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Report Date : |
24.09.2013 |
IDENTIFICATION DETAILS
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Name : |
ASTOR JEWELLERY CO. LTD. |
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Registered Office : |
Room 1001-1003, 10/F., Lane Crawford House, 70 Queen’s Road Central |
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Country : |
Hong Kong |
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Date of Incorporation : |
04.01.1972 |
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Com. Reg. No.: |
03439517 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, Importer and Exporter of Diamond, jewellery, ruby
emerald, sapphire, semi-precious stone, platinum jewellery and pearl jewellery. |
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No. of Employees : |
15. (Including affiliate) |
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 |
|
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
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 |
ASTOR JEWELLERY
CO. LTD.
Room 1001-1003, 10/F., Lane Crawford House, 70 Queen’s Road Central,
Hong Kong.
PHONE: 852-2524 6712
FAX: 852-2868
4154
E-MAIL: maxim@netvigator.com
Managing Director: Mr. Wai Wing Lung, Henry
Incorporated on: 4th January, 1972.
Organization: Private Limited Company.
Capital: Nominal: HK$2,000,000.00
Issued: HK$2,000,000.00
Business Category: Manufacturer,
Importer and Exporter.
Annual Turnover: US$25-35 million. (Including affiliate)
Employees: 15. (Including affiliate)
Main Dealing Banker: Hang Seng
Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
ASTOR JEWELLERY
CO. LTD.
Registered Head
Office:-
Room 1001-1003, 10/F., Lane Crawford House, 70 Queen’s Road Central,
Hong Kong.
Holding Company:-
Bestrich Holdings Ltd., Hong Kong.
Affiliated
Company:-
Maxim Jewellery Co., Hong Kong.
(Same address)
03439517
0026421
Managing Director: Mr. Wai Wing Lung, Henry
Nominal Share Capital: HK$2,000,000.00 (Divided into 20,000 shares of
HK$100.00 each)
Issued Share Capital: HK$2,000,000.00
(As per registry dated 04-01-2013)
|
Name |
|
No. of shares |
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Bestrich Holdings Ltd., Hong Kong. |
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4,000 |
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WAI Chen Te, Janet |
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5,800 |
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WAI YIN Mei Ying |
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10,200 |
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|
–––––– |
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Total: |
20,000 ===== |
(As per registry dated 04-01-2013)
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Name (Nationality) |
Address |
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Joseph WAI |
Room 1001-1003, 10/F., Lane Crawford House, 70 Queen’s Road Central,
Hong Kong. |
|
Nelson WAI |
6/F., 15 Fontana Gardens, Ka Ning Path, Causeway Bay, Hong Kong. |
|
WAI Wing Lung |
Room 1001-1003, 10/F., Lane Crawford House, 70 Queen’s Road Central,
Hong Kong. |
(As per registry dated 04-01-2013)
|
Name |
Address |
|
Nelson, WAI |
6/F., 15 Fontana Gardens, Ka Ning Path, Causeway Bay, Hong Kong. |
The subject was incorporated on 4th January, 1972 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: Manufacturer, Importer and Exporter.
Lines: Diamond, jewellery,
ruby emerald, sapphire, semi-precious stone, platinum jewellery and pearl
jewellery.
Employees: 15. (Including affiliate)
Commodities Imported: Belgium,
Israel, India, other European countries.
Markets: Hong Kong, other Asian countries,
Europe, US, etc.
Annual Turnover: US$25-35
million. (Including affiliate)
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Hong Kong Jewellery & Jade Manufacturers Association,
Hong Kong.[Membership No.: #053]
The Hong Kong Jade & Stone Manufacturers Association,
Hong Kong.
Hong Kong Jewellery Manufacturing Association, Hong Kong.
Nominal Share Capital: HK$2,000,000.00
(Divided into 20,000 shares of HK$100.00 each)
Issued Share Capital: HK$2,000,000.00
Profit or Loss: Making a small profit every year.
Condition: Business is rather active.
Facilities: Making active use of general banking
facilities.
Payment: So far so good.
Commercial Morality: Good.
Banker: Hang Seng Bank Ltd., Hong Kong.
Standing: Good.
Incorporated on 4th January, 1972, Astor Jewellery Co. Ltd. is chiefly
owned by the Wai family. Mr. Henry Wai
is the Managing Director of the subject.
The subject is jointly owned by Bestrich Holdings Ltd., a Hong Kong‑registered
firm holding 20% interests; Ms. Wai Chen Te Janet, holding 29%, and Mrs. Wai
Yin Mei Ying, 51%.
The subject has got an affiliate or a predecessor that was set up in
1960. The Wai family has been engaged in
the line of business for about 52 years.
The subject is a polished diamond importer and wholesaler. It is also a jewellery product
manufacturer. Raw materials are imported
from India, Belgium, Israel, etc.
Business is rather active.
The subject has got an affiliated company Maxim Jewellery Co. [Maxim]
which is also located at its operating office.
Maxim is engaged in the same line of business as the subject.
Maxim manufactures fine jewellery made in 18K white or yellow gold as
well as platinum in south sea pearl with diamond. A full range of diamonds jewellery is also
available. Its main products are fashion
and fancy jewellery, pearl jewellery, bracelets and brooches.
The followings are some of the subject’s brands: “Candy Chrono”, “Candy
Club”, “Candy Flash”, “Candy Set”, “Candy Time”, “Candy Time Mini”, “Candy Time
VIP”, “Juicy Glamour”, etc.
Products are exported to Taiwan, South Korea, Japan, Southeast Asian
countries and North America.
Mr. Henry Wai is the Honorary Life Chairman of The Hong Kong Jade &
Stone Manufacturers Association, Hong Kong. His father Mr. Wai Yiu Keng set up Po Cheong
Jewellery Co. Ltd. [Po Cheong Jewellery] in Shanghai in the 1930’s. Po Cheong Jewellery was a very significant
jewellery firm in Shanghai in the era.
Now, this firm has changed hands.
The subject has developed long-term business ties with a number of
foreign suppliers and customers.
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.
It is reported that the annual sales turnover of the subject and Maxim
ranges from US$25 from 35 million. Overall business is steady and
profitable. History in Hong Kong is over
41 years and eight months.
The subject’s business is chiefly handled by Mr. Joseph Wai.
On the whole, in view of the subject’s history and reputation, consider
it good for normal business engagements.
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.62.52 |
|
|
1 |
Rs.100.26 |
|
Euro |
1 |
Rs.84.67 |
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 |
|
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 |
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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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
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.