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Report No. : |
347537 |
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Report Date : |
29.10.2015 |
IDENTIFICATION DETAILS
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Name : |
H.K. IMPEX PVT. LTD. |
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Registered Office : |
Room 508, 5/F., Hilder Centre, 2 Sung Ping Street, Hung Hom, Kowloon, |
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Country : |
Hongkong |
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Date of Incorporation : |
19.03.2013 |
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Com. Reg. No.: |
61135505 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Exporter of all kinds of Diamonds and Jewellery. |
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No. of Employees : |
6. (Including Associates) |
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 : |
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) |
|
Hongkong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
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 |
HONGKONG - 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 |
H.K. IMPEX
PVT. LTD.
ADDRESS: Room
508, 5/F., Hilder Centre, 2 Sung Ping Street, Hung Hom, Kowloon, Hong Kong.
PHONE: 852-2367
8114, 2724 6530, 3919 4200
FAX: 852-2368
7147
E-MAIL: accounthk@diamondbyhk.com
Managing Director:
Mr. Bhagwanji Virji Lunagaria
Incorporated on: 19th March, 2013.
Organization: Private Limited Company.
Issued Share Capital: HK$10,000.00
Business Category: Diamond
Trader.
Annual Sales Turnover:
US$25-35 million. (Including
associates)
Employees: 6. (Including associates)
Main Dealing Banker: DBS
Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 508, 5/F., Hilder Centre, 2 Sung Ping Street, Hung
Hom, Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
Hari Krishna Group of Companies
H.K. Designs (India) Seepz Unit, India.
H.K. Designs Inc., USA.
H.K. Diam BVBA, Belgium.
H.K. Exports (Shanghai) Ltd., China.
H.K. Impex, Hong Kong.
(Same address)
H.K. International, USA.
H.K. Jewels Pvt. Ltd., India.
Hari Krishna Exports Pvt. Ltd., India.
Unity Diam, Hong Kong.
(Same address)
61135505
1877419
Managing Director:
Mr. Bhagwanji Virji Lunagaria
Contact Person: Mr. Mukeshkumar Gopalbhai Dholakiya
HK$10,000.00
(As per registry dated 19-03-2015)
|
Name |
|
No. of shares |
|
Bhagwanji Virji LUNAGARIA |
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5,100 |
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Mukeshkumar Gopalbhai DHOLAKIYA |
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4,900 |
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––––– |
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Total: |
10,000 ===== |
(As per registry dated 19-03-2015)
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Name (Nationality) |
Address |
|
Mukeshkumar Gopalbhai DHOLAKIYA |
Flat A, 13/F., Kam Kok Mansion, 82-84 Kimberley Road,
Tsimshatsui, Kowloon, Hong Kong. |
|
Bhagwanji Virji LUNAGARIA |
Room G, 2/F., Block 4, Site 5, Oak Mansion, Whampoa
Garden, 7 Tak Fung Street, Kowloon, Hong Kong. |
(As per registry dated 19-03-2015)
|
Name |
Address |
Co. No. |
|
Arrow Accounting Services Ltd. |
Flat C, 61/F., Block A, La Rossa, Coastal Skyline, Tung
Chung, Lantau Island, Hong Kong. |
2006864 |
The subject was incorporated
on 19th March, 2013 as a private limited liability company under the Hong Kong
Companies Ordinance.
Formerly the subject
was located at Room 704, 7/F., Chevalier House, 45-51 Chatham Road,
Tsimshatsui, Kowloon, Hong Kong, moved to the present address in September
2014.
Apart from these,
neither material change nor amendment has been ever traced and noted.
Activities: Importer
and Exporter.
Lines: All
kinds of diamonds and jewellery.
Employees: Employees: 6. (Including associates)
Commodities Imported: India,
other Asian countries, Europe.
Markets: Asia
Pacific region, Middle East, Australia, New Zealand, US, Europe
Annual Sales Turnover: US$25-35
million. (Including associates)
Terms/Sales: As per contracted.
Terms/Buying: L/C, T/T, D/P.
Hong Kong Jewelry Manufacturers’ Association,
Hong Kong.
