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Report Date : |
17.12.2013 |
IDENTIFICATION DETAILS
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Name : |
BEST SHINE LTD. |
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Registered Office : |
Unit 309, 3/F., Guardforce Centre, |
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Country : |
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Date of Incorporation : |
08.09.2006 |
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Com. Reg. No.: |
37507029 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Diamond and Jewellery Trader of all kinds of diamonds and jewellery
products, emerald, precious stones |
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No. of Employees : |
13 |
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 – 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 |
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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 |
BEST
SHINE LTD.
Unit 309, 3/F., Guardforce
Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2311 2011
FAX: 852-2721 0173
E-MAIL: hk@cmahendra.com.hk
lowin@cmahendra.com.hk
Managing
Director: Mr. Prakash Kirtilal Mehta
Incorporated on: 8th September, 2006.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$1.00
Business Category: Diamond and Jewellery Trader.
Group Revenue: INR 41,706,763,253 (Year ended 31-03-2013)
Employees: 13. (Including associates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
BEST
SHINE LTD.
Registered
Head Office:-
Unit 309, 3/F.,
Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
Holding
Company:-
C. Mahendra BVBA,
Belgium.
Ultimate
Holding Company:-
C. Mahendra
Exports Ltd., India.
Wholly-owned
subsidiary:-
International Gems
& Jewellery FZE, UAE.
Associated
Companies:-
CM Group of Companies
Al Daspa Gems & Jewellery FZE, UAE.
C. Mahendra (NY) LLC., U.S.A.
C. Mahendra (USA) Inc., U.S.A.
C. Mahendra DMCC, UAE.
C. Mahendra Exports (H.K.) Ltd., Hong Kong.
C. Mahendra Trading, India.
Ciemme (NY) LLC., U.S.A.
Ciemme Jewels Ltd., India.
37507029
1072855
Managing
Director: Mr. Prakash Kirtilal Mehta
Contact
Person: Ms. Ma Kam Lin, Lowin
Nominal Share Capital:
HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share
Capital: HK$1.00
(As per registry dated 08-09-2013)
|
Name |
|
No.
of share |
|
C. Mahendra BVBA Hoveniersstraat 30, Office 665, Post Box 250, Adh Building, 2018
Antwerp Belgium. |
|
1 = |
(As per registry dated 08-09-2013)
|
Name (Nationality) |
Address |
|
Prakash Kirtilal
MEHTA |
Room 807-808, 8/F., Guardforce Centre, 3 Hok
Yuen Street East, Hunghom, Kowloon, Hong Kong. |
(As per registry dated 08-09-2013)
|
Name |
Address |
Co.
No. |
|
Buttar.HK
Ltd. |
1/F., Mau Lam Commercial Building, 16‑18 Mau Lam Street,
Jordan, Kowloon, Hong Kong. |
0975326 |
The
subject was incorporated on 8th September, 2006 as a private limited liability
company under the Hong Kong Companies Ordinance.
Formerly
the subject was located at Unit 807-808, 8/F., Guardforce Centre, 3 Hok
Yuen Street East, Hunghom, Kowloon, Hong Kong, moved to the present address in
March 2013.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Diamond and Jewellery Trader.
Lines: All kinds of diamonds and jewellery products, emerald, precious stones.
Employees: 13. (Including associates)
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan, India, other Asian countries, etc.
Group Revenue: INR 33,661,205,405 (Year ended 31-03-2011)
INR 35,100,756,250 (Year ended 31-03-2012)
INR 41,706,763,253 (Year ended 31-03-2013)
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/A, etc.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$1.00
Group Profit: INR 1,574,024,367 (Year ended 31-03-2011)
INR 1,608,181,371 (Year ended 31-03-2012)
INR 1,583,510,900 (Year ended 31-03-2013)
Profit or Loss: Operation is profitable.
Condition: Maintaining in an active condition.
Facilities: Making active use of general banking facilities.
Payment: Met as contracted.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Hang Seng Bank Ltd., Hong Kong.
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Standing: Good.
Best
Shine Ltd. is a wholly-owned subsidiary of C. Mahendra BVBA which is a
Belgium-based firm. The ultimate holding
company of the subject C. Mahendra Exports Ltd. [C. Mahendra Exports] is
an India-registered and based firm. It
has become a listed firm since 20th January, 2011.
The
subject holds 100% stake in International Gems & Jewellery FZE, a UAE-based
company.
The
subject is a diamond and jewellery product trader. Raw materials such as polished and cut
diamonds are imported from India, Belgium and the other European countries,
etc. Some of the raw diamonds are
polished or processed in Hong Kong.
Finished products and polished diamonds are exported or re‑exported
to Japan, India and other Asian countries.
The
subject has had an associated company C. Mahendra Exports (H.K.) Ltd., a Hong
Kong-registered company located at the same address.
The
subject is trading in the products of C. Mahendra Exports.
C.
Mahendra Exports, a renowned and trusted name since 1974, is one of the leading
diamantaire and jewellery company which has a wide presence throughout the
world. This firm was jointly set up by
Mr. Mahendra Shah and Mr. Champak Mehta in 1974. The managing director of the subject
Mr. Prakash Kirtilal Mehta is a family member of Champak Mehta.
C.
Mahendra Exports has had its first factory which was set up in 1993 and located
in Surat, India. C. Mahendra Exports is
a Sightholder of Diamond Trading Company [DTC].
In 2006, C. Mahendra Exports improved the technology of the
manufacturing factory at Varachha Road, Surat, India to manufacture large size
polished diamonds. Now, the total
employees of the factories affiliated with C. Mahendra Exports are around 3,000
people.
C.
Mahendra Exports has its main head office in Mumbai, India, from where all the
marketing and finance operations are controlled. The entire operation for manufacturing is
controlled and managed from the Surat office.
Besides
Hong Kong, C. Mahendra Exports has set up associates in 6 countries: Mainland
China (Shanghai), Thailand (Bangkok), India (Mumbai, Delhi, Kolkatta), United
Arab Emirates (Dubai), Belgium (Antwerp), and the United States.
Today,
C. Mahendra Exports has had a number of affiliated companies and has become a
group collectively known as “CM Group”.
The flagship company of the CM Group is C. Mahendra Exports.
C.
Mahendra Exports’ jewellery factory has got ISO 9001 certification, while its
diamond manufacturing unit is ISO 9002 certified. The diamond factory polishes rough diamonds
into different popular shapes like brilliant, baquette, taper, princess-cut,
marquise, pear-shaped, etc.
Major
markets include China, Thailand, Singapore, Europe and the United States.
For
the year ended 31st March, 2013, the revenue of C. Mahendra Exports amounted to
INR 41,706.8 million (2012: INR 35,100.8 million), grew by 18.8%. Profit for the year was INR 1,583.5 million
(2012: INR 1,608.2 million), decreased by 1.5%.
CM
Group is able to source raw materials from steady suppliers. According to the Group, it enjoys a
significant position in the diamond industry as being “one of the top exporters
with an unblemished client record”. The
annual sales turnover of the Group is rather large and business is profitable.
The
subject’s business is chiefly handled by Mr. Prakash Kirtilal Mehta who is an
India passport holder as well as a Hong Kong ID Card holder. He has got the right to reside in Hong Kong
permanently.
The
subject is fully supported by the CM Group.
The
history of the subject is over seven years in Hong Kong. On the whole, consider it good for normal
business engagements.
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.
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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.
-
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 –
-
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.62.10 |
|
|
1 |
Rs.101.27 |
|
Euro |
1 |
Rs.85.42 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.