MIRA INFORM REPORT

 

Report Date :

15.05.2013

 

IDENTIFICATION DETAILS

 

Name :

CHOW  SANG  SANG  JEWELLERY  CO.  LTD.

 

 

Formerly Known as:

Chow Sang Sang Jeweller & Goldsmith Co. Ltd

 

 

Registered Office :

4/F., Chow Sang Sang Building, 229 Nathan Road, Kowloon

 

 

Country :

Hong Kong 

 

 

Year of Establishments:

1948

 

 

Com. Reg. No.:

00775940

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturer, Exporter, Wholesaler and Retailer of all kinds of jewellery and gold products.

 

 

No. of Employees :

7,013.  (As at 31-12-2012)

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

---

 

 

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)

Hong Kong 

A2

A2

 

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 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

 

Company name

 

CHOW  SANG  SANG  JEWELLERY  CO.  LTD.

 

 

Company ADDRESS

 

26/F., 9 Wing Hong Street, Cheung Sha Wan, Kowloon, Hong Kong.

PHONE:            2192 3333,  2192 3123

FAX:                 2730 9683

E-MAIL:            corp@chowsangsang.com

webadmin@chowsangsang.com

chwong@chowsangsang.com

 

 

MANAGEMENT

 

Executive Director & Group Chairman:  Dr. Chow Kwen Lim

 

 

SUMMARY

 

Establishment:                          1948.

 

Incorporated on:            2nd September, 1957.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$30,000,000.00

Issued:             HK$30,000,000.00

 

Business Category:       Manufacture and retail of jewellery.

 

Group Turnover:-           (Year ended 31-12-2012)

HK$18,260,232,000  (Whole Group)

HK$14,861,040,000  (Jewellery Retail Division)

 

Group Employees:        7,013.  (As at 31-12-2012)

 

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

 

Banking Relation:          Good.

Company ADDRESS

 

Registered Office:-

4/F., Chow Sang Sang Building, 229 Nathan Road, Kowloon, Hong Kong.

 

Head Office:-

26/F., 9 Wing Hong Street, Cheung Sha Wan, Kowloon, Hong Kong.

 

Retail Outlets:-  (As at 31-12-2009)

 

Chow Sang Sang

36 shops in Hong Kong

143 shops in Mainland China

 

Emphasis Jewellery

14 shops in Hong Kong

21 shops in Taiwan

2 shops in Macau

 

Chow Sang Sang Precious Metal Laboratory:-

Flat A4, 8/F., Block A, Hong Kong Industrial Centre, 489-491 Castle Peak Road, Kowloon, Hong Kong.

[Tel: 2741 2203;  Fax: 2370 3718]

 

Holding Company:-

Chow Sang Sang Holdings Ltd., Hong Kong.

 

Ultimate Holding Company:-

Chow Sang Sang Holdings International Ltd., Bermuda/Hong Kong.

 

Affiliated Companies:-

Chow Sang Sang Group of Companies

·         338.Net Ltd., Hong Kong.

·         Acclaim Holdings Ltd., British Virgin Islands.

·         Chow Sang Sang (China) Co. Ltd., China.

·         Chow Sang Sang Bullion Dealers Ltd., Hong Kong.

·         Chow Sang Sang Commodities Ltd., Hong Kong.  [Dormant]

·         Chow Sang Sang Corporate Gift Ltd., Hong Kong.

·         Chow Sang Sang Diamond (Shanghai) Co. Ltd., China.

·         Chow Sang Sang Finance Ltd., Hong Kong.

·         Chow Sang Sang Futures Ltd., Hong Kong.

·         Chow Sang Sang Holdings (BVI) Ltd., British Virgin Islands.

·         Chow Sang Sang Industrial (Fuzhou) Ltd., China.

·         Chow Sang Sang International (Shunde) Ltd., Hong Kong/China.

·         Chow Sang Sang Investments Ltd., Hong Kong.

·         Chow Sang Sang Jewellery (China) Co. Ltd., British Virgin Islands.