Issued Share Capital: HK$10,000.00
Mortgage or Charge:-
Date of Mortgage:
19-09-2013
Amount: To secure all moneys in respect of
general banking facilities and interest
Property: 13/1,148th parts or shares of and in
Section B of Kowloon Marine Lot No. 113 (Workshop No. 8 on 5/F. of Hilder
Centre, Kowloon, Hong Kong.)
Mortgagee: DBS Bank (Hong Kong) Ltd.,
Hong Kong.
Profit or Loss: Made
a small profit in 2014.
Condition: Business
keeps on improving.
Facilities: Making
active use of general banking facilities.
Payment: Slow but correct
Commercial Morality:
Satisfactory.
Banker: DBS Bank (Hong Kong) Ltd.,
Hong Kong.
Standing: Small.
Having issued 10,000
ordinary shares of HK$1.00 each, H.K. Impex Pvt. Ltd. is jointly owned by Mr.
Bhagwanji Virji Lunagaria, holding 51% interests; and Mr. Mukeshkumar Gopalbhai
Dholakiya, holding 49%. Being India
merchants, both are Hong Kong ID Card holders and have got the right to reside
in Hong Kong permanently. They are also
directors of the subject.
The subject commenced
business in March 2013. Its headquarters
are in India while its branch offices are in New York, Antwerp, Dubai, Shenzhen
Special Economic Zone, Shanghai
The subject is a
diamond trader. It is trading in the
following products:-
VVS1 Diamond, IF
Diamond, SI3 Diamond, SI2 Loose Diamond, SI1 Loose Diamond, Faceted Loose
Diamond, GIA Diamond, Polished Diamond, SI Diamond.
It is able to offer
its worldwide customers with international standard diamonds. Its prime markets are the Asia Pacific
region, the Middle East, Australia, New Zealand, the United States, Europe.
The subject is a sightholder
having direct sources from DTC, Alrosa, Rio Tinto, and DDC. It is also the official suppliers of
CanadaMark and ForeverMark.
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.
The subject is a
marketing affiliate of m/s. Hari Krishna Exports Pvt. Ltd. which is in Mumbai,
India. The subject belongs to the Hari
Krishna Group.
According to the
subject, Hari Krishna Exports has been engaged in diamond business since
1983. The Group is a sightholder.
The Group has
numerous workers spread over seven factories located in the diamond city of
Surat, India and with its marketing office in Mumbai, India. The factories and office, operated by the
Hari Krishna Group, are able to cut and polish all kinds of diamonds and export
its products to worldwide countries. It
is specialized in “white colour and round cut” for all sizes.
The Hari Krishna
Group is a diamond cutter and polisher.
Its flagship company Hari Krishna Exports was set up in 1992 at Surat in
India with a simultaneous opening of sales and marketing office in Mumbai, the
hub of polished diamond trade.
Hari Krishna Group
procures rough diamonds from various producers of Russia, South Africa, Canada,
and other agencies of Antwerp. Rough
diamonds are brought to its Surat and Ahmedabad manufacturing plants where they
are cut and polished into different shapes, sizes and weight. The Group’s diamonds are usually in round
brilliant cut [RBC] in whites. All the
polished goods are sent to Mumbai office where the Group’s sales office and
assort departments are located. After
the assortment has been done, goods are being sold and exported to various
clients throughout the world. The
subject is one of the distributors of the Group’s products.
Hari Krishna Group
has got the ISO9001:2000 certificate from ABS Quality Evaluations Inc. It is also a “Three Star Export House”
recognized by the Government of India.
From 2003 to 2014, the Gem and Jewellery Export Promotion Council in
India had awarded the Group with certificates for its good export performance.
The Group’s products
are exported to the United States, Japan, Israel, the United Kingdom, Belgium,
Australia, New Zealand, the United Arab Emirates, and some of the European
countries.
Now, the Group
employs more than 3,000 people throughout the world.
The subject’s
affiliated company in China is known as H.K. Exports Shanghai Ltd. which is in
Shanghai, China. The business of the
China is satisfactory.
The business of the
subject is chiefly handled by the two shareholders. History in Hong Kong, which is short, is just
over two years and five months.
The subject operates
from its own office.
On the whole, since
the history of the subject is short, consider it good for normal business
engagements on L/C basis.
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.65.04 |
|
UK Pound |
1 |
Rs.99.58 |
|
Euro |
1 |
Rs.71.75 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
TRU |
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 |
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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 |
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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.