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Report No. : |
308281 |
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Report Date : |
28.02.2015 |
IDENTIFICATION DETAILS
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Name : |
BLESSING TRADING COMPANY |
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Registered Office : |
Room 1211, 12/F., Tower 2, The Metropolis Residence, 9 Metropolis Drive, Hunghom, Kowloon |
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Country : |
Hong Kong
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Date of Incorporation : |
01.06.2010 |
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Com. Reg. No.: |
52481327-000-06 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of Precious & Semi-Precious
Jewellery, Diamonds, Gold & Silver Jewellery. |
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No. of Employees : |
01 |
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 : |
Very Small Company |
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Payment Behaviour : |
Slow |
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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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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Hong Kong |
A1 |
A1 |
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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 |
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.
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Source
: CIA |
BLESSING TRADING COMPANY
ADDRESS: Room 1211, 12/F., Tower 2, The Metropolis
Residence, 9 Metropolis Drive, Hunghom, Kowloon, Hong Kong.
PHONE: 852-3528 7226
FAX: 852-3528 7227
Manager: Mr. Chan Kin
Establishment: 1st June, 2010.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Importer,
Exporter and Wholesaler.
Employee: 1.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
BLESSING TRADING
COMPANY
Head Office:-
Room 1211, 12/F., Tower 2, The Metropolis Residence, 9 Metropolis Drive,
Hunghom, Kowloon, Hong Kong.
Associated
Companies:-
A & A Precious Metals (H.K.) Company, Hong Kong. [Ceased business]
Yuriko Trading Co., Hong Kong.
52481327-000-06
Manager: Mr. Chan Kin
Contact Person: Ms. Cheung
Wai-Mei
Name: Mr. CHAN Kin
Residential Address: Room 2026,
20/F., Kwai Yiu House, Lai Yiu Estate, Kwai Chung, New Territories,
Hong Kong.
The subject was established on 1st June, 2010 as a sole proprietorship
concern owned by Mr. Chan Kin under the Hong Kong Business Registration
Regulations.
Originally the subject was registered under the name of A & A
Trading Co., name changed to the present style on 4th June, 2014.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: Precious &
semi-precious jewellery, diamonds, gold & silver jewellery.
Employee: 1.
Commodities Imported: India,
Europe.
Markets: Hong Kong,
China, Southeast Asia countries, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T
Capital: Not disclosed.
Profit or Loss: Made small profits
in 2013 and 2014.
Condition: Keeping in a
fairly active manner.
Facilities: Making fairly
active use of general banking facilities.
Payment: Met trade commitments on
time.
Commercial Morality:
Satisfactory.
Banker: The Hong Kong & Shanghai
Banking Corp. Ltd., Hong Kong.
Standing: Small.
Formerly known as A & A Trading Company, Blessing Trading Co. was
established on 1st June, 2010 as a sole proprietary company owned by
Mr. Chan Kin who is a Hong Kong merchant.
Its operating office is located at Room 1211, 12/F., Tower 2, The
Metropolis Residence, 9 Metropolis Drive, Hunghom, Kowloon, Hong Kong
where is in a residential building. The
Metropolis is a multi-storey residential building and the gross area of the
premises located at the above-mentioned address is about 663 sq.ft. This is the new residential address of Chan
Kin.
According to the Land Office, the property owner of the premises are
Chen Kuang Tseng who bought this property on 11th August, 2003 at a consideration
of HK$2,383,000.00. No mortgage record
has been registered against this property. Chan Kin seems to be a tenant of the
premises.
The subject is trading in precious & semi-precious stones,
jewellery, diamonds, gold & silver jewellery, etc. Most of the commodities are imported from
India, Europe, etc. Products are sold in
Hong Kong, China and Southeast Asia countries.
Its affiliate, Yuriko Trading Co. is also engaged in the same line of
business and located at the same address.
Another associate, A & A Precious Metals (H.K.) Company formerly was
located at the same address and dealing in precious metals. However, this firm has been ceased business
since 13th August, 2007.
The subject’s business is fairly active.
History in Hong Kong is just over four years and eight months. The contact person Ms. Cheung Wai-Mei is the
only employee of the subject.
On the whole, since the subject is in a residential building, consider
it good for normal business engagements on L/C basis or in very small credit
amounts.
DIAMOND INDUSTRY – INDIA
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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.
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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.
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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.
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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.
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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.
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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.
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Excerpts from Times of India dated 30th October
2010 is as under –
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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.
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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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.79 |
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1 |
Rs.95.42 |
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Euro |
1 |
Rs.69.29 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
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.