|
Report Date : |
24.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
DIAMART LTD. |
|
|
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Registered Office : |
Room 1724, 17/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon, |
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Country : |
Hong Kong |
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Date of Incorporation : |
09.10.2000 |
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Com. Reg. No.: |
31379959 |
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|
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Distributor and Wholesaler of all kinds of
diamonds |
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No. of Employees : |
07 |
RATING & COMMENTS
|
MIRAs Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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 |
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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
DIAMART LTD.
ADDRESS: Room 1724, 17/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2377 1635, 2877 3191
FAX: 852-2801 4910, 2801 4925
E-MAIL: nishit@diamart.diminco.com
Managing Director: Mr. Deepak Kumar Gupta
Incorporated on: 9th October, 2000.
Organization: Private Limited Company.
Capital: Nominal:US$4,000,000.00
Issued: US$4,000,000.00
Business Category: Diamond Distributor and Trader.
Employees: 7. (Including affiliates)
Main Dealing Banker: The Royal Bank of Scotland N.V., Hong Kong Branch.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 1724, 17/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon, Hong Kong.
Mailing Address:-
P.O. Box 96871, Tsim Sha Tsui Post Office, Kowloon, Hong Kong.
Holding Company:-
Digico Holdings Ltd., Hong Kong. (Same address)
Affiliated
Companies:-
4CS Diamonds Distributors, Hong Kong. (Same address)
Gitanjali Gems Ltd., India.
Trans Exim Ltd., Hong Kong. (Same address)
31379959
0733837
Managing Director: Mr. Deepak Kumar Gupta
Contact Person: Mr. Yard Chirayu, Mr. Pengting Quan
Nominal Share Capital: US$4,000,000.00 (Divided into 4,000,000 shares of US$1.00 each)
Issued Share Capital: US$4,000,000.00
SHAREHOLDERS: (As per registry dated 09-10-2013)
|
Name |
|
No. of shares |
|
Digico Holdings Ltd., Hong Kong. |
|
3,999,999 |
|
Deepak Gunvantlal GANDHI |
|
1 |
|
|
|
|
|
|
Total: |
4,000,000 ======= |
DIRECTORS: (As per registry dated 09-10-2013)
|
Name (Nationality) |
Address |
|
Deepak Krishnarao KULKARNI |
Flat No. S11, Block B-2, Lok Bharti, Marol Maroshi Road, Ansdheri (E), Mumbai-S9, M.S., India. |
|
Deepak Kumar GUPTA |
C/703, Green Vatika Chsl, Off.W.E. Highway Dattani Park, Kandivali East, Mumbai 400101, India. |
|
Deepak Gunvantlal GANDHI |
Kanji Patel Chawl, R-No.5, Dhanji Wadi, Quvari Road, Malad(E), Bombay-97, India. |
SECRETARY: (As per registry dated 09-10-2013)
|
Name |
Address |
Co. No. |
|
VMC Secretaries Ltd. |
Room 1617-1618, 16/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon, Hong Kong. |
0750831 |
The subject was incorporated on 9th October, 2000 as a private limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of 4CS Diamonds Distributors Ltd., name changed to the present style on 14th February, 2001.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer, Distributor and Wholesaler.
Lines: All kinds of diamonds,
Employees: 7. (Including affiliates)
Commodities Imported: India, other Asian countries, Belgium, etc.
Markets: Hong Kong, other Asian countries, Europe, US, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: US$4,000,000.00 (Divided into 4,000,000 shares of US$1.00 each)
Issued Share Capital: US$4,000,000.00
Increase of Nominal Capital:-
|
From |
US$3,000,000.00 |
to |
US$4,000,000.00 |
on |
25-11-2009 |
Alternation of Issued Capital:-
|
Initially |
paid up |
US$3,000,000.00 |
|
25-11-2009 |
paid up |
US$1,000,000.00 |
|
|
|
|
|
Total: |
paid up |
US$4,000,000.00 ============= |
Mortgage or Charge (since 2005): (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Business is active.
Facilities: Making rather active use of general banking facilities.
Payment: Regularly met.
Commercial Morality: Satisfactory.
Bankers:-
The Royal Bank of Scotland N.V., Hong Kong Branch.
ICICI Bank Ltd., Hong Kong Branch.
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
UCO Bank, Hong Kong Branch.
Standing: Good.
Diamart Ltd. had issued 3 million ordinary shares of US$1.00 each but increased to 4 million ordinary shares of US$1.00 each in November 2009. The minor shareholder of the subject Deepak Gunvantlal Gandhi is also a director of the subject.
The subject is a wholly-owned subsidiary of Digico Holdings Ltd. [Digico Holdings], a Hong Kong-registered firm located at the same address. Digico Holdings is an associated company of the Digico Group [Digico] which is an Indian group of companies.
The subject is a diamond trader. It imports diamonds from India and Belgium. After processing in Hong Kong or China, finished products are exported to Japan, other Asian countries, the Middle East, etc. The subject is a wholesaler/retailer especially involved in importing and exporting of polished diamonds. The followings are some of its products:
Wedding Rings, South Sea Pearl Jewelry Set, Ladies Rings, Diamond Pendants, Diamond Earrings, Diamond Rings, etc.
Prime markets are the United States, China, the other Asian countries and Europe. The subject deals in diamonds below 50 point in rounds, princess and baguettes.
