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Report Date : |
15.03.2013 |
IDENTIFICATION DETAILS
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Name : |
BESTLONG INTERNATIONAL TRADING
LTD |
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Registered Office : |
c/o Fairway
Diamond Co. Ltd., Room 1401, 14/F., 9 Queen’s Road Central |
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Country : |
Hong Kong. |
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Date of Incorporation : |
27.10.2003 |
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Com. Reg. No.: |
34023329 |
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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, ETC. |
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No. of Employees : |
4. (Including affiliates) |
RATING & COMMENTS
|
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 – 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 |
|
High |
B2 |
|
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 |
BESTLONG INTERNATIONAL
TRADING LTD.
ADDRESS: c/o Fairway Diamond Co. Ltd.
Room 1401, 14/F.,
9 Queen’s Road Central, Hong Kong.
PHONE: 2522 6131
FAX: 2845 3470
Managing
Director: Mr. Milan Amratlal Shah
Incorporated
on: 27th October, 2003
Organization: Private Limited Company.
Capital: Nominal: HK$20,000,000.00
Issued: HK$17,950,000.00
Business Category: Diamond trader.
Employees: 4.
(Including affiliates)
Main Dealing
Banker: The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Banking
Relation: Satisfactory.
Registered
Head Office:-
c/o Fairway
Diamond Co. Ltd.
Room 1401, 14/F.,
9 Queen’s Road Central, Hong Kong.
Holding
Company:-
Winsburg
Investment Holdings Ltd., Hong Kong.
(Same address)
Affiliated
Companies:-
Fairway Diamond
Co. Ltd., Hong Kong. (Same address)
Simplex Diam Ltd.,
Hong Kong. (Same address)
34023329
0867936
Managing
Director: Mr. Milan Amratlal Shah
Nominal Share
Capital: HK$20,000,000.00 (Divided into 20,000,000 shares of HK$1.00 each)
Issued Share
Capital: HK$17,950,000.00
(As
per registry dated 27-10-2012)
|
Name |
|
No.
of shares |
|
Winsburg
Investment Holdings Ltd., Hong Kong. |
|
17,949,999 |
|
Milan Amratlal SHAH |
|
1 |
|
|
|
––––––––– |
|
|
Total: |
17,950,000 ======== |
(As
per registry dated 27-10-2012)
|
Name (Nationality) |
Address |
|
Falguni Milan
SHAH |
Flat B,32/F., Block 5, Parc Palais, 18
Wylie Road, Homantin, Kowloon, Hong Kong. |
|
Milan Amratlal
SHAH |
Flat B,32/F., Block 5, Parc Palais, 18
Wylie Road, Homantin, Kowloon, Hong Kong. |
Milan Amratlal SHAH (As per registry dated 27-10-2012)
The
subject was incorporated on 27th October, 200 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, etc.
Employees: 4. (Including affiliates)
Commodities
Imported: India, Belgium, other
European countries, etc.
Markets: Hong Kong, Japan, other Asian
countries, North America, Western Europe, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share
Capital: HK$20,000,000.00 (Divided
into 20,000,000 shares of HK$1.00 each)
Issued Share
Capital: HK$17,950,000.00
Profit or Loss: Making a small profit every year.
Condition: Keeping in a satisfactory
manner.
Facilities: Is making use of
general banking facilities.
Payment: Met trade commitments
as required.
Commercial
Morality: Satisfactory.
Banker: The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
Bestlong
International Trading Ltd. is a wholly-owned subsidiary of Winsburg Investment
Holdings Ltd. which is a Hong Kong-registered address located at the same
address.
The
directors of the subject are Mr. Falguni Milan Shah and Mr. Milan Amratlal
Shah. Both are Hong Kong ID Card holders
and have got the right to reside in Hong Kong permanently. They belong to the same family.
The
subject shares its office with the following two firms in Hong Kong:-
·
Fairway Diamond Co. Ltd. [Fairway]
·
Simplex Diam Ltd. [Simplex]
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. Prime markets are
Hong Kong, Japan and the other Asian countries, Europe, the United States, etc.
Fairway
and Simplex are engaged in the same lines of business, more or less. Fairway is trading in diamonds, fine
jewellery, gemstones, jade, imitation jewellery, etc.
The
subject is one of the suppliers of Fairway and Simplex. Fairway was incorporated in Hong Kong on 3rd
March, 1978 while Simplex was incorporated in Hong Kong on 2nd May, 2002.
The
business of the subject is chiefly handled by the two Shahs. History in Hong Kong is over nine years and
four months.
On
the whole, in view of the background of the subject, consider it good for
normal business engagements in small credit amounts.
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.
-
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.
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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.
-
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.
-
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.54.44 |
|
UK Pound |
1 |
Rs.81.33 |
|
Euro |
1 |
Rs.70.50 |
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 |
|
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 |
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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 |
-- |
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.