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Report Date : |
07.02.2013 |
IDENTIFICATION DETAILS
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Name : |
SARAFF OVERSEAS LTD. |
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Registered Office : |
Room 611, 6/F., Rise Commercial Building, 5-11 Granville Circuit, Granville Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
25.11.2009 |
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Com. Reg. No.: |
51460617 |
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Legal Form : |
Private Limited Company |
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LINE OF BUSINESS : |
IMPORTER,
EXPORTER AND MANUFACTURER OF DIAMOND & JEWELLERY, ETC. |
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No. of Employees : |
4 |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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'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 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the 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 28 million in 2011, 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 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% 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. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. 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 |
SARAFF OVERSEAS
LTD.
Room 611, 6/F., Rise Commercial Building, 5-11 Granville Circuit, Granville Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2722 1117
FAX: 2722 1115
Managing Director: Mr. Hasti Mal
Lodha
Incorporated on: 25th November, 2009.
Organization: Private Limited Company.
Capital: Nominal: HK$1,000,000.00
Issued: HK$1,000,000.00
Business Category: Importer,
Exporter and Manufacturer.
Employees: 4.
Main Dealing Banker: BNP
Paribas, Hong Kong Branch.
Banking Relation: Satisfactory.
SARAFF OVERSEAS
LTD.
Registered Head
Office:-
Room 611, 6/F., Rise Commercial Building, 5-11 Granville Circuit,
Granville Road, Tsimshatsui, Kowloon, Hong Kong.
Associated
Companies:-
Jay Vijay Diamond Co. Ltd., Thailand.
Saraff Baby Care Product Co. Ltd., Thailand.
Saraff Biogas Energies Co. Ltd., Thailand.
Saraff Energies Ltd., Thailand.
Saraff Enterprises Co. Ltd., Thailand.
Saraff Infotech Co. Ltd., Thailand.
Sirter Plast Thai Ltd., Thailand.
51460617
1395050
Managing Director: Mr. Hasti Mal
Lodha
Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of
HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
(As per registry dated 25-11-2012)
|
Name |
|
No. of shares |
|
Saraff Jay Prakash |
|
500,000 |
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Saraff Vijay Kumar |
|
500,000 |
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|
–––––––– |
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Total: |
1,000,000 ======= |
(As per registry dated 25-11-2012)
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Name (Nationality) |
Address |
|
Hasti Mal LODHA |
Room 2A, Block A, Prat Mansion, 26-36 Prat Avenue, Tsimshatsui,
Kowloon, Hong Kong. |
|
Hitendra Ramchandra PATIL |
910,24, S V City Tower 5, 5 Flr 7, Rama III Road, Bangpongpang,
Yannawa Bangkok 10120, Thailand. |
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Kamal Manchand SINGHVI |
77/32 Sinsarhrn Tower 11Flr., Krungtonburi Road, Klongtonsai,
Klongsarn, Bangkok 10600, Thailand. |
|
Deepak Kumar AGRAWAL |
908/48 Sv City, Condominium Tower 4 8/F., Rama 3 Road Bangpongpang
Yanawa, Bangkok 10120, Thailand. |
(As per registry dated 25-11-2012)
|
Name |
Address |
Co. No. |
|
Buttar.HK Ltd. |
1/F., Mau Lam Commercial Building, 16-18 May Lam Street, Jordan,
Kowloon, Hong Kong. |
0975326 |
The subject was incorporated on 25th November, 2009 as a private limited
liability company under the Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Manufacturer.
Lines: Diamond
& jewellery, etc.
Employees: 4.
Commodities Imported: India, etc.
Markets: Hong
Kong, other Asian countries, etc.
Terms/Sales: As per contracted.
Terms/Buying: Various terms.
Nominal Share Capital: HK$1,000,000.00
(Divided into 1,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
Mortgage or Charge: (See attachment)
Profit or Loss: Made
a small profit in 2012.
