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Report Date : |
19.12.2014 |
IDENTIFICATION DETAILS
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Name : |
SHRENUJ FAR EAST LTD. |
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Registered Office : |
5/F., Kaiseng Commercial Centre, |
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Country : |
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Date of Incorporation : |
15.10.1997 |
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Com. Reg. No.: |
21311654 |
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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 |
45 |
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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Hong Kong |
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 |
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 |
SHRENUJ FAR
EAST LTD.
ADDRESS: 5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2368 5589, 2186 2400
FAX: 852-2368 9116, 3543 1134
E-MAIL: dipan@inter-gemshk.com
Managing Director: Mr. Milind Harendra Jhaveri
Incorporated on: 15th October, 1997.
Organization: Private Limited Company.
Capital: Nominal:HK$501,000.00
Issued: HK$501,000.00
Business Category: Jewellery Trader.
Company Turnover: US$75.0 million (Year ended 31-03-2014) [Estimated]
Group Turnover: Rs 46,431.80 million (Year ended 31-03-2014)
Employees: 45. (Company)
1,700. (Group)
Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon, Hong Kong.
Holding Company:-
Shrenuj (Mauritius) Pvt. Ltd., Mauritius.
Ultimate Holding
Company:-
Shrenuj & Co. Ltd., India.
Associated/Affiliated
Companies:-
Shrenuj Group of
Companies
Alija International Pty. Ltd., Australia.
Arisia Jewellery Pvt. Ltd., India.
Astral Holding Inc., US.
Astral Jewels LLC, US.
Astral USA Inc, US.
Bernie’s International LLC, US.
C & A Diamonds International LLC, US.
Copem & Shrenuj, Italy.
Daily Jewellery Ltd., Hong Kong. [Trading as Joeliesse] (Same address)
Ever Gold (HK) Ltd., Hong Kong. (Same address)
Facet (Hong Kong) Ltd., Hong Kong. (Same address)
Global Marine Diamond Corporation, US.
Inala Metals & Minerals Pvt. Ltd., India.
Intergems H.K. Ltd., Hong Kong. (Same address)
Ithemba Diamonds (Pty) Ltd., South Africa.
Jomard SAS, France.
Kiara Jewellery (H.K.) Ltd., Hong Kong. (Same address)
Kiara Jewellery Pvt. Ltd., India.
Lume Group AG, Switzerland.
Shrenuj Australia Pty. Ltd., Australia.
Shrenuj Botswana Pty. Ltd., Botswana.
Shrenuj DMCC, UAE.
Shrenuj GmbH, Germany.
Shrenuj Japan Corporation, Japan.
Shrenuj Jewely (Far East) Ltd., Hong Kong.
Shrenuj Lifestyle Ltd., India.
Shrenuj N.V., Belgium.
Shrenuj Overseas Ltd., India.
Shrenuj Shanghai Ltd., China.
Shrenuj South Africa Pty. Ltd., South Africa.
Shrenuj USA LLC, US.
Simon Golub & Sons Inc., US.
SWA Trading Ltd., Israel.
Trapz LLC, US.
Uxolo Diamond Cutting Works (Pty) Ltd., South Africa.
21311654
0626569
Managing Director: Mr. Milind Harendra Jhaveri
Nominal Share Capital: HK$501,000.00 (Divided into 501,000 shares of HK$1.00 each)
Issued Share Capital: HK$501,000.00
SHAREHOLDERS: (As per registry dated 15-10-2013)
|
Name |
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No. of shares |
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Shrenuj (Mauritius) Pvt. Ltd. St. James Court, Suite 308, St. Denis Street, Port Louis, Republic of Mauritius. |
|
500,999 |
|
Smit Subhashbhai KOTHARI |
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1 |
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––––––– |
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Total: |
501,000 ====== |
DIRECTORS: (As per registry dated 15-10-2013)
|
Name (Nationality) |
Address |
|
Vishal Shreyas DOSHI |
162, Neelamber, 37, Gopalrao Deshmukh Marg, Mumbai 400026, M.S., India. |
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Vinod Mahadeo SHETYE |
C-0712, Harbourfront Horizon All-Suite Hotel, 8 Hung Luen Road, Hunghom Bay, Kowloon, Hong Kong. |
|
Milind Harendra JHAVERI |
Flat D, 46/F., Block T15, Crystal Cove, Caribbean Coast Ph4, Tung Chung, Lantau, Hong Kong. |
SECRETARY: (As per registry dated 15-10-2013)
|
Name |
Address |
Co. No. |
|
Cheng & Cheng Corporate Services Ltd. |
Room 1201, 12/F., Allied Kajima Building, 138 Gloucester Road, Wanchai, Hong Kong. |
0307222 |
The subject was incorporated on 15th October, 1997 as a private limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Inter-Gems (H.K.) Ltd., name changed to the present style on 8th August, 2013.