·         Chow Sang Sang Jewellery (China) Ltd., Hong Kong.

·         Chow Sang Sang Jewellery (Foshan) Co. Ltd., China.

·         Chow Sang Sang Jewellery (Shaanxi) Co. Ltd., China.

·         Chow Sang Sang Jewellery (Shandong) Co. Ltd., China.

·         Chow Sang Sang Jewellery (Taiwan) Ltd., British Virgin Islands/Taiwan.

·         Chow Sang Sang Jewellery Pte. Ltd., Singapore.  [Dormant]

·         Chow Sang Sang Manufacturing International Ltd., British Virgin Islands.

·         Chow Sang Sang Nominees Ltd., Hong Kong.

·         Chow Sang Sang Properties Ltd., Hong Kong.

·         Chow Sang Sang Property Holdings N.V., Netherlands Antilles/Hong Kong.

·         Chow Sang Sang Securities Ltd., Hong Kong.

·         Emphasis Jewellery Co. Ltd., Macau.

·         Foo Sang Enterprises Co. Ltd., Hong Kong.

·         Fullink Developments Inc., British Virgin Islands.  [Dormant]

·         Qingdao Kang Hua Diamond Co. Ltd., China.

·         Tsin Chuk Kam Manufactory Ltd., British Virgin Islands/China.

·         World Commercial Sales Co. Ltd., Hong Kong.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

00775940

 

COMPANY FILE NUMBER 

 

0004871

 

 

MANAGEMENT

 

Non-Executive Director & Honorary Chairman:  Mr. Chow Kwen Ling

Executive Director & Group Chairman:  Dr. Chow Kwen Lim

Executive Director & Group General Manager:  Mr. Chow Wing Shing, Vincent

Executive Director & Group Deputy General Manager:  Mr. Chow Wun Sing, Winston

 

 

CAPITAL

 

Nominal Share Capital: HK$30,000,000.00 (Divided into 30,000,000 shares of HK$1.00 each)

Issued Share Capital:     HK$30,000,000.00

 

 

SHAREHOLDERS

(As per registry dated 02-09-2012)

 

Name

 

No. of shares

Chow Sang Sang Holdings Ltd., Hong Kong.

 

29,999,999

Chow Sang Sang Nominees Ltd., Hong Kong.

 

1

 

 

–––––––––

 

Total:

30,000,000

========

 

 

DIRECTORS  

(As per registry dated 02-09-2012)

 

Name

(Nationality)

 

Address

CHOW Kwen Lim

51 Beacon Hill Road, Kowloon, Hong Kong.

 

CHOW Kwen Ling

Flat B, 10/F., Emperor Height, 5 Cox’s Road, Kowloon, Hong Kong.

 

CHOW Wing Shing, Vincent

51 Beacon Hill Road, Kowloon, Hong Kong.

 

CHOW King Sing, Gerald

Flat D, 26/F., Block 2, Estoril Court, Mid-Levels, Central, Hong Kong.

 

CHOW Wun Sing, Winston

Duplex 5, Dynasty Villa 1, Dynasty Heights, 2 Yin Ping Road, Kowloon, Hong Kong.

 

 

SECRETARY 

(As per registry dated 02-09-2012)

 

Name

Address

TAM Shing Chi

Room D, 2/F., Block 20, Baguio Villa, 550 Victoria Road, Pok Fu Lam, Hong Kong.

 

 

HISTORY

 

The subject was established in 1948 and incorporated on 2nd September, 1957 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of Chow Sang Sang Jeweller & Goldsmith Co. Ltd., name changed to the present style on 5th July, 1971.

 

Apart from these, neither material change nor amendment has been ever traced and noted.

 

OPERATIONS

 

Activities:                      Manufacturer, Exporter, Wholesaler and Retailer.

 

Lines:                           All kinds of jewellery and gold products.

 

Brand Names:               “Chow Sang Sang” and “Emphasis”.

 

Group Employees:        7,013.  (As at 31-12-2012)

 

Commodities Imported: Imported from Europe and other Asian countries.

