|
Report Date : |
25.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
EXCELLENT DIAMONDS LTD. |
|
|
|
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Registered Office : |
Room 601-602, 6/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon |
|
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Country : |
Hong Kong |
|
|
|
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Date of Incorporation : |
06.08.2003 |
|
|
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Com. Reg. No.: |
34101399 |
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|
|
|
Legal Form : |
Private Limited Company |
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|
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products, emerald, precious stones. |
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No. of Employees : |
7. (Including associates in Hong Kong) |
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
EXCELLENT DIAMONDS
LTD.
ADDRESS: Room 601-602, 6/F., Guardforce Centre, 3
Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2721 4200
FAX: 852-2316 7695
E-MAIL: venusjewels@hotmail.com
hameshseth@hotmail.com
Managing Director: Mr. Hamesh
Bhagchand Seth
Incorporated on: 6th
August, 2003.
Organization: Private
Limited Company.
Capital: Nominal: HK$17,020,000.00
Issued: HK$17,020,000.00
Business Category: Jewellery Trader.
Annual Turnover: HK$60~65 million.
Employees: 7.
(Including associates in Hong Kong)
Main Dealing Banker: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Room 601-602, 6/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom,
Kowloon, Hong Kong.
China Factory:-
6/F., 46 Yin Jian Road, Daluo Tang Shiqiao 511400, Panyu, Guangzhou,
Guangdong Province, China.
[Tel: (86-20) 3480 6750; Fax:
(86-20) 3480 6760]
Wholly-owned Subsidiary:-
Venus Jewels (HK) Ltd., Hong Kong.
(Same address)
Associated/Affiliated Companies:-
(Same address)
Mercury Impex, Hong Kong.
Princess Jewellery Co., Hong Kong.
Princess Jewellery Ltd., Hong Kong.
34101399
0856107
Managing Director: Mr. Hamesh
Bhagchand Seth
Nominal Share Capital: HK$17,020,000.00 (Divided into 1,702,000 shares
of HK$10.00 each)
Issued Share Capital: HK$17,020,000.00
(As per registry dated 06-08-2012)
|
Name |
|
No. of shares |
|
Gorabh Vinodkumar JAIN |
|
851,000 |
|
Hamesh Bhagchand SETH |
|
851,000 |
|
|
|
–––––––– |
|
|
Total: |
1,702,000 ======= |
(As per registry dated 06-08-2012)
|
Name (Nationality) |
Address |
|
Hamesh Bhagchand SETH |
Flat A1-A5, 16/F., Portion 83, Main Roof, Hankow Centre, Tsimshatsui,
Kowloon, Hong Kong. |
|
Seema SETH |
Flat A1-A5, 16/F., Portion 83, Main Roof, Hankow Centre, Tsimshatsui,
Kowloon, Hong Kong. |
|
Gorabh Vinodkumar JAIN |
203 Jogani Apartments, Doongershi Road, Malabar Hill, Mumbai-6, M.S.,
India. |
(As per registry dated 06-08-2012)
|
Name |
Address |
Co. No. |
|
Lodestar Secretaries Ltd. |
13/F., Wah Kit Commercial Centre, 302 Des Voeux Road Central, Hong
Kong. |
0113023 |
The subject was incorporated on 6th August, 2003 as a private limited
liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Venus Jewels
(HK) Ltd., name changed to the present style on 28th March, 2011.
Formerly the subject was located at Room 1101-1102, 11/F., Cammer
Commercial Building, 30-32 Cameron Road, Tsimshatsui, Kowloon, Hong Kong,
moved to the present address in recent months.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of diamonds and jewellery products, emerald, precious stones.
Employees: 7. (Including associates in Hong Kong)
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Hong
Kong, Japan, other Asian countries, etc.
Annual Turnover: HK$60~65 million.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
The Indian Chamber of Commerce Hong Kong,
Hong Kong.
Nominal Share Capital: HK$17,020,000.00 (Divided into 1,702,000
shares of HK$10.00 each)
Issued Share Capital: HK$17,020,000.00
Indebtedness: HK$2,073,453.71 (Total amount outstanding on all mortgages
and charges as per last Annual Return dated 06-08-2012)
Mortgage or Charge (Since 2010): (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Keeping in a satisfactory condition.
Facilities:
Making active
use of general banking facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Canara Bank, Hong Kong Branch.
DBS Bank (Hong Kong) Ltd., Hong Kong.
Bank of India, Hong Kong Branch.
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Standing: Good.
Having issued 1,702,000 ordinary shares of HK$10.00 each, Excellent
Diamonds Ltd. is equally owned by Mr. Gorabh Vinodkumar Jain and
Mr. Hamesh Bhagchand Seth. The
directors of the subject are Mr. Hamesh Bhagchand Seth, Mr. Gorahb Vinodkumar
Jain and Mr. Seema Seth. All the
directors are Indian while the first and third are Hong Kong ID Card holders
and have got the right to reside in Hong Kong permanently.
The subject has had a wholly-owned subsidiary known as Venus Jewels (HK)
Ltd. [Venus] which is also located at the same address. The subject and Venus are engaged in the same
lines of business.
Venus is a member of The Indian Chamber of Commerce Hong Kong, a
Hong Kong-based association.
The subject is a diamond importer, exporter and wholesaler. Products include single cuts, full cuts and
fancy shapes — such as princess, baguettes, marquise, pearl, oval, emerald and
heart. Raw materials are imported from
India, Belgium and other European countries.
Finished products are marketed in Hong Kong, exported to China,
Thailand, Taiwan, the other Asian countries, Europe, etc. Its customers include wholesalers, jewellery
manufacturers and diamond retailers.
