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Report Date : |
13.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
DIAGEMS TRADING
COMPANY |
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Registered Office : |
Room 706, 7/F., Hart Avenue Plaza, 5-9A Hart Avenue, Tsimshatsui,
Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
01.04.1981 |
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Com. Reg. No.: |
07143871-000-04 |
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Legal Form : |
Partnership Concern |
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Line of Business : |
Importer, Exporter and Wholesaler of Diamonds, Gemstones,
Jade, Etc |
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No. of Employees : |
3 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 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 |
|
Off-credit |
D |
DIAGEMS TRADING
COMPANY
Room 706, 7/F.,
Hart Avenue Plaza, 5-9A Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2376 2781, 2376 0427
FAX: 2376 2357
E-MAIL: dgtc@biznetvigator.com
Manager: Amishkumar Ramniklal Sheth
Establishment: 1st April, 1981.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond and Gem Trader.
Annual Turnover: HK$45~48 million.
Employees: 3.
Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
DIAGEMS TRADING
COMPANY
Head
Office:-
Room 706, 7/F.,
Hart Avenue Plaza, 5-9A Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
P.O. Box 95305,
Tsimshatsui, Kowloon, Hong Kong.
Associated
Companies:-
Diagems Trading
Ltd., Hong Kong. (Same address)
Samkit Diamonds
Exporters, India.
07143871-000-04
Manager: Amishkumar Ramniklal Sheth
Name: Amishkumar Ramniklal SHETH
Residential
Address: Flat B7, 5/F., Block B, Hankow Centre, 4A Ashley Road, Tsimshatsui,
Kowloon, Hong Kong.
The
subject was established on 1st April, 1981 as a partnership concern jointly
owned by three Indian under the Hong Kong Business Registration Regulations.
The
following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Hemkapub Ramanlal PATEL |
01-04-1981 |
30-09-1984 |
|
Ashokkumar Hiralal PATEL |
01-04-1981 |
02-03-1999 |
|
Jyostnaben Ashokkumar PATEL |
01-04-1981 |
02-03-1999 |
|
Mukund Himatlal ZAVERI |
15-05-1989 |
31-03-1994 |
|
Avnissh Ashok PATEL |
15-06-1997 |
15-08-1997 |
|
Amishkumar Ramniklal SHETH |
01-03-1999 |
- |
Now
the subject is a sole proprietorship.
Initially
the subject was located at Room 33, 2/F., Mirador Mansion, 58 Nathan Road,
Tsimshatsui, Kowloon, Hong Kong, moved to Room 59, 2/F. of the same building in
June 1981; to Flat 3A, 3/F., Bo Yip Building, 6 Ashley Road, Tsimshatsui,
Kowloon, Hong Kong in August 1988; to Flat B7, 5/F., Block B, Hankow Centre, 4A
Ashley Road, Tsimshatsui, Kowloon, Hong Kong in May 1999; to Flat G & H,
12/F., Union Mansion, 33-35 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong
in August 2003; and further moved to the present address in April 2008.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer, Exporter and Wholesaler.
Lines: Diamonds, gemstones, jade, etc.
Employees: 3.
Commodities Imported: India, Thailand, other Asian countries, Europe, etc.
Markets: USA, the Philippines, Taiwan, Singapore, Indonesia, Switzerland, Central & South America, etc.
Annual Turnover: HK$45~48 million.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Capital: Not disclosed.
Profit or Loss: Making a small profit every year.
Condition: Keeping in an active and satisfactory condition.
Facilities: Making active use of general banking facilities.
Payment: Met obligations on time.
Commercial Morality: Satisfactory.
Bankers:-
Hang Seng Bank Ltd., Hong Kong.
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Standing: Small.
Diagems Trading Company is a sole proprietorship owned by Amishkumar Ramniklal Sheth who is an Indian. Sheth joined in the subject in March 1999.
Business commenced in April 1981, the subject is one of the oldest diamond trading companies in Hong Kong. The subject is a loose diamond, gemstone and jade importer, exporter and wholesaler. Most of its products carried are: pear, tapered, marquise and baguette princess cut diamonds, marquise cut semi-precious stones, etc.
The subject has had an associated company Diagems Trading Ltd. [DTL], a Hong Kong-registered firm which is also located at the same operating address. The subject and DTL are engaged in the same lines of business.
Currently, the subject is manufacturing the following commodities and offering clients with the following services:-
|
Product/Service |
Product/Service
Remarks |
|
Fine Jewellery |
|
|
Diamond |
Cut
and polished diamonds, from 0.005cts to 0.50 cts, size shapes: brilliant,
tapper, bugget, princess, marquise, pears (Importer) Cut
and polished diamonds, from 0.005 cts to 0.50 cts, size shapes: brilliant,
tapper, bugget, princess, marquise, pears (Exporter) Cut
and polished diamonds, from 0.005 cts to 0.50 cts, size shapes: brilliant,
tapper, bugget, princess, marquise, pears (Wholesaler) |
|
Gemstones and
Jade |
Fine
jewellery: white 6 yellow gold with diamonds (Importer) Fine
jewellery: white 6 yellow gold with diamonds (Exporter) Fine
jewellery: white 6 yellow gold with diamonds (Wholesaler) |
The
subject’s cut and polished diamonds bear the brand name of “DTC”. Prime markets are the United States, the
Philippines, Taiwan, Singapore, Indonesia, Switzerland, Central & South
America, etc.
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 latest fair taken part was the Hong Kong
International Jewellery Show which had been held in Hong Kong during the period
of 16th to 20th February, 2012. Besides,
it is going to take part in “HKTDC Hong Kong International Jewellery Show 2013”
which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong
Kong during the period of 5th to 9th March, 2013.
The
annual sales turnover of the subject ranges from HK$45 to 48 million. Making a small profit every year. Business is rather active. Regular suppliers and a number of foreign
customers have been maintained.
The
subject is an associated company of Samkit Diamonds Exporters [Samkit], an
India-based firm also trading in diamonds and jewellery. It is likely that Samkit is one of the subject’s
suppliers in India.
The
subject’s business is chiefly handled by Sheth himself.
Since
the history of the subject in Hong Kong is about thirty-one years, on the
whole, consider it good for normal business engagements.
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.
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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.
-
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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.94 |
|
|
1 |
Rs.78.25 |
|
Euro |
1 |
Rs.65.39 |
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.