen Mun Centre,
55-65 Lung Mun Road, Tuen Mun, New Territories, Hong Kong.

Owner:     Scorpio Enterprises Co. Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

18-04-1994

-

Wing Lung Bank Ltd., Hong Kong.

Mortgage to secure general banking facilities

12-06-1995

-

- ditto -

Second mortgage

 

2.     Property Location:       Flat A on 10/F., Luxury Court, 9 Hau Fook Street, Kowloon, Hong Kong.

Owner:     Scorpio Enterprises Co. Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

10-01-1996

-

Wing Lung Bank Ltd., Hong Kong.

Mortgage to secure general banking facilities

 

 


MORTGAGE OR CHARGE

 

Date

Particulars

Amount

18-04-1994

Instrument:      Mortgage

Property:

13/41,800th parts or shares of and in Tuen Mun Town Lot No. 289 [Flat A on 21/F. of Block 5 (formerly known as Tower 5) of Sun Tuen Mun Centre, 55-65 Lung Mun Road, Tuen Mun, New Territories, Hong Kong.]

Mortgagee:      Wing Lung Bank Ltd., Hong Kong.

HK$900,000

12-06-1995

Instrument:      Second Mortgage

Property:

13/41,800th parts or shares of and in Tuen Mun Town Lot No. 289 [Flat A on 21/F. of Block 5 (formerly known as Tower 5) of Sun Tuen Mun Centre, 55-65 Lung Mun Road, Tuen Mun, New Territories, Hong Kong.]

Mortgagee:      Wing Lung Bank Ltd., Hong Kong.

To secure all moneys in respect of general banking facilities

10-01-1996

Instrument:      Mortgage

Property:

4/458th parts or shares of and in Kowloon Inland Lot No. 7910, 8102 & 8510 [Flat A on 10/F. of Luxury Court, 8‑9A Hau Fook Street (now known as 9 Hau Fook Street), Kowloon, Hong Kong.]

Mortgagee:      Wing Lung Bank Ltd., Hong Kong.

To secure all moneys in respect of general banking facilities

 


DIAMOND INDUSTRY – INDIA

 

-          From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8th Century B.C.  India, in fact, remained undisputed leader till 18th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

-          The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

-          The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

-          Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

-          Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

-          The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

-          Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

-          Excerpts from Times of India dated 30th October 2010 is as under –

 

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

-          Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.51.66

UK Pound

1

Rs.81.79

Euro

1

Rs.67.18

 

 

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.