MIRA INFORM REPORT
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Report No. : |
327081 |
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Report Date : |
15.06.2015 |
IDENTIFICATION DETAILS
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Name : |
VRITI DIAM (HK) LTD. |
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Registered Office : |
Flat B, 12/F., Granville House, 41C & 41D Granville Road,
Tsimshatsui, Kowloon |
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Country : |
Hong Kong. |
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Date of Incorporation : |
27.03.2008 |
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Com. Reg. No.: |
39087350 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Exporter of All kinds of loose diamonds. |
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No. of Employee : |
2. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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%20LTD.%20-%20327081%2015-Jun-2015_files/image006.gif){kind=small}
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 |
Company
name and address
VRITI DIAM (HK) LTD.
ADDRESS: Flat B, 12/F., Granville
House, 41C & 41D Granville Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-3116 7601
FAX: 852-3116 7602
E-MAIL: vriti_diam@yahoo.co.in
MANAGEMENT
Managing Director: Mr. Bhavesh Narasi
Patel
SUMMARY
Incorporated on: 27th March, 2008.
Organization: Private Limited
Company.
Issued Share Capital: HK$3,000,000.00
Business Category: Loose
Diamond Trader.
Annual Turnover: HK$110-150
million.
Employees: 2.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
ADDRESS
Registered Head
Office:-
Flat B, 12/F., Granville House, 41C & 41D Granville Road,
Tsimshatsui, Kowloon, Hong Kong.
Associated
Company:-
Vriti Diam
Flat A, 6/F., Hang Lung Bank Building, 46-48 Granville Road, Tsimshatsui,
Kowloon, Hong Kong.
[Solely owned by Mr. Bhavesh Narasi Patel]
BUSINESS
REGISTRATION NUMBER
39087350
COMPANY
FILE NUMBER
1220672
MANAGEMENT
Managing Director: Mr. Bhavesh
Narasi Patel
(Hong Kong Mobile: 852-6629 4412)
General Manager: Mr. Rajesh
Tokarawat
ISSUED
SHRAE CAPITAL
HK$3,000,000.00
SHAREHOLDER
(As per registry dated 27-03-2014)
|
Name |
|
No. of shares |
|
Bhavesh Narasi PATEL |
|
3,000,000 ======= |
DIRECTORS
(As per registry dated 23-06-2014)
|
Name (Nationality) |
Address |
|
Bhavesh Narasi PATEL |
Flat A, 6/F., Hang Lung Bank Building, 46-48 Granville Road,
Tsimshatsui, Kowloon, Hong Kong. |
|
Bharatkumar Babubhai VEKARIYA |
C-50, Purvi Nagar Society, Opp. Hirabaug, Varachha Road, Surat 395006,
Gujarat State, India. |
SECRETARY
(As per registry dated 27-03-2014)
|
Name |
Address |
|
Bayani Divino Bautista PONCE |
Flat A, 8/F., Tower 5, Caribbean Coast, 2 Kin Tung Road, Tung Chung,
Lantau Island, Hong Kong. |
HISTORY
The subject was incorporated on 27th March, 2008 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at M29, 2/F., Phase 3, Kaiser Estate, 9‑11A Hok
Yuen Street, Hunghom, Kowloon, Hong Kong, moved to Room 404, 4/F., Block
B, Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong
Kong in March 2009, to Flat B, 12/F., Granville House, 41C & 41D Granville
Road, Tsimshatsui, Kowloon, Hong Kong in 2010, to Room 1711, 17/F., Rise Commercial
Building, 5‑11 Granville Circuit, Tsimshatsui, Kowloon, Hong Kong
with effect from 1st April, 2011. It
moved back to Granville House in late 2011.
The subject increased its issued share capital to HK$3 million on
20th January, 2014.
Apart from these, neither material change nor amendment has been ever
traced and noted.
OPERATIONS
Activities: Importer and
Exporter.
Lines: All kinds of loose
diamonds
Employees: 2.
Commodities Imported: India, other
Asian countries, Europe
Markets: Hong Kong, India,
China, other Asian countries
Annual Turnover: HK$110-150 million
Terms/Sales: COD, L/C, T/T,
D/A, or 150 days
Terms/Buying: L/C, T/T, or 120
to 150 days
FINANCIAL
INFORMATION
Issued Share Capital: HK$3,000,000.00
Mortgage or Charge: (See attachment)
Annual Net Profit: HK$1.0
- 1.5 million
Profit or Loss: Making
a small profit in past years.
Condition: Business
is active.
Facilities: Adequate
for current running.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Very Good.
GENERAL
Having issued 3 million ordinary shares of HK$1.00 each, Vriti Diam (HK)
Ltd. is wholly-owned by Mr. Bhavesh Narasi Patel [B. N. Patel] who is an
Indian. B. N. Patel resided in Mumbai,
India and now he has moved to Hong Kong.
He is a Hong Kong ID Card holder and has got the right to reside in Hong
Kong permanently. B. N. Patel can be
reached at his Hong Kong mobile phone number 852-6629 4412.
The subject moved back to the former address in late 2011. It has had an associated company Vriti Diam,
a Hong Kong-registered firm located at its operating address. Both firms are under the same management.
Currently, the subject has had two employees, namely, Mr. Mahesh Gajara
and Mr. Bharat Kadakia. Both of them are
Indian.
The subject’s director B. N. Patel is also the sole proprietor of Vriti
Diam. The subject and Vriti Diam are
engaged in the same lines of business.
The subject is a loose diamond trader.
It is trading in white, LC and all size of loose diamonds form 0.01 cts
to 1.00 cts. Raw materials, polished and
cut diamonds are imported from India, and other European countries, etc. Some of the raw diamonds are polished or
processed in Hong Kong. Finished
products and polished diamonds are exported to India, China, other Asian
countries,
In 2012, the subject’s turnover amounted to HK$110 million (2011:
HK$99.8 million), net profit for the year was HK$0.8 million (2011:
HK$0.5 million). Profit margins
were low in the years.
Now, the annual sales turnover of the subject ranges from HK$110 to
150 million.
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 2016”
which will be held in Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the
period of 2nd to 6th March, 2016. Its
booth No. is AWE 5-H07.
B. N. Patel is also a diamond businessman. In India, he has got business ties with a
number of diamond manufacturers and traders.
The history of the subject is over seven years in Hong Kong.
Supported by the Patel family, on the whole, the subject is considered
good for normal business engagements.
MORTGAGE
OR CHARGE
|
Date |
Particulars |
Amount |
|
30-08-2011 |
Instrument: Mortgage Property: 2/94th parts or shares of and in Section A of Kowloon Inland Lot No.
7603 and The Remaining Portion of Kowloon Inland Lot No. 7603 (Flat B on
12/F. of Granville House, Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
All moneys |
|
08-04-2013 |
Instrument: Security Over Deposits with the Bank
Limited Company - Under Seal Property: Initially HK$1,300,000 or equivalent and all monies whether now or
hereafter standing to the credit of the company’s deposit with the Bank under
deposit No. 817-357593 & whatever currency it may subsequently be
denominated in, any renewal of such deposit & the interest thereon
together with any further moneys in any deposit account with the Bank at any of
its offices. Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
To secure all monies in respect of banking facilities owing at any
time plus interest and all expenses |
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.64.03 |
|
|
1 |
Rs.99.27 |
|
Euro |
1 |
Rs.71.90 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
TPT |
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 |
|
|
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 |
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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.