|
Report Date : |
23.05.2014 |
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.58.57 |
|
UK Pound |
1 |
Rs.98.88 |
|
Euro |
1 |
Rs.80.05 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.