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Report Date : |
07.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
CHINA DIAMOND CORPORATION LTD. |
|
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Registered Office : |
Room 911-912, 9/F., Heng Ngai Jewelry Centre, 4 Hok Yuen Street,
Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
17.04.2000 |
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Com. Reg. No.: |
30872168-000 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Processor of All kinds of raw materials for diamond, precious
stones, sapphire, ruby |
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No of Employees : |
18 |
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 |
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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
|
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 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately 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 |
CHINA
DIAMOND CORPORATION LTD.
ADDRESS: Room 911-912, 9/F., Heng Ngai
Jewelry Centre, 4 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2521 0029, 2375 8018,
2736 6040
FAX: 852-2521 0019
E-MAIL: info@chinadia.com
Managing
Director: Mr. Darshan Jivatlal Bhagat
Incorporated
on: 17th April, 2000.
Organization: Private Limited Company.
Capital:
Nominal: HK$12,880,623.00
Issued: HK$12,880,623.00
Business Category: Diamond Importer and Processor.
Employees: 18.
Main Dealing
Banker: Dah Sing Bank Ltd., Hong Kong.
Banking
Relation: Satisfactory.
CHINA
DIAMOND CORPORATION LTD.
ADDRESS:
Registered
Head Office:-
Room 911-912, 9/F.,
Heng Ngai Jewelry Centre, 4 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
Business
Name::-
C D (Belgium)
Company, Hong Kong. [BR No.
30872168-001]
Shanghai
Office:-
Room A511, China
Diamond Exchange Center, 1701 Century Avenue, Pudong, Shanghai 200122, China.
[Tel: (86-21) 6128
0738; Fax: (86-21) 6182 0731]
Zhuhai
Factory:-
3/F., 8 The Tenth
Ping Xi Road, Nan Ping Hi-Tech Industrial Area, Zhuhai SEZ, China.
16 Diamonds.com
Ltd., Hong Kong. (Same address)
Bei Wah Diamante
(Macau) Limitada, Macau.
C.D. Jewels DMCC,
UAE.
C.D. Jewels,
India.
Jewellery
Collection (Holdings) Ltd., Hong Kong.
Jewellery
Collection Co., Hong Kong. [Owned by Mr. Yau Kung Wan (BR No. 16971156-000)]
Jewellery
Collection Group Ltd., Hong Kong. [Dissolved] [Also trading as Jewellery
Collection Co. (BR No. 17517709-001)]
Jewellery
Collection International Ltd., Hong Kong.
Jewellery
Collection Manufacturer Ltd., Hong Kong.
30872168-000
0713048
Managing
Director: Mr. Darshan Jivatlal Bhagat
Contact
Person: Ms. Ceicludia Yip
Nominal Share
Capital: HK$12,880,623.00 (Divided into 12,880,623 shares of HK$1.00 each)
Issued Share
Capital: HK$12,880,623.00
(As
per registry dated 17-04-2013)
|
Name |
|
No. of shares |
|
Darshan
Jivatlal BHAGAT |
|
8,372,405 |
|
YAU Kung Wan |
|
4,508,218 |
|
|
|
––––––––– |
|
|
Total: |
12,880,623 ======== |
(As per registry dated 17-04-2013)
|
Name (Nationality) |
Address |
|
Darshan Jivatlal BHAGAT |
Flat A, 25/F., Block 6, Parc Palais, 18 Wylie Road, Ho Man Tin, Kowloon, Hong Kong. |
|
YAU Kung Wan |
Flat F, 42/F., Robinson Place, 70 Robinson Road, Hong Kong. |
(As
per registry dated 02-01-2014)
|
Name |
Address |
Co. No. |
|
Professional
Company Secretary Ltd. |
Room 22-23, 15/F., Hollywood Plaza, 610 Nathan Road, Mongkok,
Kowloon, Hong Kong. |
1886121 |
The subject was incorporated
on 17th April, 2000 as a private limited liability company under the Hong Kong
Companies Ordinance.
Formerly the
subject was located at Room 803, 8/F., Dragon Seed Building, 39 Queen’s Road
Central, Hong Kong, moved to Room 502, 5/F., Wing On House, 71 Des Voeux
Road Central, Hong Kong in February 2007, to Room 407-409, 4/F., Tower B,
Hunghom Commercial Centre, 37-39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong
in February 2009, and further moved to the present address with effect from
26th April, 2011.
Apart from these,
neither material change nor amendment has been ever traced and noted.
Activities: Importer and Processor.
Lines: All kinds of raw materials for diamond,
precious stones, sapphire, ruby, etc.
