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Report Date : |
02.01.2015 |
IDENTIFICATION DETAILS
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Name : |
RELIANCE TRADES |
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Registered Office : |
Flat A4, 6/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
09.02.1981 |
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Com. Reg. No.: |
07053042-000-02 |
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Legal Form : |
Partnership Concern |
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Line of Business : |
· Importer, Exporter and Wholesaler of Polished and Cut Diamond. ·
Subject also trades
in Alexandrite, Emerald, Precious Stones, Ruby Jade, Gem Sets, Semi-Precious
Stones, Blue or Coloured Sapphire & Tanzanite. 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). |
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No. of Employees : |
03 (Including associates) |
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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 |
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
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. 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 concern 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 concern 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
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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-concern 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.63.32 |
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|
1 |
Rs.98.64 |
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Euro |
1 |
Rs.76.60 |
INFORMATION DETAILS
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Analysis Done by
: |
SUM |
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Report Prepared
by : |
MNL |
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.