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Report Date : |
16.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
DIAROUGH (HONG KONG) LTD. |
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Registered Office : |
Unit 1103, 11/F., Tower B, Hunghom Commercial Centre, Ma Tau Wai Road,
Hung Hom, Kowloon |
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Country : |
Hong Kong |
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|
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Date of Incorporation : |
15.12.1992 |
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Com. Reg. No.: |
16799407 |
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Legal Form : |
Private Limited Company |
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LINE OF BUSINESS : |
IMPORTER,
EXPORTER AND WHOLESALER OF ALL KINDS OF DIAMONDS AND JEWELLERY |
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No. of Employees : |
8 |
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 |
|
---- |
NB |
New Business |
---- |
|
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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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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
|
Source
: CIA |
DIAROUGH (HONG
KONG) LTD.
ADDRESS: Unit 1103, 11/F., Tower B, Hunghom Commercial Centre, Ma Tau
Wai Road, Hung Hom, Kowloon, Hong Kong.
PHONE: 852-2721 2682-901
FAX: 852-27216576
E-MAIL : neresh@diarough.com
neresh@diaroughhk.com
sales@diaroughhk.com
Managing Director : Mr. Nareshkumar Hirachand Surana
Incorporated on : 15th December,1992.
Organization : Private Limited Company.
Capital: Nominal :
HK$200,000.00
Issued : HK$200,000.00
Business Category : Diamond Trader.
Employees : 8.
Main Dealing Banker : ABN AMRO Bank N.V., Hong Kong Branch.
Banking Relation : Good.
DIAROUGH (HONG
KONG) LTD.
ADDRESS:
Registered Head
Office:-
Unit 1103, 11/F., Tower B, Hunghom Commercial Centre, Ma Tau Wai Road,
Hung Hom, Kowloon, Hong Kong.
Egon Diamond S.A., Luxembourg.
Aryea International Ltd., Mauritius.
Cavrois Uni-D S.A., France.
D Delight LLC, US.
DIA-CUT D.C.W. Co. Ltd., Thailand.
Diarough (Shanghai) Diamonds Ltd., China.
Diarough Canada Sales Inc., Canada.
Diarough European Sales NV, Belgium.
Diarough Fareast Holdings Pte. Ltd., Singapore.
Diarough Management SARL, Luxembourg.
Diarough N.V., Belgium.
Diarough SICAR SCA, Luxembourg.
Diarough Sourcing SA, Luxembourg.
Egon African Holding Ltd., Mauritius.
Egon Finance International SA., Luxembourg.
Egon Finance S.A., Luxembourg.
Egon Holding S.A., Luxembourg.
Egon International Inc., US.
Egon jewellery S.A., Luxembourg.
Egon Re S.A, Luxembourg.
Mahendra Brothers Exports Pvt. Ltd., India.
New Heritage Ltd., Hong Kong.
Sixth Dimension LLC, US.
Sixth Dimension SA, Luxembourg.
Superior Diamonds Pty. Ltd., Australia.
Teemanee Manufacturing Co. Pty. Ltd., Botswana.
Uni-Creation Inc, US.
Uni-Design Elite Jewellery Pvt. Ltd., India.
Uni-Design Europe BVBA, Belgium.
Unidesign Fareast Ltd., Hong Kong.
Uni-Design Jewellery India Pvt. Ltd., India.
Unidesign Jewellery Pvt. Ltd., India.
etc.
16799407
0394538
Managing Director: Mr.
Nareshkumar Hirachand Surana
Contact Person: Ms. Hima Prince
Nominal Share Capital :
HK$200,000.00
(Divided into 200,000 shares of HK$1.00 each)
Issued Share Capital :
HK$200,000.00
(As per registry dated 15-12-2012)
|
Name |
|
No. of shares |
|
Egon Diamond S.A. 23, avenue Monterey Luxembourg l-2086, Luxembourg. |
|
200,000 ====== |
(As per registry dated 15-12-2012)
|
Name (Nationality) |
Address |
|
Nareshkumar Hirachand SURANA |
House 37, Boulevard Du Palais, The Beverly Hills, 23 Sam Mun Tsai
Road, Tai Po, New Territories, Hong Kong. |
|
Nishit Mahendra Kumar PARIKH |
Room 1103, 11/F., Tower B, Hunghom Commercial Centre, 37 Ma Tau Wai
Road, Hunghom, Kowloon, Hong Kong. |
(As per registry dated 15-12-2012)
|
Name |
Address |
Co. No. |
|
TMF Secretaries (HK) Ltd. |
36/F., Tower Two, Times Square, 1 Matheson Street, Causeway Bay, Hong
Kong. |
0099444 |
The subject was incorporated on 15th December,1992 as a private limited
liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Harbour Diamond
Investment Ltd., name changed to the present style on 4th May, 1993.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities :
Importer, Exporter and Wholesaler.
