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Report Date : |
19.06.2013 |
IDENTIFICATION DETAILS
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Name : |
WINDIAM TRADING
CO. |
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Registered Office : |
Flat A, 8/F., Ashley Mansion, 10-14 Ashley Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
19.01.2006 |
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Com. Reg. No.: |
36383278-000-01 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds.. |
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No. of Employees : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
B |
|
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 : |
Regular |
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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 |
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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 |
WINDIAM TRADING CO.
Flat A, 8/F.,
Ashley Mansion, 10-14 Ashley Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2369 3336
FAX: 2369 3336
Manager: Mr. Ritesh Kailesh Chauhan
Establishment: 19th January, 2006.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond Trader.
Employees: Nil.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Flat A, 8/F.,
Ashley Mansion, 10-14 Ashley Road, Tsimshatsui, Kowloon, Hong Kong.
36383278-000-01
Manager: Mr. Ritesh Kailesh Chauhan
Name: Ritesh Kailesh CHAUHAN
Residential
Address:
602 Ramjharukha
Building, Plot 116, Sector I, Charkop Kandivali (W), Mumbai-67, India.
The
subject was established on 19th January, 2006 as a sole proprietorship concern
owned by Mr. Nilesh Manharlal Chauhan under the Hong Kong Business Registration
Regulations.
The following table shows the
changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Nilesh Manharlal CHAUHAN |
19-01-2006 |
08-04-2006 |
|
YE Yongfeng |
15-02-2006 |
13-05-2008 |
|
Ritesh Kailesh CHAUHAN |
23-04-2008 |
--- |
At
the very beginning, the subject was located at Flat H, 13/F., Windsor Mansion, 29-31
Chatham Road South, Tsimshatsui, Kowloon, Hong Kong, moved to Room 2303, 23/F.,
Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong in February
2006; and further to the present address in May 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.
Employees: Nil.
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan, Southeast Asia, Europe, Middle East, Scandinavia, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Capital: Not disclosed.
Profit or Loss: Making a very small profit in the past years.
Condition: Keeping in a fairly active manner.
Facilities: Making fairly 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.
Windiam
Trading Co. is a sole proprietorship set up and owned by Mr. Ritesh Kailesh
Chauhan who is an Indian. He is an India
passport holder and does not have the right to reside in Hong Kong permanently.
The
subject’s registered address is located at Flat A, 8/F., Ashley Mansion, 10-14
Ashley Road, Tsimshatsui, Kowloon, Hong Kong.
This office is not in a commercial building but a residential
building. It is likely that Chauhan has
moved to this new address but does not make any amendments on the subject’s
registration materials. It seems that
the subject’s operating address is also Chauhan’s residential address. The residential building is not trespassed by
outsiders. The subject has no employees
in Hong Kong.
The
subject is a loose, cut and polished diamond importer, exporter and
wholesaler. Raw materials and products
are chiefly imported from India, Thailand, Belgium, etc. Processed diamonds or jewellery products are
marketed in Hong Kong and exported to the other Asian countries, the United
States, Europe, the Middle East, etc.
Business is fairly active and keeps on improving.
The
subject’s business is chiefly handled by Chauhan himself. Formerly the subject had got a Chinese
partner Mr. Ye Yongfeng who retired on 13th May, 2008. The Chinese partner resided in Guangzhou
City, Guangdong Province, China.
The
old partner of the subject Mr. Nilesh Manharlal Chauhan [N. M. Chauhan]
and Mr. Sanket Bharat Shah set up a partnership HK Export which was established
on 7th March, 2006. Located at a
different address, HK Export is also a diamond trader. N. M. Chauhan’s partner S. B. Shah is also an
Indian.
Chauhan
was the old partner of Fab Crystal which was established on 29th June,
2010. He retired from Fab Crystal on
16th July, 2010 and has put emphasis on his own business since then.
The
subject is just a one-man company.
History in Hong Kong is over seven years.
China
seems to be one of the main markets of the subject as the subject still has had
business ties with its old Chinese partner.
Since
the registered office of the subject is in a residential building, on the
whole, consider it good for normal business engagements on L/C basis for the
time being.
DIAMOND INDUSTRY – INDIA
-
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 –
-
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.58.45 |
|
UK Pound |
1 |
Rs.91.60 |
|
Euro |
1 |
Rs.77.91 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.