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Report No. : |
344398 |
|
Report Date : |
15.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
VARNIRAJ EXPORTS LTD. |
|
|
|
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Registered Office : |
Room 305, 3/F., Chevalier House, 45-51 Chatham Road South,
Tsimshatsui, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
17.05.2007 |
|
|
|
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Com. Reg. No.: |
37966566 |
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|
|
|
Legal Form : |
Private Limited Company |
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|
|
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Line of Business : |
Supplier, Importer and Exporter of All kinds of diamonds. |
|
|
|
|
No. of Employee : |
5. (Including associate) |
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 |
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|
|
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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) |
|
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 |
Your “8A, 8/F., Hang Wan Building,
42-44 Granville Road, Tsimshatsui, Kowloon, Hong Kong” is in a residential
building. We are not sure whether the
subject is also located at this address.
Please note the spelling of ‘Hang Wan’.
VARNIRAJ EXPORTS LTD.
ADDRESS: Room
305, 3/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon,
Hong Kong.
PHONE: 852-2866
6627, 2311 9192
FAX: 852-2723 2290
E-MAIL: info@viraniexports.com
MANAGEMENT:
Managing Director: Mr. Mukundkumar Ranchhodbhai Virani
Incorporated on: 17th May, 2007.
Organization: Private Limited
Company.
Issued Share Capital: HK$1,600,000.00
Business Category: Diamond Trader.
Employees:
5.
(Including associate)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered
Head Office:-
Room 305, 3/F., Chevalier House, 45-51
Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
Associated
Companies:-
Akshar Diam HK Ltd., Hong Kong. (Same address)
Virani Exports Ltd., India.
37966566
1133613
Managing Director: Mr. Mukundkumar Ranchhodbhai Virani
Contact Person: Mr. Sinh
HK$1,600,000.00
(As per registry dated 17-05-2015)
|
Name |
|
No. of shares |
|
Mukundkumar Ranchhodbhai VIRANI |
|
1,600,000 ======= |
(As per registry dated 17-05-2015)
|
Name (Nationality) |
Address |
|
Mukundkumar Ranchhodbhai VIRANI |
65/66, Gopinath Society 2, Kantareshwar
Mandir, Katargam, Surat-395004, India. |
(As per registry dated 17-05-2015)
|
Name |
Address |
Co. No. |
|
Lodestar Secretaries Ltd. |
13/F., Wah Kit Commercial Centre, 302 Des
Voeux Road Central, Hong Kong. |
0113023 |
The subject was incorporated on 17th May,
2007 as a private limited liability company under the Hong Kong Companies
Ordinance.
Initially the subject’s registered office
was located at Unit A, 8/F., Kam Chung Commercial Building, 19-21 Hennessy
Road, Wanchai, Hong Kong where is the operating office of CBS Pacific
Ltd., moved to Room 602, 6/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui,
Kowloon, Hong Kong with effect from 22nd December, 2009, and further moved to
the present address in October 2010.
Apart from these, neither material change
nor amendment has been ever traced and noted.
Activities: Supplier, Importer
and Exporter.
Lines: All kinds of
diamonds
Employees: 5. (Including associate)
Commodities Imported: India, Europe, other Asian countries
Markets: Hong Kong, China,
other Asian countries, Middle East.
Terms/Sales:
CAD, L/C, T/T
Terms/Buying: L/C, T/T, D/P
Issued Share Capital: HK$1,600,000.00
Mortgage or Charge: (See attachment)
Profit or Loss: Made small profits in past four years.
Condition: Business is
normal.
Facilities: Making active use
of general banking facilities.
Payment:
Slow but Correct.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Dah Sing Bank Ltd., Hong Kong.
Hang Seng Bank Ltd., Hong Kong.
Industrial & Commercial Bank of China
(Asia) Ltd., Hong Kong.
Standing:
Normal.
Varniraj Exports Ltd. was incorporated in
May, 2007 as a private limited liability company.
The subject has issued 1.6 million ordinary
shares of HK$1.00 each which are wholly owned by Mr. Mukundkumar Ranchhodbhai
Virani who is an India merchant.
