|
Report Date : |
27.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
H.K. Impex |
|
|
|
|
Registered Office : |
Room 704, 7/F., Block 4, Chevalier House, 45-51 Chatham Road, Tsimshatsui, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
01.01.2002 |
|
|
|
|
Com. Reg. No.: |
32290536-000-01 |
|
|
|
|
Legal Form : |
Sole Proprietorship |
|
|
|
|
Line of Business : |
Importer and Exporter of all kinds of Diamonds and Jewellery |
|
|
|
|
No. of Employees : |
5 (Including Affiliate) |
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 |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
Usually Correct |
|
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
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
Manager: Mr. Bhagwanji Virji Lunagaria
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.
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.
32290536-000-01
Manager: Mr. Bhagwanji Virji Lunagaria
Contact Persons: Mr.
Mukesh Dholakiya
Name: Mr. Bhagwanji Virji
LUNAGARIA
Residential Address: B-241 Ambikanagar
Society, 099 Aarogya Kendra, Katargam, Surat, Gujarat, India.
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.
Activities: Importer
and Exporter.
Lines: All
kinds of diamonds and jewellery.
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.
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.
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
-
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.
-
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 –
-
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.62.45 |
|
|
1 |
Rs.100.86 |
|
Euro |
1 |
Rs.84.50 |
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.