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Report Date : |
17.04.2014 |
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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Legal Form : |
sole proprietorship |
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Line of Business : |
Importer and Exporter of all kinds of diamonds, jewellery |
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No. of Employees |
01 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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 has no tariffs on imported goods, and it levies excise
duties on only four commodities, whether imported or produced locally: 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, its continued reliance
on foreign trade and investment leaves it vulnerable to renewed global
financial market volatility or a slowdown in the global economy. 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 12% of total system
deposits in Hong Kong by the end of 2013. 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 total trade 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. Credit expansion and tight housing supply conditions have
caused Hong Kong property prices to rise rapidly; consumer prices increased by
more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer
Economic Partnership Agreement, adopted in 2003 to forge closer ties between
Hong Kong and the mainland. The new measures, effective from January 2014,
cover services and trade facilitation, and will improve access to the
mainland's service sector for Hong Kong-based companies
|
Source
: CIA |
S
& S INTERNATIONAL
ADDRESS: 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
MANAGEMENT:
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
ADDRESS:
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 very small profits 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.
According
to the registration documents of the subject, the subject was also engaged in
liquor business about ten years ago.
Now, it is just engaged in diamonds and jewellery trading.
Business
chiefly handled by Tanna himself, all the firms owned by him just made very
small profits in the past years.
Tanna
is also an authorised signatory (constituted attorney) of some other companies
in Hong Kong.
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.
-
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.
-
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.
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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.60.23 |
|
|
1 |
Rs.100.79 |
|
Euro |
1 |
Rs.83.29 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
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Report Prepared
by : |
NIS |
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 |
|
|
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 |
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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.