|
Report Date : |
16.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
PRATEEK EXPORTS LTD. |
|
|
|
|
Registered Office : |
Room 1001, 10/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
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Date of Incorporation : |
12.12.2008 |
|
|
|
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Com. Reg. No.: |
50109894 |
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|
|
|
Legal Form : |
Private Limited Liability Company |
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|
|
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Line of Business : |
Importer and Exporter of all kinds of diamonds |
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|
|
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No. of Employees : |
7 |
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 – 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 |
|
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 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 |
PRATEEK
EXPORTS LTD.
ADDRESS:
Room 1001, 10/F.,
Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2367 5960
FAX: 852-2367 6675
E-MAIL: prateekexp@netvigator.com
Managing
Director: Mr. Sunil Jain
Incorporated on: 12th December, 2008.
Organization: Private Limited Company.
Capital: Nominal: HK$1,000,000.00
Issued: HK$1,000,000.00
Business Category: Diamond Trader.
Annual Turnover: US$15~25 million (Including associate)
Employees: 7. (Including associate)
Main Dealing Banker: Dah Sing Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
PRATEEK
EXPORTS LTD.
ADDRESS:
Registered
Head Office:-
Room 1001, 10/F.,
Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
Mailing
Address:-
P.O. Box 90929,
Tsimshatsui, Kowloon, Hong Kong.
Associated
Company:-
Prateek Exports,
Hong Kong. (Same address)
Affiliated
Company:-
Bao Shin (HK) Co.,
Hong Kong. (Same address)
50109894
1294059
Managing
Director: Mr. Sunil Jain
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
(As
per registry dated 12-12-2013)
|
Name |
|
No.
of shares |
|
Sunil JAIN |
|
1,000,000 ======= |
(As
per registry dated 12-12-2013)
|
Name (Nationality) |
Address |
|
Sunil JAIN |
Flat B, 11/F., Emperor Heights, 5 Cox’s
Road, Jordan, Kowloon, Hong Kong. |
(As
per registry dated 12-12-2013)
|
Name |
Address |
Co.
No. |
|
Normsun
Corporate Secretarial Services Ltd. |
Room 2403, 24/F., Tung Wai Commercial Building, 109-111 Gloucester
Road, Wanchai, Hong Kong. |
0893275 |
The
subject was incorporated on 12th December, 2008 as a private limited liability
company under the Hong Kong Companies Ordinance.
Formerly
the subject was located at Flat D & E, 8/F., Cameron Plaza, 23‑25A Cameron
Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in February
2012.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer and Exporter.
Lines: All kinds of diamonds.
Employees: 7. (Including associate)
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan, India, other Asian countries, etc.
Annual Turnover: US$15~25 million (Including associate)
Terms/Sales: L/C, T/T, etc.
Terms/Buying: As per contracted.
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
Indebtedness: HK$13,057,437.63 (Total amount outstanding on all mortgages and charges as per last Annual Return dated 12-12-2013)
Mortgage or Charge: (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Keeping in a rather active state.
Facilities: Making active use of general banking facilities.
Payment: Met as required.
Commercial Morality: Satisfactory.
Banker: Dah Sing Bank Ltd., Hong Kong.
Standing: Normal.
Having
issued 1 million ordinary shares of HK$1.00 each, Prateek Exports Ltd. is
wholly owned by Mr. Sunil Jain, an Indian who has been in Hong Kong for a very
long time. He is a Hong Kong ID Card
holder and has got the right to reside in Hong Kong permanently. Jain is also the only director of the
subject.
The
subject has had an associated company Prateek Exports located at its operating
office. Established on 8th January 1990,
Prateek Exports is a diamond trader, so does the subject. Prateek Exports is a sole proprietorship
owned by Jain.
The
subject is trading in loose diamonds, single cut diamonds, tapper cut diamonds,
full cut diamonds, etc. Most of the
products are for watches and jewellery.
The subject is trading in the following products:-
·
Diamond Watches;
·
Jewellery Bracelet Watches;
·
Jewellery Watches; &
·
Loose diamonds.
Most
of the watches are claimed to be high-end.
Commodities
are chiefly imported from India.
Finished products are exported to the other Asian countries, Western
Europe, the Middle East, Southeast Asia, North America, etc.
