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Report Date : |
16.06.2014 |
IDENTIFICATION DETAILS
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Name : |
VIVA INT’L CO. (HK) LTD. |
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Registered Office : |
Unit 206, 2/F., Fu Hang Industrial Building, 1 Hok Yuen
Street East, Hunghom, Kowloon, |
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Country : |
Hong Kong |
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Date of Incorporation : |
27.04.2007 |
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Com. Reg. No.: |
37931622 |
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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. |
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No. of Employees |
02 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
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
|
Source
: CIA |
VIVA INT’L
CO. (HK) LTD.
ADDRESS: Unit 206, 2/F., Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2954 4999, 6501 6837
FAX: 852-2301 4998, 2954 4996
E-MAIL: vivaintco@gmail.com
Managing Director: Mr. Nikhil Lalit Sheth
Incorporated on: 27th April, 2007.
Organization: Private Limited Company.
Capital: Nominal:HK$1,000,000.00
Issued: HK$1,000,000.00
Business Category: Diamond Trader.
Employee: 2.
Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Unit 206, 2/F., Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
Affiliated Companies:-
Dia Creations, Hong Kong. (Same address)
Hans Impex, Hong Kong. (Same address)
L D Sheth (HUF), India.
Likin Gems Pvt. Ltd., India.
Nihkil Corporation, India.
Sia Impex, Hong Kong. (Same address)
37931622
1127773
Managing Director: Mr. Nikhil Lalit Sheth
Contact Person: Mr. Shah Snehal V.
Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
SHAREHOLDER: (As per registry dated 27-04-2014)
|
Name |
|
No. of shares |
|
Nikhil Lalit SHETH |
|
1,000,000 ======= |
DIRECTORS: (As per registry dated 27-04-2014)
|
Name (Nationality) |
Address |
|
Nikhil Lalit SHETH |
Unit 206, 2/F., Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong. |
|
Anishi Nikhil SHETH |
Unit 206, 2/F., Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong. |
SECRETARY: (As per registry dated 27-04-2014)
|
Name |
Address |
|
Anishi Nikhil SHETH |
Unit 206, 2/F., Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong. |
The subject was incorporated on 27th April, 2007 as a private limited liability company under the Hong Kong Companies Ordinance.
Initially the subject was located at Flat B, 13/F., Wah Fung Building, 17‑23 Minden Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to Flat K, 5/F., Tower 2, Harbour Place, 8 Oi King Street, Hunghom, Kowloon, Hong Kong in early 2008; and further moved to Unit 2F03, 2/F., Phase 2, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong in November 2009 and further to the present address in 2013.
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.
Employee: 2.
Commodities Imported: India, Belgium, Israel, etc.
Markets: Southeast Asia, North America, Europe, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
Increase of Nominal Capital:-
|
From |
HK$500,000.00 |
to |
HK$1,000,000.00 |
on |
04-02-2008 |
Alternation of Issued Capital:-
|
27-04-2007 |
paid up |
HK$ 500,000.00 |
|
04-02-2008 |
paid up |
HK$ 500,000.00 |
|
|
|
––––––––––––––– |
|
Total: |
paid up |
HK$1,000,000.00 ============= |
Mortgage or Charge: (See attachment)
Profit & Loss: Made small profits in past four years.
Condition: Business is normal.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: Hang Seng Bank Ltd., Hong Kong.
Standing: Normal.
Having issued 1 million ordinary shares of HK$1.00 each, Viva Int’l Co. (HK) Ltd. is wholly-owned by Mr. Nikhil Lalit Sheth who is an Indian. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently. He is also managing director of the subject.
The subject has moved to the present new address in recent years.
Long time ago, the subject’s operating office was in the residence of Mr. Nikhil Lalit Sheth.
The other director of the subject Mr. Anishi Nikhil Sheth is also a Hong Kong ID holder.
The subject is a diamond importer, exporter and wholesaler. It is trading in loose diamonds, jewellery, etc. Commodities are imported from India, Belgium and other European countries, etc. Products and polished diamonds are marketed in Hong Kong, exported or re-exported to Japan, the other Asian countries, North America, Europe, etc.
Currently, it has had two affiliated companies in India, namely, Likin Gems Pvt. Ltd. [Likin Gems] and L D Sheth (HUF).
Likin Gems was established in the year 1958 under the leadership of Mr. Lalit Sheth and the guardianship of his father Mr. D. K. Sheth who was a well renowned character in the diamond business. Now, Likin Gems is run by Mr. Nikhil Sheth.
Mr. D. K. Sheth, father of Mr. Lalit Sheth successfully managed the family business of gems, diamonds and jewellery with their manufacturing units in Palanpur, Surat, Ahmedabad and Gujarat District much before the family decided to diversify and also venture into the business of trading in diamonds under the name of Likin Gems founded by Mr. Lalit Sheth.
Likin Gems is a member of the Gem and Jewellery Export Promotion Council which is a well renowned body for the exports of cut and polished diamonds from India specially promoted by the Government of India and approved by the Reserve Bank of India as well.
The subject made small profits in past years. History in Hong Kong is over seven years.
The subject is fully supported by Likin Gems.
The subject owns premises in Hong Kong.
On the whole, consider it good for normal business engagements.
Property information of the company:-
Property Location: Flat K on 5/F. of Tower 2, Harbour Place, 8 Oi King Street, Kowloon, Hong Kong.
Owner: Viva Int’l Co. (HK) Ltd.
Date of Purchase: 21-05-2008
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
07-07-2008 |
- |
Hang Seng Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
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11-09-2008 |
- |
Hang Seng Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
|
Date |
Particulars |
Amount |
|
07-07-2008 |
Instrument: Equitable Mortgage Property: 900/2,559,966th parts or shares of and in Kowloon Inland Lot No. 11076 (Flat K on 5/F. of Tower 2 of Harbour Place, 8 Oi King Street, Kowloon, Hong Kong as comprised in an Agreement for Sale and Purchase 21-05-2008) Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
To secure all moneys in respect of general banking facilities |
|
11-09-2008 |
Instrument: Mortgage Property: 900/2,559,966th parts or shares of and in Kowloon Inland Lot No. 11076 (Flat K on 5/F. of Tower 2 of Harbour Place, 8 Oi King Street, Kowloon, Hong Kong.) Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
To secure all moneys in respect of general banking facilities |
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.
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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.
-
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.59.48 |
|
|
1 |
Rs.100.93 |
|
Euro |
1 |
Rs.80.71 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.