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Report Date : |
22.04.2013 |
IDENTIFICATION DETAILS
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Name : |
PRESTO TRADE |
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Registered Office : |
Flat F, 13/F., Winner Building, 36 Man Yue Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
01.06.1991. |
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Com. Reg. No.: |
14592962-000-06 |
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Legal Form : |
Partnership. |
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Line of Business : |
Importer and Exporter of all kinds of diamonds, etc. |
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No. of Employees : |
5. (Including associate) |
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 levies
excise duties on only four commodities, namely: hard alcohol, tobacco,
hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. 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 9.1% of total system deposits in Hong Kong by the end of 2012,
an increase of 59% from the previous 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 34.9
million in 2012, 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 2012 mainland Chinese companies constituted about
46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for
about 57.4% 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, and less than 2% in 2012.
Credit expansion and tight housing supply conditions caused Hong Kong property
prices to rise rapidly and inflation to rise 4.1% in 2012. 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
PRESTO TRADE
ADDRESS: Flat F, 13/F., Winner
Building, 36 Man Yue Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2311 5480; 2311 5481;
2311 5482
FAX: 2721 4630; 2311 5485
E-MAIL: prestotrade@gmail.com
presto@hknet.com
Manager: Mr. Varshit Jain
Establishment: 1st
June, 1991.
Organization: Partnership.
Capital:
Not
disclosed.
Business Category: Jewellery Trader.
Employees:
5. (Including associate)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Flat F, 13/F., Winner Building, 36 Man Yue Street, Hunghom, Kowloon,
Hong Kong.
Associated Companies:-
King Sun Trading
Flat A, 11/F., Austin Mansion, 15A Austin Avenue, Kowloon,
Hong Kong.
Priyaank International Co. Ltd., Thailand.
Smart Art Jewellery Ltd., Thailand.
Splendor Diagem Ltd., Hong Kong.
[Formerly known as Presto Trade Ltd.]
(Same address)
14592962-000-06
Manager: Mr. Varshit Jain
Name: Mr. Praveen Raghunath LODHA
Residential Address: 164/72 Soi
Puttha Osot, New Road, Bangrak, Bangkok 10500, Thailand.
Name: Mr. Varshit JAIN
Residential Address: Flat A,
9/F., Kok Pah Mansion, 58-60 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 1st June, 1991 as a sole proprietorship
concern owned by Mr. Praveen Raghunath Lodha under the Hong Kong Business
Registration Regulations.
The following table shows the changes of the subject’s partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Praveen Raghunath LODHA |
01-06-1991 |
- |
|
Vivek SACHETI |
01-08-1992 |
28-02-2003 |
|
Dharmendra MUTHA |
01-03-2003 |
31-08-2005 |
|
Varshit JAIN |
15-08-2005 |
- |
Initially the subject was located at Flat K, 9/F., Far East Mansion, 5-6
Middle Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat 04A, 9/F., Lee Wai
Commercial Building, 1-3 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong in
January 1997; to Flat B4, 12/F., Prat Mansion, 26-36 Prat Avenue, Tsimshatsui,
Kowloon, Hong Kong in January 1999; to Flat B, 13/F., Kok Pah Mansion, 58-60
Cameron Road, Tsimshatsui, Kowloon, Hong Kong in October 1999; to Room 1504,
15/F., Tung Shun Hing Commercial Centre, 20-22 Granville Road, Tsimshatsui,
Kowloon, Hong Kong in November 2005; and further moved to the present address
in July 2009.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer
and Exporter.
Lines: All
kinds of diamonds, etc.
Employees: 5. (Including associate)
Commodities Imported: India, Belgium, Israel, Thailand, US, etc.
Markets: Hong
Kong, Japan, India, the Middle East, Europe, North America, etc.
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 condition.
Facilities:
Making active
use of general banking facilities.
Payment:
Met obligations
as contracted.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Indian Overseas Bank, Hong Kong Branch.
Standing:
Good.
Presto Trade is a partnership jointly owned
by Mr. Praveen Raghunath Lodha and Mr. Varshit Jain. Both of the partners are Indian while the
latter joined in the subject on 15th August, 2005.
The subject moved to the present address in July 2009 where is an
industrial building.
The subject is trading in all kinds of diamonds, etc. It is trading in loose diamonds, white
baguette diamonds and other types of baguette diamonds, rounds, princess cuts,
marquises, pears, etc.
Commodities are imported from India, Belgium, Israel, Thailand, the
United States, etc. Finished products
are exported to Japan, India, Thailand, the Middle East, Europe, the United
States, etc. Business is rather active
and steady.
Lodha had lived in Thailand for a long time and has established business
ties with many diamond firms in Bangkok.
He moved to Hong Kong and joined in the subject in June 1991. Currently, many of the diamond firms in
Thailand are the subject’s main business partners. The following two firms in Thailand are the
associates of the subject:-
Priyaank International Co. Ltd.;
Smart Art Jewellery Ltd. [Smart Art].
Smart Art is a jewellery and diamond trader. Its main products are Sapphire Necklaces, 18K
white gold necklace, diamond necklaces, jewellery necklaces, etc. The Contact Persons of Smart Art are Manish
Saihgal and Praveen Raghunath Lodha.
The subject’s partner and manager Jain is also the Manager of King Sun
Trading which is also a jewellery product trader. King Sun Trading is a sole proprietorship set
up on 29th September, 2006 and owned by Jain.
However, King Sun Trading does not have its own operating office. Its registered address is in the residence of
Jain.
The subject’s business is chiefly handled by the two partners.
Mr. Dharmendra Mutha was a partner of the subject who retired on
31st August, 2005. Before retiring
from the subject, Dharmendra Mutha set up a diamond trading firm known as Shrey
International on 16th July, 2005.
Registered in Hong Kong, Shrey International is located at a different
address while Dharmendra Mutha is the sole proprietor.
The subject has got an associated company Splendor Diagem Ltd. located
at its operating address. Splendor
Diagem Ltd. is engaged in the same lines of business as the subject.
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 took part in
“HKTDC Hong Kong International Jewellery Show 2012” which had been held in Hong
Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of
5th to 9th March, 2013.
Smart Art will also take part in the above-mentioned exhibition in
2013. Besides, it is going to take part
in “HKTDC Hong Kong International Jewellery Show 2014” which will be held in
Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the
period of 5th to 9th March, 2014. Its
booths No. are 3D-D29 and GH-F04.
As the history of the subject in Hong Kong is over twenty-one years, on
the whole, 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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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 –
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Gem & Jewellery Export Promotion Council in its
statistical data has shown the export of polished diamonds to have increase by
28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in
February, 2012, India exported $ 1.84 billion worth of polished diamonds in
February 2013. A senior executive of GJEPC said, “Export of cut and polished
diamonds started falling month-wise after the imposition of 2 % of import duty
on the polished diamonds. But February, 2013 has given a new ray of hope to the
industry as the export of polished diamonds has actually increased by 28 %. It
means the industry is on the track of recovery and round tripping of
diamonds has stopped completely.” Demand has started coming from the US, the
UK, Japan and China. India’s polished diamond export is expected to cross $ 21
bn in 2013-14.
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The banking sector has started exercising restraint
while following prudent risk management norms when lending money to gems and
jewellery sector. This follows the implementation of Basel III accord – a
global voluntary regulatory standard on bank capital adequacy, stress testing
and market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.03 |
|
|
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.70.49 |
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.