|
Report Date : |
02.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
OCEAN DIAMOND
(HK) LTD |
|
|
|
|
Registered Office : |
Room 908, 9/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui,
Kowloon |
|
|
|
|
Country : |
Hong Kong |
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|
|
|
Date of Incorporation : |
11.05.2012 |
|
|
|
|
Com. Reg. No.: |
59788623 |
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|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
LINE OF BUSINESS : |
IMPORTER,
EXPORTER AND WHOLESALER OF ALL KINDS OF DIAMONDS |
|
|
|
|
No. of Employees : |
3. (Including associate) |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Small Company |
|
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 Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
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 |
OCEAN DIAMOND (HK) LTD
ADDRESS: Room 908, 9/F., Hart Avenue Plaza, 5-9
Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2408 2331
FAX: 852-2408 2661
Managing
Director: Mr. Yogeshkumar Damjibhai
Vaghani
Incorporated
on: 11th May, 2012.
Organization: Private Limited Company.
Capital: Nominal: HK$2,613,000.00
Issued: HK$2,613,000.00
Business Category:
Diamond Trader.
Employees: 3. (Including associate)
Main Dealing
Banker: The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Banking
Relation: Satisfactory.
Registered Head Office:-
Room 908, 9/F.,
Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
Solitaire Diamond,
Hong Kong. (Same address)
59788623
1743311
Managing
Director: Mr. Yogeshkumar Damjibhai
Vaghani
General
Manager: Mr. Ashwinkumar Dhirubhai
Sutariya
Nominal Share
Capital: HK$2,613,000.00 (Divided into 2,613,000 shares of HK$1.00 each)
Issued Share
Capital: HK$2,613,000.00
(As
per registry dated 11-05-2013)
|
Name |
|
No.
of shares |
|
Ashwinkumar
Dhirubhai SUTARIYA |
|
613,000 |
|
Rameshbhai
Virjibhai GODHANI |
|
1,800,000 |
|
Yogeshkumar Damjibhai VAGHANI |
|
200,000 |
|
|
|
––––––––– |
|
|
Total: |
2,613,000 ======== |
(As
per registry dated 11-05-2013)
|
Name (Nationality) |
Address |
|
Yogeshkumar
Damjibhai VAGHANI |
318 Satyanarayan Society, Opp-Margha
Kendra, Punagam Varachha Road, Surat 394211, India. |
(As
per registry dated 11-05-2013)
|
Name |
Address |
Co.
No. |
|
Lodestar
Secretaries Ltd. |
13/F., Wah Kit Commercial Centre, 302 Des Voeux Road Central, Hong
Kong. |
0113023 |
The
subject was incorporated on 11th May, 2012 as a private limited liability
company under the Hong Kong Companies Ordinance.
Formerly
the subject was located at Room H, 3/F., Block 16, Cherry Mansion, Site 2,
Whampoa Garden, 9 Shung King Street, Hunghom, Kowloon, Hong Kong, moved to the
present address with effect from 10th July, 2012.
The
old registered address is the residence of Mr. Ashwinkumar Dhirubhai Sutariya.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds
Brand Name: “Ocean”.
Employees:
3. (Including associate)
Commodities
Imported: India, other Asian
countries, etc.
Markets: Hong Kong, Japan, other Asian
countries, Europe, etc.
Terms/Sales: As per contracted.
Terms/Buying: L/C, pre-payment, etc.
Nominal Share
Capital: HK$2,613,000.00 (Divided into 2,613,000 shares of HK$1.00 each)
Issued Share
Capital: HK$2,613,000.00
Increase
of Nominal Capital:-
|
From |
HK$ 10,000.00 |
to |
HK$2,010,000.00 |
on |
15-06-2012 |
|
From |
HK$2,010,000.00 |
to |
HK$2,613,000.00 |
on |
30-01-2013 |
Alternation
of Issued Capital:-
|
Initially |
paid up |
HK$
10,000.00 |
|
15-06-2012 |
paid up |
HK$2,010,000.00 |
|
30-01-2013 |
paid up |
HK$2,613,000.00 |
Profit or Loss:
Kept a balance account in 2012.
Condition: Business is improving.
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: Small.
Having
issued 2,613,000 ordinary shares of HK$1.00 each, Ocean Diamond (HK) Ltd. is jointly
owned by Mr. Ashwinkumar Dhirubhai Sutariya, holding 23.5% interests, Mr.
Rameshbhai Virjibhai Godhani, holding 68.9%; and Mr. Yogeshkumar Damjibhai
Vaghani, 7.6%. Of the three, the first
is residing in Hong Kong. He is also
General Manager of the subject.
The
director of the subject is Mr. Yogeshkumar Damjibhai Vaghani.
The
subject is a diamond importer, exporter and wholesaler. It is trading in loose, polished and cut
diamonds. All the products bear the
brand name ‘Ocean’. The subject
is significant for its round brilliant diamond.
Most
of the commodities are imported from India.
Prime markets are Hong Kong, China, Japan, the other Asian
countries, Europe. 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 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
3G-J65.
The
subject has had an associated company Solitaire Diamond, a Hong Kong-registered
firm located at the same address.
Established on 11th May, 2013, Solitaire Diamond, also a diamond trader,
is owned by Mr. Yogeshkumar Damjibhai Vaghani.
The
business of the subject is chiefly handled by Sutariya. History is just a year and six months in Hong
Kong.
On
the whole, since the history of the subject is short, consider it good for
normal business engagements on L/C basis.
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.60.34 |
|
|
1 |
Rs.101.45 |
|
Euro |
1 |
Rs.83.31 |
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.