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Report Date : |
03.05.2014 |
IDENTIFICATION DETAILS
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Name : |
SHEMON DIAM (H.K.) |
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Registered Office : |
Room M-22, 2/F., Kaiser Estate, Phase 3, 11 Hok Yuen
Street, Hunghom, Kowloon, |
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Country : |
Hong Kong |
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Date of Incorporation : |
25.09.2007 |
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Com. Reg. No.: |
38431788-000-09 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of kinds of diamonds and
jewellery products |
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No. of Employees |
01 |
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
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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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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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 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 |
[Formerly located at:
Room 903, 9/F., Metropole Building, 57 Peking Road, Tsimshatsui, Kowloon, Hong Kong.]
SHEMON DIAM (H.K.)
ADDRESS: Room M-22, 2/F., Kaiser Estate, Phase 3, 11 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-6303 3540
FAX: Not available
E-MAIL: shemondiamhk@yahoo.com
Manager: Mr. Ojas Hasmukhlal Sheth
Establishment: 25th September, 2007.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Diamond & Jewellery Trader.
Employee: 1.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Room M-22, 2/F., Kaiser Estate, Phase 3, 11 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
Associated
Companies:-
Shemon Diam Inc., US.
Shemon Jewels
3 / A Cutch Castle, 3rd Floor, Opera House, J. S. S. Road, Maharashtra, Mumbai 400004, India.
[Tel: 91-22-23821463 Fax: 91-22-23870969]
Ugam B.V.B.A., Belgium.
38431788-000-09
Manager: Mr. Ojas Hasmukhlal Sheth
Name: Mr. Ojas Hasmukhlal SHETH
Residential Address: 2/A, 2/F., Vidya Apartments, Near Siri Road, Chowpaty Band Stan, Mumbai-400006, India.
Name: Mr. Priteshkumar Sevantibhai Shah
Residential Address: Flat 1, 7, Trivedi Niwas New Nagardas Road Andheri East, Mumbai 466 069 MS, India.
The subject was established on 25th September, 2007 as a sole proprietorship concern owned by Mr. Ojas Hasmukhlal Sheth under the Hong Kong Business Registration Regulations.
On 8th March, 2011, a new partner joined in and the subject has become a partnership since then.
Formerly the subject was located at Room 903, 9/F., Metropole Building, 57 Peking Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in July 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
Employee: 1.
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan, Southeast Asia, Europe, Middle East, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Capital: Not disclosed.
Profit or Loss: Making a small profit in the past years.
Condition: Keeping in a normal manner.
Facilities: Making fairly 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.
Shemon Diam (H.K.) was a sole proprietorship set up and owned by Mr. Ojas Hasmukhlal Sheth who is an Indian. It became a partnership as a new partner Mr. Priteshkumar Sevantibhai Shah joined in on 8th March, 2011.
Both partners are India passport holders and do not have the right to reside in Hong Kong permanently. Sheth is the manager of the subject which commenced operation in September 2007.
Formerly the subject’s registered address was located at Room 903, 9/F., Metropole Building, 57 Peking Road, Tsimshatsui, Kowloon, Hong Kong. This office was not in a commercial building but a residential building. The subject moved to the present address in July 2013.
The subject’s telephone number and fax number have not
registered with local telephone company nor listed on telephone
directories. However, Mr. Sheth can
be reached at his Hong Kong mobile phone number
852-6303 3540.
The subject is part of Shemon Group which has got offices in Mumbai, Surat, Antwerp, Los Angeles and Bangkok.
Since the early 60’s, the Group has been in the business of diamonds. It is the wholesaler/distributor of cut and polished diamonds in all sizes and all qualities with or without certificates. The Group is also the wholesaler of industrial rough diamonds. Its factory in Mumbai even manufactures, retails and wholesales studded diamond jewellery.
Shemon Jewels is located at Maharashtra, Mumbai, India. Shemon Jewels is the subject’s main supplier. It is trading in the following commodities:-
Necklace, Rings, Ear-rings, Tanmaniyas, Pendant Sets, Half Sets, Tie Pins, Studded Watches, Nose Pins, Bracelets, Bangles, Combo Diam / Pearl, Combo Diam / Semi Precious Stones, etc.
The contact person of Shemon Jewels is also Ojas Hasmukhlal Sheth.
The subject has got an affiliated company Shemon Diam Inc. in the United States. Sheth is also the vice president of Shemon Diam Inc.
The subject exports its products to Southeast Asia, Europe, North America, South America, the Middle East, etc. Business is rather active.
Business chiefly handled by Sheth himself. History in Hong Kong is just over six years.
On the whole, consider the subject good for normal business engagements in moderate 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.60.23 |
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|
1 |
Rs.101.68 |
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Euro |
1 |
Rs.83.46 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIS |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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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.