|
Report Date : |
25.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
DIAMART LTD. |
|
|
|
|
Registered Office : |
Room 1724, 17/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon |
|
|
|
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Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
09.10. 2000 |
|
|
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Com. Reg. No.: |
31379959 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
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Line of Business : |
Importer, Distributor and Wholesaler of all kinds of diamonds, etc. |
|
|
|
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No. of Employees : |
8. (Including affiliates) |
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 (31.03.2011) |
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
DIAMART LTD.
ADDRESS: Room 1724, 17/F., Star
House, 3 Salisbury Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2377 1635, 2877 3191
FAX: 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:
8. (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:-
4C’S 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
(As per registry dated 09-10-2012)
|
Name |
|
No. of shares |
|
Digico Holdings Ltd., Hong Kong. |
|
3,999,999 |
|
Deepak Gunvantlal GANDHI |
|
1 |
|
|
|
–––––––– |
|
|
Total: |
4,000,000 ======= |
(As per registry dated 22-11-2012)
|
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. |
(As per registry dated 09-10-2012)
|
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 4C’S 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, etc.
Employees: 8. (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
Alternation of 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 ============= |
Increase of Nominal Capital:-
|
From |
US$3,000,000.00 |
to |
US$4,000,000.00 |
on |
25-11-2009 |
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:
Normal.
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
operating 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. 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”, “D’Damas”, “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.
Digico’s 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 today one of the
leading diamond and jewellery exporting companies in India.
Gitanjali’s 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, 4C’S Diamonds Distributors, Trans Exim Ltd.,
etc. The manager and managing director
of these two firms is Mr. Amit Haresh Kumar Patwa.
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.
The history of the subject in Hong Kong is over twelve 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 choses 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.
-
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.54.43 |
|
|
1 |
Rs.83.20 |
|
Euro |
1 |
Rs.71.91 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.