MIRA INFORM REPORT
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Report Date : |
06.12.2011 |
IDENTIFICATION DETAILS
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Name : |
SIA IMPEX |
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Registered Office : |
Flat K, 5/F., The Harbour Place, Tower 2, 8 Oi King Street, Hunghom,
Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
24.02.2009 |
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Com. Reg. No.: |
50305632-000-02 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
IMPORTER, EXPORTER AND WHOLESALER OF ALL KINDS OF
DIAMONDS AND JEWELLERY |
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No. of Employees : |
Not Available |
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 – September 30, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Hong Kong |
A2 |
A2 |
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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 |
Company name
SIA IMPEX
Company address
Flat K, 5/F., The Harbour
Place, Tower 2, 8 Oi King Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2301 4999
FAX: 2301 4998
MANAGEMENT
Manager: Mr. Nikhil Lalit Sheth
SUMMARY
Establishment :
24th February, 2009.
Organization : Sole Proprietorship.
Capital : Not disclosed.
Business
Category : Diamond Trader.
Employees :
Nil.
Main Dealing
Banker : Hang Seng Bank Ltd.,
Hong Kong.
Banking Relation
: Satisfactory.
COMPANY ADDRESS
Head Office
Flat K, 5/F., The Harbour
Place, Tower 2, 8 Oi King Street, Hunghom, Kowloon, Hong Kong.
Associated/Affiliated Companies
ANS Exports, Hong
Kong.
Hans Impex, Hong
Kong. (Same owner and same address)
L D Sheth (HUF),
India.
Likin Gems Pvt.
Ltd., India.
Nihkil
Corporation, India.
Viva Int’l Co.
(HK) Ltd., Hong Kong.
BUSINESS REGISTRATION NUMBER
50305632-000-02
MANAGEMENT
Manager: Mr. Nikhil Lalit Sheth
SOLE PROPRIETOR
Name: Mr. Nikhil Lalit SHETH
Residential Address:
Flat K, 5/F., The Harbour Place, Tower 2, 8 Oi King Street, Hunghom, Kowloon,
Hong Kong.
HISTORY
The
subject was established on 24th February, 2009 as a sole proprietorship concern
owned by Mr. Nikhil Lalit Sheth under the Hong Kong Business Registration
Regulations.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
OPERATIONS
Activities : Importer, Exporter and Wholesaler.
Lines : All kinds of diamonds and jewellery.
Employees : Nil.
Commodities
Imported : India, other Asian
countries, Belgium, Israel, etc.
Markets : Southeast Asia, North America, Europe,
etc.
Terms/Sales : L/C, T/T, etc.
Terms/Buying
: L/C, T/T, D/P, etc.
FINANCIAL INFORMATION
Capital: Not disclosed.
Profit or Loss: Kept a balance account in 2010.
Condition: Business is under development.
Facilities: Making fairly active use of
general banking facilities.
Payment: Met
trade commitments as required.
Commercial
Morality: Satisfactory.
Banker: Hang
Seng Bank Ltd., Hong Kong.
Standing: Small.
GENERAL
Sia
Impex is a sole proprietorship set up and owned by Mr. Nikhil Lalit Sheth who
is an Indian. He is a Hong Kong ID Card holder
and has got the right to reside in Hong Kong permanently.
Business
commenced in February 2009, the subject does not have its own operating
office. Its operating office is in the
residence of Nikhil Lalit Sheth in Hong Kong.
Business seems not very active.
Nikhil
Lalit Sheth is operating two more firms, Viva Int’l Co. (HK) Ltd. [Viva] and
Hans Impex. Viva is located at Flat
F2-03, 2/F., Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom,
Kowloon, Hong Kong while Hans Impex is located at the same address as the
subject.
The
subject is engaged in the same lines of business as Viva which was incorporated
on 27th April, 2007 while Hans Impex was established on 2nd March, 2009.
The
subject is a diamond importer, exporter and wholesaler. It is trading in loose diamonds, emerald,
precious stones, ruby jade, gem sets, semi-precious stones, blue or coloured
sapphire, Tanzanite, jewellery, etc. Raw
materials are imported from India, Belgium and other European countries,
etc. Some of the rough diamonds are
polished or processed in Hong Kong.
Finished products and polished diamonds are marketed in Hong Kong,
exported or re‑exported to Japan, India, other Asian countries, North
America, Europe, etc.
Currently,
it has had three affiliated companies in India, namely, Likin Gems Pvt. Ltd.
[Likin Gems], Nikhil Corporation and L D Sheth (HUF).
Likin
Gems was established in the year 1958 under the leadership of Mr. Lalit Sheth
and the guardianship of his father Mr. D. K. Sheth who was a well renowned
character in the diamond business. Now,
Likin Gems is run by Mr. Nikhil Lalit Sheth who is the third generation of
the Sheth family.
Mr.
D. K. Sheth, father of Mr. Nikhil Lalit Sheth, successfully managed the family
business of gems, diamonds and jewellery with their manufacturing units in
Palanpur, Surat, Ahmedabad and Gujarat District much before the family decided
to diversify and also venture into the business of trading in diamonds under
the name of Likin Gems founded by Mr. Nikhil Lalit Sheth.
Likin
Gems is a member of the Gem and Jewellery Export Promotion Council which is a
well renowned body for the exports of cut and polished diamonds from India
specially promoted by the Government of India and approved by the Reserve Bank
of India as well. Likin Gems exports its
products to the United States, Europe, Mauritius, Sri Lanka, other Asian
countries, etc.
The
subject’s history in Hong Kong is just over two years and nine months.
The
subject is fully supported by Likin Gems and the Sheth family.
On
the whole, since the subject does not have its own operating office and has no
employees in Hong Kong, consider it good for business engagements on L/C basis.
REMARKS
Property
information of associate:-
Property Location:
Flat K on 5/F. of Tower 2, The Harbour Place, 8 Oi King Street, Kowloon, Hong
Kong.
Owner: Viva Int’l Co. (HK) Ltd.
Date of
Purchase: n.a.
Purchased
Price: n.a.
Incumbrances:-
|
Date of
Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
11-09-2008 |
- |
Hang Seng 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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The diamond jewellery industry in India today may be more
than Rs 60000 mil and is rated amongst the fastest growing in the world.
Indi ranks third in the world in domestic diamond consumption.
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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 –
DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of losing
Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months
ago, they had not repaid these dues. Bankers believe many diamantaires
borrowed money during the economic downturn two years ago and diverted funds to
businesses like real estate and capital markets. Many of themselves made money
from these businesses but their diamond companies have gone sick and declared
insolvency.
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Most of the money borrowed from the banks in the name
of their diamond business has been diverted in real estate and the share
market. The banks are not in a position to seize their properties because in
many cases, these were purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.51.39 |
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UK Pound |
1 |
Rs.80.20 |
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Euro |
1 |
Rs.68.92 |
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.