MIRA INFORM REPORT

 

 

Report Date :

19.12.2014

 

IDENTIFICATION DETAILS

 

Name :

EXCELLA  INTERNATIONAL  LTD.

 

 

Registered Office :

C/o Hong Kong Accounting and Registration Co.

Unit-E1, 3/F., Hang Fung Industrial Building, 2G Hok Yuen Street, Hung Hom, Kowloon

 

 

Country :

Hongkong

 

 

Date of Incorporation :

17.07.2012

 

 

Com. Reg. No.:

60100416

 

 

Legal Form :

Limited Company (Non-Hong Kong Company)

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of Diamonds.

 

 

No. of Employees :

2

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Status :

Moderate

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Hongkong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

HONGKONG - 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

Company Name and address

 

EXCELLA  INTERNATIONAL  LTD.

 

ADDRESS:                   C/o Hong Kong Accounting and Registration Co.

Unit-E1, 3/F., Hang Fung Industrial Building, 2G Hok Yuen Street, Hung Hom,  Kowloon, Hong Kong.

 

PHONE:                        852-3741 1966

FAX:                             852-8104 5009

 

 

MANAGEMENT

 

Managing Director:        Mr. Jigar Ashok Parmar

 

 

SUMMARY

 

Registered in Hong Kong on: 17th July, 2012.

 

Organization:                 Limited Company (Non-Hong Kong Company).

 

Capital:                         Authorised:                   US$50,000.00

                                    Issued & Paid Up:         US$10,000.00

 

Business Category:       Diamond Trader.

 

Employees:                  2.

 

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

 

Banking Relation:          Satisfactory.

 

 

ADDRESS

 

Registered Office:-

263 Main Street, Road Town, Tortola, British Virgin Islands.

 

Corresponding Address:-

c/o Hong Kong Accounting and Registration Co.

Unit-E1, 3/F., Hang Fung Industrial Building, 2G Hok Yuen Street, Hung Hom, Kowloon, Hong Kong.

 

Nominal Place of Business in Hong Kong:-

Unit 912B, 9/F., Tower A, Hunghom Commercial Centre, 37-39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong.

 

Associated Companies:-

Ideas & Designs Ltd., British Virgin Islands.

More Goal Ltd., British Virgin Islands.

 

 

BUSINESS REGISTRATION NUMBER

 

60100416

 

COMPANY FILE NUMBER

 

F0019232

 

 

MANAGEMENT

 

Managing Director:        Mr. Jigar Ashok Parmar

 

 

AUTHROIZED REPRESENTATIVE OTHER THAN NATURAL PERSON

 

Name:                           C.K. Liu & Co.

Address:                       13/F., Wah Kit Commercial Centre, 302 Des Voeux Road Central, Hong Kong.

 

 

CAPITAL

 

Authorised Capital:        US:50,000.00

 

Issued & Paid Up Capital: US$10,000.00

 

 

DIRECTOR

(As per registry dated 17-07-2014)

 

Name

(Nationality)

 

Address

Jigar Ashok PARMAR

Zaveri Baug, Narnarayan Temple, 227 Kalbadevi Road, Mumbai 400002, India.

 

 

SECRETARY

(As per registry dated 17-07-2014)

 

Name

Address

Co. No.

Lodestar Secretaries Ltd.

13/F., Wah Kit Commercial Centre, 302 Des Voeux Road Central, Hong Kong.

0113023

 

 

HISTORY

 

The subject was incorporated in the British Virgin Islands as a limited company.  It has established a principal place of business in Hong Kong and was registered on 17th July, 2012 as a Non-Hong Kong company under Part XI of the Hong Kong Companies Ordinance.

 

Formerly the subject’s registered address was located at 13/F., Wah Kit Commercial Centre, 302 Des Voeux Road Central, Hong Kong where was the operating address of an accountant firm C.K. Liu & Co., moved to Unit 912B, 9/F., Tower A, Hunghom Commercial Centre, 37-39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong with effect from 8th May, 2013.

 

According to the subject it has moved to Unit-E1, 3/F., Hang Fung Industrial Building, 2G Hok Yuen Street, Hung Hom, Kowloon, Hong Kong since June 2014.  But this relocation has not been shown in the registration documents of the subject with Companies Registry of Hong Kong.

 

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

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of diamonds

 

Employees:                  2.

 

Commodities Imported: India, etc.

 

Markets:                        Hong Kong, China, other Asian countries, etc.

 

Terms/Sales:                 CAD, or as per contracted.

 

Terms/Buying:               L/C, advanced T/T, etc.

 

 

FINANCIAL INFORMATION

 

Authorised Capital:        US$50,000.00

 

Issued & Paid Up Capital: US$10,000.00

 

Profit or Loss:               Kept a balance account in 2013.

 

Condition:                     Business is improving.

 

Facilities:                      Making fairly active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

Hang Seng Bank Ltd., Hong Kong.

DBS Bank (Hong Kong) Ltd., Hong Kong.

 

Standing:                      Small.

 

 

GENERAL

 

Excella International Ltd. is a Non-HK Company incorporated in the British Virgin Islands.  It was registered in Hong Kong in July 2012.

 

According to the subject, it has moved to ‘Unit-E1, 3/F., Hang Fung Industrial Building, 2G Hok Yuen Street, Hung Hom, Kowloon, Hong Kong’ since June 2014.  However, this is the address of a commercial service provider.  There are a number of companies in Hong Kong are using this address as its ‘operating address’.

The subject’s Authorized Representative C. K. Liu & Co. is an accountant company.  It is located at ‘13/F., Wah Kit Commercial Centre, 302 Des Voeux Road Central, Hong Kong’.  The subject’s corporate secretary is an associated company of C. K. Liu & Co. located at the same address.

 

The subject has 2 employees in Hong Kong.

 

The representative of the subject Mr. Petal who is an Indian can be reached at his Hong Kong mobile phone number 852-3741 1966.  Currently, Petal is residing in Hong Kong.

 

The subject’s actual operating address is in the Hong Kong resident of its representative.  Its phone number and fax number are 852-3741 1966 and 852-8104 5009 respectively.

 

The director of the subject Mr. Jigar Ashok Parmar is also an Indian.  He is an India passport holder and does not have the right to reside in Hong Kong permanently.  His registered address is in Mumbai, India.

 

The subject is a diamond importer, exporter and wholesaler.  It is trading in loose, polished and cut diamonds.  Most of the commodities are imported from India.  Prime markets are Hong Kong, China and the other Asian countries.  Business is improving.  Hong Kong, China and other Asian countries are its prime markets.

 

Besides operating the subject, Mr. Parmar is also operating another firm in Hong Kong known as More Goal Ltd. [More Goal] which is also a BVI-registered firm.  More Goal and the subject are engaged in the same lines of business.

 

The subject’s history in Hong Kong is just about two years and five months.

 

Since the history of the subject is short, on the whole, consider it good for business engagements on L/C basis for the time being.

 

 

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.63.32

UK Pound

1

Rs.98.68

Euro

1

Rs.78.11

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIT

 

               

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%)

 

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