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Report Date : |
07.09.2013 |
IDENTIFICATION DETAILS
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Name : |
ELAN JEWELS |
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Registered Office : |
Unit J3, 8/F., Kaiser Estate, Phase II, 51 Man Yue Street, Hunghom,
Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
15.03.2007 |
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Com. Reg. No.: |
37715595-000-03 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer and Exporter of Jewellery, fancy cut diamonds. |
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No. of Employees : |
5 (Including associate) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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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 |
ELAN JEWELS
Unit J3, 8/F., Kaiser Estate, Phase II, 51 Man Yue Street, Hunghom, Kowloon,
Hong Kong.
PHONE: 852-2311 4138, 2311 4139
FAX: 852-2364 1147
E-MAIL: info@vramsimpex.com
info@elanhk.com
Manager: Mr. Vithal Dhanjibhai Vaghasia
Establishment: 15th March, 2007.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond
& Jewellery Trader.
Annual Turnover: US$15~20 million (Including associate)
Employees: 5 (Including associate)
Main Dealing Banker: Wing Lung
Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
ELAN JEWELS
Head Office:-
Unit J3, 8/F., Kaiser Estate, Phase II, 51 Man Yue Street, Hunghom,
Kowloon, Hong Kong.
Affiliated/Associated
Companies:-
Baguette Diam Inc., USA.
G. Diam BVBA, Belgium.
Sun Sui Co., Hong Kong.
Vallbhabhai Dhanjibhai & Co., India.
Vrams Diamonds LLC, UAE.
Vrams Impex (HK) Ltd., Hong Kong.
(Same address)
Vrams Import, Hong Kong.
37715595-000-03
Manager: Mr. Vithal Dhanjibhai
Vaghasia
Name: Vithal Dhanjibhai VAGHASIA
Residential Address: Flat B,
13/F., Ocean View Court, 27‑27A Chatham Road, Tsimshatsui,
Kowloon, Hong Kong.
The subject was established on 15th March, 2007 as a sole proprietorship
concern owned by Mr. Vithal Dhanjibhai Vaghasia under the Hong Kong Business
Registration Regulations.
Originally the subject was registered under the name of Best Mark, name
changed to the present style on 6th August, 2010.
Formerly the subject was located at Unit J2, 8/F., Kaiser Estate, Phase
II, 51 Man Yue Street, Hunghom, Kowloon, Hong Kong, moved to Unit J3 of
the same floor and same building in November 2012.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer
and Exporter.
Lines: Jewellery,
fancy cut diamonds.
Employees: 5 (Including associate)
Commodities Imported: India,
Belgium, Africa, Russia, etc.
Markets: Middle
East, US, Europe, Southeast Asia, etc.
Annual Turnover: US$15~20
million (Including associate)
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/A, etc.
The Hong Kong General Chamber of Commerce,
Hong Kong.
[Membership No. HKE0445]
Capital: Not
disclosed.
Profit or Loss: Making
a small profit every year.
Condition: Business
is normal.
Facilities: Is
making active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
Wing Lung Bank Ltd., Hong Kong.
Bank of China (Hong Kong) Ltd.,
Hong Kong.
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Normal.
Elan Jewels is a sole proprietorship set up and owned by Mr. Vithal Dhanjibhai
Vaghasia who is an Indian. Being the
manager of the subject, he is a Hong Kong ID Card holder and has got the
right to reside in Hong Kong permanently.
The subject has had an associated company Vrams Impex (HK) Ltd. [Vrams
Impex] located at the same address. The
subject is a diamond and jewellery trader, so does Vrams Impex. Vrams Impex is wholly-owned by Mr. Vithal
Dhanjibhai Vaghasia.
The subject is specialized in manufacturing fancy cut diamonds. Most of the products are loose diamonds, polished
diamonds with a variety range of cuts and sizes. It also provides diamond jewellery such as
diamond earrings. Raw materials are
imported from India, Belgium, Africa, Russia, etc.
The followings are the subject’s main products:-
·
Finished Jewellery
·
Diamond Jewellery
·
White Diamond Jewellery
·
Pearl Jewellery
·
Pearl Simulant Jewellery
·
Materials
·
Diamond
·
Polished White Diamond
·
Polished Colour Diamond
The subject’s significant products are rings, earrings, pendants, rose
rings, diamond rings, 18K gold diamond rings.
Finished products are exported to the Middle East, the United States,
Europe, Southeast Asia, etc. Currently,
it has got the following foreign associated firms:-
·
Baguette Diam Inc., New York, US
·
G. Diam BVBA, Belgium
·
Vallbhabhai Dhanjibhai & Co., India
·
Vrams Diamonds LLC, Dubai, UAE
The above firms are responsible for marketing the subject’s products in
their local country respectively.
In order to penetrate the international market further, Vrams Impex has
taken part in fairs and exhibitions held in Hong Kong. For instance, it took part in Shenzhen
International Gold, Jewellery and Jade Show 2013 which had been held during the
period of 26th February to 1st March, 2013 in Shenzhen Special Economic Zone,
China.
The subject 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 1A-C31.
The subject’s business is chiefly handled by Vithal Dhanjibhai Vaghasia
himself. Including Vrams Impex, its
annual sales turnover ranges from US$15 to 20 million, making a small profit
every year. Business is normal.
The subject has had associated or affiliated diamond trading firms in
Hong Kong.
The history of the subject in Hong Kong is over six years.
On the whole, consider it 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.
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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.
-
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.65.96 |
|
|
1 |
Rs.102.91 |
|
Euro |
1 |
Rs.86.58 |
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.