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Report Date : |
29.03.2013 |
IDENTIFICATION DETAILS
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Name : |
HONG KONG UNIVERSAL JEWELLERY LTD. |
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Registered Office : |
4/F. - 5/F., Lyndhurst Building, 29 Lyndhurst Terrace, Central |
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Country : |
Hong Kong |
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Date of Incorporation : |
13.10.1970. |
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Com. Reg. No.: |
03121285 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Trader of all kinds of jewellery, precious stone sets, etc. |
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No. of Employees : |
60 |
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 : |
Regular |
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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 (31.03.2011) |
Current Rating (30.06.2012) |
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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'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
HONG KONG
UNIVERSAL JEWELLERY LTD.
ADDRESS: 4/F. - 5/F.,
Lyndhurst Building, 29 Lyndhurst Terrace, Central, Hong Kong.
PHONE: 2541 3004
FAX: 2541
5026
E-MAIL: hkujltd@hkuniversal.com
Managing Director: Mr. Tang
Cheung Ming
Incorporated on: 13th
October, 1970.
Organization: Private
Limited Company.
Capital: Nominal: HK$10,000,000.00
Issued: HK$6,000,000.00
Business Category: Diamond Jewellery Trader.
Employees:
60.
Main Dealing Banker: DBS Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Good.
Registered Head Office:-
4/F. - 5/F., Lyndhurst Building, 29 Lyndhurst Terrace, Central,
Hong Kong.
Associated Company:-
Diamond Ray Jewellery Ltd., Hong Kong.
03121285
0021709
Managing Director: Mr. Tang
Cheung Ming
Contact Person: Mr. Kevin Lee
Nominal Share Capital: HK$10,000,000.00 (Divided into 100,000 shares of
HK$100.00 each)
Issued Share Capital: HK$6,000,000.00
(As per registry dated 13-10-2012)
|
Name |
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No. of shares |
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LEUNG Kin Bong |
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15,000 |
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Fu Hap Enterprises Ltd., Hong Kong. |
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15,000 |
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Cheung Ming Co. Ltd., Hong Kong. |
|
15,000 |
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Super Score Investment Ltd., Hong Kong. |
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15,000 |
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|
–––––– |
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Total: |
60,000 ===== |
(As per registry dated 13-10-2012)
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Name (Nationality) |
Address |
|
TANG Cheung Ming |
Flat C, 26/F., Block 22, Willow Mansion, Tai Koo Wan Road,
Taikooshing, Hong Kong. |
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LEUNG Kin Bong |
Flat B, 18/F., Tower 5, Residence Bel-Air, Phase I, 28 Bel-Air
Avenue, Island South, Hong Kong. |
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WAN Chi Leung |
Flat A, 26/F., 46-50A Bon Ham Road, Hong Kong. |
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FU Sui |
Flat C, 10/F., Wyndham Mansion, 32 Wyndham Street, Central, Hong Kong. |
(As per registry dated 13-10-2012)
|
Name |
Address |
Co. No. |
|
Fansway Secretaries Ltd. |
Room 1009-1012, 10/F., K. Wah Centre, 191 Java Road, North Point,
Hong Kong. |
0048960 |
The subject was incorporated on 13th October, 1970 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
Jewellery Trader.
Lines: All
kinds of jewellery, precious stone sets, etc.
Employees: 60.
Commodities Imported: India, other Asian countries, Europe, China, Japan, etc.
Markets: Europe,
Asian countries, Scandinavia, North America, etc.
Terms/Sales:
L/C or as per
contracted.
Terms/Buying: L/C,
T/T, D/P, etc.
Hong Kong Jewelry Manufacturers’
Association, Hong Kong.
The Hong Kong General Chamber of Commerce,
Hong Kong.
[Membership No. HKH0169]
Hong Kong Jewellery & Jade Manufacturers
Association, Hong Kong.
Nominal Share Capital: HK$10,000,000.00 (Divided into 100,000 shares of
HK$100.00 each)
Issued Share Capital: HK$6,000,000.00
Indebtedness: HK$81,942,433.15 (Total amount outstanding on all mortgages
and charges as per last Annual Return dated 13-10-2012)
Mortgage or Charge (Since 1994): (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Keeping in a satisfactory manner.
Facilities: Is making use of general banking facilities.
Payment:
Met trade
commitments as required.
Commercial Morality: Satisfactory.
Bankers:-
DBS Bank (Hong Kong) Ltd., Hong Kong.
Credit Agricole Corporate & Investment
Bank, Hong Kong.
Standing:
Good.
Having issued 60,000 ordinary shares of HK$1.00 each, Hong Kong
Universal Jewellery Ltd. is equally owned by Mr. Leung Kin Bong, Fu Hap Enterprises
Ltd., Cheung Ming Co. Ltd. and Super Score Investment Ltd., the last three are
Hong Kong-registered firms.
The subject is trading in the following products:-
With over 60 years of experience in jewellery production, the subject
and its associates are the leading jewellery manufacturers in Hong Kong.
Principal products are 18K gold and platinum jewellery set with quality diamonds,
semi-precious stones and gemstones.
Their styles, featured with innovative setting techniques, are widely
accepted by overseas buyers.
Its products have been exported to Japan, the other Asian countries,
Europe, North America, etc. Business is rather
active.
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. It has taken part in the
following fairs and exhibitions:
USA
Europe
Hong Kong
Mainland China
Asia (other than HK & China)
Middle East
The subject 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.
The subject has had an associated company Diamond Ray Jewellery Ltd.
[Diamond Ray] located at the same address.
Diamond Ray was established in 1991.
With the strong support from its factory in Panyu, China, which is
employing more than 300 skilled craftsmen, Diamond Ray is specialized in
offering the market with 18K gold and platinum fine jewellery from simple to
elegant design at competitive prices.
Most of its products are exported to the United States, Europe, Japan
and the Middle East.
The annual sales turnover of the subject is very significant. Business is profitable.
On the whole, consider the subject good for normal business engagements.
(Since 1994)
|
Date |
Particulars |
Amount |
|
13-05-1994 |
Instrument: Charge Over Cash Deposit Property: All right, title and interest of the Company of, in and to the amount
from time to time standing to the credit of the account with the Bank at the
branch(es) of the Charge and all other sims in any currency from time to time
standing to the credit or for the benefit of the Company onany deposit
account with the Bank. Account No. Amount Mortgagee: Dao Heng Bank Ltd.,
Hong Kong. [Merged into DBS Bank
(Hong Kong) Ltd.] |
To secure general banking facilities |
|
13-05-1994 |
Instrument: Charge Over Cash Deposit Property: All right, title and interest of the Company of, in and to the amount
from time to time standing to the credit of the account with the Bank at the
branch(es) of the Charge and all other sims in any currency from time to time
standing to the credit or for the benefit of the Company onany deposit
account with the Bank. Account No. Amount Mortgagee: Dao Heng Bank Ltd.,
Hong Kong. [Merged into DBS Bank
(Hong Kong) Ltd.] |
To secure general banking facilities granted to Diamond Ray Jewellery
Ltd. |
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.54.39 |
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|
1 |
Rs.82.32 |
|
Euro |
1 |
Rs.69.54 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.