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Report Date : |
26.12.2013 |
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 : |
· trader of all kinds of diamonds such as loose diamonds, white baguette diamonds and other types of baguette diamonds, rounds, princess cuts, marquises, pears. · subject also trades in gold jewellery studded with diamonds and colour stones. |
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No. of Employees : |
05 (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 – September 30th, 2013
|
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
|
Source : CIA |
PRESTO TRADE
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: presto@prestotrade.com.hk
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 |
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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.
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.
The Indian Chamber of Commerce Hong Kong, Hong Kong.
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: So far so good.
Commercial Morality: Satisfactory.
Bankers:-
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
· Indian Overseas Bank, Hong Kong Branch.
Standing: Very 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. They are Hong Kong ID Card holders and have
got the right to reside in Hong Kong permanently.
The
subject moved to the present address in July 2009 where is an industrial
building.
The
subject is trading in all kinds of diamonds.
It is trading in loose diamonds, white baguette diamonds and other types
of baguette diamonds, rounds, princess cuts, marquises, pears.
The
subject also trades in gold jewellery studded with diamonds and colour stones.
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:-
1. Priyaank
International Co. Ltd.;
2. 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 concern 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 2013” which had been held in Hong Kong
Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th
to 9th March, 2013.
Besides,
the subject is going to take part in “HKTDC Hong Kong International Jewellery
Show 2014” which will be held in the same Centre, Wanchai, Hong Kong during the
period of 5th to 9th March, 2014. Its
booths No. are CEC GH-A16.
The
subject is a member of The Indian Chamber of Commerce Hong Kong, Hong Kong.
The
business of the subject is chiefly handled by the two partners.
As
the history of the subject in Hong Kong is over twenty-two 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-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.
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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.61.87 |
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UK Pound |
1 |
Rs.101.10 |
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Euro |
1 |
Rs.84.65 |
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 |
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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.