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Report Date : |
26.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
APEX DIAMONDS |
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|
|
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Registered Office : |
Room 1505, 15/F., Peninsula Square, 18 Sung On Street, Hunghom,
Kowloon |
|
|
|
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Country : |
Hong Kong |
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|
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Date of Incorporation : |
07.01.1991 |
|
|
|
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Com. Reg. No.: |
14192841-000-01 |
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|
|
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Legal Form : |
Partnership. |
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|
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LINE OF BUSINESS : |
Importer, exporter and wholesaler of all kinds of diamonds, precious
stones, jewellery, jewellery watches |
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|
|
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No. of Employees : |
06 |
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 |
APEX
DIAMONDS
ADDRESS: Room 1505, 15/F., Peninsula Square, 18
Sung On Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2314 4953, 2314 4954
FAX: 852-2314 4956
E-MAIL: apexdiam@hknet.com
Manager: Mr. Sunil Sumatilal Shah
Establishment: 7th January, 1991.
Organization: Partnership.
Capital: Not disclosed.
Business Category:
Importer, Exporter and Wholesaler.
Employees: 6.
Main Dealing
Banker: The Hongkong & Shanghai
Banking Corp. Ltd., Hong Kong.
Banking
Relation: Satisfactory.
Head
Office:-
Room 1505, 15/F.,
Peninsula Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.
Apex Diamonds
Ltd., Hong Kong. (Same address)
14192841-000-01
Manager: Mr. Sunil Sumatilal Shah
Name: Mr. Sunil Sumatilal SHAH
Residential Address:Flat
G, 2/F., Union Mansion, 33-35 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
Name: Mr. Nita Sunil SHAH
Residential
Address:7/F., Dragon House, 7A Cameron Road, Tsimshatsui, Kowloon, Hong Kong.
The
subject was established on 7th January, 1991 as a sole proprietorship concern
owned by Mr. Sunil Sumatilal Shah under the Hong Kong Business Registration
Regulations. It became a partnership on
1st April, 2004 as Mr. Nita Sunil Shah was admitted as a partner.
At
the very beginning, the subject was located at Flat G, 2/F., Union Mansion,
33-35 Chatham Road, Tsimshatsui, Kowloon, Hong Kong where is the residential
address of Mr. Sunil Sumatilal Shah, moved to 14/F., Chun Fook Mansion, 1
Hillwood Road, Tsimshatsui, Kowloon, Hong Kong in February 1995; to Room
1502, 15/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong
Kong in July 1997; to Room 1407, 14/F. of the same building in May 2005; and
further to the present address in May 2008.
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,
jewellery, jewellery watches
Employees: 6.
Commodities Imported: India, other Asian countries,
Europe, etc.
Markets: Hong Kong, US, other Asian
countries, Middle East, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
The Federation of
Hong Kong Watch Trades & Industries Ltd., Hong Kong.
The Indian Chamber
of Commerce Hong Kong, Hong Kong.
Capital: Not disclosed.
Profit or Loss:
Making a small profit every year.
Condition: Keeping
in a rather active manner.
Facilities: Making
rather active use of general banking facilities.
Payment: Met obligations as required.
Commercial
Morality: Satisfactory.
Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Good.
Apex
Diamonds is a partnership concern jointly owned by Mr. Sunil Sumatilal Shah and
Mr. Nita Sunil Shah. The two Shahs are
Indian who have been in Hong Kong for a very long time. Belonging to the same family, they are Hong
Kong ID Card holders and have got the right to reside in Hong Kong
permanently.
The
subject has had an associated company Apex Diamonds Ltd. [ADL], a Hong
Kong-registered firm, located at its operating office. ADL was incorporated on 2nd December,
2008. ADL is also owned by the Shahs and
engaged in the same lines of business as the subject.
The
subject is a diamond and jewellery product trader. Its significant products are loose diamonds,
single cut diamonds, full cut diamonds, etc. Commodities are imported from
India and the other European countries.
Products
are wholesaled in Hong Kong and exported to the United States, Central and
South America, Europe, the Middle East and other Asian countries. Business is rather active and steady.
In
recent years, the subject also has been trading in jewellery watches, ladies’
analogue watches, men’s diamond watches, men’s tourbillion watches, ladies’
chronograph watches, etc. However, the
subject is famous for its loose and single-cut diamonds.
According
to the subject, it also receives OEM orders.
The
subject is a member of The Indian Chamber of Commerce Hong Kong, and The
Federation of Hong Kong Watch Trades & Industries Ltd., Hong Kong,
respectively.
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 took part in “HKTDC Hong Kong International Jewellery Show 2013”
which had been held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong
Kong during the period of 5th to 9th March, 2013.
It
is also taking part in “Hong Kong Watch & Clock Fair 2013” which is held in
Wanchai, Hong Kong during the period of 4th to 8th September, 2013. Its booth No. is 1D-A39.
The
subject’s business is chiefly handled by the two Shahs. Overall business is satisfactory. Regular suppliers and customers have been
maintained.
Since
the history of the subject in Hong Kong is over twenty-two years and six
months, 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.
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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.
-
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.61.98 |
|
|
1 |
Rs.103.31 |
|
Euro |
1 |
Rs.85.14 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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.