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Report Date : |
10.10.2013 |
IDENTIFICATION DETAILS
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Name : |
S & S INTERNATIONAL |
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Registered Office : |
Flat B1, 7/F., Far East Mansion, 5-6 Middle Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
17.06.1997 |
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Com. Reg. No.: |
21018163-000-06 |
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Legal Form : |
Sole Proprietorship Concern |
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Line of Business : |
Importer and Exporter of All Kinds of Diamonds, Jewellery. |
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No. of Employees : |
1 |
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) |
|
Hong Kong |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
|
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.
|
Source
: CIA |
S & S
INTERNATIONAL
Flat B1, 7/F., Far East Mansion, 5-6 Middle Road, Tsimshatsui, Kowloon,
Hong Kong.
PHONE: 852-2311
6353
FAX: 852-2366
6135
E-MAIL: ssinter@netvigator.com
Manager: Mr. Mehul Girishbhai Tanna
Establishment: 17th June, 1997.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond
Trader.
Employee: 1.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
S & S
INTERNATIONAL
Head Office:-
Flat B1, 7/F., Far East Mansion, 5-6 Middle Road, Tsimshatsui, Kowloon,
Hong Kong.
Associated
Companies:-(Same address)
JKM Enterprises, Hong Kong.
Ocean Diamonds, Hong Kong.
Precious Jewels Ltd., Hong Kong.
21018163-000-06
Manager: Mr. Mehul Girishbhai
Tanna
Name: Mr. Mehul Girishbhai TANNA
Residential
Address: Flat B, 5/F., Lip Seng
Mansion, 15-19 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 17th June, 1997 as a sole proprietorship concern
owned by Mr. Manish Pravinbhai Kheni under the Hong Kong Business Registration
Regulations. On 1st April, 1999, Mr.
Mehul Girishbhai Tanna joined in as partner.
However, Kheni retired on 1st April, 2000. Since then, the subject has become a sole
proprietorship of Mr. Mehul Girishbhai Tanna.
Originally the subject was located at Room 506, 5/F., Hart Avenue Plaza,
5‑9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to Flat B,
8/F., Kam Ma Building, 16 Cameron Road, Tsimshatsui, Kowloon, Hong Kong in
January 2002, to Flat A5, 10/F., Block A, Hankow Centre, 47 Peking Road,
Tsimshatsui, Kowloon, Hong Kong in July 2004, and further moved to the present
address in October 2009.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer
and Exporter.
Lines: All
kinds of diamonds, jewellery.
Employee: 1.
Commodities Imported: Europe,
India, other Asian countries, etc.
Markets: Hong
Kong, Middle East, Europe, other Asian countries, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Capital: Not
disclosed.
Profit or Loss: Just
made a very small profit in the past years.
Condition: Business
is normal
Facilities: Making fairly active use of
general banking facilities.
Payment: Met trade commitments on time.
Commercial Morality: Satisfactory.
Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
S & S International is a sole proprietorship owned by Mr. Mehul
Girishbhai Tanna who is an Indian and has been in Hong Kong for a very long
time. Being manager of the subject,
Tanna is a Hong Kong ID Card holder and has got the right to reside in Hong
Kong permanently.
The subject’s old registered address was located at Flat A5, 10/F.,
Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong where
was in a private building. In October
2009, the subject moved to the present address.
Its new office is also not in a commercial building but a residential
building. It is likely that Tanna has
moved to this new address but does not make any amendments on its registration
materials. The subject’s operating
address is also Tanna’s new residential address.
The premises where the subject is located are jointly owned by Mr. Mehul
Girishbhai Tanna and Ms. Anjaly Mehul Tanna.
They bought the premises on 21st September, 2009 at a consideration of
HK$7.25 million.
The subject has got the following associated companies located at the
same address:-
JKM Enterprises;
Ocean Diamonds; &
Precious Jewels Ltd.
Ocean Diamonds is a sole proprietorship set up and owned by Tanna. This firm commenced business on 1st May,
2001. JKM Enterprises is also owned by Tanna
and was established on 1st September, 1999.
Having issued 10,000 ordinary shares of HK$1.00 each, Precious Jewels
Ltd. is wholly owned by Mehul Girishbhai Tanna.
Precious Jewels was incorporated on 19th March, 2010.
The subject is a diamond and jewellery trader, so do its
associates. It imports diamonds from
India and Europe. Finished products are
marketed in Hong Kong and exported to Japan, Taiwan, the other Asian countries,
the Middle East, North America, Western Europe, etc. Business is normal.
Business chiefly handled by Tanna himself, all the firms owned by him
made very small profits in the past years.
The history of the subject in Hong Kong is over sixteen years.
On the whole, consider it good for normal business engagements in small
credit amounts.
Property information of the proprietor:-
Property Location: Flat B
on 7/F., Far East Mansion, 5-6 Middle Road, Kowloon, Hong Kong.
Owner: Mehul Girishbhai Tanna
& Anjaly Mehul Tanna
Date of Purchase: 21-09-2009
Purchased Price: HK$7,250,000
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
21-09-2009 |
- |
Dah Sing Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.92 |
|
|
1 |
Rs.99.45 |
|
Euro |
1 |
Rs.83.92 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
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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.