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Report Date : |
28.09.2012 |
IDENTIFICATION DETAILS
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Name : |
STS
GEMS LTD. |
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Registered Office : |
Unit 614, 6/F., |
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Country : |
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Date of Incorporation : |
02.05.1986 |
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Com. Reg. No.: |
10284458 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Diamond & Gemstone Trader of all kinds of diamonds and gemstones, etc. |
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No. of Employees : |
8. (Including
associate) |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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 |
STS GEMS LTD.
Unit 614, 6/F., Heng Ngai Jewellery Center, 4, Hok Yuen Street East, Hung Hom, Kowloon, Hong Kong.
PHONE: 2367 5066
FAX: 2739 4982
E-MAIL: info@stsgems.com.hk
Managing Director: Mr. Sunil Agrawal
Incorporated on: 2nd May, 1986.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000,000.00
Issued: HK$8,750,000.00
Business Category: Diamond & Gemstone Trader.
Group Revenue: INR 6,748.2 million (Year ended 31-03-2012)
Employees: 8. (Including associate)
Main Dealing Banker: Bank of Baroda, Hong Kong Branch, Hong Kong.
Banking Relation: Good.
Registered Head Office:-
Unit 614, 6/F., Heng Ngai Jewellery Center, 4, Hok Yuen Street East, Hung Hom, Kowloon, Hong Kong.
Holding Company:-
Vaibhav Gems Ltd., India.
Associated
Companies:-
Genoa Jewelers (St. Kitts) Ltd., West Indies.
Genoa Jewelers Ltd., British Virgin Islands.
Indo Mexico Co. S. De R.L De C.V., Mexico.
Jewel Gem USA Inc., USA.
STS Creations Thai Ltd., Thailand.
STS Gems Japan Ltd., Japan.
STS Gems Thai Ltd., Thailand.
STS Gems USA Inc., USA.
STS Holdings Ltd., Hong Kong.
STS Jewels Inc., USA.
The Jewellery Channel Inc., USA.
The Jewellery Channel Ltd., UK.
10284458
0168685
Managing Director: Mr. Sunil Agrawal
Nominal Share Capital: HK$10,000,000.00 (Divided into 100,000 shares of HK$100.00 each)
Issued Share Capital: HK$8,750,000.00
(As per registry
dated 02-05-2012)
|
Name |
|
No. of shares |
|
Vaibhav Gems Ltd. K-6B, Fateh Tiba, Adarsh Nagar Jaipur, Rajasthan 302005, India. |
|
87,500 ===== |
(As per registry
dated 02-05-2012)
|
Name (Nationality) |
Address |
|
Rizwan ULLAH |
House No. 722, Mohalla Patetan Kazi, Ka Nala, Ghat Gate, Jaipur, Rajastha, India. |
|
Sunil AGRAWAL |
6/F., Po Yuk Building, 61 Robinson Road, Hong Kong. |
(As per registry
dated 02-05-2012)
|
Name |
Address |
Co.
No. |
|
Lodestar Secretaries Ltd. |
13/F., Wah Kit Commercial Centre, 302 Des Voeux Road Central, Hong Kong. |
0113023 |
The subject was incorporated on 2nd May, 1986 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: Diamond & Gemstone Trader.
Lines: All kinds of diamonds and gemstones, etc.
Employees: 8. (Including associate)
Commodities Imported: India, other Asian countries, etc.
Markets: Hong Kong, China, other Asian countries, Europe, etc.
Group Revenue: INR 5,375.0 million (Year ended 31-03-2011)
INR 6,748.2 million (Year ended 31-03-2012)
Terms/Sales: L/C or as per contracted.
Terms/Buying: As per contracted.
Nominal Share Capital: HK$10,000,000.00 (Divided into 100,000 shares of HK$100.00 each)
Issued Share Capital: HK$8,750,000.00
Mortgage or Charge: (See attachment)
Group Net Profit: INR 431.0 million (Year ended 31-03-2011)
INR 685.1 million (Year ended 31-03-2012)
Profit or Loss: Making a small profit every year.
Condition: Keeping in a satisfactory manner.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: Bank of Baroda, Hong Kong Branch, Hong Kong.
Standing: Small.
STS Gems Ltd. is a wholly-owned subsidiary of Vaibhav Gems Ltd. [Vaibhav/Group] which is an India-based firm.
Vaibhav is a listed firm in India. Incorporated in Jaipur, India in 1989, Vaibhav is today a professionally managed, end-to-end vertically integrated business organization.
Vaibhav started as a gemstone manufacturer and then in 1996-97, as a forward integration. It came out with IPO to establish a jewellery‑manufacturing unit for export of gem-studded gold jewellery. First unit was set up at Adarsh Nagar Jaipur in 1997. In the year 1999, it set up a new 100% Export Oriented Unit at Export Promotion Industrial Area, Sitapura, Jaipur. In 2002 it installed an Italian micro-weight gold chain manufacturing plant.
The subject is engaged in outsourcing products for the Group and also marketing jewellery products throughout the world.
The subject is one of the members of the STS Group.
STS Group with headquarters in Austin, TX (STS Jewels Inc.) is amongst the better-known organizations in the colour gemstones and jewellery industry. Tanzanite Jewellery is STS Group’s specialty.
STS has over 1,800 skilled and trained employee worldwide. These include professionals engaged in designing, manufacturing and distribution of jewellery and gemstones.
Besides the subject, STS Group has an extensive Product Development team and infrastructure spread over New York, Bangkok and India.
From a humble beginning, the group has steadily expanded to be one of the most vertically integrated jewellery companies in the world. Today, the group has four plants in India and Thailand engaged in gemstone cutting and jewellery manufacturing, using casting and stamping operations. The latest addition is a state of art micro-weight rope chain manufacturing plant.
For the year ended 31st March, 2012, the revenues of the Group amounted to INR 6,748.2 million (2011: INR 5,375.0 million), Group profit amounted to INR 685.1 million (2011: INR 431.0 million).
The subject is fully supported by the Group. History in Hong Kong is over 26 years.
On the whole, consider it good for normal business engagements.
|
Date |
Particulars |
Amount |
|
25-07-2006 |
Instrument: Memorandum Property: Distinctive TD 1065 14-07-2006 120,285.00 16-10-2006 TD 1077 21-07-2006 80,000.00 23-10-2006 Mortgagee: Bank of Baroda, Hong Kong Branch. |
Loan or credit or other facilities |
|
27-09-2007 |
Instrument: Memorandum Property: Distinctive 91220300000036 15-07-2007 US$126517.03 15-10-2007 91220300000054 22-07-2007 US$84144.84 20-10-2007 Mortgagee: Bank of Baroda, Hong Kong Branch. |
Loan or credit or other facilities |
|
22-04-2010 |
Instrument: Memorandum Property: No.
of Receipts Date of
Issue Amount Due Date 91220300000036 03-01-2010 US$136,328.00 01-01-2011 91220300000367 06-10-2009 US$270,660,07 05-10-2010 91220300000379 27-10-2009 US$42,884,75 26-10-2010 91220300000975 12-07-2009 US$65,284.01 11-07-2010 Mortgagee: Bank of Baroda, Hong Kong Branch. |
Loan or credit or other facilities |
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.53.26 |
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UK Pound |
1 |
Rs.86.23 |
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Euro |
1 |
Rs.68.64 |
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 |
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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.