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Report Date : |
16.01.2013 |
IDENTIFICATION DETAILS
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Name : |
ABEE IMPEX LTD. |
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Registered Office : |
Room 1225, 12/F., Block B, Focal Industrial Centre, 21 Man Lok Street, Hunghom, Kowloon |
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Country : |
Hong Kong. |
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Date of Incorporation : |
06.09.2004 |
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Com. Reg. No.: |
34916291 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds, diamond watches, etc. |
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No. of Employees : |
6 |
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 (31.03.2011) |
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
ABEE IMPEX LTD.
ADDRESS: Room 1225, 12/F., Block B, Focal
Industrial Centre, 21 Man Lok Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2723 8220
FAX: 2723 8330
E-MAIL: info@abeeimpex.com
Managing Director: Mr.
Bharatkumar Jairambhai Patel
Incorporated on: 6th
September, 2004.
Organization: Private
Limited Company.
Capital: Nominal: HK$11,150,000.00
Issued: HK$6,300,000.00
Business Category: Importer, Exporter and Wholesaler.
Annual Turnover: US$20-25
million.
Employees:
6.
Main Dealing Banker: Bank of India, Hong Kong Branch.
Banking Relation:
Registered Head Office:-
Room 1225, 12/F., Block B, Focal Industrial Centre, 21 Man Lok Street,
Hunghom, Kowloon, Hong Kong.
Associated Company:-
Abee Impex, Hong Kong. (Same
address)
34916291
0921150
Managing Director: Mr.
Bharatkumar Jairambhai Patel
Nominal Share Capital: HK$11,150,000.00 (Divided into 11,150,000 shares of
HK$1.00 each)
Issued Share Capital: HK$6,300,000.00
(As per registry dated 13-12-2012)
|
Name |
|
No. of shares |
|
Bharatkumar Jairambhai PATEL |
|
5,725,000 |
|
Virendrakumar Jairambhai PATEL |
|
575,000 |
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|
–––––––– |
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Total: |
6,300,000 ======= |
(As per registry dated 08-01-2013)
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Name (Nationality) |
Address |
|
Bharatkumar Jairambhai PATEL |
Flat B, 26/F., Tower 8, Costa Del Sol Laguna Verde, Phase 3, 8 Laguna Verde
Avenue, Hunghom, Kowloon, Hong Kong. |
(As per registry dated 06-09-2012)
|
Name |
Address |
Co. No. |
|
Lodstar Secretaries Ltd. |
13/F., Wah Kit Commercial Centre, 302 Des Voeux Road Central, Hong
Kong. |
0113023 |
The subject was incorporated on 6th September, 2004 as a private limited
liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Abee (H.K.)
Ltd., name changed to the present style on 28th 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, diamond watches, etc.
Employees: 6.
Commodities Imported: India, Europe, etc.
Markets: Hong
Kong, China, Japan, other Asian countries, Europe, North America, etc.
Annual Turnover: US$20-25 million.
Terms/Sales:
As per contracted.
Terms/Buying: Various
terms.
Nominal Share Capital: HK$11,150,000.00 (Divided into 11,150,000
shares of HK$1.00 each)
Issued Share Capital: HK$6,300,000.00
Mortgage or Charge (since 2011): (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Keeping in a satisfactory manner.
Facilities:
Making rather
active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Bankers:-
Bank of India, Hong Kong Branch.
DBS Bank (Hong Kong) Ltd., Hong Kong.
Standing:
Normal.
Having issued 6.3 million ordinary shares of HK$1.00 each, Abee Impex
Ltd. is jointly owned by Mr. Bharatkumar Jairambhai Patel, holding 90.9%
interests; Mr. Virendrakumar Jairambhai Patel, holding 9.1%. The former is also the director of the
subject.
The subject has had an associated company Abee Impex located at its
operating address. Abee Impex and the
subject are engaged in the same lines of business.
The subject is a manufacturer and wholesaler of the following products:-marquise,
pears, tappers, buggets and rose cut, round brilliant, single cut and fancy
cut, etc. It also provides customers
with a wide selection of diamonds and assortment in various sizes. Raw materials and products are imported from
the United States, Europe and India. The
subject has had a production base for diamonds in India. Finished products are exported to Taiwan, the
United States, Germany, other European countries, etc. Besides diamond and jewellery, the subject
also trades in gentlemen’s diamond watches, ladies’ diamond watch sets and
watches. Its diamond watches bear their
own brand name owned by the subject.
Besides, the subject actively markets its products to major jewellery
and watch manufacturers from all over the world through major trade shows in
Hong Kong with its dynamic sales team.
Fairs and exhibitions participated in Hong Kong are such as Hong Kong
International Jewellery Show, Hong Kong Jewellery & Watch Fair and
Hong Kong Watch & Clock Fair, etc.
The first is held in March, while the second and third are held in
September every year.
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.
Annual sales turnover of the subject and its associate ranges from US$20
to 25 million. Business is rather
active. Regular suppliers and overseas
clients have been maintained.
As the subject’s history in Hong Kong is over eight years, on the whole,
consider it good for normal business engagements.
(Since 2011)
|
Date |
Particulars |
Amount |
|
24-03-2011 |
Instrument: Letter of Lien Property: Nature of Deposit: TDR Mortgagee: Bank of India, Hong Kong Branch. |
HK$3,000,000 |
|
10-03-2011 |
Instrument: General Letter of Hypothecation Property: Bills of exchange, and invoices, or any other documents representing
or relating to goods. The Company agree that the same and all goods thereby
represented or to which the document relate shall be hypothecated by way of
first charge as a continuing security for all sums in which the company from
time to time be actually or contingently indebted or liable to Bank on any
account Mortgagee: Bank of India, Hong Kong Branch. |
All the money now granted by the Bank & the company now owing to
the Bank and inclusive of the monies which in future will be granted by the
bank and the company will become owing any such sums to the Bank |
|
30-11-2012 |
Instrument: Mortgage Property: 7/634 part of shares of and in The Remaining Portion of Section B of Kowloon
Marine Lot No. 69m,Section C of Kowloon Marine Lot No. 69, The Remaining
Portion of Section B of Kowloon Marine 86, Section C of Kowloon Marine Lot
No. 86 and Sub-Section 1 of Section J of Kowloon Marine Lot No. 40 (Work Shop
E1m 5/F. Hang Fung Industrial Building Phase 1, Kowloon) Mortgagee: DBS Bank (Hong Kong) Ltd.,
Hong Kong. |
To secure All moneys in respect of general banking facilities &
interest thereon |
|
30-11-2012 |
Instrument: Assignment of Rentals Property: All the Company’s right, title, interest & benefit to and in any
moneys whatsoever payable to the Company by present or future Lessees and all
other right and benefits whatsoever securing to the Company Mortgagee: DBS Bank (Hong Kong) Ltd.,
Hong Kong. |
To secure All moneys in respect of general banking facilities and
interest thereon |
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.54.54 |
|
|
1 |
Rs.87.69 |
|
Euro |
1 |
Rs.72.85 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
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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 |
-- |
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.