MIRA
INFORM REPORT
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Report Date : |
06.12.2013 |
IDENTIFICATION DETAILS
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Name : |
HONG KONG CAPITAL
CO. |
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Registered Office : |
Room 9, 12/F., Flat A2F2, Phase 2, Hang Fung Industrial Building,
2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong |
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Country : |
Hong Kong |
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Date of Incorporation : |
14.04.1994 |
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Com. Reg. No.: |
17986419-000-04 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
dealer of fine coloured diamonds including fancy coloured diamonds, unusual rose cut and briolette cut diamonds and all kinds of loose diamonds. |
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No. of Employees : |
01 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small company |
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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 – September 30th, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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
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Source : CIA |
Company name
HONG
KONG CAPITAL CO.
Company ADDRESS
Room 9, 12/F.,
Flat A2F2, Phase 2, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom,
Kowloon, Hong Kong.
PHONE: 852-2333 2407, 2311 2011
FAX: 852-2721 0173
MANAGEMENT
Manager: Mr. Rajendrakumar Jayantilal Soni
SUMMARY
Establishment: 14th April, 1994.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond Trader.
Employee: 1.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Company name
HONG KONG
CAPITAL CO.
Company ADDRESS
Head
Office:-
Room 9, 12/F., Flat
A2F2, Phase 2, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom,
Kowloon, Hong Kong.
Mailing
Address:-
P.O. Box 86207,
Tsim Sha Tsui Post Office, Kowloon, Hong Kong.
Associated
Company:-
Ronak Gems, Hong
Kong. (Same address and same owner)
BUSINESS REGISTRATION NUMBER
17986419-000-04
MANAGEMENT
Manager: Mr. Rajendrakumar Jayantilal Soni
SOLE PROPRIETOR
Name: Mr. Rajendrakumar Jayantilal SONI
Residential
Address:
14/F., Front Portion,
Ocean View Court, 25 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
HISTORY
The
subject was established on 14th April, 1994 as a sole proprietorship concern
owned by Mr. Kamlesh Jivanbhai Shah under the Hong Kong Business Registration
Regulations.
The
following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Kamlesh Jivanbhai SHAH |
14-04-1994 |
18-07-2001 |
|
Rajendrakumar Jayantilal SONI |
01-08-1994 |
04-09-1994 |
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Abdul Samad Ibrahim SOLKAR |
01-08-1994 |
20-08-1995 |
|
Prakash Kirtilal MEHTA |
17-07-2001 |
11-10-2001 |
Initially
the subject’s registered address was located at “Unit D & E, 16/F., Cameron
Plaza, 23-25A Cameron Road, Tsimshatsui, Kowloon, Hong Kong,” moved to “Room
108, 1/F., Wing On Plaza, 62 Mody Road, Tsimshatsui East, Kowloon, Hong Kong”
in September 1998; to “Flat 7 & 8, 8/F., Guardforce Centre, 3 Hok Yuen
Street East, Hunghom, Kowloon, Hong Kong” in May 2004; to “14/F., Front
Portion, Ocean View Court, 25 Chatham Road, Tsimshatsui, Kowloon, Hong
Kong” where is the residential address of the sole proprietor in July 2004; to
“Flat B, 7/F., Golden Mansion, 83-85 Chatham Road, Tsimshatsui, Kowloon, Hong
Kong” in August 2005; to “Flat F, 26/F., Block 1, Royal Peninsula, 8 Hung Lai
Road, Hunghom, Kowloon, Hong Kong” in July 2007; to “Flat D, 18/F., Block
1” of the same building in July 2008; to “Flat G, 3/F., Block 2” of the same
building in December 2009; and further moved to “Flat J, 3/F., Block 2” of the
same building in January 2010.
The
subject moved to the present address in late October 2013.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
OPERATIONS
Activities: Manufacturer, Importer and Exporter.
Lines: All kinds of diamonds
Employee: 1.
Raw Materials: India, Belgium, other European countries, etc.
Markets: Hong Kong, other Asian countries, North America, Western Europe, etc.
Terms/Sales: COD or as per contracted.
Terms/Buying: L/C, D/P, T/T, etc.
