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Report Date : |
16.01.2014 |
IDENTIFICATION DETAILS
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Name : |
WALASONS LTD. |
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Registered Office : |
Room 806, 8/F., Hart Avenue Plaza, 5-9 Hart Avenue,
Tsimshatsui, Kowloon, |
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Country : |
Hong Kong |
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Date of Incorporation : |
02.04.2007 |
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Com. Reg. No.: |
38240773 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Exporter of all kinds of diamonds |
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No. of Employees : |
04 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
Hong Kong |
A2 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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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 |
WALASONS LTD.
ADDRESS: Room 806, 8/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2311 5052, 2311 5054
FAX: 852-2311 5053
E-MAIL: info@walasons.com
walasons@yahoo.com
Managing Director: Mr. Pareshkumar Mansukhbhai Katrodia
Establishment: 2nd April, 2007.
Incorporated on: 1st August, 2007.
Organization: Private Limited Company.
Capital: Nominal:HK$500,000.00
Issued: HK$500,000.00
Business Category: Diamond Trader.
Group Annual Turnover: HK$190~200 million.
Employees: 4.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 806, 8/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
Affiliated/Associated
Companies:-
Manee Diam Co. Ltd.
322/54 Surawongwattanakarn, 22/F., Suite-B, Surawongse Road, Sipraya, Bangrak, Bangkok 10500, Thailand.
[Tel: 66 2631 8990 (4 lines),
Fax: 66 2631 8996
E-mail: maneediam@yahoo.com]
Nancy Diam, Hong Kong.
Zaver Diam Co. Ltd., Thailand.
38240773
1154678
Managing Director: Mr. Pareshkumar Mansukhbhai Katrodia
Sales Manager: Ms. Sonja Chan
Nominal Share Capital: HK$500,000.00 (Divided into 500,000 shares of HK$1.00 each)
Issued Share Capital: HK$500,000.00
SHAREHOLDER: (As per registry dated 01-08-2013)
|
Name |
|
No. of shares |
|
Pareshkumar Manuskhbhai KATRODIA |
|
500,000 ====== |
DIRECTOR: (As per registry dated 01-08-2013)
|
Name (Nationality) |
Address |
|
Pareshkumar Mansukhbhai KATRODIA |
Flat C, 26/F., Tower 4, The Greenwood of Laguna Verde Phase 1, 8 Laguna Verde Avenue, Hunghum, Kowloon, Hong Kong. |
SECRETARY: (As per registry dated 01-08-2013)
|
Name |
Address |
Co. No. |
|
Lodestar Secretaries Ltd. |
13/F., Wah Kit Commercial Centre, 302 Des Voeux Road Central, Hong Kong. |
0113023 |
The subject was incorporated on 1st August, 2007 as a private limited liability company under the Hong Kong Companies Ordinance. It took over the business of Walasons which was a sole proprietorship concern established on 2nd April, 2007 and owned by Mr. Pareshkumar Mansukhbhai Katrodia under the Hong Kong Business Registration Number 37780910.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer and Exporter.
Lines: All kinds of diamonds.
Brand Name: Techno Star, Swastik.
Employees: 4.
Commodities Imported: Thailand, India, Europe, etc.
Markets: Hong Kong, other Asian countries, Europe, North America, etc.
Group Annual Turnover: HK$190~200 million.
Terms/Sales: As per contracted.
Terms/Buying: Various terms.
The Hong Kong General
Chamber of Commerce, Hong Kong.
[Membership No. HKW0471]
Nominal Share Capital: HK$500,000.00 (Divided into 500,000 shares of HK$1.00 each)
Issued Share Capital: HK$500,000.00
Increase of Nominal Capital:-
|
From |
HK$10,000.00 |
to |
HK$500,000.00 |
on |
14-12-2009 |
Alternation of Issued Capital:-
|
Initially |
paid up |
HK$ 300.00 |
|
14-12-2009 |
paid up |
HK$499,700.00 |
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|
|
––––––––––––––– |
|
Total: |
paid up |
HK$500,000.00 ============= |
Profit & Loss: Making a small profit every year.
Condition: Keeping in an active condition.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
Having issued 300 ordinary shares of HK$1.00 each at the very beginning, Walasons Ltd. was equally owned by the members of the Italia or Italiya family, namely, Mr. Prakash Shambhubhai Italia, Mr. Nilesh Sambhubhai Italiya and Sharda Nilesh Italiya.
Now, the subject’s issued ordinary shares have been increased to 500,000 which all have been transferred to Mr. Pareshkumar Mansukhbhai Katrodia who is also an Indian. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently. He is also the only director of the subject.
There was a sole proprietorship known as Walasons which was established on 2nd April, 2007 under the Hong Kong Business Registration Number 37780910 located at the subject’s address. Owned and set up by Mr. Pareshkumar Mansukhbhai Katrodia, Walasons has ceased business formally since 30th December, 2007. Now, Katrodia is holding 100% of the subject’s stake.
The subject is a leading provider of polished diamonds and loose diamonds for use in pendants, bracelets, earrings and brooches. Bearing the brand name of Techno Star, products have been exported to Czech which has got many retailers. Another brand name of the subject is Swastik.
Besides loose diamonds, the subject also trades in fine jewellery, white diamond, ladies’ stone jewellery set, GIA small loose diamond, and luxury watches.
The subject is an affiliate of Manee Diam Co. Ltd. [Manee Diam] which is headquartered in Bangkok, Thailand.
Now, the global sales turnover of Manee Diam ranges from US$28 to 32 million. Business is active. Manee Diam is a leading provider of white colour natural polished diamond.
Manee Diam has had an associated company in Hong Kong known as Nancy Diam which is a Hong Kong-registered company. Nancy Diam is located at the same building as the subject.
The subject also has got an associated company bearing the same name in India [India Walasons]. India Walasons has been a diamond manufacturing, exporting and importing company since 1972.
The subject has been a Diamond Manufacturing, Export & Import Company since its establishment. It has had diamond manufacturing & trading centres in Surat and Mumbai in India. It has a diamond manufacturing unit in Surat of India, a jewellery manufacturing unit in China.
Being a major player on the international diamond stage, India Walasons has got a manufacturing unit in Surat, India, and is providing customers with quality diamonds utilizing the state of the art equipment.
India Walasons serve the customers across the Asia (including strong bases in Thailand, Hong Kong, China, Vietnam ), the Middle East, Europe and the United States.
The subject’s main markets are the following countries and regions: Thailand, Hong Kong, China, Vietnam, the Philippines, Malaysia, Singapore, India, the United States, Russia, Turkey, etc.
The Sales Manager Ms. Sonja Chan is an employee of the subject. She is a Hongkongnese.
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 Diamond, Gem & Pearl Show 2014” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 3rd to 7th March, 2014. Its booth No. is AWE 2-S18.
The annual sales turnover of the Group ranges from HK$190 to 200 million. Overall business is good. History in Hong Kong is over six years.
On the whole, in view of the background of the subject, consider it good for normal business engagements.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.59 |
|
|
1 |
Rs.101.09 |
|
Euro |
1 |
Rs.83.99 |
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.