MIRA INFORM REPORT

 

 

Report Date :

03.04.2014

 

IDENTIFICATION DETAILS

 

Name :

M B IMPEX

 

 

Registered Office :

Unit 1008, 10/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

16.10.1997

 

 

Com. Reg. No.:

21310844-000-10

 

 

Legal Form :

Partnership Concern

 

 

Line of Business :

·         Importer, Exporter and Wholesaler of Polished and cut diamonds & jewellery

·         subject also produces ODM products according to the requirements of its customers.

·         Subject product ranges include rings, earrings, pendants, bracelets and necklaces which are set in 18K gold and platinum with diamonds and gemstones.

 

 

No of Employees :

04

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

Hong Kong

A1

A1

 

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

 


 

CONCERN NAME

 

M  B  IMPEX

 

 

CONCERN ADDRESS

 

Unit 1008, 10/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong

 

PHONE:852-2994 8832

 

FAX:852-2311 3443

 

E-MAIL: mbimpex@netvigator.com 

 

 

MANAGEMENT

 

Manager:  Mr. Manishkumar Savjibhai Patel

 

 

SUMMARY

 

Establishment:          16th October, 1997.

 

Organization:             Partnership.

 

Capital:                     Not disclosed.

 

Business Category:   Diamond Trader.

 

Annual Turnover:       HK$100~120 million.

 

Employees:               4.

 

Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.

 

Banking Relation:       Satisfactory.

 

 


Concern ADDRESS

 

Head Office:-

Unit 1008, 10/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.

 

 

Associated/Affiliated Companies

 

D. Goldi B.V.B.A., Belgium.

Jewel Goldi (NY) Inc., USA.

Jewel Goldi, India.

M B Impex Ltd., Hong Kong.  (Same address)

R. Goldi (Shanghai) Diamond Co. Ltd., China.

S. Goldi (Asia) Ltd., Hong Kong.

S.Goldi, Hong Kong.  [Operated by Mr. Manishkumar Savjibhai Patel]

Shree Ramkrishna Export, India.

V. Goldi Ltd., Israel.

 

 

BUSINESS REGISTRATION NUMBER

 

21310844-000-10

 

 

MANAGEMENT

 

Manager:  Mr. Manishkumar Savjibhai Patel

 

 

PARTNERS

 

Name: 

 

Mr. Manishkumar Savjibhai PATEL

 

Residential Address:

 

7/F., Ocean View Court, 27A Chatham Road, Tsimshatsui, Kowloon, Hong Kong

 

Name: 

 

Mr. Nileshkumar Mohanbhai PATEL



Residential Address:

 

Flat E, 2/F., Luna Court, 53-59 Kimberley Road, Tsimshatsui, Kowloon, Hong Kong

 

 

HISTORY

 

The subject was established on 16th October, 1997 as a sole proprietorship concern owned by Mr. Manishkumar Savjibhai Patel under the Hong Kong Business Registration Regulations.

 

The following table shows the changes of the partners:-

 

Name

Incoming Date

Outgoing Date

Manishkumar Savjibhai Patel

16-10-1997

-

Jayeshbhai Mohanbhai Patel

01-06-2001

31-03-2002

Nileshkumar Mohanbhai Patel

05-01-2005

-

 

Initially the subject was located at 7/F., Ocean View Court, 27A Chatham Road, Tsimshatsui, Kowloon, Hong Kong where is the residential address of the partner, moved to Flat B, 10/F., Ocean View Court, 43 Mody Road, Tsimshatsui, Kowloon, Hong Kong in November 1997; to Flat F, 14/F., Block B, Hilton Towers, 96 Granville Road, Tsimshatsui East, Kowloon, Hong Kong in May 2002; to Room 502, 5/F., Lee Kar Building, 4‑4A Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong in August 2002; to 13/F., Fullcorp Centre, 53-55 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong in June 2005.  In December 2005, Fullcorp Centre was renamed Katherine House.  The subject moved to Unit L1, 13/F., Kaiser Estate, Phase 2, 47-53 Man Yue Street, Hunghom, Kowloon, Hong Kong in May 2007 and further to the present address in September 2012.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

OPERATIONS

 

Activities:                         Importer, Exporter and Wholesaler.

 

Lines:                              Polished and cut diamonds, jewellery

 

Employees:                      4.

 

Commodities Imported: Belgium India, Israel, other Asian countries, etc.

 

Markets:                             Belgium, USA, other Asian countries.

 

Annual Turnover:               HK$100~120 million.

