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Report Date : |
11.07.2014 |
IDENTIFICATION DETAILS
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Name : |
CRYSTAL GEMS
LTD. |
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Formerly Known as : |
Aagam Exports Ltd |
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Registered Office : |
Room 901, 9/F., Hilder Centre, 2 Sung Ping Street,
Hunghom, |
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Country : |
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Date of Incorporation : |
31.12.1992 |
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Com. Reg. No.: |
16531473 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
importer, exporter and wholesaler of all kinds of loose diamonds which include 0.3 carat loose diamonds, 0.05 carat loose diamonds & 10.14 carat loose diamonds as well as emerald, precious stones & jewellery products. |
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No of Employees : |
06 (Including associate) |
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.
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Source
: CIA |
CRYSTAL GEMS
LTD.
Room 901, 9/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2721 8608, 2722 0049
FAX: 852-2723 9704
E-MAIL: info@crystalgems.com.hk
Managing Director: Mr. Prasannkumar Kantilal Shah
Incorporated on: 31st December, 1992.
Organization: Private Limited Company.
Capital: Nominal: HK$5,000,000.00
Issued: HK$5,000,000.00
Business Category: Diamond Trader.
Employees: 6 (Including associate)
Main Dealing Banker: Antwerpse DiamantBank NV (also known as Antwerp Diamond Bank NV), Hong Kong
Branch.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 901, 9/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
Sanghavi Group of Companies
Crystal Gems Ltd., Hong Kong. (Same address)
Dynamic Design Group
Inc., US.
Rare Gems BVBA,
Belgium.
Royal Diamond Co. Ltd., Japan.
Sanghavi Diamond
(Shanghai) Co. Ltd., China.
Sanghavi Diamond Mfg.
Pvt. Ltd., India.
Sanghavi Diamond Pvt.
Ltd., India.
Sanghavi Diamonds Inc., US.
Sanghavi Exports International Private Ltd., India.
Sanghavi Exports, Hong Kong.
Sanghavi Exports, India.
Sanghavi Far East
Pte. Ltd., Singapore.
Sanghavi Jewel Pvt. Ltd., India.
Sanghavi Jewellery (Tokyo) Co. Ltd., Japan.
Sanghavi Jewellery Tokyo Co. Ltd., Japan.
Sanghavi Solitaire Inc., US.
Smile Jewellery LLC, UAE.
Super Diam, Hong Kong.
etc.
16531473
0396911
Managing Director: Mr. Prasannkumar Kantilal Shah
Nominal Share Capital: HK$5,000,000.00 (Divided into 5,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$5,000,000.00
(As per registry
dated 31-12-2013)
|
Name |
|
No.
of shares |
|
Prasannkumar
Kantilal SHAH |
|
49,999 |
|
Vaishali
Prasanna SHAH |
|
1 |
|
Amitkumar Sevantilal
SANGHAVI |
|
4,950,000 |
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–––––––– |
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Total: |
5,000,000 ======= |
(As per registry
dated 31-12-2010)
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Name (Nationality) |
Address |
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Vaishali
Prasanna SHAH |
Flat A, 18/F., Tower 1,
Harbourfront Landmark, 11 Wan Hoi Street, Hunghom, Kowloon, Hong Kong. |
|
Prasannkumar
Kantilal SHAH |
Flat A, 18/F., Tower 1,
Harbourfront Landmark, 11 Wan Hoi Street, Hunghom, Kowloon, Hong Kong. |
(As per registry
dated 31-12-2013)
|
Name |
Address |
|
Vardhan Amreshkumar SHAH |
Room 901, 9/F., Hilder Center, 2 Sung Ping Street,
Hunghom, Kowloon, Hong Kong. |
The subject was incorporated on 31st December, 1992 as a private limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Aagam Exports Ltd., name changed to the present style on 12th August, 1993.
Formerly the subject was located at Room 601-602, 6/F., Trans Hong Kong Commercial Building, 41-43 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in June 2006.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: all kinds of loose diamonds which include 0.3 carat loose diamonds, 0.05 carat loose
diamonds & 10.14 carat loose diamonds as well as emerald, precious stones & jewellery products.
Employees: 6. (Including associate)
Commodities Imported: India, Belgium, other European and Asian countries, etc.
Markets: Japan, other Asian countries, North America, Europe, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Hong Kong Jewelry Manufacturers’ Association, Hong Kong.
Nominal Share Capital: HK$5,000,000.00 (Divided into 5,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$5,000,000.00
Mortgage or Charge: (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Keeping in an active state.
Facilities: Making active use of general banking facilities.
Payment: Met obligations as contracted.
Commercial Morality: Satisfactory.
Banker: Antwerpse DiamantBank NV (also known as Antwerp Diamond Bank NV), Hong Kong
Branch.
Standing: Good.
Having issued 5 million ordinary shares of HK$1.00 each, Crystal Gems Ltd. is jointly owned by Mr. Amitkumar Sevantilal Sanghavi, holding about 99% interests; and Mr. Prasannkumar Kantilal Shah, holding about 1%.
