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Report Date : |
11.03.2013 |
IDENTIFICATION DETAILS
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Name : |
LEO
SCHACHTER DIAMONDS EAST
LTD |
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Registered Office : |
Unit B, 7/F., BOCG Insurance Tower, 134-136 Des Voeux Road, Central |
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Country : |
Hong Kong |
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Date of Incorporation : |
21.02.2005 |
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Com. Reg. No.: |
35355636 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler
of all kinds of jewellery and diamonds |
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No. of Employees : |
07 |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
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'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 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the 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 28 million in 2011, 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 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% 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. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. 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 |
LEO SCHACHTER DIAMONDS EAST LTD
Unit B, 7/F., BOC Group Life Assurance Tower, 136 Des Voeux Road Central, Hong Kong.
PHONE: 2180 7370
FAX: 2180 7373
E-MAIL: hongkong@lsdco.com
Representative: Mr. Christopher Harvey Hall
Registered in Hong Kong on: 21st February, 2005
(Non-Hong Kong Company)
Organization: Private Limited Company.
Capital: Authorised: US$50,000.00
Issued & Paid Up: US$4,100.00
Business Category: Diamond Trader.
Employees: 7.
Main Dealing Bankers: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Satisfactory.
Hong Kong Principal
Place of Business:-
Unit B, 7/F., BOCG Insurance Tower, 134-136 Des Voeux Road, Central, Hong Kong.
Associated
Companies:-
Kama Schachter Jewellery Pvt. Ltd., India.
Kama Schachter Jewelry Hong Kong Ltd., Hong Kong.
Kama-Schachter Jewelry Inc., US.
Leo Schachter (Shanghai) Diamonds Ltd., China.
Leo Schachter Diamonds DMCC, U.A.E.
Leo Schachter Diamonds India Pvt. Ltd., India.
Leo Schachter Diamonds LLC., US.
Leo Schachter Doamonds Ltd., Israel.
Leo Schachter East Ltd., British Virgin Islands.
Leo Schachter International Ltd., Hong Kong.
Moshe Namdar & Associates LLC., US.
Moshe Namdar & Co. Ltd., Israel.
Schachter & Namdar (Pty) Ltd., South Africa.
Schachter & Namdar Asia Ltd., Hong Kong.
William Goldberg Diamond Corp., US.
35355636
F0013882
Authorized Representative in Hong Kong: Mr. Christopher Harvey Hall
[Address: Flat 801A, Villa Verde, 4-18 Guildford Road, The Peak, Hong Kong.]
Authorised Capital: US$50,000.00
Issued & Paid Up Capital: US$4,100.00
Shalev Bieler, Galit Hana
Steinmetz, Michael Jeffrey
|
Name |
Address |
Co. No. |
|
TMF Secretaries (HK) Ltd. |
36/F., Time Square, Tower Two, 1 Matheson Street, Causeway
Bay, Hong Kong. |
0099444 |
The subject was incorporated in the British Virgin Islands as a limited company. It has established a principal place of business in Hong Kong and was registered on 21st February, 2005 as a Non Hong Kong company under part XI of the Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of jewellery and diamonds, etc.
Employees: 7.
Commodities Imported: Belgium, Israel, India, etc.
Markets: Hong Kong, other Asian countries, Europe, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Authorised Capital: US$50,000.00
Issued & Paid Up Capital: US$4,100.00
Mortgage or Charge: (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Keeping in a satisfactory manner.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Standing: Normal.
Leo Schachter Diamonds East Ltd. is a Non-Hong Kong Company which was incorporated in the British Virgin Islands.
The representative of the subject Mr. Christopher Harvey Hall who is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently. Currently, he is residing in Hong Kong.
The subject is one of the leading fine diamond companies. Its heritage encompasses a family of four generations of master artisans who are “handcrafting the world’s most beautiful and brilliant diamonds”. One of its significant brand names is the Leo Diamond®.
The subject is one of the key members of Leo Schachter Diamonds Group [Leo Schachter Diamonds] of Companies.
The Group was set up in 1975. It was founded in New York of the United States but now its headquarters are in Israel.
Leo Schachter Diamonds was founded over half a century ago by Leo Schachter, whose passion for diamonds was inherited from his father and has been passed down to his children and grandchildren.
The followings are
some of the famous products of the subject:-
Diamond Necklace, Diamond Bangle, Diamond Ring, White Gold Necklace, etc.
In Hong Kong, the Group has set up a joint venture with an Indian firm Kama Jewellery India Pvt. Ltd. known as Kama Schachter Jewelry Hong Kong Ltd. [Kama Schachter]. Kama Schachter is one of the largest manufacturers, exporters and distributors of diamond jewelry in Asia. It caters to international market. It has 3 large factories and a diamond sourcing office, employing about 1,000 people in India. It introduces 200 new styles every month and work with designers globally to be at the cutting edge of style.
Now, Leo Schachter has set up a number of associated companies in the United States, Israel, India, the United Arab Emirates, China, South Africa, etc. Annual sales turnover of the Group is very significant.
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. Its booth No. is 3CON-008.
The subject is fully supported by the Leo Schachter Group.
As the history of the subject is over eight years in Hong Kong, on the whole, consider it good for normal business engagements.
|
Date |
Particulars |
Amount |
|
14-11-2010 |
Instrument: Debenture Property: The Company charges & mortgages to the Secured Party by way of first floating charge all of the company’s undertaking, property, assets, goodwill, rights & revenues, whatsoever and whosesoever, both present & future, including all book and other debts, goods, instruments, agreements, contracts, accounts, chattel paper, deposit accounts, letter-of-credit rights, tort claims, securities & all other investment property, general intangibles, payment intangibles, software, tax refund claims and supporting obligations, the uncalled capital, goodwill and all patents, patent applications, trade marks, trade names, registered designs, copyright, licences & ancillary and connected right, both present and future, and all accessions to or substitutions for and all replacements, products & proceeds of any and all the foregoing Mortgagee: Standard Chartered Bank (Hong Kong) Ltd.,
Hong Kong. |
As continuing security for the due payment &
discharge of the liabilities |
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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The diamond jewellery industry in India today may be more than Rs 60000
mil and is rated amongst the fastest growing in the world. Indi ranks
third in the world in domestic diamond consumption.
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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 –
DIAMOND SAGA –
DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
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Most of the money borrowed from the banks in the name of their diamond
business has been diverted in real estate and the share market. The banks are
not in a position to seize their properties because in many cases, these were
purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.40 |
|
UK Pound |
1 |
Rs.81.57 |
|
Euro |
1 |
Rs.71.24 |
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 |
|
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 |
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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.