|
Report Date : |
18.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
TARA (HONG KONG) LTD. |
|
|
|
|
Registered Office : |
Room 504, 5/F., Block B, Hunghom Commercial Centre, 39 Ma Tau Wai
Road, Hunghom, Kowloon, Hong Kong |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
10.11.2006 |
|
|
|
|
Com. Reg. No.: |
37364017 |
|
|
|
|
Legal Form : |
Private Limited Company. |
|
|
|
|
Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds
and jewellery products, emerald, precious stones. |
|
|
|
|
No. of Employees |
10 |
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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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 has no tariffs on imported goods, and it levies
excise duties on only four commodities, whether imported or produced locally:
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, its continued
reliance on foreign trade and investment leaves it vulnerable to renewed global
financial market volatility or a slowdown in the global economy. 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 12% of total system
deposits in Hong Kong by the end of 2013. 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 total trade 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. Credit expansion and tight housing supply conditions have
caused Hong Kong property prices to rise rapidly; consumer prices increased by
more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer
Economic Partnership Agreement, adopted in 2003 to forge closer ties between
Hong Kong and the mainland. The new measures, effective from January 2014,
cover services and trade facilitation, and will improve access to the
mainland's service sector for Hong Kong-based companies
|
Source
: CIA |
TARA
(HONG KONG) LTD.
ADDRESS:
Room 504, 5/F.,
Block B, Hunghom Commercial Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon, Hong
Kong.
(Formerly located at:
Room 1002, 10/F.,
Block A,
Hunghom Commercial
Centre,
39 Ma Tau Wai
Road, Hunghom,
Kowloon, Hong
Kong.)
PHONE: 852-3543 0242, 2334 7163,
2314 7115, 2314 7616
FAX: 852-8343 8539
E-MAIL: wendy.yau@tarahk.com
MANAGEMENT:
Managing
Director: Mr. Rajeev Vasant Sheth
Incorporated on: 10th November, 2006.
Organization: Private Limited Company.
Capital: Nominal: HK$6,555,900.00
Issued: HK$6,555,900.00
Business Category: Diamond Trader.
Annual Turnover: US$77,345,326 (Year ended 31-03-2013)
Employees: 10.
Main Dealing Banker: Bank of India, Hong Kong Branch.
Banking Relation: Satisfactory.
TARA
(HONG KONG) LTD.
ADDRESS:
Registered
Head Office:-
Room 504, 5/F.,
Block B, Hunghom Commercial Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon, Hong
Kong.
China
Subsidiary:-
Tara China Jewelry
Ltd., China.
Holding
Company:-
Tara Jewels Ltd.,
India.
Associated
Companies:-
Divya Jewels International Pvt. Ltd., India.
Divya Real Estate Pvt. Ltd., India.
Fabrikant Tara International LLC, US.
Tara China Jewelry Ltd., China.
Tara Duniya Corporation, British Virgin Islands.
Tara Jewels Holdings Inc., US.
Tara Jewels Honduras Sociedad de Responsabilidad Ltd., Honduras.
37364017
1086640
Managing
Director: Mr. Rajeev Vasant Sheth
Contact
Person: Ms. Wendy Yau
Purchasing
Manager: Ms. Fong Shu Heung, Susan
Nominal Share
Capital: HK$6,555,900.00 (Divided into 655,590 shares of HK$10.00 each)
Issued Share
Capital: HK$6,555,900.00
(As
per registry dated 10-11-2013)
|
Name |
|
No.
of shares |
|
Tara Jewels Ltd. Plot No. 122, 15 Road Near IDBI Bank, M.I.D.C Andheri (East), Mumbai
400 093, India. |
|
655,590 ====== |
(As
per registry dated 10-11-2013)
|
Name (Nationality) |
Address |
|
Rajeev Vasant
SHETH |
Plot No. 29 & 30 (P) Sub Plot A, Seepz
Sez, Andheri (E), Mumbai 400096, India. |
(As
per registry dated 10-11-2013)
|
Name |
Address |
Co.
No. |
|
Skywise
Ltd. |
3/F., Chinese Club Building, 21-22 Connaught Road Central, Hong Kong. |
0860425 |
The
subject was incorporated on 10th November, 2006 as a private limited liability
company under the Hong Kong Companies Ordinance.
Originally
the subject was registered under the name of Best Profit Management Ltd., name
changed to the present style on 28th November, 2006.
Formerly
the subject was located at Room 1002, 10/F., Block A, Hunghom Commercial
Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong. moved the present
address in July, 2013.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds and jewellery products, emerald, precious stones.
Employees: 10.
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan, Southeast Asia, Europe, Middle East, etc.
Annual Turnover: US$77,345,326 (Year ended 31-03-2013)
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$6,555,900.00 (Divided into 655,590 shares of HK$10.00 each)
Issued Share Capital: HK$6,555,900.00
Total Assets: US$12,605,095 (Year ended 31-03-2013)
Total Liabilities: US$12,605,095 (Year ended 31-03-2013)
Mortgage or Charge: (See attachment)
Profit or Loss: Making a small profit every year.
Profit Before Tax: US$1,011,931 (Year ended 31-03-2013)
Profit After Tax: US$791,431 (Year ended 31-03-2013)
Condition: Keeping in an active manner.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Bankers:-
Bank of India, Hong Kong Branch.
Punjab National Bank (International) Ltd., England.
Standing: Very Good.