Established in 1966, Digico is one of the earliest established diamond houses in the world. Digico has established jewellery manufacturing facilities of its own, built an distribution and marketing infrastructure, introduced multiple diamond jewellery brands and created incremental downstream demand for the diamonds that are manufactured in its own factories worldwide. Digico has been a DTC sightholder since 1967 (one of the first companies to be granted a sight). Digico has a strong presence at every level of the diamond business, right from sourcing diamonds at competitive prices from DTC as sightholder to retailing its products through a vast network of self owned and franchised stores. Digico is the pioneer of branded jewellery in India and has several well established brands in its arsenal to tap the continuously growing branded jewellery market in India and the rest of the world. The list includes well-know and well established brands such as Nakshatra, Gili, Asmi, Sangini, DDamas, Mi Amor and Giantti. Digico has a strong retail presence in India and some foreign countries through its retail stores of Samuels, Rogers and Verite.
Digico has had modernized diamond cutting and polishing facilities in India, Bangkok and Qingdao City of China. Digico has set up sales and marketing offices across Europe, Southeast Asia, the United States, Japan and the Middle East.
Digico announced on 16th April, 2008 in Tokyo, Japan, the takeover bid for Verite, the jewellery retail major based out of the Japanese capital. Listed at the Tokyo Stock Exchange since 1991, Verite has over one hundred stores across Japan and boasts of annual sales of over US$100 million. The takeover has made Digico become a more and more significant jewellery trader in Asia.
Digicos India subsidiary, Gitanjali Gems Ltd. [Gitanjali], is today one of the largest diamond exporting public limited companies in India. Gitanjali has received over 50 National and Council Awards from the Ministry of Commerce for outstanding exports. Besides, Gitanjali has developed 26 unique cuts that are in the process of patenting.
Gitanjali was established in 1966 and is one of the earliest diamond houses in India. It is one of the leading diamond and jewellery exporting companies in India.
Gitanjalis unique business model encompasses a wide range of activities like rough diamond sourcing, diamond manufacturing and distributing, jewellery manufacturing, jewellery branding and retailing at the domestic and international markets. Today, Gitanjali has a presence spread across the globe in countries such as the United States, Europe, Russia, Italy, the Middle East, India, China, Thailand, Japan, Singapore and Malaysia.
The subject is fully supported by Digico. Its business is chiefly handled by Mr. Yard Chirayu.
The subject has got a number of affiliated companies located at its operating address, namely, 4CS Diamonds Distributors, Trans Exim Ltd., etc.
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.
The history of the subject in Hong Kong is over thirteen years.
On the whole, consider it good for business engagements.
Property information of the company:-
Property Location: Unit No. 1724 on 17/F., Star House, 3 Salisbury Road, Kowloon, Hong Kong.
Owner: Diamart Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
04-03-2005 |
- |
Belgian Bank, Hong Kong Branch. [Business was taken over by Industrial & Commercial Bank of China (Asia) Ltd.] |
Mortgage to secure general banking facilities |
(Since 2005)
|
Date |
Particulars |
Amount |
|
04-03-2005 |
Instrument: Debenture Property: The Borrower hereby charges to the Lender by way of first floating charge all its accounts receivable, book debts, undertakings and all the property, assets and rights and other chooses in action, whatsoever and wheresoever, both present and future Mortgagee: Belgian Bank, Hong Kong Branch. [Business was taken over by Industrial & Commercial Bank of China (Asia) Ltd.] |
To secure all moneys in respect of general banking facilities |
|
04-03-2005 |
Instrument: Mortgage Property: 24/19,328th parts or shares of and in Section A of Kowloon Marine Lot No. 10 (Unit No. 1724 on 17/F. of Star House, 3 Salisbury Road, Kowloon, Hong Kong.) Mortgagee: Belgian Bank, Hong Kong Branch. [Business was taken over by Industrial & Commercial Bank of China (Asia) Ltd.] |
To secure all moneys in respect of general banking facilities |
|
29-04-2005 |
Instrument: Undertaking Relating to Deposits Property: Receipt No. Value Date Due Date Amount EM 1463 09-05-2005 09-08-2005 US$600,252.50 Mortgagee: UCO Bank, Hong Kong Branch. |
Liabilities means all and any liabilities, sole or joint, actual or contingent, quantified or not, now or hereafter owing to the Bank by the Company |
|
21-09-2007 |
Instrument: Undertaking Relating to Deposits Property: Receipts No. Value Date Due Date Amount 2005 EM 44 13-08-2007 13-11-2007 US$666,566.28 2007 EM 91 02-10-2007 02-01-2008 US$400,000.00 Mortgagee: UCO Bank, Hong Kong Branch. |
Liabilities means all and any liabilities, sole or joint, actual or contingent, quantified or not, now or hereafter owing to the Bank by the Company |
|
25-08-2008 |
Instrument: Debenture Property: The Chargor charges to the Bank by way of floating charge all the undertaking and all property, assets and rights of the Chargor present and future wherever situate from time to time as continuing security for the due and punctual payment to the Bank of all monies Mortgagee: ICICI Bank Ltd., Hong Kong Branch. |
All monies |
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.
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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.
-
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. Indias 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.61.99 |
|
|
1 |
Rs.101.37 |
|
Euro |
1 |
Rs.84.82 |
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 SCs 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.