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Report Date : |
28.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
H. D. IMPEX |
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Registered Office : |
Flat E, 10/F., South Sea Mansion, 81 Chatham Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
06.05.2005 |
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Com. Reg. No.: |
35595080-000-05 |
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Legal Form : |
Partnership Concern |
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Line of Business : |
trader of loose diamonds, emerald, precious stones, ruby jade, gem sets, semi-precious stones, blue or coloured sapphire, Tanzanite. |
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No. of Employees : |
Not available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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
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
H. D.
IMPEX
ADDRESS: Flat E, 10/F., South Sea
Mansion, 81 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2317 6200
FAX: 852-2317 6600
E-MAIL: hdimpex@live.com
Manager: Mr. Hareshkumar
Rhjmalbhai Shah
Establishment: 6th
May, 2005.
Organization: Partnership.
Capital:
Not
disclosed.
Business Category: Diamond Trader.
Annual Turnover: HK$40~45
million.
Employees:
Nil.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Flat E, 10/F., South Sea Mansion, 81 Chatham Road, Tsimshatsui, Kowloon,
Hong Kong.
China Factory:-
H. D. Impex Jewellery Factory
Shenzhen Special Economic Zone, China.
[Fax: 86-755-2547 0032]
Associated Concern :-
H. Diam HK Ltd.
Room 1501, 15/F., Workingport Commercial Building, 3 Hau Fook Street,
Tsimshatsui, Kowloon, Hong Kong.
35595080-000-05
Manager: Mr. Hareshkumar
Rhjmalbhai Shah
(Mobile: 852-6127 6882)
Name: Mr. Hareshkumar Rhjmalbhai
SHAH
Residential Address: Flat D,
7/F., Luxury Court, 9 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong.
Name: Mr. Pritesh Nandkumar
MISTRY
Residential Address: Flat D,
7/F., Luxury Court, 9 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 6th May, 2005 as a partnership concern
jointly owned by Mr. Hareshkumar Rhjmalbhai Shah and Mr. Pritesh Nandkumar
Mistry under the Hong Kong Business Registration Regulations. On 6th July, 2007, Mr. Dinesh Dhanjibhai
Italiya joined in as a partner making up three in total. However, the last retired on 15th July, 2011.
At the very beginning, the subject was located at Flat D, 7/F., Luxury
Court, 9 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong, moved to
Room 1811, 18/F., Rise Commercial Building, 5-11 Granville Circuit,
Tsimshatsui, Kowloon, Hong Kong in July 2007; moved to Flat A, 7/F., Shun Fai
Building, 64-66A Kimberley Road, Tsimshatsui, Kowloon, Hong Kong in July 2008;
and further to Room H, 13/F., Block E, Phase 1, Golden Lion Garden, 1-3 Kak Tin
Street, Shatin, New Territories, Hong Kong where was the subject’s operating
address in 2009. However, its registered
address was still located at Flat A, 7/F., Shun Fai Building, 64-66A Kimberley
Road, Tsimshatsui, Kowloon, Hong Kong.
The subject moved to Flat 9A, 9/F., Ka Wing Building, 27 Granville Road,
Tsimshatsui, Kowloon, Hong Kong in May 2010 and further to the present address
in April 2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of Diamonds.
Employees: Nil.
Commodities Imported: India, Belgium and other European countries.
Markets: Japan,
Southeast Asia, Europe, Middle East, etc.
Annual Turnover: HK$40~45 million.
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 in the past years.
Condition:
Business is
normal.
Facilities: Making rather active use of general banking
facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Banker:
The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Standing:
Small.
H. D. Impex is a partnership jointly owned by two Indian: Mr. Hareshkumar Rhjmalbhai Shah and Mr. Pritesh Nandkumar Mistry. The former is an India passport holders while the latter is a HK ID Card holder and has got the right to reside in Hong Kong permanently.
The subject’s
latest operating address is located at Flat E, 10/F., South Sea Mansion, 81
Chatham Road, Tsimshatsui, Kowloon, Hong Kong where is the residence of the
Indian partners. It is likely that the
partners have moved to this new address but does not update its registration
materials filed with the Hong Kong Government. They moved to this new address in April 2011.
Business commenced
in May 2005, the subject is a diamond importer, exporter and wholesaler. It is trading in loose diamonds, emerald,
precious stones, ruby jade, gem sets, semi-precious stones, blue or coloured
sapphire, Tanzanite. Most of the raw materials
and products are imported from India.
Finished products and polished diamonds are exported or re-exported to
Japan, other Asian countries, the Middle East, the United States, etc.
The manager of the
subject, Hareshkumar Rhjmalbhai Shah can be reached at his China mobile phone
number 0086-13143455759 or Hong Kong mobile phone number 852‑6127 6882
while Pritesh Nandkumar Mistry can be reached at his Hong Kong mobile phone
number 852-6127 6614.
According to
Hareshkumar Rhjmalbhai Shah, the subject has got an affiliated factory in
Shenzhen Special Economic Zone, China known as H. D. Impex Jewellery
Factory. The factory is employing about
70 persons. Most of the time, Hareshkumar
Rhjmalbhai Shah is stationing at his China factory.
The subject is
exporting the products of the China factory while raw materials are imported
from India. The annual sales turnover of the subject ranges from HK$40 to 45
million. Making a small profit every
year. Business keeps on improving.
Besides operating
the subject, Pritesh Nandkumar Mistry is also the sole shareholder of H. Diam
HK Ltd. which is located at a different address. Incorporated on 9th June, 2010, H. Diam HK
Ltd. is also a diamond trader.
In order to
penetrate the international market further, H. Diam HK Ltd. 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 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 booth No. is
3E-G41.
The history of the
subject in Hong Kong is over eight years.
On the whole,
consider the subject good for normal business engagements in moderate credit
amounts.
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.
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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.
-
Utmost caution is to be exercised while dealing with some medium and
large diamond traders which are usually engaged in fictitious import – export,
inter-concern 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 –
-
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.
-
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.65.67 |
|
UK Pound |
1 |
Rs.102.20 |
|
Euro |
1 |
Rs.87.75 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.