MIRA
INFORM REPORT
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Report Date : |
20.01.2012 |
IDENTIFICATION DETAILS
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Name : |
A. V. S. EXPORTS LTD. |
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Registered Office : |
Unit A, 6/F., Prat Commercial Building, 17-19 Prat Avenue, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
05.06.2000 |
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Com. Reg. No.: |
30983509 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery |
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No. of Employees : |
2. |
RATING & COMMENTS
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MIRAs Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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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 30, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Hong Kong
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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 and address
A. V.
S. EXPORTS LTD.
ADDRESS: Unit A, 6/F., Prat Commercial
Building, 17-19 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 3101 9778
FAX: 3107 9312
E-MAIL: avsexpltd@netvigator.com
MANAGEMENT
Managing Director: Mr. Sachin
Shashikant Shah
SUMMARY
Incorporated on: 5th
June, 2000.
Organization: Private
Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10,000.00
Business Category: Diamond Trader.
Employees:
2.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
ADDRESS
Registered Head Office:-
Unit A, 6/F., Prat Commercial Building, 17-19 Prat Avenue, Tsimshatsui,
Kowloon, Hong Kong.
Affiliated Company:-
Fantasy Jewelry Ltd., Hong Kong.
(Same address)
BUSINESS REGISTRATION NUMBER
30983509
COMPANY FILE NUMBER
0719248
MANAGEMENT
Managing Director: Mr. Sachin
Shashikant Shah
Contact Person: Ms. Elsa Chung
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
SHAREHOLDERS
(As per registry dated 05-06-2011)
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Name |
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No. of shares |
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Sachin Shashikant SHAH |
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5,000 |
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Vrunali Sachin SHAH |
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5,000 |
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Total: |
10,000 ===== |
DIRECTORS
(As per registry dated 05-06-2011)
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Name (Nationality) |
Address |
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Sachin Shashikant SHAH |
Flat B, 3/F., 83-85 Chatham Road South, Tsimshatsui, Kowloon, Hong
Kong. |
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Vrunali Sachin SHAH |
Flat B, 3/F., 83-85 Chatham Road South, Tsimshatsui, Kowloon, Hong
Kong. |
SECRETARY
(As per registry dated 20-09-2011)
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Name |
Address |
Co. No. |
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W.H.S. Consultants Ltd. |
Room 907, 9/F., Wayson Commercial Building, 28 Connaught Road West,
Sheung Wan, Hong Kong. |
0873536 |
HISTORY
The subject was incorporated on 5th June, 2000 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Unit A, 5/F., Prat Commercial Building,
17-19 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to Unit A, 6/F. of
the same building in March 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 diamonds and jewellery.
Employees: 2.
Commodities Imported: India, Belgium, other European countries, other Asian countries,
etc.
Markets: Japan,
other Asian countries, Middle East, US, Europe, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
FINANCIAL INFORMATION
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of
HK$1.00 each)
Issued Share Capital: HK$10,000.00
Profit or Loss: Making a small profit every year.
Condition:
Keeping in an
active condition.
Facilities:
Making rather
active use of general banking facilities.
Payment:
So far so good.
Commercial Morality: Satisfactory.
Banker:
The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Standing:
Normal.
GENERAL
Having issued 10,000 ordinary shares of HK$1.00 each, A. V. S. Exports
Ltd. is equally owned by two Indian, Mr. Sachin Shashikant Shah and Mr. Vrunali
Sachin Shah. They are also directors of
the subject. The two Shahs are
Hong Kong ID Card holders and have got the right to reside in Hong Kong
permanently.
The subject has changed its corporate secretary since 20th September,
2011.
The subject is a diamond importer, exporter and wholesaler. It has got an affiliated company Fantasy Jewelry
Ltd. [Fantasy Jewelry] located at its operating address. Incorporated on 1st August, 2003, Fantasy
Jewelry is also a jewellery trader. The
brand name owned by Fantasy Jewelry is Genie London. Fantasy Jewelry seems to be a business
partner of the subject.
Business commenced in June 2000, the subject is trading in loose
diamonds, emerald, precious stones, ruby jade, gem sets, semi-precious stones,
blue or coloured sapphire, Tanzanite, etc.
Commodities are imported from India, Belgium and other European
countries. Gem stones and diamonds are
processed, polished and cut in Hong Kong.
The subject also wholesales gold jewellery. Finished products are marketed in Hong Kong,
exported to Japan, other Asian countries, the Middle East, the United States,
Europe, etc. Business is steady.
The subjects business is chiefly handled by the two Shahs who have had
close business ties with some of the diamond firms in India.
In order to penetrate the international market further, the subject has
taken part in fairs and exhibitions held in Hong Kong and other foreign large
cities. For instance, it is going to
take part in HKTDC Hong Kong International Jewellery Show 2012 which will be
held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during
the period of 16th to 20th February, 2012.
The contact person of Fantasy Jewelry is Ms. Elsa Chung who is a
Hongkongnese. She is also the contact
person of the subject.
In October 2009, the subject was sued by the Secretary for Justice of
Hong Kong for a minor case, however, details were unknown.
Having a history of over eleven years and seven months in Hong Kong, on
the whole, the subject is considered good for normal business engagements.
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
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.50.29 |
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|
1 |
Rs.77.60 |
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Euro |
1 |
Rs.64.67 |
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 SCs 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.