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Report Date : |
08.11.2013 |
IDENTIFICATION DETAILS
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Name : |
VIJISAN (H.K.) |
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Registered Office : |
c/o C. Mahendra Exports (H.K.) Ltd. Flat 808, 8/F., Guardforce Centre, |
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Country : |
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Date of Incorporation : |
13.04.2000 |
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Com. Reg. No.: |
30876950-000-04 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of All
kinds of diamonds. |
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No. of Employees : |
2.
(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 : |
Slow but 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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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 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 |
VIJISAN (H.K.)
c/o C. Mahendra Exports (H.K.) Ltd.
Flat 808, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom,
Kowloon, Hong Kong.
(Formerly located at:
Room 804, 8/F., Cheong Shing Court, 7 San Lau Street, Hunghom, Kowloon,
Hong Kong.)
PHONE: 852-2311 2011
FAX: Not available
Manager: Mr. Abdul Samad Ibrahim Solkar
Establishment: 13th
April, 2000.
Organization: Sole
Proprietorship.
Capital:
Not
disclosed.
Business Category: Diamond Trader.
Employees:
2. (Including affiliate)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
VIJISAN (H.K.)
Head Office:-
c/o C. Mahendra Exports (H.K.) Ltd.
Flat 808, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom,
Kowloon, Hong Kong.
Registered
Address:-
Flat E, 22/F., Hong King Building, 28 Hong Keung Street, San Po Kong, Kowloon,
Hong Kong.
Mailing Address:-
P.O. Box 86487, Gillies Avenue Post Office, Kowloon, Hong Kong.
30876950-000-04
Manager: Mr. Abdul Samad Ibrahim Solkar
Name: Mr. Abdul Samad Ibrahim SOLKAR
Residential Address: 14/F.,
Ocean View Court, 25 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 13th April, 2000 as a sole proprietorship
concern owned by Mr. Rajendrakumar Jayantilal Soni under the Hong Kong Business
Registration Regulations.
The following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Rajendrakumar Jayantilal SONI |
13-04-2000 |
02-06-2000 |
|
Abdul Samad Ibrahim SOLKAR |
01-06-2000 |
--- |
Initially the subject was located at 14/F., Ocean View Court, 25 Chatham
Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat B, 7/F., Golden Mansion, 83-85
Chatham Road, Tsimshatsui, Kowloon, Hong Kong in August 2005; to Room 804,
8/F., Cheong Shing Court, 7 San Lau Street, Hunghom, Kowloon, Hong Kong in June
2006; to Flat 2, 2/F., King Wing Building, 57 Man Tai Street, Hunghom, Kowloon,
Hong Kong in November 2007; to Flat A, 11/F., Po Sun Mansion, 87 Bulkeley
Street, Hunghom, Kowloon, Hong Kong in March 2009; and further moved to Flat E,
22/F., Hong King Building, 28 Hong Keung Street, San Po Kong, Kowloon,
Hong Kong in March 2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of diamonds.
Employees: 2. (Including affiliate)
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Hong
Kong, other Asian countries, North America, Western 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 very small profit in the past years.
Condition: Business
is normal.
Facilities:
Making fairly
active use of general banking facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Small.
Vijisan (H.K.) is a sole proprietorship set up in April 2000 and now
owned by Mr. Abdul Samad Ibrahim Solkar who is an Indian. He is the subject’s manager holding an India
passport. Solkar joined in the subject
in June 2000. It seems that he is a Hong
Kong ID Card holder and has got the right to reside in Hong Kong permanently.
The subject is using the office of C. Mahendra Exports (H.K.) Ltd. [CME]
as its corresponding address. Now, CME
is located at Flat 808, 8/F., Guardforce Centre, 3 Hok Yuen Street East,
Hunghom, Kowloon, Hong Kong.
We can reach CME at the phone number 852-2311 2011. The respondent said his office is also the
office of the subject.
Your given phone number 852-2311 2145 was the old phone number of the
subject. According to the respondent of
this number, the subject’s main mailing address is P.O. Box 86487, Gillies
Avenue Post Office, Kowloon, Hong Kong.
The subject’s registered address is located at Flat E, 22/F., Hong King
Building, 28 Hong Keung Street, San Po Kong, Kowloon, Hong Kong. This office is not in a commercial building
but a residential building. It is likely
that Solkar has moved to this new address but does not make any amendments on
the subject’s registration materials. It
seems that the subject’s real operating address is also Solkar’s latest
residential address. The residential
building is not trespassed by outsiders.
The subject moved to this new address in March 2011.
The subject has no employees in Hong Kong.
The subject is a diamond trader.
It is dealing in fine coloured diamonds and rare gemstones. Products include fancy coloured diamonds,
unusual rose cut and briolette cut diamonds.
Diamonds and gemstones are imported from India, Belgium and the other
European countries, etc. Some of the
commodities are polished diamonds.
Polished and cut diamonds are exported or re‑exported to Japan,
other Asian countries, Europe, the Middle East and North America. Business is normal.
Originally, the subject was set up by Rajendrakumar Jayantilal Soni who
is also an Indian. Prior to setting up
the subject, on 30th October, 1989, Soni set up a diamond trading firm “Ronak
Gems”. Soni retired from the subject on
2nd June, 2000 and has paid more attention on Ronak Gems. Now, Ronak Gems is still operated by
Soni. Besides Ronak Gems, Soni is also
the sole proprietor of Hong Kong Capital Co.
Established on 14th April, 1994, Hong Kong Capital Co. is also a
diamond trader.
The subject is just a one-man company.
Keeping a balance account or making a very small profit in most of the
past years.
On the whole, since the history of the subject in Hong Kong is over
thirteen years, on the whole, consider it good for normal business engagements
in small credit amounts.
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.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 |
|
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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.