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Report Date : |
18.04.2013 |
IDENTIFICATION DETAILS
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Name : |
TARA (HONG KONG) LTD. |
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Registered Office : |
Room 1002, 10/F., Block A, Hunghom Commercial Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
10.11.2006 |
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Com. Reg. No.: |
37364017 |
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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 products, emerald, precious stones, etc. |
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No. of Employees : |
10 |
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 : |
Good |
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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
TARA (HONG
KONG) LTD.
ADDRESS: Room 1002, 10/F., Block A,
Hunghom Commercial Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong.
PHONE: 2334 7163, 2314
7115, 2314 7616
FAX: 8343 8539
E-MAIL: wendy.yau@tarahk.com
Managing Director: Mr. Rajeev
Vasant Sheth
Incorporated on: 10th
November, 2006.
Organization: Private
Limited Company.
Capital: Nominal: HK$6,555,900.00
Issued: HK$6,555,900.00
Business Category: Diamond
Trader.
Employees:
10.
Main Dealing Banker: Bank of India,
Hong Kong Branch.
Banking Relation: Satisfactory.
Registered Head Office:-
Room 1002, 10/F., Block A, Hunghom Commercial Centre, 39 Ma Tau Wai
Road, Hunghom, Kowloon, Hong Kong.
Holding Company:-
Tara Jewels Ltd., India.
Associated Companies:-
Divya Jewels International Pvt. Ltd., India.
Divya Real Estate Pvt. Ltd., India.
Fabrikant Tara International LLC, US.
Tara China Jewelry Ltd., China.
Tara Duniya Corporation, British Virgin Islands.
Tara Jewels Holdings Inc., US.
Tara Jewels Honduras Sociedad de Responsabilidad Ltd., Honduras.
Tara Sparkles Pvt. Ltd., India.
37364017
1086640
Managing Director: Mr. Rajeev
Vasant Sheth
Contact Person: Ms. Wendy Yau
Purchasing Manager: Ms. Fong Shu
Heung, Susan
Nominal Share Capital: HK$6,555,900.00 (Divided into 655,590 shares of
HK$10.00 each)
Issued Share Capital: HK$6,555,900.00
(As per registry dated 10-11-2012)
|
Name |
|
No. of shares |
|
Tara Jewels Ltd. Plot No. 122, 15 Road Near IDBI Bank, M.I.D.C Andheri (East), Mumbai
400 093, India. |
|
655,590 ====== |
(As per registry dated 10-11-2012)
|
Name (Nationality) |
Address |
|
Rajeev Vasant SHETH |
Plot No. 29 & 30 (P) Sub Plot A, Seepz Sez, Andheri (E), Mumbai
400096, India. |
(As per registry dated 10-11-2012)
|
Name |
Address |
Co. No. |
|
Skywise Ltd. |
3/F., Chinese Club Building, 21-22 Connaught Road Central, Hong Kong. |
0860425 |
The subject was incorporated on 10th November, 2006 as a private limited
liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Best Profit
Management Ltd., name changed to the present style on 28th November, 2006.
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: 10.
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan, Southeast Asia, Europe,
Middle East, etc.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
Nominal Share Capital: HK$6,555,900.00 (Divided into 655,590 shares
of HK$10.00 each)
Issued Share Capital: HK$6,555,900.00
Mortgage or Charge: (See
attachment)
Profit or Loss: Making a small
profit every year.
Condition:
Keeping in an
active manner.
Facilities:
Making active
use of general banking facilities.
Payment:
Met trade
commitments as required.
Commercial Morality: Satisfactory.
Banker:
Bank of
India, Hong Kong Branch.
Standing:
Good.
Tara (Hong Kong) Ltd. was jointly owned by Tara Duniya Corporation which
is a BVI-registered firm, holding 85% interests; and Mr. Yiu Yam Sin, holding
15%. Yiu is a Hong Kong merchant. Now, the subject has increased its ordinary
shares to 655,590 which are wholly-owned by Tara Jewels Ltd. [Tara Jewels]
which is an India-based firm. Tara
Jewels has been a listed firm in India since late 2012.
