MIRA INFORM REPORT

 

 

Report Date :

11.10.2013

 

IDENTIFICATION DETAILS

 

Name :

ESCAN LTD.

 

 

Registered Office :

C/o Nathan Commercial Centre Group Ltd., Room 1401, 14/F., Cambridge House, 26-28 Cameron Road, Tsimshatsui, Kowloon

 

 

Country :

Hongkong

 

 

Date of Incorporation :

27.05.2008

 

 

Com. Reg. No.:

39355193

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

The subject is a footwear trader. 

 

 

No. of Employees :

No Operating Office in Hongkong

 

(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)

Hongkong

A2

A2

 

Risk Category

ECGC Classification

 

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

HONGKONG - 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

 

ESCAN  LTD.

 

 

ADDRESS

 

Registered Office:-

c/o Nathan Commercial Centre Group Ltd.

Room 1401, 14/F., Cambridge House, 26-28 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.

[Tel: 852-2770 3329;  Fax: 852-2770 3362]

 

Associated Companies:-

Escan Import & Export Pvt. Ltd., India.

Escan Ltd., Russia.

Fujian Jinjiang Rongheng Shoes & Clothes Co. Ltd., China.

Fujian Jinjiang Rongheng Shoes Industries Co. Ltd., China.

 

 

BUSINESS REGISTRATION NUMBER

 

39355193

 

 

COMPANY FILE NUMBER

 

1241729

 

 

DATE OF INCORPORATION

 

27th May, 2008.

 

 

CAPITAL

 

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$10,000.00

 

SHAREHOLDER

(As per registry dated 27-05-2013)

 

Name

 

No. of shares

Kumar Sandzhay

 

10,000

=====

 

 

DIRECTOR

(As per registry dated 27-05-2013)

 

Name

(Nationality)

 

Address

CHEN Lili

No. 36, East Road, Gulou District, Fuzhou City, Fujian, China.

 

 

SECRETARY

(As per registry dated 27-05-2013)

 

Name

Address

Co. No.

Nathan Commercial Centre Group Ltd.

Room 1401, 14/F., Cambridge House, 26‑28 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.

0643000

 

 

GENERAL

 

Escan Ltd. was incorporated on 27th May, 2008 as a private limited liability company under the Hong Kong Companies Ordinance.

The subject does not have its own operating office.  Its registered office is in a commercial service firm located at ‘Room 1401, 14/F., Cambridge House, 26-28 Cameron Road, Tsimshatsui, Kowloon, Hong Kong’ known as ‘Nathan Commercial Centre Group Ltd.’ which is handling its correspondences and documents.  This firm is also the corporate secretary of the subject.

The subject has no employees in Hong Kong.

According to the Companies Registry of Hong Kong, the subject has issued 10,000 ordinary shares of HK$1.00 each which are wholly owned by Mr. Kumar Sandzhay who is a Russia merchant.  He is residing in Moscow, Russia.  The only director of the subject Mr. Chen Lili is a China merchant.  He is a China passport holder and does not have the right to reside in Hong Kong permanently.  Currently Chen is residing in Fuzhou City, Fujian Province, China.

The subject is a footwear trader.  It has had an associated company in Russia bearing the same name [Russia Escan].  Russia Escan was established in 2001 in Russia and has several footwear brands for Russia & European countries.  Its main products are sport shoes, casual shoes and hiking shoes.

Russia Escan is a professional manufacture and exporter of Sport, Casual, Hiking Shoes for all ages.  Its factory Fujian Jinjiang Rongheng Shoes Industries Co., Ltd. has become a large –scale, professional manufacturer which is able to manufacture all kind of shoes.  Covering an area of nearly 16,000 square meters, the factory has 4 production lines with a daily production capacity of nearly 10,000 pairs and annually production capacity is nearly 3,600,000 to 4,000,000 pairs.  The factory has more than 2,000 employees while about 200 are managerial technical personnel.

The China factory is ISO 9001 and CAS certified.  Currently, it has been equipped with 20 stitching lines, 25 cutting lines and 4 assembling lines.

According to Russia Escan, it has had the following brand partners in Russia: Escan, Centro, Seto, Soter, Firemarks, etc.

Lenta Group and Okmart Group are its business partners.  Russia Escan is also working with other supermarket equivalent to “Wall Mart” in Russia.

According to Russia Escan, Lenta group has 40 to 45 supermarkets in Russia.  Russia Escan is supplying its shoes brand “ESCAN” 1 to 2 million pairs annually to them.

OKMART Group has 35 to 50 supermarkets in Russia.  Russia Escan is supplying its brand “Firemark” 80,000 to100,000 pair annually to them.

Otto group has more than 800 retail shops in Russia.  Russia Escan is supplying its brand “Centro” 1 million pairs annually to them.

Russia Escan has more than 200 shoes retailing shops in Russia.  It is selling its own brands Escan, Centro, Firmarks, Seto and Soter in its rattail shops.

Russia Escan has had its India Office located at L-290, Ground Floor, Street No.-7, Mahipalpur Extn., New Delhi, 110037, India.

Russia Escan deals with foreign parties under the name of the subject and let foreign firms correspond with the subject’s registered address in Hong Kong.  Russia Escan also exports commodities to foreign markets under the name of the subject and its registered address in Hong Kong.

The subject is fully supported by Russia Escan.

The subject’s business in Hong Kong is not active.  History in Hong Kong is over five 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.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.14

UK Pound

1

Rs.99.02

Euro

1

Rs.83.87

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.