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Report Date : |
17.02.2014 |
IDENTIFICATION DETAILS
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Name : |
FREEGEM LIMITED |
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Registered Office : |
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Country : |
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Date of Incorporation : |
12.04.1996 |
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Com. Reg. No.: |
C82897 |
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Legal Form : |
Limited
Company |
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Line of Business : |
Non-specialised wholesale trade [We tried to confirm / obtain the detailed activity but the same is
not available from any sources] |
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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 : |
Offshore Company |
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Payment Behaviour : |
No complaints |
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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 – September 30, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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Cyprus |
B2 |
C1 |
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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 |
CYPRUS - ECONOMIC
OVERVIEW
The area of the Republic of Cyprus under government control has a market economy dominated by the service sector, which accounts for four-fifths of GDP. Tourism, financial services, and real estate are the most important sectors. Erratic growth rates over the past decade reflect the economy's reliance on tourism, the profitability of which can fluctuate with political instability in the region and economic conditions in Western Europe. Nevertheless, the economy in the area under government control has grown at a rate well above the EU average since 2000. Cyprus joined the European Exchange Rate Mechanism (ERM2) in May 2005 and adopted the euro as its national currency on 1 January 2008. An aggressive austerity program in the preceding years, aimed at paving the way for the euro, helped turn a soaring fiscal deficit (6.3% in 2003) into a surplus of 1.2% in 2008, and reduced inflation to 4.7%. This prosperity came under pressure in 2009, as construction and tourism slowed in the face of reduced foreign demand triggered by the ongoing global financial crisis. Although Cyprus lagged behind its EU peers in showing signs of stress from the global crisis, the economy tipped into recession in 2009, contracting by 1.7%, and has been slow to bounce back since, posting anemic growth in 2010-11 before contracting again by 2.3% in 2012. Serious problems surfaced in the Cypriot financial sector in early 2011 as the Greek fiscal crisis and euro zone debt crisis deepened. Cyprus's borrowing costs have risen steadily because of its exposure to Greek debt. Two of Cyprus's biggest banks are among the largest holders of Greek bonds in Europe and have a substantial presence in Greece through bank branches and subsidiaries. Cyprus experienced numerous downgrades of its credit rating in 2012 and has been cut off from international money markets. The Cypriot economy contracted in 2012 following the writedown of Greek bonds. A liquidity squeeze is choking the financial sector and the real economy as many global investors are uncertain the Cypriot economy can weather the EU crisis. The budget deficit rose to 7.4% of GDP in 2011, a violation of the EU's budget deficit criteria - no more than 3% of GDP. In response to the country's deteriorating finances and serious risk of contagion from the Greek debt crisis, Nicosia implemented measures to cut the cost of the state payroll, curb tax evasion, and revamp social benefits, and trimmed the deficit to 4.2% of GDP in 2012. In July, Nicosia became the fifth euro zone government to request an economic bailout program from the European Commission, the European Central Bank, and the International Monetary Fund - known collectively as the "Troika". Negotiations over the final details of the plan are ongoing
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Source
: CIA |
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Secretary |
Position |
Acts As |
ID |
Occupation |
Age |
Appointed |
Other dir. |
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ELENA LONGINOVA |
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Company Secretary |
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1152312(ID) |
Businesswoman |
55 |
27/04/2006 |
No |
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21 Megalou Alexandrou, Nicosia, 2121, Cyprus |
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Other Directorship: |
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Name |
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Registration Date |
Reg. No. |
Status |
Position |
Update Date |
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CIBCF CORPORATE INTERNATIONAL BUREAU OF COMMERCE FUNDING LIMITED |
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07/05/2010 |
C267114 |
Registered and operational |
Director / Secretary |
18/02/2013 |
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Other Shareholding: |
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No Information Found |
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Shareholders |
ID / Reg. No. |
Acts As |
Nationality |
Shares |
% |
Shares Breakdown |
Class |
Type |
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ELENA LONGINOVA |
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1152312(ID) |
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CYPRIOT |
500 |
50 |
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21 Megalou Alexandrou, Nicosia, 2121, Cyprus |
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INGRIDA SELICKA |
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0737680(Passport) |
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LATVIAN |
500 |
50 |
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1 I.R. Blaumana, Apt. 33, Rezekne, LV-4600, Latvia |
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Premises |
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Type: |
Headquarters |
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Address: |
21 Megalou Alexandrou, Nicosia, 2121, Cyprus |
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Headquarters comprise of |
Offices |
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Headquarters operate as: |
Correspondent office |
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Negatives |
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A check against our revealed that no negative payment incidents against the subject company, such as unpaid invoices, dishonored cheques, utility bills, bankruptcies etc. exist. |
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Please note that the latest financial details were not available at the file of the company at the official companies' registry house; as the law provides for all companies. No financial details were available from other public sources. |
The subject is an International Business Company - IBC (ex - Offshore Company) registered in Cyprus on 04.12.1996. According to the company's Articles of Association, the company was established to provide General Trade Activities.
