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Report Date : |
23.06.2012 |
IDENTIFICATION DETAILS
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Name : |
HK TRADING COMPANY |
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Registered Office : |
C/o Akin Professionals Ltd. 20/F., |
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Country : |
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Date of Incorporation : |
17.12. 2010 |
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Com. Reg. No.: |
53467174-001-12 |
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Legal Form : |
Sole Ownership |
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LINE OF BUSINESS : |
TRADER OF ALL KINDS OF GEMSTONES, SAPPHIRES, ETC. |
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No. of Employees : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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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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Status : |
No Operating Office in Hong Kong |
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Payment Behaviour : |
Unknown |
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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 – 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 |
HK TRADING
COMPANY
[Operated by SAPPHIRE TRADING LTD.]
ADDRESS: c/o Akin Professionals Ltd.
20/F., Champion Building, 287-291 Des Voeux
Road Central, Sheung Wan, Hong Kong.
PHONE: 2541 4224
FAX: 2541 4225
Manager: Mr. Javari Lal Gautam Chand
Jain
Establishment: 17th
December, 2010.
Organization: Sole
Ownership.
Capital:
Not
disclosed.
Business Category: Sapphire Trader.
Employees:
Nil.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Office:-
c/o Akin Professionals Ltd.
20/F., Champion Building, 287-291 Des Voeux Road Central,
Sheung Wan, Hong Kong.
Parent Company:-
Sapphire Trading Ltd., Hong Kong.
(Same address)
Associated Company:-
2011 Ltd., Hong Kong. (Same
address)
53467174-001-12
Manager: Mr. Javari Lal Gautam
Chand Jain
Sapphire Trading Ltd., Hong Kong.
(See attachment)
The subject was established on 17th December, 2010 as a sole ownership
firm with Sapphire Trading Ltd. as the proprietor under the Hong Kong Business
Registration Regulations.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Sapphire
Trader.
Lines: All
kinds of gemstones, sapphires, etc.
Employees: Nil.
Commodities Imported: India, Sri Lanka, etc.
Markets: Hong
Kong, other Asian countries, Europe, etc.
Terms/Sales:
As per contracted.
Terms/Buying: L/C,
Prepayment, etc.
Capital: Not
disclosed.
Profit or Loss: Keeping a balance account in Hong Kong.
Condition: Business
is not active in Hong Kong.
Facilities: Making
fairly active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker:
The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Standing:
Small.
HK Trading Company is a wholly-owned subsidiary of Sapphire Trading Ltd.
[STL] which is a Hong Kong-registered firm.
Formerly STL was registered under the name of Hong Kong Expo Ltd., name
changed to the present style on 31st December, 2010. STL was incorporated on 3rd December, 2010.
The subject does not have its own operating office. Its registered office is in an accountant
firm located at 20/F., Champion Building, 287-291 Des Voeux Road Central,
Sheung Wan, Hong Kong known as Akin Professionals Ltd. which is handling its
correspondences and documents. This firm
is also the corporate secretary of the subject.
The subject has no employees in Hong Kong.
According to the subject, it is engaged in “Trading and Services”. However, the subject is engaged in the same
lines of business as STL.
STL is trading in diamonds and gemstones.
It is carrying the following semi‑precious stones:-
Aquamarine, Pink Amethyst, Rubylite, Green Amethyst, Blue Topaz, Lemon
Topaz, Citrine, Smokey Topaz, Kunzite, Peridot, Morganite, Pink Tourmalines,
Amethyst, Pink Topaz, Garnet, Rose Quartz, etc.
Besides the subject and STL, Jain is also the managing director of
another firm 2011 Ltd. which is a Hong Kong-registered firm. Incorporated on 3rd November, 2011, 2011
Ltd. is a diamond trader. Its registered
address is also in the operating address of Akin Professionals Ltd.
It is likely that the subject has got an associated company in India
which is also operated by Jain. It is
also likely that 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 active. History is just over a year.
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.
SAPPHIRE TRADING LTD.
ADDRESS:
20/F., Champion Building, 287-291 Des Voeux Road Central, Sheung Wan,
Hong Kong.
53467174
1536060
3rd December, 2010.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of
HK$1.00 each)
Issued Share Capital: HK$1.00
(As per registry dated 03-12-2011)
|
Name |
|
No. of share |
|
Javari Lal Gautam Chand JAIN |
|
1 = |
(As per registry dated 03-12-2011)
|
Name (Nationality) |
Address |
|
Javari Lal Gautam Chand JAIN |
Dev Ki Gali Masuda, Ajmer, Rajasthan, India. |
(As per registry dated 03-12-2011)
|
Name |
Address |
Co. No. |
|
Akin Professionals Ltd. |
20/F., Champion Building, 287-291 Des Voeux Road Central, Sheung Wan,
Hong Kong. |
1273165 |
It was originally registered under the name of Hong Kong Expo Ltd, name
changed to the present style on 31st December, 2010.
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.
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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.
-
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.56.99 |
|
|
1 |
Rs.88.97 |
|
Euro |
1 |
Rs.71.57 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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.