MIRA INFORM REPORT
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Report Date : |
02.12.2011 |
IDENTIFICATION DETAILS
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Name : |
KAY
INTERNATIONAL |
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Registered Office : |
Flat E1, 3/F., Block 2, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
09.07.2008 |
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Com. Reg. No.: |
39524655-000-07 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of loose diamonds and gemstones. |
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No. of Employees : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment
Behaviour : |
Usually Correct |
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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 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Hong Kong |
a2 |
a2 |
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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 |
Company name
Bottom of Form
KAY INTERNATIONAL
Company ADDRESS
Flat E1, 3/F., Block 2, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
PHONE: 3741 1157
MANAGEMENT
Manager: Mr. Sanjay Kumar Pravinghandra Chavada
SUMMARY
Establishment: 9th July, 2008.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond Trader.
Employees: Nil.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Company ADDRESS
Head Office:-
Flat E1, 3/F., Block 2, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
Affiliated
Companies:-
Karat Exim, Hong Kong. (Same address)
Kreators & Concepts, Hong Kong. (Same owner)
Kristal Designs, Hong Kong. [Business ceased]
Business
Partners:-
Anee Gems, Hong Kong.
Krunal Enterprise, India.
BUSINESS REGISTRATION NUMBER
39524655-000-07
MANAGEMENT
Manager: Mr. Sanjay Kumar Pravinghandra Chavada
SOLE PROPRIETOR
Name: Mr. Sanjay Kumar Pravinghandra CHAVADA
Residential Address: Nearnay Nagar Sel 7-B, Block L-5, Ahemdabad, India.
HISTORY
The subject was established on 9th July, 2008 as a sole proprietorship concern owned by Mr. Sanjay Kumar Pravinghandra Chavada under the Hong Kong Business Registration Regulations.
Initially the subject was located at Room 1606, 16/F., Winfield Commercial Building, 6-8 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in June 2009.
Apart from these, neither material change nor amendment has been ever traced and noted.
OPERATIONS
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of loose diamonds and gemstones.
Employees: Nil.
Commodities Imported: India, other Asian countries, etc.
Markets: Hong Kong, other Asian countries, Europe, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
FINANCIAL INFORMATION
Capital: Not disclosed.
Profit or Loss: Kept a balance account in 2010.
Condition: Business keeps on improving.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
GENERAL
Kay International is a sole proprietorship set up and owned by Mr. Sanjay Kumar Pravinghandra Chavada who is an Indian. Chhavada is an India passport holder and does not have the right to reside in Hong Kong permanently.
The subject does not have its own operating office. Its registered address is in the operating office of Karat Exim which is also a diamond trader.
There was another firm Kristal Designs located at the operating address of Karat Exim, however, Kristal Designs ceased business formally on 31st December, 2009.
The subject is considered having business ties with Krunal Enterprise [Krunal] which is an India-based firm. Krunal is a manufacturer, supplier, importer and exporter of versatile range of diamonds like full cut marquise diamonds, full cut pears diamonds, full cut tapper diamonds, buggetts, rose cuts diamonds, round brilliant cut diamonds and many more. It is specialized in manufacturing diamond rings, diamond pendants, diamond earrings or jewellery in customized designs.
Krunal has had a Hong Kong affiliate known as Anee Gems which may be a business partner of the subject. Besides Anee Gems in Hong Kong, Krunal has got another overseas office in the United Arab Emirates known as “Luster Jewellers”.
According to the subject, it is an importer, exporter of diamonds and jewellery. It is also a commission agent. The subject also trades in Krunal’s products as Krunal is one of its principal suppliers.
Besides the subject, Chavada is also operating another firm known as Kreators & Concepts in Hong Kong. Kreators & Concepts is a sole proprietorship set up on 9th July, 2008, same date of the subject, and also owned by Chavada under the Hong Kong Business Registration Regulations. Kreators & Concepts is located at a different address. This firm is trading in the same kind of products as the subject. However, we consider the operating address of the subject is the same as Kreators & Concepts which is also a diamond trader.
Commodities are imported from India and some of the European countries such as Israel, Belgium. Products carried include polished and cut diamonds. Finished products and polished diamonds are marketed in Hong Kong, exported or re-exported to Japan and other Asian countries.
The business of the subject and Kreators & Concepts is chiefly handled by Chavada himself.
Being a one-man company, the subject has no other employees in Hong Kong. It seems that Chavada has got close business ties with Krunal which is in Mumbai, Maharashtra, India. Krunal is also a major supplier of Kreators & Concepts.
The history of the subject is over three years and a month. Business keeps on improving.
Since the subject just uses the operating address of the other firms as its registered address and has no employees in Hong Kong, on the whole, consider it good for business engagements on Secured basis.
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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The diamond jewellery industry in India today may be more than Rs 60000
mil and is rated amongst the fastest growing in the world. Indi ranks
third in the world in domestic diamond consumption.
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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 –
DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
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Most of the money borrowed from the banks in the name of their diamond
business has been diverted in real estate and the share market. The banks are
not in a position to seize their properties because in many cases, these were
purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.51.65 |
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UK Pound |
1 |
Rs.81.06 |
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Euro |
1 |
Rs.69.51 |
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.