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Report Date : |
23.08.2013 |
IDENTIFICATION DETAILS
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Name : |
JK
DIAM LTD. |
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Registered Office : |
Flat F1 (B), 11/F., Phase 1, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
17.05.2010 |
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Com. Reg. No.: |
52287468 |
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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
(including loose diamonds and white diamonds) and jewellery products |
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No. of Employees : |
02 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Company |
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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 |
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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 |
JK DIAM LTD.
Flat F1 (B), 11/F., Phase 1, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-5634 9000, 3996 8742
FAX: 852-3996 8742
E-MAIL: jkdiamhk@gmail.com
Managing Director: Mr. Shaileshkumar Popatlal Lukhi
Incorporated on: 17th May, 2010.
Organization: Private Limited Company.
Capital: Nominal: HK$3,500,000.00
Issued: HK$3,500,000.00
Business Category: Diamond Trader.
Employee: 2.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Flat F1 (B), 11/F., Phase 1, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
Associated
Company:-
J.K. Star
G-9 Prasad Chambers Tata Road, 1 Opera House, Mumbai-400004, India.
[Tel: 9122-2366 9647; 2366 9648; Mobile: 91 9820 165478
E-mail: info@jkstar.in ]
52287468
1456817
· Managing Director: Mr. Shaileshkumar Popatlal Lukhi
· Contact Persons: Mr. Sameer A. Vora (Mobile: 852-9561 1795)
· Mr. Gary Shanghani (Contact No.: 852-5634 9000)
Nominal Share Capital: HK$3,500,000.00 (Divided into 3,500,000 shares of HK$1.00 each)
Issued Share Capital: HK$3,500,000.00
(As per registry
dated 17-05-2013)
|
Name |
|
No. of shares |
|
Shaileshkumar Popatlal
LUKHI |
|
3,500,000 ======= |
(As per registry
dated 17-05-2013)
|
Name (Nationality) |
Address |
|
Shaileshkumar Popatlal LUKHI |
7-A, Giriraj Co-op. Hsg. Soc.
Ltd., 11-Altamount Road, Mumbai-26, India. |
(As per registry
dated 17-05-2013)
|
Name |
Address |
Co.
No. |
|
Lodestar Secretaries Ltd. |
13/F., Wah Kit Commercial Centre, 302 Des Voeux Road
Central, Hong Kong. |
0113023 |
The subject was incorporated on 17th May, 2010 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Flat C, 7/F., Han Chung Mansion, 8‑10 Hankow Road, Tsimshatsui, Kowloon, Hong Kong. moved the present address in April, 2013.
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
Employee: 2.
Commodities Imported: India, other Asian countries, Europe, etc.
Markets: Hong Kong, other Asian countries, Europe, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$3,500,000.00 (Divided into 3,500,000 shares of HK$1.00 each)
Issued Share Capital: HK$3,500,000.00
Increase of
Nominal Capital:-
|
From |
HK$10,000.00 |
to |
HK$3,500,000.00 |
on |
11-04-2011 |
Alternation of
Issued Capital:-
|
Initially |
paid up |
HK$ 10,000.00 |
|
11-04-2011 |
paid up |
HK$3,490,000.00 |
|
|
|
––––––––––––––– |
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Total: |
paid up |
HK$3,500,000.00 ============== |
Profit or Loss: Made a small profit in 2012.
Condition: Business keeps on improving.
Facilities: Making fairly active use of general banking facilities.
Payment: Met trade commitments on time.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Having issued 3.5 million ordinary shares of HK$1.00 each, JK Diam Ltd. is wholly owned by Mr. Shaileshkumar Popatlal Lukhi who is an Indian. He is also the only director of the subject. He is an India passport holder and does not have the right to reside in Hong Kong permanently.
Formerly the subject had just issued 10,000 ordinary shares of HK$1.00 each, increased to the present number in April 2011.
Incorporated in May 2010, the subject moved to the present address in April, 2013.
The subject has two employee in Hong Kong. One of them is known as Mr. Sameer A. Vora who is the marketing manager of the subject. Sameer A. Vora can be reached at his mobile phone number 852-9561 1795.
The subject can also be contacted at your given phone number 852‑5634 9000. The contact person is Mr. Gary Shanghani who is also an Indian. He is the other employee of the subject. We can reach him at this phone number. Currently Gary Shanghani is in India and he will be back to Hong Kong in September, 2013.
According to Gary Shanghani, he is purchasing loose diamonds in India.
When Shaileshkumar Popatlal Lukhi is not in Hong Kong, Gary Shanghani and Sameer A. Vora are fully responsible for the subject’s business.
The subject is a diamond importer, exporter and wholesaler. Most of its commodities are loose diamonds and white diamonds, which are imported from India. Another significant product of the subject is diamond ring. Products are marketed in Hong Kong or re-exported to the other Asian countries, North America and even Central and South America. Business keeps on improving in Hong Kong.
According to the subject, it is a leading supplier in NATTS diamonds in the Mumbai market of India. Now it has targeted on the east Asian market while Hong Kong is the foothold. This is the reason why the subject has been set up. The subject can supply all kinds of NATTS diamonds ranging from US$30.00 to 500.00. It also can supply white Natts and white diamonds in all sizes.
The followings are
the main sizes of its diamonds:-
· +000 -2 (0.003 -0.008 cts.);
· +11, +14 etc.;
· +2 - 61⁄2 (0.009 - 0.021 cts.);
· +61⁄2 - 8 (0.025 - 0.035 cts.);
· +8 - 11 (0.039 - 0.079 cts.); &
· 1⁄5, 1⁄4, 1⁄3, 3⁄8, etc.
The subject has got an associated company in India known as “J.K. Star” which is in Mumbai. J.K. Star is trading in the same kinds of products as the subject. It is also the subject’s main supplier. Mr. Shaileshkumar Popatlal Lukhi is also the representative of J.K. Star.
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 booth No. is S425-01.
According to the subject, it also receives OEM orders. It was able to make a very small profit in 2012.
As the history of the subject in Hong Kong is just over three years, on the whole, consider it good for normal business engagements on L/C basis or in very small credit amounts for the time being.
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.65.42 |
|
UK Pound |
1 |
Rs.102.09 |
|
Euro |
1 |
Rs.87.32 |
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 |
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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 |
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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 |
|
---- |
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.