MIRA INFORM REPORT

 

 

Report No. :

328033

Report Date :

20.06.2015

 

IDENTIFICATION DETAILS

 

Name :

PURITY (H.K.) COMPANY LIMITED

 

 

Registered Office :

Flat B, 8th Floor, Valiant Commercial Building, No.22-24 Prat Avenue, Tsim Shat Sui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

21.05.2008

 

 

Com. Reg. No.:

1239724

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Trading of diamonds.

 

 

No. of Employee :

About 5 Employees

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

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 12.5% 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

 

Contact Points

 

Company Name (in English):

Purity (H.K.) Company Limited

Supplied Name:

PURITY [HK] COMPANY LTD.

Trading Address:

Flat B, 8th Floor, Valiant Commercial Building, No.22-24 Prat Avenue, Tsim Shat Sui, Kowloon, Hong Kong

Supplied Address:

FLAT NO- 8/F, 8TH VALIANT COMMERCIAL BLDG, NO.22-24. PRAT AVENUE, TSIM SHA TSUI, KOWLOON,HONGKONG

Note: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

PURITY (H.K.) COMPANY LIMITED

Registered Address:

Flat B, 8th Floor, Valiant Commercial Building, No.22-24 Prat Avenue, Tsim Shat Sui, Kowloon, Hong Kong

Telephone Number:

+852-2739-1233

Fax Number:

+852-2739-1033

E-mail:

purityhk@biznetvigator.com

Date of Registration:

2008-5-21

Registered Number:

1239724

Business Registration No.:

39327976

Paid-up Capital:

HKD 10,000,000 (USD 1,290,000) = 10,000,000 Shares @ HKD 1

(As of 2015.5, 1 HKD = 0.129 USD)

Legal Form:

Private Limited Liability Company

SITC Code:

66729--Diamonds, non-industrial, otherwise worked, but not mounted or set (cm)

Principal Activities:

Trading of diamonds

Staff:

About 5 Employees

Listed at Stock Exchange:

No

Date of Last Annual Return:

2015-5-21

 

 

History

 

Subject was incorporated on 2008-5-21 with the registered number 1239724 as Private Limited Liability Company in Hong Kong.

 

 

Shareholders

 

Name

Subscription Shares

Proportion of Investment (%)

Kothari Anil Kumar

7,500,000

75%

Golchha Rajesh

1,250,000

12.5%

Shrishrimal Naineesh

1,250,000

12.5%

Total

10,000,000

100%

 

Major Shareholder Information:

1

Name:

Kothari Anil Kumar

Address:

Flat C, Block 2, 32nd Floor, Royal Peninsula, Hung Hong, Kowloon, Hong Kong

2

Name:

Golchha Rajesh

Address:

Flat B, 10th Floor, Wing Lock Hse, 14-16 Peking Road, T.S.T. Kowloon, Hong Kong

3

Name:

Shrishrimal Naineesh

Address:

45-127, Su Maan, Complex, Sadar Bazaar, Paipur-492 001, CG, India

 

 

Management Information

 

Core Management

 

Detailed Information of Directors:

1

Name:

Kothari Anil Kumar

Address:

Flat C, Block 2, 32nd Floor, Royal Peninsula, Hung Hong, Kowloon, Hong Kong

Position:

Director

ID Number:

M311980(2)

2

Name:

Golchha Rajesh

Address:

Flat B, 10th Floor, Wing Lock Hse, 14-16 Peking Road, T.S.T. Kowloon, Hong Kong

Position:

Director

ID Number:

R693711(9)

3

Name:

Hashmi Secretarial Services Limited

Address:

Unit B, 3rd Floor, Chun Wan Commercial Building, No. 30 Minden Avenue, T.S.T Kowloon, Hong Kong

Position:

Corporate Secretary

Registered Number:

770656

E-mail:

hashmi@netvigator.com

 

Personnel Structure

 

Total Employees

About 5 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Office

Address:

Flat B, 8th Floor, Valiant Commercial Building, No.22-24 Prat Avenue, Tsim Shat Sui, Kowloon, Hong Kong

 

Premises Information

 

Office address:

Address:

Office B On 8/F, Valiant Commercial Building, Nos.22-24 Prat Avenue Kowloon

Owners:

Anil Kumar Kothari

Memorial Number:

11051700630215
Assignment

Date of Instrument:

2011-5-4

Date of Registration:

2011-5-17

Consideration Value:

HKD 7,111,111.00

 

History of Premises Owners’

 

1

Memorial No.:

11051700630222

Date of Instrument:

2011-5-4

Date of Registration:

2011-5-17

Nature:

Mortgage

In Favor of:

Industrial and Commercial Bank Of China (Asia) Limited

Consideration:

All monies

2

Memorial No.:

10112400790134

Date of Instrument:

2010-10-18

Date of Registration:

2010-11-24

Nature:

Provisional agreement for sale and purchase

Remarks: See assignment mem. no. 11051700630215

In Favor of:

Anil Kumar Kothari

Consideration:

HKD 7,111,111.00

3

Memorial No.:

06040601090067

Date of Instrument:

2006-3-31

Date of Registration:

2006-4-6

Nature:

Agreement for sale and purchase

Remarks: See assignment mem. no. 06051500970044

In Favor of:

Banthia Virendra

Consideration:

HKD 4,382,000.00

 

Production Information

 

Subject is engaged in trading of diamonds, etc. without any production activities.

 

Purchase Information

 

The products sold by the subject are manly imported from India.