 

Markets:                        Hong Kong, China, Taiwan, Macau, Europe, etc.

 

Group Turnover:-


Period


Whole Group

Manufacture and
Retail of Jewellery Division

Year ended 31-12-2008

HK$  9,880,429,000

HK$  5,358,053,000

Year ended 31-12-2009

HK$  9,463,436,000

HK$  5,922,590,000

Year ended 31-12-2010

HK$11,705,291,000

HK$  8,265,447,000

Year ended 31-12-2011

HK$17,158,286,000

HK$12,645,290,000

Year ended 31-12-2012

HK$18,260,232,000

HK$14,861,040,000

 

Terms/Sales:                 COD or as per contracted.

 

Terms/Buying:  Various terms.

 

 

MEMBERSHIP

 

·         Hong Kong Jewellery & Jade Manufacturers Association, Hong Kong.

·         Hong Kong Retail Management Association Ltd., Hong Kong.

·         Quality Tourism Services Association, Hong Kong.

·         The Federation of Hong Kong Watch Trades & Industries Ltd., Hong Kong.

·         The Hong Kong General Chamber of Commerce, Hong Kong.
[Membership No. HKC0982]

·         The Hong Kong Jewellers’ & Goldsmiths’ Association Ltd., Hong Kong.

·         The Kowloon Pearls, Precious Stones, Jade, Gold & Silver Ornament Merchants Association, Hong Kong.

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$30,000,000.00 (Divided into 30,000,000 shares of HK$1.00 each)

 

Issued Share Capital      HK$30,000,000.00

 

Mortgage or Charge

(since 2003):                 (See attachment)

 

Group Profit for the Year:          HK$   480,555,000  (Year ended 31-12-2008)

HK$   590,644,000  (Year ended 31-12-2009)

HK$   771,938,000  (Year ended 31-12-2010)

HK$1,116,345,000  (Year ended 31-12-2011)

HK$   988,814,000  (Year ended 31-12-2012)

 

Segment Result (Manufacture and Retail of Jewellery Division):-

·         HK$1,324,635,000  (Year ended 31-12-2011)

·         HK$1,113,950,000  (Year ended 31-12-2012)

 

Group Net Worth:          HK$6,355,477,000  (As at 31-12-2011)

HK$7,006,969,000  (As at 31-12-2012)

 

Profit & Loss:               Made profits in the past years.

 

Condition:                     Keeping in an active and steady state.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Good.

 

Bankers:-

·         The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

·         The Bank of East Asia Ltd., Hong Kong.

·         Bank of China (Hong Kong) Ltd., Hong Kong.

·         Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

·         Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

·         Agricultural Bank of China, Hong Kong Branch.

·         The Bank of Nova Scotia, Hong Kong Branch.

 

Standing:  Very Good.

 

GENERAL

 

Chow Sang Sang Jewellery Co. Ltd. is a wholly-owned subsidiary of Chow Sang Sang Holdings Ltd. [CSSH], a Hong Kong-registered firm.  In turn, CSSH is a subsidiary of Chow Sang Sang Holdings International Ltd. [CSSHI], a Hong Kong listed firm registered in Bermuda bearing stock code 116.

 

CSSHI is engaged in manufacturing and retailing jewellery and wholesaling precious metals.  It is also engaged in securities and futures broking, and properties and other investments.  Jewellery retailing is conducted by the subject.

 

The subject carries the following commodities:-

·         14K and 18K (Manufacturer);

·         14K and 18K (Retailer);

·         Coins and Banknotes – Collectable;

·         Fine Jewellery;

·         Gold Coins;

·         Hobby and Collector’s Items;

·         Include Ornament (Manufacturer);

·         Jewellery – 24K Fine Gold;

·         Jewellery – Diamond;

·         Jewellery – Gemset;

·         Jewellery – Gold;

·         Jewellery – Pearl;

·         Jewellery – Platinum;

·         Jewellery – Silver;

·         Precious and Semi-Precious Jewellery;

·         Watch – Jewellery;

·         Watches; &

·         Watches and Clocks.

