|
Report Date : |
25.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
KARP IMPEX HK LTD. |
|
|
|
|
Registered Office : |
Unit 01-02, 10/F., Tower 2, Harbour Centre, 8 Hok Cheung Street, Hunghom, Kowloon |
|
|
|
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Country : |
Hong Kong |
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Date of Incorporation : |
19.02.2003 |
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|
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Com. Reg. No.: |
33374139 |
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|
|
|
Legal Form : |
Private Limited Company |
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|
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery. |
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|
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No. of Employees : |
10. (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 |
|
Status : |
Satisfactory |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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
KARP IMPEX
HK LTD.
ADDRESS: Unit 01-02, 10/F., Tower 2, Harbour
Centre, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2369 3000, 2724 4330
FAX: 2369 8700, 2721 6516
E-MAIL: hini@karpgroup.com
Managing Director: Mr. Anilkumar
Bhikhabhai Virani
Incorporated on: 19th
February, 2003.
Organization: Private
Limited Company.
Capital: Nominal: HK$10,000,000.00
Issued: HK$5,460,000.00
Business Category: Diamond Trader.
Total Income of Parent: Rs. 1,862.65 crore (Year ended 31-03-2012)
Employees:
10. (Including associates)
Main Dealing Banker: Industrial & Commercial Bank of China (Asia) Ltd.,
Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Unit 01-02, 10/F., Tower 2, Harbour Centre, 8 Hok Cheung Street,
Hunghom, Kowloon, Hong Kong.
India Factory:-
8/A, Lal Darwaja, Surat-395 008, Gujarat, India.
Holding Company:-
Karp Impex Ltd., India.
Associated/Affiliated Companies:-
Karp Group of Companies
Hini Star (Bangkok) Ltd., Thailand.
Hini Star (Taiwan) Ltd., Taiwan.
Hini Star Diamonds LLC, UAE.
Hini Star Ltd., Hong Kong. (Same
address)
Karp Diamonds Pvt. Ltd., India.
Karp Impex N.V., Belgium.
Karp Infotech, India.
Karp Jewellery Mfg. China Ltd., Hong Kong. (Same address)
Karp Jewellery Mfg. HK Ltd., Hong Kong.
(Same address)
Karp Jewellery Pvt. Ltd., India.
Karp Jewellery Taiwan Ltd., Hong Kong.
Karp Jewellery Taiwan Ltd., Taiwan.
Karp Manufacturing Co., India.
Karp Suisse (Geneva), Switzerland.
Park Infotech, India.
etc.
33374139
0833706
Managing Director: Mr. Anilkumar
Bhikhabhai Virani
Nominal Share Capital: HK$10,000,000.00 (Divided into 10,000,000 shares
of HK$1.00 each)
Issued Share Capital: HK$5,460,000.00
(As per registry dated 19-02-2012)
|
Name |
|
No. of shares |
|
Karp Impex Ltd. Shanta Bhuvan, 66 Kumudwadi, Bhavnagar-364002 (Gujarat), India. |
|
5,459,999 |
|
Anilkumar Bhikhabhai VIRANI |
|
1 |
|
|
|
–––––––– |
|
|
Total: |
5,460,000 ======= |
(As per registry dated 19-02-2012)
|
Name (Nationality) |
Address |
|
Anilkumar Bhikhabhai VIRANI |
Jal-Mayur Chs., 5/F., 51 Laxmi
Vilas, 87 Nepean Sea Road, Mumbai-400006, India. |
|
Kishorkumar Bhikhalal VIRANI |
Jal-Mayur Chs., 5/F., 51 Laxmi
Vilas, 87 Nepean Sea Road, Mumbai-400006, India. |
(As per registry dated 19-02-2012)
|
Name |
Address |
Co. No. |
|
RC Corporate Services Ltd. |
Room 2109, 21/F., China Resources Building, 26 Harbour Road, Wanchai,
Hong Kong. |
0467057 |
The subject was incorporated on 19th February, 2003 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room 1505, 15/F., Tung Shun Hing
Commercial Centre, 20-22 Granville Road, Tsimshatsui, Kowloon, Hong Kong,
moved to the present address in December 2005.
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 jewellery.
Employees: 10. (Including affiliates)
Commodities Imported: Belgium, India, Israel, US, etc.
Markets: Europe,
Japan, Israel, Thailand, US, etc.
Total Income of Parent: Rs. 1,210.22 crore (Year ended 31-03-2011)
Rs. 1,862.65 crore (Year ended
31-03-2012)
Terms/Sales:
As per contracted.
