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Report Date : |
10.07.2013 |
IDENTIFICATION DETAILS
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Name : |
DIAGEMS
TRADING COMPANY |
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Registered Office : |
Room 706, 7/F., Hart Avenue Plaza, 5-9A Hart Avenue, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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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
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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 |
DIAGEMS TRADING COMPANY
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
Manager: Amishkumar Ramniklal Sheth
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.
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.
07143871-000-04
Manager: Amishkumar Ramniklal Sheth
Name: Amishkumar Ramniklal SHETH
Residential Address: Flat B7, 5/F., Block B, Hankow Centre, 4A Ashley Road, Tsimshatsui, Kowloon, Hong
Kong.
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 |
|
Hemkapub Ramanlal PATEL |
01-04-1981 |
30-09-1984 |
|
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 |
|
Avnissh Ashok PATEL |
15-06-1997 |
15-08-1997 |
|
Amishkumar Ramniklal SHETH |
01-03-1999 |
- |
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.
Activities: Importer, Exporter and Wholesaler.
Lines: Diamonds, gemstones, jade.
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.
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.
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.
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) |
|
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.13 |
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UK Pound |
1 |
Rs.89.52 |
|
Euro |
1 |
Rs.76.89 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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.