MIRA INFORM REPORT

 

 

Report Date :           

24.03.2012

 

IDENTIFICATION DETAILS

 

Name :

SAGA CO., LTD.

 

 

Registered Office :

1-3, Kai Fa Road, N.E.P.Z. Kaohsiung

 

 

Country :

Taiwan

 

 

Date of Incorporation :

12.04.1986

 

 

Com. Reg. No.:

22100025

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Design, processing and sales of jewelry accessories, etc

 

 

No. of Employees :

60-70 employees (Taiwan)

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

Taiwan

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Contact Points

 

Company Name:

Saga Co., Ltd.

Supplied Name:

Saga Co Ltd.

Trading Address:

1-3, Kai Fa Road, N.E.P.Z. Kaohsiung, Taiwan, R.O.C.

Supplied Address:

4F-2 No. 30 Sec-1 Jiuzhuang St, Nangang Dist, Taipei Cly 115

Telephone Number:

+ 886-7-3613188

Fax Number:

+886-7-3645334

E-mail:

ginna_su@sagaco.com

Notes: Subject’s exact name and address are as above and the subject did not introduce the supplied address.

 

 

Company Identification Details

 

Registered Name:

Saga Co., Ltd.

Registered Address:

1-3, Kai Fa Road, N.E.P.Z. Kaohsiung, Taiwan, R.O.C.

Date of Foundation:

1986-4-12

Registration Number:

22100025

Registry:

Export Processing Zone Administration, MOEA

Registered Capital:

NTD 146,860,000 (USD 4,978,554)

(As of 2012.03, 1 NTD = 0.0339 USD)

Paid-up Capital:

NTD 90,800,000 (USD 3,078,120)

Legal Representatives:

Yangen Sun

Legal Form:

Joint Stock Company

Principal Activities:

Design, processing and sales of jewelry accessories, etc

Staff:

60-70 employees (Taiwan)

Listed at Stock Exchange:

No

Date of Last Annual Return:

2012-2-15

 

 

History

 

Subject was incorporated on 1986-4-12 with registered number 22100025 as Joint Stock Company in Taiwan.

 

 

Shareholders

 

Name

Subscription Shares

Yangen Sun

90,800 

 

Yuede Lei

 

1

 

Boxiu Shi

1

Saga Group Limited

90,800

 

The information above is that of subject’s major shareholders.

 

 

Subsidiaries & Branches

 

It is introduced that subject has a watch factory in the mainland of China and a gold and silver ornament factory in Thailand, while the details are not disclosed

 

 

Personnel Information

 

Core Management

Directors

1

Name

Yangen Sun

Position

Board Chairman

2

Name

Yuede Lei

Position

Director

Date of Appointment

1996-1-1

3

Name

Boxiu Shi

Position

Director

4

Name

Kaiya Wei

Position

Supervisor

 

Personnel Structure

Total Employees

60-70 employees (Taiwan)

 

 

Operation Information

 

Offices & Factories

 

Headquarters

Add

1-3, Kai Fa Road, N.E.P.Z. Kaohsiung, Taiwan, R.O.C.

 

Production Information

l         Subject is engaged in design and processing of jewelry accessories and subject has factories in China and Thailand.

Purchase Information

l         The registered activities of subject:

--

Manufacture, processing and export of all kinds of Jewelry products and semi-finished product

--

Manufacture, processing and export of wax mould, rubber mould,

jewelry tools creating tools, products and semi-finished product

--

Sales and price quoting business of jewelry

(materials, products and semi-finished product)

--

Manufacture, processing, assembly, manufacturing consignment and export of decorative clocks, components, products and semi-finished product, etc

--

General import and export trading business Besides licensed business

 

l         It is introduced that subject purchases mainly local market, while the raw materials are imported from other countries by their suppliers.

 

Sales Information

l         The subject is mainly engaged in sales of jewelry accessories including gold ornaments, silver ornament, Inlaid Jewelry and watches, etc

l         Subject’s products are both sold in domestic and overseas market and its sales mainly focus on Europe and America.

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

Domestic Purchase

Product

Payment Terms

Proportion

Raw materials, etc

COD, etc

100%

 

Foreign Purchase

Subject has little direct import

 

Sales

Domestic Markets

Product

Sales Terms

Proportion

Jewelry Accessories, etc

50% prepayment, 50% before delivery, etc

100%

Export

Product

Sales Terms

Proportion

Jewelry Accessories, etc

50% prepayment, 50% before delivery, etc

100%

 

 

Financial Information

 

Subject has no obligations to disclose its financial statements to the third party according to the relevant policy in Taiwan and the only source from which we can obtain the information is the subject itself.

Subject’s relevant staff Ms. Shu declined to disclose its financials citing the grounds of company’s confidentiality; from other source we can not obtain the relevant information, either.

 

 

Bankers

 

Subject declined to disclose its bank details; from other source we can not obtain the relevant information, either.

 

 

Public Record

 

Mortgage

No chattel mortgage record of subject has been found within the recent 3 months.

 

Lawsuit

Up to date of reporting, no existing or latent litigation of the subject has been found.


 

Interview Details

 

Name

Ms. Shu

Position

Manager

 


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.50.91

UK Pound

1

Rs.80.77

Euro

1

Rs.67.40

 

 

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.