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Report Date : |
30.12.2013 |
IDENTIFICATION DETAILS
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Name : |
PRINCESS JEWELLERY LTD. |
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Registered Office : |
Room 601-602, 6/F., Guardforce Centre, |
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Country : |
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Date of Incorporation : |
19.11.2007 |
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Com. Reg. No.: |
38649490 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of jewellery |
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No. of Employees : |
07 |
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 : |
Good |
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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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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
levies excise duties on only four commodities, namely: hard alcohol, tobacco,
hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. 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 9.1% of total system deposits in Hong
Kong by the end of 2012, an increase of 59% from the previous 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 34.9 million in 2012, 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 2012 mainland Chinese
companies constituted about 46.6% of the firms listed on the Hong Kong Stock
Exchange and accounted for about 57.4% 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,
and less than 2% in 2012. Credit expansion and tight housing supply conditions
caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in
2012. 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
PRINCESS JEWELLERY
LTD.
ADDRESS: Room 601-602, 6/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2721 4200
FAX: 852-2316 7695
E-MAIL: venusjewels@hotmail.com
hameshseth@hotmail.com
Managing Director: Mr. Hamesh Bhagchand Seth
Incorporated on: 19th November, 2007.
Organization: Private Limited Company.
Capital: Nominal:HK$10,000,000.00
Issued: HK$10,000,000.00
Business Category: Jewellery Trader.
Annual Turnover: HK$60~65 million. (Including associates in Hong Kong)
Employees: 7. (Including associates in Hong Kong)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 601-602, 6/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
China Factory:-
6/F., 46 Yin Jian Road, Daluo Tang Shiqiao 511400, Panyu, Guangzhou, Guangdong Province, China.
[Tel: (86-20) 3480 6750; Fax: (86-20) 3480 6760]
Affiliated/Associated
Companies:- (Same address)
Excellent Diamonds Ltd., Hong Kong.
Golden Dragon Jewellery Co., Hong Kong.
Mercury Impex, Hong Kong.
Princess Jewellery Co., Hong Kong.
38649490
1186529
Managing Director: Mr. Hamesh Bhagchand Seth
Nominal Share Capital: HK$10,000,000.00 (Divided into 100,000 shares of HK$100.00 each)
Issued Share Capital: HK$10,000,000.00
SHAREHOLDERS: (As per registry dated 19-11-2013)
|
Name |
|
No. of shares |
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Hamesh Bhagchand SETH |
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50,000 |
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Ashish Surendra KARNAVAT |
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50,000 |
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––––––– |
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Total: |
100,000 ====== |
DIRECTORS: (As per registry dated 19-11-2013)
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Name (Nationality) |
Address |
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Seema SETH |
Al & A5, 16/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong. |
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Hamesh Bhagchand SETH |
Al & A5, 16/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong. |
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Ashish Surendra KARNAVAT |
Al & A5, 16/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong. |
SECRETARY: (As per registry dated 19-11-2013)
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Name |
Address |
Co. No. |
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Lodestar Secretaries Ltd. |
13/F., Wah Kit Commercial Centre, 302 Des Voeux Road Central, Hong Kong. |
0113023 |
The subject was incorporated on 19th November, 2007 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 jewellery.
Employees: 7. (Including associates in Hong Kong)
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Hong Kong, Japan, other Asian countries, etc.
Annual Turnover: HK$60~65 million. (Including associates in Hong Kong)
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$10,000,000.00 (Divided into 100,000 shares of HK$100.00 each)
Issued Share Capital: HK$10,000,000.00
Mortgage or Charge: (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.
Bankers:-
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Allahabad Bank, Hong Kong Branch.
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Standing: Good.
Princess Jewellery Ltd. has issued 10,000,000 ordinary shares of HK$100.00 each which were equally owned by Mr. Hemant Suparash Jain and Mr. Garabh Vinodkumar Jain. Both Jains were India merchants. On 15th March, 2013, they transferred their shares to Mr. Hamesh Bhagchand Seth and Mr. Ashish Surendra Karnavat.
Currently the subject is sharing the office with Excellent Diamond Ltd. [EDL].
Incorporated on 6th August, 2003, EDL is equally owned by Mr. Gorabh Vinodkumar Jain and Hamesh Bhagchand Seth.
Seth is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.
The subject is a diamond importer, exporter and wholesaler. Products include single cuts, full cuts and fancy shapes — such as princess, baguettes, marquise, pearl, oval, emerald and heart. Raw materials are imported from India, Belgium and other European countries. Finished products are marketed in Hong Kong, exported to China, Thailand, Taiwan, the other Asian countries, Europe, etc. Its customers include wholesalers, jewellery manufacturers and diamond retailers.
The subject has got an associated factory in Panyu, Guangzhou, Guangdong Province, China. This factory supplies the subject and Venus with all kinds of jewellery products.
The subject has got an associated company Princess Jewellery Co. [PJC] located at the same operating address.
In order to penetrate the international market further, EDL 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 2014” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th to 9th March, 2014. Its booth No. is 3G-E08.
On the other hand, PJC is also going to take part in the same Show in 2014. Its booth No. is ED-F14.
The history of the subject in Hong Kong is over six years.
Since the subject has been changed hands, on the whole, consider it good for normal business engagements.
|
Date |
Particulars |
Amount |
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07-08-2012 |
Instrument: General Letter of Hypothecation Property: Charge on all goods and all bills of exchange, promissory notes and negotiable instruments of any kind and description, all bills of lading, dock warrants, delivery orders, warehouse warrants and receipts and other documents of title to or documents to or relating to goods, and all goods thereby represented or to which such documents relate, and all policies and certificates of insurance, which are now or may at any time after the date of this letter of hypothecation be in bank possession or held in bank’s name or in bank’s order or deposited with bank or bank’s agents. Mortgagee: Allahabad Bank, Hong Kong Branch. |
To secure all monies in respect of banking facilities |
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07-08-2012 |
Instrument: Obligations of the Depositor Property: Rate
of Maturity 2012FD 472-1 07-08-2012 US$675,000.00 1.05% 07-08-2013 Mortgagee: Allahabad Bank, Hong Kong Branch. |
To secure all monies in respect of banking 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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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 –
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Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
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The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.06 |
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|
1 |
Rs.102.03 |
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Euro |
1 |
Rs.85.27 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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 |
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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 |
-- |
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.