|
Report Date : |
25.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
RELIANCE TRADES |
|
|
|
|
Registered Office : |
Flat A4, 6/F., Hankow Centre, |
|
|
|
|
Country : |
|
|
|
|
|
Date of Incorporation : |
09.02.1981 |
|
|
|
|
Com. Reg. No.: |
07053042-000-02 |
|
|
|
|
Legal Form : |
Partnership |
|
|
|
|
Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds
and jewellery products, emerald, precious stones |
|
|
|
|
No. of Employees : |
3 |
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 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
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
|
Source
: CIA |
RELIANCE
TRADES
ADDRESS: Flat A4, 6/F., Hankow Centre, 47
Peking Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2366 3063
FAX: 852-2311 0919
E-MAIL: reliance@hkstar.com
Manager: Mr. Seyed Abdul Gani Seyed Abdul Kader
Establishment: 9th February, 1981.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Diamond Trader.
Annual Turnover: HK$45~50 million.
Employees: 3. (Including associates)
Main Dealing Banker: Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Banking Relation: Satisfactory.
RELIANCE
TRADES
ADDRESS:
Head
Office:-
Flat A4, 6/F., Hankow
Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
Mailing
Address:-
P.O. Box 97948,
Tsim Sha Tsui Post Office, Kowloon, Hong Kong.
Affiliated/Associated
Companies:- (Same address)
Bridiam, Hong
Kong.
Wai Hing Co., Hong
Kong.
07053042-000-02
Manager: Mr. Seyed Abdul Gani Seyed Abdul Kader
Name: Mr. Seyed Abdul Gani SEYED ABDUL KADER
Residential
Address: 2/F.,
11 Lock Road, Kowloon, Hong Kong.
Name: Mr. Asik Ali MOHAMED SADAKTHAMBY
Residential
Address: Flat A4, 6/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon,
Hong Kong.
Name: Mr. Seyed Abdul Kader Mafaz MOHAMED
Residential
Address: Flat A4, 6/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon,
Hong Kong.
The
subject was established on 9th February, 1981 as a sole proprietorship concern
owned by Seyed Abdul Gani Seyed Abdul Kader under the Hong Kong Business
Registration Regulations.
The
following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Seyed Abdul Gani Seyed Abdul Kader |
09-02-1981 |
--- |
|
Asik Ali Mohamed Sadakthamby |
24-07-1985 |
--- |
|
Samul Haque Mohamed Sadak |
12-01-1993 |
01-11-2011 |
|
Ameer Hamsha Ahamed Shakir |
01-04-1997 |
31-12-1998 |
|
Mohamed Afrah Habeeb Mohamed |
01-01-1999 |
01-04-1999 |
|
Seyed Abdul Kader mafaz mohamed |
24-06-2010 |
--- |
Apart
from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds and jewellery products, emerald, precious stones.
Employees: 3. (Including associates)
Commodities Imported: India, Belgium, other European countries.
Markets: Japan, Southeast Asia, Europe, Middle East.
Annual Turnover: HK$45~50 million.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Capital: Not disclosed.
Profit or Loss: Making a small profit every year.
Condition: Keeping in an active and satisfactory condition.
Facilities: Making rather active use of general banking facilities.
Payment: Met obligations as contracted.
Commercial Morality: Satisfactory.
Bankers:-
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
Reliance Trades is a partnership jointly owned by Seyed Abdul Gani Seyed Abdul Kader, Asik Ali Mohamed Sadakthamby, and Seyed Abdul Kader Mafaz Mohamed. All the partners are Indian who are Hong Kong ID Card holders and have got the right to reside in Hong Kong permanently. The last one S.A. K. Mafaz Mohamed joined in the subject on 24th June, 2010.
Over the past years, the subject had got partners joined in and retired. Now, the subject is managed by the above-mentioned three partners.
The subject’s operating address is in a private and commercial building known as Hankow Centre which is in Tsimshatsui, Kowloon, Hong Kong. The subject is in the private part of the building. Two of the partners of the subject are residing in the subject’s office.
Business commenced in February 1981, the subject is a polished and cut diamond importer, exporter and wholesaler.
It
also trades in Alexandrite, emerald, precious stones, ruby jade, gem sets,
semi-precious stones, blue or coloured sapphire, Tanzanite, etc. Commodities are chiefly imported from India
and Europe. Prime markets are Hong Kong,
Japan, Southeast Asia, Europe, the Middle East, North America, etc.
The
subject also carries the following products:-
·
Diamonds (From India &
Belgium);
·
Gemstones & Jade (Gemstones
from Thailand, Bulgaria, India & Sri Lanka); &
·
Precious & Semi-Precious
Jewellery (From Saudi Arabia, Thailand & Switzerland).
According
to the subject, it is a buying office and an exporter. Overall business is satisfactory.
The
subject has got an associated company Wai Hing Co. [Wai Hing] which is located
at the same operating office of the subject.
Wai Hing is a is a sole proprietorship set up and owned by Mr. Asik Ali
Mohamed Sadakthamby who is one of the partners of the subject. Business commenced in November 2008, Wai Hing
is also a diamond importer, exporter and wholesaler.
Besides
Wai Hing, the subject had another affiliated company Bridiam located at the
same address. Bridiam is a sole
proprietorship set up and owned by Mr. Ahamed Kabir M. K. A. B. Syed who is an
Indian. He is a Hong Kong ID holder and
has got the right to reside in Hong Kong permanently. Also trading in diamonds, Bridiam was
established on 21st February, 2001.
The
subject’s business is chiefly handled by the three partners. Annual sales turnover ranges from HK$45 to 50
million. Making a profit every year. Regular suppliers in India and overseas
customers have been maintained.
The
subject is one of the oldest Indian diamond traders in Hong Kong.
According
to the subject, it is trying to penetrate the China market further in the years
ahead.
On
the whole, since the history of the subject in Hong Kong is over thirty‑three
years, consider it good for normal business engagements.
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.
-
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.61.03 |
|
|
1 |
Rs.99.99 |
|
Euro |
1 |
Rs.78.37 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
SDA |
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.