MIRA INFORM REPORT

 

 

Report Date :

09.05.2014

 

IDENTIFICATION DETAILS

 

Name :

VRITI DIAM (HK) LTD.

 

 

Registered Office :

Flat B, 12/F., Granville House, 41C & 41D Granville Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

27.03.2008

 

 

Com. Reg. No.:

39087350

 

 

Legal Form :

Private Limited Liability Company

 

 

LINE OF BUSINESS :

IMPORTER AND EXPORTER OF ALL KINDS OF LOOSE DIAMONDS

 

 

No. of Employees

2

 

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 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

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  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

 

 

 


Company name and address

 

VRITI  DIAM  (HK)  LTD.

 

ADDRESS:            

Flat B, 12/F., Granville House, 41C & 41D Granville Road, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:                  852-3116 7601

 

FAX:                       852-3116 7602

 

E-MAIL:                  vriti_diam@yahoo.co.in

 

 

MANAGEMENT

 

Managing Director:  Mr. Bhavesh Narasi Patel

 

 

SUMMARY

 

Incorporated on:            27th March, 2008.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$3,000,000.00

Issued:                         HK$3,000,000.0

 

Business Category:       Loose Diamond Trader.

 

Annual Turnover:           HK$110-130 million.

 

Employees:                  2.

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:          Satisfactory.


Company name and address

 

VRITI  DIAM  (HK)  LTD.

 

ADDRESS:

 

Registered Head Office:-

Flat B, 12/F., Granville House, 41C & 41D Granville Road, Tsimshatsui, Kowloon, Hong Kong.

 

Associated Company:-

Vriti Diam

Flat A, 6/F., Hang Lung Bank Building, 46-48 Granville Road, Tsimshatsui, Kowloon, Hong Kong.

[Solely owned by Mr. Bhavesh Narasi Patel]

 

Affiliated Companies:-

Zenia

Room 404, 4/F., Block B, Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.

[Solely owned by Mr. Praful Chandra Madhubhai Patel]

Rio Star

Flat 29, 2/F., Block M, Kaiser Estate, Phase 3, 11 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.

[Solely owned by Mr. Lalit Jivraj Patel]

Sparsh Diam

Room B, 5/F., Tower 1, The Greenwood, Laguna Verde, 8 Laguna Verde Avenue, Hunghom, Kowloon, Hong Kong.

[Wholly owned by Mr. Praful Chandra Madhubhai Patel]

 

 

BUSINESS REGISTRATION NUMBER

 

39087350

 

 

COMPANY FILE NUMBER

 

1220672

 

 

MANAGEMENT

 

Managing Director:  Mr. Bhavesh Narasi Patel (Mobile: 852-6629 4412)

General Manager:  Mr. Rajesh Tokarawat

 

 

CAPITAL

 

Nominal Share Capital: HK$3,000,000.00 (Divided into 3,000,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$3,000,000.00

 

 

SHAREHOLDER  

(As per registry dated 21-01-2014)

Name

 

No. of shares

Bhavesh Narasi PATEL

 

3,000,000

=======

 

 

DIRECTORS

(As per registry dated 27-03-2013)

Name

(Nationality)

 

Address

Bhavesh Narasi PATEL

Flat A, 6/F., Hang Lung Bank Building, 46-48 Granville Road, Tsimshatsui, Kowloon, Hong Kong.

 

Maheshkumar Bhavanbhai GAJERA

5, Nandan Villa, Model Town Chs. B-11, Gulmohar Cross Road No. 7, Vile Parle West, Mumbai 400056, India.

 

 

SECRETARY

(As per registry dated 27-03-2013)

Name

Address

Bayani Divino Bautista PONCE

Flat A, 8/F., Tower 5, Caribbean Coast, 2 Kin Tung Road, Tung Chung, Lantau Island, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 27th March, 2008 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at M29, 2/F., Phase 3, Kaiser Estate, 9‑11A Hok Yuen Street, Hunghom, Kowloon, Hong Kong, moved to Room 404, 4/F., Block B, Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong in March 2009, to Flat B, 12/F., Granville House, 41C & 41D Granville Road, Tsimshatsui, Kowloon, Hong Kong in 2010, to Room 1711, 17/F., Rise Commercial Building, 5‑11 Granville Circuit, Tsimshatsui, Kowloon, Hong Kong with effect from 1st April, 2011.  It moved back to Granville House in late 2011.

The subject increased its issued share capital to HK$3 million on 20th January, 2014.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Importer and Exporter.

