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Report Date : |
31.08.2014 |
IDENTIFICATION DETAILS
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Name : |
D. NAVINCHANDRA GEMS (HK) LTD. |
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Registered Office : |
Unit 1601, 16/F., |
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Country : |
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Date of Incorporation : |
09.08.2010 |
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Com. Reg. No.: |
52767470 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trader of All Kinds of Gemstones and Diamonds. |
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No of Employees : |
4 |
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 01, 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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 |
D. NAVINCHANDRA GEMS (HK) LTD.
ADDRESS: Unit 1601, 16/F., Winfield Commercial Building,
6-8 Prat Avenue, Tsim Sha Tsui, Kowloon, Hong Kong.
PHONE: 852-2301 4477
FAX: 852-2301 4777
E-MAIL:
MANAGEMENT:
Managing Director: Mr. Mihir
Dilipkumar Mehta
Incorporated on: 9th August, 2010.
Organization: Private Limited Company.
Paid Up Capital: HK$1,000.00
Business Category: Diamond
& Gemstone Trader.
Employees: 4.
Main Dealing Banker: The Hong
Kong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
D. NAVINCHANDRA GEMS
(HK) LTD.
Registered Head
Office:-
Unit 1601, 16/F., Winfield Commercial Building, 6-8 Prat Avenue,
Tsim Sha Tsui, Kowloon, Hong Kong.
Holding Company:-
D. N. Gems Pte Ltd., Singapore.
Associated
Companies:-
D. Navinchandra Gems B.V.B.A., Belgium.
D. Navinchandra Gems Pvt. Ltd., India.
D. Navinchandra Jewels, India.
Kalpana Dilip Mehta Foundation, India.
52767470
1490684
Managing Director: Mr. Mihir Dilipkumar
Mehta
General Manager: Mr. Ativ Mehta
HK$1,000.00
(As per registry dated 09-08-2014)
|
Name |
Occupation |
No. of shares |
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D. N. Gems Pte Ltd. 80 Raffles Place, #25-01, Uob Plaza 1, Singapore 048624. |
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1,000 ==== |
(As per registry dated 09-08-2014)
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Name (Nationality) |
Address |
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Mihir Dilipkumar MEHTA |
Ahornelaan 30/C, 2610 Wilrijk, Antwerpen, Belgium. |
(As per registry dated 09-08-2014)
|
Name |
Address |
Co. No. |
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Gem Glad Secretaries Ltd. |
Room 1502, 15/F., 101 King’s Road, North Point, Hong Kong. |
1001061 |
The subject was incorporated on 9th August, 2010 as a private limited
liability company under the Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Diamond
& Gemstone Trader.
Lines: All
kinds of gemstones and diamonds, etc.
Employees: 4.
Commodities Imported: India,
Europe
Markets: Asian
countries, Europe, North America, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P
Paid Up Capital: HK$1,000.00
Profit or Loss: Making
a small profit in past three years.
Condition: Keeping in a satisfactory
manner.
Facilities: Making rather active use of
general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: The Hong Kong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Normal.
Having issued 1,000 ordinary shares of HK$1.00 each, D. Navinchandra
Gems (HK) Ltd. is a wholly owned subsidiary of D. N. Gems Pte Ltd. which is a
Singapore-based company. The director of
the subject Mihir Dilipkumar Mehta 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.
The contact person of the subject Mr. Ativ Mehta is also an Indian. He can be reached at his Hong Kong mobile
phone number 852-6306 3105.
The subject is an associated company of D. Navinchandra Gems Pvt. Ltd.
which is an India-based company [D. Navinchandra].
D. Navinchandra was established in 1970 by Mr. Dilip D. Mehta. Today, the company has developed into a
large-scale polished manufacturing business with offices in Mumbai, Hong Kong
and Antwerp. The high quality of diamonds cut and polished in its factories in
Surat provides a clear, competitive advantage in the loose-diamond market,
specializing in Round Brilliant cuts from stars to pointers, in whites, spotted
whites, TTLCs and TTLBs. It also carries
a large selection of GIA Dossiers and certificates from 0.30 to 1.50 carat in D
to J colours with clarity ranging from VVS to SI. In the year 1990, the company established an
in-house jewellery manufacturing unit in Seepz (Mumbai) as D. Navinchandra
Jewels. Today, it has emerged as one of
the fastest growing jewellery manufacturing and exporting companies. Over the years, the group has been honoured
with many awards and citations from the gem & jewellery export promotion
council of India. D. Navinchandra
has been one of the early members of the Responsible Jewellery Council.
The subject’s products have been exported to Asian countries, Europe,
North America
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 4th to 8th March, 2015. Its booth No. is CEC 3F-D17.
The business of the subject is chiefly handled by Mr. Ativ Mehta. History in Hong Kong is just over four years.
On the whole, consider the subject good for normal business engagements
in small credit amounts.
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
|
Indian Rupees |
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US Dollar |
1 |
Rs.60.47 |
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|
1 |
Rs.100.35 |
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Euro |
1 |
Rs.79.86 |
INFORMATION DETAILS
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Analysis Done by
: |
SUM |
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Report Prepared
by : |
TPT |
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 |
-- |
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.