MIRA
INFORM REPORT
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Report Date : |
04.07.2013 |
IDENTIFICATION DETAILS
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Name : |
DIAGEMS TRADING LTD. |
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Registered Office : |
Room 706, 7/F., |
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Country : |
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Date of Incorporation : |
22.02.2012 |
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Com. Reg. No.: |
59441047 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trader of all kinds of Diamonds and Gems |
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No. of Employees : |
3. (Including associate) |
RATING & COMMENTS
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MIRA’s Rating : |
NB |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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-- |
NB |
New Business |
-- |
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Status : |
New Business |
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Payment Behaviour : |
Unknown |
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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
Source
: CIA
Company name and address
DIAGEMS TRADING
LTD.
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
Managing Director: Mr. Amishkumar
Ramniklal Sheth
SUMMARY
Incorporated on: 22nd
February, 2012.
Organization: Private
Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$100.00
Business Category: Diamond and Gem Trader.
Annual Turnover: HK$55-60
million (Including associate)
Employees:
3. (Including associate)
Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
company ADDRESS
Registered Head
Office:-
Room 706, 7/F., Hart Avenue Plaza, 5-9A Hart Avenue, Tsimshatsui,
Kowloon, Hong Kong.
P.O. Box 95305, Tsimshatsui, Kowloon, Hong Kong.
Associated
Companies:-
Diagems Trading Co., Hong Kong.
(same address)
Samkit Diamonds Exporters, India.
BUSINESS REGISTRATION NUMBER
59441047
COMPANY FILE NUMBER
1708695
MANAGEMENT
Managing Director: Mr. Amishkumar
Ramniklal Sheth
CAPITAL
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of
HK$1.00 each)
Issued Share Capital: HK$100.00
SHAREHOLDERS
(As per registry dated 22-02-2013)
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Name |
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No. of shares |
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Amishkumar Ramniklal SHETH |
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76 |
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Rakeshkumar Arvindlal PATEL |
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24 |
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––– |
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Total: |
100 === |
DIRECTORS
(As per registry dated 22-02-2013)
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Name (Nationality) |
Address |
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Amishkumar Ramniklal SHETH |
Unit A, 8/F., Hang Wan Building, 42-44 Granville Road, Tsimshatsui,
Kowloon, Hong Kong. |
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Rakeshkumar Arvindlal PATEL |
Flat F, 12/F., Block B, Hilton Tower, 96 Granville Road, Tsimshatsui,
Kowloon, Hong Kong. |
SECRETARY
(As per registry dated 22-02-2013)
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Name |
Address |
Co. No. |
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Banco Pacific C&S Ltd. |
Room 1607, 16/F., Dominion Centre, 43 Queen’s Road East, Wanchai,
Hong Kong. |
0683285 |
HISTORY
The subject was incorporated on 22nd February, 2012 as a private limited
liability company under the Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever
traced and noted.
OPERATIONS
Activities: Diamond
and Gem Trader.
Lines: All
kinds of diamonds.
Employees: 3. (Including associate)
Commodities Imported: India, Thailand, other Asian countries, Europe, etc.
Markets: US,
the Philippines, Taiwan, Singapore, Indonesia, Switzerland, Central & South
America, etc.
Annual Turnover: HK$55-60 million
(Including associate)
Terms/Sales:
L/C or as per
contracted.
Terms/Buying: L/C,
T/T, D/P, etc.
FINANCIAL INFORMATION
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of
HK$1.00 each)
Issued Share Capital: HK$100.00
Profit or Loss: Too early to offer an opinion.
Condition: Business
is under development.
Facilities: Making
fairly active use of general banking facilities.
Payment:
Met trade
commitments as required.
Commercial Morality: Satisfactory
Bankers:-
· Hang Seng Bank Ltd., Hong Kong.Hang Seng Bank Ltd., Hong Kong.
Industrial
& Commercial Bank of China (Asia) Ltd., Hong Kong.
Standing:
Small.
GENERAL
Having issued 100 ordinary shares of HK$1.00 each, Diagems Trading Ltd. is jointly owned by Mr. Amishkumar Ramniklal Sheth, holding 76% interests, and Mr. Rakeshkumar Arvindlal Patel, holding 24%. They are also directors of the subject.
The subject has
had an associated company Diagems Trading Company [DTC] located at the same
address. Founded on 1st April, 1981 DTC
and the subject are engaged in the same lines of business.
DTC is a sole
proprietorship owned by Amishkumar Ramniklal Sheth who is a shareholder of the
subject. Sheth joined in DTC in March
1999.
Business commenced
in April 1981, DTC is one of the oldest diamond trading companies in Hong
Kong. It 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.
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, DTC 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 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 and DTC ranges from HK$55 to 60 million. Making a small profit every year. Business is rather active. Regular suppliers and a number of 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 just over a year, on the whole, consider it good
for normal business engagements on L/C basis for the time being.
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
|
Indian Rupees |
|
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
|
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.