|
Report Date : |
18.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
K. GIRDHARLAL
(HONG KONG) LTD. |
|
|
|
|
Registered Office : |
Room 916, 9/F., Peninsula Square, West Wing, 18 Sung On Street,
Hunghom, Kowloon |
|
|
|
|
Country : |
Hong Kong. |
|
|
|
|
Date of Incorporation : |
06.03.2000 |
|
|
|
|
Com. Reg. No.: |
30774948 |
|
|
|
|
Legal Form : |
Private Limited
Company. |
|
|
|
|
Line of Business : |
Importer, Exporter
and Wholesaler of all kinds of diamonds, precious stones, etc |
|
|
|
|
No. of Employees : |
5. (Including associates) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
|
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 |
K. GIRDHARLAL
(HONG KONG) LTD.
ADDRESS: Room 916, 9/F., Peninsula Square, West
Wing, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2311 6551
FAX: 2311 6553
E-MAIL: hongkong@kgirdharlal.com
rushabh@kgirdharlal.com
kghk@kgirdharlal.com
Managing
Director: Mr. Ajesh Dineshchandra Shah
Incorporated
on: 6th March, 2000.
Organization: Private
Limited Company.
Capital: Nominal: US$2,000,000.00
Issued: US$2,000,000.00
Business
Category: Diamond Trader.
Employees: 5. (Including associates)
Main Dealing
Banker: Hang Seng Bank Ltd.,
Hong Kong.
Banking Relation: Satisfactory.
COMPANY ADDRESS
Registered
Head Office:-
Room 916, 9/F.,
Peninsula Square, West Wing, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.
Affiliated/Associated Companies
Ace Carat Trading
Co., Hong Kong.
Aspeco NV, Belgium.
BLH-KG Diamonds
(China) Co. Ltd., China.
Diamantina S.A.,
Luxembourg.
K. Girdharlal
Diamonds (India) Pvt. Ltd., India.
K. Girdharlal
DMCC, UAE.
K. Girdharlal
Inc., USA.
K. Girdharlal
International Pvt. Ltd., India.
K. Girdharlal,
India.
Lidya BLH (HK) Co.
Ltd., Hong Kong. (Same address)
Pal Impex Company,
Hong Kong. (Same address)
30774948
0706922
Managing
Director: Mr. Ajesh Dineshchandra Shah
Contact
Person: Mr. Anthony Yim
Nominal Share
Capital: US$2,000,000.00 (Divided into 295,000 Ordinary shares and 1,705,000
Preference shares of US$1.00 each)
Issued Share
Capital: US$2,000,000.00
(As per registry dated 06-03-2012)
|
Name |
|
No.
of shares |
|
|
|
|
Ordinary |
Preference |
|
K. Girdharlal Diamonds (India) Pvt. Ltd. 1003,
Panchratna, M.P. Marg, Opera House, Mumbai-400004, India. |
|
249,999 |
- |
|
Vinodkumar
Gautamlal SHAH |
|
1 |
- |
|
K. Girdharlal 1003, Panchratna,
M.P. Marg, Opera House, Mumbai-400004, India. |
|
- |
1,450,000 |
|
Diamantina S.A. 1 Rue de la
Chapelia, L-1325, Luxembourg. |
|
45,000 |
255,000 |
|
|
|
––––––– |
–––––––– |
|
|
Total: |
295,000 ====== |
1,705,000 ======= |
(As per registry dated 06-03-2012)
|
Name (Nationality) |
Address |
|
Vinodkumar
Gautamlal SHAH |
2, Bhaswan Building, 247 Walkeshwar Road,
Mumbai-400006, India. |
(As per registry dated 06-03-2012)
|
Name |
Address |
Co.
No. |
|
Taxbase
Consultants Ltd. |
Room 1426, 14/F., Hollywood Plaza, 610 Nathan Road, Kowloon, Hong
Kong. |
0411324 |
The
subject was incorporated on 6th March, 2000 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 Wholesaler.
Lines: All
kinds of diamonds, precious stones, etc.
Employees: 5. (Including affiliate)
Commodities
Imported: India, other Asian
countries, Belgium, etc.
Markets: Singapore, Thailand,
Taiwan, other Southeast Asian countries, US, Belgium, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share
Capital: US$2,000,000.00 (Divided into 295,000 Ordinary shares and 1,705,000
Preference shares of US$1.00 each)
Issued Share
Capital: US$2,000,000.00
Mortgage or
Charge: (See attachment)
Profit or Loss:
Making a small profit every year.
Condition: Keeping in a satisfactory condition.
Facilities: Making active use of general banking
facilities.
Payment: Met trade commitments as contracted.
Commercial
Morality: Satisfactory.
Bankers:-
Hang Seng Bank
Ltd., Hong Kong.
ABN AMRO Bank
N.V., Hong Kong Branch.
Standing: Good.
K.
Girdharlal (Hong Kong) Ltd. is 12.5% owned by K. Girdharlal Diamonds (India) Pvt.
Ltd. which is an India-based firm. The
subject is chiefly owned by K. Girdharlal [KG], also an India firm holding
72.5%; the remain 15.0% is held by Diamantina S.A., a Luxembourg-based firm.
The
subject is a diamond and gemstone trader.
