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Report Date : |
08.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
CRYSTAL GEMS (HK) LTD. |
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Registered Office : |
Room 901, 9/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
18.04.1988 |
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Com. Reg. No.: |
38177625 |
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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 |
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No. of Employees : |
6. (Including associate) |
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 – 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 |
CRYSTAL GEMS (HK)
LTD.
Room 901, 9/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon,
Hong Kong.
PHONE: 2721 8608, 6900 4525
FAX: 2723 9704
E-MAIL: info@crystalgems.com.hk
Managing Director: Mr. Prasannkumar Kantilal Shah
Establishment: 18th April, 1988. (Partnership)
Incorporated on: 13th July, 2007.
Organization: Private Limited Company.
Capital: Nominal: HK$15,700,000.00
Issued: HK$15,700,000.00
Business Category: Diamond
Trader.
Employees: 6. (Including associate)
Main Dealing Banker: Antwerpse DiamantBank
NV
(also known as Antwerp Diamond Bank NV), Hong Kong Branch.
Banking Relation: Satisfactory.
CRYSTAL GEMS (HK) LTD.
Head Office:-
Room 901, 9/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon,
Hong Kong.
Holding Company:-
Sanghavi Exports International Private Ltd., India.
Associated/Affiliated
Companies:-
Sanghavi Group of Companies
Aagam Exports, Hong Kong.
Crystal Gems Ltd., Hong Kong.
(Same address)
Dynamic Design Group Inc., USA.
Sanghavi Diamond Mfg. Pvt. Ltd., India.
Sanghavi Diamonds Inc., USA.
Sanghavi Exports, Hong Kong.
Sanghavi Exports, India.
Sanghavi Far East Pte. Ltd., Singapore.
Sanghavi Jewel Pvt. Ltd., India.
Sanghavi Jewellery Tokyo Co. Ltd., Japan.
Super Diam, Hong Kong.
etc.
38177625
1149269
Managing Director: Mr.
Prasannkumar Kantilal Shah
Nominal Share Capital: HK$15,700,000.00 (Divided into 15,700,000 shares
of HK$1.00 each)
Issued Share Capital: HK$15,700,000.00
(As per registry dated 13-07-2012)
|
Name |
|
No. of shares |
|
Sanghavi Exports International Private Ltd. 502 Prasad Chambers, Opera House, Mumbai-400004, India. |
|
15,700,000 ======== |
(As per registry dated 10-12-2012)
|
Name (Nationality) |
Address |
|
Prasannkumar Kantilal SHAH |
Flat A, 18/F., Tower 2, Harbourfront Landmark, 11 Wan Hoi Street,
Hunghom, Kowloon, Hong Kong. |
|
Vaishali Prasanna SHAH |
Flat A, 18/F., Tower 2, Harbourfront Landmark, 11 Wan Hoi Street,
Hunghom, Kowloon, Hong Kong. |
|
Kalpesh Vasantlal SANGHAVI |
19, Kailash Niketan Society, 24, L.D. Ruparel Marg, Walkeshw Ar,
Mumbai - 400 006, India. |
(As per registry dated 13-07-2012)
|
Name |
Address |
Co. No. |
|
Setu Dilipbhai MORAKHIA |
Flat B4, 15/F., Block B, Hong Yuen Court, 1‑5 Tak Shing
Street, Joran, Kowloon, Hong Kong. |
R336829(6) |
The subject was incorporated on 13th July, 2007 as a private limited
liability company under the Hong Kong Companies Ordinance. It was set up to take over the business of
Sanghavi Exports which was a partnership company established on 18th April,
1988 bearing business registration number 11749114.
Originally the subject was registered under the name of Sanghavi Exports
Ltd., name changed to the present style on 28th July, 2010.
Initially the subject was located at Block 3D, 12/F., Victoria Centre,
15 Watson Road, Hong Kong, moved to Room 2208, 22/F., Melbourne Plaza, 33
Queen’s Road Central, Hong Kong in May 1988; to Room 602, 6/F., Trans Hong Kong
Commercial Building, 41-43 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong in
August 1989; to Flat B, 11/F., Hang Lung Bank Building, 46-48 Granville Road,
Tsimshatsui, Kowloon, Hong Kong in August 2006; to Room 901, 9/F., Hilder
Centre, 2 Sung Ping Street, Hunghom, Kowloon, Hong Kong in late 2008, to 16A,
Wah Fai Mansion, 38‑40 Granville Road, Tsimshatsui, Kowloon, Hong Kong in
October 2009 and further moved to the present address in January 2012.
