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Report Date : |
17.02.2014 |
IDENTIFICATION DETAILS
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Name : |
K & S JEWELLERY LTD. |
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Registered Office : |
c/o Neptune HK
Ltd. Unit B, 6/F., |
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Country : |
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Date of Incorporation : |
06.07.2011 |
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Com. Reg. No.: |
58620941 |
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Legal Form : |
Private Limited
Company. |
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LINE OF BUSINESS : |
IMPORTER AND EXPORTER OF ALL
KINDS OF JEWELLERY PRODUCTS |
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No. of Employees : |
No employees in It is to be noted that
the company does not have its own operating office in |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
No operating office in Hong Kong |
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Payment Behaviour : |
Unknown |
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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, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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Hong Kong |
A2 |
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 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.
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Source
: CIA |
K & S JEWELLERY LTD.
ADDRESS: c/o
Neptune HK Ltd.
Unit B, 6/F., Wing Tat
Commercial Building, 121-125 Wing Lok Street, Sheung Wan, Hong Kong.
PHONE: 852-2850
8485
FAX: 852-2850
8681
E-MAIL: marvelhk@netvigator.com
Managing
Director: Mr. Ashwani Kumar Deepak
Chugani
Incorporated on: 6th July, 2011.
Organization: Private
Limited Company.
Capital: Nominal: HK$1,000,000.00
Issued: HK$100,000.00
Business Category: Jewellery Trader.
Employees: Nil.
Main Dealing
Banker: The Hongkong & Shanghai
Banking Corp. Ltd., Hong Kong.
Banking
Relation: Satisfactory.
K & S JEWELLERY LTD.
Registered Office:-
c/o Neptune HK Ltd.
Unit B, 6/F., Wing
Tat Commercial Building, 121-125 Wing Lok Street, Sheung Wan, Hong Kong.
Affiliated Companies:- (Same address)
Marvel Impex, Hong
Kong.
Neptune HK Ltd.,
Hong Kong.
58620941
1627120
Managing
Director: Mr. Ashwani Kumar Deepak
Chugani
Nominal Share
Capital: HK$1,000,000.00
(Divided into
1,000,000 shares of HK$1.00 each)
Issued Share
Capital: HK$100,000.00
(As per registry
dated 06-07-2013)
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Name |
|
No. of shares |
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Mr. Ashwani Kumar
Deepak CHUGANI |
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100,000 ====== |
(As per registry
dated 06-07-2013)
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Name (Nationality) |
Address |
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Mr. Ashwani Kumar
Deepak CHUGANI |
Caya Di Sero 30,
Noord, Aruba. |
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Mr. Chugani
Hitesh Deepak |
22R Malmokweg,
Noord, Aruba. |
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Mr. Chugani Dipak
Daulatram KanHyalal |
29 Pigeon Road,
Pointe Blanche, Street Maarteen, Aruba. |
(As per registry
dated 06-07-2013)
|
Name |
Address |
Co. No. |
|
Multi-Chain Ltd. |
Room 301, 3/F.,
Kam On Building, 176A Queen’s Road Central, Hong Kong. |
0209214 |
The subject was
incorporated on 6th July, 2011 as a private limited liability company under the
Hong Kong Companies Ordinance.
Formerly the subject’s
registered address was located at “Room 12A05, 12A/F., Enterprises Building,
228-238 Queen’s Road Central, Hong Kong” where was the operating office of a
Hong Kong-registered company Neptune HK Ltd.
Neptune HK Ltd. moved to the present address in March 2011, so did the
subject.
Apart from these,
neither material change nor amendment has been ever traced and noted.
Activities: Importer and Exporter.
Lines: All kinds of
jewellery products
Employees: Nil.
Commodities
Imported: India
Markets: Aruba.
Terms/Sales: L/C,
T/T
Terms/Buying: Prepayment, L/C
Nominal Share
Capital: HK$1,000,000.00
(Divided into
1,000,000 shares of HK$1.00 each)
Issued Share
Capital: HK$100,000.00
Profit or Loss: Too early to offer an opinion.
Condition: Business is under
development.
Facilities: Making fairly active use
of general banking facilities.
Payment: Met
trade commitments as required.
Commercial
Morality: Satisfactory.
Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Having issued
100,000 ordinary shares of HK$1.00 each, K & S Jewellery Ltd. is wholly
owned by Mr. Ashwani Kumar Deepak Chugani who is an Indian. Chugani is a Holland passport holder and does
not have the right to reside in Hong Kong permanently.
The subject is a
diamond and jewellery trader.
Chugani is also one
of the directors of the subject who currently is residing in Aruba which has no
administrative subdivisions, is one of the four constituent countries that form
the Kingdom of the Netherlands, together with the Netherlands, Curacao, and
Sint Maarten whose citizens share a single nationality: Dutch citizen. It is therefore Chugani is a Dutch citizen.
The subject does
not have its own operating office. Its
registered office is in a Hong Kong-registered firm located at “Unit B, 6/F.,
Wing Tat Commercial Building, 121-125 Wing Lok Street, Sheung Wan, Hong Kong”
known as “Neptune HK Ltd.” [Neptune] which is handling its correspondences and
documents.
Neptune is operated
by Mr. G. Uttam who is an Indian.
Established in 1971, Neptune is trading in the following commodities:-
Dice - Plastic,
Domino Set, Toys , Others, Tableware - Porcelain / Ceramic / Stone, Household
Products - Plastic, Key Chains / Holders, Padlock, Manicure Set & Nail
Clipper, Audio Cassette Tape - Blank, Video Cassette Tape - Blank, Batteries,
etc.
Another firm known
as Marvel Impex is also located at the same address. Marvel Impex is owned and operated by an Indian
Mr. Naresh R Vaswani. This company is
trading in piecegoods, fabrics and children’s garments, etc.
It is likely that
Naresh R Vaswani is a friend of Chugani who has been permitted to use the
operating address of Marvel Impex as its registered address in Hong Kong.
The subject has no
employees in Hong Kong. It is a
jewellery and diamond trader. Most of
the commodities are imported from India.
Prime markets are Aruba and some of the European countries. Business is improving.
It is likely that
the subject has got an associated company in Aruba which is also operated by
Chugani.
The Aruba firm
deals with foreign parties under the name of the subject and let foreign firms
correspond with the subject’s registered address in Hong Kong. The Aruba firm also exports commodities to
foreign markets under the name of the subject and its registered address in
Hong Kong.
The subject’s
business in Hong Kong is not active.
History in Hong Kong is just over two years.
Since the subject
does not have its own operating office, history is short and has no employees
in Hong Kong, consider it good for business engagements on L/C basis.
NOTE:
It is to be noted that the
company does not have its own operating office in Hong Kong. The company uses
the address of its secretariat as its correspondence address only. Subject
operates from some other country and does not have a base in Hong Kong. Such
companies are registered in Hong Kong just to tax benefit purpose and due to
the strict privacy laws prevailing in the country. In such cases, the companies
are not required to have any employees in Hong Kong nor do have an office
there.
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
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Indian Rupees |
|
US Dollar |
1 |
Rs.62.28 |
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|
1 |
Rs.103.67 |
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Euro |
1 |
Rs.85.18 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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.