Brand Name: J.C.
Employees:
18.
Materials/Commodities:
Imported from Europe, South Africa, India, etc.
Markets: Southeast Asia, Japan, Europe, Middle
East, etc.
Terms/Sales: L/C, T/T, D/A, etc.
Terms/Buying: L/C, T/T, D/P, D/A, etc.
Nominal Share
Capital: HK$12,880,623.00 (Divided into 12,880,623 shares of HK$1.00 each)
Issued Share
Capital: HK$12,880,623.00
Mortgage or Charge
(since 2008): (See attachment)
Profit or Loss:
Making a small profit every year.
Condition:
Business is active.
Facilities: Making
active use of general banking facilities.
Payment: So far so good.
Commercial
Morality: Satisfactory.
Bankers:-
Dah Sing Bank
Ltd., Hong Kong.
Bank of India,
Hong Kong Branch.
China Construction
Bank (Asia) Corporation Ltd., Hong Kong.
CITIC Bank
International Ltd., Hong Kong.
DBS Bank
(Hong Kong) Ltd., Hong Kong.
Standard Chartered
Bank (Hong Kong) Ltd., Hong Kong.
The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Good.
China Diamond
Corporation Ltd. is a private limited company incorporated in April 2000. Formerly the subject had just issued 2
ordinary shares of HK$1.00 each while the shareholders Mr. Darshan Jivatlal
Bhagat and Mr. Tso Wing Ching each held one share respectively. On 20th March, 2001, the subject created
859,034 ordinary shares more and on the same date, 558,321 shares were allotted
to Bhagat while 300,662 shares were allotted to Tso.
Now, the subject
has been reshuffled and has increased its issued share capital again. It is jointly owned by Bhagat, holding 65%,
and Mr. Yau Kung Wan, holding 35%. Yau
and Bhagat are also directors of the subject.
Bhagat is a Hong Kong ID card holder.
The subject moved
to the present address in April 2011.
The subject is a
diamond trader. Its business name is C D
(Belgium) Company. It imports all kinds
of raw materials for diamond, precious stones, sapphire, ruby, etc. from Europe,
South Africa, Cambodia, India, other Asian countries, etc. However, India is the subject’s main
supplying country. After processing, the
finished products such as necklaces, bangles, etc. are marketed in Hong Kong,
exported to China, India, Japan, Southeast Asia, the Middle East, Europe,
etc. However, Belgium seems to be the
prime market of the subject. The
significant products of the subject are loose diamond and carat diamonds.
Long time ago, the
subject just exported its products to India only. Now, its products are exported to over ten
countries. Overall business is steady.
The subject has
got the following certifications: GIA, the IGI, and HRD.
In Hong Kong, the
subject has had about 20 employees.
Besides, the subject has set up an office in Shanghai, China in order to
penetrate the China market further. The
Shanghai Office is located at Room A511, China Diamond Exchange Center, 1701
Century Avenue, Pudong, Shanghai.
The subject also
has had associated companies in India and the United Arab Emirates.
Besides, the subject
has set up a factory in Zhuhai Special Economic Zone, China engaged in diamonds
cutting and polishing. The factory has
about 150 employees. Another factory in
Shenzhen Special Economic Zone, China is manufacturing J.C. branded jewellery
for the subject.
The subject is
marketing its own products throughout the world.
Besides the
subject, Mr. Yau Kung Wan is also operating another firm known as Jewellery
Collection Co. which is also a jewellery and diamond trader. This company is located at a different
address.
The principal
shareholder of the subject Bhagat is an Indian who has got close business ties
with some of the diamond manufacturers in India. The subject’s business in Hong Kong is
chiefly handled by Yau.
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 Diamond, Gem & Pearl Show 2014” which will
be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong
during the period of 3rd to 7th March, 2014.
Its booth No. is AWE 2-Q24.
Besides, the
subject has expanded its business by setting up a new firm known as 16
Diamonds.com Ltd. which is a Hong Kong-registered firm engaged in online
jewellery retailing.
The subject has
had two showrooms, one is in its registered address while the other is located
at 16/F., Luk Fook Jewellery Centre, 239 Temple Street, Jordan, Kowloon, Hong
Kong.
A Macau subsidiary
Bei Wah Diamante (Macau) Limitada has been set up in recent years.
Overall business
of the subject is good. According to the
subject, its annual sales turnover is over HK$450 million.
The subject
operates from an office owned by itself.
On the whole,
having a history of over thirteen years and nine months in Hong Kong, the
subject is considered good for normal business engagements.