It has got an affiliated company in Hong Kong known as Pal Impex Company
which is also a diamond trader. The
subject is chiefly owned and operated by the Shah family.
The
subject has had a main associated company Lidya BLH (HK) Co. Ltd. [Lidya]
located at its operating address. Lidya
is also owned and operated by the Shah family.
Currently,
the subject is trading in the following significant products:-
·
All Kinds of Loose Diamonds;
·
Carate-Size Diamond;
·
Certificated Diamond;
·
Diamond Studded Bangle; &
·
Single Diamond.
The
subject is an associate of a major diamond-manufacturing group in Mumbai in
India — K. Girdharlal International Pvt. Ltd. [KGIP] — which is a sightholder
of the Diamond Trading Company. In about
2001, KGIP in India took the initiative in diversifying into jewellery
manufacturing and exporting its jewellery products. Now, KGIP is engaged in manufacturing all
kinds of cut and polished diamonds and its products have been exported to
worldwide countries.
KGIP
is also one of the largest Indian exporters of polished diamonds. It is renowned for fancy cut diamonds in
particular, but also has a repertoire of polished diamonds to offer, from 0.01¢
to 5.00¢ in round, ideal and hearts and arrows.
KGIP was one of the first companies to produce an ideal cut princess
diamond. With an enviable record in
manufacturing its newest factory boasts of state-of-the-art technology, KGIP
recently has ventured into jewellery manufacturing and has reaped more
accolades from the industry.
Another
firm belongs to the KG Group known as KG is also significant. Based in Surat, India, KG was formed in the
mid-60s and has adopted the present style since 1967.
Over
the past four decades, KG has established a presence throughout the diamond
value chain: rough sourcing, cutting and polishing, polished trading, jewellery
manufacturing and haute joaillerie.
KG
employs over 3,000 people worldwide and has a distribution network that covers
every diamond consuming market: Antwerp (Europe), Dubai (the Middle East), Hong
Kong (Asia Pacific Region), Mumbai (India), New York (Americas), and Shanghai
(Mainland China).
In
1985, KG set up an office in Antwerp, Belgium which is the first overseas sales
office of KG. In 1988, KG began diamond
manufacturing in Surat, India. In 1998,
KG set up K. Girdharlal Inc. in New York, the United States. In November 2005, K. Girdharlal DMCC in
Dubai was opened. In November 2006, KG’s
new jewellery factory in Mumbai, India commenced business. KG is one of the key members of the KG Group.
The
subject enjoys the support of this strong production capacity of fine-make
diamonds and continues to focus its efforts on marketing loose diamonds and
upgrading services to its customers in Southeast Asia. The subject exports its products to the Asian
countries and has formed a strategic alliance with a well-established diamond
wholesaler in China. Sales offices have
been set up in Shenzhen Special Economic Zone, Shanghai and Beijing.
The
subject has upgraded the craftsmanship and skills of its workers as well as
polishing equipment at its factories in India.
It is supplying diamonds of fine make, which include quite substantial
quantities of hearts-and-arrows diamonds, to its customers regularly. Prime markets are the Greater China region,
Singapore, Malaysia and Indonesia.
Business is rather active.
The
annual sales turnover of the KG Group is very significant.
The
Group is not only one of the largest manufacturers by carat volume but also is
one of the largest firms in sales turnover.
The
subject is supported by KG Group and ultimately by the Shah family. The CEO of KGIP is Kishorlal Shah.
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.
The
contact person of the subject Mr. Anthony Yim is a Hongkongnese.
The
history of the subject in Hong Kong is about thirteen years.
On
the whole, consider it good for normal business engagements.
Property
information of the company:-
1. Property Location: Flat B on 18/F. of Block 7, Parc Palais, 18 Wylie Road,
Kowloon, Hong Kong.
Owner: K. Girdharlal (Hong Kong) Ltd.
Date of
Purchase: n.a.
Purchased
Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
07-07-2006 |
HK$5,740,000 |
Hang Seng Bank Ltd., Hong Kong. |
Legal charge to secure general banking facilities |
2. Property Location: Flat C on 18/F. of Block 7, Parc Palais, 18 Wylie Road,
Kowloon, Hong Kong.
Owner: K. Girdharlal (Hong Kong) Ltd.
Date of Purchase: n.a.
Purchased
Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
27-06-2006 |
HK$5,789,000 |
Hang Seng Bank Ltd., Hong Kong. |
Legal charge to secure general banking facilities |
|
Date |
Particulars |
Amount |
|
27-06-2006 |
Instrument: Legal
Charge Property: 194/341,874th parts or shares of and in
Kowloon Inland Lot No. 11118 (Flat C on 18/F. of Block 7 of Parc Palais, 18
Wylie Road, Kowloon, Hong Kong.) Mortgagee: Hang
Seng Bank Ltd., Hong Kong. |
HK$5,789,000 |
|
07-07-2006 |
Instrument: Legal
Charge Property: 181/341,874th parts or shares of and in
Kowloon Inland Lot No. 11118 (Flat B on 18/F. of Block 7 of Parc Palais, 18
Wylie Road, Kowloon, Hong Kong.) Mortgagee: Hang
Seng Bank Ltd., Hong Kong. |
HK$5,740,000 |
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.53.98 |
|
UK Pound |
1 |
Rs.83.72 |
|
Euro |
1 |
Rs.72.08 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.