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MIRA INFORM REPORT
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Report No. : |
516706 |
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Report Date : |
23.06.2018 |
IDENTIFICATION DETAILS
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Name : |
RELIANCE TRADES |
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Registered Office : |
Flat A4, 6/F., Hankow Centre, 47 Peking Road,
Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
09.02.1981 |
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Com. Reg. No.: |
07053042-000-02 |
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Legal Form : |
Partnership |
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Line of Business : |
Importer,
exporter and wholesaler of all kinds of diamonds and jewellery products,
emerald, precious stones |
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No. of Employees : |
3 (Including associates) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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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
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Country Name |
Previous
Rating (31.12.2017) |
Current
Rating (01.04.2018) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 reexports, 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 continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.
Excess liquidity, low interest rates and a tight housing supply have caused Hong Kong property prices to rise rapidly. The lower and middle-income segments of the population increasingly find housing unaffordable.
Hong Kong's open economy has left it exposed to the global economic situation. Its continued reliance on foreign trade and investment makes it vulnerable to renewed global financial market volatility or a slowdown in the global economy.
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 surged from 4.5 million in 2001 to 47.3 million in 2014, outnumbering visitors from all other countries combined. After peaking in 2014, overall tourist arrivals dropped 2.5% in 2015 and 4.5% in 2016. The tourism sector rebounded in 2017, with visitor arrivals rising 3.2% to 58.47 million. Travelers from Mainland China totaled 44.45 million, accounting for 76% of the total.
The Hong Kong Government is promoting the Special Administrative Region (SAR) as the preferred business hub for 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, RMB trade settlement is allowed, and investment schemes such as the Renminbi Qualified Foreign Institutional Investor (RQFII) Program was first launched in Hong Kong. Offshore RMB activities experienced a setback, however, after the People’s Bank of China changed the way it set the central parity rate in August 2015. RMB deposits in Hong Kong fell from 1.0 trillion RMB at the end of 2014 to 559 billion RMB at the end of 2017, while RMB trade settlement handled by banks in Hong Kong also shrank from 6.8 trillion RMB in 2015 to 3.9 trillion RMB in 2017.
Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2015, mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 66% 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. 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 (CEPA), adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, which took effect in March 2015, cover a negative list and a most-favored treatment provision. On the basis of the Guangdong Agreement, the Agreement on Trade in Services signed in November 2015 further enhanced liberalization, including extending the implementation of the majority of Guangdong pilot liberalization measures to the whole Mainland, reducing the restrictive measures in the negative list, and adding measures in the positive lists for cross-border services as well as cultural and telecommunications services. In June 2017, the Investment Agreement and the Agreement on Economic and Technical Cooperation (Ecotech Agreement) were signed under the framework of CEPA.
Hong Kong’s economic integration with the mainland continues
to be most evident in the banking and finance sector. Initiatives like the Hong
Kong-Shanghai Stock Connect, the Hong Kong- Shenzhen Stock Connect the Mutual
Recognition of Funds, and the Bond Connect scheme are all important steps
towards opening up the Mainland’s capital markets and have reinforced Hong
Kong’s role as China’s leading offshore RMB market. Additional connect schemes
such as ETF Connect (for exchange-traded fund products) are also
under exploration by Hong Kong authorities. In 2017, Chief Executive Carrie LAM
announced plans to increase government spending on research and development,
education, and technological innovation with the aim of spurring continued
economic growth through greater sector diversification.
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Source
: CIA |
Company
name and address
RELIANCE TRADES
ADDRESS: Flat A4, 6/F., Hankow Centre,
47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2366 3063
FAX: 852-2311 0919
E-MAIL: reliance@hkstar.com
MANAGEMENT
Manager:
Mr. Seyed Abdul
Gani Seyed Abdul Kader
SUMMARY
Establishment: 9th
February, 1981.
Organization:
Partnership.
Capital:
Not
disclosed.
Business Category: Diamond Trader.
Annual Turnover: HK$50~100
million.
Employees:
3. (Including associates)
Main Dealing Banker: Industrial & Commercial Bank of China (Asia) Ltd.,
Hong Kong.
Banking Relation: Satisfactory.
ADDRESS
Head Office:-
Flat A4, 6/F., Hankow Centre, 47 Peking Road,
Tsimshatsui, Kowloon, Hong Kong.
Mailing Address:-
P.O. Box 97948, Tsim Sha Tsui Post Office,
Kowloon, Hong Kong.
Associated Company:- (Same address)
Wai Hing Co., Hong Kong.
BUSINESS
REGISTRATION NUMBER
07053042-000-02
MANAGEMENT
Manager:
Mr. Seyed Abdul
Gani Seyed Abdul Kader
PARTNERS
Name: Mr. Seyed Abdul Gani
SEYED ABDUL KADER
Residential Address: 2/F., 11 Lock Road, Kowloon, Hong Kong.
