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Report Date : |
25.10.2013 |
IDENTIFICATION DETAILS
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Name : |
DIMEXON ( |
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Registered Office : |
Unit 6-8, 11/F., Hilder Centre, 2 Sung |
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Country : |
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Date of Incorporation : |
01.02.2005 |
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Com. Reg. No.: |
35322532 |
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Legal Form : |
Private Limited Company |
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LINE OF BUSINESS : |
Manufacturer, exporter and wholesaler of all kinds of diamond and jewellery products such as rings, pendants, earrings, bracelets and bangles. |
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No. of Employees : |
15. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 |
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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. Hong Kong continues to link its currency
closely to the US dollar, maintaining an arrangement established in 1983
Source
: CIA
DIMEXON (HONG
KONG) LTD.
ADDRESS: Unit 6-8, 11/F., Hilder
Centre, 2 Sung Ping Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2810 7751, 852-3473 7777
FAX: 852-2810
7772, 852-3473 7999
E-MAIL: infohk@dimexon.com
Managing Director: Mr. Vishal P.
Mehta
Incorporated on: 1st
February, 2005.
Organization: Private
Limited Company.
Capital: Nominal: HK$195,000,000.00
Issued: HK$140,400,000.00
Business Category: Diamond and Jewellery Manufacturer and Exporter.
Employees:
15.
Main Dealing Banker: Standard Chartered Bank (Hong Kong) Ltd.,
Banking Relation: Satisfactory.
Registered Head Office:-
Unit 6-8, 11/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon,
Hong Kong.
China Factory:-
Qingdao Dimexon Eurostar Diamond & Jewellery Co. Ltd.
Qingdao, Shandong Province, China.
China Office: Shanghai.
Overseas Offices: Belgium, India,
Italy, UAE and US.
Holding Company:-
Dimexon International Holdings B.V., the Netherlands.
Associated/Affiliated Companies:-
Dimexon Group of Companies
Benchmark Softec (Pvt.) Ltd., India.
Benchmark Softec Inc., USA.
Benchmark Softec Ltd., Belgium.
Benchmark Softec Ltd., Germany.
Benchmark Softec Ltd., UAE.
Benchmark Softec Ltd., UK.
Dimexon (Shanghai) Ltd., China.
Dimexon Antwerp NV, Belgium.
Dimexon Diamonds Ltd., India.
Dimexon ME DMCC, UAE.
Dimexon USA Inc., USA.
Eurostar Belgium Inc., USA.
Eurostar Botswana (Pty) Ltd., Botswana.
Eurostar Botswana BVBA, Belgium.
Eurostar Diamond Traders (Shanghai) Co. Ltd., China.
Eurostar Diamond Traders Hong Kong Ltd.,
Hong Kong.
[Formerly known as Eurostar (Far East) Ltd.]
Eurostar Diamond Traders NV, Belgium.
Eurostar Diamonds (Suisse) S.A., Switzerland.
Eurostar Diamonds India Pvt. Ltd., India.
Eurostar Traders DMCC, UAE.
Kirtilal Kalidas & Co., India.
Kirtilal Kalidas Jewellers Pvt. Ltd., India.
Vispart Jewellery Manufacturers (Pvt.) Ltd., India.
etc.
35322532
0949783
Managing Director: Mr. Vishal P.
Mehta
Contact Person: Ms. Karen Chan
Nominal Share Capital: HK$195,000,000.00 (Divided into 195,000,000
shares of HK$1.00 each)
Issued Share Capital: HK$140,400,000.00
(As per registry dated 01-02-2013)
|
Name |
|
No. of shares |
|
Dimexon International Holding B.V. c/o Van Lanschot Trust, Herculesplein 5, 3584 AA Utrecht, P.O. Box
85098, 3508 AB Utrecht - the Netherlands. |
|
140,400,000 ========= |
(As per registry dated 01-02-2013)
|
Name (Nationality) |
Address |
|
Pankaj MEHTA |
600-Nad A1 Shiba, Post Box 340511, Dubai, U.A.E. |
|
Viral MEHTA |
Apartment 5A, Highview, 1A Cox Road, Kowloon, Hong Kong. |
|
Vishal P. MEHTA |
Almas Tower, Level 36, Office No. 36 A-E, Jumeirah Lakes Towers, Sheik
Xayed Road, Dubai, U.A.E. |
(As per registry dated 01-02-2013)
|
Name |
Address |
Co. No. |
|
Jetwell Secretarial Services Ltd. |
13/F., Sun House, 181 Des Voeux Road Central, Hong Kong. |
0642062 |
The subject was incorporated on 1st February, 2005 as a private limited
liability company under the Hong Kong Companies Ordinance.
