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Report Date : |
02.05.2014 |
IDENTIFICATION DETAILS
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Name : |
PRECIOUS
DIAM |
|
|
|
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Registered Office : |
Room 346, 3/F., Conic Investment Building, 13 Hok Yuen Street,
Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
16.03.2011 |
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Com. Reg. No.: |
53846471-000-03 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Trader of all kinds of diamonds and gemstones. |
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No. of Employees : |
02 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small company |
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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 |
|
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 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 |
PRECIOUS
DIAM
ADDRESS:
c/o Star Bright
Gems HK
Room 346, 3/F., Conic
Investment Building, 13 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2142 8555
Manager: Mr. Satish Punabhai Chandpara
Establishment: 16th March, 2011.
Organization: Sole Proprietorship.
Capital: Not Disclosed.
Business Category: Diamond & Gemstone Trader.
Employees: 2. (Including associates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
PRECIOUS DIAM
Registered Office:-
c/o Star Bright
Gems HK
Room 346, 3/F.,
Conic Investment Building, 13 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
Associated/Affiliated
Companies: (Same address)
E P Impex (HK)
Ltd., Hong Kong.
Star Bright Gems
HK Ltd., Hong Kong.
53846471-000-03
Manager: Mr. Satish Punabhai Chandpara
Name: Mr. Satish Punabhai CHANDPARA
Residential
Address:
A/601, Vastu Riddhi
Shree Vastv Enclave, Rajmata, Jijabai Road, Pump House, Andheri (E), Mumbai 93,
India.
The
subject was established on 16th March, 2011 as a sole proprietorship concern
owned by Mr. Satish Punabhai Chandpara under the Hong Kong Business Registration
Regulations.
Formerly
the subject was located at Room A, 1/F., 60 Ma Tau Wai Road, Hunghom, Kowloon,
Hong Kong, moved to the present address in March 2013.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Diamond & Gemstone Trader.
Lines: All kinds of diamonds and gemstones.
Employees: 2. (Including associates)
Commodities Imported: India, other Asian countries, Europe, etc.
Markets: Hong Kong, China, other Asian countries, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Capital: Not disclosed.
Profit or Loss: Kept a balance account in 2012.
Condition: Business is under development.
Facilities: Making fairly active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Precious
Diam is a sole proprietorship set up and owned by Mr. Satish Punabhai Chandpara
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 manager of the subject.
The
subject is a gemstone and diamond trader.
It is trading in the following commodities: single-cut diamond, fullcut
loose diamond, carat size diamonds, blue sapphire, aquamarine, pink amethyst,
rubylite, green amethyst, blue topaz, lemon topaz, citrine, smokey topaz,
kunzite, peridot, morganite, pink tourmalines, amethyst, pink topaz, garnet,
rose quartz, etc.
It
is specialized in the following products:-
Aquamerine,
Beryl, Citrine, Emerald, Tourmaline, etc.
Most
of the commodities are imported from India, other Asian countries and Europe. Prime markets are Hong Kong, China, India and
the other Asian countries.
The
subject is owned by the Chandpara family who has had a number of diamond
suppliers in Mumbai, India.
Besides
the subject, there are two more firms located at the same address:-
·
E P Impex (HK) Ltd., Hong Kong;
·
Star Bright Gems HK Ltd. [Star Bright], Hong Kong.
These
two firms are also diamond traders. Star
Bright is jointly owned by Punabhai Vallabhbhai Chandpara, holding 60%
interests; and Manish Punabhai Chandpara, holding 40%. All the Chandparas belong to the same
family. E P Impex (HK) is owned by
another Indian.
The
history of the subject in Hong Kong is just two years and eight months. Business keeps on improving.
On
the whole, since the history of the subject is short, consider it good for
normal business engagements on L/C basis for the time being.
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.
-
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.60.34 |
|
|
1 |
Rs.101.45 |
|
Euro |
1 |
Rs.83.31 |
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.