MIRA INFORM REPORT
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Report Date : |
13.12.2011 |
IDENTIFICATION DETAILS
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Name : |
CHINA
DIAMOND CORPORATION LTD. |
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Registered Office : |
Room 911-912, 9/F., Heng Ngai Jewelry Centre, 4 Hok Yuen Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
17.04.2000 |
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Com. Reg. No.: |
30872168-000 |
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Legal Form : |
Private Limited Company |
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LINE OF BUSINESS : |
IMPORTER AND PROCESSOR OF ALL KINDS OF RAW MATERIALS FOR DIAMOND,
PRECIOUS STONES, SAPPHIRE, RUBY, ETC. |
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No. of Employees
: |
18 Persons |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 – September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Hong Kong |
a2 |
a2 |
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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 |
Company name
CHINA DIAMOND CORPORATION
LTD.
Company ADDRESS
Room 911-912, 9/F., Heng Ngai Jewelry Centre, 4 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2521 0029
FAX: 2521 0019
E-MAIL: info@chinadia.com
MANAGEMENT
Managing Director: Mr. Darshan Jivatlal Bhagat
SUMMARY
Incorporated on: 17th April, 2000.
Organization: Private Limited Company.
Capital: Nominal: HK$12,880,623.00
Issued: HK$12,880,623.00
Business Category: Diamond Importer and Processor.
Employees: 18.
Main Dealing Banker: Dah Sing Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Company ADDRESS
Registered Head Office:-
Room 911-912, 9/F., Heng Ngai Jewelry Centre, 4 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
Business Name::-
C D (Belgium) Company, Hong Kong. [BR No. 30872168-001]
Shanghai Office:-
Room A511, China Diamond Exchange Center, 1701 Century Avenue, Pudong,
Shanghai 200122, China.
[Tel: (86-21) 6128 0738; Fax: (86-21) 6182 0731]
Zhuhai Factory:-
3/F., 8 The Tenth Ping Xi Road, Nan Ping Hi-Tech Industrial Area, Zhuhai SEZ, China.
Affiliated Companies:-
Jewellery Collection Co.,
Hong Kong.
[Owned by Mr. Yau Kung Wan (BR No. 16971156-000)]
Jewellery Collection
Group Ltd., Hong Kong.
[Also trading as Jewellery Collection Co. (BR No. 17517709-001)]
BUSINESS REGISTRATION NUMBER
30872168-000
COMPANY FILE NUMBER
0713048
MANAGEMENT
Managing Director: Mr. Darshan Jivatlal Bhagat
CAPITAL
Nominal Share Capital: HK$12,880,623.00 (Divided into 12,880,623 shares of HK$1.00 each)
Issued Share Capital: HK$12,880,623.00
SHAREHOLDERS
(As per registry dated 17-04-2011)
|
Name |
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No. of shares |
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Darshan Jivatlal BHAGAT |
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8,372,405 |
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YAU Kung Wan |
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4,508,218 |
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––––––––– |
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Total: |
12,880,623 ======== |
DIRECTORS
(As per registry
dated 17-04-2011)
|
Name (Nationality) |
Address |
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Darshan Jivatlal BHAGAT |
Flat A, 15/F., Block 3, Parc Palais, 18 Wylie Road, Ho Man Tin, Kowloon, Hong Kong. |
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YAU Kung Wan |
Flat F, 42/F., Robinson Place, 70 Robinson Road, Hong Kong. |
SECRETARY
(As per registry
dated 17-04-2011)
|
Name |
Address |
Co.
No. |
|
Vision Registration Ltd. |
Unit 6, 20/F., Far East Consortium Building, 121 Des Voeux Road Central, Hong Kong. |
1293029 |
HISTORY
The subject was incorporated on 17th April, 2000 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room 803, 8/F., Dragon Seed Building, 39 Queen’s Road Central, Hong Kong, moved to Room 502, 5/F., Wing On House, 71 Des Voeux Road Central, Hong Kong in February 2007, to Room 407-409, 4/F., Tower B, Hunghom Commercial Centre, 37-39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong in February 2009, and further moved to the present address with effect from 26th April, 2011.
