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Report Date : |
17.07.2013 |
IDENTIFICATION DETAILS
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Name : |
ETERNAL
DIAMONDS CORPORATION LTD. |
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Registered Office : |
Unit B, 16/F., World Trust Tower, 50 Stanley Street, Central |
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Country : |
Hong Kong |
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Date of Incorporation : |
18.12.2002 |
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Com. Reg. No.: |
33232303 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
· Importer, Exporter, Wholesaler and Retailer of diamonds and diamond jewellery subject is also a loose diamond
wholesaler |
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No. of Employees : |
15 |
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 |
|
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 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 |
ETERNAL DIAMONDS CORPORATION LTD.
Unit B, 16/F., World Trust Tower, 50 Stanley Street, Central, Hong Kong.
PHONE: 852-2333 5534, 2522 9350
FAX: 852-2356 2680, 2522 2945
E-MAIL: eternal.diamonds@yahoo.com.hk
Managing Director: Mr. Ashish Bajranglal Bagaria
Incorporated on: 18th December, 2002.
Organization: Private Limited Company.
Capital: Nominal: US$2,000,000.00
Issued: US$2,000,000.00
Business Category: Diamond Trader.
Annual Turnover: US$400~420 million.
Employees: 15.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation Good.
Registered Head Office:-
Unit B, 16/F., World Trust Tower, 50 Stanley Street, Central, Hong Kong.
Holding Company:-
Everstar Capital (Asia) Ltd., British Virgin Islands.
33232303
0826414
Managing Director: Mr. Ashish Bajranglal Bagaria
Contact Person: Mr. Hsuan Cheng Li
Nominal Share Capital: US$2,000,000.00 (Divided into 2,000,000 shares of US$1.00 each)
Issued Share Capital: US$2,000,000.00
(As per registry
dated 18-12-2012)
|
Name |
|
No. of shares |
|
Everstar Capital (Asia)
Ltd. 263 Main Street, P.O. Box 2196, Road Town, Tortola, British
Virgin Islands. |
|
2,000,000 ======= |
(As per registry
dated 18-12-2012)
|
Name (Nationality) |
Address |
|
Ashish Bajranglal
BAGARIA |
Unit B, 16/F., World Trust
Tower, 50 Stanley Street, Central, Hong Kong. |
(As per registry
dated 10-01-2013)
|
Name |
Address |
Co. No. |
|
Louis Lai & Luk Co. Secretarial Services Ltd. |
9/F., Surson Commercial Building, 140‑142 Austin
Road, Tsimshatsui, Kowloon, Hong Kong. |
0686503 |
The subject was incorporated on 18th December, 2002 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject’s registered office was in an accountant firm located at 1/F., Xiu Ping Commercial Building, 104 Jervois Street, Sheung Wan, Hong Kong known as Fung & Pang CPA Ltd. which had handled its correspondences and documents. The subject changed its registered address to Flat F2-27, 2/F., Phase 2, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong with effect from 10th June, 2010. This was also the old operating address of the subject. It has moved to the present address in January 2012.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter, Wholesaler and Retailer.
Lines: All kinds of diamonds and jewellery
Employees: 15.
Commodities Imported: India, Belgium, UAE, etc.
Markets: Hong Kong, US, UAE, India, other Asian countries, etc.
Annual Turnover: US$400~420 million.
Terms/Sales: Credit of 30, 60-90 days.
Terms/Buying: Credit of 90-120 days.
Nominal Share Capital: US$2,000,000.00 (Divided into 2,000,000 shares of US$1.00 each)
Issued Share Capital: US$2,000,000.00
Increase of
Nominal Capital:-
|
From |
US$100,000.00 |
to |
US$2,000,000.00 |
on |
16-01-2012 |
Alternation of Issued
Capital:-
|
Initially |
paid up |
US$ 10,000.00 |
|
16-01-2012 |
paid up |
US$1,990,000.00 |
|
|
|
–––––––––––––– |
|
Total: |
paid up |
US$2,000,000.00 ============= |
Profit or Loss: Business is profitable.
Condition: Keeping in an active condition.
Facilities: Making very active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Very Good.
Bankers:-
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Industrial & Commercial Bank of China (Asia) Ltd.,
Hong Kong.
Standing: Very Good.
Having issued 2 million ordinary shares of US$1.00 each, Eternal Diamonds Corporation Ltd. is a wholly-owned subsidiary of Everstar Capital (Asia) Ltd. which is a BVI-registered firm. The only director of the subject Mr. Ashish Bajranglal Bagaria is an Indian merchant. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.
The subject is trading in diamonds and diamond jewellery. Commodities are chiefly imported from India, Belgium and the United Arab Emirates. Products are marketed in Hong Kong, exported to the United State, the United Arab Emirates, other Asian countries, etc.
One of the subject’s India suppliers is Firestar International Pvt. Ltd. which is in Surat, India. The subject imports cut and polished diamonds from this company.
The subject is also a loose diamond wholesaler in Hong Kong. All the operators of the subject are experienced.
According to the subject, its sales in 2009 was over US$180 million, in 2010 was over US$375 million. Its sales turnover in 2011 and 2012 were over US$400 million. It is predicted that the subject’s business will improve further in the years ahead as its market share in the United Arab Emirates has been increasing.
The subject’s business is chiefly handled by Bagaria himself. A CEO of the subject is Mr. Hsuan Cheng Li.
The history of the subject in Hong Kong is about ten 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.59.39 |
|
UK Pound |
1 |
Rs.89.90 |
|
Euro |
1 |
Rs.77.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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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 |
|
<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.