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Report Date : |
06.04.2014 |
IDENTIFICATION DETAILS
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Name : |
DIRGH
DIAMOND (HK) LTD. |
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Registered Office : |
Room 605, 6/F., Supreme House, Opp Hart Avenue Plaza, 2A Hart Avenue, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
23.11.2012 |
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Com. Reg. No.: |
60656297 |
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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 including Marquise Diamond, Oval Diamond, Emerald Diamond, Princess Diamond, Asscher Diamond, Round Diamond, Cushion Diamond, Heart Diamond & Pear Diamond. · subject is specialised in 0.30 up GIA, IGI certified diamonds of which clarities range from IF to I1, XXX cut. |
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No. of Employees |
01 |
RATING & COMMENTS
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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 : |
Business Under Development |
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Payment Behaviour : |
Unknown |
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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 – december 01, 2013
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Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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Hong Kong |
A1 |
a1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 has no tariffs on
imported goods, and it levies excise duties on only four commodities, whether
imported or produced locally: 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, its continued reliance on foreign trade and investment leaves it
vulnerable to renewed global financial market volatility or a slowdown in the
global economy. 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 12% of total system deposits in Hong
Kong by the end of 2013. 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 total trade 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. Credit expansion and tight housing supply conditions have caused Hong
Kong property prices to rise rapidly; consumer prices increased by more than 4%
in 2013. 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. In
2013, Hong Kong and China signed new agreements under the Closer Economic
Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong
and the mainland. The new measures, effective from January 2014, cover services
and trade facilitation, and will improve access to the mainland's service
sector for Hong Kong-based companies.
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Source
: CIA |
DIRGH DIAMOND
(HK) LTD.
Room 605, 6/F., Supreme House, Opp Hart Avenue Plaza, 2A Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-6443 9856
FAX: 852-2368 4405
E-MAIL: hk@dirghdiamond.com
Managing Director: Mr. Dineshkumar Ashokbhai Shanker
Incorporated on: 23rd November, 2012.
Organization: Private Limited Company.
Capital: Nominal: HK$1,000,000.00
Issued: HK$1,000,000.00
Business Category: Diamond Trader.
Employee: 1.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory
Registered Head
Office:-
Room 605, 6/F., Supreme House, Opp Hart Avenue Plaza, 2A Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
Associated
Companies:-
Dirgh Diamond Pvt. Ltd., India.
Dirgh Gems Co. Ltd., Thailand.
60656297
1829715
Managing Director: Mr. Dineshkumar Ashokbhai Shanker
Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
(As per registry
dated 23-11-2013)
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Name |
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No.
of shares |
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Dineshkumar Ashokbhai
SHANKER |
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1,000,000 ======= |
(As per registry
dated 23-11-2013)
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Name (Nationality) |
Address |
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Dineshkumar Ashokbhai SHANKER |
Plot No. C/5 Rajanand Society,
Laxmi Kant Ashram Road, Kataroam Surat 395004, India. |
(As per registry
dated 23-11-2013)
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Name |
Address |
Co.
No. |
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Gurung & Shum Business Solutions Ltd. |
Unit 406B, 4/F., Mirror Tower, 61 Mody Road, Tsimshatsui
East, Kowloon, Hong Kong. |
1348317 |
The subject was incorporated on 23rd November, 2012 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Flat D, 10/F., Union Mansion, 33‑35 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in early 2014.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds.
Brand Name: Dirgh Diamond.
Employee: 1.
Commodities Imported: India, other Asian countries, etc.
Markets: Hong Kong, China, other Asian countries, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: Prepayment, L/C, etc.
Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
Mortgage or
Charge:-
Date of Security Over Deposit with the Bank (Fixed Deposits) Limited Company - Under Seal: 09-01-2013
Amount: All monies in any currency owing by the Depositor to the chargee at any time
Property: Amount HK$10,000, deposit A/C: 817-626054-838 (0001)
Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
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.
Having issued 1,000,000 ordinary shares of HK$1.00 each, Dirgh Diamond (HK) Ltd. is wholly owned by Mr. Dineshkumar Ashokbhai Shanker who is an India merchant. He is an India passport holder and does not have the right to reside in Hong Kong permanently. He is also the only director of the subject. He can be reached at his Hong Kong mobile phone number 852‑6443 9856.
The subject is a diamond trader.
It has had the
following two associated companies:-
· Dirgh Diamond Pvt. Ltd. [Dirgh India], India
· Dirgh Gems Co. Ltd., Thailand
Dirgh India has two firms in India, one in Mumbai while the other in Surat. The subject is trading in the following commodities:
Marquise Diamond, Oval Diamond, Emerald Diamond, Princess Diamond, Asscher Diamond, Round Diamond, Cushion Diamond, Heart Diamond & Pear Diamond.
The subject is specialised in 0.30 up GIA, IGI certified diamonds of which clarities range from IF to I1, XXX cut. It also has had fancy colour diamonds. Every diamond has its own unique qualities and attributes available in different shapes like Round, Princess, Pears, Marquise, Oval and other fancy shapes.
The subject’s India factory adopts the latest technologies in manufacturing in order to maintain the quality. It also uses the technologies like sarin, magnus and helium preciseness. It is using advanced machines like S.O.S, Green laser machines in sawing process. Russian brutters are used for bruiting process. Every diamond is graded with its own grading system which it names as “DGS”.
In Hong Kong, the subject’s business is chiefly handled by D A Shanker himself. History in Hong Kong is just over a year and four months.
On the whole, since the history of the subject is short in Hong Kong, consider it good for normal business engagements on L/C basis.
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.
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Excerpts from Times of India dated 30th
October 2010 is as under –
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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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.32 |
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UK Pound |
1 |
Rs.100.04 |
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Euro |
1 |
Rs.82.65 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.