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Report Date : |
01.12.2014 |
IDENTIFICATION DETAILS
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Name : |
DHARAM CREATIONS (HK) LTD. |
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Registered Office : |
Unit 3, 3/F., Harbour Centre, Tower 2, |
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Country : |
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Date of Incorporation : |
07.07.2004 |
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Com. Reg. No.: |
34748434 |
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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. |
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No. of Employees : |
8. |
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) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
DHARAM
CREATIONS (HK) LTD.
ADDRESS: Unit 3, 3/F., Harbour Centre, Tower 2, 8 Hok
Cheung Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2723 1466
FAX: 852-2722 6214
E-MAIL: info@dharamhk.com
Managing Director: Mr.
Manishkumar Vallabhbhai Mangukia
Incorporated on: 7th
July, 2004.
Organization: Private
Limited Company.
Paid Up Capital: HK$17,610,000.00
Business Category: Diamond Trader.
Employees:
8.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered
Office:-
Unit 3, 3/F., Harbour Centre, Tower 2, 8 Hok
Cheung Street, Hunghom, Kowloon, Hong Kong.
Associated/Affiliated
Offices:-
Mumbai Office
Dharmanandan
Diamonds Pvt. Ltd.
1014-16, Prasad Chambers, Opera House, Mumbai 400004, India.
Tel: 91 22 4004 1111~5
Fax : 91 22 6635 5533
E-mail: info@dharmanandan.com
Surat Factory
Dharmanandan
Diamonds Pvt. Ltd.
Behind Patel Faliya, Gotalawadi, Katargam Road, Surat 395004, Gujarat,
India.
Tel: 91 261 253 3777
Fax: 91 261 253 3775
USA Office
Dharm
International LLC
Suite 506, 15 West, 47th Street, NY 10036, New York, USA.
Tel: 1 212 398 7777~8
Fax: 1 212 398 7775
E-mail: bhavesh@dharmanandan.com
Belgium Office
Dharm
Diam B.V.B.A.
30, Hoveniersstraat, Suite No.428, Box No.133, 2018, Antwerp, Belgium.
Tel: 323 234 1444
Fax: 323 234 1445
E-mail: sandip@dharmdiam.com
Holding
Company:-
DDL Investment Ltd., Mauritius.
Associated/Affiliated
Companies:-
Dharm Diam B.V.B.A., Belgium.
Dharm Exim (Exporters of Diamonds &
Diamond Jewellery), India.
Dharm International LLC, USA.
Dharmanandan Diamonds Pvt. Ltd., India.
Dia Image Export, Hong Kong.
34748434
0910307
Managing Director: Mr. Manishkumar Vallabhbhai Mangukia
HK$17,610,000.00
(As per registry dated 07-07-2014)
|
Name |
|
No.
of shares |
|
|
|
|
Ordinary |
Preference |
|
DDL Investment Ltd. Les Cascades, Edith Cavell Street, Port
Louis, Mauritius. |
|
7,870,000 |
740 |
|
Sandipkumar Dayalbhai PATEL |
|
- |
234 |
|
|
|
–––––––– |
––– |
|
|
Total: |
7,870,000 ======= |
974 === |
(As per registry dated 21-08-2014)
|
Name (Nationality) |
Address |
|
Vipulbhai Purshottambhai SUTARIYA |
Flat A, 5/F., Kimberly Mansion,
15 Austin Avenue, Tsimshatsui, Kowloon, Hong Kong. |
|
Hareshbhai Ramajibhai PATEL |
Flat D, 3/F., Tower 21, Laguna Verde,
Laguna Grande, Hunghom, Kowloon, Hong Kong. |
|
Manishkumar Vallabhbhai MANGUKIA |
Flat G, 27/F., Tower 23A, Laguna Verde,
Ocean Vista, Hunghom, Kowloon, Hong Kong. |
|
Alpeshkumar Gordhanbhai VIRANI |
Flat G, 25/F., Tower 2, 8 Laguna Verde
Avenue, The Greenwood Laguna Verde, Hunghom, Kowloon, Hong Kong. |
(As per registry dated 07-07-2014)
|
Name |
Address |
Co.
No. |
|
Sovereign Secretaries (HK) Ltd. |
Suite 1601-1603, 16/F., Kinwick Centre,
32 Hollywood Road, Central, Hong Kong. |
0280990 |
The subject was incorporated on 7th July,
2004 as a private limited liability company under the Hong Kong Companies
Ordinance.
Formerly the registered address of the
subject was located at Suite 1601‑1603, 16/F., Kinwick Centre, 32
Hollywood Road, Central, Hong Kong, moved to Unit 107, 1/F., Chevalier
House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong in August,
2008.
With effect from 4th November, 2013 the
subject’s registered office and operating office moved to the present address.
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.
Brand name: “Dharmanandan
Diamonds”.
Employees: 8.
Commodities Imported: Belgium, India, other Asian countries, etc.
Markets: Asia,
Europe, North America, etc.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
Hong Kong Jewelry Manufacturers’
Association, Hong Kong.
Shanghai Diamond Exchange, Shanghai, China.
Paid Up Capital: HK$17,610,000.00
Mortgage or Charge: (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Business
is active.
Facilities: Making
active use of general banking facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Wing Lung Bank
Ltd., Hong Kong.
Bank of China
(Hong Kong) Ltd., Hong Kong.
Antwerpse
DiamantBank NV
(also known as Antwerp Diamond Bank NV), Hong Kong Branch.
Bank of Baroda,
Hong Kong Branch.