Name: Mr. Asik Ali MOHAMED
SADAKTHAMBY
Residential Address: Flat A4, 6/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon,
Hong Kong.
Name: Mr. Seyed Abdul Kader
Mafaz MOHAMED
Residential Address: Flat A4, 6/F., Hankow Centre, 47 Peking Road, Tsimshatsui,
Kowloon, Hong Kong.
HISTORY
The subject was established on 9th February,
1981 as a sole proprietorship concern owned by Seyed Abdul Gani Seyed Abdul
Kader under the Hong Kong Business Registration Regulations.
The following table shows the changes of the
partners:-
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Name |
Incoming Date |
Outgoing Date |
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Seyed Abdul Gani Seyed Abdul Kader |
09-02-1981 |
--- |
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Asik Ali Mohamed Sadakthamby |
24-07-1985 |
--- |
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Samul Haque Mohamed Sadak |
12-01-1993 |
01-11-2011 |
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Ameer Hamsha Ahamed Shakir |
01-04-1997 |
31-12-1998 |
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Mohamed Afrah Habeeb Mohamed |
01-01-1999 |
01-04-1999 |
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Seyed Abdul Kader Mafaz Mohamed |
24-06-2010 |
--- |
Apart from these, neither material change nor
amendment has been ever traced and noted.
OPERATIONS
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of diamonds and jewellery products, emerald, precious stones, etc.
Employees: 3. (Including associates)
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Hong
Kong, China, Japan, Southeast Asia, Europe, Middle East, etc.
Annual Turnover: HK$50~100 million.
Terms/Sales:
CAD, L/C, T/T, etc.
Terms/Buying:
L/C, T/T, D/P, etc.
FINANCIAL
INFORMATION
Capital: Not
disclosed.
Profit or Loss: Making a small profit every year.
Condition:
Keeping in an
active manner.
Facilities:
Making rather
active use of general banking facilities.
Payment:
Slow but
Correct.
Commercial Morality: Good.
Bankers:-
Industrial
& Commercial Bank of China (Asia) Ltd., Hong Kong.
The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing:
Satisfactory.
GENERAL
Reliance Trades is a partnership jointly owned by Seyed Abdul Gani
Seyed Abdul Kader, Asik Ali Mohamed Sadakthamby, and Seyed Abdul Kader Mafaz
Mohamed. All the partners are India
merchants who are Hong Kong ID Card holders and have got the right to reside in
Hong Kong. The last one S.A. K.
Mafaz Mohamed joined in the subject on 24th June, 2010.
Over the past years, the subject had got partners incoming and
outgoing. Now, the subject is managed by
the above-mentioned three partners.
The subject’s operating address is in a private and commercial
building known as ‘Hankow Centre’ which is in Tsimshatsui, Kowloon, Hong
Kong. The subject is in the private part
of the building. Two of the partners are
residing in the subject’s office.
The subject is a diamond trader.
Commodities are chiefly imported from India and Europe. Prime markets are Hong Kong, Japan, Southeast
Asia, Europe, the Middle East, North America, etc.
The subject also carries the following products:-
Gemstones & Jade (Gemstones from Thailand, Bulgaria, India
& Sri Lanka)
Precious & Semi-Precious Jewellery (From Saudi Arabia,
Thailand & Switzerland)
Polished and Rough Diamonds (From India & Belgium)
Business commenced in February 1981, the subject is a polished and
cut diamond importer, exporter and wholesaler.
It also trades in Alexandrite, emerald, ruby jade, gem sets, blue or
coloured sapphire, Tanzanite, etc.
The subject has got an associated company Wai Hing Co. [Wai Hing]
which is located at the same operating office.
Wai Hing is a sole proprietorship set up and owned by Mr. Asik Ali
Mohamed Sadakthamby who is one of the partners of the subject. Business commenced in November 2008, Wai Hing
is also a diamond importer, exporter and wholesaler.
Besides Wai Hing, the subject had another affiliated company
Bridiam located at the same address.
Bridiam was a sole proprietorship set up and owned by Mr. Ahamed Kabir
M. K. A. B. Syed who was an Indian. This
company has ceased business since 12th June, 2017.
The subject’s business is chiefly handled by the three
partners. Annual sales turnover ranges
from HK$50 to 100 million. Making a
profit every year. Regular suppliers in
India and overseas customers have been maintained. History in Hong Kong is over 37 years and
three months.
The subject is one of the oldest Indian diamond traders in Hong
Kong.
On the whole, consider it good for normal business engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 67.77 |
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1 |
INR 89.96 |
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Euro |
1 |
INR 78.86 |
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HKD |
1 |
INR 8.65 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIS |
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Report Prepared
by : |
SYL |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on secured
terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.