MIRA INFORM REPORT

 

 

Report No. :

347537

Report Date :

29.10.2015

 

IDENTIFICATION DETAILS

 

Name :

H.K. IMPEX PVT. LTD.

 

 

Registered Office :

Room 508, 5/F., Hilder Centre, 2 Sung Ping Street, Hung Hom, Kowloon,

 

 

Country :

Hongkong

 

 

Date of Incorporation :

19.03.2013

 

 

Com. Reg. No.:

61135505

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer and Exporter of all kinds of Diamonds and Jewellery.

 

 

No. of Employees :

6. (Including Associates)

 

 

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 :

Small Company 

 

 

Payment Behaviour :

Slow but correct

 

 

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

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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

 

Company Name and address

 

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

 

 

MANAGEMENT

 

Managing Director:        Mr. Bhagwanji Virji Lunagaria

 

 

SUMMARY

 

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.

 

 

ADDRESS

 

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)

 

 

BUSINESS REGISTRATION NUMBER

 

61135505

 

 

COMPANY FILE NUMBER

 

1877419

 

 

MANAGEMENT

 

Managing Director:        Mr. Bhagwanji Virji Lunagaria

Contact Person:            Mr. Mukeshkumar Gopalbhai Dholakiya

 

 

ISSUED SHARE CAPITAL

 

HK$10,000.00

 

 

SHAREHOLDERS

(As per registry dated 19-03-2015)

 

Name

 

No. of shares

Bhagwanji Virji LUNAGARIA

 

5,100

Mukeshkumar Gopalbhai DHOLAKIYA

 

4,900

 

 

–––––

 

Total:

10,000

=====

 

 

 

DIRECTORS

 

(As per registry dated 19-03-2015)

 

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.

 

 

SECRETARY

 

(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

 

 

HISTORY

 

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.

 

 

OPERATIONS

 

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.

 

 

MEMBERSHIP

 

Hong Kong Jewelry Manufacturers’ Association, Hong Kong.

 

 

FINANCIAL INFORMATION

 

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.

 

 

GENERAL

 

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

 

-            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.65.04

UK Pound

1

Rs.99.58

Euro

1

Rs.71.75

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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

 

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%)

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