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Report Date : |
11.04.2014 |
IDENTIFICATION DETAILS
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Name : |
B B DIAM (HK) LTD |
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Registered Office : |
Room 903, 9/F., Working Port Commercial Building, 3 Hau Fook Street, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
09.07.2009 |
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Com. Reg. No.: |
50879653 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
engaged in trading all kinds of loose diamonds, polished white and coloured diamonds, diamond silver, 14 or 18 karat, jewellery, bracelet, brooch, earring, necklace, pendant, ring, and others. Subject is also trading in the following polished and single cut diamonds: asscher cut, baguette, emerald cut, heart shape, marquise, oblong, oval shape, pear shape, princess cut, round brilliant, taper, tapered baguette, trilliant, Star and Melee sizes. |
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No. of Employees |
02 |
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 : |
Small Company |
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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 – december 01, 2013
|
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.
|
Source
: CIA |
B. B. DIAM (HK) LTD.
Room 903, 9/F., Working Port Commercial Building, 3 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2116 9566
FAX: 852-3585 6617
E-MAIL: bbdiamhkltd@gmail.com
Managing Director: Mr. Damjibhai Bhagwanbhai Vaghani
Incorporated on: 9th July, 2009.
Organization: Private Limited Company.
Capital: Nominal: HK$6,000,000.00
Issued: HK$6,000,000.00
Business Category: Diamond Trader.
Employees: 2.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 903, 9/F., Working Port Commercial Building, 3 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong.
Operating Office:-
Room G, 7/F., Kim Hing Mansion, 49-51 Kimberley Road, Tsimshatsui, Kowloon, Hong Kong.
Ultimate Holding
Company:-
B.B. Diam Ltd., India.
Associated
Companies:-
B. B. Creations, India
B. B. Diam Co. Ltd., Thailand.
B.B. Diam, Hong Kong.
Narayan Gems, Hong Kong. (Same address)
50879653
1351902
Managing Director: Mr. Damjibhai Bhagwanbhai Vaghani
Nominal Share Capital: HK$6,000,000.00 (Divided into 6,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$6,000,000.00
(As per registry
dated 09-07-2013)
|
Name |
|
No.
of shares |
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B. B. Diam
Co. Ltd. 322/33 Bangkok Gems & Jewelry Tower, 16/F., Suite-F, Surawongse Road, Siphraya, Bangrak, Bangkok 10500, Thailand. |
|
1,500,000 |
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Arvind
Bhagvanbhai VAGHANI |
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4,500,000 |
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–––––––– |
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Total: |
6,000,000 ======= |
(As per registry
dated 09-07-2013)
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Name (Nationality) |
Address |
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Manjibhai Bhagwanbhai
VAGHANI |
Room 903, 9/F., Working Port Commerical Building, 3 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong. |
|
Arvind Bhagvanbhai
VAGHANI |
Room 903, 9/F., Working Port Commerical Building, 3 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong. |
(As per registry
dated 09-07-2013)
|
Name |
Address |
Co.
No. |
|
Champion Corporate Ltd. |
Unit 907, 9/F., Silvercord Tower
2, 30 Canton Road, Tsimshatsui, Kowloon,
Hong Kong. |
0657221 |
The subject was incorporated on 9th July, 2009 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly located at Room 904, 9/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong, the subject moved to Room 903, 9/F., Working Port Commerical Building, 3 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong with effect from 13th May, 2010, and further to the present address in early 2014. However, its registered address is still located at the previous old address.
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 products
Brand Name: BB.
Employees: 2.
Commodities Imported: India, Europe, etc.
Markets: Hong Kong, other Asian countries, Europe, Middle East, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$6,000,000.00 (Divided into 6,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$6,000,000.00
Profit or Loss: Making a small profit in past three years.
Condition: Business is improving.
Facilities: Making rather 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 6 million ordinary shares of HK$1.00 each, B. B. Diam (HK) Ltd. was jointly owned by Vaghani Bros., holding 60% interests; Thailand B. B. Diam Co. Ltd. [Thailand B. B. Diam], holding 30%; and Arvind Bhagvanbhai Vaghani, 10%.
On 26th October, 2012, Vaghani Bros. transferred his shares to Thailand B. B. Diam and Arvind Bhagvanbhai Vaghani respectively. Now, Thailand B. B. Diam is holding 25% interests while Arvind Bhagvanbhai Vaghani is holding 75%. Thailand B. B. Diam was set up in 2007.
The subject’s registered address was located at Room 903, 9/F., Working Port Commercial Building, 3 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong while its operating office is located at Room G, 7/F., Kim Hing Mansion, 49‑51 Kimberley Road, Tsimshatsui, Kowloon, Hong Kong where is in a residential building. This seems to be the residence of Arvind Bhagvanbhai Vaghani when he is in Hong Kong.
The subject’s ultimate holding company is B.B. Diam Ltd. [India B.B. Diam] which is an India-based firm. India B.B. Diam is a diamond product manufacturer and trader.
The subject is a diamond trader. India B.B. Diam was set up by Mr. Babubhai B. Vaghani in 1972 in Surat, India. In 1981, he started a factory employing about 100 persons. The factory is known as B. B. Creations Co.
In 1990, India B.B. Diam set up a sales office in Surat which has become the head office.
India B.B. Diam set up a sales office in Mumbai named Vaghani Bros. with Mr. Damjibhai Bhagwanbhai Vaghani joined in as a partner.
India B.B. Diam started importing rough diamonds from Belgium and Israel in 1994.
Now, India B.B. Diam has had about 550 workers in India.
The subject is a marketing office of India B.B. Diam which is trading in all kinds of loose diamonds, polished white and coloured diamonds, diamond silver, 14 or 18 karat, jewellery, bracelet, brooch, earring, necklace, pendant, ring, and others. It is also trading in the following polished and single cut diamonds: asscher cut, baguette, emerald cut, heart shape, marquise, oblong, oval shape, pear shape, princess cut, round brilliant, taper, tapered baguette, trilliant, Star and Melee sizes. Most of the products bear the brand name “BB”.
According to the subject, it trades in “fancy illusion diamonds and jewellery”. It also trades in broken diamonds and scrap diamonds. Major markets are Asian countries, Europe, the Middle East and the United States.
The subject has had an associated company Narayan Gems, a Hong Kong-registered company located at the same address. All the companies, including the subject, belong to B.B. Group.
In order to penetrate the international market further, the subject’s associate B.B. Diam 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 International Jewellery Show 2014” which had been held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th to 9th March, 2014. Its booth No. was 3E-C31.
The subject is fully supported by its holding company in India and Thailand.
The subject and India B.B. Diam are chiefly owned by Vaghani family. Its history in Hong Kong is over four years.
On the whole, consider it good for normal business engagements
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.60.21 |
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UK Pound |
1 |
Rs.101.05 |
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Euro |
1 |
Rs.83.33 |
INFORMATION DETAILS
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Analysis Done by
: |
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.