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Report Date : |
20.08.2014 |
IDENTIFICATION DETAILS
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Name : |
DIAVIN LTD. |
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Registered Office : |
Room 508A, 5/F., Tower B, Hung Hom Commercial Centre, |
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Country : |
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Date of Incorporation : |
25.10.1994 |
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Com. Reg. No.: |
18960793 |
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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 |
10 |
RATING & COMMENTS
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MIRAs 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 |
DIAVIN LTD.
ADDRESS: Room 508A, 5/F., Tower B, Hung Hom Commercial Centre, 7-39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2369 6123, 2369 0130
FAX: 852-2375 2526
E-MAIL: info@diavin.com
chirag@diavin.com
Managing Director: Mr Chirag Arvindkumar Shah
Incorporated on: 25th October, 1994.
Organization: Private Limited Company.
Capital: Nominal:HK$2,000,000.00
Issued: HK$1,000,000.00
Business Category: Diamond Trader.
Group Annual Turnover: US$155~160 million.
Employees: 10.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
DIAVIN LTD.
Registered Head Office:-
Room 508A, 5/F., Tower B, Hung Hom Commercial Centre, 7-39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong.
Associated/Affiliated Companies:-
Dianish (H.K.) Ltd. Taipei Branch, Taiwan.
* Dianish (H.K.) Ltd., Hong Kong.
Diavin Diamond Shanghai Co. Ltd., China.
* Diavin Jewellery Company, Hong Kong.
Diavin Jewellery Pty. Ltd., Australia.
Diavin, Hong Kong.
Navin Gems, India.
(* Same address)
18960793
0494691
Managing Director: Mr Chirag Arvindkumar Shah
Nominal Share Capital: HK$2,000,000.00 (Divided into 2,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
SHAREHOLDERS: (As per registry dated 25-10-2013)
|
Name |
|
No. of shares |
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Chirag Arvindkumar SHAH |
|
800,000 |
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Shraddha Chirag SHAH |
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200,000 |
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Total: |
1,000,000 ======= |
DIRECTORS: (As per registry dated 25-10-2013)
|
Name (Nationality) |
Address |
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Chirag Arvindkumar SHAH |
Flat K, 33/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Kowloon, Hong Kong. |
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Shraddha Chirag SHAH |
Flat K, 33/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Kowloon, Hong Kong. |
SECRETARY: (As per registry dated 25-10-2013)
|
Name |
Address |
Co. No. |
|
Elegant Secretaries Ltd. |
Room 804, 8/F., Lap Fai Building, 6‑8 Pottinger Street, Central, Hong Kong. |
0418716 |
The subject was incorporated on 25th October, 1994 as a private limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Eminent Gold Ltd., name changed to the present style on 28th March, 2001.
Formerly the subject was located at Unit 6, 7/F., Chevalier House, 45‑51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong, moved to the present address with effect from 8th December, 2012.
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,
Employees: 10.
Commodities Imported: India, Belgium, other European countries,
Markets: Japan, Southeast Asia, Europe, Middle East, Australia,
Group Annual Turnover: US$155~160 million.
Terms/Sales: L/C, T/T,
Terms/Buying: L/C, T/T, D/P, etc.
MEMBERSHIP: Hong Kong Jewelry Manufacturers Association, Hong Kong.
The Indian Chamber of Commerce Hong Kong, Hong Kong.
Nominal Share Capital: HK$2,000,000.00 (Divided into 2,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
Increases of Nominal Capital:-
|
From |
HK$10,000.00 |
to |
HK$1,000,000.00 |
In |
March 2012 |
Alternation of Issued Capital:-
|
Initially |
paid up |
HK$ 10,000.00 |
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March 2012 |
paid up |
HK$1,990,000.00 |
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Total: |
paid up |
HK$2,000,000.00 ============= |
Mortgage or Charge: (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Keeping in an active condition.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Hang Seng Bank Ltd., Hong Kong.
Standing: Very Good.
Diavin Ltd. had issued just 10,000 ordinary shares of HK$1.00 each at the beginning and was increased to 1 million ordinary shares of the same value each on 31st March, 2012. The subject is jointly owned by Mr. Chirag Arvindkumar Shah, holding 80% interests; and Mr. Shraddha Chirag Shah, holding 20%. The two Shahs are also directors of the subject. Being Hong Kong ID holders, they have got the right to reside in Hong Kong permanently.
