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Report Date : |
30.11.2012 |
IDENTIFICATION DETAILS
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Name : |
H.K.
IMPEX |
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Registered Office : |
Room 704, 7/F., Block 4, Chevalier House, |
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Country : |
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Date of Incorporation : |
01.01.2002 |
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Com. Reg. No.: |
32290536-000-01 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer and Exporter of all kinds of diamonds and jewellery, etc. |
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No. of Employees : |
05. (Including
affiliate) |
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 (31.03.2012) |
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 |
H.K. IMPEX
Room 704, 7/F., Block 4, Chevalier House, 45-51 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2367 8114, 2724 6530, 3741 2290
FAX: 2368 7147
E-MAIL: info@hkimpex.com
Manager: Mr. Bhagwanji Virji Lunagaria
Establishment: 1st January, 2002.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond Importer and Exporter.
Annual Sales Turnover: US$25-30 million.
Employees: 5. (Including affiliate)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Room 704, 7/F., Block 4, Chevalier House, 45-51 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
Hari Krishna Group of Companies
H.K. Designs (India) Seepz Unit, India.
H.K. Designs Inc., USA.
H.K. Diam BVBA, Belgium.
H.K. Exports (Shanghai) Ltd., China.
H.K. International, USA.
H.K. Jewels Pvt. Ltd., India.
Hari Krishna Exports Pvt. Ltd., India.
Unity Diam, Hong Kong. (Same address)
etc.
32290536-000-01
Manager: Mr. Bhagwanji Virji Lunagaria
Contact Persons: Mr. Mukesh Dholakiya
Name: Mr. Bhagwanji Virji LUNAGARIA
Residential Address: B-241
Ambikanagar Society, 099 Aarogya Kendra, Katargam, Surat, Gujarat, India.
The subject was established on 1st January, 2002 as a partnership concern jointly owned by Mr. Urveshi Kirtikant Maniyar and Mr. Bhagwanji Virji Lunagaria under the Hong Kong Business Registration Regulations.
The following
table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Urveshi Kirtikant MANIYAR |
01-01-2002 |
28-09-2004 |
|
Bhagwanji Virji LUNAGARIA |
01-01-2002 |
- |
|
Mukeshkumar G. DHOLAKIYA |
07-08-2002 |
05-08-2003 |
At the very beginning, the subject was located at Flat E, 11/F., Luna Court, 53-59 Kimberly Road, Tsimshatsui, Kowloon, Hong Kong, moved to Room 1603, 16/F., Winfield Commercial Building, 6-8A Prat Avenue, Tsimshatsui, Kowloon, Hong Kong in December 2002, moved to Room 1011, 10/F., Peninsula Square, West Wing, 18 Sung On Street, Hunghom, Kowloon, Hong Kong in October 2005, and further to the present address in August 2011.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer and Exporter.
Lines: All kinds of diamonds and jewellery, etc.
Employees: 5. (Including affiliate)
Commodities Imported: India, other Asian countries, Europe, etc.
Markets: Asia Pacific region, Middle East, Australia, New Zealand, US, Europe, etc.
Annual Sales Turnover: US$25-30 million.
Terms/Sales: As per contracted.
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 condition.
Facilities: Making active use of general banking facilities.
Payment: Met obligations as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
H.K. Impex is a Hong Kong based company engaged in jewellery and diamond business. The subject moved to the present address in August 2011. It shares the same office with Unity Diam which is also a Hong Kong‑registered firm.
Business commenced on 1st January, 2002, the subject now is a sole proprietorship owned by Mr. Bhagwanji Virji Lunagaria who is an Indian. Having been in Hong Kong for a very long time, he 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 is trading in the following products:-
VVS1 Diamond, IF Diamond, SI3 Diamond, SI2 Loose Diamond, SI1 Loose Diamond, Faceted Loose Diamond, etc.
It is able to offer its worldwide customers with international standard diamonds. Its prime markets are the Asia Pacific region, the Middle East, Australia, New Zealand, the United States, Europe, etc.
The subject is a marketing affiliate of m/s. Hari Krishna Exports Pvt. Ltd. which is in Mumbai, India. The subject belongs to the Hari Krishna Group.
According to the subject, Hari Krishna Exports has been engaged in diamond business since 1983.
The Group has more than 6,000 workers spread over seven factories located in the diamond city of Surat, India and with its marketing office in Mumbai, India. The factories and office, operated by the Hari Krishna Group, are able to cut and polish all kinds of diamonds and export its products to worldwide countries. It is specialized in “white colour and round cut” for all sizes.
The Hari Krishna Group is a diamond cutter and polisher. Its flagship company Hari Krishna Exports was set up in 1992 at Surat in India with a simultaneous opening of sales and marketing office in Mumbai, the hub of polished diamond trade. Ever since then, it has been at the cutting edge of trade, setting trends in the field of manufacturing and exporting of diamonds and studded jewellery.
Hari Krishna Group procures rough diamonds from various producers of Russia, South Africa, Canada, and other agencies of Antwerp. Rough diamonds are brought to its Surat and Ahmedabad manufacturing plants where they are cut and polished into different shapes, sizes and weight. The Group’s diamonds are usually in round brilliant cut [RBC] in whites. All the polished goods are sent to Mumbai office where the Group’s sales office and assort departments are located. After the assortment has been done, goods are being sold and exported to various clients throughout the world.
Hari Krishna Group has got the ISO9001:2000 certificate from ABS Quality Evaluations Inc. It is also a “Three Star Export House” recognized by the Government of India. From 2005 to 2010, the Gem and Jewellery Export Promotion Council in India had awarded the Group with certificates for its good export performance.
The Group’s products are exported to the United States, Japan, Israel, the United Kingdom, Belgium, Australia, New Zealand, the United Arab Emirates, and some of the European countries.
H.K. International, the first overseas marketing alliance of Hari Krishna Group, was set up in 1999 in New York. It is dealing in diamonds ranging from 0.50 pts to 5.00 cts. and also in stones duly certified by GIA and EGL.
The Group’s ventures include jewellery manufacturing facilities in Mumbai: H.K. Jewels and H.K. Designs (India).
In 2005, the subject launched “Kisna” branded diamond jewellery for the Indian market. “Kisna” is the only branded diamond jewellery that is available in more than 1,015 jewellery outlets in India.
In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Hong Kong, China and other foreign large cities.
The subject has got affiliated companies known as H.K. Designs (India) Seepz Unit and H.K. Jewels Pvt. Ltd. in India. Its affiliated company in China is known as H.K. Exports Shanghai Ltd.
The contact persons of the subject are Mr. Mukesh Dholakiya and Mr. Bhagwanji Patel.
The Hari Krishna Group achieved a turnover of US$250 million for the fiscal year 2007-2008. Now, the annual sales turnover of the Group ranges from US$250 to 270 million. Overall business is active.
The annual sales turnover of the subject ranges from US$25 to 30 million. Business is profitable.
In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Hong Kong and other foreign large cities. For instance, it is going to take part in “HKTDC Hong Kong International Jewellery Show 2013” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th to 9th March, 2013.
The history of the subject in Hong Kong is over ten years.
On the whole, fully supported by the Hari Krishna Group, the subject is considered 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.
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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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.20 |
|
UK Pound |
1 |
Rs.88.37 |
|
Euro |
1 |
Rs.71.47 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
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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.