MIRA INFORM REPORT

 

 

Report Date :

27.04.2013

 

IDENTIFICATION DETAILS

 

Name :

HONG  KONG  DIAMOND  LTD.

 

 

Registered Office :

Block A, 10/F., Garden Mansion, 154-156 Austin Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

02.07.2009

 

 

Com. Reg. No.:

50850970

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of diamonds and gemstones, etc.

 

 

No. of Employees :

02 employees

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Small Company 

 

 

Payment Behaviour :

No Complaints

 

 

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 – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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

 


Company name

 

HONG  KONG  DIAMOND  LTD.

 

 

Company ADDRESS

 

Block A, 10/F., Garden Mansion, 154-156 Austin Road, Tsimshatsui, Kowloon, Hong Kong.

PHONE:            2362 4222

FAX:                 2362 4777

 

 

MANAGEMENT

 

Managing Director:  Mr. Kuntal Deepak Shah

 

 

SUMMARY

 

Incorporated on:            2nd July, 2009.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$10,000,000.00

Issued:             HK$10,000,000.00

 

Business Category:       Diamond Trader.

 

Employees:                  2.

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:          Satisfactory.


Company ADDRESS

 

Registered Head Office:-

Block A, 10/F., Garden Mansion, 154-156 Austin Road, Tsimshatsui, Kowloon, Hong Kong.

 

Business name:-

TNK Gems, Hong Kong.  (Same address)

 

Associated Company:-

Hongkong Diamond Trading Co. Ltd., Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

50850970

 

 

COMPANY FILE NUMBER

 

1349898

 

 

MANAGEMENT

 

Managing Director:  Mr. Kuntal Deepak Shah

 

 

CAPITAL

 

Nominal Share Capital: HK$10,000,000.00 (Divided into 10,000,000 shares of HK$1.00 each)

Issued Share Capital:     HK$1.00

 

 

SHAREHOLDER  

(As per registry dated 16-08-2012)

 

Name

 

No. of share

Kuntal Deepak SHAH

 

10,000,000

========

 


DIRECTOR    

(As per registry dated 02-07-2012)

 

Name

(Nationality)

 

Address

Kuntal Deepak SHAH

Block A, 10/F., Garden Mansion, 154-156 Austin Road, Tsimshatsui, Kowloon, Hong Kong.

 

 

SECRETARY

(As per registry dated 02-07-2012)

 

Name

Address

Co. No.

Exchequer Ltd.

Room 1102, 11/F., Oriental Centre, 67-71 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.

0803651

 

 

HISTORY

 

The subject was incorporated on 2nd July, 2009 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Formerly the subject was located at Room 1102, 11/F., Oriental Centre, 67‑71 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong where is the operating address of Longmart Consultants Ltd., moved to Room 3, Flat F2, 9/F., Phase 2, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong in August 2011; moved to the present address in early 2012.

 

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of diamonds and gemstones, etc.

 

Employees:                  2.

 

Commodities Imported: India, Belgium, other European countries, etc.

 

Markets:                        Hong Kong, Japan, other Asian countries,

 

Terms/Sales:                 L/C, T/T, etc.

 

Terms/Buying:               L/C, T/T, D/P, etc.

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$10,000,000.00 (Divided into 10,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$1.00

 

Profit or Loss:               Keeping in balance account in 2011.

 

Condition:                     Business is improving.

 

Facilities:                      Making fairly active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

Banker:                         The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:                      Small.

 

 

GENERAL

 

Hong Kong Diamond Ltd. was incorporated on 2nd July, 2009 as a diamond trading company.

 

The subject had just issued 1 ordinary share of HK$1.00 which was owned by Mr. Kuntal Deepak Shah who is an Indian.  In 2012, the subject created 9,999,999 shares to make up its number of shares to 10,000,000 of the same value.  The newly created shares were all allotted to Shah.

 

Shah is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.  He is also the only director of the subject.

 

He can be reached at his mobile phone number 852-6020 4044.

 

Now the subject’s registered and operating office is located at Block A, 10/F., Garden Mansion, 154-156 Austin Road, Tsimshatsui, Kowloon, Hong Kong.  This is a residential building which is not trespassed by outsiders.

 

The subject is a diamond trader.  It is a diamond importer, exporter and wholesaler.  It is engaged in manufacturing loose diamonds like white goods, round, marquise, pears, tappers, buggets, black diamonds, and rose cut diamonds.  Most of the commodities, chiefly loose diamonds, are imported from India and European countries.  Prime markets are Hong Kong, Japan, other Asian countries.  Business is improving.

 

The subject has had a wholly-owned subsidiary TNK Gems, a Hong Kong‑registered firm located at the same address.  TNK Gems is also the business name of the subject.

 

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 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 subject’s business is chiefly operated solely by Shah himself.  History in Hong Kong is just over three years.

On the whole, consider it good for normal business engagements in small credit amounts.


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.

-            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.

-            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.

-            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.

-            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 –

 

-            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.

 

-            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.54.29

UK Pound

1

Rs.83.88

Euro

1

Rs.70.68

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.