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Report Date : |
02.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
CHINA DIAMOND CORPORATION LTD. |
|
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|
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Registered Office : |
Room 911-912, 9/F., Heng Ngai Jewelry Centre, 4 Hok Yuen
Street, Hunghom, Kowloon |
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Country : |
Hong Kong. |
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Date of Incorporation : |
17.04.2000 |
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Com. Reg. No.: |
30872168-000 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
IMPORTER AND
PROCESSOR OF ALL KINDS OF RAW MATERIALS
FOR DIAMOND, PRECIOUS STONES, SAPPHIRE, RUBY, ETC. |
|
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|
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No. of Employees : |
20 |
RATING & COMMENTS
|
MIRA’s 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 : |
Usually 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 – June 30th,
2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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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'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 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the 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 28 million in 2011, 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 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% 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. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. 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 |
CHINA DIAMOND CORPORATION LTD.
ADDRESS: Room 911-912, 9/F., Heng Ngai Jewelry Centre, 4 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2521 0029
FAX: 2521 0019
E-MAIL: info@chinadia.com
Managing Director: Mr. Darshan Jivatlal Bhagat
Incorporated on: 17th April, 2000.
Organization: Private Limited Company.
Capital: Nominal: HK$12,880,623.00
Issued: HK$12,880,623.00
Business Category: Diamond Importer and Processor.
Employees: 20.
Main Dealing Banker: Dah Sing Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Room 911-912, 9/F., Heng Ngai Jewelry Centre, 4 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
C D (Belgium) Company, Hong Kong. [BR No. 30872168-001]
Room A511, China Diamond Exchange Center, 1701
Century Avenue, Pudong, Shanghai 200122, China.
[Tel: (86-21) 6128 0738; Fax: (86-21) 6182 0731]
3/F., 8 The Tenth Ping Xi Road, Nan Ping Hi-Tech Industrial Area, Zhuhai SEZ, China.
Jewellery Collection Co., Hong Kong.
[Owned by Mr. Yau Kung Wan (BR No. 16971156-000)]
Jewellery Collection Group Ltd., Hong Kong. [Dissolved]
[Also trading as Jewellery Collection Co. (BR No. 17517709-001)]
16 Diamonds.com Ltd., Hong Kong. (Same address)
Bei Wah Diamante (Macau) Limitada, Macau.
Jewellery Collection (Holdings) Ltd., Hong Kong.
Jewellery Collection International Ltd., Hong Kong.
Jewellery Collection Manufacturer Ltd., Hong Kong.
30872168-000
0713048
Managing Director: Mr. Darshan Jivatlal Bhagat
Nominal Share Capital: HK$12,880,623.00 (Divided into 12,880,623 shares of HK$1.00 each)
Issued Share Capital: HK$12,880,623.00
(As per registry dated 17-04-2012)
|
Name |
|
No. of shares |
|
Darshan Jivatlal BHAGAT |
|
8,372,405 |
|
YAU Kung Wan |
|
4,508,218 |
|
|
|
––––––––– |
|
|
Total: |
12,880,623 ======== |
(As per registry dated 17-04-2012)
|
Name (Nationality) |
Address |
|
Darshan Jivatlal BHAGAT |
Flat A, 25/F., Block 6, Parc Palais, 18 Wylie Road, Ho Man Tin, Kowloon, Hong Kong. |
|
YAU Kung Wan |
Flat F, 42/F., Robinson Place, 70 Robinson Road, Hong Kong. |
(As per registry dated 20-07-2012)
|
Name |
Address |
Co.
No. |
|
Vision Registration Ltd. |
21/f., Tung Hip Commercial Building, 248 Des Voeux Road Central, Hong Kong. |
1293029 |
The subject was incorporated on 17th April, 2000 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room 803, 8/F., Dragon Seed Building, 39 Queen’s Road Central, Hong Kong, moved to Room 502, 5/F., Wing On House, 71 Des Voeux Road Central, Hong Kong in February 2007, to Room 407-409, 4/F., Tower B, Hunghom Commercial Centre, 37-39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong in February 2009, and further moved to the present address with effect from 26th April, 2011.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer and Processor.
