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Report Date : |
20.04.2013 |
IDENTIFICATION DETAILS
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Name : |
DIAROUGH (HONG KONG) LTD. |
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Registered Office : |
Unit 1103, 11/F., Tower B, Hunghom Commercial Centre, Ma Tau Wai Road, Hung Hom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
15.12.1992. |
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Com. Reg. No.: |
16799407 |
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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. |
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No. of Employees : |
10 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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) |
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Hong Kong |
A2 |
A2 |
|
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
levies excise duties on only four commodities, namely: hard alcohol, tobacco,
hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. 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 9.1% of total system deposits in Hong
Kong by the end of 2012, an increase of 59% from the previous 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 34.9 million in 2012, 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 2012 mainland Chinese
companies constituted about 46.6% of the firms listed on the Hong Kong Stock
Exchange and accounted for about 57.4% 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,
and less than 2% in 2012. Credit expansion and tight housing supply conditions
caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in
2012. 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
DIAROUGH (HONG
KONG) LTD.
ADDRESS: Unit 1103, 11/F., Tower B, Hunghom Commercial
Centre, Ma Tau Wai Road, Hung Hom, Kowloon, Hong Kong.
PHONE: 2721 2682-901
FAX: 27216576
E-MAIL: neresh@diarough.com
neresh@diaroughhk.com
sales@diaroughhk.com
Managing Director: Mr.
Nareshkumar Hirachand Surana
Incorporated on: 15th
December,1992.
Organization: Private
Limited Company.
Capital: Nominal: HK$200,000.00
Issued: HK$200,000.00
Business Category: Diamond Trader.
Employees:
10.
Main Dealing Banker: ABN AMRO Bank N.V., Hong Kong Branch.
Banking Relation: Good.
Registered Head Office:-
Unit 1103, 11/F., Tower B, Hunghom Commercial Centre, Ma Tau Wai Road,
Hung Hom, Kowloon, Hong Kong.
Holding Company:-
Egon Diamond S.A., Luxembourg.
Associated Companies:-
Aryea International Ltd., Mauritius.
Cavrois Uni-D S.A., France.
D Delight LLC, US.
DIA-CUT D.C.W. Co. Ltd., Thailand.
Diarough (Shanghai) Diamonds Ltd., China.
Diarough Canada Sales Inc., Canada.
Diarough European Sales NV, Belgium.
Diarough Fareast Holdings Pte. Ltd., Singapore.
Diarough Management SARL, Luxembourg.
Diarough N.V., Belgium.
Diarough SICAR SCA, Luxembourg.
Diarough Sourcing SA, Luxembourg.
Egon African Holding Ltd., Mauritius.
Egon Finance International SA., Luxembourg.
Egon Finance S.A., Luxembourg.
Egon Holding S.A., Luxembourg.
Egon International Inc., US.
Egon jewellery S.A., Luxembourg.
Egon Re S.A, Luxembourg.
Mahendra Brothers Exports Pvt. Ltd., India.
Sixth Dimension LLC, US.
Sixth Dimension SA, Luxembourg.
Superior Diamonds Pty. Ltd., Australia.
Teemanee Manufacturing Co. Pty. Ltd., Botswana.
Uni-Creation Inc, US.
Uni-Design Elite Jewellery Pvt. Ltd., India.
Uni-Design Europe BVBA, Belgium.
Unidesign Fareast Ltd., Hong Kong.
Uni-Design Jewellery India Pvt. Ltd., India.
Unidesign Jewellery Pvt. Ltd., India.
etc.
16799407
0394538
Managing Director: Mr.
Nareshkumar Hirachand Surana
Contact Person: Ms. Hima Prince
Nominal Share Capital: HK$200,000.00 (Divided into 200,000 shares of
HK$1.00 each)
Issued Share Capital: HK$200,000.00
(As per registry dated 15-12-2012)
|
Name |
|
No. of shares |
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Egon Diamond S.A. 23, avenue Monterey Luxembourg l-2086, Luxembourg. |
|
200,000 ====== |
(As per registry dated 15-12-2012)
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Name (Nationality) |
Address |
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Nareshkumar Hirachand SURANA |
House 37, Boulevard Du Palais, The Beverly Hills, 23 Sam Mun Tsai
Road, Tai Po, New Territories, Hong Kong. |
|
Nishit Mahendra Kumar PARIKH |
Room 1103, 11/F., Tower B, Hunghom Commercial Centre, 37 Ma Tau Wai
Road, Hunghom, Kowloon, Hong Kong. |
(As per registry dated 15-12-2012)
|
Name |
Address |
Co. No. |
|
TMF Secretaries (HK) Ltd. |
36/F., Tower Two, Times Square, 1 Matheson Street, Causeway Bay, Hong
Kong. |
0099444 |
The subject was incorporated on 15th December,1992 as a private limited
liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Harbour Diamond
Investment Ltd., name changed to the present style on 4th May, 1993.