 

Terms/Sales:                     As per contracted.

 

Terms/Buying:                    L/C, T/T, D/P, etc

 

 

MEMBERSHIP

 

Hong Kong Jewellery & Jade Manufacturers Association, Hong Kong.

Hong Kong Jewelry Manufacturers’ Association, Hong Kong.

Japan Jewellery Association, Japan.

 

 

FINANCIAL INFORMATION

 

Capital:                     Not disclosed.

 

Profit or Loss:           Making a small profit every year.

 

Condition:                  Business is active.

 

Facilities:                   Making active use of general banking facilities.

 

Payment:                   Met trade commitments as contracted.

 

Commercial Morality:  Satisfactory.

 

 

Banker

 

Hang Seng Bank Ltd., Hong Kong.

Bank of Baroda (Hong Kong) Ltd., Hong Kong.

 

 

Standing:  Normal.

 

 

GENERAL

 

M B Impex is a partnership concern jointly owned by Mr. Manishkumar Savjibhai Patel and Mr. Nileshkumar Mohanbhai Patel.  The two Patels are Indian and belong to the same family.

 

The subject, established in 1997, is one of the prestigious establishments for polished diamonds in Hong Kong.  The supply comes from its India factory directly in order to provide stable and reliable sources to support the jewellery production.  According to the subject, wide range of products are well finished with high quality tapers, baguettes, princess and other fancy shapes by skilful craftsmen in the Greater China region.

 

The subject’s in-house design team creates over a thousand designs.  The products include rings, earrings, pendants, bracelets and necklaces which are set in 18K gold and platinum with diamonds and gemstones.  The subject also produces ODM products according to the requirements of its customers.

 

The followings are the main products of the subject:-

 

Diamond Jewellery

 

·         White Diamond Jewellery (such as diamond ring, microset diamond ring)

·         Colour Diamond Jewellery (such as Bi-colour diamond ring)

 

Gem Set Jewellery

 

Emerald Jewellery

Ruby Jewellery

Sapphire Jewellery

 

Gold Jewellery

 

18K Gold Jewellery (such as 18K white gold Onyx pendant)

 

Platinum Jewellery

 

Pt 900 Platinum Jewellery

 

The subject has actively participated in major international jewellery shows to explore the venturing market worldwide.  For instance, the subject has taken part in the following fairs and shows:-

 

The United States

 

JCK Las Vegas Show

 

Italy

 

Vicenzaoro First

Vicenzaoro Charm

Vicenzaoro Choice

 


Turkey

 

Istanbul Jewelry Show I

Istanbul Jewelry Show II

 

Hong Kong

 

HK Int’l Jewellery Show

HK Jewellery & Gem Fair

HK International Jewelry Manufacturers’ Show

 

Thailand

 

Bangkok Gems & Jewelry Fair

 

 

Middle East

 

Mid-East Watch & Jewellery, Sharjah, UAE

Jewellery Arabia, Bahrain

Dubai Int’l Jewellery Week, UAE

 

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 subject’s main markets are Belgium, other European countries, the Middle East, the United States, and other Asian countries.  Annual sales turnover of the subject ranges from HK$100 to 120 million.  Business is rather profitable and active.

 

Besides operating the subject, Manishkumar Savjibhai Patel is also operating a sole proprietorship S. Goldi which is also a diamond trader.  Located at the same building, S. Goldi has got an affiliated company S. Goldi (Asia) Ltd. [S. Goldi] which is a Hong Kong-registered firm located at its operating address.  S. Goldi has had affiliated companies in Belgium, the United States, India, China and Israel.

 

S. Goldi (Asia) Ltd., the Asia marketing affiliate of India-based Shree Ramkrishna Export, was set up in 2004 and is directed by Mr. Mansukh Budheliya Patel.  This firm possesses an efficient and knowledgeable sales team and this marketing affiliate deals effectively in the sales of diamonds ranging mainly from 0.01 to 3.00 carats.  These diamonds are available in qualities from IF to I3 and colours from D to all colours.  All the products include certified as well as non-certified stones i.e. GIA dossier and GIA certified stones up to 3.00 carats.  Venturing into the upper segment of the market in South East Asia, S.Goldi (Asia) Ltd. provides reliable services to wholesalers, jewellery manufacturers, jewellery retailers and the end consumers.

 

The history of the subject in Hong Kong is over sixteen 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.

-            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.

-            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.

-            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.

-            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.

-            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.59.65

UK Pound

1

Rs.99.21

Euro

1

Rs.82.39

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

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%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.