The subject has got an associated company Crystal Gems (HK) Ltd. [CGHK] located at its operating address. CGHK is a wholly-owned subsidiary of Sanghavi Exports International Pvt. Ltd. [SEIPL] which is an India-based firm. The subject and CGHK are engaged in the same lines of business.
The subject is a diamond importer, exporter and wholesaler. It is trading in all kinds of loose diamonds. Its products include 0.3 carat loose diamonds, 0.05 carat loose diamonds, 10.14 carat loose diamonds. It also trades in gemstones. Most of the diamonds have got the GIA, IGI and HRD certificates.
SEIPL was set up by the Sanghavi brothers. The Sanghavi brothers have set up a number of firms bearing the initials of Sanghavi. All these firms form the Sanghavi Exports Group of companies which are also diamond traders and manufacturers.
The subject and CGHK are members of the Sanghavi Exports Group.
The Sanghavi Exports Group was founded by the four Sanghavi brothers, Vasant, Kirti, Ramesh and Chandrakant in the late 70s.
Under the flagship company Sanghavi Exports, the Sanghavi Exports Group has developed extensively in the diamond industry. Today, the Group’s core business is exporting polished diamonds and diamond studded jewellery. The Group is also engaged in manufacturing diamonds and jewellery in India. Sanghavi Exports is ISO 9001:2000 certified and also a Government Recognized Star Trading House, Top Export Award Winner for seven consecutive years and a Diamond Trading Company Sightholder.
Besides the subject, the Sanghavi Exports Group has set up a large network of marketing offices all over the world, main ones are in the United States, Belgium, Japan, Australia, Canada, Singapore, China, Thailand, South Korea, Indonesia, the United Arab Emirates, and other European countries. The Group’s diamond manufacturing factory Sanghavi Diamond Mfg. Pvt. Ltd. is located in Surat, India.
Sanghavi Group has five production facilities in Surat and Mumbai. The company has made an investment of US$50 million in these production facilities which are employing over 3,500 employees directly.
The Group’s finished products with sizes ranging from 0.01 points to 3.00 carats.
In Hong Kong, the subject’s business is chiefly handled by Mr. Prasannkumar Kantilal Shah, an Indian, who is also the minor shareholder 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 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 the Group and the Sanghavi brothers. Its business is active and good.
On the whole, since the history of the subject in Hong Kong is over 21 years, consider it good for normal business engagements.
REMARKS:
Property
information of the company:-
1. Property Location: Workshop Unit 1 on 9/F., Hilder Centre, 2 Sung Ping Street, Kowloon, Hong Kong.
Owner: Crystal Gems Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
15-12-2006 |
- |
Antwerpse DiamantBank NV (also known as Antwerp
Diamond Bank NV), Hong Kong Branch. |
Mortgage to secure general banking facilities |
2. Property Location: Workshop Unit 1 on 9/F., Hilder Centre, 2 Sung Ping Street, Kowloon, Hong Kong.
Owner: Crystal Gems Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
30-07-2013 |
- |
Antwerpse DiamantBank NV (also known as Antwerp
Diamond Bank NV), Hong Kong Branch. |
Deed of Variation |
|
Date |
Particulars |
Amount |
|
30-10-2002 |
Instrument: Debenture Property: 1) All freehold and leashold property of the Company both present and future and all buildings and fixtures on any such property and all plant machinery vehicles computers and office and other equipment of the Company 2) All stocks shares bonds and securities of any kind whether marketable or otherwise and all other interests including loan capital of the Company 3) All book and other debts revenues and claims 4) the uncalled capital goodwill and all patents patent applications trade marks trade names registered designs and copyrights and all licences and ancillary and connected rights relating to the intangible property 5) The undertaking and all other assets of the Company Mortgagee: Antwerpse DiamantBank NV (also known as Antwerp Diamond Bank
NV), Hong Kong Branch. |
General credit facilities for the sum of HK$46,800,000
granted by the Lender to the Company and/or Super Diam |
|
15-12-2006 |
Instrument: Mortgage Property: 7/1,148th parts or shares of and in Section B of Kowloon Marine Lot No. 113 (Workshop Unit 1 on 9/F. of Hilder Centre, 2 Sung Ping Street, Kowloon, Hong Kong.) Mortgagee: Antwerpse DiamantBank NV (also known as Antwerp Diamond Bank
NV), Hong Kong Branch. |
To secure all moneys in respect of general banking
facilities |
|
30-07-2013 |
Instrument: Deed of Variation Property: 7/1,148th parts or shares of and in Section B of Kowloon Marine Lot No. 113 (Workshop Unit 1 on 9/F. of Hilder Centre, 2 Sung Ping Street, Kowloon, Hong Kong.) Mortgagee: Antwerpse DiamantBank NV (also known as Antwerp Diamond Bank
NV), Hong Kong Branch. |
All sums |
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.59.88 |
|
|
1 |
Rs.102.59 |
|
Euro |
1 |
Rs.81.69 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>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 |
|
<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.