The subject is a diamond importer, exporter and wholesaler. It has got an affiliated company Diavin Jewellery Company [Diavin] located at its operating address. The subject and Diavin are engaged in the same lines of business.
Diavin is a subsidiary of Navin Gems in India. Navin Gems is a diamond trading company and sightholder in India. Diavin is also managed by Chirag Arvindkumar Shah.
The subject is trading in carat size diamonds and loose diamonds. Most of the commodities are imported from India.
The subject is carrying the following commodities:-
Finished Jewellery
Diamond Jewellery
Gem Set Jewellery
Gold Jewellery
Platinum Jewellery
Other Jewellery
Materials
Polished Diamonds, Loose Diamonds, White Diamonds
Equipment and Services
Stone Setting Equipment
Its main products are loose diamonds, diamond bracelets, carat sized diamonds, etc.
The subject has established its own diamond and jewellery manufacturing facilities in China. The China factory is able to produce 2,000 units of jewellery products monthly.
The China factory manufactures the following commodities:-
Diamond Gold Jewellery 9-karat, 14-karat, 18-karat, 24-karat, Others
Diamond Platinum Jewellery
Gemset Jewellery 9-karat, 14-karat, 18-karat, 24-karat, etc.
Gemset Platinum Jewellery Pt900, Pt950, etc.
Gold Jewellery 9-karat, 14-karat, 18-karat, Others
Platinum Jewellery Pt900, Pt950, etc.
The subject is engaged in marketing and distributing rough and cut, polished diamonds. Its products include jewellery products, ranging from diamonds and precious stones such as sapphire and semi-precious stones in 9K, 14K, 18K gold and platinum. Various price levels are offered. Jewellery range includes rings, earrings, pendants, bracelets, necklaces, charms and cufflinks. Commodities are exported to worldwide countries.
The subject is one of the largest stone suppliers among the globe and it has its own stone cutting factory which is able to provide customers with collections of fine diamonds.
Currently, the subject has set up offices in Taipei of Taiwan, Shanghai of China and Sydney of Australia. It has become one of the significant diamond and jewellery suppliers in the Asia Pacific regions with over 100 staff and workers. The subject has got its own in-house designers.
The annual turnover of the subject and its associated companies amounts to US$155 to 160 million. Business is rather active.
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 Diamond, Gem & Pearl Show 2015 which will be held in Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the period of 2nd to 6th March, 2015. Its booth No. is AWE 2-R12
As the history of the subject in Hong Kong is over nineteen years, on the whole, consider it good for normal business engagements.
Property information of the company:-
1. Property Location: Unit 6 on 7/F., Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.
Owner: Diavin Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
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01-08-2007 |
- |
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
2. Property Location: Unit 6 on 10/F., Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.
Owner: Diavin Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
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Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
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30-09-2008 |
- |
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
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Date |
Particulars |
Amount |
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01-08-2007 |
Instrument: Mortgage Property: 187/19,060th parts or shares of and in The Remaining Portion of Kowloon Inland Lot No. 7072, Kowloon Inland Lot No. 8670, Kowloon Inland Lot No. 8567 and Kowloon Inland Lot No. 7074 (Unit 6 on 7/F. of Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
To secure all sums from time to time advanced by the Lender to the Borrower whether alone or jointly with any person and outstanding in respect of general banking facilities |
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30-09-2008 |
Instrument: Mortgage Property: 191/19,060th parts or shares of and in The Remaining Portion of Kowloon Inland Lot No. 7072, Kowloon Inland Lot No. 8670, Kowloon Inland Lot No. 8567 and Kowloon Inland Lot No. 7074 (Unit 6 on 10/F. of Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
To secure all sums from time to time advanced by the Lender to the Borrower whether alone or jointly with any person and outstanding in respect of general banking facilities |
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30-09-2008 |
Instrument: Rental Assignment Property: 191/19,060th parts or shares of and in The Remaining Portion of Kowloon Inland Lot No. 7072, Kowloon Inland Lot No. 8670, Kowloon Inland Lot No. 8567 and Kowloon Inland Lot No. 7074 (Unit 6 on 10/F. of Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
To secure all moneys in respect of general 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. Indias 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.60.73 |
|
|
1 |
Rs.101.48 |
|
Euro |
1 |
Rs.81.04 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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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 |
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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 |
-- |
|
This score serves as a reference to assess SCs 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.