Lines: All kinds of raw materials for diamond, precious stones, sapphire, ruby, etc.
Brand Name: J.C.
Employees: 20.
Materials/Commodities: Imported from Europe, South Africa, India, etc.
Markets: Southeast Asia, Japan, Europe, Middle East, etc.
Terms/Sales: L/C, T/T, D/A, etc.
Terms/Buying: L/C, T/T, D/P, D/A, etc.
Nominal Share Capital: HK$12,880,623.00 (Divided into 12,880,623 shares of HK$1.00 each)
Issued Share Capital: HK$12,880,623.00
Mortgage or Charge (since 2008): (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Business is rather active.
Facilities: Is making active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Satisfactory.
Dah Sing Bank Ltd., Hong Kong.
CITIC Bank International Ltd., Hong Kong.
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
DBS Bank (Hong Kong) Ltd., Hong Kong.
Bank of India, Hong Kong Branch.
Standing: Good.
China Diamond Corporation Ltd. is a private limited company incorporated in April 2000. Formerly the subject had just issued 2 ordinary shares of HK$1.00 each while the shareholders Mr. Darshan Jivatlal Bhagat and Mr. Tso Wing Ching each held one share respectively. On 20th March, 2001, the subject created 859,034 ordinary shares more and on the same date, 558,321 shares were allotted to Bhagat while 300,662 shares were allotted to Tso.
Now, the subject has been reshuffled and has increased its issued share capital again. It is jointly owned by Bhagat, holding 65%, and Mr. Yau Kung Wan, holding 35%. Yau and Bhagat are also directors of the subject. Bhagat is holding a Hong Kong ID card.
The subject moved to the present address in April 2011.
The subject is a diamond trader. Its business name is C D (Belgium) Company. It imports all kinds of raw materials for diamond, precious stones, sapphire, ruby, etc. from Europe, South Africa, Cambodia, India, other Asian countries, etc. However, India is the subject’s main supplying country. After processing, the finished products are marketed in Hong Kong, exported to China, India, Japan, Southeast Asia, the Middle East, Europe, etc. However, Belgium seems to be the prime market of the subject. The significant products of the subject are loose diamond and carat diamonds.
Long time ago, the subject just exported its products to India only. Now, its products are exported to over ten countries. Overall business is steady.
The subject has got the following certifications: GIA, the IGI, and HRD.
In Hong Kong, the subject has had about 20 employees. Besides, the subject has set up an office in Shanghai, China in order to penetrate the China market further. The Shanghai Office is located at Room A511, China Diamond Exchange Center, 1701 Century Avenue, Pudong, Shanghai.
The subject has set up a factory in Zhuhai Special Economic Zone, China engaged in diamonds cutting and polishing. The factory has about 150 employees. Another factory in Shenzhen Special Economic Zone, China is manufacturing J.C. branded jewellery for the subject.
The subject is marketing its own products throughout the world.
Besides the subject, Mr. Yau Kung Wan is also operating another firm known as Jewellery Collection Co. which is also a jewellery and diamond trader.
The principal shareholder of the subject Bhagat is an Indian who has got close business ties with some of the diamond manufacturers in India. The subject’s business in Hong Kong is chiefly handled by Yau.
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 2013” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th to 9th March, 2013.
Besides, the subject has expanded its business by setting up a new firm known as 16 Diamonds.com Ltd. which is a Hong Kong-registered firm engaged in online jewellery retailing.
The subject has had two showrooms, one is in its registered address while the other is located at 16/F., Luk Fook Jewellery Centre, 239 Temple Street, Jordan, Kowloon, Hong Kong.
A Macau subsidiary Bei Wah Diamante (Macau) Limitada has been set up in recent years.
Overall business of the subject is good. According to the subject, its annual sales turnover is over HK$450 million.
The subject operates from an office owned by itself.
On the whole, having a history of over twelve years and nine months in Hong Kong, the subject is considered good for normal business engagements.
