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Report Date : |
23.05.2012 |
IDENTIFICATION DETAILS
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Correct Name : |
KARP
IMPEX HK LTD. |
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Registered Office : |
Unit 01-02, 10/F., Tower 2, Harbour Centre, |
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Country : |
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Date of Incorporation : |
19.02.2003 |
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Com. Reg. No.: |
33374139 |
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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. |
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No. of Employees : |
10. (Including
affiliates) |
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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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Hong Kong |
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 |
KARP IMPEX HK LTD.
Unit 01-02, 10/F., Tower 2, Harbour Centre, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2369 3000, 2724 4330
FAX: 2369 8700, 2721 6516
E-MAIL: hini@karpgroup.com
Managing Director: Mr. Anilkumar Bhikhabhai Virani
Incorporated on: 19th February, 2003.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000,000.00
Issued: HK$5,460,000.00
Business Category: Diamond Trader.
Total Income of Parent: Rs. 12,152,986,000 (Year ended 31-03-2010)
Employees: 10. (Including affiliates)
Main Dealing Banker: Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Unit 01-02, 10/F., Tower 2, Harbour Centre, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
India Factory:-
8/A, Lal Darwaja, Surat-395 008, Gujarat, India.
Holding Company:-
Karp Impex Ltd., India.
Affiliated
Companies:-
Karp Group of Companies
Hini Star (Bangkok) Ltd., Thailand.
Hini Star (Taiwan) Ltd., Taiwan.
Hini Star Diamonds LLC, UAE.
Hini Star Ltd., Hong Kong. (Same address)
Karp Diamonds Pvt. Ltd., India.
Karp Impex N.V., Belgium.
Karp Infotech, India.
Karp Jewellery Mfg. China Ltd., Hong Kong. (Same address)
Karp Jewellery Mfg. HK Ltd., Hong Kong. (Same address)
Karp Jewellery Pvt. Ltd., India.
Karp Jewellery Taiwan Ltd., Hong Kong.
Karp Jewellery Taiwan Ltd., Taiwan.
Karp Manufacturing Co., India.
Karp Suisse
(Geneva), Switzerland.
Park Infotech, India.
etc.
33374139
0833706
Managing Director: Mr. Anilkumar Bhikhabhai Virani
Nominal Share Capital: HK$10,000,000.00 (Divided into 10,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$5,460,000.00
(As per registry
dated 19-02-2012)
|
Name |
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No. of shares |
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Karp Impex Ltd. Shanta Bhuvan, 66 Kumudwadi, Bhavnagar-364002 (Gujarat), India. |
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5,459,999 |
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Anilkumar Bhikhabhai VIRANI |
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1 |
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–––––––– |
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Total: |
5,460,000 ======= |
(As per registry
dated 19-02-2012)
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Name (Nationality) |
Address |
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Anilkumar Bhikhabhai VIRANI |
Jal-Mayur Chs., 5/F., 51 Laxmi Vilas, 87 Nepean Sea Road, Mumbai-400006, India. |
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Kishorkumar Bhikhalal VIRANI |
Jal-Mayur Chs., 5/F., 51 Laxmi Vilas, 87 Nepean Sea Road, Mumbai-400006, India. |
(As per registry
dated 19-02-2012)
|
Name |
Address |
Co.
No. |
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RC Corporate Services Ltd. |
Room 2109, 21/F., China Resources Building, 26 Harbour Road, Wanchai, Hong Kong. |
0467057 |
The subject was incorporated on 19th February, 2003 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room 1505, 15/F., Tung Shun Hing Commercial Centre, 20-22 Granville Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in December 2005.
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.
Employees: 10. (Including affiliates)
Commodities Imported: Belgium, India, Israel, US, etc.
Markets: Europe, Japan, Israel, Thailand, US, etc.
Total Income of Parent: Rs. 10,118,699,000 (Year ended 31-03-2006)
Rs. 10,316,745,000 (Year ended 31-03-2007)
Rs. 10,297,778,000 (Year ended 31-03-2008)
Rs. 11,273,929,000 (Year ended 31-03-2009)
Rs. 12,152,986,000 (Year ended 31-03-2010)
Terms/Sales: As per contracted.
Terms/Buying: Various terms.
Nominal Share Capital: HK$10,000,000.00 (Divided into 10,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$5,460,000.00
Profit or Loss: Making a small profit every year.
Condition: Business is active.
Facilities: Making active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Satisfactory.
Bankers:-
· Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
· The Royal Bank of Scotland N.V., Hong Kong Branch.
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Good.
Having issued 5,460,000 ordinary shares of HK$1.00 each, Karp Impex HK Ltd. is a wholly-owned subsidiary of Karp Impex Ltd. [Karp Impex] which is an India-based firm. The subject is controlled by Mr. Anilkumar Bhikhabhai Virani who is holding a very minor stake of the subject. Virani is an India passport holder and does not have the right to reside in Hong Kong permanently.
The subject is a member of the Karp Group which is an Indian Group in India trading in jewellery and diamonds. The subject is an importer, exporter and wholesaler of fancy cut diamonds and round diamonds.
The manufacturing unit of the Karp Group is located in Panyu, Guangzhou City, Guangdong Province, China which comprises of expertise including designers, gemmologists, plating chemists, metallurgists and craftsmen. The Panyu factory is equipped with ultra modern production facility including rapid prototyping technology. It also has been equipped with computerized moulding machines, advanced automatic assembling and laser machines, model workshop, computer aided design software, rapid prototyping equipment, etc. The factory is able to develop its own new products.
The subject has got an affiliated company Hini Star Ltd. [Hini Star] located at the subject’s operating address.
With well-established offices in worldwide, the subject offers clients with the full spectrum of fancy cut diamonds including taper, baguette, marquise, pear, oval, princess, heart, trillion, round pointer, and brilliant cut diamonds from 0.01 to 10 carat, also “Hearts & Arrows” ideal cut with GIA / HRD / IGI certificate.
The subject’s affiliate Hini Star has been named the No. 1 diamond importer in Southeast Asia by the Gem and Jewellery Export Promotion Council in India since 1996.
The Karp Group is owned by the Maldar family and was formed in the early 60’s in India. Now, the Group is controlled by the third generation of the family.
Hini Star is administered by Mr. Rameshkumar Bhikhabhai Virani who is one of the key members of the Karp Group.
Karp Impex is recognized by the Government of India as a “Star Trading House”. For the year ended 31st March, 2010, the total income of Karp Impex was Rs. 12,152,986,000 (2009: Rs. 11,273,929,000), grew by 7.8% as compared with previous years. Business is profitable.
For the year ended 31st March, 2011, the total income of Karp Impex was estimated to be Rs. 13,500,000,000. In India, the Karp Group has about 8,000 workers while some of its workers are the third generation employees.
The subject is fully supported by the Karp Group. History is over nine years and three months.
On the whole, consider the subject good for normal business engagements.
REMARKS:
Property information of affiliate:-
Property
Location: Workshop Unit No.
01 & 02 on 10/F., Harbour Centre Tower 2,
8 Hok Cheung Street, Kowloon, Hong Kong.
Owner: Hini Star Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
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01-09-2005 |
- |
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
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07-09-2007 |
- |
- ditto - |
Deed of variation and further charge 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.54.88 |
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UK Pound |
1 |
Rs.86.89 |
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Euro |
1 |
Rs.70.21 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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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.