MIRA
INFORM REPORT
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Report Date : |
10.05.2013 |
IDENTIFICATION DETAILS
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Name : |
NOMADS DIAM LTD. |
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Registered Office : |
Room 901, 9/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon |
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Country : |
Hong Kong. |
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Date of Incorporation : |
05.09.2012. |
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Com. Reg. No.: |
60317180 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Importer, Exporter and Wholesaler of Polished diamonds, etc. |
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No. of Employees : |
12. (Including associates) |
RATING & COMMENTS
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MIRA’s Rating : |
NB |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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-- |
NB |
New Business |
-- |
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Status : |
New Company |
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Payment Behaviour : |
Unknown |
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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
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Hong Kong |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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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 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
NOMADS DIAM LTD.
ADDRESS: Room 901, 9/F., Chevalier House, 45-51
Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 3170 5172
FAX: 3171 4224
Managing Director: Mr.
Shaileshkumar Manubhai Khunt
Incorporated on: 5th
September, 2012.
Organization: Private
Limited Company.
Capital: Nominal: HK$100,000,000.00
Issued: HK$1.00
Business Category: Diamond Trader.
Employees: 12. (Including associates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Room 901, 9/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui,
Kowloon, Hong Kong.
Associated Companies:-
D. Goldi BVBA, Belgium.
Jewel Goldi (India), India.
M B Impex Ltd., Hong Kong.
M B Impex, Hong Kong.
R. Goldi (Shanghai) Diamond Co. Ltd., China.
R. Goldi Diamond (Shanghai) Co. Ltd., China.
S. Goldi (Asia) Ltd., Hong Kong.
(Same address)
S.Goldi, Hong Kong. (Same
address)
Shree Ramkrishna Export Pvt. Ltd., India.
The Jewelry Co., India.
TJC Jewelry Inc., US.
V. Goldi Ltd., Israel.
etc.
60317180
1795936
Managing Director: Mr.
Shaileshkumar Manubhai Khunt
Nominal Share Capital: HK$100,000,000.00 (Divided into 100,000,000
shares of HK$1.00 each)
Issued Share Capital: HK$1.00
(As per registry dated 05-09-2012)
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Name |
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No. of share |
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Nileshkumar Popatbhai CHANCHAD |
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1 = |
(As per registry dated 05-09-2012)
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Name (Nationality) |
Address |
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Shaileshkumar Manubhai KHUNT |
Flat D, 12/F., Winston Mansion, 121-123 Chatham Road, Tsimshatsui,
Kowloon, Hong Kong. |
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Nileshkumar Popatbhai CHANCHAD |
Flat G, 10/F., Kimberley Mansion, 15 Austin Avenue, Tsimshatsui,
Kowloon, Hong Kong. |
(As per registry dated 05-09-2012)
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Name |
Address |
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Bayani Divino Bautista PONCE |
Flat A, 8/F., Tower 5, Caribbean Coast, 2 Kin Tung Road, Tung Chung,
Lantau Island, Hong Kong. |
The subject was incorporated on 5th September, 2012 as a private limited
liability company under 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: Polished
diamonds, etc.
Employees: 12. (Including associates)
Commodities Imported: Belgium, India, Israel, etc.
Markets: China,
Belgium, US, other Asian countries, Australia, Middle East, etc.
Terms/Sales:
As per contracted.
Terms/Buying: L/C,
Advanced T/T, etc.
Nominal Share Capital: HK$100,000,000.00 (Divided into 100,000,000
shares of HK$1.00 each)
Issued Share Capital: HK$1.00
Profit or Loss: Too early to offer an opinion.
Condition: Business
is under development.
Facilities: Making
fairly active 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 just one ordinary shares of HK$1.00 each, Nomads Diam Ltd.
is wholly owned by Mr. Nileshkumar Popatbhai Chanchad who is an Indian. The directors of the subject Shaileshkumar
Manubhai Khunt and Nileshkumar Popatbhai Chanchad are Hong Kong ID Card holders
and have got the right to reside in Hong Kong permanently.
The subject shares the same office with its associated company S. Goldi
(Asia) Ltd. [S. Goldi].
Having issued 5 million ordinary shares of HK$1.00 each and incorporated
on 30th April, 2007, S. Goldi is wholly owned by Mr. Mansukhbhai Bhikhabhai
Budheliya. Directors are Mansukhbhai
Bhikhabhai Budheliya and Nileshkumar Popatbhai Chanchad. Both are Indian and residing in
Hong Kong.
The subject and S. Goldi are engaged in the same lines of business.
The subject is a diamond trader.
It is an affiliated company of Shree Ramkrishna Exports Pvt. Ltd. [SRKE]
which was set up in 2004 in India. The
founder of SRKE Govind Dholakia is also the Chairman of the SRKE Group of
companies.
The subject is trading in the same products as SRKE. It is responsible for the markets of the Asia
Pacific region. Its core products are
loose diamonds, fancy diamonds, carat size diamonds, certified stones — GIA
Dossiers ad GIA up to 3 carats. Other
products include ladies’ ring, ladies’ bangle, feather shape jewellery,
etc. Products are exported to China,
Japan, South Korea, Taiwan and Southeast Asia, Europe, North America, etc.
SRKE is one of India’s leading diamond manufacturers. SRKE is trading in diamonds, ranging from
0.30 to 3.00 carats in weight and D to J colours. Founded in 1976 by Govind Dholakia, SRKE
today has a 5,000 strong workforce in India.
Its office and factory area is about 250,000 sq.ft.
In 2003, SRKE established its own jewellery outlet, Jewel Goldi, at
Seepz, Mumbai, to make diamond-studded jewellery for international
markets. In 2004, SRKE set up Jewel
Goldi (India), at MIDC, Mumbai, to serve the domestic market.
SRKE provides the subject will all kinds of diamonds and jewellery
products. According to SRKE, it has
invested in a state-of-the-art manufacturing facility at Surat with the
capacity to process more than 720 thousand carats of rough diamonds annually
(approx. 60,000 carats Rough Diamonds every Month).
SRKE is also operated by Mr. Mansukhbhai Bhikhabhai Budheliya. Besides Hong Kong, the Group now has
affiliated companies in Israel, the United States, India, Belgium, China, etc.
In 2012, SRKE was honoured with “Silver Certificate of Merit” by The
Jury and the Executive Committee of The Economic Times India Manufacturing
Excellence Awards 2012 for Manufacturing and Supply Chain Excellence.
In 2013, it got the membership of United States Green Building Council
(USGBC).
The subject has had an associated company R. Goldi (Shanghai) Diamond
Co. Ltd. in Shanghai, China. This firm
was set up in 2007 and now located at Room 421, 4/F., Jinmao Building, 88
Century Road, Pudong New Area, 200120 Shanghai, China.
The subject is fully supported by SRKE and its associated company S.
Goldi. History in Hong Kong is just over
seven months.
On the whole, since the history of the subject is short in Hong Kong,
consider it good for normal business engagements on secured 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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.24 |
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UK Pound |
1 |
Rs.84.30 |
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Euro |
1 |
Rs.71.36 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>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 |
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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 |
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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 |
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<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.