The subject has got an associated factory in Panyu, Guangzhou, Guangdong
Province, China. This factory supplies
the subject and Venus with all kinds of jewellery products.
The subject has got an associated company Princess Jewellery Co. [PJC]
located at the same operating address.
PJC is a jewellery manufacturer which was originally founded in March
2002 by Mr. Vimay Shrimal, holder of India Passport No. Z1530767. Changed to a partnership business as Mr. H.S.
Jain joined in as a partner in August 2004.
Subsequently, Mr. Vimay Shrimal retired and Mr. Pankaj Jain joined in as
a partner on 1st August, 2005.
PJC is experienced in manufacturing 8-18K yellow and white gold,
platinum and silver, which set with diamonds, precious stones, semi-precious
stones, etc. The followings are the
significant products of PJC:-
Diamond Rings, Cubic Zirconia Rings, Cubic Zirconia Necklaces, Cubic
Zirconia Earrings, 18K Gold Diamond Pendant, 18K Gold Necklaces, 18K Gold
Diamond Rings, etc.
The annual sales turnover of the subject ranges from HK$60 to 65
million. Making a small profit every
year. Overall business is good.
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. 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 3G-E08.
On the other hand, PJC is also going to take part in the same Show in
2014. Its booth No. is ED-F14.
As the history of the subject is about ten years in Hong Kong, on
the whole, consider it good for normal business engagements.
(Since 2010)
|
Date |
Particulars |
Amount |
|
25-03-2010 |
Instrument: Letter of Lien Property: Nature of Deposit: TDR090911 Mortgagee: Bank of India, Hong Kong Branch. |
US$2,900,000.00 |
|
06-10-2010 |
Instrument: Security Over Deposits Property: A deposit with chargee in the amount of US$1,300,000.00 or equivalent
in other foreign currencies under Deposit A/C No. 636-379679, whatever currency
it may subsequently be denominated in, any renewal of such deposit and the
interest thereon together with any further monies in any deposit account with
the chargee at any of its offices Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
Amount secured – (i) all monies in any currency owing by the Company
to the chargee at any time, actually or contingently, in any capacity, alone
or jointly with any other person; (ii) interest on such monies, to the date
on which the chargee receives payment, at the rates payable by the Company or
which would have been payable but for any circumstance which restricts
payment and (iii) all expenses of the chargee in perfecting or enforcing the
charge |
|
01-11-2010 |
Instrument: Mortgage Property: 1) 1/240th part or share
of and in Kowloon Inland Lot No. 8262, 8203, 9139, 9079, 8265 & 8073
(Flat B4 on 10/F. or Prat Mansions, 26-36 Prat Avenue, Kowloon, Hong Kong.) 2) 1/301st part or share
of and in The Remaining Portion of Kowloon Inland Lot No. 8247 (Flat B on
3/F. of Windsor Mansion, 29-35 Chatham Road South, Kowloon, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
To secure all moneys in respect of general banking facilities |
|
01-12-2011 |
Instrument: Security Over Deposits in respect of
Obligations of the Depositor Property: By way of first fixed charge to the Chargee the account
no.701600018364 and all deposits Mortgagee: Industrial & Commercial Bank of
China (Asia) Ltd., Hong Kong. |
All monies and liabilities, present or future, actual or contingent |
|
16-07-2012 |
Instrument: Letter of Lien Property: 1) Nature of Deposit: TDR 2) Nature of Deposit: TDR 3) Nature of Deposit: TDR Mortgagee: Bank of India, Hong Kong Branch. |
US$4,500,000.00 |
|
12-12-2012 |
Instrument: Legal Charge/Mortgage Property: All that on equal undivided 720 part or share of and in All that piece
or parcel of ground registered in the Land Registry as Kowloon Inland Lot No.
8219 and the Extension Thereto and of and in the messuages erections and
buildings thereon now known as “Hankow Centre” 47 Peking Road, 4A Ashley Road
and No. 1C Middle Road (formerly known as J. Hotung House, No. 5, 7, 7A, 9,
9A, 11, 11A, 13 and 15 Hankow Road, No. 41, 43, 45 ,47, 49 and 51 Peking
Road, No. 4, 4A and 4B, Ashley Road and No. 1, 1A, 1B, 1C, 1D and 1E Middle
Road) together with the sole and exclusive right and privilege to hold use
occupy and enjoy all that Flat “A1” on the 16/F., and Portion No. 84 of the
Main Roof of the building Mortgagee: Standard Chartered Bank
(Hong Kong) Ltd., Hong Kong. |
To secure all moneys in respect of general banking facilities and
interest thereon |
|
12-12-2012 |
Instrument: Tripartite Second Legal Charge
Mortgage Property: All that one equal undivided 720 part or share of and in All that
piece or parcel of ground registered in the Land Registry as Kowloon Inland
Lot No. 8219 and the extension thereto and of and in the messuages erections
and buildings thereon now known as “Hankow Centre”, No. 47 Peking Road, 4A
Ashley Road and No. 1C Middle Road (formerly known as J. Hotung House, No. 5,
7, 7A, 9, 9A, 11, 11A, 13 and 15 Hankow Road, No. 41, 43, 45, 47, 49 and 51
Peking Road, No. 4, 4A and 4B Ashley Road and No. 1, 1A, 1B, 1C, 1D and 1E
Middle Road) together with the sole and exclusive right and privilege to hold
use occupy and enjoy All that Flat “A1” and the 16/F and Portion No. 84 and
Main Roof of the building Mortgagee: Standard Chartered Bank
(Hong Kong) Ltd., Hong Kong. |
To secure all moneys in respect of general banking facilities and
interest thereon |
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.
-
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.
-
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.59.44 |
|
|
1 |
Rs.91.24 |
|
Euro |
1 |
Rs.78.43 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.