MIRA INFORM REPORT
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Report Date : |
14.05.2013 |
IDENTIFICATION DETAILS
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Name : |
BHAVANI
HONG KONG LTD. |
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Registered Office : |
Room 404, 4/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
16.03.2006 |
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Com. Reg. No.: |
36549048 |
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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 and jewellery products, emerald, precious stones, etc. |
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No. of Employees : |
07 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 – 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.
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Source : CIA |
BHAVANI HONG KONG LTD.
Room 404, 4/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2368 4330, 2368 6769
FAX: 2368 6979
E-MAIL: alpesh@bhavanihk.com
Managing Director: Mr. Alpesh Manubhai Ahir (Mobile: 6305 2889)
Incorporated on: 16th March, 2006.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10,000.00
Business Category: Importer, Exporter and Wholesaler.
Annual Turnover: HK$60~65 million.
Employees: 7.
Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 404, 4/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
Headquarters:-
Bhavani Gems
101, Prasad Chambers, M. P. Marg, Opera House, Mumbai-400004, India.
[Tel: 91-22-2367 9521, 4034 9500 (100 lines)
Fax: 91-22-2363 3538
E-mail: info@bhavanigems.com ]
Associated
Companies:-
Instyle Jewellery,
India.
Star Diam LLC, USA.
Super Diam B.V.B.A., Belgium.
Yin Po Company, Hong Kong.
36549048
1030955
Managing Director: Mr. Alpesh Manubhai Ahir
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
(As per registry dated
16-03-2013)
|
Name |
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No.
of shares |
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Alpesh
Manubhai AHIR |
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2,500 |
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Samir Ravjibhai KHADELA |
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7,500 |
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–––––– |
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Total: |
10,000 ===== |
(As per registry
dated 16-03-2013)
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Name (Nationality) |
Address |
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Alpesh
Manubhai AHIR |
Flat B, 7/F., Kiu Yip
Building, 26-28 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong. |
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Samir
Ravjibhai KHADELA |
Quinten Matsijslei 37 Bus 17,
2018 Antwerpen, Belgium. |
(As per registry
dated 16-03-2013)
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Name |
Address |
Co.
No. |
|
Vinford Ltd. |
Room 1707, 17/F., Wellborne Commercial Centre, 8 Java
Road, North Road, Hong Kong. |
0346328 |
The subject was incorporated on 16th March, 2006 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room 1206, 12/F., Hang Seng Tsim Sha Tsui Building, 18 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address with effect from 2nd June, 2010.
The subject has changed its shareholders and equities.
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 products, emerald, precious stones, etc.
Employees: 7.
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan, India, other Asian countries, etc.
Annual Turnover: HK$60~65 million.
Terms/Sales: L/C, T/T, D/P, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
Indebtedness: HK$2,909,911 (Total amount outstanding on all mortgages and charges as per last Annual Return dated 16-03-2013)
Mortgage or
Charge:-
Date of Mortgage: 30-04-2010
Amount: All moneys
Property: 98/19,060th parts or shares of and in The Remaining Portion of Kowloon Inland Lot No.
7072 and Kowloon Inland Lot No. 8670, 8567 & 7074 (Unit 4 on 4/F. of Chevalier House, 45‑51 Chatham Road South, Kowloon, Hong Kong.)
Mortgagee: Hang Seng Bank Ltd., Hong Kong.
Profit or Loss: Making a small profit in the past three years.
Condition: Business is rather active.
Facilities: Adequate for current running.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
· Hang Seng Bank Ltd., Hong Kong.
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
Having issued 10,000 ordinary shares of HK$1.00 each, Bhavani Hong Kong Ltd. was equally owned by two Indian merchants. They were also directors of the subject.
Now, the shareholders of the subject have been reshuffled. It is jointly owned by Alpesh Manubhai Ahir, holding 25% interests; and Samir Ravjibhai Khadela, holding 75%. They are also directors of the subject.