It was originally registered under the name of Dimexon Eurostar
(Hong Kong) Ltd., name changed to the present style on 22nd May, 2008.
Formerly the subject was located at Room 402, 4/F., Tower 2, Harbour
Centre, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong, moved to the present
address with effect from 22nd December, 2008.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Manufacturer,
Exporter and Wholesaler.
Lines: All
kinds of diamond and jewellery products such as rings, pendants, earrings,
bracelets and bangles.
Employees: 15.
Raw Materials: Sourced from China and India factories.
Markets: Italy,
Japan, US, UK, Middle East, etc.
Terms/Sales: As per
contracted.
Terms/Buying: Various
terms.
The Hong Kong General Chamber of Commerce,
Hong Kong.
[Membership No. HKD0685]
Nominal Share Capital: HK$195,000,000.00 (Divided into 195,000,000
shares of HK$1.00 each)
Issued Share Capital: HK$140,400,000.00
Indebtedness: HK$9,500.000.00 (Total amount outstanding on all mortgages
and charges as per last Annual Return dated 01-02-2013)
Mortgage or Charge: (See
attachment)
Profit or Loss: Operation is profitable.
Condition: Keeping
in an active manner.
Facilities: Making
active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
ICICI Bank Ltd., Hong Kong Branch.
Antwerpse DiamantBank NV (also known as
Antwerp Diamond Bank NV), Hong Kong Branch.
ABN AMRO Bank N.V., Hong Kong Branch.
Standard Chartered Bank (Hong Kong) Ltd.,
Hong Kong
Standing:
Good.
Dimexon (Hong Kong) Ltd., formerly known as Dimexon Eurostar
(Hong Kong) Ltd., was incorporated in Hong Kong as a private limited
company on 1st February, 2005.
The subject is specialized in the following products: round brilliant
cuts, hearts & arrows, fancy cuts.
The subject is an integral part of the Dimexon Group — a leading
international diamond manufacturing and jewellery conglomerate that is
specialized in crafting diamonds and jewellery.
The Group is headquartered in Mumbai, India.
Dimexon has been a Sightholder of the DTC since early 70’s and today
ranks among the largest manufacturers of diamonds in the world, with a network
of world-class factories.
Dimexon is also a Select Diamantaire of Rio Tinto Diamonds and a
customer of Aber diamonds.
The Group’s products are retailed in India and exported to worldwide
countries. Besides the diamond jewellery
industry, the Dimexon Group is also involved in infrastructure development and
information technology.
The Group’s business is divided into two sections: Diamonds Cutting
& Polishing and Jewellery Manufacturing.
Diamonds Cutting & Polishing are conducted by the India plant while
Jewellery Manufacturing is conducted by the Qingdao plant in China.
The Group’s flagship Dimexon Diamonds Ltd. [Dimexon] is based in
India. It is a diamond and jewellery
manufacturing and trading conglomerate with operation in India, Europe, China,
Japan and the United States. Dimexon and
its associates are located in India at some of the world’s finest diamond
production, jewellery designing units, B2B distribution centres and retail
stores. It is a leading international
group in the diamond and jewellery business operating in the high-end segment
of the market, serving brands and top international retailers. The Group has a wide network of its own
factories and offices worldwide operating in more than 11 countries and
employing over 15,000 people.
Founded in 1966, Dimexon has evolved into a well respected global player
in diamond manufacturing and distribution.
As part of a market that demands the highest degree of quality, it has
earned a reputation for being innovative and able to executive with impeccable
precision and uncompromising consistency.
Its employees consist of a team of master diamond artisans, gemmologists
and professionals.
As a leading sightholder of the Diamond Trading Company (London),
Dimexon is one of the largest manufacturers of gem diamonds in the world. Presently, Dimexon has become one of the
leading diamond and jewellery companies in the world and is strongly supported
by its largest suppliers and diamond mining companies, esteemed customers and
brand owners.
Dimexon’s significant products are Calibrated Smalls. Each identically cut using microscopes and
micrometers and each scientifically assessed to within the industry standard of
0.05mm tolerance.
Dimexon’s diamond portfolio contains an enviable range of diamonds,
including Hearts & Arrows, Carat Plus, Triple Excellent and various
proprietary cuts as well as a wide range of Forevermark diamonds. Most of Dimexon’s diamonds have got GIA, HRD
and IGI certifications.
The subject’s corporate office is based in Hong Kong and has had a state‑of‑the-art
manufacturing facility in Qingdao, China, producing high‑quality
jewellery products which are exported throughout the world.
The subject’s affiliate, Kirtilal Kalidas & Co. was established in
India as a high quality diamond jewellery retailer in 1939. From a “one man show” in 1939, it has today
employed more than 600 people serving 300,000 retail customers a year.
