MIRA INFORM REPORT

 

 

Report No. :

330799

Report Date :

08.07.2015

 

IDENTIFICATION DETAILS

 

Name :

TAIPINGYANG TRADING LTD.

 

 

Registered Office :

22/F, No. 280 Portland Street, Mongkok, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

10.07.2014

 

 

Com. Reg. No.:

63566314

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Trader of all kinds of Jewellery and Diamonds.

 

 

No. of Employees :

10. (Including Associates)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

NB

 

RATING

STATUS

PROPOSED CREDIT LINE

 

--

NB

New Business

 

--

 

Status :

New Company

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Hong Kong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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.

 

Source : CIA

 

 

Company Name and address

 

TAIPINGYANG TRADING LTD.

 

ADDRESS:                   22/F, No. 280 Portland Street, Mongkok, Kowloon, Hong Kong.

                                    [Formerly located at: Room 505B, 5/F., Block A, Hunghom Commercial Centre, 39 Ma Tau Wai Road, Hunghom,  Kowloon, Hong Kong]

 

PHONE:                        852-5321 6201, 3152 3834

 

 

MANAGEMENT

 

Managing Director:        Mr. Meher Deepak Kulkarni

 

 

SUMMARY

 

Incorporated on:            10th July 2014.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     HK$10,000.00

 

Business Category:       Jewellery Trader.

 

Group Revenue:            INR 124,360.00 million  (Year ended 31-03-2014)

 

Employees:                  10.  (Including associates)

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:          Satisfactory.

 

 

ADDRESS

 

Registered Head Office:-

Room 505B, 5/F., Block A, Hunghom Commercial Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong.

 

Holding Company:-

Aston Luxury Group Ltd., Hong Kong.  (Same address)

 

Ultimate Holding Company:-

Gitanjali Gems Ltd., India.

 

Associated Companies:-

Gitanjali Group of Companies

Abbeycrest (Thailand) Ltd., Thailand.

Alfred Terry Ltd., UK.

Asmi Jewellery India Ltd., India.

Aston Diamond Resources SA (Pty.) Ltd., South Africa.

BLU SRL, Italy.

Crown Aim Ltd., Hong Kong.  (Same address)

D’Damas Jewellery (India) Private Ltd., India.

Decent Investment & Finance Private Ltd., India.

Decent Securities & Finance Private Ltd., India.

Diadem Ranka Desire Lifestyle Pvt. Ltd., India.

Diamlink Inc., US.

Diamlink Jewelery Inc., US.

eGitanjali Ltd., India.

Eureka Finstocks Private Ltd., India.

GGL Diamonds LLC., US.

Giantti Jewellery Trading (SH) Co. Ltd., China.

Gili India Ltd., India.

Gitanjala Infratech Ltd., India.

Gitanjali Brands Ltd., India.

Gitanjali Capital Private Ltd., India.

Gitanjali Exports Corporation Ltd., India.

Gitanjali Gold & Precious LLC, UAE.

Gitanjali Jewellery Retail Ltd., India.

Gitanjali Jewels LLC, UAE.

Gitanjali Lifestyle Ltd., India.

Gitanjali Resources BVBA, Belgium.

Gitanjali USA Inc., US.

Gitanjali Ventures DMCC, U.A.E.

Hyderabad Gems SEZ Ltd., India.

Jewelry Marketing Co LLC., US.

Leading Italian Jewels (Singapore) Pte. Ltd., Singapore.

Leading Italian Jewels SRL, Italy.

Leading Jewels of Japan Kabushiki Kaisha, Japan.

LJOW Holdings LLC., US.

Maya Retail Ltd., India.

MMTC Gitanjali Ltd., India.

MobileNxt Teleservices Private Ltd., India.

N&J Finstocks Private Ltd., India.

Nakshatra Brands Ltd., India.

Nashik Multi Services SEZ Ltd., India.

Samuels Jewelers Inc., US.

Shubhlavanyaa Jewels Crafts Pvt. Ltd., India.

Spectrum Jewellery Ltd., India.

Tianxin Diamonds (Shanghai) Co. Ltd., China.

Tri-star Worldwide LLC, US.

 

 

BUSINESS REGISTRATION NUMBER

 

63566314

 

 

COMPANY FILE NUMBER

 

2119022

 

 

MANAGEMENT

 

Managing Director:        Mr. Meher Deepak Kulkarni

Contact Person:            Mr. Kuldeep Singh

 

 

ISSUED SHARE CAPITAL

 

HK$10,000.00

 

 

SHAREHOLDERS

(As per registry dated 02-09-2015)

 

Name

 

No. of shares

Indiandirectory.HK Ltd., Hong Kong.

