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Report Date : |
02.05.2014 |
IDENTIFICATION DETAILS
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Name : |
DIAGEMS TRADING LTD. |
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Registered Office : |
Room 706, 7/F., Hart Avenue Plaza, 5-9A Hart Avenue, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
22.02.2012 |
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Com. Reg. No.: |
59441047 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
·
importer, exporter and wholesaler
of Loose Diamond, Gemstone and Jade. ·
Subject products ranges includes
Pear, Tapered, Marquise and Baguette Princess Cut Diamonds & Marquise Cut
Semi‑Precious Stones ·
subject’s cut and polished
diamonds bear the brand name of “DTC”.
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No. of Employees : |
03 (Including associate) |
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 : |
Moderate |
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Payment Behaviour : |
No complaints |
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Litigation : |
Clear |
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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
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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 |
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 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 |
DIAGEMS TRADING LTD.
ADDRESS: Room 706, 7/F., Hart Avenue Plaza, 5-9A Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2376 2781, 2376 0427
FAX: 852-2376 2357
E-MAIL: dgtc@biznetvigator.com
Managing Director: Mr. Amishkumar Ramniklal Sheth
Incorporated on: 22nd February, 2012.
Organization: Private Limited Company.
Capital: Nominal:HK$10,000.00
Issued: HK$100.00
Business Category: Diamond and Gem Trader.
Annual Turnover: HK$55-60 million. (Including associate)
Employees: 3. (Including associate)
Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 706, 7/F., Hart Avenue Plaza, 5-9A Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
Mailing Address:-
P.O. Box 95305, Tsimshatsui, Kowloon, Hong Kong.
Associated
Companies:-
Diagems Trading Co., Hong Kong. (same address)
Samkit Diamonds Exporters, India.
59441047
1708695
Managing Director: Mr. Amishkumar Ramniklal Sheth
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$100.00
(As per registry
dated 22-02-2014)
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Name |
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No. of shares |
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Amishkumar Ramniklal SHETH |
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76 |
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Rakeshkumar Arvindlal PATEL |
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24 |
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––– |
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Total: |
100 === |
(As per registry dated 22-02-2014)
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Name (Nationality) |
Address |
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Amishkumar Ramniklal SHETH |
Unit A, 8/F., Hang Wan Building, 42-44 Granville Road, Tsimshatsui, Kowloon, Hong Kong. |
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Rakeshkumar Arvindlal PATEL |
Flat F, 12/F., Block B, Hilton Tower, 96 Granville Road, Tsimshatsui, Kowloon, Hong Kong. |
(As per registry
dated 22-02-2014)
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Name |
Address |
Co. No. |
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Banco Pacific C&S Ltd. |
Room 1607, 16/F., Dominion Centre, 43 Queen’s Road East, Wanchai, Hong Kong. |
0683285 |
The subject was incorporated on 22nd February, 2012 as a private limited liability company under the Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Diamond and Gem Trader.
Lines: All kinds of diamonds.
Employees: 3. (Including associate)
Commodities Imported: India, Thailand, other Asian countries, Europe, etc.
Markets: US, the Philippines, Taiwan, Singapore, Indonesia, Switzerland, Central & South America, etc.
Annual Turnover: HK$55-60 million. (Including associate)
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$100.00
Profit or Loss: Made a very small profit in 2013.
Condition: Business is normal.
Facilities: Making fairly active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
Hang Seng Bank Ltd., Hong Kong.
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Standing: Small.
Having issued 100 ordinary shares of HK$1.00 each, Diagems Trading Ltd. is jointly owned by Mr. Amishkumar Ramniklal Sheth, holding 76% interests, and Mr. Rakeshkumar Arvindlal Patel, holding 24%. They are also directors of the subject. They are Hong Kong ID Card holders and have got the right to reside in Hong Kong permanently.
The subject has had an associated company Diagems Trading Company [DTC] located at the same address. Founded on 1st April, 1981 DTC and the subject are engaged in the same lines of business.
DTC is a sole proprietorship owned by Amishkumar Ramniklal Sheth who is a shareholder of the subject. Sheth joined in DTC in March 1999.
Business commenced in April 1981, DTC is one of the oldest diamond trading companies in Hong Kong. It is a loose diamond, gemstone and jade importer, exporter and wholesaler. Most of its products carried are pear, tapered, marquise and baguette princess cut diamonds, marquise cut semi‑precious stones
Currently, the subject is manufacturing the following commodities and offering customers with the following services:-
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Product/Service |
Product/Service
Remarks |
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Fine Jewellery |
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Diamond |
Cut and polished diamonds, from 0.005cts to 0.50 cts, size shapes: brilliant, tapper, bugget, princess, marquise, pears (Importer) Cut and polished diamonds, from 0.005 cts to 0.50 cts, size shapes: brilliant, tapper, bugget, princess, marquise, pears (Exporter) Cut and polished diamonds, from 0.005 cts to 0.50 cts, size shapes: brilliant, tapper, bugget, princess, marquise, pears (Wholesaler) |
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Gemstones and Jade |
Fine jewellery: white 6 yellow gold with diamonds (Importer) Fine jewellery: white 6 yellow gold with diamonds (Exporter) Fine jewellery: white 6 yellow gold with diamonds (Wholesaler) |
The subject’s cut and polished diamonds bear the brand name of “DTC”. Prime markets are the United States, the Philippines, Taiwan, Singapore, Indonesia, Switzerland, Central & South America, etc.
In order to penetrate the international market further, DTC 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 2014” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th to 9th March, 2014. Its booth No. is 3E-C29.
The annual sales turnover of the subject and DTC ranges from HK$55 to 60 million. Making a small profit every year. Business is rather active. Regular suppliers and a number of foreign customers have been maintained.
The subject is an associated company of Samkit Diamonds Exporters [Samkit], an India-based firm also trading in diamonds and jewellery. It is likely that Samkit is one of the subject’s suppliers in India.
The subject’s business is chiefly handled by the two shareholders of the subject.
Since the history of the subject in Hong Kong is just over two years, on the whole, consider it good for normal business engagements on L/C basis or in small credit amounts.
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.60.34 |
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1 |
Rs.101.45 |
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Euro |
1 |
Rs.83.31 |
INFORMATION DETAILS
|
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.