Formerly the subject was located at Room 707, 7/F., Kowloon Centre, 33 Ashley Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in March 2004.
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, etc.
Employees: 45. (Company)
1,700. (Group)
Commodities Imported: India, Belgium, Israel, other European countries, etc.
Markets: Japan, other Asian countries, etc.
Company Turnover: US$72.8 million (Year ended 31-03-2012)
US$63.3 million (Year ended 31-03-2013)
US$75.0 million (Year ended 31-03-2014) [Estimated]
Group Turnover: Rs 24,565.15 million (Year ended 31-03-2011)
Rs 31,505.85 million (Year ended 31-03-2012)
Rs 38,621.47 million (Year ended 31-03-2013)
Rs 46,431.80 million (Year ended 31-03-2014)
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
MEMBERSHIP: The Hong Kong General Chamber of Commerce,
Hong Kong.
[Membership No. HKI0277]
The Indian Chamber of Commerce Hong Kong, Hong Kong.
Nominal Share Capital: HK$501,000.00 (Divided into 501,000 shares of HK$1.00 each)
Issued Share Capital: HK$501,000.00
Mortgage or Charge (since 2008): (See attachment)
Company Net (Loss)/Profit:
US$0.5 million (Year ended 31-03-2012)
US$2.9 million (Year ended 31-03-2013)
US$3.2 million (Year ended 31-03-2014) [Estimated]
Group Profit After Taxation:-
Rs 542.48 million (Year ended 31-03-2011)
Rs 686.21 million (Year ended 31-03-2012)
Rs 751.40 million (Year ended 31-03-2013)
Rs 896.26 million (Year ended 31-03-2014)
Profit or Loss: Subject made profits in past three years.
Condition: Keeping in an active condition.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
Hang Seng Bank Ltd., Hong Kong.
Bank of India, Hong Kong Branch.
ICICI Bank Ltd., Hong Kong Branch.
Punjab National Bank, Hong Kong Branch.
Standing: Very Good.
Having issued 501,000 ordinary shares of HK$1.00 each, Shrenuj Far East Ltd. is a subsidiary company of Shrenuj (Mauritius) Pvt. Ltd. which is a Mauritius-registered firm. The ultimate holding company of the subject Shrenuj & Co. Ltd. [Shrenuj] is an India-based firm.
Located at its operating address, the subject has had a number of associated companies while the main one is Shrenuj Jewelry (Far East) Ltd.
The subject is a diamond importer, exporter and wholesaler. It is dealing in jewellery diamonds ranging from 2 points to 2 carats, and in all colours — from D to L colours and all shades of brown. Products include single cuts, full cuts and fancy shapes — such as princess, baguettes, marquise, pearl, oval, emerald and heart. It is trading in the following products:-
Finished Jewellery
Diamond Jewellery
White Diamond Jewellery
Gem Set Jewellery
Emerald Jewellery
Ruby Jewellery
Sapphire Jewellery
Gold Jewellery
14K Gold Jewellery
18K Gold Jewellery
Fineness not Specified
Materials
Diamond
Polished White Diamond
Precious gemstones
Polished Ruby
Polished Sapphire
Findings
Chain
The subject is famous for its carat-size diamonds, loose diamonds, GIA diamonds, etc.
Rough diamonds are imported from India, Belgium, Israel and other European countries, etc. Polished and cut products are exported to Japan, Southeast Asia, the Middle East, etc. Business is rather active.
The subject also markets its product online. It sells its product via the website “BusyTrade.com”. The subject is a DTC Sight Holder.
Shrenuj is a listed firm with shares actively traded on Bombay Stock Exchange [BSE] and National Stock Exchange [NSE]. Shrenuj is one of the largest diamond and jewellery manufacturing companies in India having an international presence in 15 countries with a geographically diversified customer base, favourable economies of scale, ability to source roughs from strategic partners, growing retail presence and market linked production mix. Its activities are carried out in accordance with good corporate practices.
