MIRA INFORM REPORT

 

 

Report Date :

27.05.2013

 

IDENTIFICATION DETAILS

 

Name :

SHIV DIAMOND 

 

 

Registered Office :

Room 7, 11/F, Heng Ngai Jewelry Centre, 4 Hok Yuen Street East, Hung Hom, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

07.11.1993

 

 

Com. Reg. No.:

17546061 

 

 

Legal Form :

Sole Proprietorship 

 

 

Line of Business :

Manufacture, import and export of jewellery & gemstone 

 

 

No. of Employees :

 

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 :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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

 


OVERVIEW

 

Subject's Registered Name (in English ~ Chinese):

SHIV DIAMOND 

Business Registration No. (BR No.):

17546061 

Subject's Business Name (in English ~ Chinese):

N/A 

 

Registered Address:

Room 7, 11/F, Heng Ngai Jewelry Centre, 4 Hok Yuen Street East, Hung Hom, Kowloon, Hong Kong. 

 

Previous 1 Address:

Room L-1, 7/F, Kaiser Estate, Phase II, 4 Man Yue Street, Hung Hom, Kowloon, Hong Kong. 

 

Previous 2 Address:

11-F, Henley House, 68-80 Canton Road, Tsim Sha Tsui, Kowloon, Hong Kong. 

Date Of Change: 

6 Nov 2000

 

Previous 3 Address:

Room 1205, 12/F, Winfield Commercial Building, 6-8A Prat Avenue, Tsim Sha Tsui, Kowloon, Hong Kong. 

Date Of Change: 

24 Jan 2002

 

Operating/Business Address:

Room 7, 11/F, Heng Ngai Jewelry Centre, 4 Hok Yuen Street East, Hung Hom, Kowloon, Hong Kong. 

Telephone:

23751317 

Fax:

23177903 

Email:

sanjay@shivdiamond.com; info@shivdiamond.com 

Website:

www.shivdiamond.com 

 

Branch 1 Name:

001) R K Designs (date of cessation 30 Sep 2008)

Date Commenced: 

02 May 2007

Branch 1 Address:

Flat L1, 7/F, Kaiser Estate, Phase 2, 51 Man Yue Street, Hung Hom, Kowloon, Hong Kong. 

 

NACE - Code & Industry:

C32.1.2 - Manufacture of jewellery and related articles 

Certification:

N/A 

Business/Industry Trend:

Fairly Steady 

Public Filings Compliance:

No Data Available 

 

 

NACE stands for "Nomenclature Generale des Activites Economiques dans I`Union Europeenne" (General Name for Economic Activities in the European Union). NACE code system is the European standard for industry classifications and was introduced in 1970. In 1990 a revised version became applicable. The latest 2008 version is based on "International Standard Industrial Classification of all economic activities" (ISIC) of the United Nations. The codes start with numeric (e.g. 1. Agriculture, forestry and fishing) are from the 1990 version and those ones start with alphabet (e.g. A - Agriculture, forestry and fishing) are from the latest 2008 version.

 

Public Filings Compliance - looks into a number of compliance requirements such as whether Subject is promptly filing its annual return (e.g. within 42 days after the anniversary of the date of incorporation (for private companies having a share capital); whether Subject's individual director is reporting a residential address and/or whether Subject is reporting its status under the Mortgage and Charges section for Total Amount Outstanding.... etc.

 

 

SUMMARY

 

Subject is an established sole proprietorship jewellery & gemstone manufacturer, importer and exporter possessing reasonable operational experience and market base to meet its normal commitment. 

 

 

TOTAL CREDIT APPRAISAL (TCA) GUIDE

 

The TCA is an opinion of the company's capability and ability based on prevailing conditions and information made available to Total Credit at the time of appraising.

The TCA is not a recommendation to buy or sell nor is it an endorsement or non- endorsement of an issue.

The information received has been obtained from sources believed to be reliable, but its accuracy or completeness is not guaranteed.

