MIRA INFORM REPORT

 

 

Report Date :

02.06.2014

 

IDENTIFICATION DETAILS

 

Name :

AMY  DIAM  LTD.

 

 

Registered Office :

Room C3, 5/F., Phase 1, Kaiser Estate, 37-42 Man Yue Street, Hunghom, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

29.09.2005

 

 

Com. Reg. No.:

36152790

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler all kinds of diamonds (including loose, round and princess cut diamonds)

 

 

No. of Employees

03  (Including associate)

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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

 

 

 


Company name

 

AMY  DIAM  LTD.

 

 

Company ADDRESS

 

Room C3, 5/F., Phase 1, Kaiser Estate, 37-42 Man Yue Street, Hunghom, Kowloon, Hong Kong.

PHONE:            852-2367 7700

FAX:                 852-2367 7779

E-MAIL:            info@amydiam.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Girishkumar Girdharlal Shah

 

 

SUMMARY

 

Incorporated on:            29th September, 2005.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$6,000,000.00

Issued:             HK$6,000,000.00

 

Business Category:       Diamond Trader.

 

Employees:                  3.  (Including associate)

 

Main Dealing Banker:     Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

 

Banking Relation:          Satisfactory.


Company ADDRESS

 

Registered Head Office:-

Room C3, 5/F., Phase 1, Kaiser Estate, 37-42 Man Yue Street, Hunghom, Kowloon, Hong Kong.

 

Affiliated/Associated Companies:-

Amy Diam Creations Pvt. Ltd., India.

Amy Diam Vega Jewellery Pvt. Ltd., India.

Amy Diam, Hong Kong.  (Same address)

Shanghai Amy Diam Co. Ltd., China.

Shenzhen Prestige Jewelry Co. Ltd., China.

Virajdiam, Hong Kong.  (Same address)

Waily International Ltd., Taiwan.

 

 

BUSINESS REGISTRATION NUMBER

 

36152790

 

 

COMPANY FILE NUMBER

 

0998317

 

 

MANAGEMENT

 

Managing Director:  Mr. Girishkumar Girdharlal Shah

 

 

CAPITAL

 

Nominal Share Capital: HK$6,000,000.00 (Divided into 6,000,000 shares of HK$1.00 each)

Issued Share Capital:     HK$6,000,000.00

 

 

SHAREHOLDERS

(As per registry dated 29-09-2013)

 

Name

 

No. of shares

Girishkumar Girdharlal SHAH

 

3,600,000

Heena Girish SHAH

 

2,400,000

 

 

––––––––

 

Total:

6,000,000

=======

 

DIRECTORS

(As per registry dated 29-09-2013)

 

Name

(Nationality)

 

Address

Girishkumar Girdharlal SHAH

Flat J, 12/F., Windsor Mansions, 17 Austin Avenue, Tsimshatsui, Kowloon, Hong Kong.

 

Heena Girish SHAH

Flat J, 12/F., Windsor Mansions, 17 Austin Avenue, Tsimshatsui, Kowloon, Hong Kong.

 

 

SECRETARY

(As per registry dated 29-09-2013)

 

Name

Address

WONG Hiu Wan

Flat D, 20/F., Block 3, Seaview Crescent, 8 Tung Chung Waterfront Road, Tung Chung, Lantau Island, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 29th September, 2005 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Formerly the subject was located at Flat A3, 5/F., Burlington House, 90‑94C Nathan Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in September 2013.

 

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           all kinds of diamonds (including loose, round and princess cut diamonds)

 

Employees:                  3. (Including associate)

 

Commodities Imported: India, Belgium, other European countries, etc.

 

Markets:                        Hong Kong, Japan, Southeast Asia, etc.

 

Terms/Sales:                 L/C, T/T, etc.

 

Terms/Buying:               L/C, T/T, D/P, etc.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$6,000,000.00 (Divided into 6,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$6,000,000.00

 

Increase of Nominal Capital:-

From

HK$1,000,000.00

to

HK$6,000,000.00

on

11-03-2009

 

 

Alternation of Issued Capital:-

Initially

paid up

HK$1,000,000.00

11-03-2009

paid up

HK$5,000,000.00

 

 

–––––––––––––––

Total:

paid up

HK$6,000,000.00

==============

 

Mortgage or Charge:     (See attachment)

 

Profit or Loss:               Making a small profit in the past years.

 

Condition:                     Business is satisfactory.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

·         Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

·         Antwerpse DiamantBank NV
(also known as Antwerp Diamond Bank NV), Hong Kong Branch.

