.
|
Report Date : |
28.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
J. R. DIAM LTD. |
|
|
|
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Registered Office : |
Unit B, 17/F., |
|
|
|
|
Country : |
|
|
|
|
|
Date of Incorporation : |
08.11.2007 |
|
|
|
|
Com. Reg. No.: |
38601961 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer and Exporter of all kinds of diamonds and jewellery products,
emerald, precious stones, |
|
|
|
|
No. of Employees : |
3 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Small company |
|
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, 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 |
|
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 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 |
J. R. DIAM LTD.
ADDRESS: Unit B, 17/F., Chatham
Square, 8 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2367 8211, 3109 0012
FAX: 852-3109 0014
E-MAIL: jrdiamltd@gmail.com
Managing Director: Mr. Gautam
Babubhai Bhayani
Incorporated on: 8th November, 2007.
Organization: Private Limited Company.
Capital: Nominal: HK$1,000,000.00
Issued: HK$1,000,000.00
Business Category: Diamond
Trader.
Employees: 3.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
J. R. DIAM LTD.
Head Office:-
Unit B, 17/F., Chatham Square, 8 Hart Avenue, Tsimshatsui, Kowloon, Hong
Kong.
Business Name:-
J. R. Diam, Hong Kong. (Same
address)
Associated
Companies:-
Fancy Creations Inc., US.
J. R. Diam B.V.B.A., Belgium.
J. R. Jeweldiam Co. Ltd., Thailand.
J. R. Jewels WLL, Bahrain.
Sahil Star, India.
38601961
1183192
Managing Director: Mr. Gautam
Babubhai Bhayani
Nominal Share Capital: HK$1,000,000.00
(Divided into 1,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
(As per registry dated 08-11-2013)
|
Name |
|
No. of shares |
|
Gautam Babubhai BHAYANI |
|
1,000,000 ======= |
(As per registry dated 08-11-2013)
|
Name (Nationality) |
Address |
|
Gautam Babubhai BHAYANI |
Flat A, 10/F., Golden Mansion, 83-85 Chatham Road, Tsimshatsui,
Kowloon, Hong Kong. |
|
Sangitaben Gautambhai BHAYANI |
Flat A, 10/F., Golden Mansion, 83-85 Chatham Road, Tsimshatsui,
Kowloon, Hong Kong. |
|
Ashvinkumar Vitthalbhai MAVANI |
Flat A, 10/F., Golden Mansion, 83-85 Chatham Road, Tsimshatsui,
Kowloon, Hong Kong. |
(As per registry dated 08-11-2013)
|
Name |
Address |
|
Bayani Divino Bautista PONCE |
Flat A, 8/F., Tower 5, Caribbean Coast, 2 Kin Tung Road, Tung Chung,
Lantau Island, Hong Kong. |
The subject was incorporated on 8th November, 2007 as a private limited
liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Mili Gems Ltd.,
name changed to the present style on 20th March, 2008.
Formerly the subject was located at Room 602, 6/F., Hart Avenue Plaza, 5‑9 Hart
Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in early
2008.
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 products, emerald, precious stones
Brand Name: J.R.
Employees: 3.
Materials/Commodities: India
Markets: Hong
Kong, other Asian countries
Terms/Sales: L/C, T/T
Terms/Buying: L/C, T/T, D/P
Nominal Share Capital: HK$1,000,000.00
(Divided into 1,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
Indebtedness: HK$5,203,167.57 (Total amount outstanding on all mortgages
and charges as per last Annual Return dated 08-11-2013)
Mortgage or Charge: (See
attachment)
Profit or Loss: Made
small profits in past years.
Condition: Business
is normal.
Facilities: Trying
to make use of general banking facilities.
Payment: Met as required.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Hang Seng Bank
Ltd., Hong Kong.
Standing: Small.
Having issued 1 million ordinary shares of HK$1.00 each, J. R. Diam Ltd.
is wholly owned by Mr. Gautam Babubhai Bhayani (alias Jimmy) who is an
Indian. He is a Hong Kong ID Card holder
and has got the right to reside in Hong Kong permanently. He is also one of the director of the
subject. He can be reached at his Hong
Kong mobile phone number 852-6109 6500.
