MIRA INFORM REPORT

 

 

Report Date :

24.08.2013

 

IDENTIFICATION DETAILS

 

Name :

OCEAN  BLUE  DIAM  LTD.

 

 

Registered Office :

c/o PAN Pacific Consultants Ltd.,Room 1207, 12/F., Wing Tuck Commercial Centre, 177-183 Wing Lok Street, Sheung Wan

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

08.08.2012

 

 

Com. Reg. No.:

60198770

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of diamonds

 

 

No. of Employees :

1.

 

 

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 :

New Business

Payment Behaviour :

Unknown

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 & address

 

OCEAN  BLUE  DIAM  LTD.

 

 

ADDRESS:       Unit 22, Room C, 7/F., Grand Building, 22 Granville Circuit, Tsimshatusi, Kowloon, Hong Kong.

 

PHONE:           852-3624 5183

 

 

 

MANAGEMENT

 

Managing Director:  Mr. Chirag Prakash Chandra Shah

 

 

 

SUMMARY

 

Incorporated on:                        8th August, 2012.

 

Organization:                             Private Limited Company.

 

Capital:                                     Nominal:  HK$2,000,000.00

                                           Issued:    HK$10,000.00

 

Business Category:                   Diamond Trader.

 

Employee:                                1.

 

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

 

Banking Relation:                       Satisfactory.


 

ADDRESS:

 

Registered Office:-

c/o PAN Pacific Consultants Ltd.

Room 1207, 12/F., Wing Tuck Commercial Centre, 177-183 Wing Lok Street, Sheung Wan, Hong Kong.

 

Operating Office:-

Unit 22, Room C, 7/F., Grand Building, 22 Granville Circuit, Tsimshatusi, Kowloon, Hong Kong.

 

 

Associated Company

 

Dia Jewel Co. Ltd.

160-490 ITF Silom Palace, 22/F., Silom Road, Suriyawong Bang Rak, Bangkok 10500, Thailand.

[Tel: 66-2-634 0449    Fax: 66-2-634 0591]

 

 

BUSINESS REGISTRATION NUMBER

 

 60198770

 

 

COMPANY FILE NUMBER

 

1784152

 

 

MANAGEMENT

 

Managing Director:  Mr. Chirag Prakash Chandra Shah

 

 

CAPITAL

 

Nominal Share Capital: HK$2,000,000.00 (Divided into 2,000,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$10,000.00

 

 

 

SHAREHOLDER  

(As per registry dated 08-08-2012)

Name

 

No. of shares

Chirag Prakash Chandra SHAH

 

10,000

=====

 

 

DIRECTORS  

(As per registry dated 08-08-2012)

Name

(Nationality)

 

Address

Jaynam Alkesh SANGHAVI

157/15, Jawahar Nagar, Goregaon (W), Mumbai 400 062, M.S., India.

 

Chirag Prakash Chandra SHAH

160-490 ITF Silom Palace, 22/F., Silom Road, Suriyawong Bang Rak, Bangkok 10500, Thailand.

 

 

SECRETARY 

(As per registry dated 08-08-2012)

Name

Address

Co. No.

PAN Pacific Consultants Ltd.

Room 1207, 12/F., Wing Tuck Commercial Centre, 177-183 Wing Lok Street, Sheung Wan, Hong Kong.

1254491

 

 

HISTORY

 

The subject was incorporated on 8th August, 2012 as a private limited liability company under the Hong Kong Companies Ordinance.

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

 

Employee:                                   1.

 

Commodities Imported:                India, other Asian countries, etc.

 

Markets:                                       Hong Kong, Southeast Asia, other Asian countries, etc.

 

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

 

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

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:              HK$2,000,000.00 (Divided into 2,000,000 shares of HK$1.00 each)

 

Issued Share Capital:                HK$10,000.00

 

Mortgage or Charge:-

Date of Security Over Deposits with the Bank (Fixed Deposits) Limited Company - Under Seal:  28-01-2013

 

Amount:                     All monies in any currency owing by the Depositor to the chargee at any time

Property:                   HK$10,000 deposit A/C 640-165270-838 (0001)

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

 

Profit or Loss:            Too early to offer an opinion.

 

Condition:                   Business is under development.

 

Facilities:                    Making fairly active use of general banking facilities.

 

Payment:                    Slow but correct.

 

Commercial Morality:  Satisfactory

 

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

 

Standing:                     Small.

 

 

GENERAL

 

Having issued 10,000 ordinary shares of HK$1.00 each, Ocean Blue Diam Ltd. is wholly owned by Chirag Prakash Chandra Shah who is an Indian.  The directors of the subject are Chirag Prakash Chandra Shah and Jaynam Alkesh Sanghavi.  Currently the former is residing in Bangkok, Thailand.

The subject commenced business in August 2012.  Its operating address is in a private building located at Unit 22, Room C, 7/F., Grand Building, 22 Granville Circuit, Tsimshatusi, Kowloon,  Hong Kong.  This is also the residence of the subject’s representative in Hong Kong.  The subject can be reached at your given phone number 852-3624 5183.

The subject’s registered address is in the office of a consultant firm known as PAN Pacific Consultants Ltd. located at Room 1207, 12/F., Wing Tuck Commercial Centre, 177-183 Wing Lok Street, Sheung Wan, Hong Kong.  This firm is also the corporate secretary of the subject.

The subject is a diamond importer, exporter and wholesaler.  It is trading in loose, polished and cut diamonds.  Most of the commodities are imported from India.  Prime markets are Hong Kong, Thailand and the other Asian countries.  Business is still under development.

To our knowledge, the subject has got an associated company known as Dia Jewel Co. Ltd. in Bangkok, Thailand.  This company is also a diamond trader and operated by Chirag Prakash Chandra Shah.

The subject has had a representative or employee in Hong Kong who is also an Indian.  History in Hong Kong is just over a year.

On the whole, since the history of the subject is short in Hong Kong, consider it good for normal business engagements on L/C basis.

 


 

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.64.68

UK Pound

1

Rs.100.79

Euro

1

Rs.86.30

 

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%)

 

 

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