 

Sales Information

 

The subject is mainly sales of diamonds

Subject’s major products include fine diamonds, faceted tanzanite, tanzanite stone, tsavorite stone, blue tanzanite, red tourmaline and pink tourmaline

The Major Sales regions of the subject are domestic market, Japan, Korea, Southeast Asia, USA, Europe.

Subject’s major customers are manufacturers and designers of watches and jewelry

 

 

Settlements

 

Purchase

 

Domestic Purchase

 

Subject has little domestic purchase.

 

Import

Products

Diamonds

Payment Terms

L/C, T/T

 

Sales

 

Domestic Markets

Products

Diamonds

Payment Terms

T/T, Cash

 

Export

Products

Diamonds

Payment Terms

L/C, T/T

 

 

Financial Information

 

The subject has no obligation to supply its financial statement to the third party according to the relevant policy in Hong Kong and the only source from which we can obtain the information is the subject itself.

Subject’s relevant staff declined to disclose the financial information, from other resources we can not find it, either.

 

 

Bankers

 

Subject declined to disclose its bank details; from other source we cannot obtain the relevant information, either.

 

 

Public

 

Civil Litigation

 

1

Date:

2013-4-23

Court Name:

Magistrates' Courts

Court No.:

KTS18508

Claimant:

KTS18508/2012

Defendant:

Purity (H.K.) Company Limited

Reason:

Failing to take out insurance policy for employees

(Exparte Hearing/Order)

2

Date:

2014-2-7

Court Name:

High Court Civil Action

Court No.:

217

Claimant:

Purity (H.K.) Co Ltd

c/o

Li, Chow & Co

(a firm)

(HCA)

Defendant:

IBO Jewelry Co Ltd

c/o

Room 607, Tak Shing House, 20 Des Voeux Road, Central, HK

Reason:

Goods sold and delivered

Amount (HKD):

1,237,409.55

 

 

Interview Details

 

Name:

The Operator

 

 

Industry Information

 

66729--Diamonds, non-industrial, otherwise worked, but not mounted or set (cm)

 

Unit: HKD/000

 

 

2014.12

2014.01~2014.12

 

Quantity

Value

Quantity

Value

Imports

United Arab Emirates

113,655

854,839

1,452,417

10,085,815

Brazil

33

1,437

174

5,836

Australia

2,033

41,188

10,332

181,710

Belgium

81,093

1,198,674

1,070,230

181,710

Germany

154

614

18,279

80,845

Canada

202

1,578

7,643

104,109

Switzerland

5,866

161,374

56,112

1,665,846

Japan

36,378

286,671

497,269

3,174,371

Thailand

65,194

243,239

657,318

3,002,179

India

765,990

3,982,962

12,544,931

64,883,740

The Mainland of China

117,833

912,624

1,337,780

10,148,553

Exports

United Arab Emirates

--

--

54

4,421

Israel

61

10,875

153

38,772

Japan

--

--

3

116

Thailand

--

--

422

1,865

USA

140

2,916

2,982

55,371

Belgium

2

74

463

70,594

Singapore

--

--

28

4,990

The Mainland of China

186

496

4,894

15,396

 

External Trade Information:

 

External Merchandise Trade Aggregate Figures

Unit: HKD/ Million

 

Imports

Domestic Exports

Re-exports

Total exports

Year-on-year % change of Total exports

Merchandise trade balance

2012

3,912,163

58,830

3,375,516

3,434,346

+2.9

-477,817

2013

4,060,717

54,364

3,505,322

3,559,686

+3.6

-501,031

2014

4,219,046

55,283

3,617,468

3,672,751

+3.2

-546,295

2013.11

370,104

4,587

320,935

325,522

+5.8

-44,581

2013.12

365,228

4,596

306,281

310,877

0.0

-54,351

2014.01

323,436

4,299

299,157

303,456

-0.4

-19,979

2014.02

266,587

3,276

209,638

212,914

-1.3

-53,673

2014.03

351,889

5,120

296,403

301,523

+3.4

-50,365

2014.04

340,972

4,867

280,816

285,682

-1.6

-55,290

2014.05

348,323

5,299

300,673

305,973

+4.9

-42,350

2014.06

352,316

4,802

304,409

309,211

+11.4

-43,105

2014.07

368,293

5,120

321,040

326,160

+6.8

-42,132

2014.08

358,750

5,289

321,937

327,225

+6.4

-31,525

2014.09

382,355

4,153

327,833

331,986

+4.5

-50,369

2014.10

381,569

4,392

327,335

331,727

+2.7

-49,842

2014.11

378,946

4,701

322,082

326,783

+0.4

-52,163

2014.12

372,007

4,050

308,705

312,755

+0.6

-59,253

 

*Total exports figures have been rounded to the nearest final digit after summing up the constituent trade figures.

 

 

Attachment

 

Valiant Commercial Building, No.22-24 Prat Avenue, Tsim Shat Sui, Kowloon, Hong Kong

 

IMG_3

 

Flat B, 8th Floor, Valiant Commercial Building, No.22-24 Prat Avenue, Tsim Shat Sui, Kowloon, Hong Kong

 

IMG_2

 

Flat B, 8th Floor, Valiant Commercial Building, No.22-24 Prat Avenue, Tsim Shat Sui, Kowloon, Hong Kong

 

IMG_1

 

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.63.82

UK Pound

1

Rs.101.26

Euro

1

Rs.72.36

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ANK

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.