MIRA INFORM REPORT

 

 

 

Report Date :

22.05.2013

 

 

 

IDENTIFICATION DETAILS

 

Name :

G.  SOURCE  (HK)  INT'L

 

 

Registered Office :

C/o Buttar.HK Ltd.

Block G, 1/F., Mau Lam Commercial Building, 16-18 Mau Lam Street, Jordan, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

02.11.2007

 

 

Com. Reg. No.:

38577762-000-11

 

 

Legal Form :

Sole Proprietorship

 

 

LINE OF BUSINESS :

IMPORTER AND EXPORTER OF ALL KINDS OF MOBILE PHONES AND ACCESSORIES

 

 

No. of Employees :

No employees in Hong Kong

 

[It is to be noted that the company does not have its own operating office

in Hong Kong. The company uses the address of its secretariat as its

correspondence address only. Subject operates from some other country

and does not have a base in Hong Kong. Such companies are registered

in Hong Kong just to tax benefit purpose and due to the strict privacy laws

prevailing in the country. In such cases, the companies are not required to

have any employees in Hong Kong nor do have an office there]

 

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 :

No Operating Office 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 – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 levies excise duties on only four commodities, namely: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. 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 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous 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 34.9 million in 2012, 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 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% 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, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. 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 and address

 

G.  SOURCE  (HK)  INT'L

 

Address:           c/o Buttar.HK Ltd.

                        Block G, 1/F., Mau Lam Commercial Building,

                        16-18 Mau Lam Street, Jordan,

                        Kowloon, Hong Kong.

 

(Your enquiry given as:

G SOURCE (HK) INT’L RADIO of the same address.)

 

PHONE:            8107 8775

 

FAX:                 8107 8776

 

 

MANAGEMENT

 

Manager:  Mr. Amit Luthra

 

 

SUMMARY

 

Establishment:                          2nd November, 2007.

 

Organization:                 Sole Proprietorship.

 

Capital:                         Not disclosed.

 

Business Category:        Mobile Phone Trader.

 

Employees:                   Nil.

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

           

Banking Relation:            Satisfactory.

Company ADDRESS

 

Head Office:-

c/o Buttar.HK Ltd.

Block G, 1/F., Mau Lam Commercial Building, 16-18 Mau Lam Street, Jordan, Kowloon, Hong Kong.

 

Shenzhen Branch:-

Room 32M, Block B, Xiandai Zhechuang, Huaqiang North Road, Futian District, Shenzhen Special Economic Zone, China.

[Tel: 86-755-6130 2026;  Fax: 86-755-6130 2025]

 

 

BUSINESS REGISTRATION NUMBER 

 

38577762-000-11

 

 

MANAGEMENT

 

Manager:  Mr. Amit Luthra

 

 

SOLE PROPRIETOR

 

Name:  Mr. Amit LUTHRA

Residential Address:      T.650H/7A, Road No. 21, Durga Mohalla Baljeet Nagar, New Delhi-110008, India.

 

 

HISTORY

 

The subject was established on 2nd November, 2007 as a sole proprietorship concern owned by Mr. Amit Luthra under the Hong Kong Business Registration Regulations.

Initially the subject was located at Room A14, 8/F., 58 Nathan Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in November 2009.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

OPERATIONS

 

Activities:                      Importer and Exporter.

 

Lines:                           All kinds of mobile phones and accessories.

 

Employees:                   Nil.

 

Commodities Imported:   China, Europe, etc.

 

Markets:                       Asian countries, Middle East, etc.

 

Terms/Sales:                  L/C, T/T, etc.

 

Terms/Buying:               L/C, pre-payment, etc.

 

 

FINANCIAL INFORMATION

 

Capital:                         Not disclosed.

 

Profit or Loss:                Keeping a balance account in Hong Kong.

 

Condition:                      Business is not active in Hong Kong.

 

Facilities:                      Making fairly active use of general banking facilities.

 

Payment:                      Unknown.

 

Commercial Morality:     Satisfactory.

 

Banker:                         The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:                      Small.

 

 

GENERAL

 

G. Source (HK) Int’l is a sole proprietorship set up and owned by Mr. Amit Luthra who is an Indian.  He is an India passport holder and does not have the right to reside in Hong Kong permanently.  Being the manager of the subject, currently he is residing in New Delhi, India.

The subject does not have its own operating office.  Its registered office is in a commercial service firm located at Block G, 1/F., Mau Lam Commercial Building, 16-18 Mau Lam Street, Jordan, Kowloon, Hong Kong known as Buttar.HK Ltd. which is handling its correspondences and documents.

The subject has no employees in Hong Kong.

The subject is trading in all kinds of mobile phones and accessories.  It is carrying GSM/PCS mobile phones and accessories such as “Motorola”, “Nokia”, “Sony Ericsson”, “Samsung”, “LG”, “Sharp”, “Panasonic/NEC”, etc.  Some of the commodities are sourced from China.

The subject has registered with the Office of the Telecommunications Authority [OFTA], The Government of Hong Kong SAR, the People’s Republic of China as a Radio Dealer (Unrestricted) Licensee.  The subject bears the licence No. of RU00136588-RU.

The subject has had a branch company in Shenzhen Special Economic Zone China which is responsible for sourcing commodities from local suppliers.  Products are exported to India, other Asian countries, the Middle East, etc.

It is likely that the subject has got an associated company in India which is also operated by Luthra.  The India firm is also a mobile phone trader.

It is likely that the India firm deals with foreign parties under the name of the subject and let foreign firms correspond with the subject’s registered address in Hong Kong.  The India firm also exports commodities to foreign markets under the name of the subject and its registered address in Hong Kong.

The subject’s business in Hong Kong is not active.  History in Hong Kong is just over four years and four months.

Since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on L/C basis.

 

Important Note

 

  1. The captioned firms do not have any employees in Hong Kong because their registered addresses in Hong Kong are in the offices of secretarial firms
  2. The actual operating address of G. SOURCE is in Futain District, Shenzhen SEZ China.
  3. Many China and foreign firms are doing business in this way.  This is the usual practices done by these firms by setting up nominal firms in Hong Kong without any employees.  However, these firms usually have an operating office in their own country or in China.  All the business engagements can be carried out under the nominal firms in Hong Kong and their registered address in Hong Kong.
  4. Since G. SOURCE have registered in Hong Kong, they need not registered in China again [they should be registered again in China but many shareholders do not do it].
  5. These firms do not need to pay any tax in China because they have not registered in China.
  6. These firms also do not need to pay any tax in Hong Kong because they are just shelf companies in Hong Kong.
  7. These are the tricks how nominal Hong Kong firms work.  This is similar to setting up a holding company in the British Virgin Islands.  Almost all the foreign BVI-registered firms have no employees in the British Virgin Islands, but these firms are still doing business in their own countries.

 

 

NOTE :

It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.04

UK Pound

1

Rs.83.95

Euro

1

Rs.70.93

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.