MIRA INFORM REPORT

 

 

Report Date :

15.03.2013

 

IDENTIFICATION DETAILS

 

Name :

K & S JEWELLERY LTD.

 

 

Registered Office :

Room 12A05, 12A/F., Enterprises Building, 228-238 Queen’s Road Central

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

06.07.2011

 

 

Com. Reg. No.:

58620941

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Jewellery Trader of All kinds of jewellery products, etc

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

No Operating office in Hong Kong 

 

 

Payment Behaviour :

Unknown 

 

 

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

(31.03.2011)

Current Rating

(30.06.2012)

Hong Kong

 

 

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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


COMPANY NAME

 

K & S JEWELLERY LTD.

 

 

ADDRESS

 

c/o Marvel Impex

Room 12A05, 12A/F., Enterprises Building, 228-238 Queen’s Road Central, Hong Kong.

 

PHONE:            2850 8485

 

FAX:                 2850 8681

 

E-MAIL:            marvelhk@netvigator.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Ashwani Kumar Deepak Chugani

 

 

SUMMARY

 

Incorporated on             6th July, 2011

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$1,000,000.00

 

Issued:                         HK$100,000.00

 

Business Category:       Jewellery Trader.

 

Employees:                  Nil.

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:          Satisfactory.

 


COMPANY NAME

 

K  &  S  JEWELLERY  LTD.

 

 

ADDRESS

 

Registered Office:-

c/o Marvel Impex

Room 12A05, 12A/F., Enterprises Building, 228-238 Queen’s Road Central, Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER 

 

58620941

 

 

COMPANY FILE NUMBER

 

1627120

 

 

MANAGEMENT

 

Managing Director:  Mr. Ashwani Kumar Deepak Chugani

 

 

CAPITAL

 

Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$100,000.00

 

 

SHAREHOLDER  

 

(As per registry dated 06-07-2012)

Name

 

No. of shares

Mr. Ashwani Kumar Deepak CHUGANI

 

100,000

======

 

DIRECTOR    

 

(As per registry dated 24-09-2012)

Name

(Nationality)

 

Address

Mr. CHUGANI Ashwani Kumar Deepak

 

Caya Di Sero 30, Noord, Aruba.

Mr. Chugani Hitesh Deepak

22R Malmokweg, Noord, Aruba.

 

Mr. Chugani Dipak Daulatram KanHyalal

29 Pigeon Road, Pointe Blanche, Street Maarteen, Aruba.

 

 

SECRETARY

 

(As per registry dated 06-07-2012)

Name

Address

Co. No.

Multi-Chain Ltd.

Room 301, 3/F., Kam On Building, 176A Queen’s Road Central, Hong Kong.

0209214

 

 

HISTORY

 

The subject was incorporated on 6th July, 2011 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.

 

 

OPERATIONS

 

Activities:                      Jewellery Trader.

 

Lines:                           All kinds of jewellery products, etc.

 

Employees:                  Nil.

 

Commodities Imported: India, etc.

 

Markets:                        Aruba, etc.

 

Terms/Sales:                 L/C, T/T, etc.

 

Terms/Buying:               Prepayment, L/C, etc.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$100,000.00

 

Profit or Loss:               Too early to offer an opinion.

 

Condition:                     Business is under development.

 

Facilities:                      Making fairly active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

Banker:                         The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:                      Small.

 

 

GENERAL

 

Having issued 100,000 ordinary shares of HK$1.00 each, K & S Jewellery Ltd. is wholly owned by Mr. Ashwani Kumar Deepak Chugani who is an Indian.  Chugani is a Holland passport holder and does not have the right to reside in Hong Kong permanently.

 

Chugani is the only director of the subject who currently is residing in Aruba which has no administrative subdivisions, is one of the four constituent countries that form the Kingdom of the Netherlands, together with the Netherlands, Curaçao, and Sint Maarten whose citizens share a single nationality: Dutch citizen.  It is therefore Chugani is a Dutch citizen.

 

The subject does not have its own operating office.  Its registered office is in a Hong Kong-registered firm located at “Room 12A05, 12A/F., Enterprises Building, 228-238 Queen’s Road Central, Hong Kong” known as “Marvel Impex” which is handling its correspondences and documents.

 

Marvel Impex is owned and operated by an Indian Mr. Naresh R Vaswani.  Marvel Impex is trading in piecegoods, fabrics and children’s garments, etc.

 

It is likely that Naresh R Vaswani is a friend of Chugani who has been permitted to use the operating address of Marvel Impex as its registered address in Hong Kong.

 

The subject has no employees in Hong Kong.  It is a jewellery and diamond trader.  Most of the commodities are imported from India.  Prime markets are Aruba and some of the European countries.  Business is improving.

It is likely that the subject has got an associated company in Aruba which is also operated by Chugani.

 

The Aruba firm deals with foreign parties under the name of the subject and let foreign firms correspond with the subject’s registered address in Hong Kong.  The Aruba firm also exports commodities to foreign markets under the name of the subject and its registered address in Hong Kong.

The subject’s business in Hong Kong is not active.  History in Hong Kong is just over a year.

 

Since the subject does not have its own operating office, history is short and has no employees in Hong Kong, consider it good for business engagements on L/C basis.

 

DIAMOND INDUSTRY – INDIA

 

-          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.

-          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.

-          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.

-          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.

-          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.

-          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.

-          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.

-          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.

-          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

Indian Rupees

US Dollar

1

Rs.54.44

UK Pound

1

Rs.81.33

Euro

1

Rs.70.50

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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

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

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

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.