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Report Date : |
06.04.2013 |
IDENTIFICATION DETAILS
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Name : |
NIRU DIAMONDS (H.K.) LTD. |
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Registered Office : |
Unit E & F, 16/F., |
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Country : |
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Date of Incorporation : |
07.02.2001 |
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Com. Reg. No.: |
31651260 |
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Legal Form : |
Private Limited Company. |
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Line of business : |
Importer, exporter and wholesaler all kinds of loose and polished diamonds. |
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No. of Employees : |
8 |
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
NIRU DIAMONDS
(H.K.) LTD.
ADDRESS: Unit E & F, 16/F., 8
Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2368 2475, 2368 9937
FAX: 2368 2459
E-MAIL: kalpesh@niru.co.il
Managing Director: Mr. Kalpesh
Mahendra Shah (Mobile: 9247 7916)
Incorporated on: 7th
February, 2001.
Organization: Private
Limited Company.
Capital: Nominal: HK$24,180,010.00
Issued: HK$24,180,010.00
Business Category: Diamond Trader.
Employees:
8.
Main Dealing Banker: The Royal Bank of Scotland N.V., Hong Kong Branch.
Banking Relation: Satisfactory.
Registered Head Office:-
Unit E & F, 16/F., 8 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
Holding Company:-
New Century Marketing Ltd., Hong Kong.
Associated Companies:-
Niru Group of Companies
Amore Jewels Pvt. Ltd., India.
Azores Trade & Investments Ltd., Israel.
Niru (New York) Ltd., USA.
Niru (Swiss) S.A., Switzerland.
Niru Diamonds (M.E.) LLC, UAE.
Niru Diamonds Israel (1987) Ltd., Israel.
Niru Diamonds Ltd., Israel.
Niru Diamonds Ltd., Thailand.
Sim Diam Pvt. Ltd., India.
etc.
31651260
0746330
Managing Director: Mr. Kalpesh
Mahendra Shah
Nominal Share Capital: HK$24,180,010.00 (Divided into 2,418,001 shares
of HK$10.00 each)
Issued Share Capital: HK$24,180,010.00
(As per registry dated 07-02-2012)
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Name |
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No. of shares |
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New Century Marketing Ltd., Hong Kong. |
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2,418,000 |
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Kalpesh Mahendra SHAH |
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1 |
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–––––––– |
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Total: |
2,418,001 ======= |
(As per registry dated 07-02-2012)
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Name (Nationality) |
Address |
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Kalpesh Mahendra SHAH |
Flat L, 4/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom,
Kowloon, Hong Kong. |
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Bhavini Kalpesh SHAH |
Flat L, 4/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom,
Kowloon, Hong Kong. |
(As per registry dated 07-02-2012)
|
Name |
Address |
Co. No. |
|
Dhun’s Management Services Ltd. |
7/F., Man On Commercial Building, |
0027006 |
The subject was incorporated on 7th February, 2001 as a private limited liability
company under the Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of loose and polished diamonds.
Employees: 8.
Commodities Imported: Israel, India, other Asian countries, etc.
Markets: Hong
Kong, China, other Asian countries, Europe, etc.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
Nominal Share Capital: HK$24,180,010.00 (Divided into 2,418,001
shares of HK$10.00 each)
Issued Share Capital: HK$24,180,010.00
Mortgage or Charge:-
Date of Debenture: 23-09-2008
Amount: General
banking facilities
Property: All
the Company’s undertaking and property and assets whatsoever and wheresoever
both present and future including all book and other debts revenues and claims
Mortgagee: ABN
AMRO Bank N.V., Hong Kong Branch.
[Now known as The Royal Bank of Scotland N.V.]
Profit or Loss: Making a small profit every year.
Condition:
Business is
active.
Facilities:
Making active
use of general banking facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Banker:
The Royal
Bank of Scotland N.V., Hong Kong Branch.
Standing:
Good.
Niru Diamonds (H.K.) Ltd. is a wholly owned subsidiary of New Century
Marketing Ltd. which is a Hong Kong-based firm.
The subject in fact is a member of Niru Group of Companies [Niru] which
were founded in 1979 in Israel. The
Israel firm is known as Niru Diamonds Israel (1978) Ltd. [Niru Israel]. Niru Israel is a global leader engaged in
manufacturing and selling Baguette, Princess and Square Cut diamonds. Its head office is located at Maccabi, 1
Jabotinsky, Suite 2242, Ramat Gan, Israel 52520.
The subject is chiefly trading in polished diamonds which are
manufactured by the Group.
Established in 1979 by Ranjeet Barmecha, Niru is a global leader in
manufacturing and marketing long and square diamonds. It also provides Swiss watch market with
precision cutting and setting services.
The production facilities of Niru are in China, Sri Lanka and Israel. The technologies of these factories came from
Israel chiefly as well as from China.
The annual exports of Niru in polished diamonds amounted to US$110 to
121 million. Business is good and
active.
Niru now has set up associated companies in Switzerland, New York of the
United States, Dubai of the United Arab Emirates, Bangkok of Thailand, Mumbai
of India besides the subject and the one in Tel Aviv of Israel.
Niru’s associated companies in India are the following two firms:-
Sim Diam Pvt. Ltd.
Amore Jewels Pvt. Ltd.
Both firms are in Mumbai, India.
In recent years, the Group has set up a new firm in Israel known as
Azores Trade & Investments Ltd.
In Hong Kong, the subject re-exports the polished diamonds to Asian
countries and Europe. Its business is
chiefly handled by Mr. Kalpesh Mahendra Shah who is an Indian. He is a Hong Kong ID Card holder and has
got the right to reside in Hong Kong permanently.
K. M Shah is also a minor shareholder of the subject.
As the history of the subject is about twelve years in Hong Kong,
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.54.88 |
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1 |
Rs.83.54 |
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Euro |
1 |
Rs.70.90 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
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.