MIRA INFORM REPORT

 

 

Report Date :

24.12.2012

 

IDENTIFICATION DETAILS

 

Name :

DVH INDUSTRIES (ASIA) LTD.

 

 

Registered Office :

Room 75A, 5/F., South East Mansion, 75-77 Kimberley Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

30.04.2005

 

 

Com. Reg. No.:

35603130

 

 

Legal Form :

private limited liability company

 

 

Line of Business :

Subject Is a Diamond Trader

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

No Operating Office in Hong Kong

 

 

Payment Behaviour :

Unknown

 

 

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

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

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.

 

Source : CIA

Company name

 

DVH INDUSTRIES (ASIA) LTD.

 

 

ADDRESS

 

Registered Office:-

Room 75A, 5/F., South East Mansion, 75-77 Kimberley Road, Tsimshatsui, Kowloon, Hong Kong.

 

(Formerly located at:

c/o Billion Rise Secretaries Ltd.

Room 1213, 12/F., Tai Yau Building, 181 Johnston Road, Wanchai, Hong Kong)

 

 

BUSINESS REGISTRATION NUMBER

 

 35603130

 

 

COMPANY FILE NUMBER

 

0967586

 

 

DATE OF INCORPORATION

 

30th April, 2005.

 

 

CAPITAL

 

Nominal Share Capital: HK$500,000.00 (Divided into 50,000 shares of HK$10.00 each)

 

Issued Share Capital: HK$20.00

 

 

SHAREHOLDER

 

(As per registry dated 30-04-2012)

Name

 

No. of shares

Amit Kumar

 

2

=

 

 

DIRECTOR    

 

(As per registry dated 30-04-2012)

Name

(Nationality)

 

Address

Abhishek Kumar Saklecha

Bus Station Kirana Shop Tantoti Teh.Sarwar Distt.Ajmer Raj, India.

 

 

SECRETARY

 

(As per registry dated 30-04-2012)

Name

Address

Co. No.

Buttar.HK Ltd.

1/F., Mau Lam Commercial Building, 16-18 Mau Lam Street, Jordan, Kowloon, Hong Kong.

0975326

 

 

GENERAL

 

DVH Industries (Asia) Ltd. was incorporated on 30th April, 2005 as a private limited liability company under the Hong Kong Companies Ordinance.

 

The subject does not have its own operating office.  Its registered address is in a private building located at Room 75A, 5/F., South East Mansion, 75‑77 Kimberley Road, Tsimshatsui, Kowloon, Hong Kong.

 

The residential building is not trespassed by outsiders.  The subject has no employees in Hong Kong.

 

Formerly the subject’s registered office was in a commercial service firm located at 7/F., Man On Commercial Building, 12-13 Jubilee Street, Central, Hong Kong known as Dhun’s Management Services Ltd. which had handled its correspondences and documents.  Dhun’s Management Services Ltd. was also the corporate secretary of the subject.  As the subject changed its corporate secretary in March 2010, it moved to Room 1213, 12/F., Tai Yau Building, 181 Johnston Road, Wanchai, Hong Kong where was the operating address of Billion Rise Secretaries Ltd. [Billion Rise] in the same year and month.  The subject’s registered address moved to the present address in August 2011.

 

According to the Companies Registry of Hong Kong, the subject has issued 2 ordinary shares of HK$10.00 each which are owned by Mr. Amit Kumar who is an Indian.  Currently he is residing in Hong Kong.

 

At the very beginning, the 2 shares were equally owned by Mr. Hasmukhlal Khatri and Mr. Paul Lam Shiu Ki.  The former resided in the United States while the latter was a Hong Kong merchant.  On 21st October, 2009, Khatri and Lam transferred their shares to Khushnud Ltd.  On 26th May, 2009, Khushnud Ltd. transferred the 2 shares to Mr. Kumar Amit, and on 5th May, 2010, Kumar Amit transferred all his shares to Mr. Vilas Pandurang Gurav who was the old sole shareholder.  Vilas Pandurang Gurav transferred his shares back to Amit Kumar in August 2011.

 

The director of the subject Abhishek Kumar Saklecha is also an Indian.

 

It is likely that the subject is a diamond trader.  It seems that it has got an affiliated company in Mumbai, India.  The India firm deals with foreign parties under the name of the subject and let foreign firms correspond with the subject’s registered address in Hong Kong.  The India firm also exports commodities to foreign markets under the name of the subject and its registered address in Hong Kong.

 

The subject’s business in Hong Kong is not very active.  History is just over seven years.

 

Since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on L/C basis.

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.55.08

UK Pound

1

Rs.89.53

Euro

1

Rs.72.77

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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%)

 

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