MIRA INFORM REPORT

 

 

Report Date :           

29.09.2011

 

IDENTIFICATION DETAILS

 

Name :

HONG  KONG  CAPITAL  CO.

 

 

Registered Office :

Flat J, 3/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

14.04.1994

 

 

Com. Reg. No.:

17986419-000-04

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Manufacturer, Importer and Exporter of all kinds of diamonds and jewellery products, emerald, precious stones, etc.

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Small Company 

 

 

Payment Behaviour :

Regular

 

 

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 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

Hong Kong

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

HONG  KONG  CAPITAL  CO.

 

 

Company ADDRESS

 

Flat J, 3/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon, Hong Kong.

PHONE:            2311 2102

FAX:                 2721 0173

 

 

MANAGEMENT

 

Manager:  Mr. Rajendrakumar Jayantilal Soni

 

 

SUMMARY

 

Establishment:                          14th April, 1994.

 

Organization:                 Sole Proprietorship.

 

Capital:                         Not disclosed.

 

Business Category:        Diamond Trader.

 

Employees:                   Nil.

 

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

 

Banking Relation:           Satisfactory.

 

Company ADDRESS

 

Head Office:-

Flat J, 3/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon, Hong Kong.

 

P.O. Box 86249, Gillies Avenue Post Office, Kowloon, Hong Kong.

 

Affiliated Company:-

Ronak Gems, Hong Kong.  (Same address and same owner)

 

 

BUSINESS REGISTRATION NUMBER 

 

17986419-000-04

 

 

MANAGEMENT

 

Manager:                       Mr. Rajendrakumar Jayantilal Soni

 

 

SOLE PROPRIETOR

 

Name:                           Mr. Rajendrakumar Jayantilal SONI

Residential Address:      14/F., Front Portion, Ocean View Court, 25 Chatham Road, Tsimshatsui, Kowloon, Hong

Kong.

 

 

HISTORY

 

The subject was established on 14th April, 1994 as a sole proprietorship concern owned by Mr. Kamlesh Jivanbhai Shah under the Hong Kong Business Registration Regulations.

The following table shows the changes of the partners:-

Name

Incoming Date

Outgoing Date

Kamlesh Jivanbhai SHAH

14-04-1994

18-07-2001

Rajendrakumar Jayantilal SONI

01-08-1994
10-10-2001

04-09-1994
-

Abdul Samad Ibrahim SOLKAR

01-08-1994

20-08-1995

Prakash Kirtilal MEHTA

17-07-2001

11-10-2001

 

Initially the subject’s registered address was located at Unit D & E, 16/F., Cameron Plaza, 23-25A Cameron Road, Tsimshatsui, Kowloon, Hong Kong, moved to Room 108, 1/F., Wing On Plaza, 62 Mody Road, Tsimshatsui East, Kowloon, Hong Kong in September 1998; to Flat 7 & 8, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong in May 2004; to 14/F., Front Portion, Ocean View Court, 25 Chatham Road, Tsimshatsui, Kowloon, Hong Kong where is the residential address of the sole proprietor in July 2004; to Flat B, 7/F., Golden Mansion, 83-85 Chatham Road, Tsimshatsui, Kowloon, Hong Kong in August 2005; to Flat F, 26/F., Block 1, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon, Hong Kong in July 2007; to Flat D, 18/F., Block 1 of the same building in July 2008; to Flat G, 3/F., Block 2 of the same building in December 2009; and further moved to Flat J, 3/F., Block 2 of the same building in January 2010.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Manufacturer, Importer and Exporter.

 

Lines:                           All kinds of diamonds and jewellery products, emerald, precious stones, etc.

 

Employees:                   Nil.

 

Raw Materials:               India, Belgium, other European countries, etc.

 

Markets:                       Hong Kong, other Asian countries, North America, Western Europe, etc.

 

Terms/Sales:                 COD or as per contracted.

 

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

 

 

FINANCIAL INFORMATION

 

Capital:                         Not disclosed.

 

Profit or Loss:                Making a small profit every year.

 

Condition:                      Keeping in a normal manner.

 

Facilities:                      Making fairly active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

·         The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

·         DBS Bank (Hong Kong) Ltd., Hong Kong.

 

Standing:  Small.

 

 

GENERAL

 

Hong Kong Capital Co. is a sole proprietorship owned and operated by Rajendrakumar Jayantilal Soni who is an Indian.  Soni retired from the subject in September 1994 but joined in again in October 2001.  Now, the subject is still controlled by him.  He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.

The subject’s registered address is located at Flat J, 3/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon, Hong Kong.  This office is not in a commercial building but a residential building.  It is likely that Soni has moved to this new address but does not make any amendments on the subject’s registration materials.  It seems that the subject’s operating address is also Soni’s residential address.  The residential building is not trespassed by outsiders.  Soni moved to this new address in January 2010.

The subject has no employees in Hong Kong.

The subject is a diamond and gemstone trader.  It is dealing in fine coloured diamonds and rare gemstones.  Products include fancy coloured diamonds, unusual rose cut and briolette cut diamonds and all kinds of loose diamonds.

Diamonds and gemstones are imported from India, Belgium and other European countries, etc.  Some of the commodities are polished diamonds.  Polished and cut diamonds are exported or re-exported to Japan, other Asian countries, Europe, the Middle East and North America.  Business is rather active.

The subject is just a one-man company.  Keeping a balance account or making a very small profit in most of the past years.

Soni is also the sole proprietor of another diamond trading firm known as Ronak Gems.  This firm was set up on 30th October, 1989 and also located at the above-mentioned address.  Ronak Gems and the subject are engaged in the same lines of business.

On the whole, since the history of the subject in Hong Kong is over seventeen years, consider it good for normal business engagements.

 

COURT CASES:            None per our.

 

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.

-          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.

-          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 –

 

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.

-          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

Indian Rupees

US Dollar

1

Rs.48.91

UK Pound

1

Rs.76.53

Euro

1

Rs.66.43

 

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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