Total Credit does not assume any part of the requestor's risk in the use or non-use of this TCA.

No part of this report may be reproduced, stored in retrieval system or transmitted, in any form or by any means.

TCA is subject to change due to any unforeseen and/or foreseen circumstances.

 

 

CORPORATE STRUCTURE

 

The following statutory information is based on the examination of Subject's file at Business Registration Office (BR), Inland Revenue Department, Hong Kong.

Date of Examination/ BR Copy Examined

21 May 2013 

Business Registration No. (BR No.)

17546061 

Business Status 

Sole Proprietorship 

Date Commenced 

7 Nov 1993 

Active Status 

Live 

 

Name Changed:

N/A

 

Branches/Trading As

N/A 

Chief Executive

KALATHIYA Sanjaybhai O 
Alias Name:
Sanjay


Details of Sole Proprietor / Partners as per B. R. copy obtained

Name

ID/BR No.

Passport No.

Issuing Country

Capacity

Address

KALATHIYA Sanjaybhai O 
Alias Name:
Sanjay

R067330-6 

N/A 

N/A 

Sole Proprietor 

Room C, 5/F, Hon Kwong Mansion, 25-29 Hankow Road, Tsim Sha Tsui, Kowloon, Hong Kong.  

 

 

HISTORY SUMMARY

 

Change of Ownership & Capital/ Share Allotment/Other Changes

No significant change in business and ownership have been reported since its inception. 

Appointment and/or Resignation of Directors or Secretary

N/A 

Admission or Retirement of Sole Proprietor/Partner

N/A 

Parent

N/A 

 

 

RELATED NEWS /FINDINGS

 

N/A

 

 

MANAGEMENT BACKGROUND

 

Name

KALATHIYA Sanjaybhai O 

Alias Name

Sanjay 

Position (Title)

Chief Executive 

Nationality

N/A 

Sex

Male 

Email

sanjay@shivdiamond.com 

Experience

21 years + 

Profile / Responsibility

Sole Proprietor. He is currently in charge of its business management, operation, administration and policymaking. 

Business Capacity

Company Name

CR/BR No.

Capacity

As at:

Shiv Diamond 

17546061 

Sole Proprietor 

21 May 2013 

Court Action

As Defendant


None found in our database

 

Profile/Responsibility and Business Capacity indicated are based on -on-file, sources, and enquiries and investigations recently conducted but do not necessarily represent the full or most updated records. For example, the status indicated under Business Capacity is based on the date shown (if available) as recorded, which might have been changed at the time the report is compiled.

 

 

FINANCIAL

 

Current Interviews & Investigations

Interviewed KALATHIYA Sanjaybhai O, Sole Proprietor, confirmed part of the details within this report but declined to disclose any financial information or business trend on the grounds of company privacy.

Sources and records reveal that its annual turnover is standing at USD7,500,000.

 

Private companies in Hong Kong (include private limited, sole proprietorship and partnership) are not required to file or disclose their financial information for public inspection.

 

 

GROUP PROFILE & FINANCIALS

 

N/A

 

 

BANKING

 

Maintaining bank accounts with HSBC and China Construction Bank (Asia) Corporation Limited. No negative implication has been reported.

 

 

TRADE RECORD

 

A trade survey currently conducted reveals the following:

 

First 

Second 

Type of Supplies

Services 

Services 

Time Known

10 Years 

15 Years 

Highest Credit

60,000 

100,000 

Outstanding Balance

25,000 

20,000 

Terms

30 days net 

30 days net 

Pay Record

Within Terms 

Within Terms 

 

 

 

Overall Trade Reputation

Satisfactory 

 

TOTAL DEBT SCANNER (TDS)

 

TDS reveals if subject has been listed as debtor in our debt database in the past 5 years and that is subject to the "Code of Practice on Consumer Credit Data" issued by Office of the Privacy Commissioner for Personal Data, Hong Kong. Accounts are sometimes placed for collection even though the existence or amount of the debt is disputed. It should be noted that the collection record contained in the report might have been paid, terminated, vacated, settled or released prior to the date of report compiled.