Formerly the subject had just issued 100,000
ordinary shares of HK$1.00 each which were wholly-owned by Mr.
Parshottambhai Naranbhai Virani who was also an Indian. Parshottambhai Naranbhai Virani transferred
his shares to Mukundkumar Ranchhodbhai Virani and the subject has increased its
ordinary shares to the present number.
On 27th April, 2010, Mukundkumar
Ranchhodbhai Virani was appointed the new director of the subject to take the
place Parshottambhai Naranbhai Virani.
The subject is a diamond trader. Owned by the Virani family, the subject has
got an associated firm Virani Exports Ltd. [Virani] which is also a diamond
manufacturer in Surat, India. Virani is
supplying its worldwide customers with loose, polished and cut diamonds under
the name of the subject.
Besides, the subject has had an associated
company Akshar Diam HK Ltd. [Akshar Diam] located at the same address. Akshar Diam is wholly-owned by Harikrushna
Karsanbhai Virani. Incorporated in July
2010, Akshar Diam is also a diamond importer, exporter and wholesaler.
Virani has been exporting a wide range of
exquisite diamonds since 1971.
It is trading in diamonds like Round, Princess, Marquise, Pear,
Heart, Emerald, Cushion and Fancy shapes in all sizes and colours. It is pioneers in Colour D to K Diamonds and
Quality pk to vvs Diamonds. Its
manufacturing unit is based out of Surat, India which is the Diamond Hub of
India as well as the world. It has set
up its offices in Mumbai and New Delhi of India.
The subject is the supplier, importer and
exporter of versatile range of loose diamonds in a wide variety like rose cut
diamonds, rose cut heart, rose cut round, rose cut pears, rose cut oval, rose
cut marquise, fancy cut and fancy colour diamonds, etc. Its significant products are polished white
and coloured diamonds, loose diamonds, etc.
Prime markets are Hong Kong, China, Taiwan, Malaysia, Singapore,
the Philippines, Vietnam, Thailand, Japan, Australia, Israel, Belgium, the
Middle East, the United States, India, Italy, etc. Overall business is normal.
According to the subject, it is able to
fulfil the requirements of its customers.
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 7-C23.
The contact person of the subject is a Mr.
Sinh who is also an Indian.
The subject operates from its own office in
Hong Kong.
The history of the subject in Hong Kong is
over eight years and four months. On the
whole, consider it good for normal business engagements.
Property
information of the company:-
1. Property
Location: Unit 5, 3/F., Chevalier
House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
Owner: Varniraj
Exports Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
27-05-2013 |
- |
Industrial & Commercial Bank of China
(Asia) Ltd., Hong Kong. |
Mortgage |
2. Property
Location: Flat A on 10/F., Windsor
Mansion (formerly known as Union Mansion), 33-35 Chatham Road, Tsimshatsui,
Kowloon, Hong Kong.
Owner: Varniraj
Exports Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
27-05-2013 |
- |
Industrial & Commercial Bank of China
(Asia) Ltd., Hong Kong. |
Mortgage |
|
Date |
Particulars |
Amount |
|
27-05-2013 |
Instrument: Mortgage Property: 96/19,060 parts or shares of and in The Remaining
Portion of Kowloon Inland Lot No. 7072, 7074, 8567 & 8670 (Unit 5, 3/F.,
Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.) Mortgagee: Industrial & Commercial Bank of
China (Asia) Ltd., Hong Kong. |
All monies |
|
27-05-2013 |
Instrument: Mortgage Property: 1/301 parts or shares of and in The
Remaining Portion of Kowloon Inland Lot No. 8247 [Flat A on 10/F., Windsor
Mansion (formerly known as Union Mansion), 33-35 Chatham Road, Tsimshatsui,
Kowloon, Hong Kong.] Mortgagee: Industrial & Commercial Bank of
China (Asia) Ltd., Hong Kong. |
All monies |
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.
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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.
-
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.65.11 |
|
|
1 |
Rs.99.50 |
|
Euro |
1 |
Rs.74.24 |
INFORMATION DETAILS
|
Analysis Done by
: |
TRL |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.