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Report Date : |
07.12.2012 |
IDENTIFICATION DETAILS
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Name : |
BHAVANI
HONG KONG LTD. |
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Registered Office : |
Room 404, 4/F., Chevalier House, |
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Country : |
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Date of Incorporation : |
16.03.2006 |
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Com. Reg. No.: |
36549048 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products, emerald, precious stones, etc. |
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No. of Employees : |
07 employees |
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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 |
Hong Kong - ECONOMIC OVERVIEW
Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's exports by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 28 million in 2011, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Growth slowed to 5% in 2011. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.
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Source : CIA |
BHAVANI HONG KONG LTD.
Room 404, 4/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2368 4330
FAX: 2368 6979
E-MAIL: alpesh@bhavanihk.com
Managing Director: Mr. Alpesh Manubhai Ahir (Mobile: 6305 2889)
Incorporated on: 16th March, 2006.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10,000.00
Business Category: Importer, Exporter and Wholesaler.
Annual Turnover: HK$60~65 million.
Employees: 7.
Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 404, 4/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
Headquarters:-
Bhavani Gems
101, Prasad Chambers, M. P. Marg, Opera House, Mumbai-400004, India.
[Tel: 91-22-2367 9521, 4034 9500 (100 lines)
Fax: 91-22-2363 3538
E-mail: info@bhavanigems.com ]
Associated
Companies:-
Instyle Jewellery, India.
Star Diam LLC, USA.
Super Diam B.V.B.A., Belgium.
Yin Po Company, Hong Kong.
36549048
1030955
Managing Director: Mr. Alpesh Manubhai Ahir
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
(As per registry
dated 16-03-2012)
|
Name |
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No. of shares |
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Alpesh Manubhai AHIR |
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2,500 |
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Samir Ravjibhai KHADELA |
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7,500 |
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–––––– |
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Total: |
10,000 ===== |
(As per registry
dated 16-03-2012)
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Name (Nationality) |
Address |
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Alpesh Manubhai AHIR |
Flat B, 7/F., Kiu Yip Building, 26-28 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong. |
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Samir Ravjibhai KHADELA |
Quinten Matsijslei 37 Bus 17, 2018 Antwerpen, Belgium. |
(As per registry
dated 16-03-2012)
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Name |
Address |
Co. No. |
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Vinford Ltd. |
Room 1707, 17/F., Wellborne Commercial Centre, 8 Java Road, North Road, Hong Kong. |
0346328 |
The subject was incorporated on 16th March, 2006 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room 1206, 12/F., Hang Seng Tsim Sha Tsui Building, 18 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address with effect from 2nd June, 2010.
The subject changed its shareholders and equities.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds and jewellery products, emerald, precious stones, etc.
Employees: 7.
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan, India, other Asian countries, etc.
Annual Turnover: HK$60~65 million.
Terms/Sales: L/C, T/T, D/P, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
Mortgage or
Charge:-
Date of Mortgage: 30-04-2010
Amount: All moneys
Property: 98/19,060th parts or shares of and in The Remaining Portion of Kowloon Inland Lot No. 7072 and
Kowloon Inland Lot No. 8670, 8567 & 7074 (Unit 4 on 4/F. of Chevalier House, 45‑51 Chatham Road South, Kowloon, Hong Kong.)
Mortgagee: Hang Seng Bank Ltd., Hong Kong.
Profit & Loss: Making a small profit in the past three years.
Condition: Business is normal.
Facilities: Adequate for current running.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
l Hang Seng Bank Ltd., Hong Kong.
l The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong.
Standing: Normal.
Having issued 10,000 ordinary shares of HK$1.00 each, Bhavani Hong Kong Ltd. was equally owned by and Mr. Khadela Samir. Both of the shareholders were Indian. They were also directors of the subject.
Now, the shareholders of the subject have been reshuffled. It is jointly owned by Alpesh Manubhai Ahir, holding 25% interests; and Samir Ravjibhai Khadela, holding 75%. They are also directors of the subject.
