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MIRA
INFORM REPORT
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Report Date : |
30.01.2012 |
IDENTIFICATION DETAILS
|
Name : |
DHARAM CREATIONS
(HK) LTD |
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|
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Registered Office : |
Unit 7, 1/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui,
Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
07.07.2004 |
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Com. Reg. No.: |
34748434 |
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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 : |
7 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name
DHARAM CREATIONS (HK)
LTD
Company ADDRESS
Unit 7, 1/F.,
Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2723 1466
FAX: 2722 6214
E-MAIL: info@dharamhk.com
MANAGEMENT
Managing
Director: Mr. Manishkumar Vallabhbhai
Mangukia
SUMMARY
Incorporated on: 7th July, 2004.
Organization: Private Limited Company.
Capital: Nominal: HK$19,400,000.00
Issued: HK$17,610,000.00
Business Category: Diamond Trader.
Employees: 7.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Company name
DHARAM CREATIONS (HK) LTD
Company ADDRESS
Registered
Head Office:-
Unit 7, 1/F.,
Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
Affiliated
Offices:-
Mumbai Office
Dharmanandan Diamonds Pvt. Ltd.
1014-16, Prasad Chambers, Opera House, Mumbai 400004, India.
Tel: 91 22 4004
1111~5
Fax : 91 22 6635
5533
E-mail: info@dharmanandan.com
Surat Factory
Dharmanandan Diamonds Pvt. Ltd.
Behind Patel Faliya, Gotalawadi, Katargam Road, Surat 395004,
Gujarat, India.
Tel: 91
261 253 3777
Fax: 91
261 253 3775
USA Office
Dharm International LLC
Suite 405, 15 West, 47th Street, NY 10036, New York, USA.
Tel: 1 212 398
7777~8
Fax: 1 212 398 7775
E-mail: bhavesh@dharmanandan.com
Belgium Office
Dharm Diam B.V.B.A.
30, Hoveniersstraat, Suite No.428, Box No.133, 2018, Antwerp, Belgium.
Tel: 323
234 1444
Fax: 323
234 1445
E-mail: sandip@dharmdiam.com
Holding
Company:-
DDL Investment
Ltd., Mauritius.
Associated/Affiliated
Companies:-
Dharm Diam
B.V.B.A., Belgium.
Dharm Exim
(Exporters of Diamonds & Diamond Jewellery), India.
Dharmanandan
Diamonds Pvt. Ltd., India.
Dharm
International LLC, USA.
BUSINESS REGISTRATION NUMBER
34748434
COMPANY FILE NUMBER
0910307
MANAGEMENT
Managing
Director: Mr. Manishkumar Vallabhbhai
Mangukia
CAPITAL
Nominal Share
Capital: HK$19,400,000.00 (Divided into 8,500,000 Ordinary shares of HK$1.00
each and 1,090 Preference shares of HK$10,000.00 each)
Issued Share Capital: HK$17,610,000.00
SHAREHOLDERS
(As per registry dated 07-07-2011)
|
Name |
|
No.
of shares |
|
|
|
|
Ordinary |
Preference |
|
DDL Investment Ltd. Les Cascades,
Edith Cavell Street, Port Louis, Mauritius. |
|
7,870,000 |
740 |
|
Sandipkumar Dayalbhai PATEL |
|
- |
234 |
|
|
|
–––––––– |
––– |
|
|
Total: |
7,870,000 ======= |
974 === |
DIRECTORS
(As per registry dated 07-07-2011)
|
Name (Nationality) |
Address |
|
Vipulbhai
Purshottambhai SUTARIYA |
16/B Balvant, Nagar, Singapore Char Rasta,
Katargam Road, Surat, Gujarat, India. |
|
Hareshbhai
Ramajibhai PATEL |
6 Dharmjivan Soc, Near Gurukul, Vedroad,
Surat, Gujarat, India. |
|
Manishkumar
Vallabhbhai MANGUKIA |
Flat C, 5/F., Holly Mansion, 37 Kimberley
Road, Tsimshatsui, Kowloon, Hong Kong. |
SECRETARY
(As per registry dated 07-07-2011)
|
Name |
Address |
Co.
