MIRA INFORM REPORT

 

 

Report Date :

30.05.2013

 

IDENTIFICATION DETAILS

 

Name :

KARATS & MORE CO., LTD.

 

 

Formerly Known as:

Hallmark Inter Gold Co., Ltd.

 

 

Registered Office :

13F.-1, No.68, Sec. 4, Ren-Ai Rd., Da-An District, Taipei City 106

 

 

Country :

Taiwan

 

 

Date of Incorporation :

28.04.2003

 

 

Com. Reg. No.:

80186555

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Trading of jewelry, art craft and etc.

 

 

No. of Employees :

Not Available 

 

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 – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Taiwan

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


Taiwan ECONOMIC OVERVIEW

 

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. In 2009, Taiwan's GDP contracted 1.8%, due primarily to a 13.1% year-on-year decline in exports. In 2010 GDP grew 10.7%, as exports returned to the level of previous years, and in 2011, grew 4.1%. In 2012, however, growth fell to 1.3%, because of softening global demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, but except for the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, so far Taiwan has been excluded from this greater economic integration in part because of its diplomatic status. Negotiations continue on such follow-on components of ECFA regarding trade in goods and services. The MA administration has said that the ECFA will serve as a stepping stone toward trade pacts with other key trade partners, which Taiwan subsequently launched with Singapore and New Zealand. Taiwan's Total Fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting for 11.2% of the island's total population as of 2012. The island runs a large trade surplus largely because of its surplus with China, and its foreign reserves are the world's fifth largest, behind China, Japan, Saudi Arabia, and Russia. In 2006 China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Three financial memorandums of understanding, covering banking, securities, and insurance, took effect in mid-January 2010, opening the island to greater investments from the mainland's financial firms and institutional investors, and providing new opportunities for Taiwan financial firms to operate in China. In August 2012, Taiwan Central Bank signed a memorandum of understanding on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese RMB and the New Taiwan dollar across the Strait, which could help develop Taiwan into a local RMB hub. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved.

 

Source : CIA

 

 


Contact Points

 

Company Name:

Karats & More Co., Ltd.

Supplied Name:

KARATS & MORE CO LTD

Trading Address:

13F.-1, No.68, Sec. 4, Ren-Ai Rd., Da-An District, Taipei City 106, Taiwan (R.O.C.)

Supplied Address:

13FL-1 68 JEN AI RD SECTION 4TA-AN DIST TAIPEI CITY Taiwan 106XXX

Telephone Number:

+886-2-2700-9500

Fax Number:

+886-2-2700-9600

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

Karats & More Co., Ltd.

Registered Address:

13F.-1, No.68, Sec. 4, Ren-Ai Rd., Da-An District, Taipei City 106, Taiwan (R.O.C.)

Date of Foundation:

2003-4-28

Registration Number:

80186555

Registry:

Taipei City Government

Registered Capital:

NTD 7,500,000 (USD 251,250)

(As of 2013.5, 1 NTD = 0.0335 USD)

Legal Representatives:

Xi Du

Legal Form:

Private Limited Liability Company

Principal Activities:

Trading of jewelry, art craft and etc.

Staff:

N/A

Listed at Stock Exchange:

No

Date of Last Annual Return:

2012-1-20

 

Notes: Subject declined to disclose its staff number; from other source we cannot obtain the relevant information, either.

 

History

 

Subject was incorporated on 2003-4-28 with registered number 80186555 as Private Limited Liability Company in Taiwan.

 

Former English Name

Hallmark Inter Gold Co., Ltd.

Current English Name

Karats & More Co., Ltd.

 

 

Shareholders

 

(Unit: NTD)

Name

Subscription Amount

Xi Du

7,500,000         

 

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

 

 

Subsidiaries & Branches

 

Subject did not introduce whether it has any subsidiaries or branches, from other source we can not obtain the relevant information, either.

 

 

Personnel Information

 

Core Management

Directors

1

Name

Xi Du

Position

Director

2

Name

Dewei Zheng

Position

Manager

Date of Appointment

2012-1-17

 

Operation Information

 

Offices & Factories

 

Headquarters

Add

13F.-1, No.68, Sec. 4, Ren-Ai Rd., Da-An District, Taipei City 106, Taiwan (R.O.C.)

 

Production Information

l  The subject is a trader of jewelry, art craft and etc without any production activities.

 

Purchase Information

l  The registered activities of subject:

Business Code

Details

F401010

International trading business.

F115010

Wholesales of jewelry and precious metal.

l  It is introduce that subject imports products from foreign countries.

 

Sales Information

l  The subject is mainly engaged in sales of jewelry, art craft and etc.

l  It is introduced that subject’s major products are jewelry, precious metal, art craft of corals, diamonds and etc.

l  It is introduced that subject’s selling territory is mainly in domestic market.

l  It is introduced that subject’s major customers are jewelers, direct customers and etc.

 

Import and export right:

Import right

Yes

Export right

Yes

 


Settlements

 

Purchase

Domestic Purchase

The subject has little purchase in domestic market.

Foreign Purchase

Product

Payment Terms

Proportion

Jewelry, art craft and etc

CBD and etc

100%

 

Sales

Domestic Markets

Product

Sales Terms

Proportion

Jewelry, art craft and etc

CBD and etc

100%

 

Export

The subject has little export.

 

 

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 Mr. Doshi 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 cannot 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

Mr. Doshi

E-mail

karats_more@hotmail.com  

 

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.

-            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 –

 

-            Gem & Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry  is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

 

-            The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.56.24

UK Pound

1

Rs.84.54

Euro

1

Rs.72.32

 

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.