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Report Date : |
25.09.2014 |
IDENTIFICATION DETAILS
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Name : |
DOSHI IMPEX
LTD. |
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Registered Office : |
Room 905, 9/F., |
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Country : |
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Date of Incorporation : |
11.08.2004 |
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Com. Reg. No.: |
34820597 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
· Importer, Exporter and Wholesaler of all kinds of Polished Loose Diamonds. suppliers of FC SC DB Black Diamonds and
also GIA/IGI Certified diamonds
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No of Employees : |
05 (Including
associates) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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) |
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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 |
DOSHI IMPEX
LTD.
Room 905, 9/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2739 2188 (5 lines)
FAX: 852-2739 2345, 2333 2431
E-MAIL: info@doshidiam.com
Managing Director: Mr. Kiritkumar Vinodrai Doshi
Incorporated on: 11th August, 2004.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000,000.00
Issued: HK$6,000,000.00
Business Category: Diamond Trader.
Annual Turnover: HK$50~55 million (Including associates)
Employees: 5. (Including associates)
Main Dealing Banker: DBS Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 905, 9/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.
Associated
Companies:-
Doshi Diam, Hong Kong. (Same address)
Doshi Impex, Hong Kong. (Same address)
34820597
0916441
Managing Director: Mr. Kiritkumar Vinodrai Doshi
Contact Person: Mr. Kalpesh Malkan
Nominal Share Capital: HK$10,000,000.00 (Divided into 10,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$6,000,000.00
(As per registry
dated 11-08-2013)
|
Name |
|
No.
of shares |
|
Kiritkumar
Vinodrai DOSHI |
|
3,000,000 |
|
Nayna Kirit DOSHI |
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3,000,000 |
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–––––––– |
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Total: |
6,000,000 ======= |
(As per registry
dated 11-08-2013)
|
Name (Nationality) |
Address |
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Kiritkumar
Vinodrai DOSHI |
Flat A, 21/F., Parc Palais, 18
Wylie Road, Homantin, Kowloon, Hong Kong. |
|
Nayna Kirit
DOSHI |
Flat A, 21/F., Parc Palais, 18
Wylie Road, Homantin, Kowloon, Hong Kong. |
(As per registry
dated 11-08-2013)
|
Name |
Address |
Co.
No. |
|
Harris Secretaries Ltd. |
8/F., Hong Kong Trade Centre, 161-167 Des Voeux Road
Central, Hong Kong. |
0031138 |
The subject was incorporated on 11th August, 2004 as a private limited liability company under the Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of polished loose diamonds.
Employees: 5. (Including associates)
Commodities Imported: India, other Asian countries, etc.
Markets: Asian countries, Middle East, Europe, US, etc.
Annual Turnover: HK$50~55 million (Including associates)
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$10,000,000.00 (Divided into 10,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$6,000,000.00
Mortgage or Charge: (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Keeping in a satisfactory condition.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
· DBS Bank (Hong Kong) Ltd., Hong Kong.
The
Royal Bank of Scotland N.V., Hong Kong Branch.
Standing: Good.
Having issued 6 million ordinary shares of HK$1.00 each, Doshi Impex Ltd. is equally owned by Kiritkumar Vinodrai Doshi and Nayna Kirit Doshi, both of whom is Indian and belong to the same family. They are also directors of the subject. Being Hong Kong ID Card holders, they have got the right to reside in Hong Kong permanently. The subject’s style was named after the Indian family.
The directors of the subject are residing in a luxury residential building in Hong Kong.
The subject is a diamond importer, exporter and wholesaler. It is one of the major suppliers of FC SC DB Black Diamonds and also GIA/IGI GIA/IGI Certified diamonds in the world.
Most of its commodities are imported from India. Prime markets are Hong Kong, other Asian countries, Europe, the Middle East, and the United States. Business is active.
According to the subject, it has had an associated company in India bearing a similar name and the India firm has been ranked as one of the top ten diamond companies in India.
The subject has got two associated companies located at its operating office, namely, Doshi Impex and Doshi Diam. These two firms are also diamond traders. Doshi Diam was established on 30th January, 2001 as a partnership which is jointly owned by jointly owned by Mr. Nayna Kirit Doshi, Mr. Kiritkumar Vinodrai Doshi and Mr. Mahesh Kaushik Shah.
Doshi Diam has had an associated company also known as Doshi Diam in India [India Doshi Diam]. India Doshi Diam was set up by two brothers, Mr. Bipin Doshi and Mr. Kirit Doshi in 1985.
India Doshi Diam is one of the leading diamond distributors all over the world, having major market presence in Europe and China. It is also one of the major suppliers of black diamonds in the world.
