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MIRA
INFORM REPORT
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Report No. : |
489117 |
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Report Date : |
07.02.2018 |
IDENTIFICATION DETAILS
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Name : |
STS GEMS LIMITED |
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Registered Office : |
Room 506, 5/F., Tower A, Hunghom Commercial Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong |
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Country : |
Hong Kong |
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Date of Incorporation : |
02.05.1986 |
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Com. Reg. No.: |
10284458 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Diamond & Gemstone Trader all kinds of diamonds and gemstones |
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No. of Employees : |
8. |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Good |
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Payment Behaviour : |
Slow but Correct |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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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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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately 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 reexports, 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 continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.
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 aided a more rapid initial recovery 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 9.4% of total system deposits in Hong Kong by the end of 2015. 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 47.3 million in 2014, outnumbering visitors from all other countries combined. Mainland visitors to Hong Kong declined 3% in 2015 to approximately 45.7 million, reflecting an overall drop of 2.5% in total visitors to Hong Kong. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2015, mainland Chinese companies constituted about 51% of the firms listed on the Hong Kong Stock Exchange and accounted for about 62.1% 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. In 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, which took effect in March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies.
Credit expansion and a tight housing supply have caused Hong Kong property prices to rise rapidly; consumer prices increased 2.6% in 2016, but slowed to 2.0% in 2017. Lower- and middle-income segments of the population are increasingly unable to afford adequate housing.
Hong Kong’s economic integration with the mainland continues to be most evident in the banking and finance sector. Initiatives like the Hong Kong-Shanghai Stock Connect, the Mutual Recognition of Funds, and The Hong Kong Shanghai Gold Connect are all important steps towards opening up the Mainland’s capital markets and has reinforced Hong Kong’s leading role as China’s offshore RMB market. Additional connect schemes from bonds to commodities and other investment products are also under exploration by Hong Kong authorities.
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Source
: CIA |
Note
(Formerly located at:
Unit 614, 6/F., Heng Ngai Jewelry Centre,
4 Hok Yuen Street East, Hunghom,
Kowloon, Hong Kong.)
Company name and address
STS GEMS
LIMITED
ADDRESS: Room 506, 5/F., Tower A, Hunghom Commercial Centre, 39 Ma Tau Wai Road,
Hunghom, Kowloon, Hong Kong.
PHONE: 852-2367 5066
FAX: 852-2739 4982
E-MAIL: info@stsgems.com.hk
MANAGEMENT:
Managing Director: Mr. Sunil Agrawal
SUMMARY
Incorporated on: 2nd May, 1986.
Organization: Private Limited Company.
Issued Share Capital: HK$8,750,000.00
Business Category: Diamond & Gemstone Trader.
Group Revenue: INR 14,522.5 million (Year ended 31-03-2017)
Employees: 8. (Including associate)
Main Dealing Banker: Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Banking Relation: Good.
ADDRESS
Registered Head Office:-
Room 506, 5/F., Tower A, Hunghom Commercial Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong.
Holding Company:-
Vaibhav Global Ltd., India.
Associated Companies:-
Genoa Jewelers (St. Kitts) Ltd., West Indies.
Genoa Jewelers Ltd., British Virgin Islands.
Jewel Gem USA Inc., US.
PT STS Bali, Indonesia.
Shop LC, US.
STS Gems Japan Ltd., Japan.
STS Gems Thai Ltd., Thailand.
STS Gems USA Inc., US.
STS Holdings Ltd., Hong Kong.
STS Jewels Inc., US.
The Jewellery Channel Ltd., UK.
