MIRA INFORM REPORT
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Report Date : |
23.05.2013 |
IDENTIFICATION DETAILS
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Name : |
H.K. Impex |
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Registered Office : |
Room 704, 7/F., Block 4, Chevalier House, 45-51 Chatham Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
01.01.2002 |
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Com. Reg. No.: |
32290536-000-01 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer and Exporter of all kinds of Diamonds and Jewellery, etc. |
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No. of Employees : |
5 (Including Affiliate) |
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 : |
Usually Correct |
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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) |
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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.
Source
: CIA
Company Name and address
H.K. IMPEX
ADDRESS: Room 704, 7/F., Block 4,
Chevalier House, 45-51 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2367
8114, 2724 6530, 3741 2290
FAX: 2368
7147
E-MAIL: info@hkimpex.com
hk@diamondbyhk.com
MANAGEMENT
Manager: Mr. Bhagwanji Virji Lunagaria
SUMMARY
Establishment: 1st
January, 2002.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond
Importer and Exporter.
Annual Sales Turnover: US$25-30
million.
Employees: 5. (Including affiliate)
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
ADDRESS
Head Office:-
Room 704, 7/F., Block 4, Chevalier House, 45-51 Chatham Road,
Tsimshatsui, Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
Hari Krishna Group of Companies
H.K. Designs (India) Seepz Unit, India.
H.K. Designs Inc., USA.
H.K. Diam BVBA, Belgium.
H.K. Exports (Shanghai) Ltd., China.
H.K. International, USA.
H.K. Jewels Pvt. Ltd., India.
Hari Krishna Exports Pvt. Ltd., India.
Unity Diam, Hong Kong. (Same
address)
etc.
BUSINESS REGISTRATION NUMBER
32290536-000-01
MANAGEMENT
Manager: Mr. Bhagwanji Virji Lunagaria
Contact Persons: Mr.
Mukesh Dholakiya
SOLE PROPRIETOR
Name: Mr. Bhagwanji Virji
LUNAGARIA
Residential Address: B-241
Ambikanagar Society, 099 Aarogya Kendra, Katargam, Surat, Gujarat, India.
HISTORY
The subject was established on 1st January, 2002 as a partnership
concern jointly owned by Mr. Urveshi Kirtikant Maniyar and Mr. Bhagwanji Virji
Lunagaria under the Hong Kong Business Registration Regulations.
The following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Urveshi Kirtikant MANIYAR |
01-01-2002 |
28-09-2004 |
|
Bhagwanji Virji LUNAGARIA |
01-01-2002 |
- |
|
Mukeshkumar G. DHOLAKIYA |
07-08-2002 |
05-08-2003 |
At the very beginning, the subject was located at Flat E, 11/F., Luna
Court, 53-59 Kimberly Road, Tsimshatsui, Kowloon, Hong Kong, moved to Room
1603, 16/F., Winfield Commercial Building, 6-8A Prat Avenue, Tsimshatsui,
Kowloon, Hong Kong in December 2002, moved to Room 1011, 10/F., Peninsula
Square, West Wing, 18 Sung On Street, Hunghom, Kowloon, Hong Kong in
October 2005, and further to the present address in August 2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
OPERATIONS
Activities: Importer
and Exporter.
Lines: All
kinds of diamonds and jewellery, etc.
Employees: 5. (Including affiliate)
Commodities Imported: India, other
Asian countries, Europe, etc.
Markets: Asia
Pacific region, Middle East, Australia, New Zealand, US, Europe, etc.
Annual Sales Turnover: US$25-30
million.
Terms/Sales: As per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
FINANCIAL INFORMATION
Capital: Not
disclosed.
Profit or Loss: Making
a small profit every year.
Condition: Keeping in an active
condition.
Facilities: Is
making use of general banking facilities.
Payment: Met obligations as required.
Commercial Morality: Good.
Banker: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Very Good.
GENERAL
H.K. Impex is a Hong Kong based company engaged in jewellery and diamond
business. The subject moved to the
present address in August 2011. It shares
the same office with Unity Diam which is also a Hong Kong‑registered
firm.
Business commenced on 1st January, 2002, the subject now is a sole
proprietorship owned by Mr. Bhagwanji Virji Lunagaria who is an Indian. Having 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.
