MIRA INFORM REPORT

 

 

Report No. :

510769

Report Date :

29.05.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

RELIANCE  TRADES

 

 

Registered Office :

Flat A4, 6/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

09.02.1981

 

 

Com. Reg. No.:

07053042-000-02

 

 

Legal Form :

Partnership

 

 

Line of Business :

Importer, Exporter and Wholesaler of All Kinds of Diamonds and Jewellery Products, Emerald, Precious Stones

 

 

No. of Employees :

3.  (Including associates)

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Status :

Satisfactory

 

 

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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Hong Kong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

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.

 

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:-

Name

Incoming Date

Outgoing Date

Seyed Abdul Gani Seyed Abdul Kader

09-02-1981

---

Asik Ali Mohamed Sadakthamby

24-07-1985

---

Samul Haque Mohamed Sadak

12-01-1993

01-11-2011

Ameer Hamsha Ahamed Shakir

01-04-1997

31-12-1998

Mohamed Afrah Habeeb Mohamed

01-01-1999

01-04-1999

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

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 67.44

UK Pound

1

INR 89.89

Euro

1

INR 79.00

HKD

1

INR 8.65

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

NIS

 

 

Report Prepared by :

TRU

                                                


 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

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

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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