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Report Date : |
30.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
RELIANCE TRADES |
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Registered Office : |
Flat A4, 6/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
09.02.1981 |
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Com. Reg. No.: |
07053042-000-02 |
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Legal Form : |
Partnership |
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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 : |
5. (Including associates) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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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 – 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 |
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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 |
RELIANCE TRADES
ADDRESS: Flat A4, 6/F., Hankow
Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2366 3063
FAX: 2311 0919
E-MAIL: reliance@hkstar.com
Manager: Mr. Seyed Abdul Gani
Seyed Abdul Kader
Establishment: 9th
February, 1981.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Diamond Trader.
Annual Turnover: HK$40~45
million.
Employees:
5. (Including associates)
Main Dealing Banker: Industrial & Commercial Bank of China (Asia) Ltd.,
Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Flat A4, 6/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong
Kong.
P.O. Box 97948, Tsim Sha Tsui Post Office, Kowloon, Hong Kong.
Associated
Companies:- (Same address)
Bridiam, Hong Kong.
Wai Hing Co., Hong Kong.
07053042-000-02
Manager: Mr. Seyed Abdul Gani
Seyed Abdul Kader
Contact Person: Mr. Kader Abdul
Name: Mr. Seyed Abdul Gani SEYED
ABDUL KADER
Residential Address: 2/F., 11
Lock Road, Kowloon, Hong Kong.
Name: Mr. Asik Ali MOHAMED
SADAKTHAMBY
Residential Address: Flat A4,
6/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
Name: Mr. Seyed Abdul Kader Mafaz
MOHAMED
Residential Address: Flat A4,
6/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 9th February, 1981 as a sole
proprietorship concern owned by Seyed Abdul Gani Seyed Abdul Kader under the
Hong Kong Business Registration Regulations.
The following
table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Seyed Abdul Gani SEYED ABDUL KADER |
09-02-1981 |
- |
|
Asik Ali MOHAMED SADAKTHAMBY |
24-07-1985 |
- |
|
Samul Haque MOHAMED SADAK |
12-01-1993 |
01-11-2011 |
|
Ameer Hamsha AHAMED SHAKIR |
01-04-1997 |
31-12-1998 |
|
Mohamed Afrah HABEEB MOHAMED |
01-01-1999 |
01-04-1999 |
|
Seyed Abdul Kader Mafaz MOHAMED |
24-06-2010 |
- |
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: 5. (Including associates)
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan,
Southeast Asia, Europe, Middle East, etc.
Annual Turnover: HK$40~45 million.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P,
etc.
Capital: Not
disclosed.
Profit or Loss: Making a small profit every year.
Condition:
Keeping in an
active and satisfactory manner.
Facilities:
Making active
use of general banking facilities.
Payment:
Met obligations
as contracted.
Commercial Morality: Satisfactory.
Banker:
Industrial
& Commercial Bank of China (Asia) Ltd., Hong Kong.
Standing:
Small.
Reliance Trades is a partnership jointly owned by Seyed Abdul Gani Seyed Abdul Kader, Asik Ali Mohamed Sadakthamby, and Seyed Abdul Kader Mafaz Mohamed. All the partners are Indians who are Hong Kong ID Card holders and have got the right to reside in Hong Kong permanently. The last one S.A. K. Mafaz Mohamed joined in the subject on 24th June, 2010.
Over the past
years, the subject has got partners joined in and retired. Now, the subject is managed by the
above-mentioned three partners.
The subject’s
operating address is in a private and commercial building known as Hankow Centre
which is in Tsimshatsui, Kowloon, Hong Kong.
The subject is in the private part of the building. It is likely that the partners of the subject
also reside at the subject’s office.
Business commenced
in February 1981, the subject is a polished and cut diamond importer, exporter
and wholesaler. It also trades in
Alexandrite, emerald, precious stones, ruby jade, gem sets, semi-precious
stones, blue or coloured sapphire, Tanzanite, etc. Commodities are chiefly imported from India
and Europe. Prime markets are Hong Kong,
Japan, Southeast Asia, Europe, the Middle East, North America, etc.
The subject also
carries the following products:-
· Diamond (From India & Belgium);
· Gemstones & Jade (Gemstones from Thailand, Bulgaria, India & Sri Lanka); &
Precious &
Semi-Precious Jewellery (From Saudi Arabia, Thailand & Switzerland).
Overall business
of the subject is satisfactory.
The subject has
got an associated company Wai Hing Co. [Wai Hing] which is located at the same
operating office of the subject. Wai
Hing is a is a sole proprietorship set up and owned by Mr. Asik Ali Mohamed
Sadakthamby who is one of the partners of the subject. Business commenced in November 2008, Wai Hing
is also a diamond importer, exporter and wholesaler.
Besides Wai Hing,
the subject had another associated company Bridiam located at the same
address. Bridiam is a sole
proprietorship set up and owned by Mr. Ahamed Kabir M. K. A. B. Syed who is an
Indian. He is a Hong Kong ID Card holder
and has got the right to reside in Hong Kong permanently. Also trading in diamonds, Bridiam was
established on 21st February, 2001.
The subject’s
business is chiefly handled by the three partners. The annual sales turnover of the subject
ranges from HK$40 to 45 million. Makes a
profit every year. Regular suppliers in
India and overseas customers have been maintained.
The subject is one
of the oldest Indian diamond traders in Hong Kong. The Contact Person Mr. Kader Abdul is also an
Indian.
On the whole,
since the history of the subject in Hong Kong is over thirty-two years,
consider it 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 –
-
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.56.24 |
|
UK Pound |
1 |
Rs.84.54 |
|
Euro |
1 |
Rs.72.32 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.