|
Report Date : |
24.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
DHARAM CREATIONS (HK) LTD. |
|
|
|
|
Registered Office : |
Unit 3, 3/F., Harbour Centre, Tower 2, |
|
|
|
|
Country : |
|
|
|
|
|
Date of Incorporation : |
07.07.2004 |
|
|
|
|
Com. Reg. No.: |
34748434 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
· Importer and Exporter of all kinds of Diamonds and Jewellery such as Rings, Earrings, Necklaces & Pendants · Engaged in dealing 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 |
|
|
|
|
No. of Employees : |
08 |
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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
|
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
Its jewellery
products include rings, earrings, necklaces, pendants. 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
-
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.63.45 |
|
|
1 |
Rs.93.88 |
|
Euro |
1 |
Rs.77.62 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.