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Report Date : |
17.06.2013 |
IDENTIFICATION DETAILS
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Name : |
SUPREME TRADING FZE |
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Registered Office : |
C/o Gurus & Lexes Consultants Ltd. Room 1002, 10/F., Chuang’s Tower, 30-32 Connaught Road Central |
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Country : |
Hong Kong |
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Date of Incorporation : |
21.09.2009 |
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Com. Reg. No.: |
51183550-000-09 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of Diamonds, jewellery. |
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No. of Employees : |
No Employee in Hong Kong It is to
be noted that the company does not have its own operating office in Hong
Kong. The company uses the address of its secretariat as its correspondence
address only. Subject operates from some other country and does not have a
base in Hong Kong. Such companies are registered in Hong Kong just to tax
benefit purpose and due to the strict privacy laws prevailing in the country.
In such cases, the companies are not required to have any employees in Hong
Kong nor do have an office there. |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
No Operating Office in Hong Kong |
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Payment Behaviour : |
Unknown |
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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
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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.
Source
: CIA
SUPREME TRADING
FZE
ADDRESS: c/o Gurus & Lexes
Consultants Ltd.
Room 1002, 10/F.,
Chuang’s Tower, 30-32 Connaught Road Central, Hong Kong.
PHONE: 852-3749 7792
FAX: 852-3909 1679
Manager: Mr. Shiv Shankar Gopawat
Establishment: 21st
September, 2009
Organization: Sole
Proprietorship.
Capital:
Not
disclosed.
Business Category: Importer, Exporter and Wholesaler.
Employees:
Nil.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Office:-
c/o Gurus & Lexes Consultants Ltd.
Room 1002, 10/F., Chuang’s Tower, 30-32 Connaught Road Central, Hong
Kong.
Mailing Address:-
P.O. Box 92438, Tsim Sha Tsui Post Office, Kowloon, Hong Kong.
Associated Companies:- (same
owner)
Sharp Diamonds, Hong Kong.
Superb Jewellery, Hong Kong.
51183550-000-09
Manager: Mr. Shiv Shankar Gopawat
Name: Mr. Shiv Shankar GOPAWAT
Residential Address: Po-Kharsan,
Via-Kheroda Udaipur, Raj, India.
The subject was established on 21st September, 2009 as a sole
proprietorship concern owned by Mr. Shiv Shankar Gopawat under the Hong Kong
Business Registration Regulations.
Initially the subject was located at Room 1008, 10/F., Prosperity
Millennia Plaza, 663 King’s Road, Quarry Bay, Hong Kong where is the operating
address of Gurus & Lexes Consultants Ltd. [Gurus & Lexes], moved to the
present address in December 2009 where is the branch office of Gurus &
Lexes.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of Diamonds,
jewellery.
Employees: Nil.
Commodities Imported: India, China, other Asian countries, etc.
Markets: Europe, North America, Asian
countries, Middle East, etc.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C,
advanced T/T, D/P, etc.
Capital: Not disclosed.
Profit or Loss: Kept a balance
account in 2011 & 2012.
Condition: Business is improving.
Facilities: Making fairly active use of general
banking facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Banker:
The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Standing:
Small.
Supreme Trading FZE is a sole proprietorship set up and owned by Mr.
Shiv Shankar Gopawat who is an Indian.
He is an India passport holder and does not have the right to reside in
Hong Kong permanently.
Business commenced in September 2009, the subject does not have its own
operating office. Its registered office
is in a commercial service firm located at Room 1002, 10/F., Chuang’s Tower,
30-32 Connaught Road Central, Hong Kong known as Gurus & Lexes
Consultants Ltd. [Gurus & Lexes] which is handling its correspondences and
documents. Its phone number and fax
number are 852-3749 7792 and 3909 1679 respectively.
The subject has no employees in Hong Kong.
To our knowledge, the subject is chiefly trading in diamonds, jewellery,
etc. It also trades in other commodities
as entrusted by customers. It is also a
commission agent. Commodities are
chiefly sourced from China, India and the other Asian countries. Prime markets are Europe, North America,
Asian countries, the Middle East, etc.
The subject has got associated companies in India and Dubai of the
United Arab of Emirates. Business keeps
on improving, however, it kept a balance account in 2011 and 2012.
It is likely that the main business area of the subject is in Dubai of
the United Arab of Emirates.
Besides operating the subject, Gopawat is also operating the following
two firms: Superb Jewellery and Sharp Diamonds.
The registered address of these two firms are also in the operating
address of Gurus & Lexes. As Gurus
& Lexes has more than one office in Hong Kong, the registered address of
the above-mentioned two firms are not the same as the subject. They are located at the other offices of
Gurus & Lexes.
Trading in diamonds and jewellery, the above-mentioned two firms are
also incorporated on 21st September, 2009.
The history of the subject in Hong Kong is just over three years.
On the whole, since the subject does not have its own operating office
and has no employees in Hong Kong, consider it good for business engagements on
L/C basis.
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.
NOTE :
It is to be
noted that the company does not have its own operating office in Hong Kong. The
company uses the address of its secretariat as its correspondence address only.
Subject operates from some other country and does not have a base in Hong Kong.
Such companies are registered in Hong Kong just to tax benefit purpose and due
to the strict privacy laws prevailing in the country. In such cases, the
companies are not required to have any employees in Hong Kong nor do have an
office there.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.57.74 |
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|
1 |
Rs.90.64 |
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Euro |
1 |
Rs.77.02 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
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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.