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Report Date : |
03.06.2013 |
IDENTIFICATION DETAILS
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Name : |
SHREE SIL IMPEX
(HK) LTD. |
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Registered Office : |
Unit 8, 9/F., Fu
Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
21.07.2011 |
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Com. Reg. No.: |
58739500 |
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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 and gems. |
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No. of Employees : |
4 |
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 : |
Moderate |
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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) |
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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 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.
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Source : CIA |
SHREE SIL IMPEX (HK) LTD.
Unit 8, 9/F., Fu
Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 2264
2301, 2366 9651
FAX: Not
available
E-MAIL: shreesilimpex@yahoo.com
Managing
Director: Mr. Rajeshbhai Lakshmanbhai
Vithani
Incorporated
on: 21st
July, 2011.
Organization: Private
Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10,000.00
Business Category: Diamond and Gem Trader.
Employees: 4.
Main Dealing
Banker: The Hongkong & Shanghai
Banking Corp. Ltd., Hong Kong.
Banking
Relation: Satisfactory.
Registered Head Office:-
Unit 8, 9/F., Fu
Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
Associated Companies:-
Cosmopolitan Gems,
Hong Kong.
Shree Siddh Laxmi
Diamonds, Hong Kong.
Shree Siddh Laxmi
Diamonds, India.
58739500
1638941
MANAGEMENT
Managing
Director: Mr. Rajeshbhai Lakshmanbhai
Vithani
Contact
Person: Ms. Chow
Nominal Share
Capital: HK$10,000.00 (Divided into
10,000 shares of HK$1.00 each)
Issued Share
Capital: HK$10,000.00
(As per registry
dated 21-07-2012)
|
Name |
|
No. of shares |
|
Rajeshbhai
Lakshmanbhai VITHANI |
|
10,000 ===== |
(As per registry
dated 06-11-2012)
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Name (Nationality) |
Address |
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Rajeshbhai
Lakshmanbhai VITHANI |
Flat 8D, 8/F.,
Star Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong. |
|
Hardik Natvarlal
DONDA |
Flat H, 6/F.,
Star Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong. |
(As per registry dated
21-07-2012)
|
Name |
Address |
Co. No. |
|
Buttar.HK Ltd. |
1/F., Mau Lam
Commercial Building, 16-18 Mau Lam Street, Jordan, Kowloon, Hong Kong. |
0975326 |
The subject was incorporated
on 21st July, 2011 as a private limited liability company under the Hong Kong
Companies Ordinance.
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 gems.
Employees: 4.
Commodities
Imported: India, other Asian countries,
Europe, etc.
Markets: Hong Kong, Japan, other
Asian countries, etc.
Terms/Sales: L/C,
T/T, etc.
Terms/Buying: L/C,
advanced T/T, D/P, etc.
Nominal Share
Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share
Capital: HK$10,000.00
Mortgage or
Charge:-
Date of Mortgage: 13-08-2012
Amount: All moneys
Property: 7/3,442nd parts or
shares of and in Section A of Kowloon Marine Lot No. 113 (Unit 8 on 9/F. of Fu
Hang Industrial Building, 1 Hok Yuen Street, Kowloon, Hong Kong.)
Mortgagee: DBS Bank
(Hong Kong) Ltd., Hong Kong.
Profit or Loss: Made a very small profit in 2012.
Condition: Business is improving.
Facilities: Making fairly active use
of general banking facilities.
Payment: Met
trade commitments as required.
Commercial
Morality: Too early to comment.
Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Dah Sing Bank Ltd., Hong Kong.
Standing: Small.
Having issued
10,000 ordinary shares of HK$1.00 each, Shree Sil Impex (HK) Ltd. is wholly
owned by Mr. Rajeshbhai Lakshmanbhai Vithani who is an Indian. He is a Hong Kong ID Card holder and has got
the right to reside in Hong Kong permanently.
He is also the only director of the subject.
Business commenced
in July 2011, the subject is a diamond importer, exporter and wholesaler. It is trading in loose, polished and cut
diamonds. Most of the commodities are
imported from India. It is also trading
in gemstones and loose diamonds like marquise, pears, tappers, buggets and rose
cut, round brilliant, single cut and fancy cut, etc. Prime markets are Hong Kong, Japan and
other Asian countries. Business is
improving.
Besides operating
the subject, Vithani also operates another firm Cosmopolitan Gems in Hong
Kong. However, this firm is located at
Room 1601, 16/F., Star Mansion, Mody Road, 3-5 Minden Row, Tsimshatsui,
Kowloon, Hong Kong. Cosmopolitan Gems
chiefly trading in single-cut diamonds, polished white diamonds, full cut
diamonds, black diamonds, and other types of loose diamonds, etc.
The subject’s
business is chiefly handled by Vithani himself.
History in Hong Kong is just over eight months.
Besides
Cosmopolitan Gems, the subject has had another associated company Shree Siddh
Laxmi Diamonds [SSLD] in India. SSLD
also has an office in Hong Kong located at the same address as the subject.
Another CEO of the
subject Hardik Donda is also an Indian.
The history of the
subject in Hong Kong is over a year and six months. It operates from a self-owned office in Hong
Kong.
On the whole, since
the history of the subject is short in Hong Kong, consider it good for normal
business engagements on L/C basis for the time being.
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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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 –
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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.
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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.56.49 |
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UK Pound |
1 |
Rs.86.00 |
|
Euro |
1 |
Rs.73.68 |
INFORMATION DETAILS
|
Report Prepared
by : |
NLM |
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 |
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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.