IBC companies, being covered by the law of confidentiality, may use
nominee shareholders that hold the shares in trust for the beneficial owners.
Until recently beneficial owners were made known only to the Central Bank of
the Republic of Cyprus, which used to grant permission for the company’s
registration in Cyprus. After Cyprus accession into the EU, this practice
changed. Beneficial owners of an IBC are now known to the lawyers and / or
auditors that undertake the registration of such companies in Cyprus.
In the past IBC’s (ex offshore companies & offshore branches) used to
benefit from a corporation tax rate on their profits of 4.25%. However,
according to new tax legislation which has been in effect since the 1st January
2003, there is no longer a distinction between local companies and
International Business Companies (IBC’s. The net profits of all companies
registered in Cyprus are taxed at the rate of 12.5% effective since 1st January
2013.
Furthermore, in the past the law required IBC’s (ex offshore companies &
offshore branches), beneficial owners to be non-Cypriot residents and the
business activities to be carried out, outside of Cyprus only. This law has
changed. IBC entities may have activities worldwide, including in Cyprus.
However, in order for an IBC entity to have activities locally, their
Memorandum and Articles of Association should provide for that. Most of the IBC
entities that were registered before the change of the law have already
proceeded with the amendments in their Memorandum and Articles of Association.
The new provisions provide exemptions from tax of income related to Intellectual Property, specifically:
1. 80% of worldwide royalty income generated from Intellectual Property owned by Cypriot resident companies (net of any direct expenses) is exempt from income tax.
2. 80% of profit generated from the disposal of Intellectual Property owned by Cypriot resident companies (net of any direct expenses) is exempt from income tax.
3. There is no defense tax on dividends for non-Cypriot residents.
Any expenditure of a capital nature for the acquisition or development of IP is claimed as a tax deduction in the year in which it was incurred and the immediate four following years on a straight-line
All the above exemptions are also available for IPs acquired or developed before January 2012.
We tried to contact the company in question however with no success. We tried locating contact details for the company and its Directors but there was no relative information recorded at the local official telecommunication companies (CYTA and PRIMETEL). The only contact details available at the Registrar of Companies is the address included in this report.
Furthermore,
from desk research we found that subject’s address is 12 Promitheos Street,
Nicosia, 1065, Cyprus with fax number: 357 22022199 and with contact person Mr.
David Kallis; however these could not be confirmed from official sources
whether they are related with the subject.
During our
investigation we have contacted the company's Correspondent DORAX INVESTMENT COMPANY
LTD. The official we spoke to, Ms. Elena Longinova, declined to release any
information, such as if the company is an International Business Company (IBC)
or not and if they maintain offices of their own in Cyprus, due to her very
busy schedule.
We have the
impression that the subject is an IBC with no offices of its own in Cyprus.
Please note that the information included in the report was obtained from the Official Companies’ Registrar and from desk research.
Methodology Used
For Report Preparation
Perform Searches in:
The Registrar of Companies and Official Receiver of the
Republic of Cyprus.
In house databases for Detrimental Information:
Bankruptcy and Dissolution procedures.
Issuers of Bounced Cheques.
Unpaid Bills.
Proprietary databases and global subscription sites.
Global and local media.
Internet social networks.
Relationship/Directorship Search through Local Database.
Other local databases as deemed appropriate.
Conduct Interviews with:
Official(s) / correspondent(s) of the company under review.
Supplier(s) or other associated entities of the company.
Other local resources with extensive knowledge of the
market.
Analysis
Process and analyse all information gathered.
Perform a thorough quality check of the report prior to sending it to the client.
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Contact
Information
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Name: |
Ms. Elena Longinova |
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Position: |
Company’s Representative |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.28 |
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1 |
Rs.103.7 |
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Euro |
1 |
Rs.85.18 |
INFORMATION DETAILS
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Report Prepared
by : |
NIS |
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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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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.