Dimexon has had associated companies in Antwerp of Belgium, Mumbai of
India, Shanghai and Shenzhen SEZ of China, Dubai of the United Arab of
Emirates. Dimexon is the main supplier
of the subject.
Pankaj Mehta is one of the Directors of the subject. He is also the founder of Dimexon and the
co-founder of Eurostar which is a division of the Dimexon Group.
Eurostar Diamond Traders N.V. manufactures
and trades precision calibrated diamonds for watch and jewelry brands in
Belgium and internationally. The company
offers fine polished, cut hearts, and arrows diamonds. It also serves specialty jewelry houses,
diamond manufacturers, distributors, and retailers. The company has a strategic partnership with
De Beers Forevermark. Eurostar Diamond
Traders N.V. was founded in 1978 and is based in Antwerp, Belgium. It has had a state-of-the-art manufacturing
facility in China, catering to global markets
The history of the subject in Hong Kong is over eight years and four
months.
On the whole, in view of its background and parentage, consider it good
for normal business engagements.
Property information of the company:-
Property Location: Workshop
Unit No. 6, 7 & 8 on 11/F. and Car Parking Space No. L8 on G/F., Hilder
Centre, Kowloon, Hong Kong.
Owner: Dimexon (Hong Kong) Ltd.
Date of Purchase: n.a.
Purchased Price:
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
18-12-2007 |
- |
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
|
Date |
Particulars |
Amount |
|
18-12-2007 |
Instrument: Mortgage Property: 32/1,148th parts or shares of and in Section B of Kowloon Marine Lot
No. 113 (Workshop Unit No. 6, 7 & 8 on 11/F. and Car Parking Space No. L8
on G/F. of Hilder Centre, Kowloon, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
To secure “all moneys” in respect of general banking facilities |
|
20-02-2008 |
Instrument: Debenture Property: (1) all stocks shares
bonds and securities of any kind whether marketable or otherwise and all
other interests including loan capital of the Company both present and future
in any company firm consortium or entity including all allotments accretions
offices rights benefits and advantages at any time accruing offered or
arising in respect of or incidental to such stocks shares bonds and securities
and all stocks shares rights money or property accruing to such stocks shares
bonds and securities or offered at any time by way of conversion redemption
bonus preference option or otherwise in respect of such property; (2) all book and other
debts revenues and claims both present and future due or owing or which may
become due or owing to or purchased or otherwise acquired by the Company and
the full benefit of all rights and remedies relating to such property
including but not limited to any negotiable or non-negotiable instruments
guarantees indemnities debentures legal and equitable charges and other
security reservation of proprietary rights of tracing liens and all other
rights and remedies of any nature in respect of such property; (3) the uncalled capital
goodwill and all patents patent applications trade marks trade names
registered designs and copyrights and all licences and ancillary and
connected rights relating to the intangible property both present and future
of the Company; (4) the undertaking and
all other assets of the Company both present and future including the stock
in trade of the Company and the heritable property which are or may be from
time to time while the Debenture is in force comprised in the property and
undertaking of the Company Mortgagee: Antwerpse DiamantBank NV (also known
as Antwerp Diamond Bank NV), Hong Kong Branch. |
All money and the discharge of all obligations and liabilities |
|
24-07-2009 |
Instrument: Debenture Property: All the Company’s undertaking and property and assets Mortgagee: ABN AMRO Bank N.V., Hong Kong
Branch. |
General banking facilities |
|
02-09-2011 |
Instrument: A debenture between the Company and
the Lender Property: Pursuant to Clause 3.1 (Fixed Charges) of the Debenture 3.1.1 All the Company’s
right, title and interest from time to time in and to the Real Property; 3.1.2 All the Company’s
right, title and interest from time to time in and to the Tangible Moveable
Property; 3.1.3 All the Company’s right,
title and interest from time to time in and to the Accounts; 3.1.4 All the Company’s
right, title and interest from time to time in and to any and all goodwill of
the Company; 3.1.5 All the Company’s
right, title and interest from time to time in and to the Intellectual
Property; 3.1.6 All the Company’s
right, title and interest from time to time in and to the Investments and all
Related Rights; 3.1.7 All the Company’s
right, title and interest from time to time in and to any and all Monetary
Claims and all Related Rights other than those subject to a fixed charge or
assignment pursuant to the Debenture. Mortgagee: Standard Chartered Bank
(Hong Kong) Ltd., Hong Kong. |
All obligations covenanted to be discharged by the Company in the
Debenture. |
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.
-
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.61.41 |
|
|
1 |
Rs.99.53 |
|
Euro |
1 |
Rs.84.82 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.