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Report Date : |
17.01.2013 |
IDENTIFICATION DETAILS
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Name : |
V. D. GEMS LTD. |
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Registered Office : |
8/F., Tung Wui Commercial Building, 27 Prat Avenue, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
20.01.2011 |
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Com. Reg. No.: |
53643437 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trader of all kinds of diamonds, & Gemstone |
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No. of Employees : |
2 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 – 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 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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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
V. D.
GEMS LTD.
Address: 8/F.,
Tung Wui Commercial Building,
27 Prat Avenue, Tsimshatsui,
Kowloon, Hong Kong.
(Formerly located at:
Room A, 3/F., Kok Pah Mansion, 58-60 Cameron
Road,
Tsimshatsui, Kowloon, Hong Kong. )
PHONE: 2739 9885
FAX: 2739 9885
Managing Director: Mr. Dharmeshbhai Lavjibhai Vaghani
(Mobile: 6293 3274)
Incorporated on: 20th
January, 2011.
Organization: Private
Limited Company.
Capital: Nominal: HK$250,000.00
Issued: HK$250,000.00
Business Category: Diamond & Gemstone Trader.
Employees:
2.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
8/F., Tung Wui Commercial Building, 27 Prat Avenue, Tsimshatsui,
Kowloon, Hong Kong.
Associated Companies:-
Manish Kumar Gems & Jew. LLC, UAE.
V. D. Gems Pvt. Ltd., India.
Vipul Diamonds, India.
53643437
1554319
Managing Director: Mr.
Dharmeshbhai Lavjibhai Vaghani
Nominal Share Capital: HK$250,000.00 (Divided into 250,000 shares of
HK$1.00 each)
Issued Share Capital: HK$250,000.00
(As per registry dated 14-08-2012)
|
Name |
|
No. of shares |
|
Dharmeshbhai Lavjibhai VAGHANI |
|
250,000 ====== |
(As per registry dated 20-01-2012)
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Name (Nationality) |
Address |
|
Dharmeshbhai Lavjibhai VAGHANI |
10/F., 1002 Bhoomi Tower A Wing, Nehru Road, Santacruz East, Mumbai
400055, India. |
(As per registry dated 20-01-2012)
|
Name |
Address |
Co. No. |
|
Buttar.HK Ltd. |
1/F., Mau Lam Commercial Building, 16-18 Mau Lam Street, Jordan, Kowloon,
Hong Kong. |
0975326 |
The subject was incorporated on 20th January, 2011 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room A, 3/F., Kok Pah Mansion, 58‑60 Cameron
Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address with effect
from 23rd May, 2012.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Diamond
& Gemstone Trader.
Lines: All
kinds of diamonds, etc.
Employees: 2.
Commodities Imported: India, other Asian countries, Europe, etc.
Markets: Hong
Kong, China, other Asian countries, Europe, etc.
Terms/Sales:
L/C, Advanced T/T,
etc.
Terms/Buying: L/C,
D/P, O/A, etc.
Nominal Share Capital: HK$250,000.00 (Divided into 250,000 shares of
HK$1.00 each)
Issued Share Capital: HK$250,000.00
Profit or Loss: Too early to offer an opinion.
Condition: Business
is under development.
Facilities: Is
making use of general banking facilities.
Payment:
Met trade
commitments as required.
Commercial Morality: Satisfactory.
Banker:
The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Having issued 250,000 ordinary shares of HK$1.00 each, V. D. Gems Ltd.
is wholly owned by Mr. Dharmeshbhai Lavjibhai Vaghani who is an Indian. He is an India passport holder and does not
have the right to reside in Hong Kong permanently. He is also the only director of the subject.
The subject is a diamond trader.
Vaghani can be reached at his mobile phone number 852-6293 3274.
The subject has had an associated company in India known as V. D. Gems
Pvt. Ltd. [V. D. Gems] which is a family business.
V. D. Gems was established in 1980 in Mumbai, India. It has been serving the diamond industry for
30 years and it has established a stable and repeated customer base locally as
well as Globally by providing World Class Quality Diamonds.
It has had Surat, Bhavnagar and Botad Diamond Manufacturing companies in
India.
V. D. Gems is manufacturing wide range of Single Cut
Diamonds, Full Cut Diamonds, Treated
Diamonds, Fancy Cut Diamonds, Princess Cut Diamonds,
Fancy Shape Diamonds in all sizes and all colours (White, next to White, TTLB,
TLC and NATTS) in a wide range of prices.
It also manufactures Gun Metal/ Black Diamonds which is used in White
Gold and Silver Jewellery. It is also providing
Treated Colour Diamonds in different colours like Red, Yellow, Lemon, Blue,
etc. with the help of Nuclear Technology.
Most of the products bear the trade mark VD.
The subject imports commodities from V. D. Gems. Products are marketed in Hong Kong, China,
North America, Central and South America, etc.
The subject’s business is chiefly handled by Vaghani himself. Business is still under development.
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.
It is also going to take part in “Hong Kong Watch & Clock Fair 2013”
which will be held in the same venue during the period of 4th to 8th September,
2013.
The history of the subject in Hong Kong is just about two years.
On the whole, since the history of the subject is short, consider it
good for normal business engagements on L/C basis.
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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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.
-
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.54.82 |
|
|
1 |
Rs.87.99 |
|
Euro |
1 |
Rs.72.83 |
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 |
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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.