MIRA INFORM REPORT
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Report Date : |
28.03.2012 |
IDENTIFICATION DETAILS
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Name : |
MING
FAT TRADING CO. |
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Registered Office : |
Flat F, 28/F., Block 1,
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Country : |
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Date of Incorporation : |
10.04.2001 |
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Com. Reg. No.: |
31730244-000-04 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of jewellery products, etc |
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No. of Employees
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Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Concern |
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Payment
Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Hong Kong |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
MING FAT
TRADING CO.
Flat F, 28/F., Block 1, Metro Harbour View, 8 Fuk Lee Street, Taikoktsui, Kowloon, Hong Kong.
PHONE: Not available
FAX: Not available
Manager: Mr. Li Kwong Pan (Mobile: 9838 9863)
Establishment: 10th April, 2001.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Jewellery Trader.
Employees: Nil.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Flat F, 28/F., Block 1, Metro Harbour View, 8 Fuk Lee Street, Taikoktsui, Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
Hong Kong Ka Wah Jewellery Ltd., Hong Kong.
Italy (Hong Kong) Bellbguess Gem Co., Hong Kong.
Shenzhen Da Pan Jewellery Co. Ltd., China.
31730244-000-04
Manager: Mr. Li Kwong Pan
Name: Mr. LI Kwong Pan
Residential Address: 3/F.,
41 Kowloon City Road, Tokwawan, Kowloon, Hong Kong.
The subject was established on 10th April, 2001 as a sole proprietorship concern owned by Mr. Li Kwong Pan under the Hong Kong Business Registration Regulations.
At the very beginning, the subject was located at G/F., 62 Pau Chung Street, Tokwawan, Kowloon, Hong Kong, moved to 2/F., 41 Kowloon City Road, Tokwawan, Kowloon, Hong Kong in April 2002, to Flat 8, 4/F., Block H, Ting On Building, 38 Cheung Ning Street, Kowloon, Hong Kong in January 2006, to Room 1014A, 10/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong in August 2006, and further moved to the present address in January 2010.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of jewellery products, etc.
Trade Mark: KAWA.
Employees: Nil.
Commodities Imported: India, Thailand, Europe, etc.
Markets: Japan, Southeast Asia, China, etc.
Terms/Sales: As per contracted, etc.
Terms/Buying: L/C, T/T, etc.
Capital: Not disclosed.
Profit or Loss: Making a very small profit in the past years.
Condition: Business is not very active in Hong Kong.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Ming Fat Trading Co. is a sole proprietorship set up and owned by Mr. Li Kwong Pan who is a Hong Kong merchant.
The subject is a jewellery trader. It does not have its own operating office. Its registered address is in the residence of the sole proprietor. The private building is not trespassed by outsiders. However, Li can be reached at his mobile phone number 9838 9863. The subject has no employees in Hong Kong.
The subject has had an associated company Hong Kong Ka Wah Jewellery Ltd. [Ka Wah] located at the same operating address. Ka Wah is equally owned by Mr. Li Kwong Pan and Mr. So Kin Ming. This firm has just issued 2 ordinary shares of HK$1.00 each while each of the shareholders holds a single share. Li and So are also directors of Ka Wah. The subject and Ka Wah are engaged in the same lines of business.
To our knowledge, Li is also the sole proprietor of a Hong Kong-registered firm Italy (Hong Kong) Bellbguess Gem Co. which was set up on 15th April, 2004. This firm is also located at Li’s residence. It is responsible for marketing the jewellery products bearing the brand name of “Bellbguess” imported from Italy. Prime market is China.
The subject is a diamond importer, exporter and wholesaler. Currently, it is manufacturing and marketing bracelets, brooches, earrings, necklaces, rings, pendants, etc. Rough diamonds are imported from India, Belgium and other European countries, etc. Its main business territory is China.
Currently, So is also the director of a China-based firm Shenzhen Da Pan Jewellery Co. Ltd. [Da Pan]. The business name of Da Pan is Kawa Jewellery which is also the brand name of its products. According to Da Pan, Kawa Jewellery was set up in Fujian Province China. The founder was Mr. So Yingzhou. There are over 300 franchised shops spreading the whole China retailing “Kawa” jewellery and products. In early 2010, Kawa Jewellery moved to Shuibei Jewellery Circle, Tianbei 4th Road, Shenzhen Special Economic Zone, China.
The subject’s business in Hong Kong is not very active. History in Hong Kong is about eleven years.
On the whole, consider it good for normal business engagements in small credit amounts.
DIAMOND INDUSTRY –
INDIA
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.50.91 |
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UK Pound |
1 |
Rs.81.27 |
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Euro |
1 |
Rs.67.99 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.