 

Standing:  Good.

GENERAL

Having issued 6 million ordinary shares of HK$1.00 each, Amy Diam Ltd. is jointly owned by Girishkumar Girdharlal Shah, holding 60% interests; and Mr. Heena Girish Shah, holding 40%.  The two Shahs are also the directors of the subject.  Both are Hong Kong ID card holders and have got the right to reside in Hong Kong permanently.

The subject is a member of the Amy Diam Group.  It has got an associated company Amy Diam located at the same operating address.  Established on 21st February 1990, Amy Diam is engaged in the same lines of business as the subject.  This firm is also managed and owned by the Shahs.

Amy Diam has been manufacturing and designing quality diamond jewellery for clients all over the world.  It offers clients with high-end products from Hong Kong and China.  However, it is chiefly a loose diamond trader.  It is famous for its round and princess cut diamonds.  Its diamonds range in sizes from 0.01 cts. to 1.00 cts. in a variety of cuts ranging from round to princess and in grades of “WS” to “SI”.

Amy Diam has had a close relationship with a leading sightholder of DTC Ltd. in India where it purchases its diamonds.  Its diamonds are made from sawn rough which when polished have maximum lustre and brilliance.  Amy Diam produces different cuts of diamond on behalf of its clients and constantly offer innovative solutions found in modern jewellery styles.

It also supplies a variety of pears, baguettes and marquises in all sizes and colours.

Amy Diam has associated factories in China that manufacture its jewellery collections and OEM products on behalf of its clients.  Amy Diam’s product range includes rings, earrings and pendants in range of settings in 18K gold and platinum and silver, and special expertise in “invisible set jewellery” finely crafted from princess cut diamonds.

Amy Diam has had a main factory in Shenzhen Special Economic Zone, China which is engaged in manufacturing its branded products.

Shenzhen Prestige Jewelry” is its own retail brand which has been recently setup in China.  For the Shenzhen Prestige Jewelry Co. Ltd., Amy Diam has specially designed classic styles from rings to pendants to bracelets and earrings.  Shenzhen Prestige” is a China focused brand that aims to bring a larger variety of luxury diamond products to the mainland market.  Currently, the market share of “Shenzhen Prestige” in China has been increasing.

The subject’s associated company Shanghai Amy Diam Co. Ltd., a China‑based company is responsible for penetrating the eastern China market.

Besides the China market, Amy Diam exports its products to Japan, Southeast Asia, etc.  Business is rather active.

The history of Amy Diam in Hong Kong is over twenty-four years.  Regular suppliers and customers in India have been maintained.

The Amy Diam Group is a Hong Kong based diamond house which has been engaged in this trade of polished diamond trading for 42 years.  It has its presence in the Asia Pacific region markets such as Hong Kong, Shanghai and  Shenzhen SEZ.  Taiwan has been also its prime market since last 20 years.

Recently global economy is facing impacts of e-commerce, Amy Diam Group is also launching a e-business brand of 8 Hearts approach emerging markets in China by the concept of providing affordable and elegant diamond jewellery that are made in house-design and exquisite craftwork via Internet.

Today the Group has entered into a new era of business by integrating into the diamond jewellery manufacturing since last 13 years under the name of Amy Diam Vega Jewellery Pvt. Ltd.  This firm is the second generation of the family entrepreneurship entering the business in order to lead the Group moving forward..

The subject and Amy Diam are controlled by the Shah family.

In Hong Kong, the subject has had an associated company Virajdiam which is also a diamond trading company.  Located at the same address, Virajdiam is also owned by the Shah family.

As the history of the subject in Hong Kong is over eight years, on the whole, consider it good for normal business engagements.

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

02-06-2006

Instrument:      Debenture

Property:

1)   All stocks shares bonds and securities of any kind whether marketable or otherwise and all other interests including loan capital of the Company

2)   All book and other debts revenues and claims both present and future due or owing or which any become due or owing to or purchased or otherwise acquired by the Company

3)   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 both present and future of the Company

4)   The undertaking and all other assets of the Company both present and future including the stock in trade of the Company and the heritable property

Mortgagee:      Antwerpse DiamantBank NV
(also known as Antwerp Diamond Bank NV), Hong Kong Branch.

All money and the discharge of all obligations and liabilities

 


 

 

 

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.59.03

UK Pound

1

Rs.98.91

Euro

1

Rs.80.33

                

INFORMATION DETAILS

 

Analysis Done by :

kar

 

 

Report Prepared by :

MNL

               

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.