|
Report Date : |
27.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
DEHRES LTD. |
|
|
|
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Registered Office : |
Room 3501, 35/F., Edinburgh Tower, The Landmark, Central |
|
|
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Country : |
Hong Kong |
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|
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Date of Incorporation : |
05.02.1985 |
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Com. Reg. No.: |
09491288 |
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Legal Form : |
Private Limited Company |
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LINE OF BUSINESS : |
IMPORTERS,
WHOLESALERS AND EXPORTERS; MANUFACTURERS OF DIAMOND JEWELLERY, GEMSET
JEWELLERY, PLATINUM JEWELLERY, POLISHED DIAMONDS, EMERALDS, RUBIES AND
SAPPHIRES |
|
|
|
|
No. of Employees : |
15 |
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 |
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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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 |
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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 |
DEHRES LTD.
Room 3501, 35/F., Edinburgh Tower, The Landmark, Central, Hong Kong.
PHONE: 852-2521 3411
FAX: 852-2845 0506
E-MAIL: zion@dehres.com
info@dehres.com
Managing Directors: Mr.
Ephraim Zion
Mrs. Hannah Zion
Incorporated on: 5th February, 1985.
Organization: Private Limited Company.
Capital: Nominal: HK$15,000,000.00
Issued: HK$15,000,000.00
Business Category: Diamond
Merchant.
Employees: 15.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Very Good.
DEHRES LTD.
Registered Head
Office:-
Room 3501, 35/F., Edinburgh Tower, The Landmark, Central,
Hong Kong.
Holding Company:-
EZ Holdings Ltd., British Virgin Islands.
Associated
Companies:-
Dehres LLC, US.
Dehres Shanghai Ltd., China.
Dehres (Thai) Co. Ltd.
Room 37-B, Jewelry Trade Center, 919/442 Silom Road, Bangrak,
Bangkok 10500, Thailand.
[Tel: (66 2) 630 1161; Fax: (66
2) 630 1160
E-mail: rony@dehresthai.com]
09491288
0146805
Managing Directors: Mr.
Ephraim Zion [Husband]
Mrs. Hannah
Zion [Wife]
General Manager: Mr. Ronen Zion
Sales Managers: Mr. Erez
Zion
Mr. Simon Zion
Nominal Share Capital: HK$15,000,000.00
(Divided into 15,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$15,000,000.00
(As per registry dated 05-02-2013)
|
Name |
|
No. of shares |
|
EZ Holdings Ltd. P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola,
British Virgin Islands. |
|
14,999,999 |
|
EZ Management Ltd. P. O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands. |
|
1 |
|
|
|
––––––––– |
|
|
Total: |
15,000,000 ======== |
(As per registry dated 05-02-2013)
|
Name (Nationality) |
Address |
|
Hannah ZION |
F5, Repulse Bay Tower, 119A Repulse Bay Road, Hong Kong. |
|
Ephraim ZION |
F5, Repulse Bay Tower, 119A Repulse Bay Road, Hong Kong. |
(As per registry dated 05-02-2013)
|
Name |
Address |
Co. No. |
|
Silver Quality Co. Ltd. |
Room 1403B, 9 Queen’s Road Central, Hong Kong. |
0199472 |
The subject was incorporated on 5th February, 1985 as a private limited
liability company under the Hong Kong Companies Ordinance.
It was formerly registered under the name of Brightspot Ltd., name
changed to Dehres International Ltd. on 16th April, 1985, and further to the
present style on 5th March, 2004.
The subject moved to the present address from Room 2018, 20/F.,
St. George Building, 2 Ice House Street, Central, Hong Kong in early 2001.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importers,
Wholesalers and Exporters; Manufacturers.
Lines: Diamond jewellery,
gemset jewellery, platinum jewellery, polished diamonds, emeralds, rubies and
sapphires.
Employees: 15.
Commodities Imported: Mainly
imported from Europe, Israel, US, Thailand, etc.
Markets: Hong
Kong, Japan, Southeast Asia, Middle East, Europe, US, etc.
Terms/Sales: Various terms.
Terms/Buying: L/C, T/T, D/P, etc.
The Hong Kong General Chamber of Commerce, Hong Kong.
The Diamond Importers Association Ltd., Hong Kong.
Nominal Share Capital: HK$15,000,000.00
(Divided into 15,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$15,000,000.00
Increases of Nominal Capital:-
|
From |
HK$ 10,000.00 |
to |
HK$10,000,000.00 |
on |
25-05-1988 |
|
From |
HK$10,000,000.00 |
to |
HK$15,000,000.00 |
on |
28-07-1999 |
Mortgage or Charge: (See attachment)
Profit & Loss: Traded
at a profitable angle.
Condition: Keeping in a satisfactory
manner.
Facilities: Actively using general
banking facilities.
Payment: Met as required.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong.
Bangkok Bank Public Co. Ltd., Hong Kong
Branch.
The Chase Manhattan Bank, Hong Kong
Branch.
ABN AMRO Bank N.V., Hong Kong Branch.
GE Capital Finance Ltd., Hong Kong.
Standing: Good.
