MIRA INFORM REPORT
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Report Date : |
01.11.2012 |
IDENTIFICATION DETAILS
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Name : |
H.
D. IMPEX |
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Registered Office : |
Flat E, 10/F., |
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Country : |
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Date of Incorporation : |
06.05.2005 |
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Com. Reg. No.: |
35595080-000-05 |
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Legal Form : |
Partnership |
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Line of Business : |
Importer, Exporter and Wholesaler of Diamonds and jewellery |
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No. of Employees
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Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Concern |
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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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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 |
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
H. D. IMPEX
Flat E, 10/F., South Sea Mansion, 81 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2317 6200
FAX: 2317 6600
E-MAIL: hdimpex@live.com
Manager: Mr. Hareshkumar Rhjmalbhai Shah (Mobile: 6127 6882)
Establishment: 6th May, 2005.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Diamond Trader.
Annual Turnover: HK$12~15 million.
Employees: Nil.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Flat E, 10/F., South Sea Mansion, 81 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
China Factory:-
H. D. Impex Jewellery Factory
Shenzhen Special Economic Zone, China.
[Fax: 86-755-2547 0032]
Associated
Company:-
H. Diam HK Ltd.
Room 1501, 15/F., Workingport Commercial Building, 3 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong.
35595080-000-05
Manager: Mr. Hareshkumar Rhjmalbhai Shah
Name: Mr. Hareshkumar Rhjmalbhai SHAH
Residential Address: Flat
D, 7/F., Luxury Court, 9 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong.
Name: Mr. Pritesh Nandkumar MISTRY
Residential Address: Flat
D, 7/F., Luxury Court, 9 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 6th May, 2005 as a partnership concern jointly owned by Mr. Hareshkumar Rhjmalbhai Shah and Mr. Pritesh Nandkumar Mistry under the Hong Kong Business Registration Regulations. On 6th July, 2007, Mr. Dinesh Dhanjibhai Italiya joined in as a partner making up three in total. However, the last retired on 15th July, 2011.
At the very beginning, the subject was located at Flat D, 7/F., Luxury Court, 9 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong, moved to Room 1811, 18/F., Rise Commercial Building, 5-11 Granville Circuit, Tsimshatsui, Kowloon, Hong Kong in July 2007; moved to Flat A, 7/F., Shun Fai Building, 64-66A Kimberley Road, Tsimshatsui, Kowloon, Hong Kong in July 2008; and further to Room H, 13/F., Block E, Phase 1, Golden Lion Garden, 1-3 Kak Tin Street, Shatin, New Territories, Hong Kong where was the subject’s operating address in 2009. However, its registered address was still located at Flat A, 7/F., Shun Fai Building, 64-66A Kimberley Road, Tsimshatsui, Kowloon, Hong Kong. The subject moved to Flat 9A, 9/F., Ka Wing Building, 27 Granville Road, Tsimshatsui, Kowloon, Hong Kong in May 2010 and further to the present address in April 2011.
Apart from these, neither material
change nor amendment has been ever traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: Diamonds and jewellery.
Employees: Nil.
Commodities Imported: India, Belgium and other European countries.
Markets: Japan, Southeast Asia, Europe, Middle East, etc.
Annual Turnover: HK$12~15 million.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Capital: Not disclosed.
Profit or Loss: Making a small profit in the past years.
Condition: Business is normal.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
H. D. Impex is a partnership jointly owned by two Indian: Mr. Hareshkumar Rhjmalbhai Shah and Mr. Pritesh Nandkumar Mistry. The former is an India passport holders while the latter is a HK ID Card holder and now has got the right to reside in Hong Kong permanently.
The subject’s latest operating address is located at Flat E, 10/F., South Sea Mansion, 81 Chatham Road, Tsimshatsui, Kowloon, Hong Kong where is the residence of the Indian partners. It is likely that the partners have moved to this new address but does not update its registration materials filed with the Hong Kong Government. They moved to this new address in April 2011.
Business commenced in May 2005, the subject is a diamond importer, exporter and wholesaler. It is trading in loose diamonds, emerald, precious stones, ruby jade, gem sets, semi-precious stones, blue or coloured sapphire, Tanzanite, etc. Most of the raw materials and products are imported from India. Some of the raw diamonds are polished or processed in Hong Kong or China. Finished products and polished diamonds are exported or re-exported to Japan, other Asian countries, the Middle East, the USA, etc.
The manager of the subject, Hareshkumar Rhjmalbhai Shah can be reached at his China mobile phone number 0086-13143455759 or Hong Kong mobile phone number 852‑6127 6882 while Pritesh Nandkumar Mistry can be reached at his mobile phone number 852-6127 6614.
According to Hareshkumar Rhjmalbhai Shah, the subject has got an affiliated factory in Shenzhen Special Economic Zone, China known as H. D. Impex Jewellery Factory. The factory is employing about 70 persons. Most of the time, Hareshkumar Rhjmalbhai Shah is stationing at his China factory.
The subject is exporting the products of the China factory while raw materials are imported from India. The annual sales turnover of the subject ranges from HK$12 to 15 million. Making a small profit every year.
Besides operating the subject, Pritesh Nandkumar Mistry is also the sole shareholder of H. Diam HK Ltd. which is located at a different address. Incorporated on 9th June, 2010, H. Diam HK Ltd. is also a diamond trader.
On the whole, consider the subject good for normal business engagements in small credit amounts.
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.54.12 |
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UK Pound |
1 |
Rs.87.08 |
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Euro |
1 |
Rs.70.15 |
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.