|
Report Date : |
10.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
KIL INTERNATIONAL LTD. |
|
|
|
|
Registered Office : |
c/o CBS Pacific Ltd. Room A, 8/F., Kam Chung Commercial Building, 19-21 Hennessy Road,
Wanchai |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
04.07.2011 |
|
|
|
|
Com. Reg. No.: |
58601909 |
|
|
|
|
Legal Form : |
Private Limited Liability |
|
|
|
|
Line of business : |
Trader of all kinds of gemstones, diamonds & jewellery products. |
|
|
|
|
No. of Employees : |
No Employees in Hong Kong [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.] |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
No Operating office in Hong Kong |
|
|
|
|
Payment Behaviour : |
Unknown |
|
|
|
|
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) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 |
KIL INTERNATIONAL
LTD.
c/o CBS Pacific Ltd.
Room A, 8/F., Kam Chung Commercial Building, 19-21 Hennessy Road,
Wanchai, Hong Kong.
PHONE: 852-2528 2930
FAX: 852-8148 9228
Managing Director: Mr. Harshil
Premji Kanani
Incorporated on: 4th July,
2011.
Organization: Private
Limited Company.
Capital: Nominal: HK$32,000,000.00
Issued: HK$32,000,000.00
Business Category: Diamond & Gemstone
Trader.
Total income of holding company: INR 2,920.5 million
(Year ended
31-03-2013)
Employees: Nil.
Main Dealing Banker: Bank of India,
Hong Kong Branch.
Banking Relation: Satisfactory.
Registered
Office:-
c/o CBS Pacific Ltd.
Room A, 8/F., Kam Chung Commercial Building, 19-21 Hennessy Road,
Wanchai, Hong Kong.
Holding Company:-
Kanani Industries Ltd., India.
58601909
1625216
Managing Director: Mr. Harshil Premji Kanani
Nominal Share Capital: HK$32,000,000.00 (Divided into 32,000,000 shares
of HK$1.00 each)
Issued Share Capital: HK$32,000,000.00
(As per registry dated 04-07-2012)
|
Name |
|
No. of shares |
|
Kanani Industries Ltd. G-6, Prasad Chambers, Tat Road No. 2, Opera House, Mumbai-400004,
Maharashtra, India. |
|
32,000,000 ======== |
(As per registry dated 07-04-2013)
|
Name (Nationality) |
Address |
|
Harshil Premji KANANI |
Flat 104, 9/F., Navyug Nagar No. 1, Forjet Hill Opp. Bhatia Hosp
Tardeo Mumbai-400036, M.S., India. |
(As per registry dated 04-07-2012)
|
Name |
Address |
Co. No. |
|
CBS Pacific Ltd. |
Room A, 8/F., Chung Commercial Building, 19‑21 Hennessy
Road, Wanchai, Hong Kong. |
0582043 |
The subject was incorporated on 4th July, 2011 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the registered address of the subject was located at “Room 515,
5/F., Tower A, New Mandarin Plaza, Science Museum Road, Tsimshatsui, Kowloon,
Hong Kong” where was the operating office of Michael Chan & Co. This firm is an accountant firm. Your given phone and fax number 3114
7994 and 3114 7995 respectively belongs to it.
The registered office moved to the present address in May 2012. The subject changed its registered office
because it has changed its commercial service provider since then.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Diamond & Gemstone
Trader.
Lines: All kinds of gemstones, diamonds
& jewellery products.
Employees: Nil.
Commodities Imported: India, etc.
Markets: Hong Kong, China, Middle
East, Europe, North America, etc.
Total income of holding company:-
INR 1,516.7 million (Year ended 31-03-2011)
INR 1,655.5 million (Year ended 31-03-2012)
INR 2,920.5 million (Year ended 31-03-2013)
Terms/Sales: As per contracted.
Terms/Buying: Various terms.
Nominal Share Capital: HK$32,000,000.00
(Divided into 32,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$32,000,000.00
Profit after Tax of holding company:-
INR 161.8 million (Year ended 31-03-2011)
INR
6.8 million (Year ended
31-03-2012)
INR
9.6 million (Year ended
31-03-2013)
Profit or Loss: Business of
parent is profitable.
Condition: Business is
under development.
Facilities: Adequate for
current running.
Payment: Met trade commitments as
required.
Commercial Morality: Satisfactory
Banker: Bank of India,
Hong Kong Branch.
Standing: Small.
Having issued 32 million ordinary shares of HK$1.00 each, KIL International Ltd. is wholly owned by Kanani Industries Ltd. [Kanani] which is an India‑based and listed firm.
The director of
the subject is Harshil Premji Kanani.
The subject does
not have its own operating office. Its
registered office is in a commercial service firm located at “Room A, 8/F.,Kam
Chung Commercial Building, 19-21 Hennessy Road, Wanchai, Hong Kong” known as
“CBS Pacific Ltd.” which is handling its correspondences and documents. This firm is also the corporate secretary of
the subject.
The subject has no
employees in Hong Kong.
Kanani is a
diamond and jewellery trader, so does the subject.
Kanani was
initially incorporated on 22nd March 1983 with the Registrar of Companies
Maharashtra, Mumbai, as a public limited company under the name of “Shivlaxmi
Mercantile Company Limited”.
Kanani was
acquired by Mr. Premjibhai D. Kanani and Mr. Vinubhai L. Kanani on 9th April
2007. Since then it has changed in management
and control in shareholding under the name IMP Finance Limited, which was
subsequently changed to “Kanani Industries Limited”. Kanani is the present name. On 19th October, 2007, Certificate of Name
Changed was issued by the Registrar of Companies Maharashtra Mumbai.
Further the
company had acquired its own land at SEZ, Sachin, Surat (Gujarat) of India, and
built up its own four story factory. Now
Kanani is engaged in diamonds studded jewellery business. The subject is responsible for marketing its
products.
For the year ended
31st March, 2013, the total income of Kanani amounted to INR 2,920.5 million
(2012 INR 1,655.5 million), grew by 76.4% as compared with previous year;
profit after tax of Kanani amounted to INR 9.6 million (2012: INR 6.8 million).
Harshil Premji
Kanani is also the managing director and executive director of Kanani.
The subject is
fully supported by Kanani. Business is
still under development. History in Hong
Kong is just over two years.
On the whole,
since the subject does not have its own operating office 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
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.60.80 |
|
|
1 |
Rs.91.95 |
|
Euro |
1 |
Rs.80.36 |
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 |
|
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 |
|
---- |
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.