MIRA INFORM REPORT

 

 

Report Date :

14.03.2012

 

IDENTIFICATION DETAILS

 

Name :

VU  HONG  KONG

 

 

Registered Office :

Flat D, 13/F., Block 28, Park Island, Mawan, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

31.03.2010

 

 

Com. Reg. No.:

52015403-000-03

 

 

Legal Form :

Partnership

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of imitation jewellery, artificial precious stones, etc.

 

 

No. of Employees :

Nil.

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Small Concern

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name and address

 

VU  HONG  KONG

 

 

ADDRESS:       Flat D, 13/F., Block 28, Park Island, Mawan, New Territories, Hong Kong.

 

PHONE:                        3583 4279

 

E-MAIL:                        vuhongkongltd@gmail.com

 

 

MANAGEMENT

 

Manager:  Ms. Usha Madmukar Bawlekar

 

 

SUMMARY

 

Establishment:                          31st March, 2010.

 

Organization:                 Partnership.

 

Capital:                          Not disclosed.

 

Business Category:        Importer, Exporter and Wholesaler.

 

Employees:                    Nil.

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.

ADDRESS

 

Head Office:-

Flat D, 13/F., Block 28, Park Island, Mawan, New Territories, Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

52015403-000-03

 

 

MANAGEMENT

 

Manager:  Ms. Usha Madmukar Bawlekar

 

 

PARTNERS

 

Name:  Ms. Usha Madmukar BAWLEKAR

Residential Address:      Flat F, 19/F., Block 31, Park Island, Mawan, New Territories, Hong Kong.

 

Name:  Mr. Poornaprakash VITTAL

Residential Address:      Flat D, 13/F., Block 28, Park Island, Mawan, New Territories, Hong Kong.

 

 

HISTORY

 

The subject was established on 31st March, 2010 as a partnership concern jointly owned by Ms. Usha Madmukar Bawlekar and Mr. Poornaprakash Vittal under the Hong Kong Business Registration Regulations.

Originally the subject was registered under the name of V U Impex, name changed to the present style on 4th January, 2011.

Initially the subject was located at Flat F, 19/F., Block 31, Park Island, Mawan, New Territories, Hong Kong, moved to the present address in January 2011.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of imitation jewellery, artificial precious stones, etc.

 

Employees:                   Nil.

 

Commodities Imported:               China, other Asian countries, etc.

 

Markets:                                   India, other Asian countries, etc.

 

Terms/Sales:                             L/C, T/T, etc.

 

Terms/Buying:                           L/C, T/T, D/P, etc.

 

 

FINANCIAL INFORMATION

 

Capital:                         Not disclosed.

 

Profit or Loss:                Too early to offer an opinion.

 

Condition:                      Business is under development.

 

Facilities:                      Making fairly active use of general banking facilities.

 

Payment:                       Met trade commitments as required.

 

Commercial Morality:     Too early to comment.

 

Banker:                         The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:                      Small.

 

 

GENERAL

 

VU Hong Kong is a partnership jointly owned by Ms. Usha Madmukar Bawlekar and Mr. Poornaprakash Vittal.  Both are India merchants but each of them is holding a Hong Kong ID Card and has got the right to reside in Hong Kong permanently.

The registered address of the subject is located at Flat D, 13/F., Block 28, Park Island, Mawan, New Territories, Hong Kong.  This office is in a residential building.  The subject moved to the present address in January 2011 where is also the new residential address of Ms. Usha Madmukar Bawlekar.  The above-mentioned address is also the registered residential address of Mr. Poornaprakash Vittal.

The subject is trading in the following commodities:-

·         Imitation jewellery

·         Artificial precious stones

·         Artificial ornaments

Most of the commodities are sourced from China and the other Asian countries.  Prime markets are India, other Asian countries, etc.  Business is still under development.

The business of the subject is handled by the two India merchants.  History in Hong Kong is just about two years.

Since the registered office of the subject is in a residential building, consider it good for normal 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.49.84

UK Pound

1

Rs.77.97

Euro

1

Rs.65.61

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.