.
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Report Date : |
29.01.2014 |
IDENTIFICATION DETAILS
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Name : |
ELEMENTS LTD. |
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Registered Office : |
Flat D, 22/F., |
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Country : |
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Date of Incorporation : |
22.05.2002 |
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Com. Reg. No.: |
32668216 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter, and Wholesaler of all kinds of diamonds and jewellery
products, emerald, precious stones |
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No. of Employees : |
3 |
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) |
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Hong Kong |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source
: CIA |
ELEMENTS LTD.
ADDRESS: Flat D, 22/F., 8 Hart
Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2369 5200
FAX: 852-2369
5300, 2369 6400
Managing Director: Mr. Avinash
Pandya
Incorporated on: 22nd May, 2002.
Organization: Private Limited Company.
Capital: Nominal: HK$500,000.00
Issued: HK$300,000.00
Business Category: Importer,
Exporter, and Wholesaler.
Annual Turnover: US$7.5~8.5 million.
Employees: 3.
Main Dealing Banker: ABN AMRO
Bank N.V., Hong Kong Branch.
Banking Relation: Satisfactory
ELEMENTS LTD.
Registered Head
Office:-
Flat D, 22/F., 8 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
Holding Company:-
Blue Stone Investments S.A., Luxembourg.
Associated/Affiliated
Companies:-
Revashanker Gems Ltd., India.
Revashanker Group, India.
Shankar Jewels Ltd., India.
32668216
0798977
Vice President: Mr. Rajeev Selot
Managing Director: Mr. Avinash Pandya
Nominal Share Capital: HK$500,000.00
(Divided into 500,000 shares of HK$1.00 each)
Issued Share Capital: HK$300,000.00
(As per registry dated 22-05-2013)
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Name |
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No. of shares |
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Blue Stone Investments S.A. 9B, BD Prince Henri, L1724, Luxembourg. |
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300,000 ====== |
(As per registry dated 22-05-2013)
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Name (Nationality) |
Address |
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Avinash PANDYA |
Flat C, 30/F., Block 2, The Grand Panorama, |
(As per registry dated 22-05-2013)
|
Name |
Address |
Co. No. |
|
East (Nominees) Ltd. |
11/F., Kundamal House, 2-4 Prat Avenue, Tsimshatsui, Kowloon, Hong
Kong. |
0327797 |
The subject was incorporated on 22nd May, 2002 as a private limited liability
company under the Hong Kong Companies Ordinance.
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: 3.
Commodities Imported: India,
Belgium, other European countries
Markets: Japan,
other Asian countries, Europe
Annual Turnover: US$7.5~8.5
million.
Terms/Sales: L/C, T/T
Terms/Buying: L/C, T/T, D/P
Nominal Share Capital: HK$500,000.00
(Divided into 500,000 shares of HK$1.00 each)
Issued Share Capital: HK$300,000.00
Mortgage or Charge:-
Date of Debenture: 27-09-2005
Amount: General banking
facilities
Property: All the
Company’s undertaking and property and assets whatsoever and wheresoever both
present and future including all book and other debts revenues and claims
Mortgagee: ABN AMRO Bank
N.V., Hong Kong Branch.
Profit & Loss: Making
a small profit every year.
Condition: Keeping
in a rather active state.
Facilities: Making
active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Satisfactory.
Banker: ABN AMRO Bank N.V., Hong Kong Branch.
Standing: Normal.
Having issued 300,000 ordinary shares of HK$1.00 each, Elements Ltd. is
a wholly-owned subsidiary of Blue Stone Investments S.A. which is a
Luxembourg-based firm.
The subject is a loose diamond importer, exporter and wholesaler.
The subject is part of the Revashanker Group, which has been a leading
manufacturer and supplier of diamonds since 1935. The Group, which is headquartered in Mumbai,
India, also has representative office in New York, Antwerp and Hong Kong. The subject is the representative office of
the Group. Being a customer of Rio Tinto
diamonds, Revashanker Group usually receives direct allocation from Diavik
mines from Canada on time.
The subject is trading in white diamonds mainly below 15 pts, fine make from
VVS ideal cut to I. Raw materials are
chiefly imported from Belgium and India.
Rough diamonds are polished and cut in Hong Kong or China. Finished products are marketed in Hong Kong,
exported to Japan, South Korea, and other Asian countries.
The subject has got a main affiliated company in Mumbai, India known as
Shankar Jewels Ltd. which is also a member of the Revashanker Group.
Most of the time, Mr. Mukund Krishna Joshi, the director of the subject
who is an Indian passport holder, is in Belgium responsible for sourcing raw
materials. Mr. Rajeev Selot, also an
Indian who was the old director of the subject, is stationing in Mumbai, India
handling his business concerns in the countries.
The annual sales turnover of the subject ranges from US$7.5 to 8.5
million. Making a small profit every
year. Business keeps on improving.
The subject’s business is handled by an Indian who can be reached at his
Hong Kong mobile phone number 852-9746 7100.
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 1-A17.
Since the history of the subject in Hong Kong is over eleven years, on
the whole, 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.62.99 |
|
|
1 |
Rs.104.61 |
|
Euro |
1 |
Rs.86.17 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.