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Report Date : |
06.08.2013 |
IDENTIFICATION DETAILS
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Name : |
HARSHDIAM |
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Formerly Known As : |
HARSH DIAM |
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Registered Office : |
Flat B-2, 15/F., Hankow Centre, 4-4B Ashley Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
29.09.1993. |
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Com. Reg. No.: |
17395066-000-09 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter, Distributor and Wholesaler of all kinds of diamonds, precious stones |
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No. of Employees : |
2 |
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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
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
HARSHDIAM
[Formerly known as HARSH DIAM]
ADDRESS: Flat B-2, 15/F., Hankow
Centre, 4-4B Ashley Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2877 3191
FAX: 852-2801 4910
E-MAIL: jayesh@netvigator.com
Manager: Mr. Jayeshkumar
Indravadan Shah
Establishment: 29th
September, 1993.
Organization: Sole
Proprietorship.
Capital:
Not
disclosed.
Business Category: Diamond Distributor and Trader.
Employees:
2.
Main Dealing Banker: The Royal Bank of Scotland N.V., Hong Kong Branch.
Banking Relation: Satisfactory.
Head Office:-
Flat B-2, 15/F., Hankow Centre, 4-4B Ashley Road, Tsimshatsui, Kowloon,
Hong Kong.
Associated Companies:-
4C’s Diamonds Distributors, Hong Kong.
(same address)
Hassan Jewellery
PO Box 28948, UAE.
[Tel: 971-4-2256 399]
Hassan Gems L.L.C.,
PO Box 21892, Dubai, UAE.
[Tel: 971-4-2268 645,
971-50-6518 025
Fax: 971-4-2262 346]
17395066-000-09
Manager: Mr. Jayeshkumar
Indravadan Shah
Name: Mr. Jayeshkumar Indravadan
SHAH
Residential Address: Flat A-3,
9/F., Hankow Centre, 41-51 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 29th September, 1993 as a sole
proprietorship concern owned by Mr. Jayeshkumar Indravadan Shah under the Hong
Kong Business Registration Regulations.
Originally the subject was registered under the name of Harsh Diam, name
changed to the present style on 2nd November, 1993.
At the very beginning, the subject was located at Flat A-3, 9/F., Hankow
Centre, 41-51 Peking Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat C-3,
10/F. of the same building in April 1995, and further to Flat B-2, 15/F. of the
same building in April 2008.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter, Distributor and Wholesaler.
Lines: All
kinds of diamonds, precious stones.
Employees: 2.
Commodities Imported: India, Belgium, Thailand, other Asian countries, etc.
Markets: Hong
Kong, other Asian countries, Middle East, Europe, US, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
The Indian Chamber of Commerce Hong Kong, Hong Kong.
Capital: Not
disclosed.
Profit or Loss: Making a very small profit every year.
Condition:
Business is
rather 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: Small.
Harshdiam is a sole proprietorship set up and owned by Mr. Jayeshkumar
Indravadan Shah who is an Indian. Shah is
a Hong Kong ID Card holder and has got the right to reside in Hong Kong
permanently.
The subject commenced business in September 1993. Before setting up the subject, Shah and Mr.
Chetan Chinubhai Choksi who is also an Indian set up a partnership concern
known as 4C’s Diamonds Distributors on 11th March, 1988 under the Hong Kong
Business Registration Regulations.
However, Shah retired from the firm on 1st April, 2000.
At the very beginning, 4C’s Diamonds Distributors was located at
Flat A-3, 9/F., Hankow Centre, 4‑4B Ashley Road, Tsimshatsui, Kowloon,
Hong Kong where was the residential address of Shah.
Located in a private building, the subject’s registered address is also
the new residential address of Shah. It
is likely that the subject has not updated its information filed with the
Inland Revenue Department Business Registration Office of the Hong Kong SAR
Government.
The subject is a diamond, gemstone and jewellery product trader. It is a diamond importer, exporter and
wholesaler. It is trading in the
following commodities:-
Single-cut diamond, fullcut loose diamond, carat size diamonds, blue
sapphire.
Polished diamonds, loose and cut diamonds are imported from India,
Belgium and the other European countries.
Its loose diamonds like Marquise, Pears, Tappers, Baguettes and Rose Cut
Diamonds usually range from 0.05 cts to 0.60 cts.
Gemstones and diamonds are marketed in Hong Kong, exported to India,
Japan, the other Asian countries, the Middle East, Europe, etc. Business is rather steady.
The subject has had the following two associates in the United Arab
Emirates:-
Hassan Gems L.L.C.;
Hassan Jewellery.
The phone number of the former firm is 971-4-2256399 while the latter is
971-4-2268 645. Hassan Jewellery is a
jewellery store engaged in jewellery retailing.
Hassan Gems L.L.C. is a diamond and jewellery trader, retailer,
wholesaler, and distributor. Both firms
are in Dubai, the United Arab Emirates.
The subject has got regular suppliers in India as Shah has developed
business ties with a number of diamond factories in Mumbai, India. Besides, regular customers also have been
maintained, especially in the United Arab Emirates. The subject’s business is chiefly handled by
Shah himself. Business is profitable and
steady.
As the history of the subject in Hong Kong is over nineteen years, 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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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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.82 |
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|
1 |
Rs.92.96 |
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Euro |
1 |
Rs.80.73 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
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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.