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Report Date : |
17.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
ASHAPURA IMPEX |
|
|
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Registered Office : |
Flat F, 14/F., Windsor Mansion, 29-31 Chatham Road South, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
09.12.2003. |
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Com. Reg. No.: |
34127244-000-12 |
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Legal Form : |
Partnership. |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds
and gem stones |
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No. of Employees : |
2 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
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
levies excise duties on only four commodities, namely: hard alcohol, tobacco,
hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. 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 9.1% of total system deposits in Hong
Kong by the end of 2012, an increase of 59% from the previous 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 34.9 million in 2012, 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 2012 mainland Chinese
companies constituted about 46.6% of the firms listed on the Hong Kong Stock
Exchange and accounted for about 57.4% 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,
and less than 2% in 2012. Credit expansion and tight housing supply conditions
caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in
2012. 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
ASHAPURA IMPEX
ADDRESS: Flat F, 14/F., Windsor
Mansion, 29-31 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2724 8550, 2724 8558
FAX: 852-2724 8589
E-MAIL: bhauteshshah@indiatimes.com
Manager: Mr. Rakesh Jayantilal
Shah
Establishment: 9th
December, 2003.
Organization: Partnership.
Capital:
Not
disclosed.
Business Category: Diamond Trader.
Employees:
2.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Flat F, 14/F., Windsor Mansion, 29-31 Chatham Road South, Tsimshatsui,
Kowloon, Hong Kong.
Associated/Affiliated Companies:-
Ami Impex Co. Ltd., Japan.
Ami Impex Inc., USA.
Ashapura Diamonds DMCC, UAE.
Raj Gems, India.
34127244-000-12
Manager: Mr. Rakesh Jayantilal
Shah (Mobile: 852-6192 2435)
Contact Person: Mr. Ronak Shah
Name: Rakesh Jayantilal SHAH
Residential Address: Shahiyar Kunj,
4/F., 401, 1-12-6 Misuji, Taito-ku, Tokyo 111-0055, Japan.
Name: Hetal Rakesh SHAH
Residential Address: Shahiyar
Kunj, 4/F., 401, 1-12-6 Misuji, Taito-ku, Tokyo 111-0055, Japan.
The subject was established on 9th December, 2003 as a partnership
concern jointly owned by three Indian under the Hong Kong Business Registration
Regulations.
The following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Rakesh Jayantilal Shah |
09-12-2003 |
--- |
|
Himanshu Jayantilal Shah |
09-12-2003 |
01-01-2004 |
|
Amishkumar Chandulal Shah |
09-12-2003 |
01-10-2007 |
|
Hetal Rakesh Shah |
01-10-2007 |
--- |
Initially the subject was located at Flat F, 5/F., Far East Mansion, 5-6
Middle Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in
June 2007.
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 gem stones.
Employees: 2.
Commodities Imported: India, Thailand, other Asian countries, Europe, etc.
Markets: Hong
Kong, Japan, other Asian countries, Middle East, US, etc.
Terms/Sales:
COD or as per
contracted.
Terms/Buying: L/C,
T/T, etc.
Capital: Not
disclosed.
Profit or Loss: Making a small profit in the past years.
Condition:
Business is
normal.
Facilities:
Making active use of general banking facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Indian Overseas Bank, Hong Kong Branch.
Standing:
Small.
Ashapura Impex is a partnership jointly owned by Mr. Rakesh Jayantilal
Shah and Mr. Hetal Rakesh Shah. Being
Indian, the two Shahs are the members of the Shah family. Long time ago, they had resided in Tokyo,
Japan for a number of years. Mr. Rakesh
Jayantilal Shah moved to Hong Kong and started his business in December
2003. He can be reached at his mobile
phone number in Hong Kong 852-6192 2435.
The registered office of the subject is in a residential building known
as Winsor Mansion which is in Tsimshatsui, Kowloon, Hong Kong. The residential building is not trespassed by
outsiders.
The subject is a diamond trader and processor.
Business commenced in December 2003, the subject is trading in loose,
polished white, polished colour and cut diamonds, gem stones, etc. It is an importer, exporter and
wholesaler. Raw materials and
commodities are imported from India, other Asian countries, Belgium and the
other European countries. Its main
products, polished white and colour diamonds, have the following
specifications:-
·
Clarity — WS1, WS2;
·
Colour — E, F, G;
·
Finish — Excellent;
·
Shape — Rounds; &
·
Size — 2 ct or over.
Finished products are marketed in Hong Kong, exported to Japan, India,
other Asian countries and Europe, etc.
Since the subject’s Manager Rakesh Jayantilal Shah had resided in Tokyo,
Japan for a long time, he is responsible for marketing the subject’s products
in Japan. The subject’s business in
Japan is rather active.
The subject has had an associated company known as Raj Gems which is an
India-based firm. Ami Impex is an
associated company of Raj Gems. Both
firms are recognized names in manufacturing cut and polished diamonds. Raj Gems are controlled by the second
generation of the Shah family.
Raj Gems began in 1970 when J. B. Shah started his 500 sq.ft.
manufacturing plant at Surat, India. He
opened an office in Japan in the name of Ami Impex Co. Ltd. Then, he opened branch offices in Kufu, Kobe
and Osaka of Japan.
Now, Mr. Himanshu Shah has joined the business. Today Raj gems is still a family business led
by Mr. J. B. Shah, his younger brother Mr. P. B. Shah oversees the
manufacturing division and Mr. R. J. Shah oversees the overseas business.
The subject’s associated company Ami Impex Inc. is in the United
States. Ami Impex Inc. is a diamond
manufacturer carrying a large inventory from smaller sizes to larger sizes, and
from white to fancy colours and shapes.
This firm is specialized in white smaller goods up to 15 pts., and fancy
yellows from 1 ct up to 10 cts. In
addition to these goods, it also carries CAPE goods. It has established associated offices in
Mumbai of India, Japan, Antwerp, and Dubai.
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, the subject took
part in the “International Jewelry Vietnam 2008” which had been held in Ho Chi
Minh City, Vietnam from 2nd to 4th May, 2008.
It also has taken part in the Fairs and Shows which are held in Hong
Kong.
The subject’s business is chiefly handled by the Shah family who have
had closed business ties with the jewellery firms and manufacturers in Mumbai,
India. The contact person of the subject
Mr. Ronak Shah is also a member of the Shah family.
The history of the subject in Hong Kong is over nine years. Business keeps on improving.
On the whole, consider it good for normal business engagements in small
credit amounts.
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.
-
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.
-
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 –
-
Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
-
The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market
liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.39 |
|
|
1 |
Rs.89.89 |
|
Euro |
1 |
Rs.77.72 |
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 |
|
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.