REVISED REPORT
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Report Date : |
14.04.2012 |
IDENTIFICATION DETAILS
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Name : |
H.K.
IMPEX |
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Registered Office : |
Room 704, 7/F., Block 4, Chevalier House, |
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Country : |
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Date of Incorporation : |
01.01.2002 |
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Com. Reg. No.: |
32290536-000-01 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer and Exporter of all kinds of diamonds and jewellery, etc. |
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No. of Employee: |
5 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 30th, 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 |
H.K. IMPEX
Room 704, 7/F., Block 4, Chevalier House, 45-51 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2367 8114, 2724 6530, 3741 2290
FAX: 2368 7147
E-MAIL: info@hkimpex.com
Manager: Mr. Bhagwanji Virji Lunagaria
Establishment: 1st January, 2002.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond Importer and Exporter.
Annual Sales Turnover: US$25 - 30 million.
Employees: 5.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Room 704, 7/F., Block 4, Chevalier House, 45-51 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
Hari Krishna Group of Companies
· H.K. Designs (India) Seepz Unit, India.
· H.K. Designs Inc., USA.
· H.K. Diam BVBA, Belgium.
· H.K. Exports (Shanghai) Ltd., China.
· H.K. International, USA.
· H.K. Jewels Pvt. Ltd., India.
· Hari Krishna Exports, India.
etc.
32290536-000-01
Manager: Mr. Bhagwanji Virji Lunagaria
Contact Persons: Mr. Mukesh Dholakiya
Mr. Bhagwanji Patel
Name: Mr. Bhagwanji Virji LUNAGARIA
Residential Address: B-241 Ambikanagar Society, 099 Aarogya Kendra, Katargam, Surat, Gujarat, India.
The subject was established on 1st January, 2002 as a partnership concern jointly owned by Mr. Urveshi Kirtikant Maniyar and Mr. Bhagwanji Virji Lunagaria under the Hong Kong Business Registration Regulations.
The following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Urveshi Kirtikant MANIYAR |
01-01-2002 |
28-09-2004 |
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Bhagwanji Virji LUNAGARIA |
01-01-2002 |
- |
|
Mukeshkumar G. DHOLAKIYA |
07-08-2002 |
05-08-2003 |
At the very beginning, the subject was located at Flat E, 11/F., Luna Court, 53-59 Kimberly Road, Tsimshatsui, Kowloon, Hong Kong, moved to Room 1603, 16/F., Winfield Commercial Building, 6-8A Prat Avenue, Tsimshatsui, Kowloon, Hong Kong in December 2002, moved to Room 1011, 10/F., Peninsula Square, West Wing, 18 Sung On Street, Hunghom, Kowloon, Hong Kong in October 2005, and further to the present address in August 2011.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer and Exporter.
Lines: All kinds of diamonds and jewellery, etc.
Employees: 5.
Commodities Imported: India, other Asian countries, Europe, etc.
Markets: Asia Pacific region, Middle East, Australia, New Zealand, US, Europe, etc.
Annual Sales Turnover: US$25 - 30 million.
Terms/Sales: As per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Capital: Not disclosed.
Profit or Loss: Making a small profit every year.
Condition: Keeping in a normal condition.
Facilities: Making active use of general banking facilities.
Payment: Met obligations as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
H.K. Impex is a Hong Kong based company engaged in jewellery and diamond business. The subject moved to the present address in August 2011.
Business commenced on 1st January, 2002, the subject is a sole proprietorship owned by Mr. Bhagwanji Virji Lunagaria who is an Indian. Having been in Hong Kong for a very long time, he is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.
The subject is a diamond trader. It is able to offer its worldwide customers with international standard diamonds. Its prime markets are the Asia Pacific region, the Middle East, Australia, New Zealand, the United States, Europe, etc.
The subject is a marketing affiliate of m/s. Hari Krishna Exports which is in Mumbai, India. The subject belongs to the Hari Krishna Group.
According to the subject, Hari Krishna Exports has been engaged in diamond business since 1983.
The Group has more than 6,000 workers spread over seven factories located in the diamond city of Surat, India and with its marketing office in Mumbai, India. The factories and office, operated by the Hari Krishna Group, are able to cut and polish all kinds of diamonds and export its products to worldwide countries. It is specialized in “white colour and round cut” for all sizes.
The Hari Krishna Group is a diamond cutter and polisher. Its flagship company Hari Krishna Exports was set up in 1992 at Surat in India with a simultaneous opening of sales and marketing office in Mumbai, the hub of polished diamond trade. Ever since then, it has been at the cutting edge of trade, setting trends in the field of manufacturing and exporting of diamonds and studded jewellery.
Hari Krishna Group procures rough diamonds from various producers of Russia, South Africa, Canada, and other agencies of Antwerp. Rough diamonds are brought to its Surat and Ahmedabad manufacturing plants where they are cut and polished into different shapes, sizes and weight. The Group’s diamonds are usually in round brilliant cut [RBC] in whites. All the polished goods are sent to Mumbai office where the Group’s sales office and assort departments are located. After the assortment has been done, goods are being sold and exported to various clients throughout the world.
Hari Krishna Group has got the ISO 9001:2000 certificate from ABS Quality Evaluations Inc. It is also a “Three Star Export House” recognized by the Government of India. From 2005 to 2010, the Gem and Jewellery Export Promotion Council in India had awarded the Group with certificates for its good export performance.
The Group’s products are exported to the United States, Japan, Israel, the United Kingdom, Belgium, Australia, New Zealand, the United Arab Emirates, and some of the European countries.
H.K. International, the first overseas marketing alliance of Hari Krishna Group, was set up in 1999 in New York. It is dealing in diamonds ranging from 0.50 pts to 5.00 cts. and also in stones duly certified by GIA and EGL.
The Group’s ventures include jewellery manufacturing facilities in Mumbai: H.K. Jewels and H.K. Designs (India).
In 2005, the subject launched “Kisna” branded diamond jewellery for the Indian market. “Kisna” is the only branded diamond jewellery that is available in more than 1,015 jewellery outlets in India.
In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Hong Kong, China and other foreign large cities.
The subject has got affiliated companies known as H.K. Designs (India) Seepz Unit and H.K. Jewels Pvt. Ltd. in India. Its affiliated company in China is known as H.K. Exports Shanghai Ltd.
The contact persons of the subject are Mr. Mukesh Dholakiya and Mr. Bhagwanji Patel.
The Hari Krishna Group achieved a turnover of US$250 million for the fiscal year 2007-2008. Now, the annual sales turnover of the Group ranges from US$250 to 270 million. Overall business is active.
The annual sales turnover of the subject ranges from US$25 to 30 million. Business is profitable.
The history of the subject in Hong Kong is over nine years and nine months.
On the whole, fully supported by the Hari Krishna Group, the subject is considered good for normal business engagements.
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 |
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US Dollar |
1 |
Rs.51.42 |
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UK Pound |
1 |
Rs.81.93 |
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Euro |
1 |
Rs.67.67 |
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.