MIRA INFORM REPORT

 

 

Report Date :

15.05.2013

 

IDENTIFICATION DETAILS

 

Name :

RNP  JEWELRY  DESIGN  LTD.

 

 

Registered Office :

Flat 1203, 12/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon

 

 

Country :

Hong Kong 

 

 

Date of Incorporation :

25.11.2009

 

 

Com. Reg. No.:

51461087

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Manufacturer, Exporter and Wholesaler of all kinds of diamond and jewellery products

 

 

No. of Employees :

05

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Small Company

 

 

Payment Behaviour :

No  Complaints

 

 

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)

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

 

RNP  JEWELRY  DESIGN  LTD.

 

 

Company ADDRESS

 

Flat 1203, 12/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon, Hong Kong.

PHONE:            3950 5950

FAX:                 3590 5810

E-MAIL:            admin@rnpjewelry.com

ronnie@rnpjewelry.com

rnp@rnpjewelry.com

 

 

MANAGEMENT

 

Managing Director:  Ms. Chan Mei Wah

 

 

SUMMARY

 

Incorporated on:             25th November, 2009.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$100,000,000.00

Issued:              HK$31,200,000.00

 

Business Category:        Jewellery Trader.

 

Employees:                   5.

 

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

 

Banking Relation:           Satisfactory.


Company ADDRESS

 

Registered Head Office:-

Flat 1203, 12/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon, Hong Kong.

 

Holding Companies:  (same address)

Legend International Capital Ltd., Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER 

 

51461087

 

 

COMPANY FILE NUMBER 

 

1394829

 

MANAGEMENT

 

Managing Director:  Ms. Chan Mei Wah

Contact Person:  Mr. Anson Yung

 

 

CAPITAL

 

Nominal Share Capital: HK$100,000,000.00 (Divided into 100,000,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$31,200,000.00

 

 

SHAREHOLDER

(As per registry dated 25-11-2012)

 

Name

Occupation

No. of shares

Legend International Capital Ltd., Hong Kong.

Corporation

31,200,000

========

 


DIRECTOR    

(As per registry dated 18-04-2013)

 

Name

(Nationality)

 

Address

CHAN Mei Wah

Flat 1203, 12/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon, Hong Kong.

 

 

SECRETARY 

(As per registry dated 25-11-2012)

Name

Address

LEE Kai Fai, Anthony

Flat C, 15/F., Block 27, 1 Lok Shing Street, City One Shatin, Shatin, New Territories, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 25th November, 2009 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Formerly the subject was located at Unit F, 9/F., Summit Building, 30 Man Yue Street, Hunghom, Kowloon, Hong Kong, moved to the present address in April 2013.

 

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

 

 

OPERATIONS

 

Activities:                      Manufacturer, Exporter and Wholesaler.

 

Lines:                           All kinds of diamond and jewellery products.

 

Employees:                   5.

 

Raw Materials:               Imported from India, Thailand, Europe, US, etc.

 

Markets:                       Hong Kong, other Asian countries, Europe, North America, etc.

 

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

 

Terms/Buying:               L/C, T/T, D/P, etc.


MEMBERSHIP

 

Hong Kong Jewellery & Jade Manufacturers Association, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$100,000,000.00 (Divided into 100,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$31,200,000.00

 

Profit or Loss:                Made a very small profit in 2012.

 

Condition:                      Business is normal.

 

Facilities:                      Making fairly active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

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

 

Standing:                      Small.

 

 

GENERAL

Having issued 1,000 ordinary shares of HK$1.00 each, RNP Jewelry Design Ltd. increased its ordinary shares to 2,000 of the same unit value on 19th May, 2011 and further increased to 31,200,000 shares on 23rd September, 2011.  The subject was jointly owned by two Hong Kong‑registered firms: P. J. Design Ltd., holding 70% interests; and Legend International Capital Ltd. [Legend], holding 30%.  On 20th March, 2012, P. J. Design Ltd. transferred all its shares to Legend.  Since then, the subject has been wholly-owned by Legend.

The director of the subject is Ms. Chan Mei Wah who is a Hong Kong businesswoman.

P. J. Design Ltd. was incorporated in Hong Kong on 11th December, 2007 while Legend, incorporated on 12th June, 2009.  The latter firm was set up by its shareholders in order to set up the subject.

Currently, the subject is a diamond jewellery manufacturer and wholesaler.  It is engaged in manufacturing and exporting the following products:-

Bracelets, brooches, silver earrings, diamond earrings, necklaces, rings, pendants, bridal rings, ruby jewellery rings, etc.

Most of the loose diamonds, loose, cut and polished diamonds are imported from India, Europe and the United States.  Finished products such as fine jewellery are exported to the United States, Europe, Russia, Australia and other Asian countries.

According to the subject, it has had an affiliated factory in Panyu, Guangzhou City, Guangdong Province, China manufacturing all kinds of jewellery products.  Currently, the China factory has about 230 employees.

Now, the subject has set up an office in New York, the United States.

According to the subject, since establishment, its export value has amounted to US$100 million.  Business keeps on improving.

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 1E-C39.

The subject’s business is chiefly administered by Ms. Chan Mei Wah.  The contact person is Mr. Anson Yung.

The history of the subject is over three years.

On the whole, consider it good for normal business engagements in small credit amounts.


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.