Apart from these, neither material change nor amendment has been ever traced and noted.
OPERATIONS
Activities: Importer and Processor.
Lines: All kinds of raw materials for diamond, precious stones, sapphire, ruby, etc.
Employees: 18.
Materials/Commodities: Imported from Europe, South Africa, India, etc.
Markets: Southeast Asia, Japan, Europe, Middle East, etc.
Terms/Sales: L/C, T/T, D/A, etc.
Terms/Buying: L/C, D/P, D/A, etc.
FINANCIAL INFORMATION
Nominal Share Capital: HK$12,880,623.00 (Divided into 12,880,623 shares of HK$1.00 each)
Issued Share Capital: HK$12,880,623.00
Mortgage or Charge
(since 2008): (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Business is rather active.
Facilities: Making active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Satisfactory.
Bankers:-
· Dah Sing Bank Ltd., Hong Kong.
· CITIC Bank International Ltd., Hong Kong.
· Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
· DBS Bank (Hong Kong) Ltd., Hong Kong.
· Bank of India, Hong Kong Branch.
Standing: Good.
GENERAL
China Diamond Corporation Ltd. is a private limited company incorporated in April 2000. Formerly the subject had just issued 2 ordinary shares of HK$1.00 each while the shareholders Mr. Darshan Jivatlal Bhagat and Mr. Tso Wing Ching each held one share respectively. On 20th March, 2001, the subject created 859,034 ordinary shares more and on the same date, 558,321 shares were allotted to Bhagat while 300,662 shares were allotted to Tso.
Now, the subject has been reshuffled and has increased its issued share capital again. Now, it is jointly owned by Bhagat, holding 65%, and Mr. Yau Kung Wan, holding 35%. Yau and Bhagat are also directors of the subject. Bhagat is holding a Hong Kong ID card.
The subject moved to the present address in April 2011.
The subject is a diamond trader. Its business name is C D (Belgium) Company. It imports all kinds of raw materials for diamond, precious stones, sapphire, ruby, etc. from Europe, South Africa, Cambodia, India, other Asian countries, etc. However, India is the subject’s main supplying country. After processing, the finished products are marketed in Hong Kong, exported to China, India, Japan, Southeast Asia, the Middle East, Europe, etc. However, Belgium seems to be the prime market of the subject. The significant products of the subject are loose diamond and carat diamonds.
Long time ago, the subject just exported its products to India only. Now, its products are exported to over ten countries. Overall business is steady.
The subject has got the following certifications: GIA, the IGI, and HRD.
In Hong Kong, the subject has had about 18 employees. Besides, the subject has set up an office in Shanghai, China in order to penetrate the China market. The new office of the Shanghai Office is located at China Diamond Exchange Center of Shanghai.
The subject has set up a factory in Zhuhai Special Economic Zone, China engaged in diamonds cutting and polishing. The factory has about 150 employees. The subject is marketing its own products throughout the world.
Besides the subject, Mr. Yau Kung Wan is also operating another firm known as Jewellery Collection Co. which is also a jewellery and diamond trader.
The principal shareholder of the subject Bhagat is an Indian who has got close business ties with some of the diamond manufacturers in India. The subject’s business in Hong Kong is chiefly handled by Yau.
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 Jewellery Show 2012” which will be held in Wanchai, Hong Kong during the period of 16th to 20th February, 2012.
Overall business of the subject is good. According to the subject, its annual sales turnover is over HK$450 million.
On the whole, having a history of over eleven years and seven months in Hong Kong, the subject is considered good for normal business engagements.
