MIRA INFORM REPORT

 

 

Report Date :

05.07.2012

 

IDENTIFICATION DETAILS

 

Name :

ASTOR  JEWELLERY  CO.  LTD.

 

 

Registered Office :

Room 1001-1003, 10/F., Lane Crawford House, 70 Queen’s Road Central

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

04.01.1972

 

 

Com. Reg. No.:

03439517

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Manufacturer, Importer and Exporter of Diamond, jewellery, ruby emerald, sapphire, semi-precious stone, platinum jewellery and pearl jewellery, etc.

 

 

No. of Employees :

15.  (Including affiliate)

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

Payment Behaviour :

No Complaints

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

 

ASTOR  JEWELLERY  CO.  LTD.

 

 

Company ADDRESS

 

Room 1001-1003, 10/F., Lane Crawford House, 70 Queen’s Road Central, Hong Kong.

 

PHONE:            2524 6712

FAX:                 2868 4154

E-MAIL:            maxim@netvigator.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Wai Wing Lung, Henry

 

 

SUMMARY

 

Incorporated on:             4th January, 1972.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$2,000,000.00

Issued:              HK$2,000,000.00

 

Business Category:        Manufacturer, Importer and Exporter.

 

Annual Turnover:            US$25-30 million  (Including affiliate)

 

Employees:                   15.  (Including affiliate)

 

Main Dealing Banker:     Hang Seng Bank Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.


Company ADDRESS

 

Registered Head Office:-

Room 1001-1003, 10/F., Lane Crawford House, 70 Queen’s Road Central, Hong Kong.

 

Holding Company:-

Bestrich Holdings Ltd., Hong Kong.

 

Affiliated Company:-

Maxim Jewellery Co., Hong Kong.  (Same address)

 

 

BUSINESS REGISTRATION NUMBER

 

03439517

 

 

COMPANY FILE NUMBER

 

0026421

 

 

MANAGEMENT

 

Managing Director:  Mr. Wai Wing Lung, Henry

 

 

CAPITAL

 

Nominal Share Capital:   HK$2,000,000.00 (Divided into 20,000 shares of HK$100.00 each)

 

Issued Share Capital:     HK$2,000,000.00

 

 

SHAREHOLDERS

(As per registry dated 04-01-2012)

 

Name

 

No. of shares

Bestrich Holdings Ltd., Hong Kong.

 

4,000

WAI Chen Te, Janet

 

5,800

WAI YIN Mei Ying

 

10,200

 

 

––––––

 

Total:

20,000

=====

 

 

DIRECTORS

(As per registry dated 04-01-2012)

 

Name

(Nationality)

 

Address

Joseph WAI

Room 1001-1003, 10/F., Lane Crawford House, 70 Queen’s Road Central, Hong Kong.

 

Nelson WAI

6/F., 15 Fontana Gardens, Ka Ning Path, Causeway Bay, Hong Kong.

 

WAI Wing Lung

Room 1001-1003, 10/F., Lane Crawford House, 70 Queen’s Road Central, Hong Kong.

 

 

SECRETARY 

(As per registry dated 04-01-2012)

 

Name

Address

Nelson, WAI

6/F., 15 Fontana Gardens, Ka Ning Path, Causeway Bay, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 4th January, 1972 as a private limited liability company under the Hong Kong Companies Ordinance.

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

 

OPERATIONS

 

Activities:                      Manufacturer, Importer and Exporter.

 

Lines:                           Diamond, jewellery, ruby emerald, sapphire, semi-precious stone, platinum jewellery and

pearl jewellery, etc.

 

Employees:                   15.  (Including affiliate)

 

Commodities Imported:   Belgium, Israel, India, other European countries, etc.

 

Markets:                       Hong Kong, other Asian countries, Europe, US, etc.

 

Annual Turnover:            US$25-30 million  (Including affiliate)

 

Terms/Sales:                 L/C, T/T, etc.

 

Terms/Buying:               L/C, T/T, D/P, etc.

 

 

MEMBERSHIP

 

·         Hong Kong Jewellery & Jade Manufacturers Association, Hong Kong.

The Hong Kong Jade & Stone Manufacturers Association, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$2,000,000.00 (Divided into 20,000 shares of HK$100.00 each)

 

Issued Share Capital:     HK$2,000,000.00

 

Profit & Loss:                Making a small profit every year.

 

Condition:                      Keeping in an active condition.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      So far so good.

 

Commercial Morality:     Good.

 

Banker:                         Hang Seng Bank Ltd., Hong Kong.

 

Standing:                      Good.

 

 

GENERAL

 

Incorporated on 04th January 1972, Astor Jewellery Co. Ltd. is chiefly owned by the Wai family.  Mr. Henry Wai is the Managing Director of the subject.

The subject is jointly owned by Bestrich Holdings Ltd., 

a Hong Kong‑registered firm holding 20% interests; Ms. Wai Chen Te Janet, holding 29%, and Mrs. Wai Yin Mei Ying, 51%.

The subject has got an affiliate or a predecessor that was set up in 1960.  The Wai family has been engaged in the line of business for about 52 years.  The subject is a polished diamond importer and wholesaler.  It is also a jewellery product manufacturer.  Raw materials are imported from India, Belgium, Israel, etc.

The subject has got an affiliated company Maxim Jewellery Co. [Maxim] which is also located at its operating office.  Maxim is engaged in the same line of business as the subject.

Maxim manufactures fine jewellery made in 18K white or yellow gold as well as platinum in south sea pearl with diamond.  A full range of diamonds jewellery is also available.

The followings are some of its brands:-

Candy Chrono, Candy Club, Candy Flash, Candy Set, Candy Time, Candy Time Mini, Candy Time VIP, Juicy Glamour, etc.

Products are exported to Taiwan, South Korea, Japan, Southeast Asian countries and North America.

Mr. Henry Wai is the Honorary Life Chairman of The Hong Kong Jade & Stone Manufacturers Association, Hong Kong.  His father Mr. Wai Yiu Keng set up Po Cheong Jewellery Co. Ltd. [Po Cheong Jewellery] in Shanghai in the 1930’s.  Po Cheong Jewellery was a very significant jewellery firm in Shanghai in the era.  Now, this firm has changed hands.

The subject has developed long-term business ties with a number of foreign suppliers and customers.

It is reported that the annual sales turnover of the subject and Maxim ranges from US$25 from 30 million.  Overall business is steady and profitable.

The subject’s business is chiefly handled by Mr. Joseph Wai.

On the whole, in view of the subject’s history and reputation, consider it good for normal business engagements.


 

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.54.55

UK Pound

1

Rs.85.48

Euro

1

Rs.68.70

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.