The subject’s business name is J. R. Diam which is also located at the
same operating address. The subject and
J. R. Diam are engaged in the same lines of business.
The subject is a diamond trader.
It is an affiliated company of Sahil Star, a significant diamond
manufacturer and trader in India.
The subject is trading in the following commodities:
Diamond Jewellery, Rose Cut, Diamond Briolletes, Beads, Old Mines Cut,
SS Cut, Taviz Cut, Black Fancy Cut Diamond, Other Fancy Cut Diamond, etc.
Most of the products bear the brand name J.R. The subject markets its products in Hong
Kong, exports to Thailand, the United States, Germany, Belgium, Italy, Switzerland,
Japan, Taiwan, India, etc.
The subject’s main associated company Fancy Creations Inc. is a US-based
company.
Sahil Star has been a leading diamond manufacturer, importer and
exporter of cut and polished diamonds since last two and a half decades. It has been conferred the title of
“Government Recognized Export House” by Ministry of Commerce & Individual,
Government of India. Sahil Star also has
been the member of Export Promotion Council, Gem & Jewellery since 1999.
Sahil Star is one of the largest manufacturers of diamond and largest
worldwide suppliers of beads and briolettes which is incorporated by late Shri
Jivanbhai Sanspara. Now it is managed by
Mr. Manhar Sanspara, Mr. Dinesh Sanspara, Mr. Jayanti Sanspara and Mr. Mahesh
Mavani.
Sahil Star imports rough diamonds from Antwerp of Belgium and
Israel. It is specialized in diamond
briolettes, beads, rose cut, mutual cut (old cut), Taviz cut, SS cut, NSS cut
and black diamonds. It also manufactures
all shape and fancy cut diamonds jewellery.
Its SS cut and NSS cut have captured a rather large share of the global
market. Sahil Star is a principal
supplier of the subject.
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 2014”
which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong
Kong during the period of 3rd to 7th March, 2014. Its booth No. is AWE 2-R28.
The subject operates from a self-owned office in Hong Kong.
Since the history of the subject is over six years, on the whole,
consider it good for normal business engagements.
Property information of
the company:-
1. Property Location: Office B on 17/F., 8 Hart Avenue,
Kowloon, Hong Kong.
Owner: J. R. Diam Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
31-01-2008 |
- |
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
2. Property Location: Flat A on 10/F., Golden Mansion,
Kowloon, Hong Kong.
Owner: J. R. Diam Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
19-11-2010 |
- |
Hang Seng Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
|
Date |
Particulars |
Amount |
|
15-01-2008 |
Instrument: Assignment of Receivables – General
with Notice of Assignment Property: In consideration of the Banking Facilities, the Customer, as
beneficial owner and by way of security for the payment of the Secured
Monies, hereby assigns, and agrees to assign, to the bank the Receivables
until all the Secured Monies have been paid or discharged Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
To secure all monies in respect of banking facilities |
|
31-01-2008 |
Instrument: Mortgage Property: 554/100,000th parts or shares of and in Kowloon Inland Lot No. 8544
(Office B on 17/F. of 8 Hart Avenue, Kowloon, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
To secure all sums in respect of general banking facilities |
|
19-11-2010 |
Instrument: Mortgage Property: 1/57th part or share of and in Kowloon Inland Lot No. 10510 (Flat A on
10/F. of Golden Mansion, Kowloon, Hong Kong.) Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
To secure all the general banking facilities |
|
19-11-2010 |
Instrument: Rental Assignment Property: 1/57th part or share of and in Kowloon Inland Lot No. 10510 (Flat A on
10/F. of Golden Mansion, Kowloon, Hong Kong.) Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
To secure all moneys in respect of general banking facilities |
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.62.71 |
|
|
1 |
Rs.103.50 |
|
Euro |
1 |
Rs.85.82 |
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 |
|
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.