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Report Date : |
24.06.2013 |
IDENTIFICATION DETAILS
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Name : |
ORICAN ASIA LTD. |
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Registered Office : |
Room 507, 5/F., |
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Country : |
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Date of Incorporation : |
05.01.1995. |
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Com. Reg. No.: |
18775514 |
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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. |
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No. of Employees : |
8 |
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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Hong Kong |
A2 |
A2 |
|
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
ORICAN ASIA
LTD.
ADDRESS: Room 507, 5/F., Central
Building, 21-27 Queen’s Road Central, Hong Kong.
PHONE: 852-2526 3102
FAX: 852-2845 1632
E-MAIL: oricanasia@yahoo.com
Managing Director: Mr. Sunantha
Chatjaval
Incorporated on: 5th
January, 1995.
Organization: Private
Limited Company.
Capital: Nominal: HK$1,000.00
Issued : HK$2.00
Business Category: Diamond Trader.
Annual Turnover: HK$130~160
million.
Employees:
8.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Room 507, 5/F., Central Building, 21-27 Queen’s Road Central,
Hong Kong.
Affiliated Company:-
Jewelry Investment Holdings Ltd., Hong Kong.
18775514
502211
Managing Director: Mr. Sunantha
Chatjaval
Nominal Share Capital: HK$1,000.00 (Divided into 1,000 shares of HK$1.00
each)
Issued Share Capital: HK$2.00
(As per registry dated 05-01-2013)
|
Name |
|
No. of shares |
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Thasana Holdings Ltd., Hong Kong |
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1 |
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Sunantha CHATJAVAL |
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1 |
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–– |
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Total: |
2 = |
(As per registry dated 05-01-2013)
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Name (Nationality) |
Address |
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Bhornbhot CHATJAVAL |
Room 507, 5/F., Central Building, 21-27 Queen’s Road Central, Hong
Kong. |
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Sunantha CHATJAVAL |
G8, Grenville House, 1 Magazine Gap Road, Hong Kong. |
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Suthat CHATJAVAL |
G8, Grenville House, 1 Magazine Gap Road, Hong Kong. |
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Virachet CHATJAVAL |
4 Kadoorie Avenue, Kowloon, Hong Kong. |
(As per registry dated 05-01-2013)
|
Name |
Address |
Co. No. |
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W.T. (Secretaries) Ltd. |
Level 28, Three Pacific Place, 1 Queen’s Road East, Hong Kong. |
0042150 |
The subject was incorporated on 5th January, 1995 as a private limited
liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Signet Ventures
Ltd., name changed to the present style on 2nd March, 1995.
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
Employees: 8.
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan,
Southeast Asia, Europe, Middle East, etc.
Annual Turnover: HK$130~160 million.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
Diamond Federation of Hong Kong, China Ltd.,
Hong Kong.
Nominal Share Capital: HK$1,000.00 (Divided into 1,000 shares of
HK$1.00 each)
Issued Share Capital: HK$2.00
Profit or Loss: Operation showed profitable.
Condition:
Maintained in
an active manner.
Facilities: Is making use of general banking facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Bangkok Bank Public Co. Ltd., Hong Kong
Branch.
Standing:
Normal.
Orican Asia Ltd. is equally owned by Thasana Holdings Ltd., a Hong Kong-registered
firm located at the same operating address as the subject, and
Mr. Sunantha Chatjaval who is a rich Indian merchant. The subject has just issued 2 ordinary shares
of HK$1.00 each while each of the shareholders holds a single share.
The subject is wholly-owned by the Chatjaval family. All the directors of the subject are the
members of the family. All of them are
Hong Kong ID Card holders and have got the right to reside in Hong Kong
permanently.
The subject is trading in polished diamonds, ranging from sizes 0.005
carat to over 10 carat stones with GIA and HRD certificates. Its significant products are Round-Cut
Diamonds, Fancy Yellow Diamonds.
Most of the commodities are imported from India, Belgium and other
European countries. Prime markets are
Australasia, China, Hong Kong, South Korea, the Middle East, Southeast Asia,
Taiwan, etc. Business is active and
profitable.
According to the subject, it has developed partnerships with two
companies: from Antwerp, Belgium, Diamex Manufacturing and Grossmann Diamond
Manufacturing [Grossmann].
Grossmann has had its manufacturing units located in Sri Lanka and
Vietnam.
Sunantha Chatjaval is also the director of Jewelry Investment Holdings
Ltd. [JIHL], a Hong Kong-registered firm which is in the operating office of an
accountant firm. The shareholders of
this firm are Mr. Chua Koon Seng and Kingplace Nominees Ltd. The former is a Singaporean merchant while
the latter is a Hong Kong firm. Chua is
also a director of JIHL which is also a diamond trader. JIHL exports diamonds to Singapore chiefly.
The annual sales turnover of the subject ranges from HK$130 to 160
million. Making a small profit every
year.
In order to penetrate the international market further, the subject 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-D05.
As the history of the subject in Hong Kong is over eighteen years and
five months, on the whole, consider it good for normal business engagements.
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 |
|
US Dollar |
1 |
Rs.59.35 |
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|
1 |
Rs.92.11 |
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Euro |
1 |
Rs.78.59 |
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 |
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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 |
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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.