MIRA
INFORM REPORT
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Report Date : |
01.10.2011 |
IDENTIFICATION DETAILS
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Name : |
APP ENTERPRISES CO. |
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Registered Office : |
Flat C, 15/F., Block 1, Prosperous Garden, 3 Public Square Street,
Yau Ma Tei, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
16.03.2011 |
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Com. Reg. No.: |
53846497-000-03 |
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Legal Form : |
Sole Proprietorship |
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LINE OF BUSINESS : |
IMPORTER,
EXPORTER AND WHOLESALER OF DIAMOND AND JEWELLERY, ELECTRONIC PRODUCTS, ETC. |
RATING & COMMENTS
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MIRA’s Rating : |
NB |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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-- |
NB |
New Business |
-- |
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Status : |
New Company |
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Payment Behaviour : |
Unknown |
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Litigation : |
-- |
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 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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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 and address
APP ENTERPRISES
CO.
ADDRESS:
Flat C, 15/F., Block 1, Prosperous Garden, 3 Public Square Street,
Yau Ma Tei, Kowloon, Hong Kong.
PHONE: Not available
FAX: Not available
MANAGEMENT
Manager: Ms. Sarita Agarwal
SUMMARY
Establishment: 16th
March, 2011.
Organization: Sole
Proprietorship.
Capital:
Not
disclosed.
Business Category: Importer, Exporter and Wholesaler.
Employees:
Nil.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Too
early to comment.
ADDRESS
Head Office:-
Flat C, 15/F., Block 1, Prosperous Garden, 3 Public Square Street,
Yau Ma Tei, Kowloon, Hong Kong.
Associated Company:-
Ramadon International Pte. Ltd.
#45-15, International Plaza, 10 Anson Road, Singapore 079903.
BUSINESS REGISTRATION NUMBER
53846497-000-03
MANAGEMENT
Manager: Ms. Sarita Agarwal
SOLE PROPRIETOR
Name: Ms. Sarita AGARWAL
Residential Address: #45-15,
International Plaza, 10 Anson Road, Singapore 079903.
HISTORY
The subject was established on 16th March, 2011 as a sole proprietorship
concern owned by Ms. Sarita Agarwal 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: Diamond and Jewellery,
electronic products, etc.
Employees: Nil.
Commodities Imported: India, other Asian countries, etc.
Markets: Hong Kong, Singapore, etc.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C,
pre-payment, etc.
FINANCIAL INFORMATION
Capital: Not disclosed.
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: Too early to comment.
Banker:
The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong.
Standing:
Small.
GENERAL
APP Enterprises Co. was established in March 2011 as a sole
proprietorship owned by Ms. Sarita Agarwal.
She is an India businesswoman.
Sarita Agarwal is the Manager of the subject.
The subject’s telephone number and fax number have not registered with
local telephone company nor listed on telephone directories.
The subject does not have its own operating office. Its registered address is in a private
building located at Flat C, 15/F., Block 1, Prosperous Garden, 3 Public
Square Street, Yau Ma Tei, Kowloon, Hong Kong.
This is supposed to be residence of Sarita Agarwal when she is in Hong
Kong. The residential building is not
trespassed by outsiders. The subject has
no employees in Hong Kong.
The subject is a diamond and jewellery importer, exporter and
wholesaler. Besides, it is a commission
agent and a general trader. It also
trades in other commodities such as electronic products, telecommunication
products, etc. as entrusted by customers.
The subject has had an associated company in Singapore known as Ramadon
International Pte. Ltd. [Ramadon].
Ramadon is operated by Mr. Giri Agarwal, Ms. Sarita Agarwal and her son
Mr. Swastik Agarwal. Ramadon is engaged
in the same lines of business as the subject.
Ramadon is also a consultant company in Singapore.
The subject is trading in loose, polished and cut diamonds. Most of the commodities are imported from
India. Prime markets are Hong Kong,
Singapore and the other Asian countries.
Business is still under development.
The subject is just a one-person company. Business is chiefly handled by Sarita Agarwal
herself. History in Hong Kong is just
over six months.
Since the registered office of the subject is in a residential building
and history is short, on the whole, consider it good for normal business
engagements on L/C basis.
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
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.48.92 |
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|
1 |
Rs.76.52 |
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Euro |
1 |
Rs.66.64 |
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.