Terms/Buying: Various
terms.
Nominal Share Capital: HK$10,000,000.00 (Divided into 10,000,000
shares of HK$1.00 each)
Issued Share Capital: HK$5,460,000.00
Profit After Tax of Parent:Rs. 57.10
crore (Year ended 31-03-2011)
Rs. 12.62 crore (Year ended
31-03-2012)
Profit or Loss: Operation is conducted on a profitable basis.
Condition: Kept
in an active manner.
Facilities: Is
making active use of general banking facilities.
Payment:
Punctual.
Commercial Morality: Satisfactory.
Bankers:-
Industrial & Commercial Bank of China
(Asia) Ltd., Hong Kong.
The Royal Bank of Scotland N.V.,
Hong Kong Branch.
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Good.
Having issued 5,460,000 ordinary shares of HK$1.00 each, Karp Impex HK
Ltd. is a wholly-owned subsidiary of Karp Impex Ltd. [Karp Impex] which is an
India-based firm. The subject is controlled
by Mr. Anilkumar Bhikhabhai Virani who is holding a very minor stake of the
subject. Virani is an India passport
holder and does not have the right to reside in Hong Kong permanently.
The subject is a member of the Karp Group which is an Indian Group in
India trading in jewellery and diamonds.
The subject is an importer, exporter and wholesaler of fancy cut
diamonds and round diamonds.
The manufacturing unit of the Karp Group is located in Panyu, Guangzhou
City, Guangdong Province, China which comprises of expertise including
designers, gemmologists, plating chemists, metallurgists and craftsmen. The Panyu factory is equipped with ultra
modern production facility including rapid prototyping technology. It also has been equipped with computerized
moulding machines, advanced automatic assembling and laser machines, model
workshop, computer aided design software, rapid prototyping equipment,
etc. The factory is able to develop its
own new products.
The subject has got an affiliated company Hini Star Ltd. [Hini Star]
located at the subject’s operating address.
With well-established offices in worldwide, the subject offers clients
with the full spectrum of fancy cut diamonds including taper, baguette,
marquise, pear, oval, princess, heart, trillion, round pointer, and brilliant
cut diamonds from 0.01 to 10 carat, also “Hearts & Arrows” ideal cut with
GIA / HRD / IGI certificate.
The subject’s affiliate Hini Star has been named the No. 1 diamond
importer in Southeast Asia by the Gem and Jewellery Export Promotion Council in
India since 1996.
The Karp Group is owned by the Maldar family and was formed in the early
60’s in India. Now, the Group is
controlled by the third generation of the family.
Hini Star is administered by Mr. Rameshkumar Bhikhabhai Virani who is
one of the key members of the Karp Group.
Karp Impex is recognized by the Government of India as a “Star Trading
House”.
The presence of Karp Impex in international luxury market as an
exclusive supplier of patented cut and polished diamonds to “Mont Blanc” for
their writing instruments and women accessories. Karp Impex derives about 80% of its revenues
from manufacturing and processing of cut and polished diamonds, while balance
sales arise out of trading of cut and polished diamonds and rough diamonds. The company’s sales are predominantly export
oriented (~80% of total sales).
For the year ended 31st March, 2012, the total income of Karp Impex
reported a profit after tax [PAT] of Rs. 12.62 crore on a total income of
Rs. 1,862.65 crore, as compared to a PAT and total income of Rs. 57.10
crore and Rs. 1,210.22 crore respectively for the year ended 31st March,
2011. Its PAT dropped substantially in
FY 2012.
Despite of lower profitability in the coming years, Karp Impex will be
able to maintain its credit profile given its long standing presence in the
market aided by superior technology and robust net worth.
In India, the Karp Group has about 8,000 workers while some of its
workers are the third generation employees.
The subject is fully supported by the Karp Group. History is over ten years and a month.
On the whole, consider the subject good for normal business engagements.
Property information of
affiliate:-
Property
Location: Workshop Unit No. 01
& 02 on 10/F., Harbour Centre Tower 2,
8 Hok Cheung Street, Kowloon, Hong Kong.
Owner: Hini Star Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
01-09-2005 |
- |
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
|
07-09-2007 |
- |
- ditto - |
Deed of variation and further charge to secure general banking
facilities |
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.
-
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.
-
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.
-
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.
-
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.54.33 |
|
|
1 |
Rs.82.56 |
|
Euro |
1 |
Rs.70.10 |
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.