Property
information of the company:-
Property Location:
Workshop Unit 11 & 12 on 9/F., Heng Ngai Jewelry Centre, 4 Hok Yuen Street
East, Kowloon, Hong Kong.
Owner: China Diamond Corporation Ltd.
Date of
Purchase: n.a.
Purchased
Price: n.a.
Incumbrances:-
|
Date of
Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
28-10-2010 |
- |
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
Legal charge to secure general banking facilities |
(Since 2008)
|
Date |
Particulars |
Amount |
|
16-05-2008 |
Instrument: Mortgage
over Securities and Deposits Property: The Mortgagor, as beneficial owner: (a)
mortgages and agrees to mortgage to the Bank by way of first fixed mortgage
the Mortgagor’s entire right, title and interest in and to the Securities and
the Related Rights; and (b) charges and agrees to charge by way of first
fixed charge the Mortgagor’s entire right, title and interest in and to the
Deposit Mortgagee: CITIC
Ka Wah Bank Ltd., Hong Kong. [Now
known as CITIC Bank International Ltd.] |
As a continuing security for the Secured Liabilities |
|
21-01-2010 |
Instrument: Security
Agreement over Bank Account Property: By way of a first fixed charge all of the
Chargor’s rights in respect of any amount standing to the credit of the
Account from time to time and the debt represented by it Mortgagee: Standard
Chartered Bank (Hong Kong) Ltd., Hong Kong. |
To secure the payment and satisfaction of all present and future
obligations and liabilities |
|
28-10-2010 |
Instrument: Legal
Charge/Mortgage Property: 56/4,978th parts or shares of and in Section
D of Kowloon Marine Lot No. 113 (Workshop Unit 11 & 12 on 9/F. of Heng
Ngai Jewelry Centre, 4 Hok Yuen Street East, Kowloon, Hong Kong.) Mortgagee: Standard
Chartered Bank (Hong Kong) Ltd., Hong Kong. |
To secure the due and punctual payment of the Secured Indebtedness |
|
04-04-2011 |
Instrument: Charge
on Cash Deposit to secure Liabilities of the Depositor Property: 1) By way of first fixed charge
and agreement to charge: the Deposit and all right, title and interest of the
Company 2) By way of set-off: any sum standing to the
credit of any one or more of the accounts of the Company with the Bank Mortgagee: DBS
Bank (Hong Kong) Ltd., Hong Kong. |
All sums of money and liabilities |
|
04-05-2011 |
Instrument: Letter
of Set-off and Appropriation Property: Deal No. Date Amount Due
Date 163097 04-05-2010 HK$2,646,734.84 04-05-2011 Mortgagee: Bank
of India, Hong Kong Branch. |
Advances and other banking facilities |
|
16-05-2011 |
Instrument: Security
Agreement over Securities Property: 1) By way of first fixed
charge: (a) all Specified Securities which are on the date of the Security
Agreement the Chargor’s property; (b) all Specified Securities in which the
Chargor may in the future acquire an interest; (c) all Related Rights of a
capital nature on the date of the Security Agreement; (d) all Related Rights
of an income nature on the date of the Security Agreement; and (e) where
Specified Securities are held in a Relevant System; and 2) By way of assignment, all the Chargor’s
rights, title and interest, present and future, in and to any Specified
Securities and any Related Rights Mortgagee: Standard
Chartered Bank (Hong Kong) Ltd., Hong Kong. |
To secure the payment and satisfaction of all present and future
obligations and liabilities |
|
14-06-2012 |
Instrument: Deposit
Deed Property: By way of a first fixed charge and as a continuing
security for the Obligations, the Company charges and assigns absolutely all
its rights, title to and interest in the Accounts and all Deposits from time
to time in the Accounts and/or comprising the Accounts. Mortgagee: Citibank
N.A., Hong Kong Branch. |
All moneys |
|
17-09-2012 |
Instrument: Trade
Finance Security Assignment Property: The Borrower as beneficial owner: Mortgagee: CITIC
Bank International Ltd., Hong Kong. |
As security for the payment of all Secured Liabilities. |
|
25-09-2013 |
Instrument: Charge
Over Account Property: Each time deposit which is now or at any time
in the future maintained in the name of the chargor with the Bank Mortgagee: China
Construction Bank (Asia) Corporation Ltd., Hong Kong. |
All present and future obligations and liabilities of China Diamond
Corporation Ltd. to the Bank |
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.60.20 |
|
|
1 |
Rs.101.68 |
|
Euro |
1 |
Rs.83.55 |
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.