|
Report Date : |
12.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
K. GIRDHARLAL (HONG KONG) LTD. |
|
|
|
|
Registered Office : |
Room 916, 9/F., Peninsula Square, West Wing, 18 Sung On Street,
Hunghom, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
06.03.2000 |
|
|
|
|
Com. Reg. No.: |
30774948 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
LINE OF BUSINESS : |
IMPORTER,
EXPORTER AND WHOLESALER OF ALL KINDS OF DIAMONDS, PRECIOUS STONES |
|
|
|
|
No. of Employees : |
6. (Including associates) |
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 : |
No Complaints |
|
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 |
K. GIRDHARLAL
(HONG KONG) LTD.
Room 916, 9/F., Peninsula Square, West Wing, 18 Sung On Street, Hunghom,
Kowloon, Hong Kong.
PHONE: 852-2311 6551
FAX: 852-2311 6553
E-MAIL: hongkong@kgirdharlal.com
kghk@kgirdharlal.com
rushabh@kgirdharlal.com
Managing Director: Mr. Vinodkumar Gautamlal Shah
Incorporated on: 6th March, 2000.
Organization: Private Limited Company.
Capital: Nominal: US$2,000,000.00
Issued: US$2,000,000.00
Business Category: Diamond
Trader.
Employees: 6. (Including associates)
Main Dealing Banker: Hang Seng
Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
K. GIRDHARLAL
(HONG KONG) LTD.
Registered Head
Office:-
Room 916, 9/F., Peninsula Square, West Wing, 18 Sung On Street, Hunghom,
Kowloon, Hong Kong.
Affiliated/Associated
Companies:-
Ace Carat Trading Co., Hong Kong.
Aspeco NV, Belgium.
BLH-KG Diamonds (China) Co. Ltd., China.
Diamantina S.A., Luxembourg.
K. Girdharlal Diamonds (India) Pvt. Ltd., India.
K. Girdharlal DMCC, UAE.
K. Girdharlal Inc., USA.
K. Girdharlal International Pvt. Ltd., India.
K. Girdharlal, India.
Lidya BLH (HK) Co. Ltd., Hong Kong.
(Same address)
Pal Impex Company, Hong Kong.
(Same address)
30774948
0706922
Managing Director: Mr. Vinodkumar
Gautamlal Shah
Contact Person: Mr. Anthony Yim
Nominal Share
Capital: US$2,000,000.00 (Divided into
295,000 Ordinary shares and 1,705,000 Preference shares of US$1.00 each)
Issued Share Capital: US$2,000,000.00
(As per registry dated 06-03-2013)
|
Name |
|
No. of shares |
|
|
|
|
Ordinary |
Preference |
|
K. Girdharlal Diamonds (India) Pvt. Ltd. 1003, Panchratna, M.P. Marg, Opera House, Mumbai-400004, India. |
|
249,999 |
- |
|
Vinodkumar Gautamlal SHAH |
|
1 |
- |
|
K. Girdharlal 1003, Panchratna, M.P. Marg, Opera House, Mumbai-400004, India. |
|
- |
1,450,000 |
|
Diamantina S.A. 1 Rue de la Chapelia, L-1325, Luxembourg. |
|
45,000 |
255,000 |
|
|
|
––––––– |
–––––––– |
|
|
Total: |
295,000 ====== |
1,705,000 ======= |
(As per registry dated 06-03-2013)
|
Name (Nationality) |
Address |
|
Vinodkumar Gautamlal SHAH |
2, Bhaswan Building, 247 Walkeshwar Road, Mumbai-400006, India. |
(As per registry dated 06-03-2013)
|
Name |
Address |
Co. No. |
|
Taxbase Consultants Ltd. |
Room 1426, 14/F., Hollywood Plaza, 610 Nathan Road, Kowloon, Hong
Kong. |
0411324 |
The subject was incorporated on 6th March, 2000 as a private limited
liability company under the Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds, precious stones.
Employees: 6.
(Including affiliate)
Commodities Imported: India,
other Asian countries, Belgium, etc.
Markets: Singapore, Thailand, Taiwan, other
Southeast Asian countries, US, Belgium, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: US$2,000,000.00 (Divided into 295,000 Ordinary
shares and 1,705,000 Preference
shares of US$1.00
each)
Issued Share Capital: US$2,000,000.00
Mortgage or Charge: (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Keeping in a satisfactory
manner.
Facilities: Making active use of general
banking facilities.
Payment: Met as contracted.
Commercial Morality: Satisfactory.
Bankers:-
Hang Seng Bank Ltd., Hong Kong.
ABN AMRO Bank N.V., Hong Kong Branch.
Standing: Very Good.
K. Girdharlal (Hong Kong) Ltd. is 12.5% owned by K. Girdharlal Diamonds
(India) Pvt. Ltd. which is an India-based firm.
The subject is chiefly owned by K. Girdharlal [KG], also an India firm
holding 72.5%; the remain 15.0% is held by Diamantina S.A., a Luxembourg-based
firm.
The subject is a diamond and gemstone trader. It has got an affiliated company in Hong Kong
known as Pal Impex Company which is also a diamond trader. The subject is chiefly owned and operated by
the Shah family.