Condition: Business
is normal.
Facilities: Making rather active use of
general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: BNP Paribas, Hong Kong Branch.
Standing: Normal.
Saraff Overseas Ltd. is equally-owned by Saraff Jay Prakash and Saraff
Vijay Kumar. The subject has issued one
million ordinary shares of HK$1.00 each while each of the shareholders holds
500,000 shares.
The subject is a member of the Saraff Group which is based in Thailand.
In Hong Kong, the subject is a diamond trader. It is trading in the following products:-
Loose diamonds like Marquise, Pears, Tappers, Ovals, Heart, Trillions,
Princess Cut, Emerald Cut, Bagguets and Rose Cut, Round Brilliant, Single Cut
and Fancy Cut, etc.
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 is going to
take part in “HKTDC Hong Kong International Jewellery Show 2013” which will be
held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during
the period of 5th to 9th March, 2013.
Saraff Group is engaged in diversified economy such as Plastic Products,
baby products, diamond & jewellery, information technology, new energy
products, etc.
Concerning its diamond business, the Group’s diamond business is handled
by Saraff Enterprises. Established in
1987, Saraff Enterprises has established a reputation for integrity and supply
of quality stones both in Asia and Europe.
Although Susheel Saraff has been involved in the diamond trade since
1980, Saraff Enterprises as it is today did not come into being until
1987. In the same year, it also took
over a company known as Silver Enterprises, formally located at 111/3-4 Burapa
Road, Burapabhirom district, Bangrak. In
1989, a subsidiary company called Jay Vijay Diamonds was set up and in the same
year the company moved to the heart of Bangkok’s gem and jewellery quarter at
779, Silom Road. In 1993 Saraff
Enterprises took over K. P. Associates and in 1994 the company moved to its
present address. The group has
representative in Antwerp, Belgium, the diamond capital of the world. In India there are two associated companies,
Karan Export in Surat and Rashmi Enterprises in Bombay, India.
In a move to consolidate Saraff Enterprises position, it has diversified
into investments in the manufacturing industry.
However, diamonds will remain the group’s number one priority. Saraff Enterprises generally imports from
Europe and America and sells all over Southeast Asia with emphasis on
Indonesia, Hong Kong, Singapore, Europe and America.
The subject is fully supported by the Group. History in Hong Kong is just over three
years.
On the whole, in view of the background of the subject, consider it good
for normal business engagements.
|
Date |
Particulars |
Amount |
|
04-01-2013 |
Instrument: Deed of Charge and Assignment over
Assets - Own Liabilities Property: In consideration of the Bank granting and continuing facilities to the
chargor or to any person whose liabilities to the Bank may have been or may
hereafter be guaranteed by the chargor, the Chargor, as beneficial owner
& as a continuing security for the due discharge of all liabilities,
charges, assigns, mortgages, pledges and agreed to charge & pledges to
the Bank by way of first fixed charge or mortgage and releases to the Bank
all the present & future right, title and interest of the Chargor Mortgagee: BNP Paribas, Hong Kong Branch. |
All present & future indebtedness, obligations and liabilities
owing by the chargor to the Bank |
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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The diamond jewellery industry in India today may be more than Rs 60000
mil and is rated amongst the fastest growing in the world. Indi ranks
third in the world in domestic diamond consumption.
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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 –
DIAMOND SAGA –
DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of losing
Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months
ago, they had not repaid these dues. Bankers believe many diamantaires
borrowed money during the economic downturn two years ago and diverted funds to
businesses like real estate and capital markets. Many of themselves made money
from these businesses but their diamond companies have gone sick and declared
insolvency.
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Most of the money borrowed from the banks in the name of their diamond
business has been diverted in real estate and the share market. The banks are
not in a position to seize their properties because in many cases, these were
purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.08 |
|
|
1 |
Rs.83.11 |
|
Euro |
1 |
Rs.72.01 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
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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 |
|
<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.