|
Report Date : |
06.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
AJAY DIAM LTD |
|
|
|
|
Registered Office : |
Room 1501-1502, 15/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui,
Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
27.10.2004 |
|
|
|
|
Com. Reg. No.: |
35031151 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer and Exporter of All kinds of diamonds and jewellery |
|
|
|
|
No. of Employees : |
8 |
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 |
|
Payment Behaviour : |
No Complaints |
|
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 |
|
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'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 |
AJAY DIAM LTD
Room 1501-1502, 15/F., Chevalier House, 45-51 Chatham Road South,
Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2316 7655, 2316
2255, 2316 7662
FAX: 2316 7611
E-MAIL: sales@ajaydiamltd.com
ajaydiamltd@ajaydiamltd.com
Managing Director: Mr. Ajay Premchand Gandhi
Incorporated on: 27th October, 2004.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000,000.00
Issued: HK$10,000,000.00
Business Category: Diamond
and Watch Trader.
Annual Turnover: HK$85~90 million.
Employees: 8.
Main Dealing Banker: UCO Bank,
Hong Kong Branch.
Banking Relation: Satisfactory.
AJAY DIAM LTD
Registered Head
Office:-
Room 1501-1502, 15/F., Chevalier House, 45-51 Chatham Road South,
Tsimshatsui, Kowloon, Hong Kong.
Associated
Company:-
Ajay Diam, Hong Kong. (Same
address)
35031151
0930040
Managing Director: Mr. Ajay
Premchand Gandhi
Contact Person: Mr. Lau Wa
Nominal Share Capital: HK$10,000,000.00 (Divided into 10,000,000 shares
of HK$1.00 each)
Issued Share Capital: HK$10,000,000.00
(As per registry dated 27-10-2012)
|
Name |
|
No. of shares |
|
Ajay Premchand GANDHI |
|
10,000,000 ======== |
(As per registry dated 27-10-2012)
|
Name (Nationality) |
Address |
|
Ajay Premchand GANDHI |
11/F., Hang Shun Commercial Building, 12 Cameron Road, Tsimshatsui,
Kowloon, Hong Kong. |
(As per registry dated 27-10-2012)
|
Name |
Address |
Co. No. |
|
SME Corporate Services Ltd. |
Room 305, 3/F., Carpo Commercial Building, 18-20 Lyndhurst Terrace,
Central, Hong Kong. |
0952029 |
The subject was incorporated on 27th October, 2004 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Flat D & E, 8/F., Cameron Plaza,
23‑25A Cameron Road, Tsimshatsui, Kowloon, Hong Kong, moved to
11/F., Hang Shun Commercial Building, 12 Cameron Road, Tsimshatsui, Kowloon,
Hong Kong in May 2006 and further moved to the present address with effect from
1st August, 2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer
and Exporter.
Lines: All
kinds of diamonds and jewellery.
Trade Mark: SMEA.
Employees: 8.
Commodities Imported: India,
Thailand, Israel, Belgium, etc.
Markets: Europe,
US, South Korea, Japan, etc.
Annual Turnover: HK$85~90
million.
Terms/Sales: L/C,
T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Hong Kong Watch Manufacturers Association
Ltd., Hong Kong.
The Indian Chamber of Commerce Hong Kong,
Hong Kong.
Nominal Share Capital: HK$10,000,000.00
(Divided into 10,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000,000.00
Alternation of Capital:-
|
Initially |
paid up |
HK$ 5,000,000.00 |
|
28-03-2011 |
paid up |
HK$ 5,000,000.00 |
|
|
|
–––––––––––––––– |
|
Total: |
paid up |
HK$ 10,000,000.00 ============== |
Increase of Nominal Capital:-
|
From |
HK$5,000,000.00 |
to |
HK$10,000,000.00 |
on |
28-03-2011 |
Mortgage or Charge: (See attachment)
Profit or Loss: Making
a small profit every year.
Condition: Keeping
in an active condition.
Facilities: Making active use of general
banking facilities.
