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Report Date : |
23.04.2013 |
IDENTIFICATION DETAILS
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Name : |
ELEGANT JEWELLERY MFR. COMPANY |
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Registered Office : |
Room A, 10/F., Windsor Mansion, 29-31 Chatham Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
11.12.2007. |
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Com. Reg. No.: |
38740553-000-12 |
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Legal Form : |
Sole Proprietorship. |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery. |
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No. of Employees : |
2. |
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 : |
Usually Correct |
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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 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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 |
ELEGANT JEWELLERY
MFR. COMPANY
ADDRESS: Room A, 10/F., Windsor
Mansion, 29-31 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2312 2104
Manager: Mr. Yudhistir Kumar
Janki Prasad Sharma
Establishment: 11th
December, 2007.
Organization: Sole
Proprietorship.
Capital:
Not
disclosed.
Business Category: Jewellery trader.
Employees:
2.
Main Dealing Banker: Industrial & Commercial Bank of China (Asia) Ltd., Hong
Kong.
Banking Relation: Satisfactory.
Head Office:-
Room A, 10/F., Windsor Mansion, 29-31 Chatham Road, Tsimshatsui,
Kowloon, Hong Kong.
Mailing Address:-
Tsimshatsui P O Box 97131, Tsimshatsui, Kowloon, Hong Kong.
38740553-000-12
Manager: Mr. Yudhistir Kumar Janki
Prasad Sharma
Name: Mr. Yudhistir Kumar Janki
Prasad SHARMA
Residential Address: 1/8 Kanji
Mistry Building, Shanghai Estate, L.B.S Marg Ghatkopar(W), Mumbai086, India.
The subject was established on 11th December, 2007 as a sole
proprietorship concern owned by Mr. Yudhistir Kumar Janki Prasad Sharma under
the Hong Kong Business Registration Regulations.
At the very beginning, the subject was located at Room A, 3/F., Wah Fung
Building, 17-23 Minden Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to Room
603, 6/F., Workingport Commercial Building, 3 Hau Fook Street, Tsimshatsui,
Kowloon, Hong Kong in November 2012 and further to the present address in
February 2013.
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.
Employees: 2.
Commodities Imported: India, Belgium, US, etc.
Markets: Hong
Kong, China, other Asian countries, Europe, North America, etc.
Terms/Sales:
L/C or as per
contracted.
Terms/Buying: L/C,
T/T, D/P, etc.
Capital: Not
disclosed.
Profit or Loss: Making
a very small profit in the past three years.
Condition: Business
has been normal.
Facilities: Making
rather active use of general banking facilities.
Payment:
Met trade
commitments as required.
Commercial Morality: Satisfactory
Banker: Industrial & Commercial Bank of China
(Asia) Ltd., Hong Kong.
Standing:
Small.
Elegant Jewellery Mfr. Company is a sole proprietorship set up and owned
by Mr. Mr. Yudhistir Kumar Janki Prasad Sharma who is an Indian. Being the manager of the subject, he is an
India passport holder and does not have the right to reside in Hong Kong
permanently.
The subject commenced business in December 2007.
The subject’s registered address is in a private building located at
Room A, 10/F., Windsor Mansion, 29-31 Chatham Road, Tsimshatsui, Kowloon,
Hong Kong. This is the residence of
Sharma when he is in Hong Kong.
The residential building is not trespassed by outsiders. The subject has one or two employees in Hong
Kong.
The phone number of the subject is 852-2312 2104. However, this line has been transferred to a
mobile phone No. 9679 7996 which belongs to Sharma or a representative of the
subject. Eventually, we can reach the
subject at the given phone number.
The subject is a diamond importer, exporter and wholesaler. It is trading in loose, polished and cut
diamonds. It also trades in
jewellery. Most of the commodities are
imported from India, Belgium, the United States, etc. Prime markets are Hong Kong, China, Thailand
and the other Asian countries, Belgium, the United States. Business is fairly active.
The subject’s business is chiefly handled by Sharma himself. History in Hong Kong is over five years.
Since the registered office of the subject is in a residential building,
on the whole, consider it good for normal business engagements on L/C basis or
in small credit amounts.
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.54.17 |
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UK Pound |
1 |
Rs.82.45 |
|
Euro |
1 |
Rs.70.70 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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>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 |
|
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 |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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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.