|
Report Date : |
16.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
CITY JEWELLERY
CO., LTD. |
|
|
|
|
Registered Office : |
1F, No.38, Sec.1, Jhongsiao W. Rd., Jhongjheng District,
Taipei City 100 |
|
|
|
|
Country : |
Taiwan |
|
|
|
|
Date of Incorporation : |
17.12.1986 |
|
|
|
|
Com. Reg. No.: |
22343304 |
|
|
|
|
Legal Form : |
Joint
Stock Company |
|
|
|
|
Line of Business : |
trader of diamonds, gems and jewellery made of
Diamond, Pearl, Jade, Ruby, Sapphire and K gold
|
|
|
|
|
No of Employees : |
About 80 Employees (Taiwan) |
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 : |
Unknown |
|
|
|
|
Litigation : |
--- |
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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Taiwan |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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. Taiwan's diplomatic isolation, low birth rate,
and rapidly aging population are other major long-term challenges. Free trade
agreements have proliferated in East Asia over the past several years, and
following the landmark Economic Cooperation Framework Agreement (ECFA) signed
with China in June 2010, Taiwan in July 2013 signed a free trade deal with New
Zealand—Taipei’s first-ever with a country with which it does not maintain
diplomatic relations—and in November inked a trade pact with Singapore.
Negotiations continue on follow-on components of ECFA regarding trade in goods
and a dispute resolution mechanism; a trade in services agreement is under
review in the legislature. 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 sales. 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
overall trade surplus largely because of its surplus with China, and its
foreign reserves are the world's sixth largest, behind China, Japan, Saudi
Arabia, Russia, and Switzerland. 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. Taiwan since
2009 has gradually loosened rules governing Chinese investment on the island,
and has also secured greater market access for its investors in the mainland.
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 |
|
Company Name: |
|
|
Supplied Name: |
|
|
Trading Address: |
11/F, No.102, Sec.1, Jhongsiao W. Rd., Jhongjheng District, Taipei City
100, Taiwan, R.O.C. |
|
Supplied Address: |
1st Floor No.38, Section 1, Jhongsiao W
Road Jhongjiheng Districttaiwan |
|
Telephone Number: |
+886-2-2314-0112 |
|
Fax Number: |
|
|
E-mail: |
Notes: The exact name
and address are as above. The
supplied address belongs to one of subject’s stores.
|
Credit Opinion: |
|
Registered Name: |
|
|
Registered Address: |
1F, No.38, Sec.1, Jhongsiao W. Rd., Jhongjheng District, Taipei City
100, Taiwan, R.O.C. |
|
Date of Foundation: |
1986-12-17 |
|
Registration Number: |
22343304 |
|
Registry: |
Taipei City Government |
|
Registered Capital: |
NTD 25,000,000 (USD 850,000) (As of 2014.05, NTD = 0.0340 USD) |
|
Paid-up Capital: |
NTD 25,000,000 (USD 850,000) |
|
Legal Representatives: |
Zhichao Zhang |
|
Legal Form: |
|
|
Principal Activities: |
trader of diamonds,
gems and jewellery made of
Diamond, Pearl, Jade, Ruby, Sapphire and K gold |
|
Staff: |
|
|
Listed
at Stock Exchange: |
|
|
Date of Last
Annual Return: |
Subject
was incorporated on 1986-12-17 with registered number 22343304 as Joint Stock Company in
Taiwan.
Change of Name
|
Former
Chinese Name |
引雅有限公司 |
|
Current
Chinese Name |
引雅股份有限公司 |
|
Subscription Shares |
|
|
Zhichao Zhang |
2,105,000 |
|
Saying Lou |
220,000 |
|
Er-Ya Zhang |
40,000 |
|
Er-Kai Zhang |
75,000 |
The information above is that of subject’s major shareholders.
Branch Company
|
Name |
Songshan Branch |
|
Address |
1/F., No. 2
Songshou Road, Songshan District, Taipei |
|
Registration Number |
86038841 |
|
Date of Registration |
1991-1-3 |
|
Status |
Live Company |
|
Manager Name |
Sa-Ying Lou |
|
Date of Last Annual Return |
2004-8-27 |
Stores
|
1 |
|
|
Name |
Caesar Park
Taipei Store |
|
Address |
1F, No.38, Sec.1, Jhongsiao W. Rd., Jhongjheng District, Taipei City
100, Taiwan, R.O.C. |
|
2 |
|
|
Name |
Tonlin
Department Store |
|
Address |
3F, No. 61,
Zhongzheng Road, Taoyuan County, Taiwan |
|
3 |
|
|
Name |
Living Mall
Store |
|
Address |
No. 138, Sec 4,
Ba-de Road, Taipei City, Taiwan |
Note:
It is introduced that the
subject has 32 stores in Taiwan; we offered some of them information as above
for reference.
