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Report Date : |
12.04.2013 |
IDENTIFICATION DETAILS
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Name : |
ASIA DIAM (HK) LTD. |
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Registered Office : |
Suite A, 23/F., Chatham Square, 8 Hart Avenue, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
16.03.2006 |
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Com. Reg. No.: |
36674594 |
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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, precious stones, etc. |
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No. of Employees : |
3 |
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 (31.03.2011) |
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
ASIA DIAM
(HK) LTD.
ADDRESS: Suite A, 23/F., Chatham
Square, 8 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2854 2906
FAX: 2854 2901
E-MAIL: asiadiam@ymail.com
Managing Director: Mr. Jigar
Shailesh Shah
Incorporated on: 16th March, 2006.
Organization: Private
Limited Company.
Capital: Nominal: HK$100,000.00
Issued: HK$100,000.00
Business Category: Diamond Trader.
Employees:
3.
Main Dealing Banker: Wing Lung Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Suite A, 23/F., Chatham Square, 8 Hart Avenue, Tsimshatsui, Kowloon,
Hong Kong.
Associated Company:-
Janam Diamonds Pvt. Ltd.
235, Panchratna Building, 2/F., M.P. Marg, Opera House, Mumbai‑400004,
Maharashtra, India.
[ Tel: (91) 22-2369 0674, 2369 3993
Fax: (91) 22-2363 3390, 2369
5845
E-mail: info@janamdiamonds.com]
36674594
1030798
Managing Director: Mr. Jigar
Shailesh Shah
Nominal Share Capital: HK$100,000.00 (Divided into 100,000 shares of
HK$1.00 each)
Issued Share Capital: HK$100,000.00
(As per registry dated 16-03-2012)
|
Name |
|
No. of shares |
|
Jay Mahendra PARIKH |
|
100,000 ====== |
(As per registry dated 22-11-2012)
|
Name (Nationality) |
Address |
|
Jigar Shailesh SHAH |
8A, Abhilasha Building, 46, A. K. Marg, Mumbai 400036, Maharashtra,
India. |
|
Mayank Babulal SHAH |
Block B, 10/F., Hang Lung Bank Building, Grandville Road, Tsimshatsui,
Kowloon, Hong Kong. |
(As per registry dated 16-03-2012)
|
Name |
Address |
Co. No. |
|
Lodestar Secretaries Ltd. |
13/F., Wah Kit Commercial Centre, 302 Des Voeux Road Central, Hong
Kong. |
0113023 |
The subject was incorporated on 16th March, 2006 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room 1702, 17/F., Far East
Consortium Building, 121 Des Voeux Road Central, Hong Kong, moved to the
present address with effect from 21st August, 2008. The name of the building, which is the
subject located, located at “8 Hart Avenue” is also known as “Chatham Square”.
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, precious stones, etc.
Employees: 3.
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan,
India, other Asian countries, US, Europe, Middle East, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
Nominal Share Capital: HK$100,000.00 (Divided into 100,000 shares of
HK$1.00 each)
Issued Share Capital: HK$100,000.00
Mortgage or Charge: (See attachment)
Profit or Loss: Making a small profit in the past years.
Condition:
Keeping in a satisfactory
manner.
Facilities:
Making rather
active use of general banking facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Good.
Bankers:-
Wing Lung Bank Ltd., Hong Kong.
The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong.
Hang Seng Bank Ltd., Hong Kong.
Dah Sing Bank Ltd., Hong Kong.
Standing: Good.
Having issued 100,000 ordinary shares of HK$1.00 each, Asia Diam (HK)
Ltd. is wholly-owned by Mr. Jay Mahendra Parikh who is an Indian. He is an India passport holder and does not
have the right to reside in Hong Kong permanently. The directors of the subject are Mayank
Babulal Shah and Jigar Shailesh Shah.
J.S. Shah can be reached at his mobile phone number 6333 2573 when
he is in Hong Kong.
Formerly the subject was a wholly-owned subsidiary of Janam Diamonds
Pvt. Ltd. [Janam] which is an India-based firm.
Janman transferred its shares to Parikh on 25th May, 2010. However, the subject still has had business
ties with Janam.
