MIRA INFORM REPORT

 

 

Report Date :

08.02.2013

 

IDENTIFICATION DETAILS

 

Name :

PALADONE  TRADING  AND  MANUFACTURER

 

 

Registered Office :

Flat 310, 3/F., Kiu Fung Mansion, 18 Austin Avenue, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong.

 

 

Date of Incorporation :

19.01.2010

 

 

Com. Reg. No.:

51695741-000-01

 

 

Legal Form :

Sole Proprietorship.

 

 

LINE OF BUSINESS :

IMPORTER, EXPORTER AND WHOLESALER OF ALL KINDS OF DIAMONDS AND JEWELLERY PRODUCTS, ETC.

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

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

 

Status :

No operating office in Hong Kong

Payment Behaviour :

Unknown

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

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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.

 

Source : CIA

 

 

 

 

 

 

 

                                                                                    


 

Company name & address

 

PALADONE  TRADING  AND  MANUFACTURER

 

 

ADDRESS:             Flat 310, 3/F., Kiu Fung Mansion, 18 Austin Avenue, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:                  2368 4414,  6160 9140

 

MANAGEMENT

 

Manager:  Mr. Hasti Mal Lodha

 

SUMMARY

 

Establishment:         19th January, 2010.

 

Organization:             Sole Proprietorship.

 

Capital:                      Not disclosed.

 

Business Category:     Diamond Trader.

 

Employees:                 Nil.

 

Main Dealing Banker:  The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:          Satisfactory.


 

Company ADDRESS

 

Head Office:-

Flat 310, 3/F., Kiu Fung Mansion, 18 Austin Avenue, Tsimshatsui, Kowloon, Hong Kong.

 

Associated Companies

 

Saraff Overseas Ltd.

Room 611, 6/F., Rise Commercial Building, 5-11 Granville Circuit, Granville Road, Tsimshatsui, Kowloon, Hong Kong.

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.

 

BUSINESS REGISTRATION NUMBER

 

51695741-000-01

 

MANAGEMENT

 

Manager:  Mr. Hasti Mal Lodha

 

SOLE PROPRIETOR

 

Name:  Mr. Hasti Mal LODHA

Residential Address:Flat 2, 4/F., Block A, Prat Mansion, 26-36 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong.

 

HISTORY

The subject was established on 19th January, 2010 as a sole proprietorship concern owned by Mr. Hasti Mal Lodha under the Hong Kong Business Registration Regulations.

Formerly the subject was located at Flat 2, 4/F., Block A, Prat Mansion, 26‑36 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in October 2011.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                                    Importer, Exporter and Wholesaler.

 

Lines:                                       All kinds of diamonds and jewellery products, etc.

 

Employees:                                  Nil.

 

Commodities Imported:               India, other Asian countries, etc.

 

Markets:                                     Hong Kong, Japan, other Asian countries, etc.

 

Terms/Sales:                              L/C, T/T, etc.

 

Terms/Buying:                            L/C, T/T, D/P, etc.

 

FINANCIAL INFORMATION

 

Capital:                   Not disclosed.

 

Profit or Loss:          Made very small profit in 2012.

 

Condition:                Business is under development.

 

Facilities:                Making fairly active use of general banking facilities.

 

Payment:                Met trade commitments as required.

 

Commercial Morality:  Satisfactory.

 

Banker:                   The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:                Small.

 

GENERAL

 

Paladone Trading And Manufacturer is a sole proprietorship set up and owned by Mr. Hasti Mal Lodha who is an Indian.  He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.

Lodha is also the manager of the subject.

Business commenced in January 2010, the subject is a jewellery and diamond trader.

The subject’s registered address located at Flat 310, 3/F., Kiu Fung Mansion, 18 Austin Avenue, Tsimshatsui, Kowloon, Hong Kong where is the new residential address of Lodha.  The subject moved to this new address in October 2011

The subject’s telephone number is 2368 4414.  Lodha can also be reached at his mobile phone number 6160 9140.

Mr. Hasti Mal Lodha is also the Managing Director of Saraff Overseas Ltd. [Saraff] which is located at a different address.

Saraff is equally-owned by Saraff Jay Prakash and Saraff Vijay Kumar.  It has issued one million ordinary shares of HK$1.00 each while each of the shareholders holds 500,000 shares.

Saraff is a member of the Saraff Group which is based in Thailand.

In Hong Kong, Saraff 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.

The business of Saraff is also handled by Lodha.

The subject has no employees in Hong Kong.

It is also a diamond importer, exporter and wholesaler.  It is the supplier, importer and exporter of versatile range of diamonds in a wide variety like rose cut diamonds, rose cut heart, rose cut round, rose cut pears, rose cut oval, rose cut marquise, fancy cut and fancy colour diamonds, briollets beads, old mine cut diamonds round brilliant cut diamonds, marquise, pears ,oval, heart, emeralad, etc.  Most of the commodities are imported from India and other Asian countries.  Prime markets are Hong Kong, Japan, other Asian countries, etc.  Business is still under development.

The commodities carried by the subject is the same as Saraff which was registered in Hong Kong.  Saraff was incorporated on 25th November, 2009.

The subject’s business is handled by Lodha himself.  Being a one-man company, the subject is a small firm also engaged in making investments.

The subject’s history in Hong Kong is just over three years.

On the whole, since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on L/C basis.

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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.

-          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.

-          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.

-          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.

-          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.

-          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.

-          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.

-          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.53.14

UK Pound

1

Rs.83.26

Euro

1

Rs.71.93

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.