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Report Date : |
02.11.2012 |
IDENTIFICATION DETAILS
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Name : |
RELIANCE TRADES |
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Registered Office : |
Flat A4, 6/F., Hankow Centre, |
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Country : |
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Date of Incorporation : |
09.02.1981 |
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Com. Reg. No.: |
07053042-000-02 |
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Legal Form : |
Partnership |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products, emerald, precious stones, etc. |
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No. of Employees : |
5 |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
RELIANCE TRADES
Flat A4, 6/F.,
Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2366 3063
FAX: 2311 0919
E-MAIL: reliance@hkstar.com
Manager: Mr. Seyed Abdul Gani Seyed Abdul Kader
Establishment: 9th February, 1981.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Diamond Trader.
Annual Turnover: HK$40~45 million.
Employees: 5. (Including associates)
Main Dealing Banker: Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Banking Relation: Satisfactory.
RELIANCE TRADES
Head
Office:-
Flat A4, 6/F.,
Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
P.O. Box 97948,
Tsim Sha Tsui Post Office, Kowloon, Hong Kong.
Associated
Companies:- (Same address)
Bridiam, Hong
Kong.
Wai Hing Co., Hong
Kong.
07053042-000-02
Manager: Mr. Seyed Abdul Gani Seyed Abdul Kader
Contact
Person: Mr. Asik Ali Mohamed Sadakthamby
Name: Mr. Seyed Abdul Gani SEYED ABDUL KADER
Residential
Address: 2/F., 11 Lock Road, Kowloon, Hong Kong.
Name: Mr. Asik Ali MOHAMED SADAKTHAMBY
Residential
Address: Flat A4, 6/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon,
Hong Kong.
Name: Mr. Seyed Abdul Kader Mafaz MOHAMED
Residential
Address: Flat A4, 6/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon,
Hong Kong.
The
subject was established on 9th February, 1981 as a sole proprietorship concern
owned by Seyed Abdul Gani Seyed Abdul Kader under the Hong Kong Business
Registration Regulations.
The
following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Seyed Abdul Gani SEYED ABDUL KADER |
09-02-1981 |
- |
|
Asik Ali MOHAMED SADAKTHAMBY |
24-07-1985 |
- |
|
Samul Haque MOHAMED SADAK |
12-01-1993 |
01-11-2011 |
|
Ameer Hamsha AHAMED SHAKIR |
01-04-1997 |
31-12-1998 |
|
Mohamed Afrah HABEEB MOHAMED |
01-01-1999 |
01-04-1999 |
|
Seyed Abdul Kader Mafaz MOHAMED |
24-06-2010 |
- |
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 products, emerald, precious stones, etc.
Employees: 5. (Including associates)
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan, Southeast Asia, Europe, Middle East, etc.
Annual Turnover: HK$40~45 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 every year.
Condition: Keeping in an active and satisfactory manner.
Facilities: Making rather active use of general banking facilities.
Payment: Met obligations as contracted.
Commercial Morality: Satisfactory.
Banker: Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Standing: Small.
Reliance
Trades is a partnership jointly owned by Seyed Abdul Gani Seyed Abdul Kader,
Asik Ali Mohamed Sadakthamby, and Seyed Abdul Kader Mafaz Mohamed. All the partners are Indians who are Hong
Kong ID Card holders and have got the right to reside in Hong Kong
permanently. The last one S.A. K. Mafaz
Mohamed joined in the subject on 24th June, 2010.
Over
the past years, the subject has got partners joined in and retired. Now, the subject is managed by the
above-mentioned three partners.
The
subject’s operating address is in a private and commercial building known as
Hankow Centre which is in Tsimshatsui, Kowloon, Hong Kong. The subject is in the private part of the
building. It is likely that the partners
of the subject also reside at the subject’s office.
Business
commenced in February 1981, the subject is a polished and cut diamond importer,
exporter and wholesaler. It also trades
in Alexandrite, emerald, precious stones, ruby jade, gem sets, semi-precious
stones, blue or coloured sapphire, Tanzanite, etc. Commodities are chiefly imported from India
and Europe. Prime markets are Hong Kong,
Japan, Southeast Asia, Europe, the Middle East, North America, etc. Overall business is satisfactory.
The
subject has got an associated company Wai Hing Co. [Wai Hing] which is located
at the same operating office of the subject.
Wai Hing is a is a sole proprietorship set up and owned by Mr. Asik Ali
Mohamed Sadakthamby who is one of the partners of the subject. Business commenced in November 2008, Wai Hing
is also a diamond importer, exporter and wholesaler.
Besides
Wai Hing, the subject had another associated company Bridiam located at the
same address. Bridiam is a sole
proprietorship set up and owned by Mr. Ahamed Kabir M. K. A. B. Syed who is an
Indian. He is a Hong Kong ID Card holder
and has got the right to reside in Hong Kong permanently. Also trading in diamonds, Bridiam was
established on 21st February, 2001.
The
subject’s business is chiefly handled by the three partners. The annual sales turnover of the subject
ranges from HK$40 to 45 million. Makes a
profit every year. Regular suppliers in
India and overseas customers have been maintained.
The
subject is one of the oldest Indian diamond traders in Hong Kong. Business is active.
On
the whole, since the history of the subject in Hong Kong is over thirty-one
years and seven months, consider it good for normal business engagements.
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.
-
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.53.78 |
|
|
1 |
Rs.86.77 |
|
Euro |
1 |
Rs.69.71 |
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 |
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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 |
|
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 |
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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 |
|
<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.