Dehres Ltd. is a diamond importer controlled by Mr. Ephraim Zion who is
an Israeli merchant. Mr. Zion was known
when he established Emdia Co. on 3rd December, 1971 which is engaged in
diamond trading business.
In keeping with continuous expansion, in August 1981, Zion converted his
company into a private limited company named as Emdia Ltd. and traded under the
style of Siba Co. Emdia Ltd. was then
jointly owned by Mr. Zion and Mr. Ronald Abram. In May 1985, he sold all his shares in Emdia
Ltd. to his partner and started his own business under the name of Dehres
International Ltd. which is the subject.
Now, he is managing the business with the assistance of his wife Mrs.
Hannah Zion who is an American.
The subject was jointly held by Mr. Ephraim Zion, holding 67.3%, and
Silver Quality Co. Ltd., a Hong Kong-registered firm holding 32.7%. Now the subject is a wholly-owned subsidiary
of EZ Holdings Ltd. which is a BVI‑registered firm.
Besides Hong Kong, Mr. Zion has set up offices in Bangkok, New York and
Tel Aviv. Now, the subject is a
worldwide diamond and jewellery manufacturer whose diamond cutting centres in
Tel Aviv, Israel and New York.
The subject is the distribution centre operated by the Zion family, a
third generation of diamond cutters, who is conducting its global operations.
The subject’s diamond inventory contains a wide variety of goods ranging
from 0.50 carat and up, from D colour to H colour and including natural fancy
yellow colour diamonds.
The subject is trading in the following products:-
Certified diamonds, large size diamonds, fancy colour diamonds, fancy
shape diamonds, diamond jewellery, polished diamonds, etc.
Most of the subject’s customers are in Asia, the Middle East, Europe and
the United States.
Its jewellery is manufactured partly in Hong Kong in its factory with
European trained supervisors and craftsmen and partly manufactured in Europe.
Ephraim Zion is a member of the Broad of Governors at Gemmological
Institute of America. The subject now
has become Asia’s leading dealers of large diamonds and fancy-coloured
diamonds.
In recent years, the subject has been producing medium-priced diamonds
in Southeast Asia.
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.
As the history of the subject in Hong Kong is over 28 years, on the
whole, consider it good for normal business engagements.
Property information of
the company:-
1. Property Location: Apartment No. F on 5/F. & 6/F. of
Block F and Car Parking Space No. 59, Repulse Bay Towers, 119A Repulse Bay
Road, Hong Kong.
Owner: Dehres International Ltd.
Date of Purchase: 17-05-1989
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
01-09-2000 |
- |
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
2. Property Location: Apartment No. G on 5/F. & 6/F. of Block
G and Car Parking Space No. 20, Repulse Bay Towers, 119A Repulse Bay Road, Hong
Kong.
Owner: Dehres International Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
28-06-1996 |
- |
ABN AMRO Bank N.V., Hong Kong Branch. |
Mortgage to secure general banking facilities |
MORTGAGE OR CHARGE
|
Date |
Particulars |
Amount |
|
28-06-1996 |
Instrument: Mortgage Property: 1/56th part or share of and in Section B of Rural Building Lot No.
168, The Remaining Portion of Section A of Rural Building Lot No. 168 and
Section B of Subsection 3 of Section A of Rural Building Lot No. 168
(Apartment No. G on 5/F. & 6/F. of Block G and Car Parking Space No. 20
of Repulse Bay Towers, 119A Repulse Bay Road, Hong Kong.) Mortgagee: ABN AMRO Bank N.V., Hong Kong
Branch. |
All monies and interest thereon |
|
01-09-2000 |
Instrument: Mortgage Property: 1/56th part or share of and in Section B of Rural Building Lot No.
168, The Remaining Portion of Section A of Rural Building Lot No. 168 and
Section B of Subsection 3 of Section A of Rural Building Lot No. 168
(Apartment No. F on 5/F. & 6/F. of Block F and Car Parking Space No. 59
of Repulse Bay Towers, 119A Repulse Bay Road, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
To secure general banking facilities |
|
06-07-2004 |
Instrument: Charge on all Deposits to secure
obligations of the chargor Property: All the right, title and interest of the Company whatsoever, present
and future, in and to: A) The Deposits; B) All interest accruing
from time to time on the Deposits; C) Without limitation of the
foregoing, any rights the Company may have individually or any rights the
Company may have through the bank now or hereafter arising in or to any
deposit account of the Company with the Bank; and D) Any certificate or
other instruments relating to any or all of the above The Chargor has deposited or as agreed to deposit with the Bank a
certain sum of money, which expression includes: A) Any currency into
which such sum may from time to time be converted; and B) All other sum or sums
which are from time to time deposits by the Chargor into any deposit account
of the Chargor with the Bank at any office of the Bank and whether in
addition to or by way of renewal of or replacement for any sums previously
deposited or otherwise & whether in the same or other currency Mortgagee: ABN AMRO Bank N.V., Hong Kong
Branch. |
All moneys and obligations and liabilities whether actual or
contingent, now or hereafter due, owing or incurred by the company to the
Bank |
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 –
-
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.59.85 |
|
|
1 |
Rs.92.30 |
|
Euro |
1 |
Rs.78.22 |
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.