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Report Date : |
12.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
AJAY
DIAM LTD. |
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Registered Office : |
Room 1501-1502, 15/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
27.10.2004 |
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Com. Reg. No.: |
35031151 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Importer and Exporter of all kinds of diamonds and jewellery watches, gold watches |
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No. of Employees : |
08 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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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) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
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 |
AJAY DIAM LTD.
Room 1501-1502, 15/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2316 7655, 2316 2255, 2316 7662
FAX: 852-2316 7611
E-MAIL: sales@ajaydiamltd.com
Managing Director: Mr. Ajay Premchand Gandhi
Incorporated on: 27th October, 2004.
Organization: Private Limited Company.
Capital: Nominal: HK$15,000,000.00
Issued: HK$15,000,000.00
Business Category: Diamond and Watch Trader.
Annual Turnover: HK$85~95 million.
Employees: 8.
Main Dealing Banker: UCO Bank, Hong Kong Branch.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 1501-1502, 15/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
Associated
Company:-
Ajay Diam, Hong Kong.
35031151
0930040
Managing Director: Mr. Ajay Premchand Gandhi
Contact Person: Mr. Lau Kwok Wa
Nominal Share Capital: HK$15,000,000.00 (Divided into 15,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$15,000,000.00
(As per registry
dated 27-05-2013)
|
Name |
|
No. of shares |
|
Ajay Premchand GANDHI |
|
15,000,000 ======== |
(As per registry
dated 27-05-2013)
|
Name (Nationality) |
Address |
|
Ajay Premchand
GANDHI |
Unit 1501-1502, 15/F.,
Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong. |
(As per registry
dated 27-10-2012)
|
Name |
Address |
Co. No. |
|
SME Corporate Services Ltd. |
Room 305, 3/F., Carpo Commercial Building, 18-20 Lyndhurst
Terrace, Central, Hong Kong. |
0952029 |
The subject was incorporated on 27th October, 2004 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Flat D & E, 8/F., Cameron Plaza, 23‑25A Cameron Road, Tsimshatsui, Kowloon, Hong Kong, moved to 11/F., Hang Shun Commercial Building, 12 Cameron Road, Tsimshatsui, Kowloon, Hong Kong in May 2006 and further moved to the present address with effect from 1st August, 2011.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer and Exporter.
Lines: All kinds of diamonds and jewellery.
Trade Mark: SMEA.
Employees: 8.
Commodities Imported: India, Thailand, Israel, Belgium, etc.
Markets: Europe, US, South Korea, Japan, etc.
Annual Turnover: HK$85~95 million.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
·
Hong
Kong Watch Manufacturers Association Ltd., Hong Kong.
·
The
Indian Chamber of Commerce Hong Kong, Hong Kong.
Nominal Share Capital: HK$15,000,000.00 (Divided into 15,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$15,000,000.00
Alternation of
Capital:-
|
Initially |
paid up |
HK$ 5,000,000.00 |
|
28-03-2011 |
paid up |
HK$ 5,000,000.00 |
|
27-05-2013 |
paid up |
HK$ 5,000,000.00 |
|
|
|
–––––––––––––––– |
|
Total: |
paid up |
HK$15,000,000.00 ============== |
Increase of
Nominal Capital:-
|
From |
HK$ 5,000,000.00 |
to |
HK$10,000,000.00 |
on |
28-03-2011 |
|
From |
HK$10,000,000.00 |
to |
HK$15,000,000.00 |
on |
27-05-2013 |
Mortgage or Charge: (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Keeping in an active condition.
Facilities: Making active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Satisfactory.
Bankers:-
· UCO Bank, Hong Kong Branch.
· Indian Overseas Bank, Hong Kong Branch.
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Very Good.
Having issued 15 million ordinary shares of HK$1.00 each, Ajay Diam Ltd. is wholly owned by Mr. Ajay Premchand Gandhi who 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 managing director of the subject.
The subject has got an associated company Ajay Diam located at a different operating address. Ajay Diam was set up in 1993, it was reported. The subject and Ajay Diam are engaged in the same lines of business and under the same management.
The subject is
marketing the following commodities:-
· Finished Jewellery
o Diamond Jewellery
§ White Diamond Jewellery
o Gold Jewellery
§ Fineness not Specified
o Silver Jewellery
§ Sterling 92.5%
o Platinum Jewellery
§ Fineness not Specified
· Materials
o Diamond
§ Polished White Diamond
o Polished Semi precious Gemstone
§ Others
The subject is specialized in diamonds and jewellery watches, gold watches. Diamonds are imported from India, Thailand, Israel, Belgium, etc. Prime markets are Europe, the United States, South Korea, Japan, etc.
The subject’s significant products are the
following items:-
· Men’s Diamond Automatic Watch
· Men’s Gold Watch
· Ladies’ 18K Gold Watch;
· Ladies’ Jewellery Watch (including digital, analogue watch);
· Men’s Jewellery Watch; &
· Unisex Jewellery Watch.
Most of its products bear the brand name “SMEA” and claimed to be elegant, luxury and sophisticated.
According to the subject, the subject’s jewellery watch features a Swiss mechanical movement for guaranteed precision. Besides, it has got a genuine leather strap and the case is made of 18K gold.
The subject also receives OEM orders.
In order to penetrate the international market further, the subject 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 2013” which had been held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th to 9th March, 2013. Besides, it also took part in “HKTDC Hong Kong Watch & Clock Fair 2013” which had been held in the same Convention and Exhibition Centre, during the period of 4th to 8th September, 2013.
It is going to take part in “HKTDC Hong Kong Watch & Clock Fair 2014” which will be held in the same Convention and Exhibition Centre, during the period of 3rd to 7th September, 2014. Its booth No. is 1C-C27.
The annual sales turnover of the subject ranges from HK$85 to 95 million. Making a small profit every year. Business is chiefly handled by Mr. Lau Kwok Wa who is a Hongkongnese.
The subject has had an associated company Ajay Diam located at its operating address. The subject and Ajay Diam are engaged in the same lines of business. Also operated by Mr. Ajay Premchand Gandhi, Ajay Diam is a member of The Indian Chamber of Commerce Hong Kong, Hong Kong.
As the history of the subject in Hong Kong is about nine years.
On the whole, consider it good for normal business engagements.
|
Date |
Particulars |
Amount |
|
15-12-2008 |
Instrument: Undertaking Relating to Deposits Property: Distinctive Date of Amount Rate
of Maturity Date 2008
FD 262 2 24-11-2008 AU$ 558,102.78 3.875% 24-12-2008 Mortgagee: Indian Overseas Bank, Hong Kong Branch. |
All and any liabilities |
|
21-06-2010 |
Instrument: Undertaking Relating to Deposits Property: Distinctive Date of Amount Rate
of Maturity Date 2009
FD 244 2 10-03-2010 US$ 234,903.18 0.640% 10-09-2010 Mortgagee: Indian Overseas Bank, Hong Kong Branch. |
All and any liabilities |
|
21-03-2011 |
Instrument: Security Over Deposits with the Bank (Limited Company – Under
Seal) Property: Initially HK$5,000,000.00 or equivalent and all monies whether now or hereafter standing to the credit of the Company’s deposit with the Bank under deposit No. 636-595324-838 and whatever currency it may subsequently be denominated in, any renewal of such deposit and the interest thereon together with any further moneys in any deposit account with the Bank at any of its offices Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong. |
To secure all monies in respect of banking facilities |
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.26 |
|
UK Pound |
1 |
Rs.101.09 |
|
Euro |
1 |
Rs.83.73 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
|
|
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 |
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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.