 

Lines:                           All kinds of loose diamonds.

 

Employees:                  2.

 

Commodities Imported: India, other Asian countries, Europe, etc.

 

Markets:                        Hong Kong, India, China, other Asian countries, etc.

 

Annual Turnover:           HK$110-130 million

 

Terms/Sales:                 COD, L/C, T/T, D/A, or 150 days, etc.

 

Terms/Buying:               L/C, T/T, or 120 to 150 days, etc.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$3,000,000.00 (Divided into 3,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$3,000,000.00

 

Increase of Nominal Capital:-

From

HK$2,900,000.00

to

HK$3,000,000.00

on

21-01-2014

 

Alternation of Issued Capital:-

Initally

paid up

HK$   100,000.00

20-01-2014

paid up

HK$2,900,000.00

 

 

–––––––––––––––

Total:

paid up

HK$3,000,000.00

=============

 

Mortgage or Charge:     (See attachment)

 

Annual Net Profit:          HK$1.0-1.5 million

 

Profit or Loss:               Making a small profit in past two years.

 

Condition:                     Business is active.

 

Facilities:                      Adequate for current running.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

Banker:                         The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:                      Good.

 

 

GENERAL

 

Having issued 3 million ordinary shares of HK$1.00 each, Vriti Diam (HK) Ltd. is wholly-owned by Mr. Bhavesh Narasi Patel [B. N. Patel] who is an Indian.  B. N. Patel resided in Mumbai, India and now he has moved to Hong Kong.  He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.  B. N. Patel can be reached at his Hong Kong mobile phone number 852-6629 4412.

The subject moved back to the former address in late 2011.  It has had an associated company Vriti Diam, a Hong Kong-registered firm located at its operating address.  Both firms are under the same management.

Currently, the subject has had two employees, namely, Mr. Mahesh Gajara and Mr. Bharat Kadakia.  Both of them are Indian.

Besides, the subject has got the following affiliated firms:-

Raha Impex H.K., Hong Kong.

Rio Star, Hong Kong.

Zenia, Hong Kong.

All these firms are controlled by the Patel family.  Zenia was established in Hong Kong on 24th September, 2004.

The subject’s director B. N. Patel is also the sole proprietor of Vriti Diam.  The subject and Vriti Diam are engaged in the same lines of business.

The subject is a loose diamond trader.  It is trading in white, LC and all size of loose diamonds form 0.01 cts to 1.00 cts.  Raw materials, polished and cut diamonds are imported from India, and other European countries, etc.  Some of the raw diamonds are polished or processed in Hong Kong.  Finished products and polished diamonds are exported to India, China, other Asian countries, etc.

In 2012, the subject’s turnover amounted to HK$110 million (2011: HK$99.8 million), net profit for the year was HK$0.8 million (2011: HK$0.5 million).  Profit margins were low in the years.

Now, the annual sales turnover of the subject ranges from HK$110 to 130 million.

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 took part in “HKTDC Hong Kong International Jewellery Show 2014” which had been held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th to 9th March, 2014.  Its booth No. was S426-01.  It is going to take part in the same show which will be held in the same centre in March 2015.

B. N. Patel is also a diamond businessman.  In India, he has got business ties with a number of diamond manufacturers and traders.

The history of the subject is over six years in Hong Kong.

Supported by the Patel family, on the whole, consider it good for normal business engagements.

 

 


MORTGAGE OR CHARGE

 

Date

Particulars

Amount

30-08-2011

Instrument:      Mortgage

Property:

2/94th parts or shares of and in Section A of Kowloon Inland Lot No. 7603 and The Remaining Portion of Kowloon Inland Lot No. 7603 (Flat B on 12/F. of Granville House,
41C & 41D Granville Road, Kowloon, Hong Kong.)

Mortgagee:      The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

All moneys

08-04-2013

Instrument:      Security Over Deposits with the Bank Limited Company - Under Seal

Property:

Initially HK$1,300,000 or equivalent and all monies whether now or hereafter standing to the credit of the company’s deposit with the Bank under deposit No. 817-357593 & whatever currency it may subsequently be denominated in, any renewal of such deposit & the interest thereon together with any further moneys in any deposit account with the Bank at any of its offices.

Mortgagee:      The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

To secure all monies in respect of banking facilities owing at any time plus interest and all expenses


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.99

UK Pound

1

Rs.101.75

Euro

1

Rs.83.48

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

PDT

 

               

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.