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Report Date : |
08.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
DHARAM
CREATIONS (HK) LTD. |
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Registered Office : |
c/o Sovereign Secretaries (HK) Ltd., Suite 1601-1603, 16/F., Kinwick Centre, 32 Hollywood Road, Central |
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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 : |
07 employees |
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 |
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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
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
DHARAM CREATIONS
(HK) LTD.
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
Managing Director: Mr. Manishkumar Vallabhbhai Mangukia
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.
Registered Office:-
c/o Sovereign Secretaries (HK) Ltd.
Suite 1601-1603, 16/F., Kinwick Centre, 32 Hollywood Road, Central, Hong Kong.
Head Office:-
Unit 7, 1/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
Associated/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.
Dharm International LLC, USA.
Dharmanandan Diamonds Pvt. Ltd., India.
34748434
0910307
Managing Director: Mr. Manishkumar Vallabhbhai Mangukia
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
(As per registry
dated 07-07-2012)
|
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 === |
(As per registry
dated 15-08-2012)
|
Name (Nationality) |
Address |
|
Vipulbhai Purshottambhai SUTARIYA |
Flat A, 5/F., Kimberly Mansion, 15 Austin Avenue, Tsimshatsui, Kowloon, Hong Kong. |
|
Hareshbhai Ramajibhai PATEL |
Flat D, 3/F., Tower 21, Laguna Verde, Laguna Grande, Hunghom, Kowloon, Hong Kong. |
|
Manishkumar Vallabhbhai MANGUKIA |
Flat G, 27/F., Tower 23A, Laguna Verde, Ocean Vista, Hunghom, Kowloon, Hong Kong. |
(As per registry
dated 07-07-2012)
|
Name |
Address |
Co.
No. |
|
Sovereign Secretaries (HK) Ltd. |
Suite 1601-1603, 16/F., Kinwick Centre, 32 Hollywood Road, Central, Hong Kong. |
0280990 |
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 1601‑1603, 16/F., Kinwick Centre, 32 Hollywood Road, Central, Hong Kong, moved to the present address with effect from 25th August, 2008.
The subject moved its registered address to Suite 1601-1603, 16/F., Kinwick Centre, 32 Hollywood Road, Central, Hong Kong where is the operating office of Sovereign Secretaries (HK) Ltd. with effect from 7th July, 2012. However, its operating office is still located at Unit 7, 1/F., Chevalier House, 45‑51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer and Exporter.
Lines: All kinds of diamonds and jewellery.
Brand name: “Dharmanandan Diamonds”.
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.
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: Good.
Dharam Creations (HK) Ltd. was jointly owned
by three Indian and an India firm. Its
old holding company Dharmanandan Diamonds Pvt. Ltd. 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 while each of them 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, square diamonds, branded
diamonds, princess, marques, pears, baguettes, etc. Its jewellery products include rings,
earrings, necklaces, pendants, etc. Most
of the products bear the brand name Dharmanandan Diamonds.
Its products are exported to China, South
Korea, India, Southeast Asia, Africa, the Middle East, Central & South
America, Belgium, the United Kingdom, the United States, Canada, Australia,
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 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 history of the subject in Hong Kong is
over eight years and two 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 |
|
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.
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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.
-
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.51.62 |
|
UK Pound |
1 |
Rs.83.57 |
|
Euro |
1 |
Rs.67.17 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.