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Report Date : |
16.12.2014 |
IDENTIFICATION DETAILS
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Name : |
KAN-CHI INTERNATIONAL LTD. |
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Registered Office : |
Rear Portion, 14/F., |
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Country : |
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Date of Incorporation : |
05.03.2004 |
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Com. Reg. No.: |
34387050 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of Diamonds and Jewellery Products, Emerald, Precious Stones. |
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No of Employees : |
2 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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Status : |
Small Company |
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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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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A1 |
A1 |
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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 |
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Source
: CIA |
KAN-CHI INTERNATIONAL
LTD.
ADDRESS: Rear Portion, 14/F.,
PHONE: 852-2723
8004, 3178 2370, 3580 8686
FAX: 852-2723
4438, 3580 8932
E-MAIL: kajan.jewel@gmail.com
Managing Director: Mr. Pankil Shah
Incorporated on: 5th March, 2004.
Organization: Private Limited
Company.
Capital: Nominal: HK$4,200,000.00
Issued: HK$4,200,000.00
Business Category: Diamond
Trader.
Employees: 2.
Main Dealing Banker: Bank
of Communications Co. Ltd., Hong Kong Branch.
Banking Relation: Satisfactory.
KAN-CHI INTERNATIONAL
LTD.
Registered Head
Office:-
Rear Portion, 14/F.,
Associated
Companies:-
Kajan Jewellery Ltd.,
Kan-Chi International,
[Jointly owned by Mr. Pankil Shah and Mr. Priyal Pankil Shah]
34387050
0886918
Managing Director: Mr. Pankil
Shah
Nominal Share Capital: HK$4,200,000.00 (Divided into 4,200,000 shares of
HK$1.00 each)
Issued Share Capital: HK$4,200,000.00
(As per registry dated
05-03-2014)
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Name |
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No. of shares |
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Pankil SHAH |
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3,360,000 |
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Priyal Pankil SHAH |
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840,000 |
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–––––––– |
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Total: |
4,200,000 ======= |
(As per registry
dated 05-03-2014)
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Name (Nationality) |
Address |
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Pankil SHAH |
Flat A, 9/F., Ocean View Court, 27A Chatham Road South, Tsimshatsui,
Kowloon, Hong Kong. |
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Priyal Pankil SHAH |
Flat A, 9/F., Ocean View Court, 27A Chatham Road South, Tsimshatsui,
Kowloon, Hong Kong. |
(As per registry
dated 05-03-2014)
|
Name |
Address |
Co. No. |
|
Akin Professionals Ltd. |
20/F., Champion Building, 287-291 Des Voeux Road Central, Sheung Wan,
Hong Kong. |
1273165 |
The subject was incorporated on 5th March, 2004 as a private limited liability
company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Flat A, 9/F., Ocean View Court,
27A Chatham Road South, Tsimshatsui, Kowloon, Hong Kong, moved to the
present address in 2009.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of diamonds and jewellery products, emerald, precious stones
Brand Name: “KCI”.
Employees: 2.
Commodities Imported: India,
Belgium, other European countries, etc.
Markets: Japan,
Southeast Asia, Europe, Middle East, etc.
Terms/Sales: L/C,
T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$4,200,000.00
(Divided into 4,200,000 shares of HK$1.00 each)
Issued Share Capital: HK$4,200,000.00
Mortgage or Charge (Since 2009): (See attachment)
Profit or Loss: Made
small profits in the past years.
Condition: Keeping
in a normal manner.
Facilities: Making
rather active use of general banking facilities.
Payment: Met trade commitments as
contracted.
Commercial Morality: Satisfactory.
Bankers:-
Bank of Communications Co. Ltd., Hong Kong Branch.
Bank of India, Hong Kong Branch.
Standing: Small.
Having issued 4.2 million ordinary shares of HK$1.00 each, Kan-Chi
International Ltd. is jointly owned by Pankil Shah, holding 80% interests; and
Priyal Pankil Shah, holding 20%. Being
India merchants, they are also directors of the subject. They are also Hong Kong ID holders and have
got the right to reside in Hong Kong permanently.
The subject’s registered and operating office is in a private building
known as Ocean View Court.
The subject has got an associated company Kanjan Jewellery Ltd. [Kanjan]
located at the same operating address.
Having issued 4 million ordinary shares of HK$1.00 each, Kajan is
jointly owned by Pankil Shah, holding 55% interests; and Priyal Pankil Shah,
holding 45%. Kanjan and the subject are
engaged in the same lines of business.
The subject is a jewellery and diamond trader. It provides customers with all kinds of
jewellery including platinum, 14K and 18K gold jewellery set with diamonds,
precious stones and semi-precious stones, etc.
According to the subject, it possesses “unique and innovative designs at
competitive prices with a variety of selection”.
The followings are some of its significant products: diamond earrings,
diamond rings, white gold jewellery set, white gold diamond jewellery set, rose
gold jewellery set, carat size diamond and loose diamonds, etc.
Most of its products bear the brand name “KCI”.
It has expanded its markets to the other Asian countries, Europe, the Middle
East and the United States, etc.
Commodities such as polished diamonds, loose diamonds, etc. are chiefly
imported from India. Finished products
are exported to the above-mentioned markets.
The subject is also trading in South Sea pearls, white and colour
diamonds, diamond jewellery, gemset jewellery, platinum jewellery, etc.
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 2015” which will be
held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during
the period of 4th to 8th March, 2015.
The business of the subject and Kajan is chiefly handled by the Shah
family.
Since the history of the subject is over ten years, on the whole,
consider it good for normal business engagements in small credit amounts.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.65 |
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1 |
Rs.98.53 |
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Euro |
1 |
Rs.78.02 |
INFORMATION DETAILS
|
Analysis Done by
: |
KRN |
|
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>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.