Core Management
|
1 |
|
|
Name |
Zhichao Zhang |
|
Position |
Board Chairman |
|
2 |
|
|
Name |
Saying Lou |
|
Position |
Director |
|
Date of
appointment |
2004-8-5 |
|
3 |
|
|
Name |
Er-Ya Zhang |
|
Position |
Director |
|
Date of
appointment |
2012-3-7 |
|
4 |
|
|
Name |
Er-Fan Zhang |
|
Position |
Supervisor |
Personnel Structure
|
Total Employees |
About 80 Employees (Taiwan) |
Offices &
Factories
|
|
Headquarters |
|
Add |
11/F, No.102, Sec.1, Jhongsiao W. Rd., Jhongjheng District, Taipei City
100, Taiwan, R.O.C. |
Production
Information
·
Subject is a trader of diamonds, gems and jewellery
·
It is
introduced that subject has cooperative jewellery processing plants in Taiwan
and Mainland China, etc.
Purchase
Information
l
The registered activities of subject:
|
Business Code |
Details |
|
-- |
Import and export trade business |
|
-- |
Acting sale of domestic and foreign manufacturers of products and the
bid quotation (except for the futures) |
|
-- |
Relevant business management and investment above |
|
F104020 |
Clothing wholesale |
|
F104040 |
Leather bags, handbags, luggage wholesaling |
|
F110010 |
Clock wholesaling |
|
F115010 |
Jewelry and precious metals wholesaling |
|
F401010 |
The international trade business |
l Subject purchases diamonds and
other gems mainly from abroad such as Belgium, South Africa, India and China,
etc.
·
Subject is mainly engaged in sales of jewellery.
·
The jewellery sold by subject are made of
diamond, pearl, jade, ruby, sapphire and K gold
·
Subject has its own brand named “City Diamond”.
· It is introduced subject has 32 direct-sale stores for sale in Taiwan.
·
Subject’s
sales region is mainly in Taiwan domestic market.
·
It is
introduced that subject’s major customers direct customers, etc.
Import and export
right:
|
Import right |
Yes |
|
Export right |
Yes |
Domestic Purchase
|
Terms |
Proportion |
|
|
Diamonds, etc |
Cash, T/T, etc |
100% |
Foreign Purchase
|
Terms |
Proportion |
|
|
Diamonds, etc |
T/T, etc |
100% |
Sales
Domestic Markets
|
Terms |
Proportion |
|
|
Jewellery, etc |
T/T, Cash, etc |
100% |
Export
|
Terms |
Proportion |
|
|
Jewellery, etc |
L/C, etc |
100% |
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 Ms. Wu declined to disclose its financials citing the grounds of company’s confidentiality; from other source we cannot obtain the relevant information, either.
Mortgage
No chattel
mortgage record of subject has been found within the recent 3 months.
Lawsuit
|
Trial Number: |
2011,Beijiansheng,42 |
|
Date of Trial: |
2011-3-8 |
|
Reason: |
Confirmation of the litigation costs |
|
Claim: |
Xiaoling Huang |
|
Defendant: |
City Jewellery Co., Ltd. |
|
2 |
|
|
Trial Number: |
2009,Beilaojian,218 |
|
Date of Trial: |
2010-5-13 |
|
Reason: |
Payment for severance pay |
|
Claim: |
City Jewellery Co., Ltd. |
|
Defendant: |
Not Stated |
|
3 |
|
|
Trial Number: |
2009,Beilaojian,218 |
|
Date of Trial: |
2010-4-19 |
|
Reason: |
Payment for severance pay |
|
4 |
|
|
Trial Number: |
2009,Beilaojian,218 |
|
Date of Trial: |
2010-2-22 |
|
Reason: |
Payment for severance pay |
|
Name |
Ms. Wu |
|
Department |
Marketing Department |
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.59.48 |
|
UK Pound |
1 |
Rs.100.93 |
|
Euro |
1 |
Rs.80.71 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.