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Report Date : |
02.11.2012 |
IDENTIFICATION DETAILS
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Name : |
ETERNAL DIAMONDS CORPORATION LTD. |
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Registered Office : |
Unit B, 16/F., |
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Country : |
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Date of Incorporation : |
18.12.2002 |
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Com. Reg. No.: |
33232303 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Importer, Exporter, Wholesaler and Retailer of all kinds
of diamonds and jewellery, etc. |
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No. of Employees : |
15 |
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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 (31.03.2011) |
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.
Source : CIA
ETERNAL DIAMONDS
CORPORATION LTD.
ADDRESS: Unit B, 16/F., World Trust
Tower, 50 Stanley Street, Central, Hong Kong.
PHONE: 2333 5534, 2522 9350
FAX: 2356 2680, 2522 2945
E-MAIL: eternal.diamonds@yahoo.com.hk
Managing Director: Mr. Ashish
Bajranglal Bagaria
Incorporated on: 18th
December, 2002.
Organization: Private
Limited Company.
Capital: Nominal: US$2,000,000.00
Issued: US$2,000,000.00
Business Category: Diamond Trader.
Annual Turnover: US$400~410 million.
Employees:
15.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
Registered Head Office:-
Unit B, 16/F., World Trust Tower, 50 Stanley Street, Central, Hong Kong.
Holding Company:-
Everstar Capital (Asia) Ltd., British Virgin Islands.
33232303
0826414
Managing Director: Mr. Ashish
Bajranglal Bagaria
Nominal Share Capital: US$2,000,000.00 (Divided into 2,000,000 shares of
US$1.00 each)
Issued Share Capital: US$2,000,000.00
(As per registry dated 16-01-2012)
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Name |
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No. of shares |
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Everstar Capital (Asia) Ltd. 263 Main Street, P.O. Box 2196, Road Town, Tortola, British Virgin
Islands. |
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2,000,000 ======= |
(As per registry dated 16-01-2012)
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Name (Nationality) |
Address |
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Ashish Bajranglal BAGARIA |
Unit B, 16/F., World Trust Tower, 50 Stanley Street, Central, Hong
Kong. |
(As per registry dated 18-12-2011)
|
Name |
Address |
Co. No. |
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Louis Lai Co. Secretarial Services Ltd. |
9/F., Surson Commercial Building, 140‑142 Austin Road, Tsimshatsui,
Kowloon, Hong Kong. |
0686503 |
The subject was incorporated on 18th December, 2002 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject’s registered office was in an accountant firm located
at 1/F., Xiu Ping Commercial Building, 104 Jervois Street, Sheung Wan,
Hong Kong known as Fung & Pang CPA Ltd. which had handled its
correspondences and documents. The
subject changed its registered address to Flat F2-27, 2/F., Phase 2, Hang Fung Industrial
Building, 2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong with effect from 10th
June, 2010. This was also the old
operating address of the subject. It has
moved to the present address in January 2012.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter, Wholesaler and Retailer.
Lines: All
kinds of diamonds and jewellery, etc.
Employees: 15.
Commodities Imported: India, Belgium, UAE, etc.
Markets: Hong
Kong, USA, UAE, India, other Asian countries, etc.
Annual Turnover: US$400~410 million.
Terms/Sales: Credit of 30,
60-90 days.
Terms/Buying: Credit
of 90-120 days.
Nominal Share Capital: US$2,000,000.00 (Divided into 2,000,000 shares
of US$1.00 each)
Issued Share Capital: US$2,000,000.00
Alternation of Capital:-
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Initially |
paid up |
US$
10,000.00 |
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16-01-2012 |
paid up |
US$1,990,000.00 |
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–––––––––––––– |
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Total: |
paid up |
US$2,000,000.00 ============= |
Increase of Nominal Capital:-
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From |
US$100,000.00 |
to |
US$2,000,000.00 |
on |
16-01-2012 |
Profit or Loss: Business is profitable.
Condition:
Keeping in an
active condition.
Facilities:
Making very active
use of general banking facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Very
Good.
Bankers:-
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Industrial & Commercial Bank of China
(Asia) Ltd., Hong Kong.
Standing:
Very Good.
Having issued 2 million ordinary shares of US$1.00 each, Eternal
Diamonds Corporation Ltd. is a wholly-owned subsidiary of Everstar Capital
(Asia) Ltd. which is a BVI-registered firm.
The only director of the subject Mr. Ashish Bajranglal Bagaria is an
Indian merchant. Bagaria is a Hong Kong
ID Card holder and has got the right to reside in Hong Kong permanently.
The subject is trading in diamonds and diamond jewellery. Commodities are chiefly imported from India,
Belgium and the United Arab Emirates.
Products are marketed in Hong Kong, exported to the United State, the
United Arab Emirates, other Asian countries, etc.
The subject is also a loose diamond wholesaler in Hong Kong. The operators of the subject are experienced.
According to the subject, its sales in 2009 was over US$180 million, in
2010 was over US$375 million. Its sales
in 2011 was over US$400 million. It is
predicted that the subject’s business will improve further in the years ahead
as its market share in the United Arab Emirates has been increasing.
The subject’s business is chiefly handled by Bagaria himself.
The history of the subject in Hong Kong is over nine years.
On the whole, consider it good for normal business engagements.
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.53.78 |
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1 |
Rs.86.77 |
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Euro |
1 |
Rs.69.71 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.