MIRA INFORM REPORT
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Report Date : |
22.09.2012 |
IDENTIFICATION DETAILS
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Name : |
KIRAN
EXPORTS ( |
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Registered Office : |
Room 905, 9/F., Hilder Centre,
2 Sung Ping Street, Hunghom, |
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Country : |
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Date of Incorporation : |
12.11.2003 |
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Com. Reg. No.: |
34110655 |
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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 PRODUCTS, EMERALD, PRECIOUS STONE |
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No. of Employees
: |
08 |
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 : |
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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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.
Source
: CIA
KIRAN EXPORTS (HONG KONG) LTD.
Room 905, 9/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2366 2488
FAX: 2739 8288
E-MAIL: infohk@kirangems.com
Managing Director: Mr. Gautam Bhikhabhai Gopani
Incorporated on: 12th November, 2003.
Organization: Private Limited Company.
Capital: Nominal: HK$92,540,000.00
Issued: HK$92,540,000.00
Business Category: Diamond Trader.
Employees: 8.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Room 905, 9/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon, Hong Kong.
Headquarters:-
Kiran Gems Pvt. Ltd.
109, Prasad Chambers, Opera House, Mumbai-400004, India.
[ Tel: 91-22-4050 4444
Fax: 91-22-4050 4455
E-mail: info@kirangems.com]
Factories:- [Under the name of Kiran Gems Pvt. Ltd.]
Plot No. 9, G/F., Near
Affil Tower, Lambe Hanuman Road, Varachha, Surat-395 006, Gujarat, India.
Tel: 91 261 255 4514
Fax: 91 261 255 2606
E-mail: infosurat@kirangems.com
217-218, Tarabaug Estate,
Opp: Jeevandhara Hotel, Varachha Road, Surat 395 006, Gujarat, India.
Tel: 91 261 255 3983
Fax: 91 261 255 3982
E-mail: kiranbvn@yahoo.com
Holding Company:-
Kiranmani Diamonds Private Ltd., India.
Associated Companies:-
Kiran Exports B.V.B.A., Belgium.
Kiran Jewelry, India.
Kiran Jewels Inc., USA.
Kiran Jewels LLC, UAE.
34110655
0870142
Managing Director: Mr. Gautam Bhikhabhai Gopani
Nominal Share Capital: HK$92,540,000.00 (Divided into 50,000 Ordinary shares and 9,204,000 Redeemable Preference shares of HK$10.00 each)
Issued Share Capital: HK$92,540,000.00
(As per registry
dated 12-11-2011)
|
Name |
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No. of shares |
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Redeemable preference |
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Gautam Bhikhabhai GOPANI |
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5,000 |
- |
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Kiranmani Diamonds Private Ltd. 109, Prasad Chambers, Opera House, Mumbai-400004, India. |
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30,000 |
- |
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Vimal Labhubhai LAKHANI |
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15,000 |
- |
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Ashish Babulal LAKHANI |
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- |
9,204,000 |
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–––––– |
–––––––– |
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Total: |
50,000 ===== |
9,204,000 ======= |
(As per registry
dated 12-11-2011)
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Name (Nationality) |
Address |
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Gautam Bhikhabhai GOPANI |
Unit H, 22/F., Tower 5, Laguna Verde, Hunghom, Kowloon, Hong Kong. |
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Ami Gautam GOPANI |
Flat B, 8/F., Tower 6, Laguna Verde Avenue, 8 Tai Wan Road East, Hunghom, Kowloon, Hong Kong. |
(As per registry
dated 12-11-2011)
|
Name |
Address |
Co.
No. |
|
Champion Corporate Ltd. |
Room 2002, 20/F., Emperor Group Centre, 288 Hennessy Road, Wanchai, Hong Kong. |
0657221 |
The subject was incorporated on 12th November, 2003 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.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds and jewellery products, emerald, precious stones, etc.
Employees: 8.
Commodities Imported: India, other Asian countries, Europe, etc.
