|
Report Date : |
25.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
ROYAL ENTERPRISES |
|
|
|
|
Registered Office : |
Room 701-702, 7/F., Yip Fung Building, 2-18 D’Aguilar Street, Central |
|
|
|
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Country : |
Hong Kong |
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|
|
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Date of Incorporation : |
01.04.1978 |
|
|
|
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Com. Reg. No.: |
05566326-000-04 |
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|
|
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Legal Form : |
Partnership |
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|
|
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Line of Business : |
Importer and Exporter of All kinds of diamonds and jewellery products,
emerald, precious stones |
|
|
|
|
No. of Employees : |
8. |
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 |
ROYAL ENTERPRISES
Room 701-702, 7/F., Yip Fung Building, 2-18 D’Aguilar Street, Central,
Hong Kong.
PHONE: 852-2521 2443, 2521
2444, 2813 9389
FAX: 852-2845 2706, 2523 2097
E-MAIL: sarhkg@netvigator.com
info@sadhwani.com.hk
Manager: Mr. Mohan Tikamdas Sadhwani
Establishment: 1st
April, 1978.
Organization: Partnership.
Capital:
Not
disclosed.
Business Category: Diamond and Jewellery Trader.
Annual Turnover: HK$40~45
million.
Employees:
8.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
ROYAL ENTERPRISES
Head Office:-
Room 701-702, 7/F., Yip Fung Building, 2-18 D’Aguilar Street, Central,
Hong Kong.
05566326-000-04
Manager: Mr. Mohan Tikamdas
Sadhwani
Name: Mohan Tikamdas SADHWANI
Residential Address: Flat 12E,
Scenic Villa, 10 Scenic Villa Drive, Victoria Road, Hong Kong.
Name: Rajesh Mohandas SADHWANI
Residential Address: Flat 14N,
Scenic Villa, 28 Scenic Villa Drive, Victoria Road, Hong Kong.
Name: Navin Mohandas SADHWANI
Residential Address: Flat A,
36/F., Tower 7, Residence Bel-Air, Phase 2, Cyberport, Hong Kong.
The subject was established on 1st April, 1978 as a sole proprietorship
concern owned by Kamla Gobind Harilela under the Hong Kong Business
Registration Regulations.
The following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Kamla Gobind Harilela |
01-04-1978 |
15-10-1993 |
|
Thawerdas Tikamdas Sadhwani |
22-12-1978 |
06-03-2006 |
|
Mohan Tikamdas Sadhwani |
15-10-1982 |
- |
|
Rajesh Mohandas Sadhwani |
15-10-1987 |
- |
|
Gulab Dayaram Sadhwani |
01-12-1988 |
27-01-1995 |
|
Sunil Sadhwani |
15-10-1993 |
15-03-1994 |
|
Prakash Suresh Sadhwani |
27-01-1995 |
06-03-2006 |
|
Navin Mohandas Sadhwani |
03-09-2007 |
- |
Originally the subject was registered under the name of Indo Gem
Distributors, name changed to the present style on 14th April 1981.
Initially the subject was located at 1/F., Kowloon Centre, 29-43 Ashley
Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat E, 12/F., Ho Lee
Commercial Building, 38-44 D’Aguilar Street, Central, Hong Kong in November
1979; and further to the present address in July 2002.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer
and Exporter.
Lines: All
kinds of diamonds and jewellery products, emerald, precious stones.
Employees: 8.
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan,
Middle East, North America, etc.
Annual Turnover: HK$40~45 million.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
Capital: Not
disclosed.
Profit & Loss: Business is profitable.
Condition:
Keeping in a
normal manner.
Facilities:
Making active
use of general banking facilities.
Payment:
Met trade
commitments on time.
Commercial Morality: Satisfactory.
Banker:
The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
Royal Enterprises is a partnership owned by the Sadhwani family. The Sadhwanis are Indian.
The subject was firstly founded by Kamla Gobind Harilela who retired on
15th October, 1993. Since then, the
subject has been taken over by the Sadhwani family. Now, the subject is jointly owned by Mohan
Tikamdas Sadhwani, Rajesh Mohandas Sadhwani and Navin Mohandas Sadhwani. The three Sadhwanis have been in Hong Kong
for a very long time. They are Hong Kong
ID Card holders and have got the right to reside in Hong Kong permanently.
Business commenced in April 1978, the subject is a diamond and jewellery
product trader. It is trading in diamond
and diamond jewellery.
Diamonds are imported from India, Belgium, Israel and the other European
countries. However, India is its main
supplying country.
Finished products and polished diamonds are exported or re-exported to
Japan, India, the Middle East and North America. Overall business is satisfactory as regular
clients have been maintained. It also
has got regular suppliers in India and Europe.
The annual sales turnover of the subject ranges from HK$40 to 45
million. Making a small profit every
year.
In order to penetrate the international market further, the subject has
taken part in fairs and exhibitions held in Hong Kong.
As the history of the subject is over thirty-five years in
Hong Kong, 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.60.70 |
|
|
1 |
Rs.100.11 |
|
Euro |
1 |
Rs.83.81 |
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.