MIRA INFORM REPORT

 

 

Report Date :

21.04.2012

 

IDENTIFICATION DETAILS

 

Name :

KREATORS  &  CONCEPTS

 

 

Registered Office :

C/o SBC Corporate Services Ltd.

Room 503, 5/F., Silvercord Tower 2, 30 Canton Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

09.07.2008

 

 

Com. Reg. No.:

39524639-000-07

 

 

Legal Form :

Sole Proprietorship.

 

 

Line of Business :

Importer, Exporter and Wholesaler of Loose diamonds, emerald, precious stones, gem sets,

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

No Operating Office in Hong Kong

Payment Behaviour :

Unknown

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company name and address      

 

KREATORS  &  CONCEPTS

 

 

ADDRESS:       c/o SBC Corporate Services Ltd.

Room 503, 5/F., Silvercord Tower 2, 30 Canton Road, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:            3519 6338

 

FAX:                 3519 6339

 

 

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.


ADDRESS

 

Head Office:-

c/o SBC Corporate Services Ltd.

Room 503, 5/F., Silvercord Tower 2, 30 Canton Road, Tsimshatsui, Kowloon, Hong Kong.

 

Associated Company:-

Kay International  (Same owner)

Flat E1, 3/F., Block 2, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong.

 

Business Partners:-

Anee Gems, Hong Kong.

Krunal Enterprise, India.

 

 

BUSINESS REGISTRATION NUMBER

 

39524639-000-07

 

 

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 2605, 26/F., Metropolis Tower 1, 8 Metropolis Drive, Hunghom, Kowloon, Hong Kong, moved to Flat E1, 3/F., Block 2, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong in June 2009; and further moved to the present address in June 2010.

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

 

 


OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           Loose diamonds, emerald, precious stones, gem sets,

 

Employees:                   Nil.

 

Commodities Imported:   India, Europe, other Asian countries, etc.

 

Markets:                       Japan, India, other Asian countries.

 

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 & 2011.

 

Condition:                      Business is fairly active.

 

Facilities:                      Making fairly active use of general banking facilities.

 

Payment:                      Met trade obligations as contracted.

 

Commercial Morality:     Satisfactory.

 

Banker:                         The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:                       Small.

 

 

GENERAL

 

Kreators & Concepts is a sole proprietorship set up and owned by Mr. Sanjay Kumar Pravinghandra Chavada who is an Indian.  Chavada is an India passport holder and does not have the right to reside in Hong Kong permanently.  He is also the manager of the subject.

The subject does not have its own operating office.  Its registered office is in a commercial service firm located at Room 503, 5/F., Silvercord Tower 2, 30 Canton Road, Tsimshatsui, Kowloon, Hong Kong known as SBC Corporate Services Ltd. which is handling its correspondences and documents.

Formerly the subject shared the same operating office with its associate Kay International which is located at Flat E1, 3/F., Block 2, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong.  Kay International is a Hong Kong-registered firm also operated by Sanjay Kumar Pravinghandra Chavada.  Kay International is also a diamond trader.  This firm was also established on 9th July, 2008.

The subject moved to the present address in early June 2010.

The subject is trading in loose diamonds, emerald, precious stones, gem sets, semi-precious stones, blue or coloured sapphire, etc.  Commodities are imported from India and some of the Asian and European countries.  Loose diamonds, polished and cut diamonds are marketed in Hong Kong, exported or re-exported to Japan and other Asian countries.  Business is normal.

The subject’s business is chiefly handled by Chavada himself.  Chavada has got business ties with a number of the jewellery suppliers and manufacturers in India while most of them are in Mumbai.

One of its India suppliers is Krunal Enterprise [Krunal] which is a rather significant firm in the country.

Krunal is a manufacturer, supplier, importer and exporter of a 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.

The subject is chiefly trading in Krunal’s products.  Chavada always goes back to his native country of commodities sourcing.

The history of the subject in Hong Kong is just over three years and nine months.

Since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on L/C basis.

 


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.

-          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.

-          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 –

 

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.

-          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

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.00

UK Pound

1

Rs.83.54

Euro

1

Rs.68.40

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.