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Report Date : |
08.11.2013 |
IDENTIFICATION DETAILS
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Name : |
DREAM CREATIONS JEWELERY |
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Registered Office : |
Room 1606, 16/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui,
Kowloon |
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Country : |
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Date of Incorporation : |
13.10.2003 |
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Com. Reg. No.: |
33982417-000-10 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of All kinds of diamonds and
jewellery products. |
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No. of Employees : |
4.
(Including associate) |
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 |
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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 |
|
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 |
DREAM
CREATIONS JEWELERY
Room 1606, 16/F., Hart Avenue Plaza, 5-9
Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2191
9494, 2192 9493
FAX: 852-2191
9492
E-MAIL: info@littlestarltd.com
Manager:
Mr. Alpesh
Babulal Mehta
Establishment: 13th
October, 2003.
Organization: Sole
Proprietorship.
Capital:
Not
disclosed.
Business Category: Jewellery Trader.
Employees:
4. (Including associate)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
DREAM
CREATIONS JEWELERY
Head
Office:-
Room 1606, 16/F., Hart Avenue Plaza, 5-9
Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
Mailing
Address:-
P.O. Box 91115, Tsim Sha Tsui Post Office,
Kowloon, Hong Kong.
Associated
Companies:-
Belga Diam Co. Ltd., Thailand.
Hiralal Chhaganlal & Co., India.
Little Star Ltd., Hong Kong. (Same address)
33982417-000-10
Manager:
Mr. Alpesh
Babulal Mehta
Name:
Mr. Alpesh
Babulal MEHTA
Residential Address: Flat G, 5/F., Windsor Mansion, 29-31 Chatham Road, Tsimshatsui,
Kowloon, Hong Kong.
The subject was established on 13th October,
2003 as a sole proprietorship concern owned by Mr. Alpesh Babulal Mehta under
the Hong Kong Business Registration Regulations.
Initially the subject was located at Flat G,
5/F., Windsor Mansion, 29‑31 Chatham Road, Tsimshatsui, Kowloon,
Hong Kong, moved to Flat D, 14/F. of the same building in July 2004; to Room
801, 8/F., Lee Wai Commercial Building, 1-3 Hart Avenue, Tsimshatsui, Kowloon,
Hong Kong in September 2009; and further moved to the present address in
February 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.
Employees: 4.
(Including associate)
Commodities Imported: India, other Asian countries, etc.
Markets: Hong Kong, Japan, other Asian
countries, Europe, etc.
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 a
satisfactory condition.
Facilities:
Is making use
of general banking facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing:
Normal.
Dream Creations Jewelery is a sole
proprietorship set up and owned by Mr. Alpesh Babulal Mehta who is an
Indian. He is a Hong Kong ID Card holder
and has got the right to reside in Hong Kong permanently.
The subject is a jewellery trader. It has had an associated company Little Star
Ltd. [Little Star] located at its operating address. The subject and Little Star are engaged in
the same lines of business.
Little Star has been a diamond manufacturing
and trading firm since 1957 and incorporated as a private limited company in
2003. It is a diamond manufacturing and
trading company engaged in supplying of diamonds in an extensive assortment of
round and fancy shapes and sizes. Prime
markets are Hong Kong, China, the Middle East, Southeast Asia, etc. The managing director Mr. Alpesh Babulal
Mehta is also the manager of the subject.
The subject and Little Star are trading in
the following commodities: loose diamonds, GIA certified diamonds, baguette
diamonds, tappers diamonds, single cut diamonds, found diamonds, fancy shape
diamonds, natural diamonds, etc.
The subject also trades in precious stone
products. Many of them are low-end and
sold to local customers. It also serves
walk-in customers.
Most of the commodities are imported from
India, Europe, other Asian countries, etc.
Little Star has had an associated company in
India known as Hiralal Chhaganlal & Co. and Belga Diam Co. Ltd. in
Thailand.
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.
The businesses of the subject and Little
Star are chiefly handled by Mehta himself.
Business is normal.
The history of the subject in Hong Kong is
over ten years.
On the whole, consider it good for normal
business engagements.
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.
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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.
-
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.62.57 |
|
|
1 |
Rs.100.62 |
|
Euro |
1 |
Rs.84.62 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.