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Report Date : |
04.07.2014 |
IDENTIFICATION DETAILS
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Name : |
LEO SCHACHTER DIAMONDS EAST LTD. |
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Registered Office : |
Unit B, 7/F., BOCG Insurance Tower, 134-136 Des Voeux Road, Central |
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Country : |
Hong Kong |
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Date of Incorporation : |
21.02.2005 |
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Com. Reg. No.: |
35355636 |
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Legal Form : |
Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of jewellery and diamonds |
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No of Employees : |
7 |
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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Hong Kong |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 |
LEO SCHACHTER
DIAMONDS EAST LTD
ADDRESS: Unit B, 7/F., BOC Group Life
Assurance Tower, 136 Des Voeux Road Central, Hong Kong.
PHONE: 852-2180 7370-72, 2180 7378
FAX: 852-2180 7373
E-MAIL: hongkong@lsdco.com
Authorized Representative in Hong Kong:
Mr. Christopher Harvey Hall
Registered in Hong Kong on: 21st
February, 2005.
(Non-Hong Kong Company)
Organization: Limited
Company.
Capital: Authorised: US$50,000.00
Issued & Paid Up: US$5,100.00
Business Category: Diamond
Trader.
Employees: 7.
Main Dealing Banker: Standard
Chartered Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Satisfactory.
LEO SCHACHTER
DIAMONDS EAST LTD.
Registered Head
Office:-
Palm Grove House, P.O. Box 438, Road Town, Tortola,
British Virgin Islands.
Hong Kong
Principal Place of Business:-
Unit B, 7/F., BOCG Insurance Tower, 134-136 Des Voeux Road, Central,
Hong Kong.
Associated
Companies:-
Kama Schachter Jewellery Pvt. Ltd., India.
Kama Schachter Jewelry Hong Kong Ltd., Hong Kong.
Kama-Schachter Jewelry Inc., US.
Leo Schachter (Shanghai) Diamonds Ltd., China.
Leo Schachter Diamonds DMCC, U.A.E.
Leo Schachter Diamonds India Pvt. Ltd., India.
Leo Schachter Diamonds LLC., US.
Leo Schachter Doamonds Ltd., Israel.
Leo Schachter East Ltd., British Virgin Islands.
Leo Schachter International Ltd., Hong Kong.
Moshe Namdar & Associates LLC., US.
Moshe Namdar & Co. Ltd., Israel.
Schachter & Namdar (Pty) Ltd., South Africa.
Schachter & Namdar Asia Ltd., Hong Kong.
William Goldberg Diamond Corp., US.
35355636
F0013882
Authorized Representative in Hong Kong:
Mr. Christopher Harvey Hall
[Address: 36/F., Tower
Two, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong.]
Contact Persons: Mr. Auramov
Shani, Mr. Alex Yarrow
Authorised Share Capital: US$50,000.00
Issued & Paid Up Capital: US$5,100.00
DIRECTORS: (As per
registry dated 21-02-2014)
|
Name (Nationality) |
Address |
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Galit Hana SHALEV BIELER |
2 Avenue de Warens, 1203 Geneva, Switzerland. |
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Michael Jeffrey STEINMETZ |
338 Edward Avenue, Woodmere, NY 11598, US. |
SECRETARY: (As per
registry dated21-02-2014)
|
Name |
Address |
Co. No. |
|
TMF Secretaries (HK) Ltd. |
36/F., Tower Two, Times Square, 1 Matheson Street, Causeway Bay, Hong
Kong. |
0099444 |
The subject was incorporated in the British
Virgin Islands as a limited company. It has
established a principal place of business in Hong Kong and was registered on
21st February, 2005 as a Non-Hong Kong company under part XI of the
Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of jewellery and diamonds, etc.
Employees: 7.
Commodities Imported: Belgium,
Israel, India, etc.
Markets: Hong
Kong, other Asian countries, Europe, etc.
Terms/Sales: L/C or as per
contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Authorised Share Capital: US$50,000.00
Issued & Paid Up Capital: US$5,100.00
Mortgage or Charge: (See attachment)
Indebtedness: US$24,931,327.00 (Total amount outstanding on all mortgages
and charges as per last Annual Return dated 21-02-2014)
Profit or Loss: Making
a small profit every year.
Condition: Keeping
in a satisfactory manner.
Facilities: Making
rather active use of general banking facilities.
Payment: Met trade commitments as
contracted.
Commercial Morality: Satisfactory.
Banker: Standard Chartered
Bank (Hong Kong) Ltd., Hong Kong.
Standing: Normal.
Leo Schachter Diamonds East Ltd. is a Non-Hong Kong Company which was
incorporated in the British Virgin Islands.
The representative of the subject Mr. Christopher Harvey Hall is a
Hong Kong ID Card holder and has got the right to reside in Hong Kong
permanently. Currently, he is residing
in Hong Kong.
The directors of the subject Galit Hana Shalev Bieler and Michael
Jeffrey Steinmetz are foreigners. The
former is a Switzerland passport holder residing in Geneva while the latter is
a US passport holder and currently residing in New York, the United States.
The subject is one of the leading fine diamond trading companies. Its heritage encompasses a family of four
generations of master artisans who are “handcrafting the world’s most beautiful
and brilliant diamonds”. One of its
significant brand names is the Leo Diamond®.
The subject is one of the key members of Leo Schachter Diamonds Group
[Leo Schachter Diamonds] of Companies.
The subject’s total amount outstanding registered with the Companies
Registry as at late February, 2014 amounted to US$24.9 million.
The Group was set up in 1975. It
was founded in New York of the United States but now its headquarters are in
Israel.
Leo Schachter Diamonds was founded over half a century ago by Leo
Schachter, whose passion for diamonds was inherited from his father and has
been passed down to his children and grandchildren. Leo Schachter is one of the world’s
significant diamond brands.
The followings are some of the famous products of the subject:-
Diamond Necklace, Diamond Bangle, Diamond Ring, White Gold Necklace, Polished
Diamonds, etc.
Products are exported to China, South Korea, Taiwan, Indonesia,
Malaysia, Japan, etc.
In Hong Kong, the Group has set up a joint venture with an Indian firm
Kama Jewellery India Pvt. Ltd. known as Kama Schachter Jewelry Hong Kong Ltd.
[Kama Schachter]. Kama Schachter is one
of the largest manufacturers, exporters and distributors of diamond jewellery
in Asia. It caters to international
market. It has 3 large factories and a
diamond sourcing office, employing about 1,000 people in India. It introduces 200 new styles every month and
work with designers globally to be at the cutting edge of style.
Now, Leo Schachter has set up a number of associated companies in the
United States, Israel, India, the United Arab Emirates, China, South Africa,
Canada, Switzerland, etc. Annual sales
turnover of the Group is very significant.
The Group’s factories are located in Botswana, Mumbai and Bangkok.
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 Jewellery Show 2015” which will be
held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during
the period of 5th to 9th March, 2015.
The contact persons of the subject are Mr. Auramov Shani and Mr. Alex
Yarrow.
The subject is fully supported by the Leo Schachter Group.
As the history of the subject is over nine 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. 59.72 |
|
|
1 |
Rs. 102.45 |
|
Euro |
1 |
Rs. 81.54 |
INFORMATION DETAILS
|
Analysis Done by
: |
SMT |
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Report Prepared
by : |
DPT |
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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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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 |
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<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.