No. |
|
Sovereign
Secretaries (HK) Ltd. |
Suite 1-3, 16/F., Kinwick Centre, 32 Hollywood Road, Central,
Hong Kong. |
0280990 |
HISTORY
The
subject was incorporated on 7th July, 2004 as a private limited liability
company under the Hong Kong Companies Ordinance.
Formerly
the registered address of the subject was located at Suite 1-3, 16/F., Kinwick
Centre, 32 Hollywood Road, Central, Hong Kong, moved to the present address
with effect from 25th August, 2008.
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: 7.
Commodities Imported: Belgium, India, other Asian countries, etc.
Markets: Asia, Europe, North America, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
FINANCIAL INFORMATION
Nominal Share
Capital: HK$19,400,000.00 (Divided into 8,500,000 Ordinary shares of HK$1.00
each and 1,090 Preference shares of HK$10,000.00 each)
Issued Share
Capital: HK$17,610,000.00
Alternation
of Capital:-
|
Initially |
paid up |
HK$ 3,570,000.00 |
|
23-10-2009 |
paid up |
HK$ 3,900,000.00 |
|
15-03-2011 |
paid up |
HK$ 10,140,000.00 |
|
|
|
––––––––––––––– |
|
Total: |
paid up |
HK$ 17,610,000.00 ============== |
Increases
of Nominal Capital:-
|
From |
HK$5,000,000.00 |
to |
HK$ 8,900,000.00 |
on |
23-10-2009 |
|
From |
HK$8,900,000.00 |
to |
HK$19,400,000.00 |
on |
15-03-2011 |
Mortgage or Charge: (See attachment)
Profit or Loss: Making a small profit every years.
Condition: Keeping in an active condition.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments on time.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Wing Lung Bank Ltd., Hong Kong.
Bank of China (Hong Kong) Ltd., Hong Kong.
Antwerpse DiamantBank NV (also known as Antwerp Diamond Bank NV), Hong Kong Branch.
Bank of Baroda, Hong Kong Branch.
Standing: Normal.
GENERAL
Dharam
Creations (HK) Ltd. was jointly owned by three Indian and an India firm. Its old holding company was Dharmanandan
Diamonds Pvt. Ltd. which was an India-based firm. However, the holding company changed in late
2009. The equity of each shareholders
also has changed. Now, its new holding
company DDL Investment Ltd. [DDL] is a Mauritius-registered firm. Since 2nd March, 2011, the subject has become
a wholly-owned subsidiary of DDL. All
the directors of the subject are Indian but each is holding a Hong Kong
ID. Mr. Manishkumar Vallabhbhai Mangukia
is the managing director of the subject who is residing in Hong Kong most of
the time.
The
subject in fact is a member of Dharmanandan Group [Dharmanandan] which is one
of the largest manufacturers of bigger size diamonds in India.
The
subject is dealing in 0.01 cts to 3 cts diamond with D-J colour VVW. It is dealing in the following diamonds:
loose diamonds, certified diamonds, pearls, loose diamond stones, loose round
diamonds, loose polish diamonds, loose cut diamonds, colour diamonds, clarity
diamonds, carats diamonds, loose princess diamond, loose emerald diamond,
polished diamonds, loose diamond stone, round diamond, loose cut diamond, GIA
certified diamonds, princess, marques, pears, baguettes, etc. Its products are exported to Southeast Asia,
Africa, the Middle East, Central & South America, the United Kingdom, the
United States, Canada, etc. and also marketed in Hong Kong.
The
subject has had an employee stationing in China in order to penetrate the China
market.
Dharmanandan,
founded in 1992, is a Sightholder of the Diamond Trading Company [DTC]. Its factory is in Surat, India employing about
2,800 workers. The floor area of the
factory is about 125,000 sq.ft. The
factory supplies the subject with all kinds of loose diamond products.
