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Report Date : |
05.08.2014 |
IDENTIFICATION DETAILS
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Name : |
EXCELLENT DIAMONDS LTD. |
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Registered Office : |
Room 601-602, 6/F., Guardforce Centre, |
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Country : |
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Date of Incorporation : |
06.08.2003 |
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Com. Reg. No.: |
34101399 |
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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
and jewellery products, emerald, precious stones |
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No. of Employees |
07 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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 |
EXCELLENT
DIAMONDS LTD.
ADDRESS: Room 601-602, 6/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2721 4200
FAX: 852-2316 7695
E-MAIL: ashish@excellentdiamonds.com.hk
venusjewels@hotmail.com
hameshseth@hotmail.com
Managing Director: Mr. Hamesh Bhagchand Seth
Incorporated on: 6th August, 2003.
Organization: Private Limited Company.
Capital: Nominal:HK$17,020,000.00
Issued: HK$17,020,000.00
Business Category: Jewellery Trader.
Annual Turnover: HK$65~70 million.
Employees: 7. (Including associates in Hong Kong)
Main Dealing Banker: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 601-602, 6/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
China Factory:-
Panyu Princess Jewellery Co.
6/F., 46 Yin Jian Road, Daluo Tang Shiqiao 511400, Panyu, Guangzhou, Guangdong Province, China.
[Tel: (86-20) 8480 5757, Fax: (86-20) 3480 6760]
Wholly-owned
Subsidiary:-
Venus Jewels (HK) Ltd., Hong Kong. (Same address)
Associated/Affiliated
Companies:- (Same address)
Golden Dragon Jewellery Co., Hong Kong.
Mercury Impex, Hong Kong.
Princess Jewellery Co., Hong Kong.
Princess Jewellery Ltd., Hong Kong.
34101399
0856107
Managing Director: Mr. Hamesh Bhagchand Seth
Nominal Share Capital: HK$17,020,000.00 (Divided into 1,702,000 shares of HK$10.00 each)
Issued Share Capital: HK$17,020,000.00
SHAREHOLDERS: (As per registry dated 06-08-2013)
|
Name |
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No. of shares |
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Gorabh Vinodkumar JAIN |
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851,000 |
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Hamesh Bhagchand SETH |
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851,000 |
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–––––––– |
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Total: |
1,702,000 ======= |
DIRECTORS: (As per registry dated 06-08-2013)
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Name (Nationality) |
Address |
|
Hamesh Bhagchand SETH |
Flat A1-A5, 16/F., Portion 83, Main Roof, Hankow Centre, Tsimshatsui, Kowloon, Hong Kong. |
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Seema SETH |
Flat A1-A5, 16/F., Portion 83, Main Roof, Hankow Centre, Tsimshatsui, Kowloon, Hong Kong. |
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Gorabh Vinodkumar JAIN |
203 Jogani Apartments, Doongershi Road, Malabar Hill, Mumbai-6, M.S., India. |
SECRETARY: (As per registry dated 06-08-2013)
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Name |
Address |
Co. No. |
|
Lodestar Secretaries Ltd. |
13/F., Wah Kit Commercial Centre, 302 Des Voeux Road Central, Hong Kong. |
0113023 |
The subject was incorporated on 6th August, 2003 as a private limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Venus Jewels (HK) Ltd., name changed to the present style on 28th March, 2011.
Formerly the subject was located at Room 1101-1102, 11/F., Cammer Commercial Building, 30-32 Cameron Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in recent months.
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, emerald, precious stones, etc.
Employees: 7. (Including associates in Hong Kong)
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Hong Kong, Japan, other Asian countries, etc.
Annual Turnover: HK$65~70 million.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$17,020,000.00 (Divided into 1,702,000 shares of HK$10.00 each)
Issued Share Capital: HK$17,020,000.00
Indebtedness: HK$3,710,251.57 (Total amount outstanding on all mortgages and charges as per last Annual Return dated 06-08-2013)
Mortgage or Charge (Since 2014): (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Keeping in a satisfactory condition.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Bank of India, Hong Kong Branch.
