|
Report Date : |
29.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
LIDYA BLH (HK) CO. LTD. |
|
|
|
|
Registered Office : |
Unit 16, 9/F., West Wing, Peninsula Square, 18 Sung On
Street, Hunghom, Kowloon |
|
|
|
|
Country : |
|
|
|
|
|
Date of Incorporation : |
15.10.2004 |
|
|
|
|
Com. Reg. No.: |
35000619 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer and Exporter of all
Kinds of Polished Diamonds, Etc |
|
|
|
|
No. of Employees : |
5 |
RATING & COMMENTS
|
MIRAs Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
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 June 30th,
2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
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 |
LIDYA
BLH (HK) CO.
LTD.
Unit 16, 9/F., West Wing, Peninsula Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.
PHONE: Not available
FAX: Not available
Note
1. Your Flat
E, 2/F., Lunar Court, 55 Kimberly Road, Kowloon, Hong Kong is in a residential
building. The
residential building is not trespassed by outsiders.
2. It is
likely that this is the residence of the subjects Hong Kong shareholder Ms.
Laxmi Ajesh Shah.
.
Managing Director: Ms. Laxmi Ajesh Shah
Incorporated on: 15th October, 2004.
Organization: Private Limited Company.
Capital: Nominal: HK$780,000.00
Issued: HK$780,000.00
Business Category: Diamond & Jewellery Trader.
Employees: 5. (Including associates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Unit 16, 9/F., West Wing, Peninsula Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.
Associated/Affiliated Companies:-
Ace Carat Trading Company, Hong Kong. (Same address)
Aspeco NV, Belgium.
BLH-KG Diamonds China Co. Ltd., China.
Diamantina S.A., Luxembourg.
K. Girdharlal (Hong Kong) Ltd., Hong Kong.
K. Girdharlal Diamonds (India) Pvt. Ltd., India.
K. Girdharlal DMCC, UAE.
K. Girdharlal Inc., USA.
K. Girdharlal International Pvt. Ltd., India.
K. Girdharlal, India.
Pal Impex Company, Hong Kong.
35000619
0928208
Managing Director: Ms. Laxmi Ajesh Shah
Nominal Share Capital: HK$780,000.00 (Divided into 780,000 shares of HK$1.00 each)
Issued Share Capital: HK$780,000.00
(As per registry dated 15-10-2011)
|
Name |
|
No. of shares |
|
Laxmi Ajesh SHAH |
|
397,800 |
|
GENG Lijun |
|
382,200 |
|
|
|
|
|
|
Total: |
780,000 ====== |
(As per registry dated 15-10-2011)
|
Name (Nationality) |
Address |
|
GENG Li Jun |
Room 2202, Block 2, Wanguocheng, 1 Xiangheyuan Street, Dongcheng District, Beijing, China. |
|
Laxmi Ajesh SHAH |
Flat C, 11/F., Wah Fai Mansion, 38-40 Granville Road, Tsimshatsui, Kowloon, Hong Kong. |
(As per registry dated 15-10-2011)
|
Name |
Address |
Co.
No. |
|
Taxbase Consultants Ltd. |
Room 1426, 14/F., Hollywood Plaza, 610 Nathan Road, Kowloon, Hong Kong. |
0411324 |
The subject was incorporated on 15th October, 2004 as a private limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Kgblh (HK) Co. Ltd., name changed to the present style on 1st June, 2011.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer and Exporter.
Lines: All kinds of polished diamonds, etc.
Employees: 5. (Including associates)
Commodities Imported: India, Belgium, etc.
Markets: Singapore, Thailand, Taiwan, other Southeast Asian countries, US, Belgium, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, D/P, etc.
Nominal Share Capital: HK$780,000.00 (Divided into 780,000 shares of HK$1.00 each)
Issued Share Capital: HK$780,000.00
Profit or Loss: Making a small profit every year.
Condition: Keeping in a satisfactory manner.
Facilities: Making active use of general banking facilities.
Payment: Met as required.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Hang Seng Bank Ltd., Hong Kong.
Standing: Small.
Having issued 780,000 ordinary shares of HK$1.00 each, Lidya BLH (HK) Co. Ltd. is jointly owned by Ms. Laxmi Ajesh Shah, holding 51% interests, and Ms. Geng Lijun, holding 49%. They are also directors of the subject.
The former is an India businesswoman while the latter is a China businesswoman. She is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.
The subject is a diamond trader. It has got an associated company BLH-KG Diamonds China Co. Ltd. [BLH-KG] which is in Shanghai, China. This firm is administered by Ms.Geng Lijun, Lidia. This firm is trading in diamonds in Shanghai, China.
Located at the same address, the subject has got an associated company K. Girdharlal (Hong Kong) Ltd. [KGHK], a Hong Kong-registered firm.
KGHK is chiefly owned by the Shah family.
KGHK is an associate of a major diamond-manufacturing group in Mumbai in India K. Girdharlal International Pvt. Ltd. [KGIP] which is a sightholder of the diamond trading company. In about 2001, KGIP in India took the initiative in diversifying into jewellery manufacturing and exporting its jewellery products. Now, KGIP is engaged in manufacturing all kinds of cut and polished diamonds.
KGHK enjoys the support of this strong production capacity of fine-make diamonds and continues to focus its efforts on marketing loose diamonds and upgrading services to its customers in Southeast Asia. KGHK exports its products to the Asian countries and has formed a strategic alliance with a well-established diamond wholesaler in China. Sales offices have been set up in Shenzhen Special Economic Zone, Shanghai and Beijing.
KGHK has upgraded the craftsmanship and skills of its workers as well as polishing equipment at its factories in India. It is supplying diamonds of fine make, which include quite substantial quantities of hearts-and-arrows diamonds, to its customers regularly. Prime markets are the Greater China region, Singapore, Malaysia and Indonesia. Business is rather active.
Now, KGIP has set up offices in Dubai, New York, Antwerp, etc. KGIP is the main supplier of the subject.
The subject markets its products in Hong Kong, exported to China, Japan and the other Asian countries, Business is rather active.
The subject is supported by KGIP and ultimately by the Shah family. History in Hong Kong is over seven years and nine months.
On the whole, consider the subject good for normal business engagements.
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.55.70 |
|
UK Pound |
1 |
Rs.89.34 |
|
Euro |
1 |
Rs.72.35 |
INFORMATION DETAILS
|
Report Prepared
by : |
NLM |
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 SCs 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.