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Report Date : |
26.03.2014 |
IDENTIFICATION DETAILS
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Name : |
HARSHDIAM |
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Formerly Known As : |
HARSH DIAM |
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Registered Office : |
Flat B-2, 15/F., Hankow Centre, 4-4B Ashley Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
29.09.1993 |
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Com. Reg. No.: |
17395066-000-09 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter, Distributor and Wholesaler of all kinds of gemstone, jewellery & Diamond product (including Single-Cut Diamond, Fullcut Loose Diamond, Carat Size Diamonds & Blue Sapphire) Subject Loose Diamonds includes Marquise, Pears, Tappers, Baguettes and Rose Cut Diamonds usually range from 0.05 cts to 0.60 cts. |
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No. of Employees |
02 |
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 – december 01, 2013
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Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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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 |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 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.
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Source : CIA |
HARSHDIAM
[Formerly known as HARSH DIAM]
Flat B-2, 15/F., Hankow Centre, 4-4B Ashley Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2877 3191
FAX: 852-2801 4910
E-MAIL: jayesh@netvigator.com
Manager: Mr. Jayeshkumar Indravadan Shah
Establishment: 29th September, 1993.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond Distributor and Trader.
Employees: 2.
Main Dealing Banker: The Royal Bank of Scotland N.V., Hong Kong Branch.
Banking Relation: Satisfactory.
Head Office:-
Flat B-2, 15/F., Hankow Centre, 4-4B Ashley Road, Tsimshatsui, Kowloon, Hong Kong.
Associated
Companies:-
4C’s Diamonds Distributors, Hong Kong. (same address)
Hassan Jewellery
PO Box 28948, United Arab Emirates.
[Tel: 971-4-2256 399]
Hassan Gems L.L.C.,
PO Box 21892, Dubai, United Arab Emirates.
[Tel: 971-4-2268 645, 971-50-6518 025
Fax: 971-4-2262 346]
17395066-000-09
Manager: Mr. Jayeshkumar Indravadan Shah
Name: Mr. Jayeshkumar Indravadan SHAH
Residential Address: Flat
A-3, 9/F., Hankow Centre, 41-51 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 29th September, 1993 as a sole proprietorship concern owned by Mr. Jayeshkumar Indravadan Shah under the Hong Kong Business Registration Regulations.
Originally the subject was registered under the name of Harsh Diam, name changed to the present style on 2nd November, 1993.
At the very beginning, the subject was located at Flat A-3, 9/F., Hankow Centre, 41-51 Peking Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat C-3, 10/F. of the same building in April 1995, and further to Flat B-2, 15/F. of the same building in April 2008.
Apart from these, neither material change nor amendment has
been ever traced and noted.
Activities: Importer, Exporter, Distributor and Wholesaler.
Lines: all kinds of gemstone, jewellery & Diamond product (including Single-Cut Diamond,
Fullcut Loose Diamond, Carat Size Diamonds & Blue Sapphire)
Employees: 2.
Commodities Imported: India, Belgium, Thailand, other Asian countries, etc.
Markets: Hong Kong, other Asian countries, Middle East, Europe, US, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
The Indian Chamber of Commerce Hong Kong, Hong Kong.
Capital: Not disclosed.
Profit or Loss: Making a very small profit every year.
Condition: Business is rather active.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
· The Royal Bank of Scotland N.V., Hong Kong Branch.
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Harshdiam is a sole proprietorship set up and owned by Mr. Jayeshkumar Indravadan Shah who is an Indian. Shah is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.
The subject commenced business in September 1993. Before setting up the subject, Shah and Mr. Chetan Chinubhai Choksi who is also an Indian set up a partnership concern known as 4C’s Diamonds Distributors [4CDD] on 11th March, 1988 under the Hong Kong Business Registration Regulations. However, Shah retired from the firm on 1st April, 2000.
At the very beginning, 4CDD was located at Flat A-3, 9/F., Hankow Centre, 4‑4B Ashley Road, Tsimshatsui, Kowloon, Hong Kong where was the residential address of Shah. Now, 4CDD and the subject are located at the same address.
The contact person of 4CDD is also Jayeshkumar Indravadan Shah. The management of this company are Mr. Nilesh Ratilal Sedani and Mr. Patwa Amit Kumar.
Located in a private building, the subject’s registered address is also the new residential address of Shah. It is likely that the subject has not updated its information filed with the Inland Revenue Department Business Registration Office of the Hong Kong SAR Government.
The subject is a diamond, gemstone and jewellery product trader.
It is a diamond
importer, exporter and wholesaler. It is
trading in the following commodities:-
Single-cut diamond, fullcut loose diamond, carat size diamonds & blue sapphire.
Polished diamonds, loose and cut diamonds are imported from India, Belgium and the other European countries. Its loose diamonds like Marquise, Pears, Tappers, Baguettes and Rose Cut Diamonds usually range from 0.05 cts to 0.60 cts.
Gemstones and diamonds are marketed in Hong Kong, exported to India, Japan, the other Asian countries, the Middle East, Europe, etc. Business is rather steady.
The subject has had
the following two associates in the United Arab Emirates:-
· Hassan Gems L.L.C.;
· Hassan Jewellery.
The phone number of the former firm is 971-4-2256399 while the latter is 971-4-2268 645. Hassan Jewellery is a jewellery store engaged in jewellery retailing. Hassan Gems L.L.C. is a diamond and jewellery trader, retailer, wholesaler, and distributor. Both firms are in Dubai, the United Arab Emirates.
The subject has got regular suppliers in India as Shah has developed business ties with a number of diamond factories in Mumbai, India. Besides, regular customers also have been maintained, especially in the United Arab Emirates. The subject’s business is chiefly handled by Shah himself. Business is profitable and steady.
As the history of the subject in Hong Kong is over twenty years, 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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.49 |
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1 |
Rs.99.77 |
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Euro |
1 |
Rs.83.67 |
INFORMATION DETAILS
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Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.