Canara Bank, Hong Kong Branch.
DBS Bank (Hong Kong) Ltd., Hong Kong.
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Good.
Having issued 1,702,000 ordinary shares of HK$10.00 each, Excellent Diamonds Ltd. is equally owned by Mr. Gorabh Vinodkumar Jain and Mr. Hamesh Bhagchand Seth. The directors of the subject are Mr. Hamesh Bhagchand Seth, Mr. Gorahb Vinodkumar Jain and Mr. Seema Seth. All the directors are India merchants while the first and third are Hong Kong ID holders and have got the right to reside in Hong Kong permanently.
The subject has had a wholly-owned subsidiary known as Venus Jewels (HK) Ltd. [Venus] which is also located at the same address. The subject and Venus are engaged in the same lines of business.
Venus is a member of The Indian Chamber of Commerce Hong Kong, a Hong Kong-based association.
The subject is a diamond importer, exporter and wholesaler. Products include single cuts, full cuts and fancy shapes — such as princess, baguettes, marquise, pearl, oval, emerald and heart. Commodities are imported from India, Belgium and other European countries. Finished products are marketed in Hong Kong, exported to China, Thailand, Taiwan, the other Asian countries, Europe, etc. Its customers include wholesalers, jewellery manufacturers and diamond retailers.
The subject has got an associated company Princess Jewellery Co. [PJC] located at the same operating address. PJC is a jewellery manufacturer which was originally founded in March 2002 by Mr. Vimay Shrimal, holder of India Passport No. Z1530767. Changed to a partnership business as Mr. H.S. Jain joined in as a partner in August 2004. Subsequently, Mr. Vimay Shrimal retired and Mr. Pankaj Jain joined in as a partner on 1st August, 2005.
PJC is experienced in manufacturing 8-18K yellow and white gold, platinum and silver, which set with diamonds, precious stones, semi-precious stones, etc. The followings are the significant products of PJC:-
Diamond Rings, Cubic Zirconia Rings, Cubic Zirconia Necklaces, Cubic Zirconia Earrings, 18K Gold Diamond Pendant, 18K Gold Necklaces, 18K Gold Diamond Rings, etc.
The subject and PJC has got an associated factory known as Panyu Princess Jewellery Co. in Panyu, Guangzhou, Guangdong Province, China. This factory supplies the subject and Venus with all kinds of jewellery products.
The annual sales turnover of the subject ranges from HK$65 to 70 million. Making a small profit every year. Overall business is good.
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 is going to take part in “HKTDC Hong Kong International Jewellery Show 2015” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th to 9th March, 2015.
The subject’s total amount outstanding registered with the Companies Registry as at early August 2013 amounted to HK$3.7 million (2012: HK$2.1 million).
As the history of the subject is about eleven years in Hong Kong, on the whole, consider it good for normal business engagements.
(Since 2014)
|
Date |
Description of Instrument |
Mortgagee |
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25-03-2010 |
Letter of Lien |
Bank of India, Hong Kong Branch. |
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06-10-2010 |
Security Over Deposits |
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
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01-11-2010 |
Mortgage |
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
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01-12-2011 |
Security Over Deposits in respect of Obligations of the
Depositor |
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong. |
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16-07-2012 |
Letter of Lien |
Bank of India, Hong Kong Branch. |
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12-12-2012 |
Legal Charge/Mortgage |
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
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12-12-2012 |
Tripartite Second Legal Charge Mortgage |
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
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07-04-2014 |
General Letter of Hypothecation |
Bank of India, Hong Kong Branch. |
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16-07-2014 |
Legal Charge/Mortgage |
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
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16-07-2014 |
Legal Charge/Mortgage |
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
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
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Indian Rupees |
|
US Dollar |
1 |
Rs.61.02 |
|
|
1 |
Rs.102.69 |
|
Euro |
1 |
Rs.81.91 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
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Report Prepared
by : |
NIS |
RATING EXPLANATIONS
|
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.