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Report Date : |
11.09.2013 |
IDENTIFICATION DETAILS
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Name : |
EAST CITY
ENTERPRISES INVESTMENT LTD. |
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|
|
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Registered Office : |
28/F., CATIC
Plaza, 8 Causeway Road, Causeway Bay |
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Country : |
Hong Kong |
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Date of Incorporation : |
05.01.2011 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trading in coal. |
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No. of Employees : |
15 |
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 |
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Status : |
Not registered in Hong Kong |
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Payment Behaviour : |
Unknown |
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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 – 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 |
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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
EAST
CITY ENTERPRISES INVESTMENT
LTD.
ADDRESS: c/o Ever Honest (Hong Kong) Ltd.
28/F., CATIC
Plaza, 8 Causeway Road, Causeway Bay, Hong Kong.
PHONE: 852-2890 8266
FAX: 852-2890 2086
General
Manager: Ms. Grace Chan
Incorporated in BVI on: 5th January, 2011.
(Non-Hong Kong Company)
Organization: Private Limited Company.
Business Category:Coal Trader.
Employees: 15. (Including associated company)
Main Dealing Banker: Industrial & Commercial Bank of China (Asia) Ltd.
Banking Relation: Satisfactory.
Hong Kong Principal Place of Business:-
c/o Ever Honest (Hong Kong) Ltd.
28/F., CATIC Plaza, 8 Causeway Road, Causeway Bay, Hong Kong.
Associated Company:-
Ever Honest (Hong Kong) Ltd., Hong Kong. (Same address)
1623876 (In British Virgin Islands)
General Manager: Ms. Grace Chan
The subject was incorporated on 5th January, 2011 as a private limited liability company under The Registrar of Corporate Affairs of the British Virgin Islands.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Coal Trader.
Lines: Coal and related products, etc.
Employees: 15. (Including associated company)
Commodities Imported: China.
Markets: China, India, etc.
Terms/Sales: L/C, or as per contracted.
Terms/Buying: Various terms.
Profit & Loss: Group business is profitable.
Condition: Keeping in a normal manner.
Facilities: Making active use of banking facilities.
Payment: Met as required.
Commercial Morality: Satisfactory.
Banker: Industrial & Commercial Bank of China (Asia) Ltd.
Standing: Normal.
East City Enterprises Investment Ltd. is a firm registered in the British Virgin Islands but has not registered in Hong Kong.
The subject is sharing the office with a Hong Kong-registered firm known as Ever Honest (Hong Kong) Ltd.
The subject has been banking with Industrial & Commercial Bank of China (Asia) Ltd. which is located at Level 36, Tower 1, Millennium City 1, 388 Kwun Tong Road, Kwun Tong, Kowloon, Hong Kong.
The contact person of the subject is Ms. Grace Chan who can be reached at your provided phone number 852-2890 8266.
The subject is trading in coal and related products. The products are sourced from Shanxi Province, China.
The subject has had an associated company bearing the same name in Shanxi Province. The contact person is Mr. Alex Wang who can be reached at his China mobile phone number at 86-186 3585 9899. This phone number is also provided by your party. We also confirmed that Alex Wang is the business manager of the subject in China. The e-mail address of Alex Wang is zcl@szzxc.net. Grace Chan also confirmed that Alex Wang is one of her China colleagues.
We also confirmed that the mobile phone number 86-186 3585 9899 was issued in Shanxi Province, China.
According to Grace Chan, its associated company in China has several hundred workers. Most of the coal and coal related products are marketed in China, exported to India, and the other Asian countries. Business is active.
In the end of August 2013, the subject is going to ship 15,000 of coal to India.
On the whole, in view of the background and lines of business of the subject, consider it good for normal business engagements.
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.64.22 |
|
|
1 |
Rs.100.83 |
|
Euro |
1 |
Rs.85.21 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.