The only director of the subject Rajeev Vasant Sheth is an Indian. Sheth is an India passport holder and does
not have the right to reside in Hong Kong permanently.
The subject is a diamond trader.
It has had offices in China, the United States, India and Europe. Its China office is also a factory.
The subject is trading in loose diamonds. It also trades in the following commodities:-
Jewellery — Diamond
Jewellery — Gemset
Jewellery — Pearl
Jewellery — Semi-Precious Stone
Rough diamonds are chiefly imported from India. After processing in Hong Kong or China,
finished products are exported to Japan, Taiwan, other Asian countries, Europe
and the United States. Business has been
improving.
Most of the time, Sheth is in Mumbai, India administering the subject’s
India office.
Tara Jewels has grown substantially since it first entered the jewellery
manufacturing business over 10 years ago.
Today, its business interests span across the globe as it continues to
make its presence felt in the retail jewellery segment.
Tara Jewels has four manufacturing facilities, one of which is in
China. It has over 84,584 sq.ft. of
manufacturing space and employ 1,738 staff across four continents. It had an aggregate production of 10,616.40
kgs in Fiscal 2012. This made Tara
Jewels one of the largest studded jewellery exporter from India since
2006. It has also received “Certificate
of Excellence” for the print campaign of the year at The 8th Retail Jeweller
India Awards 2012.
Tara Jewels’ growth and continuing market dominance can be attributed to
its hall of designs with over 48,273 designs that caters to a diverse audience
across five continents and over 20 countries.
Its products range includes fashion, bridal and handmade bespoke
jewellery with unit price ranging from USD18 to USD10,000.
Today, Tara Jewels plays a significant role in jewellery exports from
India to global markets and caters to retailers across the United States, the
United Kingdom, Europe (12 countries including Austria, Germany and
Switzerland), Australia, China, South Africa, the Unite Arab Emirates and
Canada. It supplies to jewellery retailers
in these markets and reach its consumers through national chains, television
and Internet, departmental stores, hypermarkets and small chain jewelers.
Tara Jewels is now looking at direct distribution in the growing
economies such as India and China.
The subject’s business in Hong Kong is chiefly handled by Ms. Wendy Yau
who is a Hongkongnese. Ms. Susan Fong,
also a Hongkongnese, is the subject’s Purchasing Manager.
On the whole, consider the subject good for normal business engagements.
|
Date |
Particulars |
Amount |
|
11-03-2011 |
Instrument: Letter of Set-Off & Appropriation Property: Deal No. Date Amount Due Date 169291 16-03-2011 US$600,000.00 16-03-2012 Mortgagee: Bank of India, Hong Kong Branch. |
Advances & other banking facilities Granted to the company from
time to time |
|
10-12-2012 |
Instrument: General Letter of Hypothecation Property: All bills of exchange and invoices or other documents representing or
relating to goods & all goods thereby represented or to which the
documents relate shall be hypothecated to the Bank by way of first charge as
a continuing security for all sums in which the company may from time to time
be actually or contingently indebted or liable to the Bank on any account A) To meet on demand all
bills negotiated or endorsed by the Bank for the undersigned which may be
dishonoured on presentation for acceptance or which may not be paid at the
due date thereof according to the original tenor thereof and a bill shall be
deemed not to have been paid if, at that date, funds have not been placed at
your free disposal for the whole sum due B) To reimburse the Bank
for all advances made against documents of title which may not have duly
taken up on presentation C) To meet re-exchange
expenses and interest Mortgagee: Bank of India, Hong Kong Branch. |
Advances & other banking facilities Granted to the company from
time to time |
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.53.94 |
|
|
1 |
Rs.82.76 |
|
Euro |
1 |
Rs.71.04 |
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 |
|
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 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.