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Report No. : |
337193 |
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Report Date : |
19.08.2015 |
IDENTIFICATION DETAILS
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Name : |
H. D. IMPEX |
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Registered Office : |
Flat E, 10/F., South Sea Mansion, 81 Chatham Road,
Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
06.05.2005 |
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Com. Reg. No.: |
35595080-000-05 |
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Legal Form : |
Partnership. |
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Line of Business : |
Importer, Exporter and Wholesaler all kinds of Diamonds |
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No. of Employees : |
1 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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 12.5% of total system deposits in Hong Kong by the end of 2014. 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 47.3 million in 2014, 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 2014 mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% 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 4.4% in 2014. 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 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies.
|
Source
: CIA |
H. D.
IMPEX
ADDRESS: Flat
E, 10/F., South Sea Mansion, 81 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2317
6200
FAX: 852-2317
6600
E-MAIL: hdimpex@live.com
MANAGEMENT:
Manager: Mr.
Hareshkumar Rhjmalbhai Shah
Establishment: 6th
May, 2005.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Diamond
Trader.
Annual Turnover: HK$70~80 million.
Employee: 1.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Flat E, 10/F., South Sea Mansion, 81 Chatham Road,
Tsimshatsui, Kowloon, Hong Kong.
China Factory:-
H. D. Impex Jewellery Factory
Shenzhen Special Economic Zone, China.
[Fax: 86-755-2547 0032]
Associated Companies:-
H. Diam HK Ltd.
Room 1404, 14/F., Golden Dragon Centre, 38-40 Cameron
Road, Tsimshatsui, Kowloon, Hong Kong.
H.D. Impex (Shanghai) Ltd., China.
35595080-000-05
Manager: Mr.
Hareshkumar Rhjmalbhai Shah
(Hong Kong Mobile: 852-6127 6882)
Name: Mr. Hareshkumar
Rhjmalbhai SHAH
Residential Address: Flat
D, 7/F., Luxury Court, 9 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong.
Name: Mr. Pritesh Nandkumar
MISTRY
Residential Address: Flat
D, 7/F., Luxury Court, 9 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong.
The subject was
established on 6th May, 2005 as a partnership concern jointly owned by Mr.
Hareshkumar Rhjmalbhai Shah and Mr. Pritesh Nandkumar Mistry under the Hong
Kong Business Registration Regulations.
On 6th July, 2007, Mr. Dinesh Dhanjibhai Italiya joined in as a
partner making up three in total.
However, the last retired on 15th July, 2011.
At the very
beginning, the subject was located at Flat D, 7/F., Luxury Court, 9 Hau
Fook Street, Tsimshatsui, Kowloon, Hong Kong, moved to Room 1811, 18/F.,
Rise Commercial Building, 5-11 Granville Circuit, Tsimshatsui, Kowloon, Hong
Kong in July 2007; moved to Flat A, 7/F., Shun Fai Building, 64-66A Kimberley
Road, Tsimshatsui, Kowloon, Hong Kong in July 2008; and further to Room H,
13/F., Block E, Phase 1, Golden Lion Garden, 1-3 Kak Tin Street, Shatin, New
Territories, Hong Kong where was the subject’s operating address in 2009. However, its registered address was still
located at Flat A, 7/F., Shun Fai Building, 64-66A Kimberley Road, Tsimshatsui,
Kowloon, Hong Kong. The subject moved to
Flat 9A, 9/F., Ka Wing Building, 27 Granville Road, Tsimshatsui, Kowloon, Hong
Kong in May 2010 and further to the present address in April 2011.
Apart from these,
neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All
kinds of Diamonds
Employee: 1.
Commodities Imported: India,
Belgium and other European countries.
Markets: Japan,
Southeast Asia, Europe, Middle East
Annual Turnover: HK$70~80
million.
Terms/Sales: CAD, L/C, T/T.
Terms/Buying: L/C, T/T, D/P
Capital: Not
disclosed.
Profit or Loss: Making
a small profit in the past years.
Condition: Business is steady.
Facilities: Making rather active use of
general banking facilities.
Payment: Met trade commitments as
contracted.
Commercial Morality:
Satisfactory.
Banker: The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
H. D. Impex is a partnership
jointly owned by two Indian: Mr. Hareshkumar Rhjmalbhai Shah and Mr. Pritesh
Nandkumar Mistry. The latter is a HK ID
Card holder and has got the right to reside in Hong Kong permanently.
The subject’s latest
operating address is located at Flat E, 10/F., South Sea Mansion, 81 Chatham
Road, Tsimshatsui, Kowloon, Hong Kong where is the residence of the Indian
partners. This is also the new
residential address of the two partners.
They moved to this new address in April 2011.
Business commenced in
May 2005, the subject is a diamond importer, exporter and wholesaler. It is trading in loose diamonds, emerald,
precious stones, ruby jade, gem sets, semi-precious stones, blue or coloured
sapphire, Tanzanite. Most of the
products are imported from India.
Finished products and polished diamonds are marketed in Hong Kong, China
and exported or re-exported to Japan, India, other Asian countries, the Middle
East, the United States.
The manager of the
subject, Hareshkumar Rhjmalbhai Shah can be reached at his China mobile phone
number 86-13143455759 or Hong Kong mobile phone number 852‑6127 6882
while Pritesh Nandkumar Mistry can be reached at his Hong Kong mobile phone
number 852-6127 6614.
According to
Hareshkumar Rhjmalbhai Shah, the subject has got an associated factory in
Shenzhen Special Economic Zone, China known as H. D. Impex Jewellery
Factory. The factory is employing about
70 persons. Most of the time Hareshkumar
Rhjmalbhai Shah is stationing at his China factory.
The subject is
exporting the products of the China factory while raw materials are imported
from India. The annual sales turnover of the subject ranges from HK$70 to 80
million. Making a small profit every
year. Business is steady.
Besides operating the
subject, Pritesh Nandkumar Mistry is also the sole shareholder of H. Diam HK
Ltd. which is located at a different address.
Incorporated on 9th June, 2010, H. Diam HK Ltd. is also a loose diamond
trader.
In order to penetrate
the international market further, H. Diam HK Ltd. 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 2016” which will
be held in Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the period
of 1st to 5th March, 2016. Its booth No.
is AWE 5-G07.
The history of the
subject in Hong Kong is over ten years and three months. Business is chiefly handled by the two
partners. They have got regular
suppliers in India and customers in Asia.
On the whole,
consider the subject good for normal business engagements in moderate credit
amounts.
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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.65.22 |
|
UK Pound |
1 |
Rs.102.23 |
|
Euro |
1 |
Rs.72.39 |
INFORMATION DETAILS
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Analysis Done by
: |
KIN |
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Report Prepared
by : |
TRU |
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.