|
Report No. : |
336801 |
|
Report Date : |
12.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
K. GIRDHARLAL (HONG KONG) LTD. |
|
|
|
|
Registered Office : |
Room 916, 9/F., Peninsula Square, West Wing, 18 Sung On Street, Hunghom, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
06.03.2000 |
|
|
|
|
Com. Reg. No.: |
30774948 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Exporter and Wholesaler of all kinds of Diamonds, Precious
Stones. |
|
|
|
|
No. of Employees : |
6 (Including
Associates) |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 40.7 million
in 2013, 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 48.5% of
the firms listed on the Hong Kong Stock Exchange and accounted for about 56.9%
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. As of year-end 2014, the Democracy
protests that began in late September probably will have some adverse effects
on economic growth, particularly retail sales.
|
Source
: CIA |
K.
GIRDHARLAL (HONG KONG) LTD.
ADDRESS: Room 916, 9/F., Peninsula
Square, West Wing, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2311
6551
FAX: 852-2311
6553
E-MAIL: hongkong@kgirdharlal.com
Managing Director:
Mr. Vinodkumar Gautamlal Shah
Incorporated on: 6th March, 2000.
Organization: Private Limited Company.
Capital: Nominal:
US$2,000,000.00
Issued: US$2,000,000.00
Business Category: Diamond
Trader.
Employees: 6 (Including associates)
Main Dealing Banker: Hang
Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 916, 9/F., Peninsula Square, West Wing, 18 Sung On
Street, Hunghom, Kowloon, Hong Kong.
Affiliated/Associated
Companies:-
Ace Carat Trading Co., Hong Kong.
Aspeco NV, Belgium.
BLH-KG Diamonds (China) Co. Ltd., China.
Diamantina S.A., Luxembourg.
K. Girdharlal Diamonds (India) Pvt. Ltd., India.
K. Girdharlal DMCC, UAE.
K. Girdharlal Inc., USA.
K. Girdharlal International Pvt. Ltd., India.
K. Girdharlal, India.
Lidya BLH (HK) Co. Ltd., Hong Kong. (Same address)
Pal Impex Company, Hong Kong. (Same address)
30774948
0706922
Managing Director:
Mr. Vinodkumar Gautamlal Shah
Contact Person: Mr. Anthony Yim
Nominal Share Capital: US$2,000,000.00 (Divided into
295,000 Ordinary shares and 1,705,000 Preference shares of US$1.00 each)
Issued Share Capital: US$2,000,000.00
(As per registry
dated 06-03-2014)
|
Name |
|
No. of shares |
|
|
|
|
Ordinary |
Preference |
|
K. Girdharlal Diamonds (India) Pvt. Ltd. 1003, Panchratna, M.P. Marg, Opera House,
Mumbai-400004, India. |
|
249,999 |
- |
|
Vinodkumar Gautamlal SHAH |
|
1 |
- |
|
K. Girdharlal 1003, Panchratna, M.P. Marg, Opera House,
Mumbai-400004, India. |
|
- |
1,450,000 |
|
Diamantina S.A. L-1325, 1 Rue de la Chapelia, Luxembourg. |
|
45,000 |
255,000 |
|
|
|
––––––– |
–––––––– |
|
|
Total: |
295,000 ====== |
1,705,000 ======= |
(As per registry
dated 06-03-2014)
|
Name (Nationality) |
Address |
|
Vinodkumar Gautamlal SHAH |
2, Bhaswan Building, 247 Walkeshwar Road,
Mumbai-400006, India. |
(As per registry
dated 06-03-2014)
|
Name |
Address |
Co. No. |
|
Taxbase Consultants Ltd. |
Room 1408, 14/F., Hollywood Plaza, 610 Nathan Road,
Kowloon, Hong Kong. |
0411324 |
The subject was incorporated on 6th March, 2000 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 diamonds, precious stones, etc.
Employees: 6. (Including associates)
Commodities Imported: India,
other Asian countries, Belgium, etc.
Markets: Singapore,
Thailand, Taiwan, other Southeast Asian countries, US, Belgium, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal
Share Capital: US$2,000,000.00 (Divided
into 295,000 Ordinary shares and 1,705,000 Preference shares of US$1.00 each)
Issued Share Capital: US$2,000,000.00
Mortgage or Charge:
(See attachment)
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 as contracted.
Commercial Morality:
Satisfactory.
Bankers:-
Hang Seng
Bank Ltd., Hong Kong.
ABN AMRO
Bank N.V., Hong Kong Branch.
Standing: Very Good.
K. Girdharlal (Hong
Kong) Ltd. is 12.5% owned by K. Girdharlal Diamonds (India) Pvt. Ltd. which is
an India-based firm. The subject is
chiefly owned by K. Girdharlal [KG], also an India firm holding 72.5%; the
balance 15.0% is held by Diamantina S.A., a Luxembourg-based firm.
