|
Report Date : |
29.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
VENI
DIAM LTD. |
|
|
|
|
Registered Office : |
Room 1504, 15/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui,
Kowloon |
|
|
|
|
Country : |
Hong Kong |
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|
|
|
Date of Incorporation : |
21.06.2012 |
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|
|
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Com. Reg. No.: |
59991351 |
|
|
|
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Legal Form : |
Private Limited Company. |
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|
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Line of Business : |
Trader of all kinds of diamonds and jewellery products, emerald,
precious stones |
|
|
|
|
No. of Employees : |
4. (Including associate) |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow but correct |
|
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 |
VENI DIAM
LTD.
ADDRESS: Room 1504, 15/F., Hart Avenue Plaza, 5-9
Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2191 9494, 852-2192 9493
FAX: 852-2191 9492
E-MAIL: keyur@vaibhavgems.com
Managing
Director: Mr. Keyur Pankaj Vedecha
Incorporated
on: 21st June, 2012.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10,000.00
Business Category:
Diamond Trader.
Employees: 4. (Including associate)
Main Dealing
Banker: The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Banking
Relation: Satisfactory.
Registered Head Office:-
Room 1504, 15/F.,
Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
Mailing Address:-
P.O. Box 91115,
Tsimshatsui, Kowloon, Hong Kong.
Little Star Ltd.,
Hong Kong. (Same address)
Belga Diam Co.
Ltd., Thailand.
Dream Creations
Jewelery, Hong Kong. (Same address)
Hiralal Chhaganlal
& Co., India.
59991351
1763511
Managing
Director: Mr. Keyur Pankaj Vedecha
Nominal Share
Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share
Capital: HK$10,000.00
(As
per registry dated 21-06-2012)
|
Name |
|
No.
of shares |
|
Little Star Ltd., Hong Kong. |
|
10,000 ===== |
(As
per registry dated 16-04-2013)
|
Name (Nationality) |
Address |
|
Keyur Pankaj
VEDECHA |
Room 1606, 16/F., Hart Avenue Plaza, 5-9
Hart Avenue, Tsimshatsui, Kowloon, Hong Kong. |
(As
per registry dated 21-06-2012)
|
Name |
Address |
Co.
No. |
|
Wealth
Creation Secretarial Services Ltd. |
Room 512, 5/F., Tower B, New Mandarin Plaza, 14 Science Museum Road,
Tsimshatsui, Kowloon, Hong Kong. |
0905776 |
The
subject was incorporated on 21st June, 2012 as a private limited liability
company under the Hong Kong Companies Ordinance.
Formerly
the subject was located at Room 1606, 16/F., Hart Avenue Plaza, 5‑9 Hart
Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to Room 1504, 15/F. of the same
building with effect from 29th May, 2013.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Diamond Trader.
Lines: All kinds of diamonds and jewellery
products, emerald, precious stones.
Employees: 4.
(Including associate)
Commodities
Imported: India, Belgium,
Thailand, other European countries, etc.
Markets: Hong Kong, China, Australia,
Japan, Southeast Asia, Europe, Middle East, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share
Capital: HK$10,000.00 (Divided
into 10,000 shares of HK$1.00 each)
Issued Share
Capital: HK$10,000.00
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.
Veni
Diam Ltd. is a wholly-owned subsidiary of Little Star Ltd. [LSL] which is also
located at the same address.
Incorporated
in June 2012, the subject is engaged in the same lines of business as LSL.
The
director of the subject Keyur Pankaj Vedecha is an Indian. He is a Hong Kong ID Card holder and has
got the right to reside in Hong Kong permanently. He is also the only director of the subject.
Having
issued 10,000 ordinary shares of HK$1.00 each, LSL is jointly owned by two
Indians: Mr. Alpesh Babulal Mehta and Mr. Ramesh Hiralal Mehta. The former is holding 90% while the latter,
10%. The former is a Hong Kong ID Card
holder and has got the right to reside in Hong Kong permanently while the
latter is residing in Bangkok, Thailand.
Mr. Alpesh Babulal Mehta is also the only director of LSL.
The
subject and LSL are engaged in the same lines of business.
The
subject is known to acquire and supply diamonds in an extensive assortment of
round and fancy shapes and sizes including single cut diamonds, loose diamonds,
specialized in round brilliant, tapers, pointers, dossiers, single cut,
princess cut, 1 ct up, and baguettes, etc.
The
subject is carrying the following significant products in Hong Kong:
Loose
Diamond;
Round
Brilliant Diamond;
Tapered
Baguette Diamond;
Baguette
Diamond;
etc.
LSL
is originated in India. Now, its
associated companies in India is Hiralal Chhaganlal & Co. while the one in
Thailand is Belga Diam Co. Ltd.
According
to LSL, it is owned by the Indian Mehta family who have been engaged in diamond
business since 1957. Business has been
expanded to Hong Kong and Thailand. LSL
also exports its products to China, Southeast Asia, the Middle East, etc.
The
subject has had an associated company Dream Creations Jewelery located at the
same operating address. This firm is a
sole proprietorship set up and owned by Alpesh Babulal Mehta.
The
subject’s products are chiefly imported from India, prime marketed are Hong
Kong, China, Australia, Japan, Southeast Asia, Europe, the Middle East,
etc. Business is rather active. The subject and LSL are fully supported by
Mehta family.
In
order to penetrate the international market further, LSL 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 booth No. is
3E-C34.
The
history of the subject in Hong Kong is just over a year and five months.
On
the whole, since the history of the subject is short, consider it good for normal
business engagements on L/C basis.
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.62.38 |
|
UK Pound |
1 |
Rs.101.80 |
|
Euro |
1 |
Rs.84.75 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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.