MIRA INFORM REPORT

 

 

Report Date :

03.12.2012

 

IDENTIFICATION DETAILS

 

Name :

DIESEL  SPA

 

 

Registered Office :

Units 807-812, Lu Plaza, 2 Wing Yip Street, Kwun Tong, Kowloon

 

 

Country :

Hong Kong.

 

 

Date of Incorporation :

Not Available

 

 

Legal Form :

Not Available

 

 

Line of Business :

Not Available

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Not Registered 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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

HONG KONG

A2

A2

 

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'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, it again faces a possible slowdown as exports to the Euro zone and US slump. 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 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. 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 exports 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 28 million in 2011, 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 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% 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. Growth slowed to 5% in 2011. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. 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.

 

Source : CIA

 

 

Company NAME & ADDRESS

 

DIESEL  SPA

 

 

Units 807-812, Lu Plaza, 2 Wing Yip Street, Kwun Tong, Kowloon, Hong Kong.

 

 

GENERAL

 

1.       As per Companies Registry, there is no such name registered in their file.  We found that there is none of company name registered and headed with “Diesel SPA”.

 

2.       According to Business Registration Office, the name of the subject is not found in the database.

 

3.       Our on-site investigator reported that your given address Units 807-812, Lu Plaza, 2 Wing Yip Street, Kwun Tong, Kowloon, Hong Kong is occupied by a company called Fairate Express Ltd. with details as follow:-

Name:  Fairate Express Ltd. [Fairate]

Address:  Units 807-812, Lu Plaza, 2 Wing Yip Street, Kwun Tong, Kowloon, Hong Kong.

Phone Number:  (852) 2308 9111

Fax Number:  (852) 2348 9288

Email:  admin@fairate.com

Nature of Business:  International air and ocean freight forwarder & consolidator

 

4.       As far as we know, Fairate was founded and incorporated in Hong Kong in March 1988.  It is known as a medium-sized international air and ocean freight forwarder and consolidator engaged in the provision of general cargo warehousing, bonded godown, record management & storage, air freight forwarding, river trade, sea freight forwarding, shipping line / agency, shipbroking, cross border trucking, local trucking, consolidation & distribution, custom broker services.  Fairate has more than 100 full time staff handling approximately 15,000 metric tones of air cargo and approximately 11,000 TEUs of ocean freight per year.  A staff from Fairate told us that the subject company is one of its customers.  They provide shipping services to the subject through its local sourcing subsidiary, K-Bit Ltd. [K-Bit].  The details of K-Bit are given as follow:-

                                    Name:  K-Bit

                               Address:  Rooms 1701-1706, Peninsula Tower, 538 Castle Peak Road, Lai Chi Kok,

                                               Kowloon, Hong Kong.

                                     Phone Number:  2870 0191

                                    Fax Number:  2870 0449

                                    Chief Executive Officer:  Mr. Rosario Diquattro

 

5.       The name of the subject is not listed in any available telephone and commercial directories and also is unknown to other sources consulted.

 

6.       No legal actions were traced against the subject during the course of this investigation.

 

7.       As far as we know, the subject company - Diesel SPA is a designer clothing company in Italy.  It produces apparel for men and women under its own “Diesel” brand.  It offers men’s and women’s casual wear, denim jeans, sportswear, and kids’ clothes.  The brand “Diesel” is licensed to the makers of jewelry, watches, leather goods, eyewear, fragrances, and footwear.  The subject sells its products through its retail outlets, department stores, and specialty retailers, as well as through catalogs.  It has subsidaries in Europe, Asia and the Americas.  The subject was founded in 1978 and is headquartered in Molvena, Italy.  A new venture was set up to begin selling “Diesel” apparel and accessories in Mumbai and Delhi in mid-2009.

 

8.       The subject company, produces its mainstay denim only in Italy, is sourcing

 

9.       garments from Asia, and mostly from China.  K-Bit was set up in Hong Kong as a wholly-owned sourcing subsidiary.  K-Bit has also established a domestic arm at Chennai to increase its exposure in the Indian market.

 

10.   A subsidiary known as Diesel Pacific Ltd. was set up in Hong Kong on 16th April, 1996 to manage the brand in Asia Pacific region.

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.52

UK Pound

1

Rs.87.48

Euro

1

Rs.70.88

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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.