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Report Date : |
29.04.2014
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IDENTIFICATION DETAILS
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Name : |
BASILICA JEWELRY LTD. |
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Registered Office : |
Room 1502, 15/F., Lee Wai Commercial Building, 1-3 Hart Avenue,
Tsimshatsui, Kowloon, |
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Country : |
Hong Kong |
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Date of Incorporation : |
19.12.2007 |
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Com. Reg. No.: |
38766068 |
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Legal Form : |
Private Limited Company |
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LINE OF BUSINESS : |
IMPORTER, EXPORTER AND WHOLESALER OF ALL KINDS DIAMONDS AND
JEWELLERY PRODUCTS |
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No. of Employees |
03 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Company |
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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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Hong Kong |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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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
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Source
: CIA |
(Formerly located at:
Room 505, 5/F., Beverley Commercial Centre, 87-105 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong)
ADDRESS: Room 1502, 15/F., Lee Wai Commercial Building, 1-3 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-3621 0275, 3621 0276, 6952 6805 (mobile)
FAX: Not available
E-MAIL: vijenjhaveri@yahoo.com
Managing Director: Mr. Vijen Girishchandra Jhaveri
Incorporated on: 19th December, 2007.
Organization: Private Limited Company.
Capital: NominalHK$3,000,000.00
Issued: HK$3,000,000.00
Business Category: Diamond Trader.
Employees: 3. (Including associates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 1502, 15/F., Lee Wai Commercial Building, 1-3 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
P.K. Impex, Hong Kong.
Pal Gems, India.
Rose Jewels Ltd., Hong Kong.
Vicenza Trading (HK) Ltd., Hong Kong. (Same address)
38766068
1196645
Managing Director: Mr. Vijen Girishchandra Jhaveri
(Mobile Phone No.: 852-6952 6805)
Nominal Share Capital: HK$3,000,000.00 (Divided into 3,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$3,000,000.00
SHAREHOLDER: (As per registry dated 19-12-2013)
|
Name |
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No. of shares |
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Vijen Girishchandra JHAVERI |
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3,000,000 ======= |
DIRECTOR: (As per registry dated 19-12-2013)
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Name (Nationality) |
Address |
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Vijen Girishchandra JHAVERI |
12/F., Hai Xin Building, 17 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong. |
SECRETARY: (As per registry dated 19-12-2013)
|
Name |
Address |
Co. No. |
|
HMGC Corporate Practice Ltd. |
Room 460B, 4/F., Mirror Tower, 61 Mody Road, Tsimshatsui East, Kowloon, Hong Kong. |
1127329 |
The subject was incorporated on 19th December, 2007 as a private limited liability company under the Hong Kong Companies Ordinance.
It was originally registered under the name of Easy Way Trading (HK) Ltd., name changed to the present style on 29th August, 2008.
Formerly the subject was located at Room 505, 5/F., Beverley Commercial Centre, 87-105 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in February 2014.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds diamonds and jewellery products.
Employees: 3. (Including associates)
Commodities Imported: India, other Asian countries, Europe, etc.
Markets: Hong Kong, India, Japan, Southeast Asia, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$3,000,000.00 (Divided into 3,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$3,000,000.00
Profit or Loss: Making a small profit in the past years.
Condition: Business is normal.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
CITIC Bank International Ltd., Hong Kong.
Standing: Small.
Formerly, having issued 1 million ordinary shares of HK$1.00 each, Basilica Jewelry Ltd. was equally owned by Mr. Vijen Girishchandra Jhaveri and Mr. Kailash Agarwal. Now, the subject has increased its ordinary shares to 3 million which is wholly-owned by Mr. Vijen Girishchandra Jhaveri. The old latter shareholder Agarwal has retired.
Jhaveri is the only director of the subject. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently. He can be reached at his Hong Kong mobile phone number 852-6952 6805.
The subject moved to the present operating in February 2014.
The subject is a diamond trader. It has got an associated company Rose Jewels Ltd. [Rose]. Rose and the subject are engaged in the same lines of business.
The subject also has got an associated company in India known as Pal Gems. It is a diamond importer, exporter and wholesaler. It is engaged in manufacturing loose diamonds like marquise, pears, tappers, buggets and rose cut diamonds. The subject imports loose, polished and cut diamonds from India. Pal Gems seems to be its main supplier. It is likely that Agarwal in India is administrating the business of Pal Gems. The subject markets its products in Hong Kong, exports to India, Japan, Southeast Asia, Europe, etc. Business has been normal. It made a small profit in the past years.
Besides Pal Gems, the subject has had another affiliate Vicenza Trading (HK) Ltd., a Hong Kong-registered company located at the same address.
The subject’s business is chiefly handled by Jhaveri himself. History is over six years and four months in Hong Kong.
The subject owns premises in Hong Kong.
On the whole, consider it good for normal business engagements in small credit amounts.
|
Date |
Particulars |
Amount |
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24-02-2012 |
Instrument: Trade Finance Security Assignment Property: (a) Assigns and agrees to assign absolutely to the Bank all the present and future rights, title, interests and benefits of the Borrower in and to the Following assets. (i) Export Credits; (ii) Export Collection Bills; (iii) Sales Contracts; (iv) Invoice Receivables; (v) Insurances; (vi) Trade Documents; and (vii) all claims, remedies and proceeds in connection with any of the foregoing; and (b) Charges and agrees to charge to the Bank by way of first fixed charge all the present and future rights, title, interests and benefits of the Borrower in and to the following assets:- (i) the Goods together with their proceeds; and (ii) the Deposit; and (c) pledges and agrees to pledge to the Bank the Pledged Goods and the Trade Documents which are now or may in the future be in the Bank’s possession. Mortgagee: CITIC Bank International Ltd., Hong Kong. |
All or any money and liabilities which shall from time to time to due, owing or incurred in whatsoever manner to the Bank by the Borrower whether actually or contingently, solely or jointly and whether as borrower or surety |
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24-02-2012 |
Instrument: Legal Charge/Mortgage Property: 1/30 part or share of and in K.I.L. 8762 R.P. & K.I.L. 9798 R.P. (12 Floor, Hai Xin Mansion, No. 15-17 Hart Avenue, Kowloon) Mortgagee: CITIC Bank International Ltd., Hong Kong. |
All moneys |
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
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.60.50 |
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|
1 |
Rs.101.69 |
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Euro |
1 |
Rs.83.62 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIS |
RATING EXPLANATIONS
|
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.