Tara
(Hong Kong) Ltd. formally was jointly owned by Tara Duniya Corporation which
was a BVI-registered firm, holding 85% interests; and Mr. Yiu Yam Sin,
holding 15%. Yiu is a Hong Kong
merchant. Now, the subject has increased
its ordinary shares to 655,590 which are wholly-owned by Tara Jewels Ltd. [Tara
Jewels] which is an India-based firm.
Tara Jewels has been a listed firm in India since late 2012.
The
only director of the subject Rajeev Vasant Sheth is an Indian. Sheth is an India passport holder and does
not have the right to reside in Hong Kong permanently.
The
subject is a diamond trader. It has had
offices in China, the United States, India and Europe. Its China office is also a factory which is
in Panyu, Guangzhou City, Guangdong Province, China known as Tara China Jewelry
Ltd.
The
subject is trading in loose diamonds. It
also trades in the following commodities:-
Jewellery
— Diamond
Jewellery
— Gemset
Jewellery
— Pearl
Jewellery
— Semi-Precious Stone
Rough
diamonds are chiefly imported from India.
After processing in Hong Kong or China, finished products are
exported to Japan, Taiwan, other Asian countries, Europe and the United
States. Business has been improving.
Most
of the time, Sheth is in Mumbai, India administering the subject’s India
office.
Tara
Jewels has grown substantially since it first entered the jewellery
manufacturing business over 10 years ago.
Today, its business interests span across the globe as it continues to
make its presence felt in the retail jewellery segment.
Tara
Jewels has four manufacturing facilities, one of which is in China. It has over 84,584 sq.ft. of manufacturing
space and employ 1,738 staff across four continents. It had an aggregate production of 10,616.40
kgs in Fiscal 2012. This made Tara
Jewels one of the largest studded jewellery exporter from India since
2006. It has also received “Certificate
of Excellence” for the print campaign of the year at The 8th Retail Jeweller
India Awards 2012.
Tara
Jewels’ growth and continuing market dominance can be attributed to its hall of
designs with over 48,273 designs that caters to a diverse audience across five
continents and over 20 countries. Its
products range includes fashion, bridal and handmade bespoke jewellery with
unit price ranging from USD18 to USD10,000.
Today,
Tara Jewels plays a significant role in jewellery exports from India to global
markets and caters to retailers across the United States, the United Kingdom,
Europe (12 countries including Austria, Germany and Switzerland), Australia,
China, South Africa, the Unite Arab Emirates and Canada. It supplies to jewellery retailers in these
markets and reach its consumers through national chains, television and
Internet, departmental stores, hypermarkets and small chain jewelers.
Tara
Jewels is now looking at direct distribution in the growing economies such as
India and China.
Besides
jewellery exporting, Tara Jewels is also engaged in jewellery and gold
retailing. In FY 2013, it had 37
retailing shops in India and will be increased to 50 in FY 2014.
For
the year ended 31st March, 2013, the turnover of Tara Jewels amounted to Rs.
13,990.9 million, grew by 22.5% as compared with Rs. 11,422.9 million in FY
2012; profit after tax was Rs. 538.9 million, grew by 30.2% as compared with
Rs. 414.0 million in FY 2012.
For
the year ended 31st March, 2013, the turnover of the subject amounted to
US$77.3 million, while profit after taxation was US$0.8 million.
The
subject’s business in Hong Kong is chiefly handled by Ms. Wendy Yau who is a
Hongkongnese. Ms. Susan Fong, also a
Hongkongnese, is the subject’s Purchasing Manager.
The
history of the subject in Hong Kong is over seven years.
On
the whole, consider the subject good for normal business engagements.
|
Date |
Particulars |
Amount |
|
11-03-2011 |
Instrument: Letter
of Set-Off & Appropriation Property: Deal No. Date Amount Due
Date 169291 16-03-2011 US$600,000.00 16-03-2012 Mortgagee: Bank
of India, Hong Kong Branch. |
Advances & other banking facilities Granted to the company from
time to time |
|
10-12-2012 |
Instrument: General
Letter of Hypothecation Property: All bills of exchange and invoices or
other documents representing or relating to goods & all goods thereby
represented or to which the documents relate shall be hypothecated to the
Bank by way of first charge as a continuing security for all sums in which
the company may from time to time be actually or contingently indebted or
liable to the Bank on any account A) To meet on demand all bills negotiated or
endorsed by the Bank for the undersigned which may be dishonoured on
presentation for acceptance or which may not be paid at the due date thereof
according to the original tenor thereof and a bill shall be deemed not to
have been paid if, at that date, funds have not been placed at your free
disposal for the whole sum due B) To reimburse the Bank for all advances made
against documents of title which may not have duly taken up on presentation C) To
meet re-exchange expenses and interest Mortgagee: Bank
of India, Hong Kong Branch. |
Advances & other banking facilities Granted to the company from
time to time |
|
22-08-2013 |
Instrument: Deed
of Debenture Property: Charges by way of floating charge all its
assets, goodwill, property, undertaking, rights and revenues whatsoever and
wheresoever both present & future including its uncalled capital Mortgagee: Punjab
National Bank (International) Ltd., |
The facility on 10th May, 2013 whereas the Mortgagee as Debenture
Holder grant to the Company as borrower an over drafr facilities to
US$5,500.00 |
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.60.38 |
|
|
1 |
Rs.101.63 |
|
Euro |
1 |
Rs.83.57 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
PDT |
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.