Payment: So far so good.
Commercial Morality: Satisfactory.
Bankers:-
UCO Bank, Hong Kong Branch.
Indian Overseas Bank, Hong Kong Branch.
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Good.
Having issued 10 million ordinary shares of HK$1.00 each, Ajay Diam Ltd.
is wholly owned by Mr. Ajay Premchand Gandhi who is an Indian. He is a Hong Kong ID Card holder and has got
the right to reside in Hong Kong permanently.
He is also managing director of the subject.
The subject has got an affiliated company Ajay Diam located at its
operating address. Ajay Diam was set up
in 1993, it was reported. The subject
and Ajay Diam are engaged in the same lines of business and under the same
management.
·
The subject is marketing the following
commodities:-
·
Finished Jewel lery
·
Diamond Jewellery
·
White Diamond Jewellery
·
Gold Jewellery
·
Fineness not Specified
·
Silver Jewellery
·
Sterling 92.5%
·
Platinum Jewellery
·
Fineness not Specified
·
Materials
·
Diamond
·
Polished White Diamond
·
Polished Semi precious Gemstone
·
Others
The subject is specialized in diamonds and gold watches. Diamonds are imported from India, Thailand,
Israel, Belgium, etc. Prime markets are
Europe, the United States, South Korea, Japan, etc.
The subject’s significant products are the following items:-
·
Ladies’ 18K Gold Watch;
·
Ladies’ Jewellery Watch (including digital,
analogue watch);
·
Men’s Jewellery Watch; &
·
Unisex Jewellery Watch.
Most of its products bear the brand name “SMEA” and claimed to be
elegant, luxury and sophisticated.
According to the subject, the subject’s jewellery watch features a Swiss
mechanical movement for guaranteed precision.
Besides, it has got a genuine leather strap and the case is made of 18K
gold.
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, it is going to take part in “HKTDC Hong Kong Watch & Clock
Fair 2013” which will be held in Hong Kong Convention and Exhibition Centre,
Wanchai, Hong Kong during the period of 4th to 8th September, 2013.
The annual sales turnover of the subject ranges from HK$85 to 90
million. Making a small profit every
year. Business is chiefly handled by Mr.
Lau Wa who is a Hongkongnese.
The subject has had an associated company Ajay Diam located at its
operating address. The subject and Ajay
Diam are engaged in the same lines of business.
Also operated by Mr. Ajay Premchand Gandhi, Ajay Diam is a member of The
Indian Chamber of Commerce Hong Kong, Hong Kong.
The history of the subject in Hong Kong is about eight years.
On the whole, consider it good for normal business engagements.
|
Date |
Particulars |
Amount |
|
15-12-2008 |
Instrument: Undertaking Relating to Deposits Property: Distinctive Date of Amount Rate of Maturity
Date 2008 FD 262 2 24-11-2008 AU$ 558,102.78 3.875% 24-12-2008 Mortgagee: Indian Overseas Bank, Hong Kong
Branch. |
All and any liabilities |
|
21-06-2010 |
Instrument: Undertaking Relating to Deposits Property: Distinctive Date of Amount Rate of Maturity
Date 2009 FD 244 2 10-03-2010 US$ 234,903.18 0.640% 10-09-2010 Mortgagee: Indian Overseas Bank, Hong Kong
Branch. |
All and any liabilities |
|
21-03-2011 |
Instrument: Security Over Deposits with the Bank
(Limited Company – Under Seal) Property: Initially HK$5,000,000.00 or equivalent and all monies whether now or
hereafter standing to the credit of the Company’s deposit with the Bank under
deposit No. 636-595324-838 and whatever currency it may subsequently be
denominated in, any renewal of such deposit and the interest thereon together
with any further moneys in any deposit account with the Bank at any of its
offices Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
To secure all monies in respect of banking facilities |
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.
-
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.
-
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 –
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.
-
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.53.29 |
|
|
1 |
Rs.83.96 |
|
Euro |
1 |
Rs.71.88 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.