The annual sales turnover of the subject and its associates ranges from HK$40 to 45 million. Business is profitable.
In order to penetrate the international market further, the subject’s associate Doshi Diam has taken part in fairs and exhibitions held in Hong Kong and other foreign large cities. For instance, it is going to take part in “HKTDC Hong Kong International Jewellery Show 2014” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th to 9th March, 2014.
The contact person of the subject Mr. Kalpesh Malkan is also an Indian.
The Doshi family in Hong Kong is wealthy.
Currently, the subject owns a number of premises in Hong Kong.
As the history of the subject in Hong Kong is over nine years, on the whole, consider it good for normal business engagements.
REMARKS:
Property
information of the company:-
Property Location: Flat A on 2/F. of Block 5, Royal Peninsula, 8 Hung Lai Road, Kowloon, Hong
Kong.
Owner: Doshi Impex Ltd.
Date of
Purchase: n.a.
Purchased
Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
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10-04-2008 |
- |
ABN AMRO Bank N.V., Hong Kong Branch. [Now known as The Royal Bank of Scotland
N.V.] |
Mortgage to secure general banking facilities granted
to Doshi Impex Ltd. |
|
10-04-2008 |
- |
- ditto - |
Mortgage to secure general banking facilities granted
to Nayna Kirit Doshi, Kiritkumar Vinodrai Doshi and Mahesh Kaushik Shah
trading as Doshi Diam |
|
Date |
Particulars |
Amount |
|
11-05-2005 |
Instrument: Debenture Property: All the Company’s undertaking and property and assets whatsoever and wheresoever both present and future including all book and other debts revenues and claims both present and future due or owing or which may become due or owing to the Company, all its uncalled capital, goodwill and all patents, patent applications, trade marks, trade names, registered designs and copyrights and all licences and ancillary and connected rights relating to the intangible property both present and future of the Company Mortgagee: ABN AMRO Bank N.V., Hong Kong Branch. [Now known as The Royal Bank of Scotland
N.V.] |
General banking facilities granted to Doshi Impex
Ltd., Nayna Kirit Doshi, Kiritkumar Vinodrai Doshi and Mahesh Kaushik Shah
trading as Doshi Diam |
|
10-04-2008 |
Instrument: Mortgage Property: 174/380,954th parts or shares of and in Kowloon Inland Lot No. 11084 (Flat A on 2/F. of Block 5 of Royal Peninsula, 8 Hung Lai Road, Kowloon, Hong Kong.) Mortgagee: ABN AMRO Bank N.V., Hong Kong Branch. [Now known as The Royal Bank of Scotland
N.V.] |
General banking facilities granted to Doshi Impex Ltd. |
|
10-04-2008 |
Instrument: Mortgage Property: 174/380,954th parts or shares of and in Kowloon Inland Lot No. 11084 (Flat A on 2/F. of Block 5 of Royal Peninsula, 8 Hung Lai Road, Kowloon, Hong Kong.) Mortgagee: ABN AMRO Bank N.V., Hong Kong Branch. [Now known as The Royal Bank of Scotland
N.V.] |
General banking facilities granted to Nayna Kirit
Doshi, Kiritkumar Vinodrai Doshi and Mahesh Kaushik Shah trading as Doshi
Diam |
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31-03-2014 |
Instrument: Charge on Cash Deposit and Structured Investment Deposit Property: (1) By way f first fixed charge and agreement to charge: (a) The Structured Investment Deposit and all rights, title, interest and benefit of the Company (b) The Deposit and all right, title and interest of the Company (c) Any other Structured Investment Deposit shall be deposited or transferred by the Company to the Bank (2) By way of assignment: To the extent not otherwise effectively charged under Clause 3 of the Charge, the Company assigns absolutely, subject to a proviso for re-assignment on redemption, all of the Company’s rights, title, benefit and interest in any Structured Investment Deposit Document in favour of the Bank (3) By way of set-off: Without limiting any general or banker’s lien, right of set-off or other right to which the Bank may be entitled, the Bank may at any time whether or not any Liabilities shall have become due and payable or any of the then existing accounts of the Company with Bank and set-off or transfer any sum standing to the credit of any one or more of such accounts Mortgagee: DBS Bank (Hong Kong) Ltd., Hong Kong. |
All present and future obligations and liabilities of
the Company to the Bank from time to time |
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.61.03 |
|
|
1 |
Rs.99.99 |
|
Euro |
1 |
Rs.78.37 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
SDA |
RATING EXPLANATIONS
|
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 |
|
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.