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Report Date : |
26.09.2014 |
IDENTIFICATION DETAILS
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Name : |
VARNIRAJ EXPORTS LTD. |
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Registered Office : |
Room 305, 3/F., Chevalier House, |
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Country : |
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Date of Incorporation : |
17.05.2007 |
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Com. Reg. No.: |
37966566 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Supplier, Importer and Exporter of all kinds of Diamonds |
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No of Employees : |
4 [Including Associate] |
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) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
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 |
VARNIRAJ EXPORTS LTD.
ADDRESS: Room 305, 3/F., Chevalier
House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2866
6627, 2311 9192
FAX: 852-2723
2290
E-MAIL: info@viraniexports.com
Managing Director: Mr.
Mukundkumar Ranchhodbhai Virani
Incorporated on: 17th May, 2007.
Organization: Private Limited Company.
Capital: Nominal: HK$1,600,000.00
Issued: HK$1,600,000.00
Business Category: Diamond
Trader.
Employees: 4. (Including associate)
Main Dealing Banker: Industrial
& Commercial Bank of China (Asia) Ltd., Hong Kong.
Banking Relation: Satisfactory
VARNIRAJ EXPORTS LTD.
Registered Head
Office:-
Room 305, 3/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui,
Kowloon, Hong Kong.
Associated
Companies:-
Akshar Diam HK Ltd., Hong Kong.
(Same address)
Virani Exports Ltd., India.
37966566
1133613
Managing Director: Mr.
Mukundkumar Ranchhodbhai Virani
Contact Person: Mr. Sinh
Nominal Share Capital: HK$1,600,000.00 (Divided into 1,600,000 shares of
HK$1.00 each)
Issued Share Capital: HK$1,600,000.00
(As per registry dated 17-05-2014)
|
Name |
|
No. of shares |
|
Mukundkumar Ranchhodbhai VIRANI |
|
1,600,000 ======= |
(As per registry dated 17-05-2014)
|
Name (Nationality) |
Address |
|
Mukundkumar Ranchhodbhai VIRANI |
65/66, Gopinath Society 2, Kantareshwar Mandir, Katargam,
Surat-395004, India. |
(As per registry dated 17-05-2014)
|
Name |
Address |
Co. No. |
|
Lodestar Secretaries Ltd. |
13/F., Wah Kit Commercial Centre, 302 Des Voeux Road Central, Hong
Kong. |
0113023 |
The subject was incorporated on 17th May, 2007 as a private limited
liability company under the Hong Kong Companies Ordinance.
Initially the subject’s registered office was located at Unit A, 8/F.,
Kam Chung Commercial Building, 19-21 Hennessy Road, Wanchai,
Hong Kong where is the operating office of CBS Pacific Ltd., moved to Room
602, 6/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong
with effect from 22nd December, 2009, and further moved to the present address
in October 2010.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Supplier,
Importer and Exporter.
Lines: All
kinds of diamonds
Employees: 4. (Including associate)
Commodities Imported: India,
Europe, other Asian countries
Markets: Hong
Kong, other Asian countries, Middle East
Terms/Sales: L/C, T/T
Terms/Buying: L/C, T/T, D/P
Nominal Share Capital: HK$1,600,000.00 (Divided into 1,600,000 shares of
HK$1.00 each)
Issued Share Capital: HK$1,600,000.00
Indebtedness:
HK$6,753,596.00 (Total amount
outstanding on all mortgages and charges as per last Annual Return dated
17-05-2014)
Mortgage or Charge: (See
attachment)
Profit or Loss: Made small
profits in past three years.
Condition: Business is
normal.
Facilities: Making active
use of general banking facilities.
Payment: Met trade commitments as
contracted.
Commercial Morality:
Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Dah Sing Bank Ltd., Hong Kong.
Hang Seng Bank Ltd., Hong Kong.
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Standing: Normal.
Varniraj Exports Ltd. was incorporated in May, 2007 as a private limited
liability company.
The subject has issued 1.6 million ordinary shares of HK$1.00 each which
are wholly owned by Mr. Mukundkumar Ranchhodbhai Virani who is an Indian.