The first is residing in Hong Kong while the latter is an India passport holder but residing in Belgium.
The subject’s Managing Director Mr. Alpesh Manubhai Ahir has been in Hong Kong for a very long time. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.
Mr. Alpesh Manubhai Ahir can be reached at his mobile phone number 6305 2889.
The subject is trading in cut and polished diamonds, diamond and gold jewellery, carat size diamonds, fancy diamonds, loose diamonds, diamond jewellery, platinum jewellery, etc. Products are mainly imported from India and Belgium. Prime markets are Hong Kong, China, South Korea, Taiwan, Southeast Asia, etc.
Head office in Mumbai, India, the subject has had an associated company Yin Po Company, a Hong Kong registered firm located at Flat B, 7/F., Kiu Yip Building, 26-28 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong. This firm is also a diamond trader.
Besides, the subject is an associate of Bhavani Gems which is an India-based firm. It is responsible for promoting Bhavani Gems throughout the Asia Pacific region by distributing its products in the form of “Regular, high-end gems and diamonds in pointers carat plus sizes”.
The subject has got an affiliated company known as Instyle Jewellery which is also an India-based firm. Instyle Jewellery has been a Sightholder of DTC (Diamond Trading Company) since 1996, and is an ISO9001 certified company. It is a major manufacturer of round and tapers polished diamonds, and offers jewellery manufacturers and retailers in the United States, Belgium, the Asia Pacific region and India a full range of small stars, melee and other finished diamonds. Instyle Jewellery’s diamonds are graded by three makes, Gem, High and Regular to fulfil the customer’s specific requirements.
Bhavani Gems offers customers worldwide with consistent assortment and just in time delivery. It is trading in three types of products: Gems, High and Regular. Bhavani Gems markets diamonds of various sizes in rounds, princess and fancy shapes.
Bhavani Gems is also a Sightholder of DTC. It also has got the ISO9001:2000 certification and it is the winner of GJEPC India’s export award which is a symbols of its “hard work and achievement”. Currently, it is operating twelve factories in India.
In April 2008, DTC released the names of all 79 companies that are UK Sightholders for the 2008 to 2011 contract period while Bhavani Gems is one of the firms. In 2009, Bhavani Gems introduced B2B online website for business development. In 2010, Bhavani Gems started to manufacture “Bhavani Mikro Diamond” which is the world’s smallest certified polished diamond which are Weshing 0.0003 Crt or 0.00006 Gram (3333.33 pcs per Carat). This record has also been acknowledged by “Limca book of record”. Bhavani Gems installed the 1st ever Quazer II Sarin laser machine in the world in its factory in India. Currently, Bhavani Gems exports over US$90 million worth of polished diamonds annually, business is rather active.
The subject is engaged in the same lines of business as Instyle Jewellery.
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 3CON-011, S229-01.
Bhavani Gems business is handled by Mr. Nilesh Jhaveri who seems to be a family member of Mr. Pradeep Jagdish Jhaveri who was the former shareholder of the subject.
The subject has had an affiliate Super Diam B.V.B.A. in Antwerp, Belgium. It is likely that this firm is administered by Mr. Khadela Samir who was the former shareholder of the subject.
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 took part in “HKTDC Hong Kong International Jewellery Show 2012” which had been held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 16th to 20th February, 2012. Besides, it is going to take part in “HKTDC Hong Kong International Jewellery Show 2013” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th to 9th March, 2013.
The subject is fully supported by Bhavani Gems. Annual sales turnover ranges from HK$60 to 65 million. Business keeps on improving.
Since the history of the subject is over seven years and a months in Hong Kong, on the whole, consider it good for normal business engagements.
REMARKS:
Property information
of the company:-
Property Location: Unit 4 on 4/F., Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.
Owner: Bhavani Hong Kong Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
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Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
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30-04-2010 |
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Hang Seng Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
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.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.92 |
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UK Pound |
1 |
Rs.84.44 |
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Euro |
1 |
Rs.71.32 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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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.