MIRA INFORM REPORT

 

 

Report Date :

26.05.2014

 

IDENTIFICATION DETAILS

 

Name :

ABLE BRIGHT INTERNATIONAL TRADING LTD.

 

 

Registered Office :

Unit A2, 10/F., National Court, 242 Nathan Road, Jordan, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

08.02.2012

 

 

Com. Reg. No.:

59392436

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of diamond and jewellery

 

 

No of Employees :

Not Available

 

[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 :

C

 

RATING

STATUS

PROPOSED CREDIT LINE

<10

C

Absolute credit risk exists. Caution needed to be exercised

Credit not recommended

 

Status :

Dissolves By Deregistration

 

 

Payment Behaviour :

--

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

Hong Kong

A1

A1

 

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

 


 

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 has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: 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, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. 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 12% of total system deposits in Hong Kong by the end of 2013. 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 total trade 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. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies.

 

Source : CIA

 

 


COMPANY NAME:

 

ABLE  BRIGHT  INTERNATIONAL  TRADING  LTD.

 

 

ADDRESS:

 

Registered Office:-

Unit A2, 10/F., National Court, 242 Nathan Road, Jordan, Kowloon, Hong Kong.

 

Associated Company:-  (same address)

Winful Trading Ltd., Hong Kong.  [Dissolved by Deregistration]

 

 

BUSINESS REGISTRATION NUMBER: 

 

59392436

 

 

COMPANY FILE NUMBER: 

 

1703856

 

 

MANAGEMENT:

 

Managing Director:  Mr. Durgesh Sharma

 

 

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 08-02-2013)

Name

 

No. of shares

Durgesh SHARMA

 

10,000

=====

 

DIRECTOR:   

 

(As per registry dated 08-02-2013)

Name

(Nationality)

 

Address

Durgesh SHARMA

275/3 Near Esi Luna Agency, Kalabagh, Ajmer Rajasthan, India.

 

 

SECRETARY:

 

(As per registry dated 08-02-2013)

Name

Address

Co. No.

Global Associates Ltd.

Unit A, 10/F., Tack Building, 48 Gilman Street, Central, Hong Kong.

1695695

 

 

HISTORY:

 

The subject was incorporated on 8th February, 2012 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Formerly the registered address of the subject was located at 14/F., Chun Wo Commercial Centre, 25 Wing Wo Street, Central, Hong Kong where was the operating address of a commercial service provider Gateway Registrations Ltd., moved to Unit A2, 10/F., National Court, 242 Nathan Road, Jordan, Kowloon, Hong Kong with effect from 27th March, 2012.

 

The subject was dissolved by deregistration on 12th July, 2013.

 

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

GENERAL:

 

Please be advised that Able Bright International Trading Ltd. is a private limited company which applied for deregistration in March 2013.  It was formally dissolved by deregistration on 12th July, 2013.

 

Having issued 10,000 ordinary shares of HK$1.00 each, the subject was wholly owned by Mr. Durgesh Sharma who was an Indian.  He was an India passport holder and did not have the right to reside in Hong Kong permanently.  He was also the only director of the subject.

 

The subject commenced business in February 2012.

 

The subject’s registered address was in a private building located at “Unit A2, 10/F., National Court, 242 Nathan Road, Jordan, Kowloon, Hong Kong”.  This seemed to be the residence of Sharma when he was in Hong Kong.

The residential building was not trespassed by outsiders.

 

The subject’s telephone number and fax number had not registered with local telephone company nor listed on telephone directories.

 

The subject was a diamond and jewellery importer, exporter and wholesaler.  It traded in loose, polished and cut diamonds.  Most of the commodities were imported from India.  Prime markets were Hong Kong, China, the other Asian countries, Europe etc.

 

The subject’s business was chiefly handled by Sharma himself.  History in Hong Kong was just over a year.

 

The subject had an associated company Winful Trading Ltd. located at the same address.  This firm was also operated by Sharma and engaged in the same lines of business.  However, this firm was also dissolved by deregistration on 12th July, 2013.

 

Since the subject has been dissolved by deregistration, consider it not suitable for any 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.

 


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. 58.48

UK Pound

1

Rs. 98.67

Euro

1

Rs. 79.80

 

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

Report Prepared by :

DPT

 

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.