MIRA
INFORM REPORT
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Report Date : |
04.07.2013 |
IDENTIFICATION DETAILS
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Name : |
DIAGEMS
TRADING COMPANY |
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Registered Office : |
Room 706, 7/F., |
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Country : |
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Date of Incorporation : |
01.04.1981 |
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Com. Reg. No.: |
07143871-000-04 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
importer,
exporter and wholesaler of loose diamond, gemstone and jade |
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No. of Employees : |
03 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – March 31st 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Hong Kong |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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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 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.
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Source : CIA |
Company name
DIAGEMS TRADING COMPANY
Company ADDRESS
Room 706, 7/F., Hart Avenue Plaza, 5-9A Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2376 2781, 2376 0427
FAX: 852-2376 2357
E-MAIL: dgtc@biznetvigator.com
MANAGEMENT
Manager: Amishkumar Ramniklal Sheth
SUMMARY
Establishment: 1st April, 1981.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond and Gem Trader.
Annual Turnover: HK$45~55 million.
Employees: 3.
Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Company ADDRESS
Head Office:-
Room 706, 7/F., Hart Avenue Plaza, 5-9A Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
Mailing Address:-
P.O. Box 95305, Tsimshatsui, Kowloon, Hong Kong.
Associated
Companies:-
Diagems Trading Ltd., Hong Kong. (same address)
Samkit Diamonds Exporters, India.
BUSINESS REGISTRATION NUMBER
07143871-000-04
MANAGEMENT
Manager: Amishkumar Ramniklal Sheth
SOLE PROPRIETOR
Name: Amishkumar Ramniklal SHETH
Residential Address: Flat B7, 5/F., Block B, Hankow Centre, 4A Ashley Road, Tsimshatsui, Kowloon, Hong
Kong.
HISTORY
The subject was established on 1st April, 1981 as a partnership concern jointly owned by three Indian under the Hong Kong Business Registration Regulations.
The following
table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
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Hemkapub Ramanlal PATEL |
01-04-1981 |
30-09-1984 |
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Ashokkumar Hiralal PATEL |
01-04-1981 |
02-03-1999 |
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Jyostnaben Ashokkumar PATEL |
01-04-1981 |
02-03-1999 |
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Mukund Himatlal ZAVERI |
15-05-1989 |
31-03-1994 |
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Avnissh Ashok PATEL |
15-06-1997 |
15-08-1997 |
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Amishkumar Ramniklal SHETH |
01-03-1999 |
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Now the subject is a sole proprietorship.
Initially the subject was located at Room 33, 2/F., Mirador Mansion, 58 Nathan Road, Tsimshatsui, Kowloon, Hong Kong, moved to Room 59, 2/F. of the same building in June 1981; to Flat 3A, 3/F., Bo Yip Building, 6 Ashley Road, Tsimshatsui, Kowloon, Hong Kong in August 1988; to Flat B7, 5/F., Block B, Hankow Centre, 4A Ashley Road, Tsimshatsui, Kowloon, Hong Kong in May 1999; to Flat G & H, 12/F., Union Mansion, 33‑35 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong in August 2003; and further moved to the present address in April 2008.
Apart from these, neither material change nor amendment has been ever traced and noted.
OPERATIONS
Activities: Importer, Exporter and Wholesaler.
Lines: Diamonds, gemstones, jade, etc.
Employees: 3.
Commodities Imported: India, Thailand, other Asian countries, Europe, etc.
Markets: USA, the Philippines, Taiwan, Singapore, Indonesia, Switzerland, Central & South
America, etc.
Annual Turnover: HK$45~55 million.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
FINANCIAL INFORMATION
Capital: Not disclosed.
Profit or Loss: Making a small profit every year.
Condition: Keeping in an active and satisfactory condition.
Facilities: Making active use of general banking facilities.
Payment: Met obligations as contracted.
Commercial Morality: Satisfactory.
Bankers:-
· Hang Seng Bank Ltd., Hong Kong.
Industrial &
Commercial Bank of China (Asia) Ltd., Hong Kong.
Standing: Normal.
GENERAL
Diagems Trading Company is a sole proprietorship owned by Amishkumar Ramniklal Sheth who is an Indian. Sheth joined in the subject in March 1999.
Business commenced in April 1981, the subject is one of the oldest diamond trading companies in Hong Kong. The subject is a loose diamond, gemstone and jade importer, exporter and wholesaler. Most of its products carried are: pear, tapered, marquise and baguette princess cut diamonds, marquise cut semi-precious stones, etc.
The subject has had an associated company Diagems Trading Ltd. [DTL], a Hong Kong-registered firm which is also located at the same operating address. The subject and DTL are engaged in the same lines of business.
Currently, the
subject is manufacturing the following commodities and offering clients with
the following services:-
|
Product/Service |
Product/Service Remarks |
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Fine Jewellery |
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Diamond |
Cut and polished diamonds, from 0.005cts to 0.50 cts, size
shapes: brilliant, tapper, bugget, princess, marquise, pears (Importer) Cut and polished diamonds, from 0.005 cts to 0.50 cts, size shapes: brilliant, tapper, bugget, princess, marquise, pears (Exporter) Cut and polished diamonds, from 0.005 cts to 0.50 cts,
size shapes: brilliant, tapper, bugget, princess, marquise, pears (Wholesaler) |
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Gemstones and Jade |
Fine jewellery: white 6 yellow gold with diamonds
(Importer) Fine jewellery: white 6 yellow gold with diamonds (Exporter) Fine jewellery: white 6 yellow gold with diamonds
(Wholesaler) |
The subject’s cut and polished diamonds bear the brand name of “DTC”. Prime markets are the United States, the Philippines, Taiwan, Singapore, Indonesia, Switzerland, Central & South America, etc.
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. The latest fair taken part was the Hong Kong International Jewellery Show which had been held in Hong Kong during the period of 5th to 9th March, 2013. Besides, 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. Its booth No. is 3E-C29.
The annual sales turnover of the subject ranges from HK$45 to 55 million. Making a small profit every year. Business is rather active. Regular suppliers and foreign customers have been maintained.
The subject is an associated company of Samkit Diamonds Exporters [Samkit], an India-based firm also trading in diamonds and jewellery. It is likely that Samkit is one of the subject’s suppliers in India.
The subject’s business is chiefly handled by Sheth himself.
Since the history of the subject in Hong Kong is about thirty-two years, on the whole, consider it good for normal business engagements.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.10 |
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UK Pound |
1 |
Rs.91.07 |
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Euro |
1 |
Rs.77.95 |
INFORMATION DETAILS
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Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.