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Report Date : |
04.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
VRITI
DIAM (HK) LTD. |
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|
|
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Registered Office : |
Flat B, 12/F., Granville House, 41C & 41D Granville Road,
Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
27.03.2008 |
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Com. Reg. No.: |
39087350 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Importer and Exporter of all kinds of loose diamonds, etc. |
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No. of Employees : |
2 |
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 |
|
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 |
|
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
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 |
VRITI
DIAM (HK) LTD.
Flat B, 12/F.,
Granville House, 41C & 41D Granville Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 3116 7601, 6629 4412
FAX: 3116 7602
E-MAIL: vriti_diam@yahoo.co.in
Managing
Director: Mr. Bhavesh Narasi Patel
Incorporated on: 27th March, 2008.
Organization: Private Limited Company.
Capital: Nominal: HK$100,000.00
Issued: HK$100,000.00
Business Category: Loose Diamond Trader.
Company Turnover of 2012: HK$110 million.
Employees: 2.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
VRITI
DIAM (HK) LTD.
Registered
Head Office:-
Flat B, 12/F.,
Granville House, 41C & 41D Granville Road, Tsimshatsui, Kowloon, Hong Kong.
Associated
Company:-
Vriti Diam, Hong
Kong.
39087350
1220672
Managing
Director: Mr. Bhavesh Narasi Patel
General
Manager: Mr. Rajesh Tokarawat
Nominal Share Capital:
HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)
Issued Share
Capital: HK$100,000.00
(As per registry dated 27-03-2013)
|
Name |
|
No.
of shares |
|
Bhavesh Narasi PATEL |
|
100,000 ====== |
(As per registry dated 27-03-2013)
|
Name (Nationality) |
Address |
|
Bhavesh Narasi
PATEL |
Flat A, 6/F., Hang Lung Bank Building,
46-48 Granville Road, Tsimshatsui, Kowloon, Hong Kong. |
|
Maheshkumar
Bhavanbhai GAJERA |
5, Nandan Villa, Model Town Chs. B-11,
Gulmohar Cross Road No. 7, Vile Parle West, Mumbai 400056, India. |
(As per registry dated 27-03-2013)
|
Name |
Address |
|
Bayani
Divino Bautista PONCE |
Flat A, 8/F., Tower 5, Caribbean Coast, 2 Kin Tung Road, Tung Chung,
Lantau Island, Hong Kong. |
The
subject was incorporated on 27th March, 2008 as a private limited liability
company under the Hong Kong Companies Ordinance.
Formerly
the subject was located at M29, 2/F., Phase 3, Kaiser Estate, 9‑11A Hok
Yuen Street, Hunghom, Kowloon, Hong Kong, moved to Room 404, 4/F., Block B, Fu
Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong
in March 2009, to Flat B, 12/F., Granville House, 41C & 41D Granville Road,
Tsimshatsui, Kowloon, Hong Kong in 2010, to Room 1711, 17/F., Rise Commercial
Building, 5-11 Granville Circuit, Tsimshatsui, Kowloon, Hong Kong with effect
from 1st April, 2011. It moved back to
Granville House in late 2011.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer and Exporter.
Lines: All kinds of loose diamonds, etc.
Employees: 2.
Commodities Imported: India, other Asian countries, Europe, etc.
Markets: Hong Kong, India, China, other Asian countries, etc.
Company Turnover: HK$ 99.8 million (2011)
HK$110 million (2012)
Terms/Sales: COD, L/C, T/T, D/A, or 150 days, etc.
Terms/Buying: L/C, T/T, or 120 to 150 days, etc.
Nominal Share Capital: HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)
Issued Share Capital: HK$100,000.00
Mortgage or Charge: (See attachment)
Indebtedness: HK$1,635,770 (Total amount outstanding on all mortgages
and charges as per last Annual Return dated 27-03-2013)
Company Net Profit: HK$0.5 million (2011)
HK$0.8 million (2012)
Profit or Loss: Making a small profit in past two years.
Condition: Business is active.
Facilities: Adequate for current running.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Having
issued 100,000 ordinary shares of HK$1.00 each, Vriti Diam (HK) Ltd. is
wholly-owned by Mr. Bhavesh Narasi Patel [B. N. Patel] who is an Indian. B. N. Patel resided in Mumbai, India and now
he has moved to Hong Kong. He is a
Hong Kong ID Card holder and has got the right to reside in Hong Kong
permanently. B. N. Patel can be reached
at his mobile phone number 852-6629 4412.
The
subject moved back to the former address in late 2011. It has had an associated company Vriti Diam, a
Hong Kong-registered firm, located at its operating address. Both firms are under the same management.
Currently,
the subject has had two employees, namely, Mr. Mahesh Gajara and Mr. Bharat
Kadakia. Both of them are Indian.
Besides,
the subject has got the following affiliated firms:-
Raha
Impex H.K., Hong Kong.
Rio
Star, Hong Kong.
Zenia,
Hong Kong.
All
these firms are controlled by the Patel family.
Zenia was established in Hong Kong on 24th September, 2004.
The
subject’s director B. N. Patel is also the sole proprietor of Vriti Diam. The subject and Vriti Diam are engaged in the
same lines of business.
The
subject is a loose diamond trader. It is
trading in white, LC and all size of loose diamonds form 0.01 cts to 1.00
cts. Raw materials, polished and cut
diamonds are imported from India, and other European countries, etc. Some of the raw diamonds are polished or
processed in Hong Kong. Finished
products and polished diamonds are exported to India, China, other Asian
countries, etc.
In
2012, the subject’s turnover amounted to HK$110 million (2011: HK$99.8
million), net profit for the year was HK$0.8 million (2011: HK$0.5
million). Profit margins were low in the
years.
In
order to penetrate the international market further, the subject has taken part
in fairs and exhibitions held in Hong Kong and other foreign large cities. For instance, it is going to take part in
“HKTDC Hong Kong International Jewellery Show 2014” which will be held in Hong
Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of
5th to 9th March, 2014. Its booth No. is
S426-01.
B.
N. Patel is also a diamond businessman.
In India, he has got business ties with a number of diamond
manufacturers and traders.
The
history of the subject is over five years in Hong Kong.
Supported
by the Patel family, on the whole, consider it good for normal business
engagements.
MORTGAGE OR CHARGE
|
Date |
Particulars |
Amount |
|
30-08-2011 |
Instrument: Mortgage Property: 2/94th parts or shares
of and in Section A of Kowloon Inland Lot No. 7603 and The Remaining Portion
of Kowloon Inland Lot No. 7603 (Flat B on 12/F. of Granville House, Mortgagee: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
All moneys |
|
08-04-2013 |
Instrument: Security
Over Deposits with the Bank Limited Company - Under Seal Property: Initially
HK$1,300,000 or equivalent and all monies whether now or hereafter standing
to the credit of the company’s deposit with the Bank under deposit
No. 817-357593 & whatever currency it may subsequently be
denominated in, any renewal of such deposit & the interest thereon
together with any further moneys in any deposit account with the Bank at any
of its offices. Mortgagee: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
To secure all monies in respect of banking facilities owing at any
time plus interest and all expenses |
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.
-
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.
-
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.
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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.53.95 |
|
|
1 |
Rs.83.80 |
|
Euro |
1 |
Rs.70.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.