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Report Date : |
16.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
FOREVER LUCKY DIAMOND
LTD. |
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Registered Office : |
Flat 603, 6/F., Oriental Centre, 67-71 Chatham Road South,
Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
08.11.2007 |
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Com. Reg. No.: |
38613788 |
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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 and jewellery products, precious stones. |
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No. of Employees : |
3 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small company |
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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) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
|
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 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 |
FOREVER LUCKY
DIAMOND LTD.
ADDRESS: Flat 603, 6/F., Oriental Centre, 67-71
Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-3116 0455, 6622 7151
FAX: 852-3116 4405
Managing Director: Mr. Jatin Champaklal Magiya
Incorporated on: 8th
November, 2007.
Organization: Private
Limited Company.
Capital: Nominal: HK$10,000,000.00
Issued: HK$10,000,000.00
Business Category: Diamond Trader.
Employees:
3.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
FOREVER LUCKY
DIAMOND LTD.
ADDRESS:
Registered Head Office:-
Flat 603, 6/F., Oriental Centre, 67-71
Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
38613788
1183312
Managing Director: Mr. Jatin Champaklal Magiya
Nominal Share Capital: HK$10,000,000.00
(Divided into 10,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000,000.00
(As per registry dated 08-11-2013)
|
Name |
|
No. of shares |
|
Jatin Champaklal MAGIYA |
|
5,000,000 |
|
Hema Jatin MAGIYA |
|
5,000,000 |
|
|
|
––––––––– |
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|
Total: |
10,000,000 ======== |
(As per registry dated 08-11-2013)
|
Name (Nationality) |
Address |
|
Jatin Champaklal MAGIYA |
Flat 603, 6/F., Oriental Centre, 67-71
Chatham Road South, Tsimshatsui, Kowloon, Hong Kong. |
|
Hema Jatin MAGIYA |
Flat 603, 6/F., Oriental Centre, 67-71 Chatham
Road South, Tsimshatsui, Kowloon, Hong Kong. |
(As per registry dated 08-11-2013)
|
Name |
Address |
Co. No. |
|
CBEST Solutions Ltd. |
Suite 705, 7/F., Empress Plaza, 17-19
Chatham Road South, Tsimshatsui, Kowloon, Hong Kong. |
1295959 |
The subject was incorporated on 8th
November, 2007 as a private limited liability company under the Hong Kong
Companies Ordinance.
Formerly the subject was located at Flat A,
13/F., South Sea Mansion, 81 Chatham Road, Tsimshatsui, Kowloon, Hong
Kong, moved to Flat A, 10/F., Tung Fai Building, 27A Cameron Road, Tsimshatsui,
Kowloon, Hong Kong in November 2010 and further to the present address in
March 2013.
Apart from these, neither material change
nor amendment has been ever traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of diamonds and jewellery products, precious stones.
Employees: 3.
Commodities Imported: India, other Asian countries, etc.
Markets: Japan,
other Asian countries, Middle East.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
Nominal Share Capital: HK$10,000,000.00
(Divided into 10,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000,000.00
Mortgage or Charge:-
Date of Mortgage: 15-06-2010
Amount: To
secure all monies in respect of general banking facilities
Property: 2/51st
parts or shares of and in Kowloon Inland Lot No. 8435 (10/F. of Tung Fai
Building, 27A Cameron Road, Kowloon, Hong Kong.)
Mortgagee: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Profit or Loss: Made small profits in 2012 and 2013.
Condition: Business
is normal.
Facilities: Making
fairly active use of general banking facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Banker:
The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Standing:
Small.
Having issued 10 million ordinary shares of
HK$1.00 each, Forever Lucky Diamond Ltd. is equally owned by Hema Jatin Magiya
and Jatin Champaklal Magiya. The two
Magiyas are Indian and also acting as the directors of the subject. Both are Hong Kong ID Card holders and have
got the right to reside in Hong Kong permanently.
At the very beginning, the subject’s issued
share capital was just HK$10,000.00, increased to the present amount on 19th
December, 2011.
The subject is a diamond trader. It is significant for its loose
diamonds. It deals in polished diamonds
with round brilliant cut and fancy shapes diamonds, with size ranges from 0.01
cts to 5.00 cts in all colour and clarity with superior cut quality. According to the subject, it supplies local
and world wide markets.
Rough diamonds, loose, polished and cut
diamonds are chiefly imported from India.
The subject has got regular suppliers in India. Some of the rough diamonds are polished or
processed in Hong Kong. Finished
products and polished diamonds are exported or re-exported to Taiwan, South
Korea, Japan, India, other Asian countries, the Middle East, North America,
Eastern and Western Europe, etc.
Business keeps on improving.
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 1-C06.
The subject’s business is chiefly handled by
the two Magiyas. History in Hong Kong is
over six years and three months.
Hema Jatin Magiya can be reached at his
mobile phone number 852‑6622 7151.
On the whole, consider the subject good for
normal business engagements in small credit amounts.
Property information of the company:-
Property Location: 10/F., Tung Fai Building, 27A Cameron Road, Kowloon,
Hong Kong.
Owner: Forever
Lucky Diamond Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
15-06-2010 |
- |
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong. |
Mortgage to secure general banking
facilities |
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.59.48 |
|
|
1 |
Rs.100.93 |
|
Euro |
1 |
Rs.80.71 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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.