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Report No. : |
345528 |
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Report Date : |
23.10.2015 |
IDENTIFICATION DETAILS
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Name : |
PURITY COMPANY |
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Registered Office : |
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Country : |
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Date of Incorporation : |
23.06.2004 |
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Com. Reg. No.: |
34676023-000-06 |
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Legal Form : |
Sole Proprietorship. |
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Line of Business : |
Importer and exporter of all kinds of diamonds |
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No. of Employees : |
3 |
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 : |
Small Company |
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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 – March 31, 2015
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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.
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Source
: CIA |
PURITY COMPANY
ADDRESS: Suite 402, 4/F, Chevalier House, 45-51 Chatham Road South,
Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2368 4938
FAX: 852-2368 4939
E-MAIL: purity@netvigator.com
MANAGEMENT:
Manager: Mr. Deepak Jain
Establishment: 23rd June, 2004.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond
Trader.
Annual Turnover: HK$60-70 million.
Employees: 3.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Suite 402, 4/F, Chevalier House, 45-51 Chatham Road South, Tsimshatsui,
Kowloon, Hong Kong.
34676023-000-06
Manager: Mr. Deepak Jain
Name: Mr. Deepak JAIN
Residential Address: Flat B,
14/F., Windsor Mansion, 29-31 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 23rd June, 2004 as a partnership concern
jointly owned by Mr. Sandeep Mehta and Mr. Deepak Jain under the Hong Kong
Business Registration Regulations.
The following table shows the changes of the partners:
|
Name |
Incoming Date |
Outgoing Date |
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Mr. Deepak JAIN |
23-06-2004 |
--- |
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Mr. Sandeep MEHTA |
23-06-2004 |
01-01-2011 |
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Mr. Rajesh GOLCHHA |
01-10-2005 |
03-02-2008 |
Now, the subject is a sole proprietorship.
At the very beginning, the subject was located at Rear Portion, 7/F., 33
Mody Road, Tsimshatsui, Kowloon, Hong Kong, moved to Room B, 14/F., Windsor
Mansion, 29-31 Chatham Road, Tsimshatsui, Kowloon, Hong Kong in October 2009
and further to the present address in December 2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer
and Exporter.
Lines: All
kinds of diamonds
Trade Mark: “PURITY”.
Employees: 3.
Commodities Imported: India,
other Asian countries
Markets: Hong
Kong, Thailand, other Asian countries, Europe
Annual Turnover: HK$60-70
million.
Terms/Sales: CAD, L/C, T/T
Terms/Buying: L/C, T/T, D/P.
Capital: Not
disclosed.
Profit or Loss: Made
small profits in the past years.
Condition: Keeping in a normal state.
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.
Purity Company is a sole proprietorship set up and owned by Mr. Deepak
Jain who is an Indian. He is a Hong Kong
ID Card holder and has got the right to reside in Hong Kong permanently. He is also manager of the subject.
The subject shares its operating office with Flawless (H. K.) Co.
[Flawless] which is also a Hong Kong-registered firm. The subject is a diamond trader, so does
Flawless. Flawless was established on
6th June, 2005. It was owned and
operated by Mr. Poonam Chand Kothari.
Its products bear the brand name Flawless.
The subject is specialised in round, brilliant cut and fancy shape
diamonds, white diamonds, carat-sized diamonds.
Size ranging from 0.005 pt to 1.00 cts.
Business commenced in June 2004, the subject is trading in the following
products: marquise, pear, heart, oval, princess, emerald cut, radiant cut,
round cut, gold jewellery. Its jewellery
products include diamond ring, diamond pendant, diamond necklace, gem earring,
diamond earring.
Most of its products bear the brand name “Purity”. All the diamonds have got GIA
certificates. Prime markets are Hong
Kong, Thailand, the other Asian countries, Europe.
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 Jewellery Show 2016” which will be
held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during
the period of 3rd to 7th March, 2016.
The subject has an associated company in Thailand.
The annual sales turnover of the subject ranges from HK$60 to 70
million. Made a small profit in the past
years. Business is chiefly handled by
Deepak Jain himself.
As the history of the subject is over eleven years and four months in
Hong Kong, on the whole, 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-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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.65.15 |
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UK Pound |
1 |
Rs.100.54 |
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Euro |
1 |
Rs.73.97 |
INFORMATION DETAILS
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Analysis Done by
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KAR |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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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.