|
Report Date : |
03.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
B. B.
DIAM (HK) LTD. |
|
|
|
|
Registered Office : |
Room 903, 9/F., Working Port Commercial Building, 3 Hau Fook Street,
Tsimshatsui, Kowloon |
|
|
|
|
Country : |
Hong Kong. |
|
|
|
|
Date of Incorporation : |
09.07.2009 |
|
|
|
|
Com. Reg. No.: |
50879653 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and
jewellery products |
|
|
|
|
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 |
|
Status : |
Satisfactory |
|
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 |
B. B.
DIAM (HK) LTD.
ADDRESS: Room 903, 9/F., Working Port
Commercial Building, 3 Hau Fook Street, Tsimshatsui,
Kowloon, Hong
Kong.
PHONE: 852-2116 9566
FAX: 852-3585 6617
E-MAIL: bbdiamhkltd@gmail.com
bbdiam2009@gmail.com
Managing
Director: Mr. Damjibhai Bhagwanbhai
Vaghani
Incorporated on :
9th July, 2009.
Organization : Private Limited Company.
Capital: Nominal: HK$6,000,000.00
Issued: HK$6,000,000.00
Business
Category : Diamond Trader.
Employees : 3.
Main Dealing
Banker : The Hongkong & Shanghai
Banking Corp. Ltd., Hong Kong.
Banking
Relation : Satisfactory.
Registered
Head Office:-
Room 903, 9/F.,
Working Port Commercial Building, 3 Hau Fook Street, Tsimshatsui, Kowloon, Hong
Kong.
B.B. Diam Ltd.,
India.
B. B. Creations,
India
B. B. Diam Co.
Ltd., Thailand.
B.B. Diam, Hong
Kong.
50879653
1351902
Managing
Director: Mr. Damjibhai Bhagwanbhai
Vaghani
Nominal Share
Capital: HK$6,000,000.00 (Divided into 6,000,000 shares of HK$1.00 each)
Issued Share
Capital: HK$6,000,000.00
(As
per registry dated 09-07-2013)
|
Name |
|
No.
of shares |
|
B. B. Diam Co. Ltd. 322/33
Bangkok Gems & Jewelry Tower, 16/F., Suite-F, Surawongse Road, Siphraya,
Bangrak, Bangkok 10500, Thailand. |
|
1,500,000 |
|
Arvind Bhagvanbhai VAGHANI |
|
4,500,000 |
|
|
|
–––––––– |
|
|
Total: |
6,000,000 ======= |
(As
per registry dated 09-07-2013)
|
Name (Nationality) |
Address |
|
Manjibhai
Bhagwanbhai VAGHANI |
Room 903, 9/F., Working Port Commerical
Building, 3 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong. |
|
Arvind
Bhagvanbhai VAGHANI |
Room 903, 9/F., Working Port Commerical
Building, 3 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong. |
(As
per registry dated 09-07-2013)
|
Name |
Address |
Co.
No. |
|
Champion
Corporate Ltd. |
Unit 907, 9/F., Silvercord Tower 2, 30 Canton Road, Tsimshatsui,
Kowloon, Hong Kong. |
0657221 |
The
subject was incorporated on 9th July, 2009 as a private limited liability
company under the Hong Kong Companies Ordinance.
Formerly
located at Room 904, 9/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom,
Kowloon, Hong Kong, the subject moved to the present address with effect from
13th May, 2010.
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
Brand Name: BB.
Employees: 3.
Commodities
Imported: India, Europe,
etc.
Markets: Hong Kong, other Asian countries, Europe,
Middle East, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share
Capital: HK$6,000,000.00 (Divided
into 6,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$6,000,000.00
Profit or Loss: Making a small profit in 2011 &
2012.
Condition: Business is improving.
Facilities: Making rather active use of general
banking facilities.
Payment: Met trade commitments as required.
Commercial
Morality: Satisfactory.
Banker: The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Having
issued 6 million ordinary shares of HK$1.00 each, B. B. Diam (HK) Ltd. was
jointly owned by Vaghani Bros., holding 60% interests; Thailand B. B. Diam Co.
Ltd. [Thailand B. B. Diam], holding 30%; and Arvind Bhagvanbhai Vaghani, 10%.
On
26th October, 2012, Vaghani Bros. transferred his shares to Thailand B. B. Diam
and Arvind Bhagvanbhai Vaghani respectively.
Now, Thailand B. B. Diam is holding 25% interests while Arvind
Bhagvanbhai Vaghani is holding 75%.
Thailand B. B. Diam was set up in 2007.
The
subject’s ultimate holding company is B.B. Diam Ltd. [India B.B. Diam] which is
an India-based firm. India B.B. Diam is
a diamond product manufacturer and trader.
India
B.B. Diam was set up by Mr. Babubhai B. Vaghani in 1972 in Surat, India. In 1981, he started a factory employing about
100 persons. The factory is known as B.
B. Creations Co.
In
1990, India B.B. Diam set up a sales office in Surat which has become the head
office.
India
B.B. Diam set up a sales office in Mumbai named Vaghani Bros. with Mr. Damjibhai
Bhagwanbhai Vaghani joined in as a partner.
India
B.B. Diam started importing rough diamonds from Belgium and Israel in 1994.
Now,
India B.B. Diam has had about 550 workers in India.
The
subject is a marketing office of India B.B. Diam which is trading in all kinds
of loose diamonds, polished white and coloured diamonds, diamond silver, 14 or
18 karat, jewellery, bracelet, brooch, earring, necklace, pendant, ring, and
others. It is also trading in the
following polished and cut diamonds: asscher cut, baguette, emerald cut, heart
shape, marquise, oblong, oval shape, pear shape, princess cut, round brilliant,
taper, tapered baguette, trilliant, etc.
Most of the products bear the brand name “BB”.
According
to the subject, it trades in “fancy illusion diamonds and jewellery”. It also trades in broken diamonds and scrap
diamonds. Major markets are Asian
countries, Europe, the Middle East and the United States.
In
order to penetrate the international market further, the subject’s associate
B.B. Diam 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 3E-C31.
The
subject is fully supported by its holding company in India and Thailand.
The
subject and India B.B. Diam are chiefly owned by Vaghani family. Its history in Hong Kong is over four years.
On
the whole, consider it good for normal business engagements.
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.60.80 |
|
UK Pound |
1 |
Rs.91.95 |
|
Euro |
1 |
Rs.80.36 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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.