The subject is a
diamond and gemstone trader. It has got
an affiliated company in Hong Kong known as Pal Impex Company which is also a
diamond trader. The subject is chiefly
owned and operated by the Shah family.
The subject has had a
main affiliated company Lidya BLH (HK) Co. Ltd. [Lidya] located at its
operating address. Lidya is also owned
and operated by the Shah family.
Currently, the
subject is trading in the following significant products:-
· All Kinds of Loose Diamonds, Carat-Size Diamond, Certificated Diamond, Diamond Studded Bangle, Loose Diamonds & Single Diamond, etc.
According to the subject, its single diamonds are
high-end products in different shapes and colours.
The subject is an
associate of a major diamond-manufacturing group in Mumbai in India — K.
Girdharlal International Pvt. Ltd. [KGIP] — which is a sightholder of the
Diamond Trading Company. In about 2001,
KGIP in India took the initiative in diversifying into jewellery manufacturing
and exporting its jewellery products.
Now, KGIP is engaged in manufacturing all kinds of cut and polished
diamonds while its products have been exported to worldwide countries,
especially Southeast Asia.
The subject is a member of K. Girdharlal Group.
KGIP is also one of the largest Indian exporters of
polished diamonds. It is renowned for
fancy cut diamonds in particular, but also has a repertoire of polished
diamonds to offer, from 0.01¢ to 5.00¢ in round, ideal and hearts and arrows.
Another firm belongs to the KG Group known as KG is also
significant. Based in Surat, India, KG
was formed in the mid-60s and has adopted the present style since 1967.
Over the past four decades, KG has established a presence
throughout the diamond value chain: rough sourcing, cutting and polishing,
polished trading, jewellery manufacturing and haute joaillerie.
KG employs over 2,500
people worldwide and has a distribution network that covers every diamond
consuming market: Antwerp (Europe), Dubai (the Middle East), Hong Kong (Asia
Pacific Region), Mumbai (India), New York (Americas), and Shanghai (Mainland
China).
The subject exports
its products to the Asian countries and has formed a strategic alliance with a
well-established diamond wholesaler in China.
Sales offices have been set up in Shenzhen Special Economic Zone,
Shanghai and Beijing.
The subject is
supplying diamonds of fine make, which include quite substantial quantities of
hearts-and-arrows diamonds, to its customers regularly. Prime markets are the Greater China region,
Singapore, Malaysia and Indonesia.
Business is rather active.
The annual sales
turnover of the KG Group is very significant.
The Group is not only
one of the largest manufacturers by carat volume but also is one of the largest
firms in sales turnover.
The subject is
supported by KG Group and ultimately by the Shah family. The CEO of KGIP is Kishorlal Shah.
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 Jewellery Show 2015” which will be held in Hong
Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of
5th to 9th March, 2015.
The subject is fully
supported by the K. Girdharlal Group.
The contact person of
the subject Mr. Anthony Yim is a Hongkongnese.
The subject owns premises in Hong Kong.
As the history of the subject in Hong Kong is over
fifteen years, on the whole, consider it good for normal business engagements.
Property information
of the company:-
1. Property
Location: Flat B on 18/F. of Block
7, Parc Palais, 18 Wylie Road, Kowloon, Hong Kong.
Owner: K.
Girdharlal (Hong Kong) Ltd.
Date of Purchase:
n.a.
Purchased Price:
n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
07-07-2006 |
HK$5,740,000 |
Hang Seng Bank Ltd., Hong Kong. |
Legal charge to secure general banking facilities |
2. Property
Location: Flat C on 18/F. of Block
7, Parc Palais, 18 Wylie Road, Kowloon, Hong Kong.
Owner: K.
Girdharlal (Hong Kong) Ltd.
Date of Purchase:
n.a.
Purchased Price:
n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
27-06-2006 |
HK$5,789,000 |
Hang Seng Bank Ltd., Hong Kong. |
Legal charge to secure general banking facilities |
|
Date |
Particulars |
Amount |
|
27-06-2006 |
Instrument: Legal Charge Property: 194/341,874th parts or shares of and in Kowloon Inland
Lot No. 11118 (Flat C on 18/F. of Block 7 of Parc Palais, 18 Wylie Road,
Kowloon, Hong Kong.) Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
HK$5,789,000 |
|
07-07-2006 |
Instrument: Legal Charge Property: 181/341,874th parts or shares of and in Kowloon Inland
Lot No. 11118 (Flat B on 18/F. of Block 7 of Parc Palais, 18 Wylie Road,
Kowloon, Hong Kong.) Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
HK$5,740,000 |
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.64.17 |
|
|
1 |
Rs.99.85 |
|
Euro |
1 |
Rs.70.35 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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 |
|
|
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.