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Report No. : |
317541 |
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Report Date : |
18.04.2015 |
IDENTIFICATION DETAILS
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Name : |
DONOVANS LTD. |
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Registered Office : |
Unit 103B, 1/F., Harbour Centre, Tower 1, 1 Hok Cheung Street,
Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
15.10.2002 |
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Com. Reg. No.: |
33217438 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is importer, exporter and wholesaler of all kinds of jewellery
and diamond products |
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No. of Employee : |
17 |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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 40.7 million in 2013, 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 48.5% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56.9% 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. As of year-end 2014, the Democracy protests that began in late September probably will have some adverse effects on economic growth, particularly retail sales.
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Source
: CIA |
DONOVANS LTD.
Unit 103B, 1/F.,
Harbour Centre, Tower 1, 1 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2363 2812
FAX: 852-2363 6013
E-MAIL: info@donovans.com.hk
Managing
Director: Mr. Yeh Yuan Chi, Franky
Incorporated on: 15th October, 2002.
Organization: Private Limited Company.
Issued Share Capital: HK$10,000.00
Business Category: Importer, Exporter and Wholesaler.
Employees: 17.
Main Dealing Banker: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Office:-
c/o MJM Management
Services Ltd.
Flat C, G/F., Kaiser Estate 1, 41 Man Yue
Street, Hunghom, Kowloon, Hong Kong.
Head
Office:-
Unit 103B, 1/F.,
Harbour Centre, Tower 1, 1 Hok Cheung Street, Hunghom, Kowloon, Hong Kong
Holding
Company:-
Copartner
International Ltd., British Virgin Islands.
Associated
Company:-
Myer Jewelry Mfr.
Ltd., Hong Kong.
33217438
0817769
Managing
Director: Mr. Yeh Yuan Chi, Franky
Contact
Person: Ms. Yong Yuk Lin, Fanny
HK$10,000.00
(As
per registry dated 15-10-2014)
|
Name |
|
No.
of shares |
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Copartner International Ltd. P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola,
British Virgin Islands. |
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10,000 ===== |
(As
per registry dated 15-10-2014)
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Name (Nationality) |
Address |
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SIN Nga Yan,
Benedict |
Flat C, G/F., Kaiser Estate 1, 41 Man Yue Street,
Hunghom, Kowloon, Hong Kong. |
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SIN Wai Kin,
David |
26 Black’s Link, Deep Water Bay, Hong
Kong. |
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WONG Foot Keong |
Unit B, 22/F., Tower 19, Phase 4, Laguna
Verde, Hunghom, Kowloon, Hong Kong. |
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YEH Yuan Chi |
Unit B, 22/F., Tower 19, Phase 4, Laguna
Verde, Hunghom, Kowloon, Hong Kong. |
(As
per registry dated 15-10-2014)
|
Name |
Address |
Co.
No. |
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MJM
Management Services Ltd. |
Flat C, G/F., Kaiser Estate 1, 41 Man Yue Street, Hunghom, Kowloon, Hong
Kong. |
0372580 |
The
subject was incorporated on 15th October, 2002 as a private limited liability
company under the Hong Kong Companies Ordinance.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of jewellery and diamond products.
Employees: 17.
Commodities Imported: India, other Asian countries, Europe, US,
etc.
Markets: Hong Kong, Australasia, Central & South America,
North America, Western Europe, UK, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Hong Kong Jewelry
Manufacturers’ Association, Hong Kong.
Issued Share Capital: HK$10,000.00
Profit or Loss: Making a small profit every year.
Condition: Keeping in a satisfactory manner.
Facilities: Making active use of general banking
facilities.
Payment: Met trade commitments as contracted.
Commercial
Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Good.
Having
issued 10,000 ordinary shares of HK$1.00 each, Donovans Ltd. is wholly owned by
Copartner International Ltd. which is a BVI-registered firm.
The
directors of the subject are Sin Nga Yan, Benedict, Sin Wai Kin, David, Wong
Foot Keong, and Yeh Yuan Chi.
The
subject is a jewellery manufacturer and trader.
The
subject is a manufacturer of fine jewellery.
It provides customers with an extensive range of 9K, 10K, 14K and 18K
gold jewellery accented with diamonds and gemstones available in bracelets,
bangles, earrings, necklaces, colour stone rings, pendants, 9K gold &
gemstone jewellery set, 9K gold & diamond jewellery set, bridal ring set,
and diamond rings.
Catering
for medium to high-end market, the subject annually launches 1,800 designs of
jewellery with a China factory and an in-house designing team. The annual production capacity of the China
factory is not less than 500,000 pieces of jewellery products. Its traditional, elegant, classic and
contemporary products are sold to retailers and wholesalers in most countries
of the world. Its prime markets are Hong
Kong, Australasia, Central & South America, North America, Western Europe,
etc. The United Kingdom is one of its
prime markets.
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 2016” which will be held in Hong Kong Convention and Exhibition Centre,
Wanchai, Hong Kong during the period of 4th to 8th March, 2016. Its booth No. is CEC 3E-E24.
The
managing director of the subject Mr. Yeh Yuan Chi, Franky is a Hong Kong
merchant. He has been engaged in the
line of business for a very long time.
It
is worthwhile to note that Sin Nga Yan, Benedict and Sin Wai Kin are also
directors of Myer Jewelry Mfr Ltd. [Myer].
Incorporated on 24th April, 1998, Myer is also a jewellery trader but
located at a different address. Myer
belongs to Myer Group of companies.
The
subject’s history in Hong Kong is over twelve years and six months. Regular suppliers and foreign customers have
been maintained.
On the whole, consider
it good for normal business engagements.
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.62.35 |
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|
1 |
Rs.93.10 |
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Euro |
1 |
Rs.67.13 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
ASH |
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 |
-- |
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.