The followings were some the highlights for Shrenuj in 2013:
Shrenuj has increased its presence in the South-east Asia viz. Myanmar, Vietnam by adding more retail markets for Forevermark diamonds, apart from strongly growing markets such as China and Malaysia.
Commencing maiden retail outlet for jewellery at Gabarone Airport in the capital city of Botswana.
The Company has partnered with DTC for beta-testing of the prototype for screening small sized diamonds. In-house diamond testing laboratory set up with Automatic Melee Screening machine.
The Company has been focusing on strengthening its rough diamond sourcing, especially in key mining countries such as Botswana and South Africa.
The Company was ranked amongst top 500 companies listed by The Economic Times.
For the year ended 31st March, 2014, the income of the Shrenuj Group amounted to Rs 46,431.80 million (2013: Rs 38,621.47 million). Group profit after taxation for the year was Rs 896.26 million (2013: Rs 751.40 million). Overall business of the Group has been increasing.
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 Diamond, Gem & Pearl Show 2015” which will be held in Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the period of 2nd to 6th March, 2015. Its booth No. is AWE 2-M33.
The subject is fully supported by the Shrenuj Group.
Since the history of the subject in Hong Kong is over sixteen years, on the whole, consider it good for normal business engagements.
Property information of the company:-
1. Property Location: Carparking Space No. B84 at Basement 2 of Phase VI, Caribbean Coast, 1 Kin Tung Road, Tung Chung, Lantau Island, Hong Kong.
Owner: Inter-Gems (H.K.) Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
30-09-2008 |
- |
Hang Seng Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
2. Property Location: Carparking Space No. B85 at Basement 2 of Phase VI, Caribbean Coast, 1 Kin Tung Road, Tung Chung, Lantau Island, Hong Kong.
Owner: Inter-Gems (H.K.) Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
30-09-2008 |
- |
Hang Seng Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
(Since 2008)
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Date |
Particulars |
Amount |
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07-04-2008 |
Instrument: Debenture Property: 1) Assign to the Bank the proceeds of each policy of insurance 2) Charge to the Bank by way of a floating charge all shares, stock, bonds, debentures, certificates of deposit, promissory notes, warrants, futures, options, funds, units, notes and other securities 3) Charge to the Bank by way of floating charge all book debts and other debts 4) Charge to the Bank by way of floating charge all negotiable instruments 5) Charge to the Bank by way of floating charge all funds 6) Charge to the Bank by way of floating charge all chooses in action and claims Mortgagee: ICICI Bank Ltd., Hong Kong Branch. |
All monies |
|
30-09-2008 |
Instrument: Mortgage Property: 12/428,830th parts or shares of and in Tung Chung Town Lot No. 5 (Carparking Space No. B84 at Basement 2 of Phase VI, Caribbean Coast, 1 Kin Tung Road, Tung Chung, Lantau Island, Hong Kong.) Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
To secure all moneys in respect of general banking facilities |
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30-09-2008 |
Instrument: Mortgage Property: 12/428,830th parts or shares of and in Tung Chung Town Lot No. 5 (Carparking Space No. B85 at Basement 2 of Phase VI, Caribbean Coast, 1 Kin Tung Road, Tung Chung, Lantau Island, Hong Kong.) Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
To secure all moneys in respect of general banking facilities |
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07-10-2010 |
Instrument: Charge on Deposit Property: Account No. Sum Deposit Dated 6841000054 US$204,000.00 14-03-2010 Mortgagee: Punjab National Bank, Hong Kong Branch. |
To secure all monies in respect of banking facilities |
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19-10-2011 |
Instrument: Supplemental Debenture Property: B way of a floating charge the whole of the Customer’s stocks of raw materials, goods-in-process, inventory, semi-finished goods, consumable stores and spares and other movables Mortgagee: ICICI Bank Ltd., Hong Kong Branch. |
All monies |
|
06-02-2012 |
Instrument: Property: All sums of Charge on Deposit: Money from time to time standing to the credit of the account of the Depositor Mortgagee: Punjab National Bank, Hong Kong Branch. |
To secure All monies in respect of banking facilities owing at any time plus interest and all expenses |
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.63.32 |
|
|
1 |
Rs.98.68 |
|
Euro |
1 |
Rs.78.11 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
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|
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|
Report Prepared
by : |
NIT |
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 |
|
|
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 |
-- |
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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.