In Hong Kong, its retail management is certificated under the ISO 9001:2000.  The team of experienced and well-trained sales personnel of the subject has been winning awards in different customer services competitions.

The retail network in China now covers some 40 cities.  The shops are managed through four regional centres located at Qingdao, Shanghai, Guangzhou and Xi’an.  Area offices have been set up in Beijing and Fuzhou of China as well.  Manufacturing is done mainly in its own facilities in Qingdao, Shunde which are in China and Hong Kong and supported by other suppliers in China and Hong Kong with finished goods or items made to custom designs and specifications.

Besides jewellery is designed in-house, the subject offers customers with a selection of international brands, such as “Stefan Hafner”, “The Love Diamond”, “Elara”, “DTC Forevermark” and “Marco Bicego”.  The Group’s merchandisers regularly travel to Europe and Japan to search for the market trend and new fashion products.

Since 2005, the subject has been one of the 93 worldwide “Sightholders” of the Diamond Trading Company in London, from whom it buys rough diamonds directly.  Rough diamonds bought from that company and other sources are polished by contractors in China.

With no material change from prior years, the Group’s major business is jewellery retail in Hong Kong, Mainland China, Taiwan and Macau [Greater China], conducted by the subject together with some of its fellow subsidiaries.  Chow Sang Sang Securities Ltd. and Chow Sang Sang Futures Ltd. are the operators of the Group’s brokerage business.  Precious metals wholesale is the business of World Commercial Sales Co. Ltd.

For FY 2012, the Group achieved a total turnover of HK$18,260.2 million, increased by 6.4% as compared with HK$17,158.3 million.  Profit for the year was HK$988.8 million, decreased by 11.4% as compared with HK$1,116.3 million.

Compared with the prior year, 2012 was a year in which there was modest growth in revenue from the sale of gold and jewellery.  The slackening was already apparent in the first half, and turnover in the third quarter actually saw no growth from the year before.  A final push in the fourth quarter made up for some lost time, but not enough to change the whole picture.

The Group has not changed the scope and the model of its business.  Its main business is the owning and operating of its networks of jewellery shops in Mainland China, Hong Kong, Macau and Taiwan.  A securities and futures brokerage and a precious-metal wholesale service operation, both operating in Hong Kong, make small contributions to overall profits.

Concerning jewellery retail, the total turnover of this segment increased by 18% to HK$14,861 million, and profits decreased by 16% to HK$1,114 million.

Hong Kong and Macau still overshadowed the Mainland operation in terms of contribution to turnover.  The latter’s share was 38%, increasing from last year’s 36%.

The arrival of tourists from the Mainland continued to rise, but spending on higher-priced items was weaker than previous year.  Turnover rose by 14% to HK$9,104 million.  Same store growth in turnover was 9%.

During the year of 2012, one Emphasis Jewellery was opened in Causeway Bay,

and a Chow Sang Sang shop was opened in Tseung Kwan O, Hong Kong.  With their expansion works completed, the Canton Road store and the Grand Tower store in Mongkok made notable advances in their contribution to sales.  In Macau, a new Emphasis Jewellery opened in Sands Cotai Central.

As the economy slowed down, turnover for the whole year rose only 24% to HK$5,635 million.  Same store growth in turnover was 5%.

As at 31st December 2012, the total number of employees was 7,013, of which 5,128 (73%) were on the Mainland.

The subject is fully supported by the Group.  History in Hong Kong is over 64 years.

In view of the background of the subject, on the whole, consider it good for normal business engagements.

 

REMARKS:

 

Brief introduction to the principal directors:-

Mr. CHOW Kwen Ling, aged 89, is a Non-Executive Director of CSSHI, the Honorary Chairman of the Group and a Director of a number of subsidiaries within the Group.  He is the elder brother of Dr. Chow Kwen Lim.  As a founder of the Group, Mr. Chow served as the Group General Manager from 1973 to 1986 and the Group Chairman from 1973 to 1990.  He was elected the Honorary Chairman upon retiring as Chairman in 1990.  He is well experienced in corporate management.

