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Report Date : |
15.10.2013 |
IDENTIFICATION DETAILS
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Name : |
JHALAK DIAM LTD. |
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Registered Office : |
Room 512A, 5/F., Fu Hang Industrial Building, 1 Hok Yuen
Street East, Hunghom, Kowloon |
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Country : |
Hongkong |
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Date of Incorporation : |
07.10.2010 |
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Com. Reg. No.: |
53128261 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesalers of all kinds of
gemstones, diamond for watches |
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No. of Employees : |
3 (Including
Associates) |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – 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 |
HONGKONG - 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
JHALAK
DIAM LTD.
ADDRESS: Room 512A, 5/F., Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2367 3947
FAX: 852-2367 3916, 3747 6295
E-MAIL: sunny@jhalakdiam.com.hk
Managing Director: Mr. Sunil Dhanvantlal Shah
Incorporated on: 7th October, 2010.
Organization: Private Limited Company.
Capital: Nominal:HK$150,000.00
Issued: HK$150,000.00
Business Category: Diamond Trader.
Annual Turnover: HK$20-30 million. (Including associates)
Employees: 3. (Including associates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Room 512A, 5/F., Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
Associated Companies:- (Same address)
Goldstar Diamond Distributors, Hong Kong.
Jhalak Diam (Single Cut) Ltd., Hong Kong.
Jhalak Diam, Hong Kong. [Owned by Mr. Sunil Dhanvantlal Shah]
53128261
1512451
Managing Director: Mr. Sunil Dhanvantlal Shah
Contact Person: Mrs. Apama Sunil Shah
Nominal Share Capital: HK$150,000.00 (Divided into 150,000 shares of HK$1.00 each)
Issued Share Capital: HK$150,000.00
(As per registry dated
12-03-2013)
|
Name |
|
No. of shares |
|
Sunil Dhanvantlal SHAH |
|
138,000 |
|
Aparna Sunil SHAH |
|
12,000 |
|
|
|
––––––– |
|
|
Total: |
150,000 ====== |
(As per registry
dated 07-10-2012)
|
Name (Nationality) |
Address |
|
Sunil Dhanvantlal SHAH |
Flat C, 31/F., Block 8, Parc Palais, 18 Wylie Road, Kings
Park, Kowloon, Hong Kong. |
(As per registry
dated 07-10-2012)
|
Name |
Address |
Co. No. |
|
TWP Consultants Ltd. |
2/F., Wing Yee Commercial Building, 5 Wing Kut Street,
Central, Hong Kong. |
1421957 |
The subject was incorporated on 7th October, 2010 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: All kinds of gemstones, diamond for watches
Employees: 3. (Including associates)
Commodities Imported: India, Europe, Thailand, etc.
Markets: Hong Kong, China, other Asian countries, North America, Western Europe, etc.
Annual Turnover: HK$20-30 million. (Including associates)
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$150,000.00 (Divided into 150,000 shares of HK$1.00 each)
Issued Share Capital: HK$150,000.00
Increases of Nominal Capital:-
|
From |
HK$10,000.00 |
to |
HK$150,000.00 |
in |
12-03-2013 |
Alternation of Issued Capital:-
|
Initially |
paid up |
HK$ 10,000.00 |
|
12-03-2013 |
paid up |
HK$140,000.00 |
|
|
|
––––––––––––– |
|
Total: |
paid up |
HK$150,000.00 ============ |
Profit or Loss: Made very small profits in 2011 and 2012.
Condition: Business keeps on improving.
Facilities: Making fairly active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Having issued 150,000 ordinary shares of HK$1.00 each, Jhalak Diam Ltd. is equally owned by Mr. Sunil Dhanvantlal Shah and Mrs. Apama Sunil Shah. Both of them are Indian and belong to the Shah family. S. D. Shah is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently. He is also the managing director of the subject.
S. D. Shah and A. S. Shah is a couple.
The subject is a diamond trader. It has got associated companies Jhalak Diam and Jhalak Diam (Single Cut) Ltd. [JDSC] located at its operating office. Jhalak Diam is a sole proprietorship set up and owned by S. D. Shah on 8th March, 2000. The subject, JDSC and Jhalak Diam are engaged in the same lines of business, more or less.
The subject is trading in the following diamonds and products:-
· Baguette Cut Diamonds;
· Black Diamonds;
· Carat Size Diamonds and Loose Diamonds;
· Cut and Polished Diamonds;
· Diamond for Watches;
· Diamond Studded Jewellery;
· Jewellery Watch Cases and Straps;
· Single-Cut Diamonds;
· Tapper Diamonds; &
· Triangular Diamonds.
Most of the commodities are imported from India, other Asian countries, Africa, etc. Prime markets are Hong Kong, China, Japan, India, other Asian countries, North America, Western Europe, etc. Business keeps on improving.
In order to penetrate the international market further, JDSC has taken part in fairs and exhibitions held in Hong Kong and other foreign large cities. For instance, it took part in “HKTDC Hong Kong Watch & Clock Fair 2013”. Besides, it is going to take part in “HKTDC Hong Kong Watch & Clock Fair 2014” which will be held in the same venue during the period of 3rd to 7th September, 2014. Its booth number is 1C-D35.
S. D Shah currently is operating another firm Goldstar Diamond Distributors which is also in Hong Kong. This firm is located at a different address.
The business of the subject is chiefly handled by S. D Shah. History in Hong Kong is just about three years.
On the whole, since the history of the subject is short, consider it good for normal business engagements on L/C basis for the time being.
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.
-
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.
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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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.30 |
|
|
1 |
Rs.97.99 |
|
Euro |
1 |
Rs.83.15 |
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 |
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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 |
|
-- |
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.