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Report Date : |
14.02.2014 |
IDENTIFICATION DETAILS
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Name : |
BRILLIANT DIAMONDS LTD. |
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Registered Office : |
Room 906-907, 9/F., Stag Building, 148-150 Queen’s Road Central |
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Country : |
Hong Kong |
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Date of Incorporation : |
18.12.2002 |
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Com. Reg. No.: |
33232361 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds |
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No. of Employees : |
3. |
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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 levies excise duties on only four commodities, namely: 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, it again faces a
possible slowdown as exports to the Euro zone and US slump. 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 9.1% of total system
deposits in Hong Kong by the end of 2012, an increase of 59% from the previous
year. 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 exports 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. Growth
slowed to 5% in 2011, and less than 2% in 2012. Credit expansion and tight
housing supply conditions caused Hong Kong property prices to rise rapidly and
inflation to rise 4.1% in 2012. 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.
|
Source
: CIA |
BRILLIANT DIAMONDS
LTD.
Address: Room 906-907, 9/F.,
Stag Building, 148-150 Queen’s Road Central, Hong Kong.
(Your enquiry given as:
BRILLIANT DIAMON LTD.
and old address at:
c/o Louis Lai Company Secretarial Services Ltd.
9/F., Surson Commercial Building, 140-142 Austin Road, Tsimshatsui, Kowloon,
Hong Kong.)
Note: Please be advised that Surson Commercial
Building is not located at 148-150 Queen’s Road, Central, Hong Kong.
ADDRESS: Room 906-907, 9/F., Stag
Building, 148-150 Queen’s Road Central, Hong Kong.
PHONE: 852-2545 5886, 2543 9986
FAX: 852-2815 4568
Managing Director: Mr. Bhavik
Jayesh Shah
Incorporated on: 18th December, 2002.
Organization: Private Limited Company.
Capital: Nominal: US$3,000,000.00
Issued: US$3,000,000.00
Business Category: Diamond
Trader.
Employees: 3.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
BRILLIANT DIAMONDS
LTD.
Registered Head
Office:-
Room 906-907, 9/F., Stag Building, 148-150 Queen’s Road Central, Hong
Kong.
Holding Company:-
Pacific Regent Trading Ltd., British Virgin Islands.
33232361
0826413
Managing Director: Mr. Bhavik
Jayesh Shah
Nominal Share Capital: US$3,000,000.00
(Divided into 3,000,000 shares of US$1.00 each)
Issued Share Capital: US$3,000,000.00
(As per registry dated 18-12-2013)
|
Name |
|
No. of shares |
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Pacific Regent Trading Ltd. Akara Building, 24 De Castro Street, Wickhams Cay 1, Road Town,
Tortola, British Virgin Islands. |
|
3,000,000 ======= |
(As per registry dated 18-12-2013)
|
Name (Nationality) |
Address |
|
Bhavik Jayesh SHAH |
Flat F, 9/F., Far East Mansion, 5-6 Middle Road, Tsimshatsui, Kowloon,
Hong Kong. |
(As per registry dated 18-12-2013)
|
Name |
Address |
Co. No. |
|
Louis Lai & Luk Co. Secretarial Services Ltd. |
9/F., Surson Commercial Building, 140‑142 Austin Road,
Tsimshatsui, Kowloon, Hong Kong. |
0686503 |
The subject was incorporated on 18th December, 2002 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the registered office of the subject is in a secretarial
service firm located at 9/F., Surson Commercial Building, 140-142 Austin Road,
Tsimshatsui, Kowloon, Hong Kong known as Louis Lai Company Secretarial Services
Ltd. [Louis Lai] which is handling its correspondences and documents. Louis Lai is an affiliated company of Fung
& Pang CPA Ltd. which is an accountant firm. Louis Lai is also the corporate secretary of the
subject. With effect from 1st June,
2010, the subject moved to the present address.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of diamonds.
Employees: 3.
Commodities Imported: India,
other Asian countries
Markets: Hong
Kong, India, Dubai, US, Europe
Terms/Sales: L/C, 60-120 days credit
Terms/Buying: L/C, 90 days credit
Nominal Share Capital: US$3,000,000.00
(Divided into 3,000,000 shares of US$1.00 each)
Issued Share Capital: US$3,000,000.00
Profit or Loss: Making
a small profit every year.
Condition: Keeping
in a normal manner.
Facilities: Making
rather active use of general banking facilities.
Payment: Met as contracted.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Industrial & Commercial Bank of China
Ltd., Hong Kong Branch.
Standing: Normal.
Brilliant Diamonds Ltd. [BDL] was incorporated in Hong Kong on
18th December, 2002 as a private limited liability company. Since 2nd January, 2012, its nominal capital
has been increased from US$100,000.00 to US$3 million; and issued share capital
from US$10,000.00 also to US$3 million.
This was to cope with its expanding business so that it has had
sufficient working capital to support its operating level.
Presently, Pacific Regent Trading Ltd. [Pacific Regent], a
BVI-registered company, owns 100% interests of BDL.
The director of BDL Mr. Bhavik Jayesh Shah is an Indian merchant. He is a Hong Kong ID Card holder and has got
the right to reside in Hong Kong permanently.
He is the only director of the subject.
Pacific Regent is also controlled by B. J. Shah.
BDL had another director Ms. Lau Tsui Yan who retired in late 2012. Lau was a Hong Kong businesswoman.
Louis Lai Company Secretarial Services Ltd. is the corporate secretary
of BDL.
BDL is a diamond trader and commission agent. It is engaged in importing, exporting and
wholesaling various kinds of loose, polished and cut diamonds. Its diamonds are mainly sourced from India
and partly from local dealers. Prime
markets are Hong Kong, India, Dubai of the United Arab Emirates, the United
States, Europe, etc.
The business of BDL is normal. No
derogatory data have been heard.
In the years ahead, the subject will take part in exhibitions and fairs
held in Hong Kong.
As the history of BDL is over eleven years in Hong Kong, on the whole,
consider it good for normal business engagements.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.27 |
|
|
1 |
Rs.103.47 |
|
Euro |
1 |
Rs.84.87 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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 |
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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 |
|
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 |
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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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
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NB |
New Business |
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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.