Dr. CHOW Kwen Lim, BBS, MBE, JP, DSSc (Hon), aged 86, is an Executive Director of CSSHI, the Group Chairman and a Director of a number of subsidiaries within the Group.  He is the father of Mr. Vincent Chow Wing Shing, the Group’s General Manager.  Dr. Chow was the Group General Manager from 1986 to 1997, and having been the Group Chairman since 1990.  As a founder of the Group, he has been in the jewellery business for over 60 years.  He was awarded Doctor of Social Science, Honoris Causa by The Chinese University of Hong Kong in 1998 and is an Honorary Professor of the Fudan University and a member of the Board of Journal of Shunde Polytechnic.  He is also an Honorary Citizen of the cities of Guangzhou, Foshan, Changle, Lanzhou and Dunhuang, China.

Mr. Vincent CHOW Wing Shing, BBS, MBE, JP, aged 66, is an Executive Director of CSSHI, the Group General Manager and a Director of a number of subsidiaries within the Group.  Mr. Chow has been with the Group for over 25 years, having been the Group General Manager since 1998.  He is the Treasurer of the Council of the City University of Hong Kong, where he is also the Chairman of the Board of Management of the Community College of City University.  Mr. Chow serves as the Vice-Chairman of the Committee on Performing Arts under the Home Affairs Bureau, and he is on the Investigation Panel A of the Hong Kong Institute of Certified Public Accountants.  He is a member of the Shunde People’s Political Consultative Committee.

Mr. Winston CHOW Wun Sing, aged 55, is an Executive Director of CSSHI, the Group Deputy General Manager and a Director of a number of subsidiaries within the Group.  Mr. Chow has been with the Group since 1984 (except 1988 to 1992) and has become the Group Deputy General Manager since 1995.  Mr. Chow is the younger brother of Dr. Gerald Chow King Sing and the cousin of Mr. Vincent Chow Wing Shing.  He has experience in real estate in Canada.  Mr. Chow’s key responsibilities include the marketing of the Group’s jewellery business in Greater China.  He also acts as the Vice-Chairman of the Diamond Federation of Hong Kong, China Ltd., Governing Council Member of the Quality Tourism Services Association, a member of the Advisory Committee on Travel Agents, a member of the Jewellery Industry Training Advisory Committee of the Education Bureau, a Sector/Subject Specialist of the Hong Kong Council for Accreditation of Academic and Vocational Qualifications and an Executive Committee member of The Hong Kong Retail Management Association.  Mr. Chow is a member of the Guangzhou Municipal Tianhe District People’s Political Consultative Committee.

 

Court case:-

Action Date

Case No.

Plaintiff

Defendant

Cause

Amount

Sept. 1998

H15001

Hong Kong Island Development Ltd.

Chow Sang Sang Jewellery Co. Ltd.

Landlords and Tenants (Possession)

HK$332,824
HK$500

 

MORTGAGE OR CHARGE

(Since 2003)

 

Date

Particulars

Amount

07-01-2003

Instrument:      Charge Over Deposits

Property:

By way of fixed charge and release to the Bank all their present and future rights in the respect of (a) the sum deposited by the Company or for their benefit in the account; and (b) all other sums in any currency including all additions to or renewals or replacements of such sums in any currency and all interest from time to time accruing or payable thereon

Mortgagee:      The Bank of Nova Scotia, Hong Kong Branch.

All banking facilities or other accommodation or services

27-03-2003

Instrument:      Security Over Deposit in Respect of Obligations of the Depositor

Property:

First Fixed Charge on Deposit Account No. 01-60-03952-6

Mortgagee:      Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

General banking facilities

 

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.

-            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 –

 

-            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.

 

-            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

Indian Rupees

US Dollar

1

Rs.54.63

UK Pound

1

Rs.83.67

Euro

1

Rs.71.02

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.