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Report Date : |
08.10.2014 |
IDENTIFICATION DETAILS
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Name : |
DYNAMIC INTERNATIONAL |
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Registered Office : |
Flat C2, 12/F., Block C, Hankow Centre, 1 Middle Road, Tsimshatsui,
Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
02.06.1987 |
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Com. Reg. No.: |
11054391-000-06 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of All Kinds of Diamonds, Gemstones |
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No of Employees : |
4 |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
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 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 |
DYNAMIC
INTERNATIONAL
ADDRESS: Flat C2, 12/F., Block C,
Hankow Centre, 1 Middle Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2722 6651, 2312 0826
FAX: 852-2367 6755
E-MAIL: sales@dynamicinternational.biz
ashu@dynamicinternational.biz
dynamicintl@hotmail.com
Manager: Mr. Ashwani Kumar
Malpani
Establishment: 2nd June, 1987.
Organization: Sole
Proprietorship.
Capital: Not disclosed.
Business Category: Jewellery
Trader.
Annual Turnover: US$3.0~3.5
million.
Employees: 4.
Main Dealing Banker: Wing Lung
Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
DYNAMIC INTERNATIONAL
Head Office:-
Flat C2, 12/F., Block C, Hankow Centre, 1 Middle Road, Tsimshatsui,
Kowloon, Hong Kong.
Affiliated
Companies:-
Dynamic International (Japan) Inc., Japan.
Raja’s Empire Co. Ltd., Taiwan.
11054391-000-06
Manager: Mr. Ashwani Kumar
Malpani
Contact Person: Ms. Ashu-Ashu
Name: Mr. Ashwani Kumar MALPANI
Residential Address: Flat B,
18/F., Star Mansion, 3 Minden Row, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 2nd June, 1987 as a sole proprietorship
concern owned by Mr. Ashwani Kumar Malpani under the Hong Kong Business
Registration Regulations.
Initially the subject was located at Flat B, 18/F., Star Mansion, 3
Minden Row, Tsimshatsui, Kowloon, Hong Kong, moved to Flat D, 9/F., Beauty
Mansion, 69-71A Kimberley Road, Tsimshatsui, Kowloon, Hong Kong in June 1988;
to Flat C3, 8/F., Block C, Hankow Centre, 1C Middle Road, Tsimshatsui, Kowloon,
Hong Kong in August 2002; and further to the present address in February 2006.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of diamonds, gemstones
Employees: 4.
Commodities Imported: India,
Thailand, Europe, etc.
Markets: Japan,
South Africa, Thailand, US, Europe, Taiwan, etc.
Annual Turnover: US$3.0~3.5
million.
Terms/Sales: L/C, T/T, O/A
Terms/Buying: L/C, T/T, D/P
MEMBERSHIP: Hong Kong Gemstone
Manufacturers’ Association Ltd., Hong Kong.
Capital: Not disclosed.
Profit or Loss: Making a small
profit in the past years.
Condition: Keeping in a steady
manner.
Facilities: Making active use of
general banking facilities.
Payment: Met trade commitments as
contracted.
Commercial Morality:
Satisfactory.
Banker: Wing Lung Bank Ltd.,
Hong Kong.
Standing: Good.
Dynamic International is a sole proprietorship set up and owned by
Mr. Ashwani Kumar Malpani who is an Indian. He is also manager of the subject.
The subject is a family business of the Malpanis which was originated in
the city of Jaipur, India. The Malpanis
have been in his this family business since the foundation of the city Jaipur. Mr. Girirajdasji Malpani ventured out of
Jaipur in 1959, establishing himself as one of the most sought after hub of
collared stones and diamonds in Bombay, India.
Ashwani Kumar Malpani started business of gemstones in Hong Kong in 1987
by setting up the subject and was soon joined by his brother Rajesh Kumar
Malpani in 1989.
The Malpanis in Hong Kong can be reached at their Hong Kong mobile phone
number 852-9016 0540 and 852-9079 1701.
The subject is a loose diamond and 18K gold jewellery importer, exporter
and wholesaler. It has got an affiliated
company in Kofu, Japan, which was set up in 1990, followed by another firm in
Taipei, Taiwan in 1994.
Currently, the
subject is manufacturing the following commodities and offering clients with
the following services:-
|
Product/Service |
Product/Service
Remarks |
|
Fine Jewellery |
|
|
Diamond |
From Thailand, India (Importer) From Thailand, India (Exporter) From Thailand, India (Mail Order Co.) |
|
Gemstones and Jade |
Precious stones include cabs and beads from Thailand, India (Importer) Precious stones include cabs and beads from Thailand, India (Exporter) Precious stones include cabs and beads from Thailand, India (Mail
Order Co.) |
|
Semi-Precious Stone |
Include cabs and beads from Thailand, India (Importer) Include cabs and beads from Thailand, India (Exporter) Include cabs and beads from Thailand, India (Mail Order Co.) |
|
Sapphire |
From Thailand, India (Exporter) From Thailand, India (Mail Order Co.) From Thailand, India, Burma (Importer) |
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Ruby |
From Thailand, India (Exporter) From Thailand, India (Mail Order Co.) From Thailand, India, Burma (Importer) |
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Emerald |
From Thailand, India (Exporter) From Thailand, India (Mail Order Co.) From Thailand, India, Burma (Importer) |
Besides, the subject also trades in Rings, Diamond Earrings, 18K Gold
and Diamond Bangles, Flat Cut Diamond Rings, Diamond Gold Rings, Flat Cut
Diamond Brooches, Diamond Gold Brooches, Flat Cut Diamond Necklaces, Flat
Diamond Rings
The subject’s products are imported from India and Thailand. Prime markets are Japan, South Korea, South
Africa, Thailand, the United States, Europe, Taiwan, the Middle East, etc. Business is rather active.
The annual sales turnover of the subject ranges from US$3.0 to 3.5
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 and other foreign
countries such as Japan, the United States, Switzerland
For instance, it is going to take part in “HKTDC Hong Kong International
Jewellery Show 2015” which will be held in Hong Kong Convention and Exhibition
Centre, Wanchai, Hong Kong during the period of 4th to 8th March, 2015.
It is also going to take part in “HKTDC Hong Kong International Diamond,
Gem & Pearl Show 2015” which will be held in Hong Kong AsiaWorld-Expo,
Lantau, Hong Kong during the period of 2nd to 6th March, 2015.
Since the history of the subject in Hong Kong is over twenty-seven
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.61.35 |
|
|
1 |
Rs.98.71 |
|
Euro |
1 |
Rs.77.47 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
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 |
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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 |
|
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 |
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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 |
|
<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.