The first is residing in Hong Kong while the latter is an India passport holder but residing in Belgium.
The subject’s Managing Director Mr. Alpesh Manubhai Ahir has 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 trading in cut and polished diamonds, diamond and gold jewellery, carat size diamonds, fancy diamonds, loose diamonds, diamond jewellery, platinum jewellery, etc. Products are mainly imported from India and Belgium. Prime markets are Hong Kong, China, South Korea, Taiwan, Southeast Asia, etc.
The subject has had an associated company Yin Po Company, a Hong Kong registered firm located at Flat B, 7/F., Kiu Yip Building, 26-28 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong. This firm is also a diamond trader.
Besides, the subject is an associate of Bhavani Gems which is an India-based firm. It is responsible for promoting Bhavani Gems throughout the Asia Pacific region by distributing its products in the form of “Regular, high-end gems and diamonds in pointers carat plus sizes”.
The subject has got an affiliated company known as Instyle Jewellery which is also an India-based firm. Instyle Jewellery has been a Sightholder of DTC (Diamond Trading Company) since 1996, and is an ISO9001 certified company. It is a major manufacturer of round and tapers polished diamonds, and offers jewellery manufacturers and retailers in the United States, Belgium, the Asia Pacific region and India a full range of small stars, melee and other finished diamonds. Instyle Jewellery’s diamonds are graded by three makes, Gem, High and Regular to fulfil the customer’s specific requirements.
Bhavani Gems offers customers worldwide with consistent assortment and just in time delivery. It is trading in three types of products: Gems, High and Regular. Bhavani Gems markets diamonds of various sizes in rounds, princess and fancy shapes.
Bhavani Gems is also a Sightholder of DTC. It also has got the ISO9001:2000 certification and it is the winner of GJEPC India’s export award which is a symbols of its “hard work and achievement”. Currently, it is operating twelve factories in India.
In April 2008, DTC released the names of all 79 companies that are UK Sightholders for the 2008 to 2011 contract period while Bhavani Gems is one of the firms. In 2009, Bhavani Gems introduced B2B online website for business development. In 2010, Bhavani Gems started to manufacture “Bhavani Mikro Diamond” which is the world’s smallest certified polished diamond which are Weshing 0.0003 Crt or 0.00006 Gram (3333.33 pcs per Carat). This record has also been acknowledged by “Limca book of record”. Bhavani Gems installed the 1st ever Quazer II Sarin laser machine in the world in its factory in India. Currently, Bhavani Gems exports over US$90 million worth of polished diamonds annually, business is rather active.
The subject is engaged in the same lines of business as Instyle Jewellery.
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. The fairs and shows which the subject and Bhavani Gems always participated are Hong Kong Jewellery & Watch Fair and Hong Kong International Jewellery Show.
Bhavani Gems business is handled by Mr. Nilesh Jhaveri who seems to be a family member of Mr. Pradeep Jagdish Jhaveri who was the former shareholder of the subject.
The subject has had an affiliate Super Diam B.V.B.A. in Antwerp, Belgium. It is likely that this firm is administered by Mr. Khadela Samir who was the former shareholder of the subject.
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 took part in “HKTDC Hong Kong International Jewellery Show 2012” which had been held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 16th to 20th February, 2012. Besides, 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.
The subject is fully supported by Bhavani Gems. Annual sales turnover ranges from HK$60 to 55 million. Business keeps on improving.
Since the history of the subject is over six years in Hong Kong, on the whole, consider it good for normal business engagements.
REMARKS:
Property information
of the company:-
Property Location: Unit 4 on 4/F., Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.
Owner: Bhavani Hong Kong Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
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Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
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30-04-2010 |
- |
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 |
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US Dollar |
1 |
Rs.54.47 |
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UK Pound |
1 |
Rs.87.63 |
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Euro |
1 |
Rs.71.12 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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.