|
Report Date : |
17.08.2012 |
IDENTIFICATION DETAILS
|
Name : |
PRESTO
TRADE |
|
|
|
|
Registered Office : |
Flat F, 13/F., Winner Building, 36 Man Yue Street, Hunghom, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
01.06.1991 |
|
|
|
|
Com. Reg. No.: |
14592962-000-06 |
|
|
|
|
Legal Form : |
Partnership Concern |
|
|
|
|
Line of Business : |
Importer and Exporter of all kinds of diamonds, jewellery, etc. |
|
|
|
|
No. of Employees : |
05. (Including
associate) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
|
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, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
PRESTO TRADE
Flat F, 13/F., Winner Building, 36 Man Yue Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2311 5480; 2311 5481; 2311 5482
FAX: 2721 4630; 2311 5485
E-MAIL: prestotrade@gmail.com
Manager: Mr. Varshit Jain
Establishment: 1st June, 1991.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Jewellery Trader.
Employees: 5. (Including associate)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Flat F, 13/F., Winner Building, 36 Man Yue Street, Hunghom, Kowloon, Hong Kong.
Associated
Companies:-
King Sun Trading
Flat A, 11/F., Austin Mansion, 15A Austin Avenue, Kowloon, Hong Kong.
Smart Art Jewellery, Hong Kong. (Same address)
Splendor Diagem Ltd.,
Hong Kong.
[Formerly known as Presto Trade Ltd.]
(Same address)
14592962-000-06
Manager: Mr. Varshit Jain
Name: Praveen Raghunath LODHA
Residential Address: 164/72
Soi Puttha Osot, New Road, Bangrak, Bangkok 10500, Thailand.
Name: Varshit JAIN
Residential Address: Flat
A, 9/F., Kok Pah Mansion, 58-60 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 1st June, 1991 as a sole proprietorship concern owned by Mr. Praveen Raghunath Lodha under the Hong Kong Business Registration Regulations.
The following table
shows the changes of the subject’s partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Praveen Raghunath LODHA |
01-06-1991 |
- |
|
Vivek SACHETI |
01-08-1992 |
28-02-2003 |
|
Dharmendra MUTHA |
01-03-2003 |
31-08-2005 |
|
Varshit JAIN |
15-08-2005 |
- |
Initially the subject was located at Flat K, 9/F., Far East Mansion, 5-6 Middle Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat 04A, 9/F., Lee Wai Commercial Building, 1-3 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong in January 1997; to Flat B4, 12/F., Prat Mansion, 26-36 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong in January 1999; to Flat B, 13/F., Kok Pah Mansion, 58-60 Cameron Road, Tsimshatsui, Kowloon, Hong Kong in October 1999; to Room 1504, 15/F., Tung Shun Hing Commercial Centre, 20-22 Granville Road, Tsimshatsui, Kowloon, Hong Kong in November 2005; and further moved to the present address in July 2009.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer and Exporter.
Lines: All kinds of diamonds, jewellery, etc.
Employees: 5. (Including associate)
Commodities Imported: India, Belgium, Israel, Thailand, US, etc.
Markets: Hong Kong, Japan, India, the Middle East, Europe, North America, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Capital: Not disclosed.
Profit or Loss: Making a small profit every year.
Condition: Keeping in an active condition.
Facilities: Making active use of general banking facilities.
Payment: Met obligations as contracted.
Commercial Morality: Satisfactory.
Banker: Indian Overseas Bank, Hong Kong Branch.
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
Presto Trade is a partnership jointly owned by Mr. Praveen Raghunath Lodha and Mr. Varshit Jain. Both of the partners are Indian while the latter joined in the subject on 15th August, 2005.
The subject moved to the present address in July 2009 where is an industrial building.
The subject is trading in all kinds of diamonds, etc. It is trading in loose diamonds, white baguette diamonds and other types of baguette diamonds, rounds, princess cuts, marquises, pears, etc.
Commodities are imported from India, Belgium, Israel, Thailand, the United States, etc. Finished products are exported to Japan, India, Thailand, the Middle East, Europe, the United States, etc. Business is rather active and steady.
Lodha had lived in Thailand for a long time and has established business ties with many diamond firms in Bangkok. He moved to Hong Kong and joined in the subject in June 1991. Currently, many of the diamond firms in Thailand are the subject’s main business partners.
The subject’s partner and manager Jain is also the Manager of King Sun Trading which is also a jewellery product trader. King Sun Trading is a sole proprietorship set up on 29th September, 2006 and owned by Jain. However, King Sun Trading does not have its own operating office. Its registered address is in the residence of Jain.
The subject’s business is chiefly handled by the two partners.
Mr. Dharmendra Mutha was a partner of the subject who retired on 31st August, 2005. Before retiring from the subject, Dharmendra Mutha set up a diamond trading firm known as Shrey International on 16th July, 2005. Registered in Hong Kong, Shrey International is located at a different address while Dharmendra Mutha is the sole proprietor.
The subject has got an associated company Splendor Diagem Ltd. Located at its operating address. Splendor Diagem Ltd. Is engaged in the same lines of business as the subject.
Another associated company Smart Art Jewellery [Smart Art], a Hong Kong‑registered firm, is also located at the same address. Smart Art is a jewellery and diamond trader. Its main products are Sapphire Necklaces, 18K white gold necklace, diamond necklaces, jewellery necklaces, etc.
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 Jewellery Show 2013” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th to 9th March, 2013.
Smart Art will also take part in the above-mentioned exhibition in 2013.
As the history of the subject in Hong Kong is over twenty-one years, on the whole, consider it good for normal business engagements.
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.55.98 |
|
UK Pound |
1 |
Rs.87.55 |
|
Euro |
1 |
Rs.68.69 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.