BUSINESS REGISTRATION NUMBER
10284458
COMPANY FILE NUMBER
0168685
MANAGEMENT
Managing Director: Mr. Sunil Agrawal
Contact Person: Ms. Lizzy Chan
ISSUED SHARE CAPITAL
HK$8,750,000.00 (87,500 fully paid ordinary shares)
SHAREHOLDER
(As per registry dated 02-05-2017)
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Name |
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No. of shares |
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Vaibhav Global Ltd. K-6B, Fateh Tiba, Adarsh Nagar Jaipur, Rajasthan-302005, India. |
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87,500 ===== |
DIRECTORS
(As per registry dated 02-05-2017)
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Name (Nationality) |
Address |
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Rizwan
ULLAH |
Flat E, 27/F., Tower 23, Ocean
Vista, Laguna Verde, Hunghom, Kowloon, Hong Kong. |
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Sunil
AGRAWAL |
Flat E, 27/F., Tower 23, Ocean
Vista, Laguna Verde, Hunghom, Kowloon, Hong Kong. |
SECRETARY
(As per registry dated 02-05-2017)
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Name |
Address |
Co. No. |
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Lodestar Secretaries Ltd. |
13/F., Wah Kit Commercial Centre, 302 Des Voeux Road
Central, Hong Kong. |
0113023 |
HISTORY
The subject was incorporated on 2nd May, 1986 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at ‘Unit 614, 6/F., Heng Ngai Jewelry Centre, 4 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong’, moved to the present address in September 2016.
Apart from these, neither material change nor amendment has been ever traced and noted.
OPERATIONS
Activities: Diamond & Gemstone Trader.
Lines: All kinds of diamonds and gemstones
Employees: 8. (Including associate)
Commodities
Imported: India, other Asian countries, etc.
Markets: Hong Kong, China, other Asian countries, Europe, etc.
Group Revenue: INR 9,305.6 million (Year ended 31-03-2013)
INR 13,333.1 million (Year ended 31-03-2014)
INR 13,884.5 million (Year ended 31-03-2015)
INR 12,935.7 million (Year ended 31-03-2016)
INR 14,522.5 million (Year ended 31-03-2017)
Terms/Sales: L/C or as per contracted.
Terms/Buying: As per contracted.
FINANCIAL INFORMATION
Issued Share Capital: HK$8,750,000.00 (87,500 fully paid ordinary shares)
Mortgage or Charge: (See attachment)
Group Net Profit/(Loss): (INR 856.1 million) (Year ended 31-03-2013)
INR 1,525.3 million (Year ended 31-03-2014)
INR 1,031.6 million (Year ended 31-03-2015)
INR 398.2 million (Year ended 31-03-2016)
INR 577.3 million (Year ended 31-03-2017)
Group Profit or Loss: Group business was profitable in past three years.
Condition: Keeping in a normal manner.
Facilities: Making rather active use of general banking facilities.
Payment: Slow but Correct.
Commercial Morality: Satisfactory.
Banker
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Bank of Baroda, Hong Kong Branch.
Standing: Normal.
GENERAL
STS Gems Limited is a wholly-owned subsidiary of Vaibhav Global Ltd. [Vaibhav/Group] which is an India-based firm. The old name of Vaibhav was Vaibhav Gems Ltd. Its name changed on 29th November, 2012.
Vaibhav has had a subsidiary known as STS Jewels Inc. The subject belongs to STS group of companies.
The subject is a gemstone trader. It is specialized in Tanzanite.
STS Group with headquarters in Austin, TX is amongst the well-known organizations in the colour gemstones and jewellery industry. Tanzanite Jewellery is STS Group’s specialty. So does the subject.
STS Group has a reservoir of over 1,800 skilled and trained employee worldwide. This includes resources in designing, manufacturing and distribution of jewellery and gemstones.
The subject has had an associated factory in Panyu District, Guangzhou City, Guangdong Province, China which is engaged in manufacturing all kinds of jewellery products and processing gemstones and diamonds.
Based in Rajasthan, India, Vaibhav is a listed firm in India. Incorporated in Jaipur, India in 1989, Vaibhav is today a professionally managed, end-to-end vertically integrated business organization.