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.
Employees: 6.
(Including associate)
Commodities Imported: India,
Belgium, other European countries, etc.
Markets: Japan, Southeast Asia, Europe,
Middle East, Scandinavia, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$15,700,000.00
(Divided into 15,700,000 shares of HK$1.00 each)
Issued Share Capital: HK$15,700,000.00
Profit or Loss: Making a small profit every year.
Condition: Keeping in an active manner.
Facilities: Making active use of general
banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Bankers:-
Antwerpse
DiamantBank NV
(also known as Antwerp Diamond Bank NV), Hong Kong Branch.
Bank of India,
Hong Kong Branch.
Standing: Good.
Having issued 15.7 million ordinary shares of HK$1.00 each, Crystal Gems
(HK) Ltd. is almost a wholly-owned subsidiary of by Sanghavi Exports
International Private Ltd. [Sanghavi] which is an India-based firm.
The former name of the subject was Sanghavi Exports Ltd., name changed
to the present style in July 2010.
The subject is trading as Sanghavi Exports, a Hong Kong-registered firm
located at the same address.
The directors of the subject are Prasannkumar Kantilal Shah, Vaishali
Prasanna Shah and Kalpesh Vasantlal Sanghavi.
The former two are Hong Kong ID Card holders and have got the right
to reside in Hong Kong permanently while the third is an India passport
holder. The third was newly appointed in
December 2012.
The subject is an associated company of Crystal Gems Ltd. [Crystal Gems]
which is also located at its operating address.
Having issued 5 million ordinary shares of HK$1.00 each, Crystal Gems is
jointly owned by Mr. Amitkumar Sevantilal Sanghavi, holding 99% interests, and
Mr. Prasannkumar Kantilal Shah, holding just 1%.
The subject and Crystal Gems are engaged in the same lines of business
and under the same management.
The subject is a diamond importer, exporter and wholesaler.
Sanghavi was set up by the Sanghavi brothers. Sanghavi and its associates and subsidiaries
have formed a group of companies known as Sanghavi Group which is also a
diamond trader.
The subject is an affiliated company of the Sanghavi Group.
The Sanghavi Group was founded by four Sanghavi brothers, Vasant, Kirti,
Ramesh and Chandrakant in the late 70s.
Under the flagship company Sanghavi Exports, the Group has developed
extensively in the diamond industry.
Today, the Group’s core business is exporting polished diamonds and
diamond studded jewellery and also engaged in manufacturing diamonds and
jewellery. Sanghavi Exports is ISO
9001:2000 certified and also a Government Recognized Star Trading House and a
Diamond Trading Company Sightholder.
The Group has set up a large network of marketing offices in 12 major
cities of the world, main ones are in the United States, Belgium, Japan,
Australia, Canada, Singapore, and the other European countries. Its customers came from over 50 countries.
The Group’s diamond manufacturing factory, Sanghavi Diamond Mfg. Pvt.
Ltd. is located in Surat. This factory
is one of the largest manufacturers in Asia.
Sanghavi Group has five production facilities in Surat and Mumbai. The company has made an investment of US$50
million in these production facilities which are employing over 3,500 employees
directly.
The Group’s finished products with sizes ranging from 0.01 points to 3.00
carats.
Sanghavi Group has an affiliate group known as Dynamic Design Group Inc.
[DD Group] in the United States.
Since 1995 DD Group Inc. has been supplying high quality diamond jewelry
and providing an extensive selection of styles finished to jewelry stores
across the United States. It has been
sourcing rough diamonds from major Diamond Centers (such as Ghana, Congo,
Moscow and Israel) and its products come directly from its diamond factory in
India, which stands as one of the largest in India today.
The Group is the subject’s main supplier.
The subject is supported by the Group and the Sanghavi brothers. In Hong Kong, the subject’s business is
chiefly handled by Mr. Prasannkumar Kantilal Shah. Annual sales turnover is quite
significant. History is over
24 years.
Since the subject is an associated company of the Sanghavi Group, 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.
-
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 –
-
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.61.39 |
|
|
1 |
Rs.94.17 |
|
Euro |
1 |
Rs.81.70 |
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.