FINANCIAL INFORMATION
Capital: Not disclosed.
Profit or Loss: Making a small profit every year.
Condition: Keeping in a normal condition.
Facilities: Making fairly active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
DBS Bank (Hong Kong) Ltd., Hong Kong.
Standing: Small.
GENERAL
Hong Kong Capital Co. is a sole proprietorship owned and operated by Mr. Rajendrakumar Jayantilal Soni who is an Indian. Soni retired from the subject in September 1994 but joined in again in October 2001. Now, the subject is still controlled by him. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.
The subject’s registered address was located at “Flat J, 3/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon, Hong Kong.” This office was in a residential building. The subject moved to the present address in late October 2013. Its phone number is 852-2333 2407.
The subject’s mailing address is P.O. Box 86207, Tsim Sha Tsui Post Office, Kowloon, Hong Kong.
The subject is a diamond trader. It is dealing in fine coloured diamonds. Products include fancy coloured diamonds, unusual rose cut and briolette cut diamonds and all kinds of loose diamonds.
Diamonds are chiefly imported from India, Belgium and the other European countries, etc. Most of the commodities are polished and cut diamonds. Polished and cut diamonds are marketed in Hong Kong, exported or re‑exported to Japan, other Asian countries, Europe, the Middle East and North America. Business is rather active.
The subject is able to keep a balance account or just make a very small profit in most of the past years.
Soni is also the
sole proprietor of another diamond trading firm known as Ronak Gems. This firm was set up on 30th October, 1989
and also located at the above-mentioned address. Ronak Gems and the subject are engaged in the
same lines of business, more or less.
This firm is also a gemstone trader.
On the whole,
since the history of the subject in Hong Kong is over nineteen years, consider
it good for normal business engagements in small credit amounts.
SITE VISIT
VISITING
ADDRESS:
Room 9, 12/F., Flat A2F2, Phase 2, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
GENERAL:
Our on-site investigator proceeded a site visit to Room 9, 12/F., Flat A2F2, Phase 2, Hang Fung Industrial Building. 2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
Hunghom District is regarded to be the jewellery marketing and manufacturing centre in Hong Kong. Traditionally, jewellery shops were concentrated in crowded districts like Central and Tsim Sha Tsui. Until the early 1980s, some family-run jewellery workshops opened in Hung Hom. In the late 1980s, basically the entire jewellery industry has set up business in the Hung Hom area.
Hang Fung Industrial Building, Phase 2 was found to be a 13-storey commercial/industrial building (From G/F., 1/F. to 12/F.) with 6 units on each floor (From A2, B2, C2, D2, E2 to F2). The 12/F. equipped with one passenger elevator and 2 freight elevators.
The building directory board in the lobby (on G/F.) failing to print out the names of the occupants on 12/F.
According to the Land Registry, the details of the registered owner are as follow:-
Property Address: Flats A2 & F2, 12/F., Phase 2, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
Property Owner: Easy Winning Investment Ltd.
Date of Purchase: 30/06/2011
Purchased Amount: HK$24,800,000.00
Remarks: On 30/06/2011, this property was mortgaged to Chiyu Banking Corporation Ltd.
The visiting address is being combined by units A2 and F2 and is furnished as a business office and it can be internally divided into 18 small rooms (From Room 1 to Room 18).
The owner leased out the rooms to different companies by both long term or short term agreements.
Our on-site investigator revealed that the entrance of the premise was locked and any visitor is not allowed to enter the office without accessing the interphones.
We found that there was nobody else at the reception desk and the bell to Room 09 was no response.
According to the signboard on the left-hand side of the entrance, Room 09 should be occupied by “Ronak Gems” and “Hong Kong Capital Co.”
ANNEXES:
A) On site photos (3 pictures)
B) On site photos (3 pictures)
C) On site photos (3 pictures)
D) On site photos (3 pictures)
E) On site photos (3 pictures)
TOTAL (15 pictures)
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
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.61.69 |
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|
1 |
Rs.101.08 |
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Euro |
1 |
Rs.84.07 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
RATING EXPLANATIONS
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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 |
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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 |
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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.