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Report Date : |
18.09.2014 |
IDENTIFICATION DETAILS
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Name : |
LEO CREATIONS |
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Registered Office : |
Room 404, 4/F., Block B, |
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Country : |
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Date of Incorporation : |
09.09.2008 |
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Com. Reg. No.: |
39765411-000-09 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
· Importer, Exporter and Wholesaler of all kinds of Diamonds, Gems and Jewellery Products Engaged in trading
in Loose, Polished and Cut Diamonds. Subject
product lines are as follows: - Rose Cuts Diamonds, Rose Cut Heart, Rose Cut
Round, Rose Cut Pears, Rose Cut Oval, Rose Cut Marquise, Emerald Cut, Taper,
Tapered Baguette, Fancy Cut and Fancy Colour diamonds, Briollets beads, Old
Mine Cut diamonds Round Brilliant Cut Diamonds, Marquise, Pears, Oval, Heart
& Trilliant |
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No of Employees : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Concern |
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Payment Behaviour : |
Slow but Correct |
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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
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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Hong Kong |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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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.
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Source
: CIA |
LEO CREATIONS
Room 404, 4/F., Block B, Prat Mansion, 26-36 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: Not available
FAX: Not available
Manager: Mr. Sunil Bumb
Establishment: 9th September, 2008.
Organization: Sole Proprietorship.
Capital: Not disclosed
Business Category: Diamond Trader.
Employees: Nil.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory
Head Office:-
Room 404, 4/F., Block B, Prat Mansion, 26-36 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong.
39765411-000-09
Manager: Mr. Sunil Bumb
Name: Mr. Sunil BUMB
Residential Address: Unit
D, 10/F., Union Mansion, 33-35 Chatham Road, Kowloon, Hong Kong.
The subject was established on 9th September, 2008 as a sole proprietorship concern owned by Mr. Sunil Bumb under the Hong Kong Business Registration Regulations.
Apart from these, neither material change nor amendment has
been ever traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds, gems and jewellery products
Employees: Nil.
Commodities Imported: India, other Asian countries, etc.
Markets: Hong Kong, Japan, other Asian countries, etc.
Terms/Sales: L/C, Advanced T/T, etc.
Terms/Buying: L/C, T/T, etc.
Capital: Not disclosed
Profit or Loss: Made very small profits in past three years.
Condition: Business is fairly active.
Facilities: Making rather active use of general banking facilities.
Payment: Slow but Correct
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Leo Creations is a sole proprietorship set up and owned by Mr. Sunil Bumb 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.
Before setting up the subject Bumb has been in Hong Kong for a very long time. He has been a diamond and jewellery product trader since he came to Hong Kong. It was reported that Bumb came to Hong Kong in the early 2000’s.
The subject’s telephone number and fax number have not registered with local telephone concern nor listed on telephone directories in Hong Kong.
The subject’s registered address is in a private building located at Room 404, 4/F., Block B, Prat Mansion, 26-36 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong. This is also the residence of another Indian in Hong Kong. The residential building is not trespassed by outsiders. The subject has no employees in Hong Kong.
Sunil Bumb is residing in Hong Kong but at a different address.
The subject is a diamond importer, exporter and wholesaler. It is trading in loose, polished and cut diamonds. It carries a versatile range of Diamonds in a wide variety like Rose Cuts Diamonds, Rose Cut Heart, Rose Cut Round, Rose Cut Pears, Rose Cut Oval, Rose Cut Marquise, Emerald Cut, Taper, Tapered Baguette, Fancy Cut and Fancy Colour diamonds, Briollets beads, Old Mine Cut diamonds Round Brilliant Cut Diamonds, Marquise, Pears, Oval, Heart & Trilliant
It also trades in jewellery and semi‑precious stones. Most of the commodities are imported from India. Prime markets are Hong Kong, Japan and the other Asian countries. Business is normal.
The subject is just a one-man concern. Business is chiefly handled by Bumb himself. He has developed business ties with a number of diamond suppliers in Mumbai, India.
The history of the subject in Hong Kong is just over five years.
Since the registered office of the subject is in a residential building, on the whole, consider it good for normal business engagements on L/C basis or in very small credit amounts.
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-concern 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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.95 |
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1 |
Rs.99.32 |
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Euro |
1 |
Rs.78.97 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.