MIRA INFORM REPORT

 

 

Report Date :

20.12.2013

 

IDENTIFICATION DETAILS

 

Name :

PRISM JEWELLERY LTD.

 

 

Registered Office :

Room 1214, 12/F., Peninsular Square, 18 Sung On Street, Hunghom, Kowloon,

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

17.05.2012

 

 

Com. Reg. No.:

59817199

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer and Exporter of all kinds of diamonds and jewellery products, gold and silver products, precious stones

 

 

No. of Employees :

10

 

RATING & COMMENTS

 

MIRA’s Rating :

NB

 

RATING

STATUS

PROPOSED CREDIT LINE

--

NB

New Business

 

--

 

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 and address

 

PRISM JEWELLERY LTD.

 

 

ADDRESS:       Room 1214, 12/F., Peninsular Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.

 

PHONE:            852-3523 0390,  3523 0391

 

FAX:                 852-2314 8519

 

E-MAIL:            hrd@prismgroup.in

 

 

MANAGEMENT

 

Managing Director:  Mr. Nimesh Piyush Mehta, Tony

 

 

SUMMARY

 

Incorporated on:              17th May, 2012.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$20,000,000.00

                                    Issued:  HK$10,000.00

 

Business Category:        Diamond & Jewellery Trader.

 

Employees:                   10.

 

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

 

Banking Relation:           Satisfactory.


 

ADDRESS

 

Registered Head Office:-

Room 1214, 12/F., Peninsular Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.

 

Associated/Affiliated Companies:-

Diasqua Group of Companies

Billion City (H.K.) Ltd., Hong Kong.  [Trading as Diafuego]

Diafuego, Belgium.

Diaglobe BVBA, Belgium.

Diaglobe Inc., USA.

Diamond Dealers HK Ltd., Hong Kong.

Diasqua (Pacific) Pty. Ltd., Australia.

Diasqua (Thailand) Co. Ltd., Thailand.

Diasqua Impex Pte. Ltd., Singapore.

Diasqua Inc., USA.

Diasqua India Pvt. Ltd., India.

Diasqua International Ltd., Hong Kong.

Diasqua International Ltd., Taiwan Branch.

Diasqua Middle East LLC, UAE.

Diasqua Nippon Co. Ltd., Japan.

Diasqua Singapore Pte. Ltd., Singapore.

Pretty Jewellery International Ltd., Hong Kong.

etc.

 

Prism Group of Companies

Anand Enternational, India.

Colo Jewellery Company, Hong Kong.

Prism (USA) Inc, USA.

Prism Diamond Co. Ltd., Thailand.

Prism International, India.

Prism Jewellery Company, Hong Kong.

Prismdia Ltd., Hong Kong.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

59817199

 

 

COMPANY FILE NUMBER 

 

1746162

 


MANAGEMENT

 

Managing Director:  Mr. Nimesh Piyush Mehta, Tony

Contact Person:  Mr. Sureshkumar Ravjibhai Ghevriya

 

 

CAPITAL

 

Nominal Share Capital: HK$20,000,000.00 (Divided into 20,000,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$10,000.00

 

 

SHAREHOLDERS:         (As per registry dated 17-05-2013)

Name

 

No. of shares

Sureshkumar Ravjibhai GHEVRIYA

 

2,500

Hareshkumar Ravjibhai GHEVARIYA

 

2,500

Nimesh Piyush MEHTA

 

2,500

Rajul Nimesh MEHTA

 

2,500

 

 

––––––

 

Total:

10,000

=====

 

DIRECTORS:    (As per registry dated 17-05-2013)

Name

(Nationality)

 

Address

Nimesh Piyush MEHTA

Flat B & C, 16/F., Block 3, Parc Palais, 28 Wylie Road, Ho Man Tin, Kowloon, Hong Kong.

 

Hareshkumar Ravjibhai GHEVARIYA

Room 1214, 12/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.

 

Rajul Nimesh MAHTA

Flat B & C, 16/F., Block 3, Parc Palais, 28 Wylie Road, Ho Man Tin, Kowloon, Hong Kong.

 

Sureshkumar Ravjibhai GHEVRIYA

23/F., Tower 15A, Laguna Verde, 8 Laguna Avenue, Hunghom, Kowloon, Hong Kong.

 

SECRETARY:    (As per registry dated 17-05-2013)

Name

Address

Co. No.

Elegant Secretaries Ltd.

Room 804, 8/F., Lap Fai Building, 6‑8 Pottinger Street, Central, Hong Kong.

0418716

 


 

HISTORY

 

The subject was incorporated on 17th May, 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 and Exporter.

 

Lines:                           All kinds of diamonds and jewellery products, gold and silver products, precious stones

 

Employees:                   10.

 

Materials/Commodities:  Imported from India, Belgium, Israel, other European countries, etc.

 

Markets:                       Japan, India, other Asian countries, Middle East, Europe, North America, etc.

 

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

 

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

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$20,000,000.00 (Divided into 20,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$10,000.00

 

Profit or Loss:                Too early to offer an opinion.

 

Condition:                      Business is under development.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory

 

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

 

Standing:                      Normal.

 

 

GENERAL

 

Having issued 10,000 ordinary shares of HK$1.00 each, Prism Jewellery Ltd. is equally owned by Mr. Sureshkumar Ravjibhai Ghevriya, Mr. Hareshkumar Ravjibhai Ghevariya, Mr. Nimesh Piyush Mehta and Mr. Rajul Nimesh Mehta.

They are closely related with the following companies:

Prismdia Ltd., Hong Kong

Prism International, India

Prism Diamond Co. Ltd., Thailand

Prism (USA), Inc., United States

The subject belongs to the Prism Group of companies.

The subject has had an associated company located at the same address known as Prismdia Ltd. [Prismdia].  The subject and Prismdia are engaged in the same lines of business.

Prism Group was formally established in 1997 as a manufacturer, exporter and wholesaler of treated fancy colour natural diamonds in a wide range of sizes, shapes, colours & clarity.  Later diversified in diamond studded jewellery and wrist watch manufacturing for luxury market.

Most of Prism’s products are exported to the United States, while the remained products are distributed evenly to Europe, Asia Pacific and the Middle East.

The followings are the main products of the subject:

Rings, earrings, pendants, necklaces and bracelets, etc.

Products are made of yellow, pink & white gold, the bright colours of precious stones and the regal brilliance of diamonds.

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. 

The Group usually takes part in the following exhibitions and shows:

USA

JCK Las Vegas Show (May)

Hong Kong

HK Int’l Jewellery Show (Mar)

HK Jewellery & Gem Fair (Jun)

HK Jewellery & Gem Fair (Sep)

HK Int’l Jewelry Manufacturers’ Show (Nov)

Thailand

Bangkok Gems & Jewelry Fair (Feb)

Bangkok Gems & Jewelry Fair (Sep)

Prismdia is a member of Hong Kong Jewelry Manufacturers Association, Hong Kong.

The subject is fully supported by the Prism Group.  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 or in small credit amounts.

 

 


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.62.38

UK Pound

1

Rs.102.15

Euro

1

Rs.85.29

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.