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Report Date : |
25.01.2013 |
IDENTIFICATION DETAILS
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Name : |
POLA HONG TRADING CO. |
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Registered Office : |
Flat F, 47/F., Block 2, Grand Waterfront, 38 San Ma Tau Street,
Tokwawan, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
22.09.2009 |
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Com. Reg. No.: |
51214387-003-09 |
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Legal Form : |
Sole Ownership Firm |
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Line of Business : |
Subject traded in loose diamonds, emerald, precious stones, etc. |
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No. of Employees : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
C |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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Status : |
Business Ceased |
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Payment Behaviour : |
-- |
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Litigation : |
-- |
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 |
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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 |
POLA HONG TRADING
CO.
Head Office:-
Flat F, 47/F., Block 2, Grand Waterfront, 38 San Ma Tau Street,
Tokwawan, Kowloon, Hong Kong.
Sister
Companies:- (Same BR No.)
* Beauty - Diam, Hong Kong. [BR
No. 51214387-001-09]
* Kris Diamond, Hong Kong. [BR
No. 51214387-002-09]
* River Code Infotech, Hong Kong. [BR
No. 51214387-004-09]
* Cheung Lung Trading, Hong Kong. [BR
No. 51214387-005-09]
* (Ceased Business)
51214387-003-09
Manager: Mr. Piyush Bhagchand
Kala
Beauty Diam Co. Ltd., Hong Kong.
The subject was established on 22nd September, 2009 as a sole ownership
firm with Beauty Diam Co. Ltd. as the proprietor under the Hong Kong Business
Registration Regulations.
The predecessor of the subject was also known as Pola Hong Trading Co.
which was also located at Flat F, 47/F., Block 2, Grand Waterfront, 38 San Ma
Tau Street, Tokwawan, Kowloon, Hong Kong bearing BR No. 38151013. However, this firm has ceased business and
the subject has taken over its business.
The subject ceased business on 2nd March, 2012.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Pola Hong Trading was solely owned and operated by Beauty Diam Co. Ltd. [BDCL]
which was a Hong Kong-registered firm located at Room 908, 9/F., Hart Avenue
Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong. However, BDCL applied for deregistration in
October 2011 from the Companies Registry.
It was formally deregistered in January 2012.
The subject also ceased business on 2nd March, 2012.
The manager of the subject Mr. Piyush Bhagchand Kala is an Indian. He is a Hong Kong ID Card holder and has got
the right to reside in Hong Kong permanently.
The subject did not have its own operating office. Its registered address was in a private
building located at Flat F, 47/F., Block 2, Grand Waterfront, 38 San Ma
Tau Street, Tokwawan, Kowloon, Hong Kong.
This address is also the residence of Kala.
Business commenced in September 2009, the subject traded in loose
diamonds, emerald, precious stones, etc.
Diamonds were imported from India and European countries.
Finished products such as diamond jewellery were marketed in
Hong Kong, exported to other Asian countries, Europe, etc.
Besides the subject, BDCL also had the following subsidiaries in
Hong Kong:-
|
Business Name |
BR No. |
Establishment |
Address |
|
Beauty - Diam |
51214387-001-09 |
22-09-2009 |
Room 908, 9/F., Hart Avenue Plaza, |
|
Kris Diamond |
51214387-002-09 |
22-09-2009 |
Room 908, 9/F., Hart Avenue Plaza, |
|
River Code Infotech |
51214387-004-09 |
22-09-2009 |
Flat F, 47/F., Block 2, Grand Waterfront, 38 San Ma Tau Street,
Tokwawan, Kowloon, Hong Kong. |
|
Cheung Lung Trading |
51214387-005-09 |
22-09-2009 |
Flat F, 47/F., Block 2, Grand Waterfront, 38 San Ma Tau Street,
Tokwawan, Kowloon, Hong Kong. |
All the above-mentioned firms ceased business on 2nd March, 2012.
In December 2009, Antwerp Diamond Bank NV, which is domiciled in
Belgium, filed Writs of Summons in Hong Kong, claiming an amount due of
US$1,512,379.35 from Piyush Bhagchand Kala.
We do not know whether this case has been disposed or not. However, we do believe that this litigation
has caused Piyush Bhagchand Kala to close down all his firms.
On the whole, since the subject has ceased business, consider it not
suitable for any business engagements.
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.53.85 |
|
|
1 |
Rs.85.25 |
|
Euro |
1 |
Rs.71.72 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
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.