|
Report Date : |
22.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
JEWELEX HK LTD. |
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Registered Office : |
Unit 1507, 15/F., Peninsula Square, 18 Sung On Street, Hunghom,
Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
22.10.2003 |
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Com. Reg. No.: |
34014453 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Exporter of All kinds of diamond, jewellery and precious
stones. |
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No. of Employees : |
7. (Including associate) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 |
JEWELEX HK LTD.
Unit 1507, 15/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon,
Hong Kong.
PHONE: 852-2312 6088, 2312 6075,
3756 9900
FAX: 852-2314
1551, 3756 9911
E-MAIL: hongkong@jewelexgroup.com
jewelex@pacific.net.hk
jewelexhk@hotmail.com
Managing Director: Mr. Jamil Khalil Fakih
Incorporated on: 22nd October, 2003.
Organization: Private Limited Company.
Capital: Nominal: HK$15,610,000.00
Issued: HK$15,610,000.00
Business Category: Diamond
Trader.
Employees: 7. (Including associate)
Main Dealing Banker: The Royal
Bank of Scotland N.V., Hong Kong Branch.
Banking Relation: Satisfactory.
JEWELEX HK LTD.
Registered Head
Office:-
Unit 1507, 15/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon,
Hong Kong.
Holding Company:-
Diajewel S.A., Luxembourg.
Associated/Affiliated
Companies:-
Jewelex Group of Companies
Galaxy Jewels Ltd., Hong Kong.
Indogem (HK) Ltd., Hong Kong.
[Dissolved]
Jewelex Antwerp N.V., Belgium.
Jewelex Australia Pty. Ltd., Australia.
Jewelex Dubai LLC, UAE.
Jewelex Europe N.V., Belgium.
Jewelex India Pvt. Ltd., India.
Jewelex International Pvt. Ltd., India.
Jewelex Japan Ltd., Japan.
Jewelex New York Ltd., USA.
Jewelex Shanghai Ltd., China.
Kesaria & Co. Ltd., China.
Legend International Enterprises Ltd., British Virgin Islands.
etc.
34014453
0867320
Managing Director: Mr. Jamil
Khalil Fakih
Nominal Share Capital: HK$15,610,000.00 (Divided into 15,610,000 shares
of HK$1.00 each)
Issued Share Capital: HK$15,610,000.00
(As per registry dated 22-10-2012)
|
Name |
|
No. of shares |
|
Diajewel S.A. 46A, Avenue J.F. Kennedy, 1855 Luxembourg. |
|
15,610,000 ======== |
(As per registry dated 22-10-2012)
|
Name (Nationality) |
Address |
|
Jamil Khalil FAKIH |
Flat A, 30/F., Tower 10, Carmel Cove, Caribbean Coast, Tung Chung,
Lantau Island, Hong Kong. |
|
Deep Nilesh BHANSALI |
Flat E, 30/F., Block 3, Royal Peninsula, 8 Hung Lai Road, Kowloon,
Hong Kong. |
(As per registry dated 22-10-2012)
|
Name |
Address |
Co. No. |
|
Vimet Corporate Consultants & Secretaries Ltd. |
Room 1105, 11/F., Haleson Building, 1 Jubilee Street, Central,
Hong Kong. |
0381676 |
The subject was incorporated on 22nd October, 2003 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Unit A2, 14/F., China Insurance
Building, 48 Cameron Road, Tsimshatsui, Kowloon, Hong Kong, moved to the
present address with effect from 24th February, 2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer
and Exporter.
Lines: All
kinds of diamond, jewellery and precious stones.
Employees: 7. (Including associate)
Commodities Imported: Imported
from Belgium, Israel, India, other Asian countries, etc.
Markets: Thailand,
Other Asian countries, Belgium, North America, etc
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, D/P and T/T.
Nominal Share Capital: HK$15,610,000.00
(Divided into 15,610,000 shares of HK$1.00 each)
Issued Share Capital: HK$15,610,000.00
Mortgage or Charge:-
Date of Debenture: 13-09-2006
Amount: General
banking facilities
Property: All
the Company’s undertaking and property and assets
Mortgagee: ABN AMRO Bank N.V.,
Hong Kong Branch.
[Now known as The Royal Bank of Scotland N.V.]
Profit or Loss: Making
a small profit in the past years.
Condition: Keeping
in a satisfactory condition.
Facilities: Making
active use of general banking facilities.
Payment: Met
as contracted.
Commercial Morality: Satisfactory.
Banker: The Royal Bank of Scotland N.V.,
Hong Kong Branch.
Standing: Good.
Jewelex HK Ltd. is a wholly-owned subsidiary of Diajewel S.A. which is a
Luxembourg-based firm. The minor
shareholder Jamil Khalil Fakih transferred his ten shares to Diajewel S.A. on
25th May, 2012.
Being a diamond trader, the subject in fact is a member of the Jewelex
Group. The Group is a Mumbai-based. It is famous for its polished diamonds and
studded jewellery.
The directors of the subject are Mr. Deep Nilesh Bhansali and Mr. Jamil
Khalil Fakih. Being Hong Kong ID Card
holders, they have got the right to reside in Hong Kong permanently.
Besides the subject, Bhansali and Fakih are operating another firm
Galaxy Jewels Ltd. [Galaxy Jewels] which is also a Hong Kong-registered
firm. Incorporated on 18th May, 2009,
Galaxy Jewels is jointly owned by Bhansali and Fakih. The former is holding 99% interests while the
latter, just 1%.
Besides the subject and Galaxy Jewels, Fakih had operated another firm
Indogem (HK) Ltd. [Indogem].
Incorporated on 18th March, 1993, Indogem has been dissolved by
deregistration.
The Jewelex Group now has set up subsidiaries or affiliated companies in
India, China, Japan, the United Arab Emirates, the United States, Australia,
Belgium, etc. The corporate headquarters
of the Jewelex Group are in India. The
key member of the Group is Jewelex India Pvt. Ltd. which is in Mumbai, India.
The subject is trading in the following commodities:-
·
Diamond Bangle;
·
Diamond Cufflinks;
·
Diamond Jewellery Set;
·
Fun Cufflinks for Men;
·
Gold Diamond Bangle;
·
Jewellery Puff Heart Bra;
·
Necklace; &
·
Pearl Cufflinks.
The subject imports cut and polished diamonds from its affiliated
companies and re-exported to worldwide countries. Business is rather active. Annual sales turnover is significant.
The old director of the subject Nishit Pravinchandra Kothari was a
Belgium passport holder. Now, he is
responsible for the business of Jewelex Antwerp N.V. and Jewelex Europe
N.V. Both firms are in Antwerp, Belgium.
One of the significant firms of the Group in China is Jewelex Shanghai
Ltd. which is in Shanghai, China. A firm
known as Kesaria & Co. Ltd. is using the office of Jewelex Shanghai as its
registered address. Jewelex Shanghai is
trading in GIA certified diamonds. Business
is rather active. The contact person is
a Mr. Li who is a Chinese.
The history of the subject in Hong Kong is over nine years.
The subject is fully supported by the Jewelex Group.
On the whole, in view of the background of the subject, consider it good
for normal business engagements.
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.
-
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.
-
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.
-
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.
-
Excerpts from Times of India dated 30th October 2010 is as
under –
-
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.
-
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.59.79 |
|
|
1 |
Rs.91.03 |
|
Euro |
1 |
Rs.78.52 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
|
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.