|
Report Date : |
29.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
B. B. DIAM (HK) LTD. |
|
|
|
|
Registered Office : |
Room 1707, 17/F., |
|
|
|
|
Country : |
|
|
|
|
|
Date of Incorporation : |
09.07.2009 |
|
|
|
|
Com. Reg. No.: |
50879653 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Exporter and Wholesaler of All kinds of diamonds and
jewellery products |
|
|
|
|
No. of Employee : |
2 |
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 |
B. B. DIAM (HK) LTD.
ADDRESS: Room 1707, 17/F., Hart
Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2116 9566
FAX: 852-3585 6617
E-MAIL: bbdiamhkltd@gmail.com
bbdiam2009@gmail.com
Managing Director: Mr. Damjibhai
Bhagwanbhai Vaghani
Incorporated on: 9th July, 2009.
Organization: Private Limited
Company.
Issued Share Capital: HK$6,000,000.00
Business Category: Diamond
Trader.
Employees: 2.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
B. B.
DIAM (HK) LTD.
Registered
Office:-
Room 903, 9/F., Working Port Commercial Building, 3 Hau Fook Street,
Tsimshatsui, Kowloon, Hong Kong.
Head Office:-
Room 1707, 17/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui,
Kowloon, Hong Kong.
Ultimate Holding
Company:-
B.B. Diam Ltd., India.
Associated
Companies:-
B. B. Creations, India
B. B. Diam Co. Ltd., Thailand.
B.B. Diam, Hong Kong.
Narayan Gems, Hong Kong. (Same
address)
50879653
1351902
Managing Director: Mr. Damjibhai
Bhagwanbhai Vaghani
Contact Person: Mr. Avi
(Mobile Phone No.: 852-3585 6617)
HK$6,000,000.00
(As per registry dated 09-07-2014)
|
Name |
|
No. of shares |
|
B. B. Diam Co. Ltd. 322/33 Bangkok Gems & Jewelry Tower, 16/F., Suite-F, Surawongse
Road, Siphraya, Bangrak, Bangkok 10500, Thailand. |
|
1,500,000 |
|
Arvind Bhagvanbhai VAGHANI |
|
4,500,000 |
|
|
|
–––––––– |
|
|
Total: |
6,000,000 ======= |
(As per registry dated 09-07-2014)
|
Name (Nationality) |
Address |
|
Manjibhai Bhagwanbhai VAGHANI |
Room 903, 9/F., Working Port Commerical Building, 3 Hau Fook Street,
Tsimshatsui, Kowloon, Hong Kong. |
|
Arvind Bhagvanbhai VAGHANI |
Room 903, 9/F., Working Port Commerical Building, 3 Hau Fook Street,
Tsimshatsui, Kowloon, Hong Kong. |
(As per registry dated 09-07-2014)
|
Name |
Address |
Co. No. |
|
Champion Corporate Ltd. |
Unit 907, 9/F., Silvercord Tower 2, 30 Canton Road, Tsimshatsui,
Kowloon, Hong Kong. |
0657221 |
The subject was incorporated on 9th July, 2009 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly located at Room 904, 9/F., Guardforce Centre, 3 Hok Yuen Street
East, Hunghom, Kowloon, Hong Kong, the subject moved to Room 903, 9/F., Working
Port Commerical Building, 3 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong
with effect from 13th May, 2010, and further to the present address in early
2014. It moved to the present address in
August 2014.
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
Brand Name: BB.
Employees: 2.
Commodities Imported: India,
Europe
Markets: Hong
Kong, other Asian countries, Europe, Middle East
Terms/Sales: L/C, T/T
Terms/Buying: L/C, T/T, D/P
Issued Share Capital: HK$6,000,000.00
Profit or Loss: Traded
at a small profitable angle.
Condition: Business
is improving.
Facilities: Is
making use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hong Kong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Small.
Having issued 6 million ordinary shares of HK$1.00 each, B. B. Diam (HK)
Ltd. previously was jointly owned by Vaghani Bros., holding 60% interests;
Thailand B. B. Diam Co. Ltd. [Thailand B. B. Diam], holding 30%; and Arvind
Bhagvanbhai Vaghani, 10%.
On 26th October, 2012, Vaghani Bros. transferred his shares to Thailand
B. B. Diam and Arvind Bhagvanbhai Vaghani respectively. Now, Thailand B. B. Diam is holding 25%
interests while Arvind Bhagvanbhai Vaghani is holding 75%. Thailand B. B. Diam was set up in 2007.
The subject moved to the present address in August 2014.
The subject’s ultimate holding company is B.B. Diam Ltd. [India B.B.
Diam] which is an India-based firm.
India B.B. Diam is a diamond product manufacturer and trader.
The subject is a diamond trader.
India B.B. Diam was set up by Mr. Babubhai B. Vaghani in 1972 in
Surat, India. In 1981, he started a
factory employing about 100 persons. The
factory is known as B. B. Creations Co.
In 1990, India B.B. Diam set up a sales office in Surat which has become
the head office.
India B.B. Diam set up a sales office in Mumbai named Vaghani Bros. with
Mr. Damjibhai Bhagwanbhai Vaghani joined in as a partner.
India B.B. Diam started importing rough diamonds from Belgium and Israel
in 1994.
Now, India B.B. Diam has had about 550 workers in India.
The subject is a marketing office of India B.B. Diam which is trading in
all kinds of loose diamonds, polished white and coloured diamonds, diamond
silver, 14 or 18 karat, jewellery, bracelet, brooch, earring, necklace,
pendant, ring, and others. It is also
trading in the following polished and single cut diamonds: asscher cut,
baguette, emerald cut, heart shape, marquise, oblong, oval shape, pear shape,
princess cut, round brilliant, taper, tapered baguette, trilliant, Star and
Melee sizes, etc. Most of the products
bear the brand name “BB”.
All the companies form the B.B. Diam Group.
According to the subject, it trades in “fancy illusion diamonds and
jewellery”. It also trades in broken
diamonds and scrap diamonds. Major
markets are Asian countries, Europe, the Middle East and the United States.
The subject has had an associated company Narayan Gems, a Hong
Kong-registered company located at the same address.
In order to penetrate the international market further, the subject’s
associate B.B. Diam 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.
The subject is fully supported by its holding company in India and
Thailand.
The subject and India B.B. Diam are chiefly owned by Vaghani
family. Its history in Hong Kong is over
five years and five months.
On the whole, 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.63.64 |
|
|
1 |
Rs.98.98 |
|
Euro |
1 |
Rs.77.74 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
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.