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Report Date : |
02.11.2012 |
IDENTIFICATION DETAILS
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Name : |
KREATORS & CONCEPTS |
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Registered Office : |
C/o SBC Corporate Services Ltd. Room 503, 5/F., |
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Country : |
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Date of Incorporation : |
09.07.2008 |
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Com. Reg. No.: |
39524639-000-07 |
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Legal Form : |
Sole Proprietorship. |
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Line of Business : |
Importer, Exporter and Wholesaler of Loose diamonds, emerald, precious stones, gem sets, |
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No. of Employees : |
Not Available |
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 : |
No Operating Office in Hong Kong |
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Payment Behaviour : |
Unknown |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 |
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'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, it again faces a possible slowdown as exports to the Euro zone and US slump. 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 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. 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 exports 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 28 million in 2011, 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 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% 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. Growth slowed to 5% in 2011. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. 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.
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Source : CIA |
KREATORS & CONCEPTS
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
Manager: Mr. Sanjay Kumar
Pravinghandra Chavada
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.
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.
39524639-000-07
Manager: Mr. Sanjay Kumar
Pravinghandra Chavada
Name: Mr. Sanjay Kumar Pravinghandra CHAVADA
Residential Address: Nearnay
Nagar Sel 7-B, Block L-5, Ahemdabad, India.
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.
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.
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.
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 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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.79 |
|
UK Pound |
1 |
Rs.86.77 |
|
Euro |
1 |
Rs.69.71 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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 |
|
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 |
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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.