The subject is a loose diamond and white diamond importer, exporter and
wholesaler. It is also a commission
agent. The subject is able to offer
customers with a variety of diamonds with different cuts and carats. Its significant products are polished white
diamonds.
Janam is one of the diamond and jewellery product manufactures in
Mumbai, India. Business is very
active. Janam, founded in 1975 by
Mahendra Amrutlal Parikh, is a family owned and operated business. Over the last three decades, Janam has become
a rather reputable name in the diamond industry worldwide.
Janam is trading in diamonds which sizes range from 0.001 to 0.99
carat. It is using “an eighteen clarity
grading system” to grade its diamonds.
This particular grading method allows for a stringent and meticulous
assortment of each diamond parcel. The
subject is also using this system to grade its diamonds.
Janam is sourcing 100% natural diamonds directly from Kimberly Process
Compliant mines worldwide. The diamonds
are then cut and polished in house at a state-of-the-art factory in Surat,
India. The factory houses approximately
250 workers and utilizes technologically advanced equipment. Now, Janam has had offices in major cities like
Mumbai, Hong Kong and Los Angeles. The
Hong Kong office is the subject.
The subject is a dealer dealing in fine coloured diamonds and rare gem
stones. Products include fancy coloured
diamonds, unusual rose cut and briolette cut diamonds. Most of its products are supplied by Janam in
India.
The subject also imports rough products from Belgium and other European
countries. Rough diamonds are processed
in Hong Kong or China. Finished products
and polished diamonds are exported or re-exported to Japan, India and other
Asian countries, the Middle East, etc.
Business is improving.
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. For instance, it is going to
take part in “HKTDC Hong Kong International Jewellery Show 2014” which will be
held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during
the period of 5th to 9th March, 2014.
Its booth No. is CR-C03.
The subject’s directors are also the Chief Executive Officers of
Janam. The subject’s business is chiefly
handled by Jigar Shailesh Shah.
On the whole, since the history of the subject is over seven years in
Hong Kong, consider it good for normal business engagements.
Property information of
the company:-
1. Property Location: Unit 3 on 11/F., Chevalier House, 45-51
Chatham Road, Kowloon, Hong Kong.
Owner: Asia Diam (HK) Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
21-09-2010 |
- |
Hang Seng Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
|
21-09-2010 |
- |
- ditto - |
Rental assignment |
2. Property Location: Flat 18 on 15/F. of Tower One, The
Metropolis Residence,
8-9 Metropolis Drive, Kowloon, Hong Kong.
Owner: Asia Diam (HK) Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
01-04-2011 |
- |
Dah Sing Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
|
Date |
Particulars |
Amount |
|
21-09-2010 |
Instrument: Mortgage Property: 105/19,060th parts or shares of and in The Remaining Portion of
Kowloon Inland Lot No. 7072, Kowloon Inland Lot No. 8670, 8567 & 7074 (Unit
3 on 11/F. of Chevalier House, 45-51 Chatham Road, Kowloon, Hong Kong.) Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
All moneys |
|
21-09-2010 |
Instrument: Rental Assignment Property: 105/19,060th parts or shares of and in The Remaining Portion of Kowloon
Inland Lot No. 7072, Kowloon Inland Lot No. 8670, 8567 & 7074 (Unit 3 on
11/F. of Chevalier House, 45-51 Chatham Road, Kowloon, Hong Kong.) Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
All moneys |
|
01-04-2011 |
Instrument: Mortgage Property: 49/247,769th parts or shares of and in Kowloon Inland Lot No. 11077
(Flat 18 on 15/F. of Tower One of The Metropolis Residence, 8‑9 Metropolis
Drive, Kowloon, Hong Kong.) Mortgagee: Dah Sing Bank Ltd., Hong Kong. |
All moneys |
|
30-01-2012 |
Instrument: Assignment of Insurance Policy Property: Name of the Iinsured: Shan
Jigar Shailesh Policy No.: 28004449 Effective date of the Policy:
30th January, 2012 Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
To secure all sums of money, debts & liabilities |
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.
-
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.54.53 |
|
|
1 |
Rs.83.59 |
|
Euro |
1 |
Rs.71.33 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.