The subject is a diamond trader.
It is trading in the following products:-
VVS1 Diamond, IF Diamond, SI3 Diamond, SI2 Loose Diamond, SI1 Loose
Diamond, Faceted Loose Diamond, GIA Diamond, etc.
It is able to offer its worldwide customers with international standard
diamonds. Its prime markets are the Asia
Pacific region, the Middle East, Australia, New Zealand, the United States,
Europe, etc.
The subject is a marketing affiliate of m/s. Hari Krishna Exports Pvt.
Ltd. which is in Mumbai, India. The
subject belongs to the Hari Krishna Group.
According to the subject, Hari Krishna Exports has been engaged in
diamond business since 1983. The Group
is a sightholder.
The Group has numerous workers spread over seven factories located in
the diamond city of Surat, India and with its marketing office in Mumbai,
India. The factories and office,
operated by the Hari Krishna Group, are able to cut and polish all kinds of
diamonds and export its products to worldwide countries. It is specialized in “white colour and round
cut” for all sizes.
The Hari Krishna Group is a diamond cutter and polisher. Its flagship company Hari Krishna Exports was
set up in 1992 at Surat in India with a simultaneous opening of sales and
marketing office in Mumbai, the hub of polished diamond trade. Ever since then, it has been at the cutting
edge of trade, setting trends in the field of manufacturing and exporting of
diamonds and studded jewellery.
Hari Krishna Group procures rough diamonds from various producers of
Russia, South Africa, Canada, and other agencies of Antwerp. Rough diamonds are brought to its Surat and
Ahmedabad manufacturing plants where they are cut and polished into different
shapes, sizes and weight. The Group’s
diamonds are usually in round brilliant cut [RBC] in whites. All the polished goods are sent to Mumbai
office where the Group’s sales office and assort departments are located. After the assortment has been done, goods are
being sold and exported to various clients throughout the world.
Hari Krishna Group has got the ISO9001:2000 certificate from ABS Quality
Evaluations Inc. It is also a “Three
Star Export House” recognized by the Government of India. From 2005 to 2010, the Gem and Jewellery
Export Promotion Council in India had awarded the Group with certificates for
its good export performance. Apart from
the subject, the Group has set up affiliated offices in the United States,
Shenzhen Special Economic Zone, Shanghai of China, etc.
The Group’s products are exported to the United States, Japan, Israel,
the United Kingdom, Belgium, Australia, New Zealand, the United Arab Emirates,
and some of the European countries.
H.K. International, the first overseas marketing alliance of Hari
Krishna Group, was set up in 1999 in New York.
It is dealing in diamonds ranging from 0.50 pts to 5.00 cts. and also in
stones duly certified by GIA and EGL.
The Group’s ventures include jewellery manufacturing facilities in
Mumbai: H.K. Jewels and H.K. Designs (India).
Now, the Group employs more than 3,000 people worldwide.
In 2005, the subject launched “Kisna” branded diamond jewellery
for the Indian market. “Kisna” is
the only branded diamond jewellery that is available in more than 1,015
jewellery outlets in India.
In order to penetrate the international market further, the subject has
taken part in fairs and exhibitions held in Hong Kong, China and other foreign
large cities.
The subject has got affiliated companies known as H.K. Designs (India)
Seepz Unit and H.K. Jewels Pvt. Ltd. in India.
Its affiliated company in China is known as H.K. Exports Shanghai Ltd.
The contact persons of the subject are Mr. Mukesh Dholakiya and
Mr. Bhagwanji Patel.
The Hari Krishna Group achieved a turnover of US$250 million for the
fiscal year 2007-2008. Now, the annual
sales turnover of the Group ranges from US$270 to 300 million. Overall business is active.
The annual sales turnover of the subject ranges from US$25 to 30
million. Business is profitable.
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 3G-D31.
The history of the subject in Hong Kong is over eleven years and four
months.
On the whole, fully supported by the Hari Krishna Group, the subject is
considered good for normal business engagements.
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.55.52 |
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|
1 |
Rs.84.09 |
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Euro |
1 |
Rs.71.67 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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 |
|
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 |
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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.