MIRA INFORM REPORT

 

 

Report Date :

17.12.2014

 

IDENTIFICATION DETAILS

 

Name :

S.E  BARBIDIAM  HK  LTD.

 

 

Registered Office :

Unit A, 16/F., World Trust Tower, 50 Stanley Street, Central

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

10.06.2009

 

 

Com. Reg. No.:

50770631

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Engaged in trading of all kinds of Diamond

 

 

No of Employees :

07

 

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

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Hong Kong

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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

Company name     

 

S.E  BARBIDIAM  HK  LTD.

 

 

Company ADDRESS

 

Unit A, 16/F., World Trust Tower, 50 Stanley Street, Central, Hong Kong.

PHONE:            852-2537 4822

FAX:                 852-2537 7368

 

 

MANAGEMENT

 

Managing Director:  Mr. Gil Inbar

 

 

SUMMARY

 

Incorporated on:            10th June, 2009.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     HK$2,000.00

 

Business Category:       Diamond Trader.

 

Employees:                  7.

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:          Good.

Company ADDRESS

 

Registered Head Office:-

Unit A, 16/F., World Trust Tower, 50 Stanley Street, Central, Hong Kong.

 

Associated Companies:-

Barbi Diam DMCC, UAE.

Barbi Diam NY Inc., US.

Rikhav BVBA, Belgium.

S.E Barbi Diamonds Ltd., Israel.

S.E BarbiDiam Holdings Ltd., Hong Kong.

S.E BarbiDiam Shanghai Ltd., China.

SBMH Group DMCC, UAE.

Select Diamonds Pty. Ltd., Australia.

 

 

BUSINESS REGISTRATION NUMBER

 

50770631

 

 

COMPANY FILE NUMBER

 

1344416

 

 

MANAGEMENT

 

Managing Director:  Mr. Gil Inbar

 

 

ISSUED SHARE CAPITAL

 

HK$2,000.00

 

 

SHAREHOLDER

 

(As per registry dated 10-06-2014)

Name

 

No. of shares

Gil INBAR

 

2,000

====

 

DIRECTOR    

 

(As per registry dated 14-08-2014)

Name

(Nationality)

 

Address

Gil INBAR

11 Herman Cohen St., Apt. #7, Tel-Aviv 6438511, Israel.

 

 

SECRETARY

 

(As per registry dated 10-06-2014)

Name

Address

Co. No.

Willie Management Services Ltd.

Room 907, 9/F., Wing Tuck Commercial Centre, 177-183 Wing Lok Street, Hong Kong.

1159285

 

 

HISTORY

 

The subject was incorporated on 10th June, 2009 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Last time, the subject was located at Room 702, 7/F., Asia Pacific Centre, 8 Wyndham Street, Central, Hong Kong, moved to the present address in August 2014.

 

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Diamond Trader.

 

Lines:                           All kinds of diamonds.

 

Employees:                  7

 

Commodities Imported: Israel, India, other Asian and European countries, etc.

 

Markets:                        Hong Kong, China, other Asian countries, Europe, etc.

 

Terms/Sales:                 As per contracted.

 

Terms/Buying:               Various terms.

 

FINANCIAL INFORMATION

 

Issued Share Capital:     HK$2,000.00

 

Profit or Loss:               Making a small profit every year.

 

Mortgage or charge:-

Date of Security Over Deposits with the Bank:  27-04-2011

Amount:                        To secure all monies in respect of banking facilities owing at any time plus interest and all

expenses.

Property:                      Initially HK$80,000 or equivalent and all monies whether now or hereafter standing to the

credit of the Company’s deposit with the Bank under deposit number 400-679221-838

Mortgagee:                   The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

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 Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:                      Good.

 

 

GENERAL

Having issued 2,000 ordinary shares of HK$1.00 each, S.E BarbiDiam HK Ltd. is wholly owned by Gil Inbar who is an Israel merchant.  He is a Hong Kong ID holder and has got the right to reside in Hong Kong permanently.  He is also the only director of the subject.

The subject is a family business belonging to the Barbi family of Israel.  Its associated company S.E Barbi Diamonds Ltd. [S.E Barbi] is an Israel-based company.

S.E Barbi, founded in 1980 and headquartered in the hub of Israel’s International Diamond Exchange, has established a global network with a reputation for proven professional competence and expertise in both manufacture and trade.

S.E. Barbi is a player in the rough diamond trading market, with solid positioning in the last decade as a Regular Customer of the Canadian giant BHP Billiton that enables it to compete effectively with the Belgian market.

In order to constantly meet market demands, S.E Barbi have opened branch office in Europe and Asia.  For instance, Rikhav BVBA in Antwerp, Belgium to serve the European market, and S.E. Barbi in Sydney, Australia serving Australia while the subject is serving the Asia Pacific region.

Most of the subject’s diamonds are polished diamonds in all shapes and are 1 carat and above.

The subject’s prime markets are Hong Kong, China and the Asia Pacific region.  Business keeps on improving.  S.E. Barbi has set up an associated company in Shanghai, China known as S.E BarbiDiam Shanghai Ltd. as S.E. Barbi is going to penetrate the China market further.

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.

The business of the subject is chiefly handled by Gil Inbar himself.  History in Hong Kong is over five years and six months.

On the whole, in view of the background of the subject, consider it good for normal business engagements.

 

 

 

DIAMOND INDUSTRY – INDIA

 

-            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.

-            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.

-            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.63.41

UK Pound

1

Rs.99.30

Euro

1

Rs.79.00

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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

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%)

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