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Report Date : |
21.10.2013 |
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, 3 Hok Yuen Street East,
Hunghom, Kowloon |
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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) |
|
|
A2 |
A2 |
|
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 |
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.61.28 |
|
|
1 |
Rs.99.03 |
|
Euro |
1 |
Rs.83.80 |
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 |
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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.