MIRA INFORM
REPORT
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Report Date : |
01.11.2012 |
IDENTIFICATION DETAILS
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Name : |
DIAVIN
LTD. |
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Formerly Known As : |
Eminent Gold Ltd |
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Registered Office : |
Unit 6, 7/F., Chevalier House, |
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Country : |
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Date of Incorporation : |
25.10.1994 |
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Com. Reg. No.: |
18960793 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds
and jewellery products, emerald, precious stones, etc |
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No. of Employees
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12 |
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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 |
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 re-exports, is about four times GDP. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese 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; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's exports 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 has surged from 4.5 million in 2001 to 28 million in 2011, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% 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. Growth slowed to 5% in 2011. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.
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Source : CIA |
DIAVIN LTD.
Unit 6, 7/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2369 6123, 2369 0130
FAX: 2375 2526
E-MAIL: info@diavin.com
Managing Director: Mr Chirag Arvindkumar Shah
Incorporated on: 25th October, 1994.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10,000.00
Business Category: Diamond Trader.
Group Annual Turnover: US$155~160 million.
Employees: 12.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Unit 6, 7/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
Dianish (H.K.) Ltd. Taipei Branch, Taiwan.
Dianish (H.K.) Ltd., Hong Kong. (Same address)
Diavin Diamond Shanghai Co. Ltd., China.
Diavin Jewellery Company, Hong Kong. (Same address)
Diavin Jewellery Pty. Ltd., Australia.
Diavin, Hong Kong. (Same address)
Navin Gems, India.
18960793
0494691
Managing Director: Mr Chirag Arvindkumar Shah
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
(As per registry
dated 25-10-2011)
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Name |
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No. of shares |
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Chirag Arvindkumar SHAH |
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8,000 |
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Shraddha Chirag SHAH |
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2,000 |
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–––––– |
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Total: |
10,000 ===== |
(As per registry
dated 25-10-2011)
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Name (Nationality) |
Address |
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Chirag Arvindkumar SHAH |
Flat K, 33/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Kowloon, Hong Kong. |
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Shraddha Chirag SHAH |
Flat K, 33/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Kowloon, Hong Kong. |
(As per registry
dated 25-10-2011)
|
Name |
Address |
Co.
No. |
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Elegant Secretaries Ltd. |
Room 804, 8/F., Lap Fai Building, 6-8 Pottinger Street, Central, Hong Kong. |
0418716 |
The subject was incorporated on 25th October, 1994 as a private limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Eminent Gold Ltd., name changed to the present style on 28th March, 2001.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds and jewellery products, emerald, precious stones, etc.
Employees: 12.
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan, Southeast Asia, Europe, Middle East, Australia, etc.
Group Annual Turnover: US$155~160 million.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
· Hong Kong Jewelry Manufacturers’ Association, Hong Kong.
· The Indian Chamber of Commerce Hong Kong, Hong Kong.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
Mortgage or Charge: (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Keeping in an active and satisfactory condition.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
· Hang Seng Bank Ltd., Hong Kong.
Standing: Normal.
Having issued 10,000 ordinary shares of HK$1.00 each, Diavin Ltd. is jointly owned by Mr. Chirag Arvindkumar Shah, holding 80% interests; and Mr. Shraddha Chirag Shah, holding 20%. The two Shahs are also directors of the subject. Being Hong Kong ID Card holders, they have got the right to reside in Hong Kong permanently.
The subject is a diamond importer, exporter and wholesaler. It has got an affiliated company Diavin Jewellery Company [Diavin] located at its operating address. The subject and Diavin are engaged in the same lines of business.
Diavin is a subsidiary of Navin Gems in India. Navin Gems is a diamond trading company and sightholder in India.
The subject is trading in carat size diamonds and loose diamonds. Most of the commodities are imported from India.
The subject is carrying the following commodities:-
· Finished Jewellery
Diamond Jewellery
Gem Set Jewellery
Gold Jewellery
Platinum Jewellery
Other Jewellery
· Materials
Polished Diamonds
· Equipment and Services
Stone Setting Equipment
The subject has established its own diamond and jewellery manufacturing facilities in China. The China factory is able to produce 1,000 units of jewellery products monthly.
The China factory manufactures the following commodities:-
· Gold Jewellery — 9-karat, 14-karat, 18-karat, Others
· Platinum Jewellery — Pt900, Pt950, etc.
· Diamond Gold Jewellery — 9-karat, 14-karat, 18-karat, 24-karat, Others
· Diamond Platinum Jewellery
· Gemset Jewellery — 9-karat, 14-karat, 18-karat, 24-karat, etc.
· Gemset Platinum Jewellery — Pt900, Pt950, etc.
The subject is engaged in marketing and distributing rough and cut, polished diamonds. Its products include jewellery products, ranging from diamonds and precious stones such as sapphire and semi-precious stones in 9K, 14K, 18K gold and platinum. Various price levels are offered. Jewellery range includes rings, earrings, pendants, bracelets, necklaces, charms and cufflinks. Commodities are exported to worldwide countries.
The subject is one of the largest stone suppliers among the globe and it has its own stone cutting factory which is able to provide customers with collections of fine diamonds.
Currently, the subject has set up offices in Taipei of Taiwan, Shanghai of China and Sydney of Australia. It has become one of the significant diamond and jewellery suppliers in the Asia Pacific regions with over 110 staff and workers. The subject has got its own in-house designers.
The annual turnover of the subject and its affiliated companies amounts to US$155 to 160 million. Business is rather active.
As the history of the subject in Hong Kong is about seventeen years and six months, on the whole, consider it good for normal business engagements.
REMARKS:
Property information of the company:-
1. Property Location: Unit 6 on 7/F., Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.
Owner: Diavin Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
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Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
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01-08-2007 |
- |
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
2. Property Location: Unit 6 on 10/F., Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.
Owner: Diavin Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
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30-09-2008 |
- |
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
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Date |
Particulars |
Amount |
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01-08-2007 |
Instrument: Mortgage Property: 187/19,060th parts or shares of and in The Remaining Portion of Kowloon Inland Lot No. 7072, Kowloon Inland Lot No. 8670, Kowloon Inland Lot No. 8567 and Kowloon Inland Lot No. 7074 (Unit 6 on 7/F. of Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
To secure all sums from time to time advanced by the Lender to the Borrower whether alone or jointly with any person and outstanding in respect of general banking facilities |
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30-09-2008 |
Instrument: Mortgage Property: 191/19,060th parts or shares of and in The Remaining Portion of Kowloon Inland Lot No. 7072, Kowloon Inland Lot No. 8670, Kowloon Inland Lot No. 8567 and Kowloon Inland Lot No. 7074 (Unit 6 on 10/F. of Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
To secure all sums from time to time advanced by the Lender to the Borrower whether alone or jointly with any person and outstanding in respect of general banking facilities |
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30-09-2008 |
Instrument: Rental Assignment Property: 191/19,060th parts or shares of and in The Remaining Portion of Kowloon Inland Lot No. 7072, Kowloon Inland Lot No. 8670, Kowloon Inland Lot No. 8567 and Kowloon Inland Lot No. 7074 (Unit 6 on 10/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 |
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.12 |
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UK Pound |
1 |
Rs.87.08 |
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Euro |
1 |
Rs.70.15 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<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.