Formerly the subject had just issued 100,000 ordinary shares of
HK$1.00 each which were wholly-owned by Mr. Parshottambhai Naranbhai
Virani who was also an Indian.
Parshottambhai Naranbhai Virani transferred his shares to Mukundkumar
Ranchhodbhai Virani and the subject has increased its ordinary shares to the
present number. The former was also the
only director of the subject. Now, he
has retired.
On 27th April, 2010, Mukundkumar Ranchhodbhai Virani was appointed
the new director of the subject to take the place Parshottambhai Naranbhai
Virani.
The subject is a diamond trader.
Owned by the Virani family, the subject has got an associated firm
Virani Exports Ltd. [Virani] which is also a diamond manufacturer in Surat,
India. Virani is supplying its worldwide
customers with loose, polished and cut diamonds under the name of the subject.
Besides, the subject has had an associated company Akshar Diam HK Ltd.
[Akshar Diam] located at the same address.
Akshar Diam is wholly-owned by Harikrushna Karsanbhai Virani. Incorporated in July 2010, Akshar Diam is
also a diamond importer, exporter and wholesaler.
Virani has been exporting a wide range of exquisite diamonds since
1971. It is engaged in manufacture
diamonds like Round, Princess, Marquise, Pear, Heart, Emerald, Cushion and
Fancy shapes in all Sizes and Colours.
It is pioneers in Colour D to K Diamonds and Quality pk to vvs
Diamonds. Its manufacturing unit is
based out of Surat, India which is the Diamond Hub of India as well as the
world. It has set up its offices in
Mumbai and New Delhi of India.
The subject is the supplier, importer and exporter of versatile range of
loose diamonds in a wide variety like rose cut diamonds, rose cut heart, rose
cut round, rose cut pears, rose cut oval, rose cut marquise, fancy cut and
fancy colour diamonds, etc. Its
significant products are polished white and coloured diamonds, loose diamonds,
etc.
Commodities are chiefly supplied by Virani in India. Prime markets are Hong Kong, China, the
other Asian countries, the Middle East, etc.
Business is improving.
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 contact person of the subject is a Mr. Sinh who is also an Indian.
The subject operates from its own offices.
The history of the subject in Hong Kong is just over seven years and
four months. On the whole, consider it
good for normal business engagements.
Property information of the company:-
1. Property Location: Unit 5, 3/F., Chevalier House, 45-51
Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
Owner: Varniraj Exports Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
27-05-2013 |
- |
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong. |
Mortgage |
2. Property Location: Flat A on 10/F., Windsor Mansion
(formerly known as Union Mansion), 33-35 Chatham Road, Tsimshatsui, Kowloon,
Hong Kong.
Owner: Varniraj Exports Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
27-05-2013 |
- |
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong. |
Mortgage |
|
Date |
Particulars |
Amount |
|
05-02-2013 |
Instrument: Assignment of Life Insurance Property: (1) All the Assignor’s
claims under the Insurance: Insurance Policy No: 28005992-50 Name of Insurance Co.: HSBC Life (International) Ltd. Name of the Insured: Yogeshkumar Govindbhai VIRANI Assignor / Policy Owner: Varniraj Exports Ltd. (2) All the Assignor’s
claims against the issuer of the Policy Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
All and any monies and liabilities |
|
27-05-2013 |
Instrument: Mortgage Property: 96/19,060 parts or shares of and in The Remaining Portion of Kowloon
Inland Lot No. 7072, 7074, 8567 & 8670 (Unit 5, 3/F., Chevalier House,
45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.) Mortgagee: Industrial & Commercial Bank of
China (Asia) Ltd., Hong Kong. |
All monies |
|
27-05-2013 |
Instrument: Mortgage Property: 1/301 parts or shares of and in The Remaining Portion of Kowloon
Inland Lot No. 8247 [Flat A on 10/F., Windsor Mansion (formerly known as
Union Mansion), 33-35 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.] Mortgagee: Industrial & Commercial Bank of
China (Asia) Ltd., Hong Kong. |
All monies |
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 |
|
|
1 |
Rs.99.43 |
|
Euro |
1 |
Rs.77.84 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
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|
|
|
Report Prepared
by : |
TPT |
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 |
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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 |
|
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.