The subject has had a main affiliated company Lidya BLH (HK) Co. Ltd.
[Lidya] located at its operating address.
Lidya is also owned and operated by the Shah family.
Currently, the subject is trading in the following significant
products:-
·
All Kinds of Loose Diamonds;
·
Carat-Size Diamond;
·
Certificated Diamond;
·
Diamond Studded Bangle;
·
Loose Diamonds; &
·
Single Diamond, etc.
The subject’s single diamonds are high-end products in different shapes
and colours.
The subject is an associate of a major diamond-manufacturing group in
Mumbai in India — K. Girdharlal International Pvt. Ltd. [KGIP] — which is a
sightholder of the Diamond Trading Company.
In about 2001, KGIP in India took the initiative in diversifying into
jewellery manufacturing and exporting its jewellery products. Now, KGIP is engaged in manufacturing all
kinds of cut and polished diamonds and its products have been exported to
worldwide countries.
KGIP is also one of the largest Indian exporters of polished
diamonds. It is renowned for fancy cut
diamonds in particular, but also has a repertoire of polished diamonds to
offer, from 0.01¢ to 5.00¢ in round, ideal and hearts and arrows. KGIP was one of the first companies to
produce an ideal cut princess diamond.
With an enviable record in manufacturing its newest factory boasts of
state-of-the-art technology, KGIP recently has ventured into jewellery
manufacturing and has reaped more accolades from the industry.
Another firm belongs to the KG Group known as KG is also
significant. Based in Surat, India, KG
was formed in the mid-60s and has adopted the present style since 1967.
Over the past four decades, KG has established a presence throughout the
diamond value chain: rough sourcing, cutting and polishing, polished trading,
jewellery manufacturing and haute joaillerie.
KG employs over 2,500 people worldwide and has a distribution network
that covers every diamond consuming market: Antwerp (Europe), Dubai (the Middle
East), Hong Kong (Asia Pacific Region), Mumbai (India), New York (Americas),
and Shanghai (Mainland China).
In 1985, KG set up an office in Antwerp, Belgium which is the first
overseas sales office of KG. In 1988, KG
began diamond manufacturing in Surat, India.
In 1998, KG set up K. Girdharlal Inc. in New York, the United
States. In November 2005,
K. Girdharlal DMCC in Dubai was opened.
In November 2006, KG’s new jewellery factory in Mumbai, India commenced
business. KG is one of the key members
of the KG Group.
The subject enjoys the support of this strong production capacity of
fine-make diamonds and continues to focus its efforts on marketing loose
diamonds and upgrading services to its customers in Southeast Asia. The subject exports its products to the Asian
countries and has formed a strategic alliance with a well-established diamond
wholesaler in China. Sales offices have
been set up in Shenzhen Special Economic Zone, Shanghai and Beijing.
The subject has upgraded the craftsmanship and skills of its workers as
well as polishing equipment at its factories in India. It is supplying diamonds of fine make, which
include quite substantial quantities of hearts-and-arrows diamonds, to its
customers regularly. Prime markets are
the Greater China region, Singapore, Malaysia and Indonesia. Business is rather active.
The annual sales turnover of the KG Group is very significant.
The Group is not only one of the largest manufacturers by carat volume
but also is one of the largest firms in sales turnover.
The subject is supported by KG Group and ultimately by the Shah
family. The CEO of KGIP is Kishorlal
Shah.
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.
The contact person of the subject Mr. Anthony Yim is a Hongkongnese.
The subject has had premises in Hong Kong.
As the history of the subject in Hong Kong is over thirteen years, on
the whole, consider it good for normal business engagements.
Property information of the company:-
1. Property Location: Flat B on 18/F. of Block 7, Parc
Palais, 18 Wylie Road, Kowloon, Hong Kong.
Owner: K. Girdharlal (Hong Kong)
Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
07-07-2006 |
HK$5,740,000 |
Hang Seng Bank Ltd., Hong Kong. |
Legal charge to secure general banking facilities |
2. Property Location: Flat C on 18/F. of Block 7, Parc
Palais, 18 Wylie Road, Kowloon, Hong Kong.
Owner: K. Girdharlal (Hong Kong)
Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
27-06-2006 |
HK$5,789,000 |
Hang Seng Bank Ltd., Hong Kong. |
Legal charge to secure general banking facilities |
|
Date |
Particulars |
Amount |
|
27-06-2006 |
Instrument: Legal Charge Property: 194/341,874th parts or shares of and in Kowloon Inland Lot No. 11118
(Flat C on 18/F. of Block 7 of Parc Palais, 18 Wylie Road, Kowloon, Hong
Kong.) Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
HK$5,789,000 |
|
07-07-2006 |
Instrument: Legal Charge Property: 181/341,874th parts or shares of and in Kowloon Inland Lot No. 11118
(Flat B on 18/F. of Block 7 of Parc Palais, 18 Wylie Road, Kowloon, Hong
Kong.) Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
HK$5,740,000 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.90 |
|
|
1 |
Rs.100.47 |
|
Euro |
1 |
Rs.84.65 |
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.