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Report Date : |
02.03.2013 |
IDENTIFICATION DETAILS
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Name : |
ELEGANT GEMS LIMITED |
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Registered Office : |
Room 736, 7/F, Beverley Commercial Centre, 87-105 Chatham Road South, Tsim Sha Tsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
26.07.2011 |
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Com. Reg. No.: |
1642285 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Gems and jewelery related business (as recorded) |
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No. of Employees : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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Litigation : |
-- |
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
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 |
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
ALL FIGURES QUOTED IN LOCAL CURRENCY UNLESS
OTHERWISE STATED
OVERVIEW
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Public Filings Compliance - looks into a number of compliance requirements such as whether
Subject is promptly filing its annual return (e.g. within 42 days after the anniversary
of the date of incorporation (for private companies having a share capital);
whether Subject's individual director is reporting a residential address
and/or whether Subject is reporting its status under the Mortgage and Charges
section for Total Amount Outstanding.... etc. |
SUMMARY
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CORPORATE
STRUCTURE
The following statutory information is based on the examination of
Subject's file at the Companies' Registry (CR), Hong Kong. (For Listed Company, only Substantial Shareholders ("SS") are
listed, as based on the latest available annual or interim reports. It is
noted that some of the shares held (including long, short and other
positions) might have been duplicated due to capacities of "Beneficial
owner", "Interest of controlled corporation", "Interest
of spouse", "Family interest", etc., which mean the total
number of shares held by SS may exceed the authorized and/or issued shares.
Duplicate holding (if any) will be elaborated under the "Notes to
Substantial Shareholders" on the Structure Remark section.)
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HISTORY
SUMMARY
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Change of Ownership & Capital/ Share
Allotment/Other Changes |
No significant changes in business and
ownership have been reported since its inception. |
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Appointment and/or Resignation of Directors
or Secretary |
N/A |
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Admission or Retirement of Sole
Proprietor/Partner |
N/A |
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Parent |
N/A |
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RELATED NEWS /FINDINGS Due to the
nature of the information learned, we are responding in narrative format. |
MANAGEMENT
BACKGROUND
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Profile/Responsibility and Business
Capacity indicated are based on -on-file, sources, and
enquiries and investigations recently conducted but do not necessarily
represent the full or most updated. For example, the status indicated under
Business Capacity is based on the date shown (if available) as recorded,
which might have been changed at the time the report is compiled. |
FINANCIAL
Current Interviews & Investigations Its sole shareholder and director was
unreachable for interview during the report compilation. |
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Private companies in Hong Kong (include private limited, sole proprietorship and partnership) are
not required to file or disclose their financial information for public
inspection. |
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GROUP PROFILE & FINANCIALS N/A |
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BANKING
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TRADE RECORD N/A |
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TOTAL DEBT SCANNER (TDS) TDS reveals if subject has been listed as
debtor in our debt database in the past 5 years and that is subject to
the "Code of Practice on Consumer Credit Data" issued
by Office of the Privacy Commissioner for Personal Data, Hong Kong. Accounts
are sometimes placed for collection even though the existence or amount of
the debt is disputed. It should be noted that the collection record contained
in the report might have been paid, terminated, vacated, settled or released
prior to the date of report compiled. Search Result:
None found in our database
None found in our database
None found in our database |
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PUBLIC FILINGS Mortgages and Charges (M&C) M&C records, if any, are extracted from the Companies Registry,
Hong Kong ("CRHK"). Details of "Creating Instrument" and
"Description of Property Mortgaged or Charged" are available
subject to the prevailing fees as per document charged by CRHK. Please
indicate/select "Full Mortgage/Charge" when ordering our
services/reports (e.g.: Total Limited Company Search or Total Company Credit
Report). Request for Full mortgage/Charge made 7 days after the report
delivery will be treated as a new order and is subject to our "Official
Document Retrieval (ODR)" service charge + related government fees.
M&C brief particulars may not be available from CRHK for mortgage/charge
registered before 28 Feb 2005.
