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Report No. : |
345359 |
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Report Date : |
23.10.2015 |
IDENTIFICATION DETAILS
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Name : |
VERTEX DIAM
(HK) LTD. |
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Registered Office : |
Room 1307, 13/F., |
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Country : |
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Date of Incorporation : |
27.07.2011 |
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Com. Reg. No.: |
58795148 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is importer, exporter and wholesaler of all kinds of loose diamonds. |
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No. of Employee : |
2 |
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
|
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 |
VERTEX
DIAM (HK) LTD.
Room 1307, 13/F., Hart
Avenue Plaza, 5-9A Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
(Formerly
located at: Room 1303, 13/F., Hart Avenue Plaza,5-9A Hart Avenue, Tsimshatsui,
Kowloon, Hong
Kong.)
PHONE: 852-3484 2508, 6760 4650 (Mobile)
FAX: 852-3484 2509
Managing
Director: Mr. Kiritkumar Himatbhai
Gabani
Incorporated
on: 27th
July, 2011.
Organization: Private
Limited Company.
Issued Share
Capital: HK$100,000.00
Business Category: Diamond trader.
Employee: 2.
Main Dealing
Banker: The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Banking
Relation: Satisfactory.
Associated Company:-
Vertex Diam, Hong
Kong. (Same address)
58795148
1644493
Managing
Director: Mr. Kiritkumar Himatbhai
Gabani
HK$100,000.00
(As
per registry dated 27-07-2015)
|
Name |
|
No.
of shares |
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Kiritkumar Himatbhai GABANI |
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10,000 |
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Jitinkumar Manjibhai GABANI |
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90,000 |
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‑‑‑‑‑‑‑‑‑‑‑ |
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Total: |
100,000 ====== |
(As
per registry dated 27-07-2015)
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Name (Nationality) |
Address |
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Kiritkumar
Himatbhai GABANI |
Flat A, 14/F., South Sea Mansion, 81
Chatham Road South, Tsimshatsui, Kowloon, Hong Kong. |
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Jitinkumar
Manjibhai GABANI |
B/20 Shiv Nagar Soc., Matawadi Varachha
Road, Surat 395010, India. |
(As
per registry dated 27-07-2015)
|
Name |
Address |
Co.
No. |
|
East
(Nominees) Ltd. |
11/F., Kundamal House, 2-4 Prat Avenue, Tsimshatsui, Kowloon, Hong
Kong. |
0327797 |
The
subject was incorporated on 27th July, 2011 as a private limited liability company
under the Hong Kong Companies Ordinance.
Formerly
the subject was located at Flat B-4, 11/F., Prat Mansion, 26-36 Prat Avenue,
Tsimshatsui, Kowloon, Hong Kong, moved to ‘Room 1303, 13/F., Hart Avenue Plaza,
5-9A Hart Avenue, Tsimshatsui, Kowloon, Hong Kong’ in December 2011, and
further to Room 1307 of the same building in July 2015.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer, Exporter and
Wholesaler.
Lines: All kinds of loose
diamonds.
Employee: 2.
Commodities
Imported: India, etc.
Markets: Hong Kong, China, India, other
Asian countries, etc.
Terms/Sales: CAD,
L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Issued Share Capital:
HK$100,000.00
Profit or Loss:
Made small profits in past three years.
Condition: Business is normal.
Facilities: Making rather active use of general
banking facilities.
Payment: Met
trade commitments as required.
Commercial
Morality: Satisfactory.
Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Having
issued 10,000 ordinary shares of HK$1.00 each, Vertex Diam (HK) Ltd. formerly was
wholly owned by Kiritkumar Himatbhai Gabani.
Now the subject has increased its ordinary shares to 100,000 of HK$1.00
each which are 10% owned by Kiritkumar Himatbhai Gabani, and 90% are owned by
Jitinkumar Manjibhai Gabani. Both are
India merchants. K H Gabani is a Hong
Kong ID holder and has got the right to reside in Hong Kong permanently. The latter is an India passport holder. Both are also directors of the subject.
The
subject has had an associated company Vertex Diam located at the same address. Vertex Diam is owned by Kiritkumar Himatbhai
Gabani. However, the registered address
of Vertex Diam is located at another address.
The
subject has had an associated company in India which is known as M. V.
Enterprise.
The
subject’s registered address is in a private building located at Room 1307,
13/F., Hart Avenue Plaza, 5-9A Hart Avenue, Tsimshatsui, Kowloon,
Hong Kong. This is the new address
of the subject.
The
residential building is not trespassed by outsiders. The subject has two employees in Hong Kong.
K H Gabani can be reached
at his Hong Kong mobile phone number 852-6760 4650.
The
subject is a diamond importer, exporter and wholesaler. It is trading in loose, polished and cut
diamonds. Most of its diamonds are small
sizes ranging from – 2 to + 11, all in all quantities.
Most
of the commodities are imported from India.
Prime markets are Hong Kong, China and the other Asian
countries. It also exports its products
to the United States, the Middle East, etc.
Business is normal.
Vertex
Diam and the subject are engaged in the same lines of business.
According
to the subject, it is able to offer customers with quality products,
competitive prices and prompt delivery.
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 1st
to 5th March, 2016.
The
business of the subject is chiefly handled by K H Gabani himself. History in Hong Kong is just over four years
and two months.
On
the whole, consider it good for normal business engagements in small credit
amounts.
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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|
1 |
Rs.100.54 |
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Euro |
1 |
Rs.73.97 |
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
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Report Prepared
by : |
ASH |
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.