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Report Date : |
19.03.2014 |
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Tel. No.: |
00-852-25265885/6 |
IDENTIFICATION DETAILS
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Name : |
A. A RACHMINOV DIAMOND (ASIA) LTD. |
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|
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Registered Office : |
Room A, 16/F., Entertainment Building, 30 Queen’s Road Central |
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Country : |
Hong Kong |
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Date of Incorporation : |
24.11.2004 |
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Com. Reg. No.: |
35124158 |
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Legal Form : |
Private Limited Company |
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LINE OF BUSINESS : |
IMPORTER
AND EXPORTER OF ALL KINDS OF DIAMONDS |
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No. of Employees : |
7 |
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 |
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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 – 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 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 |
A. A RACHMINOV
DIAMOND (ASIA) LTD.
ADDRESS: Room A, 16/F., Entertainment
Building, 30 Queen’s Road Central, Hong Kong.
PHONE: 852-2526 5885
FAX: 852-2526 5887
E-MAIL: info@aarachminov.com
Managing Director: Mr. Oded
Shatan
Incorporated on: 24th November, 2004.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$1.00
Business Category: Diamond
Trader.
Employees: 7.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
A. A
RACHMINOV DIAMOND (ASIA)
LTD.
Registered Head
Office:-
Room A, 16/F., Entertainment Building, 30 Queen’s Road Central, Hong
Kong.
Holding Company:-
A.A. Rachminov Diamonds (2000) Ltd., Israel.
Associated
Companies:-
A.A. Rachminov Diamonds (Shanghai) Ltd., China.
A.A. Rachminov Diamonds Europe BVBA, Belgium.
A.A. Rachminov Diamonds Ltd., Israel.
Herszaft & Rachminov Diamonds Ltd., Israel.
Valdiam Di Rachminov David C.s.a.S, Italy.
35124158
0936018
Managing Director: Mr. Oded
Shatan
Contact Person: Ms. Goria Ho
Nominal Share Capital: HK$10,000.00
(Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$1.00
(As per registry dated 24-11-2013)
|
Name |
|
No. of share |
|
A. A. Rachminov Diamonds (2000) Ltd. 3/F., Hayahalom Building, Jabotinsky 3 Ramat-Gan 52520, Israel. |
|
1 = |
(As per registry dated 24-11-2013)
|
Name (Nationality) |
Address |
|
Oded SHATAN |
Room B, 15/F., Elegant Garden, 30 Conduit Road, Mid‑Levels, Hong
Kong. |
|
Matityahu RACHAMINOV |
3/F., Hayahalom Building, Jabotinsky 3 Ramat-Gan 52520, Israel. |
(As per registry dated 24-11-2013)
|
Name |
Address |
Co. No. |
|
Mount Power Ltd. |
19/F., Nan Dao Commercial Building, 359-361 Queen’s Road Central,
Sheung Wan, Hong Kong. |
0426560 |
The subject was incorporated on 24th November, 2004 as a private limited
liability company under the Hong Kong Companies Ordinance.
Last time, the subject was located at Room 3808, 38/F., New World Tower
1, 18 Queen’s Road Central, Hong Kong, moved to the present address in
August 2010.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer and Exporter.
Lines: All kinds of diamonds
Employees: 7.
Commodities Imported: India,
Israel, Belgium
Markets: Hong Kong, China, other Asian
countries
Terms/Sales: L/C, T/T
Terms/Buying: L/C, T/T, D/P
Nominal Share Capital: HK$10,000.00
(Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$1.00
Mortgage or Charge:-
Date of Debenture (Floating and Specific Charge): 19-12-2010
Amount: To secure all
amounts
Property: (a) As security
for the full and accurate payment of the secured amounts in accordance with the
terms of the Debenture, the Pledgor as beneficial owner hereby pledge and
charge to and to the order of the Bank:
(1) By way of a floating charge first in priority, all their assets,
plant, property, real estate, movable property, debts, book debts, accumulated
losses, profits, income, rent, uncalled and/or unpaid share capital, goodwill,
rights of any kind or type whatsoever, as the Pledgor now have and will have at
any time whatsoever in the future.
(2) By way of a specific charge and pledge first in priority, and by
assignment by way of a charge on all their rights to receive monies and/or
other rights deriving from insurance.
The assets and the rights pledged as stated above and any part thereof
shall hereinafter be referred to as the “pledged assets”.
(b) The charge and the pledge created under the Debenture shall also
apply, inter alia, to any right to compensation and/or indemnity and/or
participation in any risk the Pledgors may have as a result of any loss,
shortage, damage, expropriation, seizure, confiscation, recruitment,
destruction of the pledged assets and/or for any other reason.
Mortgagee: The First
International Bank of Israel Ltd.
23 Tural St., Ramat Gan, Israel.
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 required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Good.
A. A Rachminov Diamonds (Asia) Ltd. is a wholly-owned subsidiary of
A. A. Rachminov Diamonds (2000) Ltd. which is an Israel-based company.
The subject is a diamond trader.
It is a member of the A. A. Rachminov Diamonds Group.
The contact person of the subject Oded Shatan is an Israel passport
holder as well as a Hong Kong ID holder.
He is also the contact person of A. A. Rachminov Diamonds (2000) Ltd.
The subject is trading in the following commodities: loose diamonds,
fancy diamonds, white diamonds, coloured diamonds, etc.
The subject is responsible for the customers in China, Thailand,
Singapore, Indonesia and the Philippines.
It has got RJC certification since June 2013.
According to the Group, it has set up offices in Belgium, Israel, China
and Italy, apart form the subject in Hong Kong.
In order to penetrate the China market, the Group set up A.A. Rachminov
Diamonds (Shanghai) Ltd. in Shanghai, China.
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 took part in
“HKTDC Hong Kong International Diamond, Gem & Pearl Show 2014” which had
been held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong
during the period of 3rd to 7th March, 2014.
Its booth No. was Hall 2, L02.
The contact person of the subject Ms. Goria Ho is a Hongkongnese.
The subject is fully supported by the A. A. Rachminov Diamonds Group.
As the history of the subject is over nine years and three months in
Hong Kong, on the whole, consider it good for normal business engagements.
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.60.95 |
|
|
1 |
Rs.101.37 |
|
Euro |
1 |
Rs.84.89 |
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.