Property
information of the company:-
Property Location: Workshop Unit 11 & 12 on 9/F., Heng Ngai Jewelry Centre,
4 Hok Yuen Street East, Kowloon, Hong Kong.
Owner: China Diamond Corporation Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
28-10-2010 |
- |
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
Legal charge to secure general banking facilities |
MORTGAGE OR CHARGE
(Since 2008)
|
Date |
Particulars |
Amount |
|
16-05-2008 |
Instrument: Mortgage over Securities and Deposits Property: The Mortgagor, as beneficial owner: (a) mortgages and agrees to mortgage to the Bank by way of first fixed mortgage the Mortgagor’s entire right, title and interest in and to the Securities and the Related Rights; and (b) charges and agrees to charge by way of first fixed charge the Mortgagor’s entire right, title and interest in and to the Deposit Mortgagee: CITIC Ka Wah Bank Ltd., Hong Kong. [Now known as CITIC Bank International Ltd.] |
As a continuing security for the Secured Liabilities |
|
21-01-2010 |
Instrument: Security Agreement over Bank Account Property: By way of a first fixed charge all of the Chargor’s rights in respect of any amount standing to the credit of the Account from time to time and the debt represented by it Mortgagee: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
To secure the payment and satisfaction of all present and future obligations and liabilities |
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05-07-2010 |
Instrument: Security Over Deposits Property: A deposit with chargee in the amount of HK$6,000,000.00 or its equivalent in any other foreign currencies plus accrued interest under Deposit A/C No. 502-793862, whatever currency it may subsequently be denominated in, any renewal of such deposit and the interest thereon together with any further monies in any deposit account with the chargee at any of its offices Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
Amount secured – (i) all monies in any currency owing by the Company to the chargee at any time, actually or contingently, in any capacity, alone or jointly with any other person; (ii) interest on such monies, to the date on which the chargee receives payment, at the rates payable by the Company or which would have been payable but for any circumstance which restricts payment and (iii) all expenses of the chargee in perfecting or enforcing the charge |
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28-10-2010 |
Instrument: Legal Charge/Mortgage Property: 56/4,978th parts or shares of and in Section D of Kowloon Marine Lot No. 113 (Workshop Unit 11 & 12 on 9/F. of Heng Ngai Jewelry Centre, 4 Hok Yuen Street East, Kowloon, Hong Kong.) Mortgagee: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
To secure the due and punctual payment of the Secured Indebtedness |
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04-04-2011 |
Instrument: Charge on Cash Deposit to secure Liabilities of the Depositor Property: 1) By way of first fixed charge and agreement to charge: the Deposit and all right, title and interest of the Company 2) By way of set-off: any sum standing to the credit of any one or more of the accounts of the Company with the Bank Mortgagee: DBS Bank (Hong Kong) Ltd., Hong Kong. |
All sums of money and liabilities |
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04-05-2011 |
Instrument: Letter of Set-off and Appropriation Property: Deal
No. Date Amount Due Date 163097 04-05-2010 HK$2,646,734.84 04-05-2011 Mortgagee: Bank of India, Hong Kong Branch. |
Advances and other banking facilities |
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16-05-2011 |
Instrument: Security Agreement over Securities Property: 1) By way of first fixed charge: (a) all Specified Securities which are on the date of the Security Agreement the Chargor’s property; (b) all Specified Securities in which the Chargor may in the future acquire an interest; (c) all Related Rights of a capital nature on the date of the Security Agreement; (d) all Related Rights of an income nature on the date of the Security Agreement; and (e) where Specified Securities are held in a Relevant System; and 2) By way of assignment, all the Chargor’s rights, title and interest, present and future, in and to any Specified Securities and any Related Rights Mortgagee: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
To secure the payment and satisfaction of all present and future obligations and liabilities |
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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The diamond jewellery industry in India today may be more than Rs 60000
mil and is rated amongst the fastest growing in the world. Indi ranks
third in the world in domestic diamond consumption.
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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 –
DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
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Most of the money borrowed from the banks in the name of their diamond
business has been diverted in real estate and the share market. The banks are
not in a position to seize their properties because in many cases, these were
purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.52.42 |
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UK Pound |
1 |
Rs.81.92 |
|
Euro |
1 |
Rs.69.94 |
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 |
|
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 |
|
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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.