Markets: Worldwide countries.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$92,540,000.00 (Divided into 50,000 Ordinary shares and 9,204,000 Redeemable Preference shares of HK$10.00 each)
Issued Share Capital: HK$92,540,000.00
Alternation of Capital:-
|
Initially |
paid up |
HK$ 49,640,000.00 |
|
28-03-2011 |
paid up |
HK$ 42,900,000.00 |
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–––––––––––––––– |
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Total: |
paid up |
HK$ 92,540,000.00 ============== |
Increase of Nominal Capital:-
|
From |
HK$49,640,000.00 |
to |
HK$92,540,000.00 |
on |
28-03-2011 |
Mortgage or Charge (since 2009): (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Keeping in a satisfactory condition.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
Kiran Exports (Hong Kong) Ltd. is chiefly owned by the Lakhani family, all of whom are Indian. The headquarters of the subject are in India bearing the name of Kiran Gems Pvt. Ltd. [Kiran].
Kiran is an identity in the world of diamond manufacturer since 1985 and today has claimed to be “The Largest Manufacturer of white diamonds under 1 carat”. Focusing on its core-strengths of manufacturing, Kiran has carved a prime niche for itself in the mass luxury segment. It is also one of India’s largest employment opportunity creators with more than 24,000 skilled professionals under its umbrella adding value to polished diamonds and the jewels it creates. Kiran has a vision of becoming a global customer centric enterprise with a totally integrated value chain from Rough to Retail.
Being a DTC sightholder company, Kiran has achieved benchmarks in terms of quality, complying with to the Best Practice Principles [BPP] and Ethical norms of the industry.
With a massive production of nearly 1,470,000 (1.47 million) carats of polished diamonds annually, Kiran facilitates in the growth of over a 1,000 excelling jewellery businesses world-wide.
Kiran’s product range includes finely cut and crafted natural diamonds of different shapes — round, marquise, pears princess, emeralds, hearts and ovals from the smallest to 1.5 cts stone.
The followings are the strengths of Kiran:-
· Largest exporter of cut and polished diamonds from India to rest of the world since 2007-08. (DTC Category / Source GJEPC)
· Wide range of product variety available in several different sizes from the smallest up to 2 carat stones. (Certified / Non Certified)
· Over 1,000 globally customers through dedicated account management from global offices of Mumbai, Hong Kong, Antwerp, Dubai and New York.
Kiran has a unique grading system developed through the decades of experience of its principals synchronized with global standards. The majority of its products are available in 17 different grades of colour and clarity that go through a stringent quality control module where every stone is scrutinized by its experienced craftsmen and only then is allowed to be a part of its collection.
Besides the subject in Hong Kong, Kiran has set up associated companies in Belgium, Thailand, Israel, Malaysia, the United States, the United Arab Emirates, Switzerland, the United Kingdom and India. It has had two factories in Varachha, Surat, India.
The subject is fully supported by Kiran. History in Hong Kong is over eight years and four months.
On the whole, consider it good for normal business engagements.
(Since 2009)
|
Date |
Particulars |
Amount |
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29-09-2010 |
Instrument: Debenture constituting a fixed and/or floating charge over all the assets of the Company Property: 1) By way of first fixed charge: (i) all chattels as at the date of the Debenture or at any time thereafter belong to the Company; (ii) all book debts and other debts and monetary claims at the date of the Debenture or at any time thereafter due owed or incurred to the Company; (iii) any credit balance on any account of the Company with the Bank; (iv) all goodwill and uncalled capital for the time being of the Company; (v) all stocks shares debentures bonds loan capital and other securities of any description of any other person; (vi) all letters patent trademarks service marks designs utility models copyrights design rights and applications for registration of any of the foregoing and the right to apply for them in any part of the world moral rights inventions confidential information know how and rights of like nature arising or subsisting anywhere in the world in relation to all of the foregoing whether registered or unregistered at the date of the Debenture; (vii) all present and future contracts or policies of insurance and all rights and claims to which the Company is at the date of the Debenture; and (viii) the proceeds of sale of any property referred to above 2) By way of floating charge all the undertaking of the Company and all its property whatsoever and wheresoever both present and future Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
All monies and liabilities in any currency due owing or incurred by the Company to the Bank |
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.53.90 |
|
UK Pound |
1 |
Rs.87.60 |
|
Euro |
1 |
Rs.70.01 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
|
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.