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Report Date : |
30.12.2013 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Flat B, 11/F., |
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Country : |
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Date of Incorporation : |
11.03.2008 |
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Com. Reg. No.: |
39066219 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of jewellery and diamond products |
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No. of Employees : |
04 |
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 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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Hong Kong |
A2 |
A2 |
|
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 |
KOWLOON RESOURCES AND
SUPPLIES LTD.
ADDRESS: Flat B, 11/F., Cameron Plaza, 23-25 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2522 3014~5, 2524 0842
FAX: 852-2845 3821
E-MAIL: gare10@hotmail.com
Managing Director: Mr. Gautam Shantilal Jhaveri
Incorporated on: 11th March, 2008.
Organization: Private Limited Company.
Capital: Nominal:HK$10,000.00
Issued: HK$100.00
Business Category: Diamond Trader.
Employees: 4. (Including associate)
Main Dealing Banker: Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Flat B, 11/F., Cameron Plaza, 23-25 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
* Arihant Enterprise Ltd., Hong Kong.
London Star Diamond Co., India.
* One Six Ltd., Hong Kong.
* Surya Star Ltd., Hong Kong. (Dissolved by Deregistered)
* Vijay Orient Star Ltd., Hong Kong.
(* Same address)
39066219
1216892
Managing Director: Mr. Gautam Shantilal Jhaveri
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$100.00
SHAREHOLDER: (As per registry dated 11-03-2013)
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Name |
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No. of shares |
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Holdas Nominees Ltd, Hong Kong. |
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100 === |
DIRECTOR: (As per registry dated 11-03-2013)
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Name (Nationality) |
Address |
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Gautam Shantilal JHAVERI |
Flat F, 8/F., King Cheung Mansion, 5 King Kwong Street, Happy Valley, Hong Kong. |
SECRETARY: (As per registry dated 11-03-2013)
|
Name |
Address |
Co. No. |
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Benta Nominees Ltd. |
20/F., Tung Wai Commercial Building, |
0042671 |
The subject was incorporated on 11th March, 2008 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Flat C, 12/F., Block 5, Greenfield Garden, Tsing Yi, New Territories, Hong Kong, moved to the present address in October 2012.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of jewellery and diamond products.
Employees: 4. (Including associate)
Commodities Imported: India, Europe, other Asian countries, etc.
Markets: Japan, South Korea, Southeast Asia, Europe, Middle East, etc.
Terms/Sales: L/C, T/T or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$100.00
Profit or Loss: Making a small profit every year.
Condition: Keeping in an active and steady condition.
Facilities: Adequate for current running.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Standing: Small.
Having issued 100 ordinary shares of HK$1.00 each, Kowloon Resources And Supplies Ltd. is wholly owned by Holdas Nominees Ltd. which is a Hong Kong-registered nominee firm.
The only director of the subject Mr. Gautam Shantilal Jhaveri is an Indian who has been in Hong Kong for a very long time. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.
The subject has got an affiliated company known as Vijay Orient Star Ltd. [VOSL] which is located at the same address in Hong Kong. The subject and VOSL are engaged in the same lines of business. Incorporated on 28th April, 1978, VOSL is jointly owned by Jhaveri, Mr. David Klagsbrun, Mr. Pradyot R. Kothari and Mr. Renuka Galitam Jhaveri. The second has passed away while the third is residing in Antwerp, Belgium. All the shareholders are Indian.
The subject’s business is chiefly handled by Mr. Gautam Shantilal Jhaveri and Mr. Renuka Galitam Jhaveri. The latter is a family member of the former.
The subject and VOSL are trading in the following products:-
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Product/Service |
Product/Service Remarks |
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Fine Jewellery |
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Precious and Semi-Precious Jewellery |
From India (Importer) |
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Jewellery – Semi-Precious Stone |
From India (Importer) From India (Exporter) |
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Jewellery – Platinum |
From India (Importer) From India (Exporter) |
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Jewellery – Pearl |
From India (Importer) From India (Exporter) |
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Jewellery – Gemset |
From India (Importer) From India (Exporter) |
The subject’s products include loose diamonds like marquise, pears, tappers, buggets and rose cut diamonds range from 0.05 cts to 0.60 cts. Most of the subject’s commodities are imported from India. After processing in Hong Kong or China, the subject’s jewellery products are exported to India, Japan, South Korea, Southeast Asia, Europe, the Middle East, etc. Business has been improving. It seems that Belgium has been a significant market of the subject.
Another associated company Arihant Enterprise Ltd. is also located at the same address. This company was incorporated on 28th October, 1975 and is also operated by Gautam Shantilal Jhaveri.
Besides, the subject has had an associated company known as London Star Diamond Co. [London Star] in India. It is likely that London Star is the subject’s main supplier.
The subject has been a significant and old polished diamond exporter and wholesaler. History in Hong Kong is over five years. Regular suppliers and customers have been maintained.
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-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 |
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US Dollar |
1 |
Rs.62.06 |
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1 |
Rs.102.03 |
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Euro |
1 |
Rs.85.27 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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 |
-- |
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.