Dharmanandan
has been doing business in this field for over 20 years. It has a wide range of products. Its main product is round diamonds and deals
in customized requirements of fancy shapes like princess, marques, pears,
baguettes etc. with various sizes, colors and clarities. Dharmanandan got the ISO 9001-2000 certification
in 2008. Currently, Dharmanandan has set
up an office in Antwerp, Belgium, where is a diamond trading centre. In recent year, it also has set up an office
in New York, the United States. The US
office makes the Group further penetrate the US market.
The
subject is fully supported by Dharmanandan.
Annual sales turnover is rather significant.
The
subject has taken part in fairs and exhibitions held in Hong Kong and other
foreign large cities. It usually takes
part in Hong Kong International Jewellery Show which is held in Hong Kong
annually.
For
instance, it is going to take part in “HKTDC Hong Kong International Jewellery
Show 2012” which will be held in Hong Kong Convention and Exhibition Centre,
Wanchai, Hong Kong during the period of 16th to 20th February, 2012.
The
history of the subject in Hong Kong is over seven years and six months.
On the whole,
consider the subject good for normal business engagements.
REMARKS
Property
information of the company:-
1. Property Location: Unit 7 on 1/F., Chevalier House, 45-51 Chatham Road South,
Kowloon, Hong Kong.
Owner: Dharam Creations (HK) Ltd.
Date of
Purchase: n.a.
Purchased
Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
22-12-2010 |
- |
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
2. Property Location: 5/F. of Block A, Kimberley Mansion, 15 Austin Avenue, Kowloon,
Hong Kong.
Owner: Dharam Creations (HK) Ltd.
Date of
Purchase: n.a.
Purchased
Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
22-12-2010 |
- |
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
MORTGAGE OR CHARGE
|
Date |
Particulars |
Amount |
|
13-09-2008 |
Instrument: Debenture Property: 1) All stocks shares bonds and
securities of any kind whether marketable or otherwise and all other
interests including loan capital of the Company 2) All book and other debts
revenues and claims 3) The uncalled capital
goodwill and all patents patent applications trade marks trade names
registered designs and copyrights and all licences and ancillary and
connected rights 4) The undertaking and all other assets of the
Company Mortgagee: Antwerpse
DiamantBank NV (also known as Antwerp Diamond Bank NV), Hong Kong
Branch. |
All money and the discharge of all obligations and liabilities |
|
14-06-2010 |
Instrument: Memorandum Property: Distinctive 91220300001202 09-06-2010 US$500,000.00 07-06-2011 Mortgagee: Bank
of Baroda, Hong Kong Branch. |
Loan or credit or other facilities |
|
22-12-2010 |
Instrument: Mortgage Property: 193/19,060th parts or shares of and in The
Remaining Portion of Kowloon Inland Lot No. 7072, and Kowloon Inland Lot No.
8670, 8567 & 7074 (Unit 7 on 1/F. of Chevalier House, 45‑51 Chatham
Road South, Kowloon, Hong Kong.) Mortgagee: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
To secure all moneys in respect of general banking facilities |
|
22-12-2010 |
Instrument: Mortgage Property: 1/16th part or share of and in section A
of Subsection 1 of Section A of Kowloon Inland Lot No. 6018 (5/F. of Block A
of Kimberley Mansion, 15 Austin Avenue, Kowloon, Hong Kong.) Mortgagee: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
To secure all moneys in respect of general banking facilities |
|
27-06-2011 |
Instrument: General
Letter of Hypothecation Property: All goods and all bills of exchange,
promissory notes and negotiable instruments of any description, all bills of
lading, dock warrants, delivery orders, warehouse warrants and receipts and
other documents of title to or documents relating to goods, and all goods
thereby represented or to which such documents relate and all policies and
certificates of insurance Mortgagee: Bank
of Baroda, Hong Kong Branch. |
Loan or credit or other facilities |
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.
-
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.
-
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 –
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.
-
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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.64 |
|
|
1 |
Rs.77.79 |
|
Euro |
1 |
Rs.65.04 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.