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Report Date : |
22.10.2013 |
IDENTIFICATION DETAILS
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Name : |
BAO SHIN (HK) CO. |
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Registered Office : |
Flat 01, 10/F., Chevalier House, |
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Country : |
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Date of Incorporation : |
20.02.1997 |
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Com. Reg. No.: |
20675457-000-02 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer and Exporter, Commission Agent of
All kinds of diamonds and jewellery, gem commodities. |
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No. of Employees : |
7.
(Including affiliates) |
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 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) |
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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 |
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Source
: CIA |
BAO SHIN (HK) CO.
Flat 01, 10/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui,
Kowloon, Hong Kong.
PHONE: 852-2367 5960
FAX: 852-2367 6675
Manager: Mr. Paras Kumarbhai Patel
Establishment: 20th
February, 1997.
Organization: Sole
Proprietorship.
Capital:
Not
disclosed.
Business Category: Diamond and Jewellery Trader.
Employees:
7. (Including affiliates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
BAO SHIN (HK) CO.
Head Office:-
Flat 01, 10/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui,
Kowloon, Hong Kong.
Affiliated
Companies:- (Same address)
Prateek Exports Ltd., Hong Kong.
Prateek Exports, Hong Kong.
20675457-000-02
Manager: Mr. Paras Kumarbha Patel
Name: Mr. Paras Kumarbha PATEL
Residential Address: Flat B,
19/F., Tower 12A, Costa Del Sol (Phase IIB), Laguna Verde, 8 Laguna Verde
Avenue, Hunghom, Kowloon, Hong Kong.
The subject was established on 20th February, 1997 as a sole
proprietorship concern owned by Mr. Jatin Champaklal Magiya under the Hong Kong
Business Registration Regulations.
Mr. Paras Kumarbha Patel joined in as a partner on 1st July, 2007 while
Mr. Jatin Champaklal Magiya retired on 1st March, 2008. Now, the subject is just owned by Mr. Patel.
Formerly the subject was located at Flat D & E, 8/F., Cameron Plaza,
23‑25A Cameron Road, Tsimshatsui, Kowloon, Hong Kong, moved to the
present address in February 2012.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer
and Exporter, Commission Agent.
Lines: All
kinds of diamonds and jewellery, gem commodities.
Employees: 7. (Including affiliates)
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan,
India, 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: Maintaining a small profit in the past years.
Condition:
Keeping in an
active status.
Facilities:
Making active
use of general banking facilities.
Payment:
Met obligations
as contracted.
Commercial Morality: Satisfactory.
Banker:
The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Standing:
Normal.
Bao Shin (HK) Co. is a sole proprietorship owned and operated by Mr. Paras
Kumarbha Patel who is an Indian. Patel
is a Hong Kong ID Card holder and has got the right to reside in Hong Kong
permanently.
The subject chiefly is a diamond trader.
It is trading in loose diamonds, single cut diamonds, tapper cut
diamonds, full cut diamonds, jewellery, gold-silver, gem commodities, etc. Polished and cut diamonds are chiefly
imported from India. Finished products
are marketed in Hong Kong and exported to Japan, India, other Asian countries,
Europe, the United States, etc.
The subject also trades in jewellery bracelet watches and diamond
watches once in a while. Main products
carried are bracelets, brooches, earrings, necklaces, pendants, rings,
etc. Besides, the subject is also a
commission agent.
The subject has had two affiliated companies, namely, Prateek Exports
[Prateek] and Prateek Exports Ltd. [PEL] located at its operating address. Prateek is a also sole proprietorship set up
on 8th January, 1990 and owned by Mr. Sunil Jain who is an Indian and also
has been in Hong Kong for a very long time.
Prateek is also a loose diamond trader.
It also trades in jewellery bracelet watches, diamond watches, etc. The subject also trades in Prateek’s
products. Mr. Sunil Jain is also the
Managing Director of PEL.
In order to penetrate the international market further, Prateek 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 3E-G17.
The subject has got advantage form Prateek as it takes part in fairs and
exhibitions.
The subject’s old partner Mr. Jatin Champaklal Magiya retired on 1st
March, 2008. Now, Mr. Jatin Champaklal
Magiya is the Managing Director of Forever Lucky Diamond Ltd. [FLDL] which is a
Hong Kong-based firm. Incorporated on
8th November, 2007, FLDL is equally owned by Mr. Jatin Champaklal Magiya and
Mr. Hema Jatin Magiya, both of whom are also Indian. Being also a diamond trader and owned by the
Magiya family, FLDL is located at a different address. FLDL is a business partner of the subject.
The subject has developed business ties with a number of suppliers in
India and numerous customers in foreign countries and Hong Kong.
The business of the subject is chiefly handled by Patel himself. History in Hong Kong is over sixteen years
and seven months.
On the whole, consider it good for normal business engagements.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.49 |
|
|
1 |
Rs.99.41 |
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Euro |
1 |
Rs.84.12 |
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.