Lines :
All kinds of diamonds and jewellery.
Employees : 8.
Commodities Imported : India,
Belgium, other Asian countries, etc.
Markets :
Hong Kong, China, other Asian countries, Europe, North America, etc.
Terms/Sales : L/C, Advanced T/T, etc.
Terms/Buying : L/C, D/P, O/A, etc.
Hong Kong Jewelry Manufacturers’ Association, Hong Kong.
Hong Kong Jewellery & Jade Manufacturers Association,
Hong Kong.
[Membership No. #AM083-00]
The Hong Kong General Chamber of Commerce, Hong Kong.
[Membership No.: HKD0651
The Indian Chamber of Commerce Hong Kong, Hong Kong.
Nominal Share Capital :
HK$200,000.00
(Divided into 200,000 shares of HK$1.00 each)
Issued Share Capital :
HK$200,000.00
Mortgage or Charge : (See attachment)
Profit or Loss : Making a small profit every year.
Condition : Keeping in a good manner.
Facilities : Making rather active use of general banking
facilities.
Payment : Met trade commitments as required.
Commercial Morality : Satisfactory.
ABN AMRO Bank N.V., Hong Kong Branch.
The Bank of New York Mellon, New York.
Standing : Very Good.
Diarough (Hong Kong) Ltd. is a wholly-owned subsidiary of Egon Diamond
S.A. which is a Luxembourg-registered company.
The subject is a member of Diarough Group [Diarough/Group] of companies
while the core member is Diarough N.V., a Belgium-based firm. The directors of the subject are also the
founders and CEOs of Diarough N.V.
The managing director of the subject is Mr. Nareshkumar Hirachand
Surana.
The subject is trading in the same commodities of Diarough. It is trading in almost all qualities and
sizes- from “stars” to large special stones.
Main products are the followings:-
Loose diamonds, diamond set, fancy diamonds, 2.67-4.01 carat loose
diamonds, etc.
It also has GIA, HRD, AGS & IGI laser inscribed certified
stones. On the other hand, it is able to
provide outstanding new cuts for individual customers.
Diarough is also one of the world’s leading manufacturers of Natural
Fancy colour diamonds.
Diarough N.V. operates as a diamond dealer in Belgium and
internationally. It designs,
manufactures, and supplies diamond jewellery.
The company offers fancy colour diamonds and white diamonds. It sells its products to manufacturers,
polished diamond wholesalers, and diamond jewellery retailers. The company has
factories in India, Thailand, Botswana, South Africa, and Canada. Diarough N.V. was founded in 1960 and is
based in Antwerp, Belgium.
Diarough sources its rough diamonds from all major international miners
including DTC, BHP and Rio Tinto.
Now, Diarough has set up associated companies in many countries of the
world. Business is active and
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 2014” which will be
held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during
the period of 5th to 9th March, 2014.
Its booths No. are 3CON-012 and S230-01.
The contact person of the subject is Ms. Hima Prince. Annual sales turnover is very
significant. History in Hong Kong is
about 21 years.
The subject has had another associated company New Heritage Ltd. [NHL]
which is located at the next door of the subject. The managing director of NHL is also Mr.
Nareshkumar Hirachand Surana. NHL is
trading in all kinds of jewellery watches.
On the whole, consider the subject good for normal business engagements.
|
Date |
Particulars |
Amount |
|
28-09-2012 |
Instrument: Security
Agreement Property: As beneficial owner, charges the Account to the Security Agent by way
of first fixed charge as follow:- Bank: ABN-AMRO BANK N.V. Address: 14/F., Lincoln
House, 979 King’s Road, Quarry Bay, Hong Kong. Account Name: Diarough (Hong
Kong) Ltd. US$Saving Account No.: 60-48-900 US$Current Account No.: 60-48-889 HK$Savings Account No.: 60-48-900 HK$Current Account No.: 60-48-889 Mortgagee: The Bank of New
York Mellon |
As a continuing security for the discharge on the Security Agent’s
demand of the Secured Obligations and compliance on the Security Agent’s
demand with the provisions of the Agency Agreement dated 28th September, 2012 |
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.
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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.
-
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.63.06 |
|
|
1 |
Rs.101.15 |
|
Euro |
1 |
Rs.84.95 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.