Search Result:


Subject

None found in our database


Related Members

None found in our database


Related Companies

None found in our database

 

 

PUBLIC FILINGS

 

Mortgages and Charges (M&C)

M&C records, if any, are extracted from the Companies Registry, Hong Kong ("CRHK"). Details of "Creating Instrument" and "Description of Property Mortgaged or Charged" are available subject to the prevailing fees as per document charged by CRHK. Please indicate/select "Full Mortgage/Charge" when ordering our services/reports (e.g.: Total Limited Company Search or Total Company Credit Report). Request for Full mortgage/Charge made 7 days after the report delivery will be treated as a new order and is subject to our "Official Document Retrieval (ODR)" service charge + related government fees. M&C brief particulars may not be available from CRHK for mortgage/charge registered before 28 Feb 2005.

filed in:

N/A 

Total Amount outstanding as of the date of this Return on all mortgages and charges which are required to be registered with the Registrar of Companies pursuant to sections 80 and 82 of the Companies Ordinance

 

TOTAL WRIT SCANNER (TWS)

 

TWS reveals if subject has been listed as Defendant/Debtor/Respondent, Plaintiff/Creditor/Applicant, in liquidation or bankruptcy within our court database in the past 7 years and that is subject to the "Code of Practice on Consumer Credit Data" issued by Office of the Privacy Commissioner for Personal Data, Hong Kong. It should be noted that the court record contained in a report might have been paid, terminated, vacated, settled or released prior to the date of a report was compiled. Civil claims are filed as the result of disputes of a commercial or other nature. The Defendant/Debtor/Respondent is not liable nor the Plaintiff/Creditor/Applicant eligible to the claim until judgement is obtained from the relevant court, which is not open for public inspection at present. Only the latest 50 records will be shown when total records exceed 50.

Search Result:

Subject

As Defendant

None found in our database

As Plaintiff

None found in our database

Comments

N/A

Related Members

As Defendant

None found in our database

Comments

N/A

Related Companies

As Defendant

None found in our database

Comments

N/A

 

 

OPERATION & ACTIVITIES

 

Business Lines

Principal Business Line 

Manufacture, import and export of jewellery & gemstone 

Second Business Line 

N/A 

 

Product/Production

China Factory 

N/A 

Size of China Factory (sq. ft.) 

N/A 

No. of Staff / Workers in China (or Overseas) 

N/A 

Product / Production Remarks 

Its production is located in China.

Its products include:

-Diamonds:
Round Brilliant Cut
Stars and Malee Full Cut
Single Cut
Tappers and Buggest Cut
Fancy CUt
White, Offwhite, TTLB, LB,DB, White Natts, TTLE Natts

-Exotic jewellery 

 

Supplies/Purchases

Hong Kong and China 

Types of Supplies 

Services and materials 

Buying Terms 

COD, TT and credit of 7 to 30 days 

 

Overseas 

Import Countries 

South East Asia 

Types of Supplies 

Materials 

Buying Terms 

TT and open account 

Remarks 

N/A 

 

Markets

Major Market 

Hong Kong, Asia, Europe, America and Middle East 

Minor Market 

N/A 

Selling Products / Services 

Jewellery & gemstone 

Selling Terms 

COD, TT and open account 

Remarks 

N/A 

 

Brands

Own Brands 

N/A 

OEM (Clients) Brands 

N/A 

Remarks 

N/A 

 

Premises and Staff

Hong Kong Office 

Area (sq. ft.) 

1,574 

Type 

Industrial 

Staff Range 

Under 3 

China Office 

Staff Range 

N/A 

Premises Remarks 

Renting a unit (owned by Subject's sole proprietor, KALATHIYA Sanjaybhai O) as its office at the captioned address, which is at a 25-year-old industrial building. Employing 1. 