Property information of the company:-
Property Location:Workshop Unit 11 & 12 on
9/F., Heng Ngai Jewelry Centre,
4 Hok Yuen Street East, Kowloon, Hong Kong.
Owner: China Diamond Corporation Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
28-10-2010 |
- |
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
Legal charge to secure general banking facilities |
(Since 2008)
|
Date |
Particulars |
Amount |
|
16-05-2008 |
Instrument: Mortgage over Securities and Deposits Property: The Mortgagor, as beneficial owner: (a) mortgages and agrees to mortgage to the Bank by way of first fixed mortgage the Mortgagor’s entire right, title and interest in and to the Securities and the Related Rights; and (b) charges and agrees to charge by way of first fixed charge the Mortgagor’s entire right, title and interest in and to the Deposit Mortgagee: CITIC Ka Wah Bank Ltd., Hong Kong. [Now known as CITIC Bank International Ltd.] |
As a continuing security for the Secured Liabilities |
|
21-01-2010 |
Instrument: Security Agreement over Bank Account Property: By way of a first fixed charge all of the Chargor’s rights in respect of any amount standing to the credit of the Account from time to time and the debt represented by it Mortgagee: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
To secure the payment and satisfaction of all present and future obligations and liabilities |
|
28-10-2010 |
Instrument: Legal Charge/Mortgage Property: 56/4,978th parts or shares of and in Section D of Kowloon Marine Lot No. 113 (Workshop Unit 11 & 12 on 9/F. of Heng Ngai Jewelry Centre, 4 Hok Yuen Street East, Kowloon, Hong Kong.) Mortgagee: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
To secure the due and punctual payment of the Secured Indebtedness |
|
04-04-2011 |
Instrument: Charge on Cash Deposit to secure Liabilities of the Depositor Property: 1) By way of first fixed charge and agreement to charge: the Deposit and all right, title and interest of the Company 2) By way of set-off: any sum standing to the credit of any one or more of the accounts of the Company with the Bank Mortgagee: DBS Bank (Hong Kong) Ltd., Hong Kong. |
All sums of money and liabilities |
|
04-05-2011 |
Instrument: Letter of Set-off and Appropriation Property: Deal
No. Date Amount Due Date 163097 04-05-2010 HK$2,646,734.84 04-05-2011 Mortgagee: Bank of India, Hong Kong Branch. |
Advances and other banking facilities |
|
16-05-2011 |
Instrument: Security Agreement over Securities Property: 1) By way of first fixed charge: (a) all Specified Securities which are on the date of the Security Agreement the Chargor’s property; (b) all Specified Securities in which the Chargor may in the future acquire an interest; (c) all Related Rights of a capital nature on the date of the Security Agreement; (d) all Related Rights of an income nature on the date of the Security Agreement; and (e) where Specified Securities are held in a Relevant System; and 2) By way of assignment, all the Chargor’s rights, title and interest, present and future, in and to any Specified Securities and any Related Rights Mortgagee: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
To secure the payment and satisfaction of all present and future obligations and liabilities |
|
14-06-2012 |
Instrument: Deposit Deed Property: By way of a first fixed charge and as a continuing security for the Obligations, the Company charges and assigns absolutely all its rights, title to and interest in the Accounts and all Deposits from time to time in the Accounts and/or comprising the Accounts. Mortgagee: Citibank N.A., Hong Kong Branch. |
All moneys |
|
17-09-2012 |
Instrument: Trade Finance Security Assignment Property: The Borrower as beneficial owner: Mortgagee: CITIC Bank International Ltd., Hong Kong. |
As security for the payment of all Secured Liabilities. |
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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The diamond jewellery industry in India today may be
more than Rs 60000 mil and is rated amongst the fastest growing in the
world. Indi ranks third in the world in domestic diamond consumption.
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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 –
DIAMOND
SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
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Most of the money borrowed from the banks in the name
of their diamond business has been diverted in real estate and the share
market. The banks are not in a position to seize their properties because in
many cases, these were purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.53.32 |
|
UK Pound |
1 |
Rs.84.59 |
|
Euro |
1 |
Rs.72.62 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.