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Report Date : |
25.09.2014 |
IDENTIFICATION DETAILS
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Name : |
H.K. IMPEX |
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Registered Office : |
Room 704, 7/F., Block 4, Chevalier House, |
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Country : |
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Date of Incorporation : |
01.01.2002 |
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Com. Reg. No.: |
32290536-000-01 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer and Exporter of all kinds of diamonds and
jewellery |
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No. of Employees : |
05 |
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 |
A2 |
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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 |
H.K. IMPEX
ADDRESS: Room 704, 7/F., Block 4, Chevalier House, 45-51 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2367 8114, 2724 6530, 3741 2290
FAX: 852-2368 7147
E-MAIL: info@hkimpex.com
hk@diamondbyhk.com
Manager: Mr. Bhagwanji Virji Lunagaria
Establishment: 1st January, 2002.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond Importer and Exporter.
Annual Sales Turnover: US$25-30 million.
Employees: 5. (Including associate)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Room 704, 7/F., Block 4, Chevalier House, 45-51 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
Hari Krishna Group
of Companies
H.K. Designs (India), India.
H.K. Designs Inc., USA.
H.K. Diam BVBA, Belgium.
H.K. Exports (Shanghai) Ltd., China.
H.K. Impex Pvt. Ltd., Hong Kong.
H.K. International, USA.
H.K. Jewels Pvt. Ltd., India.
Hari Krishna Exports Pvt. Ltd., India.
Hari Krishna Lifeline Pvt. Ltd., India.
Unity Diam, Hong Kong. (Same address)
etc.
32290536-000-01
Manager: Mr. Bhagwanji Virji Lunagaria
Contact Persons: Mr. Mukesh Dholakiya
Name: Mr. Bhagwanji Virji LUNAGARIA
Residential Address: B-241 Ambikanagar Society, 099 Aarogya Kendra, Katargam, Surat, Gujarat, India.
The subject was established on 1st January, 2002 as a partnership concern jointly owned by Mr. Urveshi Kirtikant Maniyar and Mr. Bhagwanji Virji Lunagaria under the Hong Kong Business Registration Regulations.
The following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Urveshi Kirtikant MANIYAR |
01-01-2002 |
28-09-2004 |
|
Bhagwanji Virji LUNAGARIA |
01-01-2002 |
--- |
|
Mukeshkumar G. DHOLAKIYA |
07-08-2002 |
05-08-2003 |
At the very beginning, the subject was located at Flat E, 11/F., Luna Court, 53-59 Kimberly Road, Tsimshatsui, Kowloon, Hong Kong, moved to Room 1603, 16/F., Winfield Commercial Building, 6-8A Prat Avenue, Tsimshatsui, Kowloon, Hong Kong in December 2002, moved to Room 1011, 10/F., Peninsula Square, West Wing, 18 Sung On Street, Hunghom, Kowloon, Hong Kong in October 2005, and further to the present address in August 2011.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer and Exporter.
Lines: All kinds of diamonds and jewellery,
Employees: 5. (Including associate)
Commodities Imported: India, other Asian countries, Europe
Markets: Asia Pacific region, Middle East, Australia, New Zealand, US, Europe
Annual Sales Turnover: US$25-30 million.
Terms/Sales: As per contracted.
Terms/Buying: L/C, T/T, D/P.
Capital: Not disclosed.
Profit or Loss: Making a small profit every year.
Condition: Keeping in an active condition.
Facilities: Making active use of general banking facilities.
Payment: Met obligations as required.
Commercial Morality: Good.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Very Good.
H.K. Impex is a Hong Kong based company engaged in jewellery and diamond business. The subject moved to the present address in August 2011. It shares the same office with Unity Diam which is also a Hong Kong‑registered firm.
Business commenced on 1st January, 2002, the subject now is a sole proprietorship owned by Mr. Bhagwanji Virji Lunagaria who is an India merchant. Having been in Hong Kong for a very long time, he is a Hong Kong ID holder and has got the right to reside in Hong Kong permanently.
The subject is a diamond trader. It is trading in the following products:
VVS1 Diamond, IF Diamond, SI3 Diamond, SI2 Loose Diamond, SI1 Loose Diamond, Faceted Loose Diamond, GIA Diamond, etc.
It is able to offer its worldwide customers with international standard diamonds. Its prime markets are the Asia Pacific region, the Middle East, Australia, New Zealand, the United States, Europe, etc.
The subject is a marketing affiliate of m/s. Hari Krishna Exports Pvt. Ltd. which is in Mumbai, India. The subject belongs to the Hari Krishna Group.
According to the subject, Hari Krishna Exports has been engaged in diamond business since 1983. The Group is a diamond sightholder.
The Group has numerous workers spread over seven factories located in the diamond city of Surat, India and with its marketing office in Mumbai, India. The factories and office, operated by the Hari Krishna Group, are able to cut and polish all kinds of diamonds and export its products to worldwide countries. It is specialized in “white colour and round cut” for all sizes.
The Hari Krishna Group is a diamond cutter and polisher. Its flagship company Hari Krishna Exports was set up in 1992 at Surat in India with a simultaneous opening of sales and marketing office in Mumbai, the hub of polished diamond trade.
Hari Krishna Group procures rough diamonds from various producers of Russia, South Africa, Canada, and other agencies of Antwerp. Rough diamonds are brought to its Surat and Ahmedabad manufacturing plants where they are cut and polished into different shapes, sizes and weight. The Group’s diamonds are usually in round brilliant cut [RBC] in whites. All the polished goods are sent to Mumbai office where the Group’s sales office and assort departments are located. After the assortment has been done, goods are being sold and exported to various clients throughout the world.
Hari Krishna Group has got the ISO9001:2000 certificate from ABS Quality Evaluations Inc. It is also a “Three Star Export House” recognized by the Government of India. From 2005 to 2010, the Gem and Jewellery Export Promotion Council in India had awarded the Group with certificates for its good export performance. Apart from the subject, the Group has set up affiliated offices in the United States, Shenzhen Special Economic Zone, Shanghai of China, etc.
The Group’s products are exported to the United States, Japan, Israel, the United Kingdom, Belgium, Australia, New Zealand, the United Arab Emirates, and some of the European countries.
H.K. International, the first overseas marketing alliance of Hari Krishna Group, was set up in 1999 in New York. It is dealing in diamonds ranging from 0.50 pts to 5.00 cts. and also in stones certified by GIA and EGL.
The Group’s ventures include jewellery manufacturing facilities in Mumbai: H.K. Jewels and H.K. Designs (India).
Now, including manufacturing facilities, the Group employs more than 3,000 people worldwide.
Now, the annual sales turnover of the Group ranges from US$270 to 300 million. Overall business is active.
The annual sales turnover of the subject ranges from US$25 to 35 million. Business is profitable.
The subject has got affiliated companies known as H.K. Designs (India) and H.K. Jewels Pvt. Ltd. in India. Its associated company in China is known as H.K. Exports Shanghai Ltd.
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 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.
The history of the subject in Hong Kong is over twelve years and eight months. Overall business is good.
On the whole, the subject is considered 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.61.02 |
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|
1 |
Rs.99.99 |
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Euro |
1 |
Rs.78.37 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIS |
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 |
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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.