Total No. of Staff in Hong Kong (China) 

 

 

TOTAL PROPERTY OWNERSHIP SEARCH (TPOS)

 

TPOS reveals if subject has been involved in property transaction record in our database since 1996. TPOS does not represent the full record or history of all transactions relating to the registered charges, mortgages or ownerships. Some of the charges, mortgages or ownerships might have been released and/or changed. There could be latest mortgages, charges, ownerships or transactions not reflected. TPOS also checks on Subject's shareholder, director, sole proprietor, partner (collectively listed under "Related Members" in this section) and/or related company while related records will be revealed when appropriate.

Search Result:


Subject

No Trace


Related Members

Property 1 

Unit 7, 11/F, Heng Ngai Jewelry Centre, 4 Hok Yuen Street East, To Kwa Wan, Kowloon, Hong Kong. 

Memorial Number 

08092902370337 

Date of Instrument 

3 Sep 2008 

Nature of Transaction 

Assignment 

Gross Area (Saleable Area) in sq. ft. 

1574 

Consideration (HKD) 

4,250,000 

Assignor/Seller 

Preford Limited 

Assignee/Purchaser 

Kalathiya Sanjaybhai O 

Mortgaged/Charged To 

China Construction Bank (Asia) Corporation Limited 

Date of Mortgage/Charge 

3 Sep 2008 

Mortgage/Charge Amount (HKD): 

N/A 


Related Companies

No Trace

 

Abbreviations:
S&P = Sales and Purchase
GBF = General Banking Facilities
N/A = Not Available/Applicable

 

 

RELATED COMPANIES

 

Related companies mean Parent Company, Subsidiary Company, Director's Other Business/Capacity, etc.

N/A



ECONOMIC AND TRADE INFORMATION ON HONG KONG

 

Major Economic Indicators

 

2009

2010

2011

Forecast/Latest

Population, Mid-year (million)

6.97

7.02

7.07

7.14a

Gross Domestic Product (US$billion)

208.0

223.3

243.2

250.5-252.9b

GDP Per Capita (US$)

29,800

31,800

34,400

35,100-35,400b

Real GDP Growth (%)

-2.6

+7.1

+5.0

+1-2b

Inflation (% Change in Composite CPI)

+0.5

+2.4

+5.3

+4.7c

Unemployment Rate, seasonally adjusted (%)

5.4

4.4

3.4

3.2d

Retail Sales Growth (%)

+0.6

+18.3

+24.9

+13.1c

Visitor Arrival Growth (%)

+0.3

+21.8

+16.4

+15.5c

a 2012; b government forecast for 2012; c year-on-year change in January-June 2012; d April-June 2012.

 

Merchandise Trade Performance

 

2010

2011

January-June 2012

US$billion

Growth %

US$billion

Growth %

US$billion

Growth %

Total Exports

388.6

+22.8

427.9

+10.1

207.6

+0.3

      Domestic Exports

8.9

+20.4

8.4

-5.5

3.6

-19.4

      Re-exports

379.7

+22.8

419.8

+10.5

204.0

+0.7

Imports

431.4

+25.0

482.6

+11.9

236.0

+1.4

Total Trade

820.0

+23.9

910.5

+11.0

443.6

+0.9

Trade Balance

-42.8

N/A

-54.8

N/A

-28.4

N/A

 

Service Trade Performance

 

 

2010

2011

January-June 2012

US$billion

Growth %

US$billion

Growth %

US$billion

Growth %

Exports

105.7

+23.1

121.2

+14.6

60.2

+7.6

Imports

50.8

+16.3

55.8

+9.8

27.4

+3.7

Total Trade

156.5

+20.8

177.0

+13.1

87.6

+6.4

Trade Balance

54.9

N/A

64.9

N/A

32.8

N/A

 


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.55.61

UK Pound

1

Rs.83.98

Euro

1

Rs.71.94

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.