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Report Date : |
12.01.2013 |
IDENTIFICATION DETAILS
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Name : |
ZENIA |
|
|
|
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Registered Office : |
Room 404, 4/F.,
Block B, Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom,
Kowloon |
|
|
|
|
Country : |
Hong Kong. |
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|
|
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Date of Incorporation : |
24.09.2004 |
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|
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Com. Reg. No.: |
34938558-000-09 |
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|
|
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Legal Form : |
Sole
Proprietorship. |
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|
|
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Line of Business : |
Importer,
Exporter and Wholesaler of All kinds of diamonds, etc. |
|
|
|
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No. of Employees : |
3. |
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 |
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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 |
|
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 |
ZENIA
Room 404, 4/F.,
Block B, Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon,
Hong Kong.
PHONE: 2730
5088
FAX: 2730
5084
E-MAIL: zeniahk@gmail.com
Manager: Mr. Praful Chandra Madhubhai Patel
Establishment: 24th September, 2004.
Organization: Sole
Proprietorship.
Capital: Not
disclosed.
Business Category: Diamond Trader.
Annual
Turnover: HK$70~80 million.
Employees: 3.
Main Dealing
Banker: The Hongkong & Shanghai
Banking Corp. Ltd., Hong Kong.
Banking
Relation: Satisfactory.
ZENIA
Head Office:-
Room 404, 4/F.,
Block B, Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon,
Hong Kong.
Associated/Affiliated Companies:-
Rio Star
Flat 29, 2/F., Block
M, Kaiser Estate, Phase 3, 11 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
[Solely owned by
Mr. Lalit Jivraj Patel]
Vriti Diam (HK)
Ltd.
Flat B, 12/F., Granville House, 41C & 41D Granville Circuit, Tsimshatsui, Kowloon,
Hong Kong.
[Wholly owned by
Mr. Bhavesh Narasi Patel. Directors
are Mr. Bhavesh Narasi Patel and Mr. Maheshkumar Bhavanbhai Gajera]
Vriti Diam
Flat A, 6/F., Hang
Lung Bank Building, 46-48 Granville Road, Tsimshatsui, Kowloon, Hong Kong.
[Solely owned by
Mr. Bhavesh Narasi Patel]
34938558-000-09
Manager: Mr. Praful Chandra Madhubhai Patel
Name: Mr. Praful Chandra Madhubhai PATEL
Residential
Address: Room 5, 10/F., Block A, Hankow
Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was
established on 24th September, 2004 as a sole proprietorship concern owned by
Mr. Praful Chandra Madhubhai Patel under the Hong Kong Business
Registration Regulations.
At the very
beginning, the subject was located at Flat C, 10/F., Century House, 3-4 Hanoi
Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat 29, 2/F., Block M, Kaiser
Estate, Phase 3, 11 Hok Yuen Street, Hunghom, Kowloon, Hong Kong in January
2006, and further to the present address in October 2008.
Apart from these,
neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter and
Wholesaler.
Lines: All kinds of
diamonds, etc.
Employees: 3.
Commodities
Imported: India, Belgium, other European
countries, etc.
Markets: Hong Kong, India, other
Asian countries, etc.
Annual Turnover: HK$70~80 million.
Terms/Sales: L/C
and T/T.
Terms/Buying: L/C,
advanced T/T, D/A, etc.
Capital: Not disclosed.
Annual Net Profit: HK$1.0-2.0 million
Profit or Loss: Making a profit every year.
Condition: Keeping in an active
condition.
Facilities: Making
rather active use of general banking facilities.
Payment: Met
trade commitments on time.
Commercial
Morality: Satisfactory.
Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Good.
Zenia is a sole proprietorship set up on 24th September, 2004 and owned by
Mr. Praful Chandra Madhubhai Patel [P C M Patel] who is an Indian. He is a Hong Kong ID Card holder and has got
the right to reside in Hong Kong permanently.
Mr. P C M Patel can be reached at the subject’s phone number 2730 5088.
The subject is a diamond importer, exporter and wholesaler. It has got affiliated companies Vriti Diam
(HK) Ltd. [Vriti] and Vriti Diam in Hong Kong but located at a different
address.
Having issued 100,000 ordinary shares of HK$1.00 each, Vriti is wholly
owned by Mr. Bhavesh Narasi Patel [B N Patel] who is an India passport
holder. Vriti Diam is also owned by Mr.
B N Patel.
The subject and Vriti are engaged in the same lines of business. Both are trading in loose diamonds, fancy
diamonds, and diamond for jewellery.
Products are marketed in Hong Kong, exported to Japan, Taiwan, South
Korea, China, other Asian countries, Europe, North America, etc. Most of the polished and cut diamonds are
imported from Mumbai, India.
Another affiliated firm Rio Star is owned by Mr. Lalit Jivraj
Patel. Rio Star is also located at a
different address where was the old head office of the subject. All the Patels belong to the same family.
The subject’s business is chiefly handled by P. C. M. Patel
himself. The Patel family has had close business
ties with some of the diamond suppliers and manufacturers in Mumbai, India.
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 took part in
“HKTDC Hong Kong International Jewellery Show 2012” which had been held in Hong
Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of
16th to 20th February, 2012. Besides, 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.
P C M Patel has had a number of Indian friends in Hong Kong who are also
trading in diamonds. Sometimes they rent
an office together in Hong Kong and share it as their operating offices.
According to the subject, its annual sales turnover ranges from HK$70 to
80 million. Its net profit ranges from
HK$1.0 to 2.0 million. Overall business
is satisfactory.
As the history of the subject in Hong Kong is over eight years, on the
whole, consider it good for normal business engagements.
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.
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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.
-
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.54.54 |
|
UK Pound |
1 |
Rs.88.05 |
|
Euro |
1 |
Rs.72.29 |
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 |
|
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.