Standing:
Good.
Formerly Dharam Creations (HK) Ltd. was
jointly owned by Four Indian and an India firm.
Its old holding company Dharmanandan Diamonds Pvt. Ltd. was an
India-based firm. However, the holding
company changed in late 2009. The equity
of each shareholders also has changed.
Now, its holding company DDL Investment Ltd. [DDL] is a
Mauritius-registered firm. Since 2nd
March, 2011, the subject has become a wholly-owned subsidiary of DDL. All the directors of the subject are Indian
while each of them is holding a Hong Kong ID. Mr. Manishkumar Vallabhbhai Mangukia is the
managing director of the subject who is residing in Hong Kong most of the
time. On 21st August, 2014, a new
director Mr. Alpeshkumar Gordhanbhai Virani was appointed.
The subject moved to the present in early
November 2013.
The subject in fact is a member of
Dharmanandan Group [Dharmanandan] which is one of the largest manufacturers of
bigger size diamonds in India.
The subject is dealing in 0.01 cts to 3 cts
diamond with D-J colour VVW. According
to the subject, it is dealing in the following diamonds:-
Loose diamonds, certified diamonds, pearls,
loose diamond stones, loose round diamonds, loose polish diamonds, loose cut
diamonds, colour diamonds, diamond gem, clarity diamonds, carats diamonds,
loose princess diamond, loose emerald diamond, polished diamonds, loose diamond
stone, round diamond, loose cut diamond, GIA certified diamonds, square
diamonds, branded diamonds, pear cut diamond, brilliant cut diamond, princess,
marques, pears, baguettes, etc.
Its jewellery products include rings,
earrings, necklaces, pendants, etc. Most
of the products bear the brand name Dharmanandan Diamonds.
Its products are exported to China, South
Korea, India, Southeast Asia, Africa, the Middle East, Central & South
America, Belgium, the United Kingdom, the United States, Canada,
Australia, etc. and also marketed in Hong Kong.
The subject has had several employees
stationing in China in order to penetrate the China market. Now, it has become a member of Shanghai
Diamond Exchange member. Its business in
China keeps on expanding.
Dharmanandan, founded in 1992, is a
Sightholder of the Diamond Trading Company [DTC].
Dharmanandan Diamonds is an ISO 9001-2000
certified company, spreads over 250,000 square feet area with modern hi-tech
infrastructure. Having a work force of
more than 6,000 employees, it is able to produce about 500,000 carats of
polished diamond ranging from 0.01 Cts to 3.00 Cts.
The factory of Dharmanandan Diamonds
supplies the subject with all kinds of loose diamond products.
Dharmanandan had achieved GJEPC 34th - 38th,
for consecutive 5 times, best exporter awards.
It also had got the Shree Award for consecutively 6 years from 2005
to 2010.
Dharmanandan has been doing business in this
field for over 20 years. It has been
manufacturing a wide range of products.
Its main products are round diamonds which are customize-made. Most of the products are fancy shapes like
princess, marques, pears, baguettes etc. with various sizes, colours and
clarities.
Dharmanandan got the ISO 9001-2000
certification in 2008. Currently,
Dharmanandan has set up an office in Antwerp, Belgium, where is a diamond
trading centre. In recent year, it also
has set up an office in New York, the United States. The US office is able to make the Group
further penetrate the US market.
The subject is fully supported by
Dharmanandan. Annual sales turnover is
significant.
The subject has taken part in fairs and
exhibitions held in Hong Kong and other foreign large cities. It usually takes part in Hong Kong
International Jewellery Show which is held in Hong Kong annually.
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.
The subject owns a number of premises in
Hong Kong.
The history of the subject in Hong Kong is
over ten years and three months.
On the whole, consider the subject good for
normal business engagements.
Property information of the company:-
1. Property
Location: Unit 107 on 1/F.,
Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.
Owner: Dharam
Creations (HK) Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date
of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
22-12-2010 |
- |
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong. |
Mortgage to secure general banking
facilities |
2. Property
Location: 5/F. of Block A, Kimberley
Mansion, 15 Austin Avenue, Kowloon, Hong Kong.
Owner: Dharam
Creations (HK) Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date
of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
22-12-2010 |
- |
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong. |
Mortgage to secure general banking
facilities |
|
Date |
Description
of Instrument |
Mortgagee |
|
13-09-2008 |
Debenture |
Antwerpse DiamantBank NV (also known as Antwerp
Diamond Bank NV), Hong Kong Branch. |
|
14-06-2010 |
Memorandum |
Bank of Baroda, Hong Kong Branch. |
|
22-12-2010 |
Mortgage |
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong. |
|
22-12-2010 |
Mortgage |
The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong. |
|
27-06-2011 |
General Letter of Hypothecation |
Bank of Baroda, Hong Kong Branch. |
|
03-01-2013 |
Mortgage |
Industrial & Commercial Bank of China
(Asia) Ltd., Hong Kong. |
|
14-08-2014 |
Mortgage |
The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong. |
|
14-08-2014 |
Mortgage |
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong. |
|
14-08-2014 |
Debenture |
The Hongkong & Shanghai Banking Corp.
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.
-
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.
-
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.
-
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.
-
Excerpts from Times of India dated 30th October 2010 is as
under –
-
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.
-
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.61.97 |
|
|
1 |
Rs.97.37 |
|
Euro |
1 |
Rs.77.16 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
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|
Report Prepared
by : |
NIT |
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 |
|
|
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 |
|
|
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 |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
|
-- |
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.