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Report No. : |
307415 |
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Report Date : |
11.02.2015 |
IDENTIFICATION DETAILS
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Name : |
S & S INTERNATIONAL |
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Registered Office : |
Room G, 8/F., Hilton Tower, Block B, 96 Granville Road, Tsimshatsui, Kowloon |
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Country : |
Hongkong |
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Date of Incorporation : |
17.06.1997 |
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Com. Reg. No.: |
21018163-000-06 |
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Legal Form : |
Sole Proprietorship Concern |
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Line of Business : |
· subject is a diamond and Jewellery Trader · subject was also engaged in Liquor Business |
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No. of Employees : |
01 |
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
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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Hongkong |
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 |
HONGKONG - 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 |
(Formerly located
at:
Flat B1, 7/F., Far East Mansion, 5-6 Middle Road, Tsimshatsui, Kowloon,
Hong Kong.)
S & S
INTERNATIONAL
ADDRESS: Room G, 8/F.,
Hilton Tower, Block B, 96 Granville Road, Tsimshatsui, Kowloon,
Hong
Kong.
PHONE: 852-2311
6353
FAX: 852-2366
6135
E-MAIL: ssinter@netvigator.com
Manager: Mr. Mehul Girishbhai Tanna
Establishment: 17th June, 1997.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond
Trader.
Employee: 1.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Room G, 8/F., Hilton Tower, Block B, 96 Granville Road, Tsimshatsui,
Kowloon, Hong Kong.
Associated
Companies:-(Same address)
JKM Enterprises, Hong Kong.
Ocean Diamonds, Hong Kong.
Precious Jewels Ltd., Hong Kong.
21018163-000-06
Manager: Mr. Mehul Girishbhai Tanna
Name: Mr. Mehul Girishbhai TANNA
Residential Address: Flat B, 5/F.,
Lip Seng Mansion, 15-19 Carnarvon Road, Tsimshatsui, Kowloon,
Hong
Kong.
The subject was established on 17th June, 1997 as a sole proprietorship
concern owned by Mr. Manish Pravinbhai Kheni under the Hong Kong Business
Registration Regulations. On 1st April,
1999, Mr. Mehul Girishbhai Tanna joined in as partner. However, Kheni retired on 1st April,
2000. Since then, the subject has become
a sole proprietorship of Mr. Mehul Girishbhai Tanna.
Originally the subject was located at Room 506, 5/F., Hart Avenue Plaza,
5‑9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to Flat B,
8/F., Kam Ma Building, 16 Cameron Road, Tsimshatsui, Kowloon, Hong Kong in
January 2002, to Flat A5, 10/F., Block A, Hankow Centre, 47 Peking Road,
Tsimshatsui, Kowloon, Hong Kong in July 2004, moved to Flat B1, 7/F., Far East
Mansion, 5-6 Middle Road, Tsimshatsui, Kowloon, Hong Kong in October 2009, and
further moved to the present address in May 2014.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer
and Exporter.
Lines: All
kinds of diamonds & jeweller
Employee: 1.
Commodities Imported: Europe,
India, other Asian countries, etc.
Markets: Hong
Kong, Middle East, Europe, other Asian countries, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Capital: Not
disclosed.
Profit or Loss: Just
made very small profits in the past years.
Condition: Business is fairly active.
Facilities: Making fairly active use of
general banking facilities.
Payment: Met trade commitments on time.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Dah Sing Bank Ltd., Hong Kong.
Standing: Small.
S & S International is a sole proprietorship owned by Mr. Mehul
Girishbhai Tanna who is an Indian and has been in Hong Kong for a very long
time. Being manager of the subject,
Tanna is a Hong Kong ID Card holder and has got the right to reside in Hong
Kong permanently.
The subject’s old registered address was located at Flat B1, 7/F., Far
East Mansion, 5-6 Middle Road, Tsimshatsui, Kowloon, Hong Kong where was in a
private building. In May 2014, the
subject moved to the present address.
Its new office is also not in a commercial building but a residential
building. Tanna has moved to this new
address but does not make any amendments on its registration materials. The subject’s operating address is also M G
Tanna’s latest residential address.
The premises where the subject formerly located are jointly owned by Mr.
Mehul Girishbhai Tanna and Ms. Anjaly Mehul Tanna. They bought the premises on 21st September,
2009 at a consideration of HK$7.25 million.
The subject has got the following associated companies located at the
same address:-
· JKM Enterprises;
· Ocean Diamonds; &
· Precious Jewels Ltd.
Ocean Diamonds is a sole proprietorship set up and owned by M G
Tanna. This firm commenced business on
1st May, 2001. JKM Enterprises is also
owned by M G Tanna and was established on 1st September, 1999.
Having issued 10,000 ordinary shares of HK$1.00 each, Precious Jewels
Ltd. is wholly owned by Mehul Girishbhai Tanna.
Precious Jewels was incorporated on 19th March, 2010.
The subject is a diamond and jewellery trader, so do its
associates. It imports diamonds from
India and Europe. Finished products are
marketed in Hong Kong and exported to Japan, Taiwan, the other Asian
countries, the Middle East, North America, Western Europe, etc. Business is normal.
According to the registration documents of the subject, the subject was
also engaged in liquor business about ten years ago. Now, it is just engaged in diamonds and
jewellery trading.
Business chiefly handled by M G Tanna himself, all the firms owned by
him just made very small profits in the past years.
Tanna is also an authorised signatory (constituted attorney) of some
other companies in Hong Kong.
The history of the subject in Hong Kong is over seventeen years and five
months.
On the whole, consider it good for normal business engagements in small
credit amounts.
Property information of the proprietor:-
Property Location: Flat
B on 7/F., Far East Mansion, 5-6 Middle Road, Kowloon, Hong Kong.
Owner: Mehul
Girishbhai Tanna & Anjaly Mehul Tanna
Date of Purchase: 21-09-2009
Purchased Price: HK$7,250,000
Incumbrances:-
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Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
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21-09-2009 |
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Dah Sing Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.96 |
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1 |
Rs.94.41 |
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Euro |
1 |
Rs.70.20 |
INFORMATION DETAILS
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Analysis Done by
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SUB |
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Report Prepared
by : |
MNL |
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.