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Report Date : |
06.06.2013 |
IDENTIFICATION DETAILS
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Name : |
V. D. GEMS LTD. |
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Registered Office : |
8/F., |
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Country : |
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Date of Incorporation : |
20.01.2011 |
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Com. Reg. No.: |
53643437 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trader of all kinds of diamonds, & Gemstone |
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No. of Employees : |
2 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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 |
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Moderate |
B1 |
|
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
V. D.
GEMS LTD.
Address: 8/F.,
Tung Wui Commercial Building,
27 Prat Avenue, Tsimshatsui,
Kowloon, Hong Kong.
(Formerly located at:
Room A, 3/F., Kok Pah Mansion, 58-60 Cameron
Road,
Tsimshatsui, Kowloon, Hong Kong. )
PHONE: 2739 9885
FAX: 2739 9885
Managing Director: Mr. Dharmeshbhai Lavjibhai Vaghani
(Mobile: 6293 3274)
Incorporated on: 20th
January, 2011.
Organization: Private
Limited Company.
Capital: Nominal: HK$250,000.00
Issued: HK$250,000.00
Business Category: Diamond & Gemstone Trader.
Employees:
2.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
8/F., Tung Wui Commercial Building, 27 Prat Avenue, Tsimshatsui,
Kowloon, Hong Kong.
Associated Companies:-
Manish Kumar Gems & Jew. LLC, UAE.
V. D. Gems Pvt. Ltd., India.
Vipul Diamonds, India.
53643437
1554319
Managing Director: Mr.
Dharmeshbhai Lavjibhai Vaghani
Nominal Share Capital: HK$250,000.00 (Divided into 250,000 shares of
HK$1.00 each)
Issued Share Capital: HK$250,000.00
(As per registry dated 14-08-2012)
|
Name |
|
No. of shares |
|
Dharmeshbhai Lavjibhai VAGHANI |
|
250,000 ====== |
(As per registry dated 20-01-2012)
|
Name (Nationality) |
Address |
|
Dharmeshbhai Lavjibhai VAGHANI |
10/F., 1002 Bhoomi Tower A Wing, Nehru Road, Santacruz East, Mumbai
400055, India. |
(As per registry dated 20-01-2012)
|
Name |
Address |
Co. No. |
|
Buttar.HK Ltd. |
1/F., Mau Lam Commercial Building, 16-18 Mau Lam Street, Jordan,
Kowloon, Hong Kong. |
0975326 |
The subject was incorporated on 20th January, 2011 as a private limited liability
company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room A, 3/F., Kok Pah Mansion, 58‑60 Cameron
Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address with effect
from 23rd May, 2012.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Diamond
& Gemstone Trader.
Lines: All
kinds of diamonds, etc.
Employees: 2.
Commodities Imported: India, other Asian countries, Europe, etc.
Markets: Hong
Kong, China, other Asian countries, Europe, etc.
Terms/Sales:
L/C, Advanced T/T,
etc.
Terms/Buying: L/C,
D/P, O/A, etc.
Nominal Share Capital: HK$250,000.00 (Divided into 250,000 shares of
HK$1.00 each)
Issued Share Capital: HK$250,000.00
Profit or Loss: Too early to offer an opinion.
Condition: Business
is under development.
Facilities: Is
making use of general banking facilities.
Payment:
Met trade
commitments as required.
Commercial Morality: Satisfactory.
Banker:
The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Having issued 250,000 ordinary shares of HK$1.00 each, V. D. Gems Ltd.
is wholly owned by Mr. Dharmeshbhai Lavjibhai Vaghani who is an Indian. He is an India passport holder and does not
have the right to reside in Hong Kong permanently. He is also the only director of the subject.
The subject is a diamond trader.
Vaghani can be reached at his mobile phone number 852-6293 3274.
The subject has had an associated company in India known as V. D. Gems
Pvt. Ltd. [V. D. Gems] which is a family business.
V. D. Gems was established in 1980 in Mumbai, India. It has been serving the diamond industry for
30 years and it has established a stable and repeated customer base locally as
well as Globally by providing World Class Quality Diamonds.
It has had Surat, Bhavnagar and Botad Diamond Manufacturing companies in
India.
V. D. Gems is manufacturing wide range of Single Cut
Diamonds, Full Cut Diamonds, Treated Diamonds,
Fancy Cut Diamonds, Princess Cut Diamonds,
Fancy Shape Diamonds in all sizes and all colours (White, next to White, TTLB,
TLC and NATTS) in a wide range of prices. It also manufactures Gun Metal/ Black Diamonds
which is used in White Gold and Silver Jewellery. It is also providing Treated Colour Diamonds
in different colours like Red, Yellow, Lemon, Blue, etc. with the help of
Nuclear Technology.
Most of the products bear the trade mark VD.
The subject imports commodities from V. D. Gems. Products are marketed in Hong Kong, China,
North America, Central and South America, etc.
The subject’s business is chiefly handled by Vaghani himself. Business is still under development.
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 2013” which will be
held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during
the period of 5th to 9th March, 2013.
It is also going to take part in “Hong Kong Watch & Clock Fair 2013”
which will be held in the same venue during the period of 4th to 8th September,
2013.
The history of the subject in Hong Kong is just about two years.
On the whole, since the history of the subject is short, consider it
good for normal business engagements on L/C basis.
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.56.42 |
|
|
1 |
Rs.86.53 |
|
Euro |
1 |
Rs.73.85 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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 |
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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 |
|
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 |
|
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.