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.
Employees: 10.
Commodities Imported: India, Belgium, other Asian countries, etc.
Markets: Hong Kong, China, other Asian
countries, Europe, North America, etc.
Terms/Sales:
L/C, Advanced T/T,
etc.
Terms/Buying: L/C,
D/P, O/A, etc.
Hong Kong Jewelry Manufacturers’
Association, Hong Kong.
Hong Kong Jewellery & Jade Manufacturers
Association, Hong Kong.
[Membership No. #AM083-00]
The Indian Chamber of Commerce Hong Kong,
Hong Kong.
Nominal Share Capital: HK$200,000.00 (Divided into 200,000 shares of
HK$1.00 each)
Issued Share Capital: HK$200,000.00
Mortgage or Charge: (See
attachment)
Profit or Loss: Making a small
profit every year.
Condition:
Keeping in a
satisfactory manner.
Facilities:
Making rather
active use of general banking facilities.
Payment:
Met trade
commitments as required.
Commercial Morality: Satisfactory.
Bankers:-
ABN AMRO Bank N.V., Hong Kong Branch.
The Bank of New York Mellon, New York.
Standing:
Good.
Diarough (Hong Kong) Ltd. is a wholly-owned subsidiary of Egon Diamond
S.A. which is a Luxembourg-registered company.
The subject is a member of Diarough Group [Diarough/Group] of companies
while the core member is Diarough N.V., a Belgium-based firm. The directors of the subject are also the
founders and CEOs of Diarough N.V.
The subject is trading in the same commodities of Diarough. It is trading in almost all qualities and
sizes- from “stars” to large special stones.
Main products are the followings:-
Loose diamonds, diamond set, fancy diamonds, 2.67-4.01 carat loose
diamonds, etc.
It also has GIA, HRD, AGS & IGI laser inscribed certified
stones. On the other hand, it is able to
provide outstanding new cuts for individual customers.
Diarough is also one of the world’s leading manufacturers of Natural
Fancy colour diamonds.
Diarough N.V. operates as a diamond dealer in Belgium and
internationally. It designs,
manufactures, and supplies diamond jewellery.
The company offers fancy colour diamonds and white diamonds. It sells its products to manufacturers, polished
diamond wholesalers, and diamond jewellery retailers. The company has factories
in India, Thailand, Botswana, South Africa, and Canada. Diarough N.V. was founded in 1960 and is
based in Antwerp, Belgium.
Diarough sources its rough diamonds from all major international miners
including DTC, BHP and Rio Tinto.
Now, Diarough has set up associated companies in many countries of the
world. Business is active and
significant.
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 booths No. are 3CON-012 and S230-01.
The contact person of the subject is Ms. Hima Prince. Annual sales turnover is very
significant. History in Hong Kong is
over 20 years.
On the whole, consider the subject good for normal business engagements.
|
Date |
Particulars |
Amount |
|
28-09-2012 |
Instrument: Security Agreement Property: As beneficial owner, charges the Account to the Security Agent by way
of first fixed charge as follow:- Bank: ABN-AMRO BANK N.V. Address: 14/F., Lincoln
House, 979 King’s Road, Quarry Bay, Hong Kong. Account Name: Diarough (Hong
Kong) Ltd. US$Saving Account No.: 60-48-900 US$Current Account No.: 60-48-889 HK$Savings Account No.: 60-48-900 HK$Current Account No.: 60-48-889 Mortgagee: The Bank of New York Mellon |
As a continuing security for the discharge on the Security Agent’s
demand of the Secured Obligations and compliance on the Security Agent’s
demand with the provisions of the Agency Agreement dated 28th September, 2012 |
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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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 –
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Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
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The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market
liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.03 |
|
|
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.70.49 |
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 |
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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 |
|
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 |
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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 |
|
<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.