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Report Date : |
04.01.2013 |
IDENTIFICATION DETAILS
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Name : |
VARDHAMAN INTERNATIONAL |
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Registered Office : |
Flat B, 3/F., Chun Wah Commercial Building, 30 Minden Avenue, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
03.12.2010 |
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Com. Reg. No.: |
53386504-000-12 |
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Legal Form : |
Sole Proprietorship. |
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LINE OF BUSINESS : |
IMPORTER, EXPORTER AND WHOLESALER OF ALL KINDS OF DIAMONDS
AND JEWELLERY PRODUCTS, ETC. |
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No. of Employees : |
2 |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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'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
VARDHAMAN INTERNATIONAL
Address: Flat B, 3/F.,
Chun Wah Commercial Building,
30 Minden
Avenue, Tsimshatsui,
Kowloon,
Hong Kong.
(Formerly located at:
Flat 1, 11/F., Star Mansion, 3-5 Minden Row,
Tsimshatsui, Kowloon, Hong Kong. )
PHONE: Not available
FAX: Not available
Manager: Mr. Nilesh Kantilal
Doshi
Establishment: 3rd
December, 2010.
Organization: Sole
Proprietorship.
Capital:
Not
disclosed.
Business Category: Diamond Trader.
Employees:
2.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Office:-
Flat B, 3/F., Chun Wah Commercial Building, 30 Minden Avenue, Tsimshatsui,
Kowloon, Hong Kong.
Associated Companies:- (Same
owner)
N R International, Hong Kong.
Parfect Trading Co., Hong Kong.
Technic Trade, Hong Kong.
53386504-000-12
Manager: Mr. Nilesh Kantilal Doshi
Name: Mr. Nilesh Kantilal DOSHI
Residential Address: A/2,
Gautam Nagar Building, 4 Moti Nagar, Near Ambe Mata, Mandir Bhayandar (W),
Thane, India.
The subject was established on 3rd December, 2010 as a sole
proprietorship concern owned by Mr. Nilesh Kantilal Doshi under the Hong Kong
Business Registration Regulations.
Initially the subject’s registered office was located at Flat 1, 11/F., Star
Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong, moved to Flat A, 11/F., Block 10, Hong Kong Gold Coast
Phase II, 1 Castle Peak Road, Tuen Mun, New Territories, Hong Kong in October
2011, and further to the present address in May, 2012.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of diamonds and jewellery products, etc.
Employees: 2.
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan,
Southeast Asia, Europe, Middle East, etc.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C, advanced
T/T, etc.
Capital: Not
disclosed.
Profit or Loss: Keeping a balance account in 2011.
Condition: Business
is improving.
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.
Vardhaman International is a sole proprietorship set up and owned by
Mr. Nilesh Kantilal Doshi who is an Indian. He is an India passport holder and does not
have the right to reside in Hong Kong permanently.
Formerly there was another firm also known as Vardhaman International
bearing BR No. 38936932 located at the old registered address [Flat 1, 11/F.,
Star Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong] of the
subject. This firm was a sole
proprietorship set up on 14th February 2008 and owned by Mr. Nishank
Harshaobhai Dagli who was also an Indian.
However, this firm has ceased business since 3rd December, 2010. The subject is a new firm bearing a different
BR No. 53386504.
Your given phone and fax number 852-2312 2146 and 852-3904 6849 belong
to the old address which is now occupied by the other firms.
The subject’s last registered address was located at Flat A, 11/F.,
Block 10, Hong Kong Gold Coast, Phase II, 1 Castle Peak Road, Tuen Mun,
New Territories, Hong Kong where is supposed to be the residence of the
sole proprietor when he is in Hong Kong.
Now, the subject’s operating address is located at Flat B, 3/F., Chun
Wah Commercial Building, 30 Minden Avenue, Tsimshatsui, Kowloon,
Hong Hong.
Besides the subject, the following firms are also located at the above‑entioned
address and operated by the same owner:-
N R International
Parfect Trading Co.
Technic Trade
Business commenced 3rd December, 2010, the subject is a diamond
importer, exporter and wholesaler. It is
trading in loose diamonds, precious stones, ruby jade, gem sets, semi-precious
stones, blue or coloured sapphire, etc.
Most of its commodities are imported from India, Belgium and other
European countries, etc. Business keeps
on improving.
The subject’s business is chiefly handled by Doshi himself.
The history of the subject is just over two years Hong Kong.
On the whole, consider it good for business engagements on L/C basis for
the time being as its history is short.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.42 |
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|
1 |
Rs.88.29 |
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Euro |
1 |
Rs.71.49 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.