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Report Date : |
15.07.2014 |
IDENTIFICATION DETAILS
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Name : |
KIL INTERNATIONAL LTD. |
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Registered Office : |
Room 1502, 15/F., |
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Country : |
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Date of Incorporation : |
04.07.2011 |
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Com. Reg. No.: |
58601909 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trader of All kinds of gemstones, diamonds, jewellery products |
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No of Employees : |
3 |
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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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
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Source
: CIA |
KIL INTERNATIONAL
LTD.
ADDRESS: Room 1502, 15/F., Rise Commercial
Building, 5-11 Granville Circuit, Tsimshatsui, Kowloon, Hong Kong.
PHONE: Not available
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: INR
3,378.1 million (Year ended 31-03-2014)
- Consolidated
Employees: 3.
Main Dealing Banker: DBS
Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Satisfactory.
KIL INTERNATIONAL
LTD.
Registered
Office:-
Room 1502, 15/F., Rise Commercial Building, 5-11 Granville Circuit,
Tsimshatsui, Kowloon, 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
SHAREHOLDER: (As
per registry dated 04-07-2013)
|
Name |
|
No. of shares |
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Kanani Industries Ltd. G-6, Prasad Chambers, Tat Road No. 2, Opera House, Mumbai-400004,
Maharashtra, India. |
|
32,000,000 ======== |
DIRECTOR: (As per
registry dated 04-07-2013)
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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. |
SECRETARY: (As per
registry dated 04-07-2013)
|
Name |
Address |
Co. No. |
|
Champion Corporate Ltd. |
Unit 907, 9/F., Silvercord Tower 2, 30 Canton Road, Tsimshatsui,
Kowloon, Hong Kong. |
0657221 |
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 ‘c/o CBS Pacific Ltd., Room A, 8/F., Kam
Chung Commercial Building, 19-21 Hennessy Road, Wanchai, Hong Kong’ in May
2012. The subject moved to the present
address in early 2014.
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, etc.
Brand Name: Lucee Diamonds.
Employees: Nil.
Commodities Imported: India,
etc.
Markets: Hong
Kong, China, Middle East, Europe, North America, etc.
Total Income (Consolidated): 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)
INR 3,378.1
million (Year ended 31-03-2014)
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
Mortgage or Charge:-
Date of Charge on Cash Deposit to Secure Liabilities of the Depositor:
29-01-2014
Amount: All sums of
money and liabilities
Property: 1) By way of first fixed charge and
agreement to charge:
the Deposit and all right, title and interest of the Company whatsoever,
present and future, thereto and therein, together with any certificates of
deposit or other instruments or securities evidencing title, or otherwise
relating, thereto and any account to which the same is credited
2) By way of set-off
any sum standing to the credit of any one or more of the accounts of the
Company with the Bank
Mortgagee: DBS Bank
(Hong Kong) Ltd., Hong Kong.
Profit after Tax (Consolidated): 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)
INR 29.9 million (Year ended 31-03-2014)
Profit or Loss: Business of parent is profitable.
Condition: Business
is improving.
Facilities: Adequate
for current running.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: DBS Bank (Hong Kong) Ltd., Hong Kong.
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. He can be reached at your given Hong Kong
mobile phone number 852-9278 7842.
Formerly, the subject’s registered office was 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. Now, the subject has moved to the present
address since early 2014.
The subject is a diamond studded jewellery manufacturer. Most of its products bear the brand name Lucee
Diamonds.
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, 2014, the total income of Kanani amounted
to INR 3,378.1 million (2013: INR 2,920.5 million), grew by 15.7% as compared
with previous year; profit after tax of Kanani amounted to INR 29.9
million (2013: INR 9.6 million), grew by 211.5%.
Harshil Premji Kanani is also the managing director and executive
director of Kanani.
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. Its booth No. is CEC 3F-B15.
The subject is fully supported by Kanani. Business is improving. History in Hong Kong is just over three
years.
On the whole, consider the subject good for business engagements on L/C
basis or 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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 60.00 |
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|
1 |
Rs. 102.71 |
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Euro |
1 |
Rs. 81.59 |
INFORMATION DETAILS
|
Analysis Done by
: |
KRN |
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Report Prepared
by : |
DPT |
RATING EXPLANATIONS
|
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 |
|
<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.