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Report Date : |
26.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
DIANCO
(HK) LTD |
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Registered Office : |
Unit 2, J2, 11/F, Kaiser Estate, Phase 2, 51 Man Yue Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
13.07.2010 |
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Com. Reg. No.: |
52599095 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trader of polished diamond and jewellery products |
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No. of Employees : |
02 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
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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 : |
Slow but Correct |
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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 – September 30th, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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 |
DIANCO (HK) LTD.
Unit 2, J2, 11/F, Kaiser Estate, Phase 2, 51 Man Yue Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-3904 2595
FAX: 852-3904 2594
E-MAIL: sales@dianco.com.hk
Managing Director: Mr. Jigarkumar Sureshchandra Shah
Incorporated on: 13th July, 2010.
Organization: Private Limited Company.
Capital: Nominal: HK$23,400,000.00
Issued: HK$23,400,000.00
Business Category: Jewellery Trader.
Employees: 2.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Unit 2, J2, 11/F, Kaiser Estate, Phase 2, 51 Man Yue Street, Hunghom, Kowloon, Hong Kong.
Holding Company:-
Dianco Singapore Pte. Ltd., Singapore.
Associated
Companies:-
D. Navinchandra Exports Pvt. Ltd., India.
Dianco (Shanghai) Ltd., China.
Dianco B.V.B.A., Belgium.
Dianco DMCC, UAE.
Dianco LLC, UAE.
52599095
1479718
Managing Director: Mr. Jigarkumar Sureshchandra Shah
Nominal Share Capital: HK$23,400,000.00 (Divided into 23,400,000 shares of HK$1.00 each)
Issued Share Capital: HK$23,400,000.00
(As per registry
dated 13-07-2013)
|
Name |
|
No.
of shares |
|
Dianco Singapore Pte. Ltd. 300, Beach Road, # 33-04/06 The Concourse, Singapore 199555. |
|
23,400,000 ======== |
(As per registry
dated 13-07-2013)
|
Name (Nationality) |
Address |
|
Jigarkumar Sureshchandra SHAH |
Flat C, 22/F., Tower 5, The
Greenwood (Phase 1), Laguna Verde, 8 Laguna Verde Avenue, Kowloon, Hong Kong. |
(As per registry
dated 13-07-2013)
|
Name |
Address |
Co.
No. |
|
Top Establishment Ltd. |
Room 2207-2209, 22/F., Tower 2, Lippo Centre, 89
Queensway, Admiralty, Hong Kong. |
0409655 |
The subject was incorporated on 13th July, 2010 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.
Employees: 2.
Commodities Imported: India, other Asian countries, etc.
Markets: Hong Kong, Singapore, Southeast Asia, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, etc.
Nominal Share Capital: HK$23,400,000.00 (Divided into 23,400,000 shares of HK$1.00 each)
Issued Share Capital: HK$23,400,000.00
Increase of
Nominal Capital:-
|
From |
HK$ 780,000.00 |
to |
HK$12,480,000.00 |
on |
14-03-2011 |
|
From |
HK$12,480,000.00 |
to |
HK$23,400,000.00 |
in |
June 2013 |
Alternation of
Issued Capital:-
|
Initially |
paid up |
HK$ 10,000.00 |
|
31-03-2011 |
paid up |
HK$ 770,000.00 |
|
14-03-2011 |
paid up |
HK$11,700,000.00 |
|
June 2013 |
paid up |
HK$10,920,000.00 |
|
|
|
–––––––––––––––– |
|
Total: |
paid up |
HK$23,400,000.00 ============== |
Mortgage or Charge: (See attachment)
Profit or Loss: Made a very small profit in 2012.
Condition: Business is improving.
Facilities: Making fairly active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Bankers:-
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
· ABN AMRO Bank N.V., Hong Kong Branch.
·
Antwerpse DiamantBank NV.
(Also known as Antwerp Diamond Bank NV), Hong Kong Branch.
Standing: Small.
Having issued 23,400,000 ordinary shares of HK$1.00 each, Dianco (HK) Ltd. is wholly owned by Dianco Singapore Pte. Ltd. [Dianco] which is a Singapore-based firm.
The managing director of the subject Mr. Jigarkumar Sureshchandra Shah is a Hong Kong ID holder. He is also the only director of the subject.
The subject is a polished diamond trader. Its range of polished diamonds encompasses a variety of colours, clarities and carats. It offers round brilliants from stars to pointers, in whites, spotted whites. It also offers various types of assortments with excellent grading and adequate volumes, along with GIA, IGI, and HRD certified goods up to 3 carats in D to I colours with clarity ranging from VVS to I3. Its products are marketed in Hong Kong, and exported to Southeast Asia, the Middle East, etc. Business is still under development.
Dianco is a marketing affiliate of D. Navinchandra Exports which was established in 1970. D. Navinchandra Exports is also an affiliated company of Rio Tinto.
Dianco has a direct supply of rough diamonds from Rio Tinto, BHP and Alrosa. Along with the group’s state of the art manufacturing facilities in Surat makes Dianco the preferred supplier of quality polished diamonds to reputed jewellery manufacturers the world over.
Dianco got from Rio
Tinto round brilliants from 0.005 cts to 0.90 cts in:
· Whites from 0.005cts to 0.90cts;
· Light Browns and Light Capes from 0.01cts to 0.17cts;
· VVS-I3 qualities; &
· GIA, HRD and IGI certified goods, from 0.90cts to 3.00cts.
The subject has had an associated company in China known as Dianco (Shanghai) Ltd. This company is located at B706 A, China Diamond Exchange, 1701 Century Avenue, Pudong, Shanghai, China.
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 just over three years.
On the whole, consider it good for normal business engagements on L/C basis or in very small credit amounts.
|
Date |
Particulars |
Amount |
|
05-06-2012 |
Instrument: Debenture Property: 1) All stocks shares bonds and securities of any kind whether marketable or otherwise and all other interests including loan capital of the Company 2) All book and other debts revenues and claims 3) The uncalled capital goodwill and all patents patent applications trade marks trade names registered designs and copyrights and all licences and ancillary and connected rights 4) The undertaking and all others of the Company Mortgagee: Antwerpse DiamantBank NV (also known as Antwerp Diamond Bank
NV), Hong Kong Branch. |
All money and the discharge of all obligations and
liabilities |
|
11-06-2013 |
Instrument: Floating Charge Over Assets Property: All the company’s undertaking, property and assets whatsoever and wheresoever both present and future including all book and other debts revenues and claims both present and future due or owing or which may become due or owing to the company, all its uncalled capital , goodwill and all patents, patent applications, trade marks, trade names, registered design copyrights and all licences and ancillary and connected rights relating to the intangible property both present and future of the company Mortgagee: ABN AMRO Bank N.V., Hong Kong Branch. |
All monies, obligations and liabilities covenanted to
be paid or discharged by the company in respect of the aggregate of all
amounts owing by the company to the bank from time to time |
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.61.87 |
|
UK Pound |
1 |
Rs.101.10 |
|
Euro |
1 |
Rs.84.65 |
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 |
-- |
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.