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Report Date : |
18.10.2013 |
IDENTIFICATION DETAILS
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Name : |
WONG TAI (H.K.) CO. |
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Registered Address: |
Room 904, 9/F., Guardforce Centre, |
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Country : |
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Date of Incorporation : |
14.02.1997 |
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Com. Reg. No.: |
20675465-000-02 |
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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. |
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No. of Employees : |
No Employees In [It is to be noted that the company does not
have its own operating office in |
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 : |
No Operating office in Hong Kong |
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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
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Hong Kong |
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 -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 |
WONG TAI (H.K.)
CO.
Room 904, 9/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom,
Kowloon, Hong Kong.
PHONE: 852-2376 0641
FAX: 852-2376 0361
E-MAIL: infini@biznetvigator.com
Manager: Mr. Hemang Jasvantbhai Kantrodia
Establishment: 14th
February, 1997.
Organization: Partnership.
Capital:
Not
disclosed.
Business Category: Diamond Jewellery Trader.
Employees:
5. (Including associates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
WONG TAI (H.K.)
CO.
Head Office:-
Room 904, 9/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom,
Kowloon, Hong Kong.
Associated
Companies:- (Same address)
4C Diamonds Manufacturing Co., Hong Kong.
Divine Jewellery Mfg. (HK) Ltd., Hong Kong.
First Mark Ltd., Hong Kong.
Gilberto Jewelry Ltd., Hong Kong.
Infinity Diamonds Manufacturing Ltd., Hong Kong.
20675465-000-02
Manager: Mr. Hemang Jasvantbhai
Kantrodia
Contact Person: Mr. Deen
Name: Hemang Jasvantbhai
KANTRODIA
Residential Address: B/2
Panchkutir Apt. Panchvati, 2nd Lane, 17-Giriraj Collony, Ambavadi Ahmedabd Guj,
India.
Name: Hardik Pankaj VIRANI
Residential Address: Suite
301, 30 Hoveniersstraat, 2018 Antwerpen, Belgium.
The subject was established on 14th February, 1997 as a sole
proprietorship concern owned by Mr. Jignesh Navinchandra Sanghavi under the
Hong Kong Business Registration Regulations.
The following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
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Jignesh Navinchandra SANGHAVI |
14-02-1997 |
01-10-2003 |
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Akshit Kirankumar VASANI |
01-08-2003 |
15-12-2008 |
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Hemang Jasvantbhai KANTRODIA |
01-09-2008 |
--- |
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Hardik Pankaj VIRANI |
13-07-2011 |
--- |
Initially the subject was located at 13/F., Tung Shun Hing Commercial
Centre, 20-22A Granville Road, Tsimshatsui, Kowloon, Hong Kong, moved to Room
1301, 13/F., Rise Commercial Building, 5-11 Granville Circuit, Tsimshatsui,
Kowloon, Hong Kong in September 1998; and further moved to the present address
in October 2005.
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.
Employees: 5.
(Including associates)
Commodities Imported: India, other Asian countries, Europe, etc.
Markets: Asian countries, Thailand, Middle
East, US, etc.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C,
D/P, T/T, etc.
Capital: Not disclosed.
Profit or Loss: Making a small
profit every year.
Condition:
Keeping in an
active manner.
Facilities:
Making rather
active use of general banking facilities.
Payment:
So far so good.
Commercial Morality: Good.
Banker:
The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Standing:
Good.
Wong Tai (H.K.) Co. was a sole proprietorship operated and owned by
Mr. Hemang Jasvantbhai Kantrodia who is an Indian. It became a partnership as a new partner
Hardik Pankaj Virani joined in on 13th July, 2011. Virani is a Belgium passport holder and
currently residing in Antwerpen, Belgium.
Business commenced in February 1997, the subject is a diamond trader and
a commission agent. It has got three
associated companies located at its operating office, namely, 4C Diamonds
Manufacturing Co., Infinity Diamonds Manufacturing Ltd. [Infinity Diamonds] and
Gilberto Jewelry Ltd. All these firms
are diamond and jewellery traders which all were set up in Hong Kong. They are also business partners of the
subject.
The subject is trading in loose diamonds, polished diamonds, single cut
diamonds, tapper cut diamonds, full cut diamonds, etc. Rough diamonds are imported from India,
Belgium and other European countries.
However, India is its main supplying country. Some of the rough diamonds are polished or
processed in Hong Kong or China.
Finished products and polished diamonds are marketed in Hong Kong or
exported to India, the other Asian countries, Belgium, the other European
countries, the Middle East, the United States, etc. The subject is also a commission agent.
All the affiliated companies are operated by Mr. Jayesh B. Patel and his
family members all of whom are also Indian.
Infinity Diamonds was incorporated on 27th March, 2003 while Giberto
Jewelry Ltd. was incorporated on 23rd August, 2002. The former firm is a member of Hong Kong
Jewellery & Jade Manufacturers Association, Hong Kong.
The contact person of the subject is a Mr. Deen who is also an
Indian. He is also an accountant.
Infinity Diamonds trades in diamond jewellery, gold jewellery (14K, 18K,
21K and 22K), platinum jewellery (Pt 750, Pt 850, Pt 900, Pt 950 and Pt 990),
etc. The subject also trades in the same
kinds of products, more or less.
The subject’s business is chiefly handled by Kantrodia himself who is in
India most of the time.
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-A38.
The history of the subject in Hong Kong is over sixteen years. Overall business is rather active, making a
small profit every year. Regular
suppliers and customers have been maintained, especially those in Belgium.
The subject has had an associated company in Belgium which is operated
by Virani who is the new partner. To our
knowledge, the business of the Belgium firm is active and profitable.
On the whole, consider the subject good for normal business engagements.
NOTE:
It is to be noted that the
company does not have its own operating office in Hong Kong. The company uses
the address of its secretariat as its correspondence address only. Subject
operates from some other country and does not have a base in Hong Kong. Such
companies are registered in Hong Kong just to tax benefit purpose and due to
the strict privacy laws prevailing in the country. In such cases, the companies
are not required to have any employees in Hong Kong nor do have an office
there.
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 –
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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
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.61.58 |
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|
1 |
Rs.98.51 |
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Euro |
1 |
Rs.83.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<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.