The
subject has developed long term business ties with a number of suppliers in
India and buyers in Asia and the Middle East.
The
total annual sales turnover of the subject and Prateek Exports ranges from
US$15 to 25 million. Chiefly handled by
Jain, the subject’s business is rather active and profitable.
The
subject operates from its own office in Hong Kong. It also owns other premises.
As
the history of the subject is over five years and ten months in Hong Kong, on
the whole, consider it good for normal business engagements.
Property information of the company:-
Property Location: Unit 1 on 10/F., Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.
Owner: Prateek Exports Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
01-11-2010 |
- |
Dah Sing Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
|
Date |
Particulars |
Amount |
|
01-11-2010 |
Instrument: Mortgage Property: 198/19,060th parts or shares of and in The
Remaining Portion of Kowloon Inland Lot No. 7072, Kowloon Inland Lot No.
8670, Kowloon Inland Lot No.8567 and Kowloon Inland Lot No.7074 (Unit 1 on
10/F. of Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.) Mortgagee: Dah
Sing Bank Ltd., Hong Kong. |
To secure all money in respect of general banking facilities |
|
01-11-2010 |
Instrument: Rental
Assignment Property: 198/19,060th parts or shares of and in The
Remaining Portion of Kowloon Inland Lot No. 7072, Kowloon Inland Lot No.
8670, Kowloon Inland Lot No.8567 and Kowloon Inland Lot No.7074 (Unit 1 on
10/F. of Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.) Mortgagee: Dah
Sing Bank Ltd., Hong Kong. |
To secure all money in respect of general banking facilities |
|
16-05-2011 |
Instrument: Second
Mortgage Property: 198/19,060th parts or shares of
and in The Remaining Portion of Kowloon Inland Lot No. 7072, Kowloon Inland
Lot No. 8670, Kowloon Inland Lot No. 8567 and Kowloon Inland Lot No. 7074
(Unit 1 on 10/F. Chevalier House, 45-51 Chatham Road South, Kowloon, Hong
Kong.) Mortgagee: Dah
Sing Bank Ltd., Hong Kong. |
All monies |
|
16-05-2011 |
Instrument: Rental
Assignment Property: 198/19,060th parts or shares of and in The
Remaining Portion of Kowloon Inland Lot No. 7072, Kowloon Inland Lot No.
8670, Kowloon Inland Lot No. 8567 and Kowloon Inland Lot No. 7074 (Unit 1 on
10/F. Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.) Mortgagee: Dah
Sing Bank Ltd., Hong Kong. |
All monies |
|
31-07-2013 |
Instrument: Mortgage Property: 2,290/588,444th parts or shares
of and in Kowloon Inland Lot No. 10985 (Unit 16 on 14/F. of West Wing of
Peninsula Square, 18 Sung On Street, Kowloon, Hong Kong.) Mortgagee: Dah
Sing Bank Ltd., Hong Kong. |
All monies |
|
31-07-2013 |
Instrument: Rental
Assignment Property: 2,290/588,444th parts or shares of and in
Kowloon Inland Lot No. 10985 (Unit 16 on 14/F. of West Wing of Peninsula
Square, 18 Sung On Street, Kowloon, Hong Kong.) Mortgagee: Dah
Sing Bank Ltd., Hong Kong. |
All monies |
|
31-07-2013 |
Instrument: Second
Mortgage Property: 2,290/588,444th parts or shares of and in
Kowloon Inland Lot No. 10985 (Unit 16 on 14/F. of West Wing of Peninsula
Square, 18 Sung On Street, Kowloon, Hong Kong.) Mortgagee: Dah
Sing Bank Ltd., Hong Kong. |
All monies |
|
31-07-2013 |
Instrument: Rental
Assignment Property: 2,290/588,444th parts or shares of and in
Kowloon Inland Lot No. 10985 (Unit 16 on 14/F. of West Wing of Peninsula
Square, 18 Sung On Street, Kowloon, Hong Kong.) Mortgagee: Dah
Sing Bank Ltd., Hong Kong. |
All monies |
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.
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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.
-
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.61.10 |
|
|
1 |
Rs.98.15 |
|
Euro |
1 |
Rs.77.68 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.