Total Amount outstanding as of the date of this Return on all
mortgages and charges which are required to be registered with the Registrar
of Companies pursuant to sections 80 and 82 of the Companies Ordinance: Nil |
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TOTAL WRIT SCANNER (TWS) TWS reveals if subject has been listed as
Defendant/Debtor/Respondent, Plaintiff/Creditor/Applicant, in liquidation or
bankruptcy within our court database in the past 7 years and that is
subject to the "Code of Practice on Consumer Credit Data"
issued by Office of the Privacy Commissioner for Personal Data, Hong Kong. It
should be noted that the court record contained in a report might have been
paid, terminated, vacated, settled or released prior to the date of a report
was compiled. Civil claims are filed as the result of disputes of a
commercial or other nature. The Defendant/Debtor/Respondent is not liable nor
the Plaintiff/Creditor/Applicant eligible to the claim until judgement is
obtained from the relevant court, which is not open for public inspection at
present. Only the latest 50 records will be shown when total records exceed
50. Search Result: Subject As Defendant None found in our database As Plaintiff None found in our database Comments
Related Members As Defendant None found in our database Comments
Related Companies As Defendant None found in our database Comments
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OPERATION
& ACTIVITIES
Business Lines
Product/Production
Supplies/Purchases
Markets
Brands
Premises and Staff
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TOTAL PROPERTY OWNERSHIP SEARCH (TPOS) TPOS reveals if subject has been involved in property
transaction record in our database since 1996. TPOS does not represent
the full record or history of all transactions relating to the registered
charges, mortgages or ownerships. Some of the charges, mortgages or
ownerships might have been released and/or changed. There could be latest
mortgages, charges, ownerships or transactions not reflected. TPOS
also checks on Subject's shareholder, director, sole proprietor, partner
(collectively listed under "Related Members" in this
section) and/or related company while related records will be revealed when
appropriate. Search Result:
No Trace
No Trace
No Trace
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RELATED COMPANIES Related companies mean Parent Company, Subsidiary Company, Director's
Other Business/Capacity, etc. N/A |
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2009 |
2010 |
2011 |
Forecast/Latest |
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Population, Mid-year (million) |
6.97 |
7.02 |
7.07 |
7.14a |
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Gross Domestic Product (US$billion) |
208.0 |
223.3 |
243.2 |
250.5-252.9b |
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GDP Per Capita (US$) |
29,800 |
31,800 |
34,400 |
35,100-35,400b |
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Real GDP Growth (%) |
-2.6 |
+7.1 |
+5.0 |
+1-2b |
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Inflation (% Change in Composite CPI) |
+0.5 |
+2.4 |
+5.3 |
+4.7c |
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Unemployment Rate, seasonally adjusted (%) |
5.4 |
4.4 |
3.4 |
3.2d |
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Retail Sales Growth (%) |
+0.6 |
+18.3 |
+24.9 |
+13.1c |
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Visitor Arrival Growth (%) |
+0.3 |
+21.8 |
+16.4 |
+15.5c |
a 2012; b government forecast for 2012; c year-on-year
change in January-June 2012; d April-June 2012.
Merchandise Trade Performance
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2010 |
2011 |
January-June 2012 |
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US$billion |
Growth % |
US$billion |
Growth % |
US$billion |
Growth % |
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Total Exports |
388.6 |
+22.8 |
427.9 |
+10.1 |
207.6 |
+0.3 |
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Domestic Exports |
8.9 |
+20.4 |
8.4 |
-5.5 |
3.6 |
-19.4 |
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Re-exports |
379.7 |
+22.8 |
419.8 |
+10.5 |
204.0 |
+0.7 |
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Imports |
431.4 |
+25.0 |
482.6 |
+11.9 |
236.0 |
+1.4 |
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Total Trade |
820.0 |
+23.9 |
910.5 |
+11.0 |
443.6 |
+0.9 |
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Trade Balance |
-42.8 |
N/A |
-54.8 |
N/A |
-28.4 |
N/A |
Service Trade
Performance
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2010 |
2011 |
January-June 2012 |
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US$billion |
Growth % |
US$billion |
Growth % |
US$billion |
Growth % |
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Exports |
105.7 |
+23.1 |
121.2 |
+14.6 |
60.2 |
+7.6 |
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Imports |
50.8 |
+16.3 |
55.8 |
+9.8 |
27.4 |
+3.7 |
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Total Trade |
156.5 |
+20.8 |
177.0 |
+13.1 |
87.6 |
+6.4 |
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Trade Balance |
54.9 |
N/A |
64.9 |
N/A |
32.8 |
N/A |
Current Economic Situation
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.54.48 |
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|
1 |
Rs.82.72 |
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Euro |
1 |
Rs.71.27 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
|
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 |
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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 |
-- |
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.