Vaibhav started as a gemstone manufacturer and then in 1996-97, as a forward integration. It came out with IPO to establish a jewellery‑manufacturing unit for export of gem-studded gold jewellery. First unit was set up at Adarsh Nagar Jaipur in 1997. In the year 1999, it set up a 100% Export Oriented Unit at Export Promotion Industrial Area, Sitapura, Jaipur. In 2002 it installed an Italian micro-weight gold chain manufacturing plant.
The subject is engaged in outsourcing products for the Group and also marketing jewellery products throughout the world.
The subject is one of the key members of the STS Group.
STS Group with headquarters in Austin, TX (STS Jewels Inc.) is amongst the better-known organizations in the colour gemstones and jewellery industry. Tanzanite Jewellery is STS Group’s specialty.
Besides the subject, STS Group has an extensive Product Development team and infrastructure spread over New York, Bangkok and India.
From a humble beginning, the group has steadily expanded to be one of the most vertically integrated jewellery companies in the world. Today, the group has four plants in India and Thailand engaged in gemstone cutting and jewellery manufacturing, using casting and stamping operations. The latest addition is a state of art micro-weight rope chain manufacturing plant.
For the year ended 31st March, 2017, the revenues of the Group amounted to INR 14.5 billion (2016: INR 12.9 billion), increased by 12.4%. The net profit of the Group was INR 577.3 million (2016: Net Profit was INR 398.2 million), increased by 45.0%.
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 Diamond, Gem & Pearl Show 2018” which will be held in Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the period of 27th February to 3rd March, 2018. Its booth No. is AWE 9-H13.
The subject is fully supported by the Group. History in Hong Kong is over 31 years and nine months.
The subject is fully supported by the Group.
The director of the subject Mr. Sunil Agrawal is also the Chairman of the Group.
On the whole, consider the subject good for normal business engagements.
REMARK
Brief personal profile of the principal director:
Mr. Sunil Agrawal is the chairman of the Vaibhav Group of companies which is the parent company of STS Jewels Inc. Being a native of Jaipur, India, Agrawal received his Bachelor’s Degree from the University of Rajasthan in India, and his Executive MBA from Columbia University, New York. He founded the Vaibhav Group of companies in 1980 in Jaipur, India, and it remains one of the world’s few fully integrated jewellery companies. Agrawal has been instrumental in commercialization of gemstones such as Tanzanite, Pink Tourmaline, and Fire Opal and in the development of the Tanzanite Protocol, the voluntary code of conduct for the gemstone trade. He is a board member and past president of the Indian Diamond & Colored Gemstone Association.
MORTGAGE OR CHARGE
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Date |
Particulars |
Amount |
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25-07-2006 |
Instrument: Memorandum Property: Distinctive TD
1065 14-07-2006 120,285.00 16-10-2006 TD
1077 21-07-2006
80,000.00 23-10-2006 Mortgagee: Bank of Baroda, Hong Kong Branch. |
Loan or credit or other facilities |
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27-09-2007 |
Instrument: Memorandum Property: Distinctive 91220300000036 15-07-2007 US$126517.03 15-10-2007 91220300000054 22-07-2007 US$84144.84 20-10-2007 Mortgagee: Bank of Baroda, Hong Kong Branch. |
Loan or credit or other facilities |
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22-04-2010 |
Instrument: Memorandum Property: No.
of Receipts Date of
Issue Amount Due Date 91220300000036 03-01-2010 US$136,328.00 01-01-2011 91220300000367 06-10-2009 US$270,660,07 05-10-2010 91220300000379 27-10-2009 US$42,884,75 26-10-2010 91220300000975 12-07-2009 US$65,284.01 11-07-2010 Mortgagee: Bank of Baroda, Hong Kong Branch. |
Loan or credit or other facilities |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.72 |
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1 |
INR 89.72 |
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Euro |
1 |
INR 79.52 |
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HKD |
1 |
INR 8.20 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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VIV |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.