 

1

Aston Luxury Group Ltd., Hong Kong.

 

9,999

 

 

––––––

 

Total:

10,000

=====

 

 

DIRECTOR

(As per registry dated 10-07-2014)

 

Name

(Nationality)

 

Address

Meher Deepak KULKARNI

Flat No. 511, Block B-2, Lokbharati, Marol Maroshi Road, Andheri (E), Mumbai – 400059, India.

 

 

SECRETARY

(As per registry dated 10-07-2014)

 

Name

Address

Co. No.

Buttar Secretarial Services Ltd.

Unit 13, 16/F., Asia Trade Centre, 79 Lei Muk Road, Kwai Chung, New Territories, Hong Kong.

1906147

 

 

HISTORY

 

The subject was incorporated on 10th July 2014 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.

 

 

OPERATIONS

 

Activities:                      Jewellery Trader.

 

Lines:                           All kinds of jewellery and diamonds.

 

Employees:                  10.  (Including associates)

 

Commodities Imported: China, Europe, US, etc.

 

Group Turnover:            INR   93,772.90 million  (Year ended 31-03-2011)

INR 124,982.76 million  (Year ended 31-03-2012)

INR 164,184.96 million  (Year ended 31-03-2013)

INR 124,360.00 million  (Year ended 31-03-2014)

 

Markets:                        Asian countries, Middle East, Europe, etc.

 

Annual Turnover:           Un-reported.

 

Terms/Sales:                 L/C, T/T, etc.

 

Terms/Buying:               L/C, T/T, etc.

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:     HK$10,000.00

 

Group profit after tax:    INR 3,548.11 million  (Year ended 31-03-2011)

INR 4,872.51 million  (Year ended 31-03-2012)

INR 5,916.93 million (Year ended 31-03-2013)

INR 3,352.20 million (Year ended 31-03-2014)

 

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:                      Normal.

 

 

GENERAL

 

Having issued 10,000 ordinary shares of HK$1.00 each, Taipingyang Trading Ltd. is almost wholly owned by Aston Luxury Group Ltd. [Aston], a Hong Kong-registered firm also located at the same address.  The ultimate holding company Gitanjali Gems Ltd. [Gitanjali] is an India-based company.

 

The Hong Kong contact person Kuldeep Singh is an Indian.  He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.

 

The subject is trading in all kinds of jewellery products.

 

Aston is a wholly owned subsidiary of Gitanjali of India.  Gitanjali has acquired 100% stake in the subject for an undisclosed amount.  Gitanjali, a listed-firm in India, is a member of the Gitanjali Group [Group].

 

The Group acquired the subject that has strong distribution network to Hong Kong, China, Japan, the US, Middle East and Europe.

 

The Group also acquired a Chinese company that manufactures and distributes jewellery to the USA, Italy, Japan, the UK, the UAE, the Middle‑East and Australia.  This acquisition strengthened the Group’s international manufacturing base and facilitated access to the Chinese market.  It also enhanced the Group’s merchandising capabilities as well as the ability to capture additional profits.

 

The subject has an associated jewellery manufacturing unit in China and plans to set up jewellery retailing in that country.

 

The Group operates across the United States, the United Kingdom, Belgium, Italy and the Middle East, as well as in Thailand, Southeast Asia, China and Japan.  The bouquet of brands owned by the Group in Italy includes “Stefan Hafner”, “iO Si”, “Novelle Bague”, “Porrati” and “Valente”.  The Gitanjali Group also owns speciality retail chain in the United States under the brands of “Samuels” and “Rogers”.

 

Gitanjali is now a majestic figure in the global gems and jewellery industry. It is present in every major jewellery market of the world namely, the USA (which alone accounts for 30 % of the global jewellery market), India, Japan, China and the Middle-East.  Its appetite for innovation and for the enhancement of customer delight has swelled further.  It operates through 10 global offices and has 6 regional offices.  It employs over 6,000 people.

 

For the year ended 31st March, 2014, the revenue of the Group amounted to INR 124,360.00 million (2013: INR 164,184.96 million), decreased by 24.3% as compared with previous year.  Group profit after tax in the year amounted to INR 3,352.20 million (2013: INR 5,916.93 million), decreased by 43.3%.

 

The subject is fully supported by the Gitanjali Group.  History in Hong Kong is just over eight months.

 

On the whole, since the history of the subject is short in Hong Kong, consider it good for normal credit requirements on L/C basis or in small credit amounts.

 

 

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.63.37

UK Pound

1

Rs.98.86

Euro

1

Rs.69.97

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

               

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.