MIRA INFORM REPORT

 

 

 

Report Date :

01.11.2013

 

IDENTIFICATION DETAILS

 

Name :

HONG  KONG  CAPITAL  CO.

 

 

Registered Office :

Flat J, 3/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon

 

 

Country :

Hong Kong 

 

 

Date of Incorporation :

14.04.1994

 

 

Com. Reg. No.:

17986419-000-04

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Manufacturer, Importer and Exporter of all kinds of diamonds, etc.

 

 

No. of Employees :

Not available 

 

 

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)

 

 

 

 

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

 

 

 

Company name

 

HONG  KONG  CAPITAL  CO.

 

 

Company ADDRESS

 

Flat J, 3/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon, Hong Kong.

PHONE:            2311 2011

FAX:                 2721 0173

 

 

MANAGEMENT

 

Manager:  Mr. Rajendrakumar Jayantilal Soni

 

 

SUMMARY

 

Establishment:                          14th April, 1994.

 

Organization:                 Sole Proprietorship.

 

Capital:                         Not disclosed.

 

Business Category:       Diamond Trader.

 

Employees:                  Nil.

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:          Satisfactory.

 

 

Company ADDRESS

 

Head Office:-

Flat J, 3/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon, Hong Kong.

 

Mailing Address:-

P.O. Box 86249, Gillies Avenue Post Office, Kowloon, Hong Kong.

 

Associated Company:-

Ronak Gems, Hong Kong.  (Same address and same owner)

 

 

BUSINESS REGISTRATION NUMBER

 

17986419-000-04

 

 

MANAGEMENT

 

Manager:  Mr. Rajendrakumar Jayantilal Soni

 

 

SOLE PROPRIETOR

 

Name:                           Mr. Rajendrakumar Jayantilal SONI

Residential Address:     14/F., Front Portion, Ocean View Court, 25 Chatham Road, Tsimshatsui, Kowloon, Hong

Kong.

 

 

HISTORY

 

The subject was established on 14th April, 1994 as a sole proprietorship concern owned by Mr. Kamlesh Jivanbhai Shah under the Hong Kong Business Registration Regulations.

 

The following table shows the changes of the partners:-

Name

Incoming Date

Outgoing Date

Kamlesh Jivanbhai SHAH

14-04-1994

18-07-2001

Rajendrakumar Jayantilal SONI

01-08-1994
10-10-2001

04-09-1994
-

Abdul Samad Ibrahim SOLKAR

01-08-1994

20-08-1995

Prakash Kirtilal MEHTA

17-07-2001

11-10-2001

 

Initially the subject’s registered address was located at “Unit D & E, 16/F., Cameron Plaza, 23-25A Cameron Road, Tsimshatsui, Kowloon, Hong Kong,” moved to “Room 108, 1/F., Wing On Plaza, 62 Mody Road, Tsimshatsui East, Kowloon, Hong Kong” in September 1998; to “Flat 7 & 8, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong” in May 2004; to “14/F., Front Portion, Ocean View Court, 25 Chatham Road, Tsimshatsui, Kowloon, Hong Kong” where is the residential address of the sole proprietor in July 2004; to “Flat B, 7/F., Golden Mansion, 83-85 Chatham Road, Tsimshatsui, Kowloon, Hong Kong” in August 2005; to “Flat F, 26/F., Block 1, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon, Hong Kong” in July 2007; to “Flat D, 18/F., Block 1” of the same building in July 2008; to “Flat G, 3/F., Block 2” of the same building in December 2009; and further moved to “Flat J, 3/F., Block 2” of the same building in January 2010.

 

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:          Manufacturer, Importer and Exporter.

 

Lines:               All kinds of diamonds, etc.

 

Employees:      Nil.

 

Raw Materials:   India, Belgium, other European countries, etc.

 

Markets:            Hong Kong, other Asian countries, North America, Western Europe, etc.

 

Terms/Sales:     COD or as per contracted.

 

Terms/Buying:  L/C, D/P, T/T, etc.

 

FINANCIAL INFORMATION

 

Capital:                         Not disclosed.

 

Profit or Loss:               Making a small profit every year.

 

Condition:                     Keeping in a normal condition.

 

Facilities:                      Making fairly active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

DBS Bank (Hong Kong) Ltd., Hong Kong.

 

Standing:                      Small.

 

GENERAL Hong Kong Capital Co. is a sole proprietorship owned and operated by Mr. Rajendrakumar Jayantilal Soni who is an Indian.  Soni retired from the subject in September 1994 but joined in again in October 2001.  Now, the subject is still controlled by him.  He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.

The subject’s registered address is located at “Flat J, 3/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon, Hong Kong.”  This office is not in a commercial building but a residential building.  This residential unit is occupied by an Indian.

This residence also seems to be the residence of Soni when he is in Hong Kong.  The residential building is not trespassed by outsiders.  The subject’s registered address moved to this address in January 2010.  Your given phone number 852-23112011 belongs to this residence.

Your belongs to a business centre.

According to the respondent in the above-mentioned address, the subject’s mailing address is at P.O. Box 86249, Gillies Avenue Post Office, Kowloon, Hong Kong.

The subject has no employees in Hong Kong.  It is a diamond trader.  It is dealing in fine coloured diamonds.  Products include fancy coloured diamonds, unusual rose cut and briolette cut diamonds and all kinds of loose diamonds.

Diamonds are chiefly imported from India, Belgium and other European countries, etc.  Most of the commodities are polished and cut diamonds.  Polished and cut diamonds are exported or re-exported to Japan, other Asian countries, Europe, the Middle East and North America.  Business is rather active.

The subject is just a one-man company.  Keeping a balance account or just making a very small profit in most of the past years.

Soni is also the sole proprietor of another diamond trading firm known as Ronak Gems.  This firm was set up on 30th October, 1989 and also located at the above-mentioned address.  Ronak Gems and the subject are engaged in the same lines of business, more or less.  This firm is a gemstone trader.

On the whole, since the history of the subject in Hong Kong is over eighteen years, consider it good for normal business engagements in small credit amounts.

 

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.61.41

UK Pound

1

Rs.98.29

Euro

1

Rs.84.12

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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