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Report Date : |
27.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
SHEETAL
(FAR EAST) LTD. |
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Registered Office : |
Room 1316, 13/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
03.05.2011 |
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Com. Reg. No.: |
58302462 |
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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, emerald, precious stones. |
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No. of Employees : |
04 (Including
associates) |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 |
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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 |
SHEETAL (FAR EAST) LTD.
Room 1316, 13/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2739 8277, 2739 8299, 2379 1460
FAX: 852-2739 9200, 2739 8211
E-MAIL: bharat.kakadia@sheetals.net
reception.hongkong@sheetals.net
Managing Director: Mr. Girish Vasharambhai Bagadia
Incorporated on: 3rd May, 2011.
Organization: Private Limited Company.
Capital: Nominal: HK$100,000.00
Issued: HK$100,000.00
Business Category: Diamond Trader.
Employees: 4. (Including associates)
Main Dealing Banker: Wing Lung Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 1316, 13/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.
Holding Company:-
Sheetal Golden Works (India) Private Ltd., India.
Affiliated/Associated
Companies:-
Belmark Diam Co., Hong Kong.
Diamond Mine Corporation Ltd., Hong Kong.
Sheetal Europe B.V.B.A., Belgium.
Sheetal Manufacturing Co. Pvt. Ltd., India.
58302462
1595440
Managing Director: Mr. Girish Vasharambhai Bagadia
Contact Person: Mr. Mrgirish Bagadia (Phone: 852-2739 1460)
Nominal Share Capital: HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)
Issued Share Capital: HK$100,000.00
(As per registry
dated 03-05-2013)
|
Name |
|
No.
of shares |
|
Sheetal Golden Works
(India) Private Ltd. 1001 Prasad Chambers, Opera House, Mumbai, 400 004, India. |
|
100,000 ====== |
(As per registry
dated 03-05-2013)
|
Name (Nationality) |
Address |
|
Bharatkumar Vallabhbhai KAKADIA |
1001 Prasad Chambers, Opera
House, Mumbai, 400 004, India. |
|
Girish Vasharambhai BAGADIA |
Flat D, 13/F., Block 13, Site
11 Bauhinia Mansions, 6 Tak Hong Street, Whampoa Garden, Hunghom,
Kowloon, Hong Kong. |
(As per registry
dated 03-05-2013)
|
Name |
Address |
Co.
No. |
|
Taxbase Consultants Ltd. |
Room 1408, 14/F., Hollywood Plaza, 610 Nathan Road,
Kowloon, Hong Kong. |
0411324 |
The subject was incorporated on 3rd May, 2011 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.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds and jewellery products, emerald, precious stones.
Brand Name: Sheetal Group, Kiah.
Employees: 4. (Including associates)
Commodities Imported: India, Canada, Russia, Australia, Belgium, other European countries, etc.
Markets: Japan, other Asian countries, Europe, Middle East, US, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)
Issued Share Capital: HK$100,000.00
Profit or Loss: Too early to offer an opinion.
Condition: Business is under development.
Facilities: Making fairly active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory
Banker: Wing Lung Bank Ltd., Hong Kong.
Standing: Satisfactory.
Having issued 100,000 ordinary shares of HK$1.00 each, Sheetal (Far East) Ltd. is a wholly-owned subsidiary of Sheetal Golden Works (India) Private Ltd. [Sheetal] which is an India-based firm.
The managing director of the subject Mr. Girish Vasharambhai Bagadia is also the manager of Belmark Diam Co. which is also located at the same address.
The contact person of the subject Mr. Mrgirish Bagadia, a family member of G. V. Bagadia, can be reached at the phone umber 852-2739 1460.
The subject is
trading in the following commodities:-
GIA Certified and Non-Certified Polished Diamonds Size: 0.01 ct - 20.00 ct Cut: Round, Pear, Marquise, Cushion, Heart, Radiant, Rose-Cut
Colour: D to M, Fancy Colour (Yellow, Champagne/Brown, Pink), White LC, Natts, etc.
The subject also trades in IGI fine jewellery with diamond and gold.
The subject and Sheetal belong to the Sheetal Group.
Established in 1985, Sheetal Group is one of the world’s leading manufacturers of polished diamonds with an annual sales turnover about US$500 million and about 1.1 million polished carats. The provision of highly differentiated products complemented by a wide suite of customer‑focused services has enabled the Group achieve its dominating polished diamond supplier position. Over the years, Sheetal Group has established a strong distribution network with some of the world’s leading polished distributors, jewellery manufacturers and retailers, serving key diamond markets. While the United States continues to be one of the major consumer markets for the Group’s products. Sheetal Group has also become one of the leading polished suppliers to the Chinese and Indian Retailer segments.
The Group has been a Rio Tinto Diamonds customer since 2005. It has more than 600,000 sq. ft. of diamond manufacturing infrastructure capacity in Surat, India. Sheetal Group is also a certified member of the RJC (Responsible Jewellery Council).
Sheetal Group is one of the largest suppliers of Argyle polished diamonds, providing the entire suite of Argyle polished from white, grey, cape to champagne diamonds. The company also provides its customers with Argyle-provenance and Diavik-provenance tracking guarantee upon requirement.
The products of Sheetal Group are exported to worldwide countries. Business is active.
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 1A-A08, S222-01.
The subject is fully supported by the Sheetal Group.
On the whole, consider the subject 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 –
-
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.64.23 |
|
UK Pound |
1 |
Rs.100.01 |
|
Euro |
1 |
Rs.85.93 |
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 |
|
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 |
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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.