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Report Date : |
25.06.2013 |
IDENTIFICATION DETAILS
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Name : |
KAN-CHI
INTERNATIONAL LTD. |
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Registered Office : |
Rear Portion, 14/F., |
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Country : |
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Date of Incorporation : |
05.03.2004 |
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Com. Reg. No.: |
34387050 |
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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 stones |
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No. of Employees : |
02 |
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 |
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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.
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Source : CIA |
KAN-CHI INTERNATIONAL LTD.
Rear Portion, 14/F., Ocean View Court, 25 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2723 8004, 3178 2370, 3580 8686
FAX: 852-2723 4438, 3580 8932
E-MAIL: kajan.jewel@gmail.com
Managing Director: Mr. Pankil Shah
Incorporated on: 5th March, 2004.
Organization: Private Limited Company.
Capital: Nominal: HK$4,200,000.00
Issued: HK$4,200,000.00
Business Category: Diamond Trader.
Employees: 2.
Main Dealing Banker: Bank of India, Hong Kong Branch.
Banking Relation: Satisfactory.
Registered Head
Office:-
Rear Portion, 14/F., Ocean View Court, 25 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
Associated
Companies:-
· Kajan Jewellery Ltd., Hong Kong. (Same address)
Kan-Chi International, Hong Kong. (Ceased business)
[Jointly owned by Mr. Pankil Shah and Mr. Priyal Pankil Shah]
34387050
0886918
Managing Director: Mr. Pankil Shah
Nominal Share Capital: HK$4,200,000.00 (Divided into 4,200,000 shares of HK$1.00 each)
Issued Share Capital: HK$4,200,000.00
(As per registry
dated 05-03-2013)
|
Name |
|
No.
of shares |
|
Pankil
SHAH |
|
3,360,000 |
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Priyal Pankil SHAH |
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840,000 |
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–––––––– |
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Total: |
4,200,000 ======= |
(As per registry
dated 05-03-2013)
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Name (Nationality) |
Address |
|
Pankil SHAH |
Flat A, 9/F., Ocean View
Court, 27A Chatham Road South, Tsimshatsui, Kowloon, Hong Kong. |
|
Priyal Pankil SHAH |
Flat A, 9/F., Ocean View
Court, 27A Chatham Road South, Tsimshatsui, Kowloon, Hong Kong. |
(As per registry
dated 05-03-2013)
|
Name |
Address |
Co.
No. |
|
Akin Professionals Ltd. |
20/F., Champion Building, 287-291 Des Voeux Road Central,
Sheung Wan, Hong Kong. |
1273165 |
The subject was incorporated on 5th March, 2004 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Flat A, 9/F., Ocean View Court, 27A Chatham Road South, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in 2009.
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.
Brand Name: KCI.
Employees: 2.
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan, Southeast Asia, Europe, Middle East, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$4,200,000.00 (Divided into 4,200,000 shares of HK$1.00 each)
Issued Share Capital: HK$4,200,000.00
Mortgage or Charge
(since 2009): (See attachment)
Profit or Loss: Made small profits in the past five years.
Condition: Keeping in a normal manner.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
· Bank of India, Hong Kong Branch.
Bank of Communications Co. Ltd., Hong Kong Branch.
Standing: Small.
Having issued 4.2 million ordinary shares of HK$1.00 each, Kan-Chi International Ltd. is jointly owned by Pankil Shah, holding 80% interests; and Priyal Pankil Shah, holding 20%. Being Indian merchants, they are also directors of the subject. They are also Hong Kong ID Card holders and have got the right to reside in Hong Kong permanently.
The subject’s registered and operating office is in a private building known as Ocean View Court.
The subject has got an associated company Kanjan Jewellery Ltd. [Kanjan] located at the same operating address. Having issued 4 million ordinary shares of HK$1.00 each, Kajan is jointly owned by Pankil Shah, holding 55% interests; and Priyal Pankil Shah, holding 45%. Kanjan and the subject are engaged in the same lines of business.
The subject is a jewellery and diamond trader. It provides customers with all kinds of jewellery including platinum, 14K and 18K gold jewellery set with diamonds, precious stones and semi-precious stones. According to the subject, it possesses “unique and innovative designs at competitive prices with a variety of selection”.
The followings are
some of its significant products:-
Diamond earrings, diamond rings, white gold jewellery set, white gold diamond jewellery set, rose gold jewellery set, carat size diamond and loose diamonds.
Most of its products bear the brand name KCI.
It has expanded its markets to the other Asian countries, Europe, the Middle East and the United States, etc. Commodities such as polished diamonds, loose diamonds. are chiefly imported from India. After processing in Hong Kong or China, finished products are exported to the above-mentioned markets. The subject is also trading in South Sea pearls, white and colour diamonds, diamond jewellery, gemset jewellery, platinum jewellery.
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 1C-C34.
The business of the subject and Kajan is chiefly handled by the Shah family.
Since the history of the subject is over nine years, on the whole, consider it good for normal business engagements in small credit amounts.
(Since 2009)
|
Date |
Particulars |
Amount |
|
27-07-2011 |
Instrument: Hypothecation of Tangible Moveable Property Property: All tangible moveable assets of borrower including in particular Furniture, Fixture, Plant and Machinery and stocks of all goods of precious stones, gem, jewellery, gold, etc., wheresoever situate and/or in transit Mortgagee: Bank of India, Hong Kong Branch. |
HK$30,000,000.00 |
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27-07-2011 |
Instrument: Charge and Hypothecation of Book Debts Property: Hypothecation and charge to the Bank by way of charge on all the book debts outstanding, moneys receivable, claims and bills Mortgagee: Bank of India, Hong Kong Branch. |
HK$30,000,000.00 |
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27-07-2011 |
Instrument: Letter of Lien Property: Nature
of Deposit: TDR TDR Mortgagee: Bank of India, Hong Kong Branch. |
HK$30,000,000.00 |
|
10-08-2011 |
Instrument: Letter of Lien Property: Nature
of Deposit: TDR Mortgagee: Bank of India, Hong Kong Branch. |
US$1,000,000.00 |
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
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.59.73 |
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UK Pound |
1 |
Rs.91.82 |
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Euro |
1 |
Rs.78.23 |
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 |
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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.