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Report Date : |
07.05.2014 |
IDENTIFICATION DETAILS
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Name : |
FANCY DIAM
LTD. |
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Registered Office : |
Room 1907, 19/F., Multifield Plaza, 3 Prat Avenue, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
13.06.2006 |
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Com. Reg. No.: |
36851756 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
· importer, exporter and wholesaler of all kinds of fancy colour diamonds and loose diamonds. · Subject is specialized in diamond manufacturing with all natural fancy colour diamonds such as pink, yellow, canary, cap, golden, red, coffey, green, bunt, saffron, orange, gray, chocolate, steel gray, brown, green, L.C, parrot, mix fancy colours & mattel-black with VVS1 clarity to all commercial range. |
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No of Employees : |
04 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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) |
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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 |
FANCY DIAM LTD.
Room 1907, 19/F., Multifield Plaza, 3 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2312 0194, 852-2312 0394
FAX: 852-2312 0294
E-MAIL: fancydiamltd@yahoo.com
Managing Director: Mr. Meenaben Mansukhbhai Zalavadiya
Incorporated on: 13th June, 2006.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10,000.00
Business Category: Diamond Trader.
Employees: 4.
Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 1907, 19/F., Multifield Plaza, 3 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong.
Associated
Companies:-
Fancy Diam Inc., US.
Fancy Jewels B.V.B.A., Belgium.
Fancy Jewels HK, Hong Kong.
Pink Dim Ltd., Israel.
36851756
1052049
Managing Director: Mr. Meenaben Mansukhbhai Zalavadiya
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
(As per registry
dated 13-06-2013)
|
Name |
|
No. of shares |
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Rajeshkumar Mansukhbhai ZALAVADIYA |
|
10,000 ===== |
(As per registry
dated 01-04-2014)
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Name (Nationality) |
Address |
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Rajeshkumar Mansukhbhai ZALAVADIYA |
Flat B, 10/F., On Luen
Building, 7‑11 Kimberly Street, Tsimshatsui, Kowloon, Hong Kong. |
|
Suresh Bahubhai LUNAGARIYA |
Flat B, 10/F., On Luen
Building, 9 Kimberly Street, Tsimshatsui, Kowloon, Hong Kong. |
|
Meenaben Mansukhbhai ZALAVADIYA |
Flat B, 10/F., On Luen
Building, 7‑11 Kimberly Street, Tsimshatsui, Kowloon, Hong Kong. |
(As per registry
dated 13-06-2013)
|
Name |
Address |
|
Bayani Divino Bautista PONCE |
Flat A, 8/F., Tower 5, Caribbean Coast, 2 Kin Tung Road,
Tung Chung, Lantau Island, Hong Kong. |
The subject was incorporated on 13th June, 2006 as a private limited liability company under the Hong Kong Companies Ordinance.
Last time, the subject was located at 4/F., Hai Xin Mansion, 17 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in June 2009.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: all kinds of fancy colour diamonds and loose diamonds.
Employees: 4.
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.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
Mortgage or Charge: (See attachment)
Indebtedness: HK$5,832,680.00
(Total amount outstanding on all mortgages and charges as per last Annual Return dated 13-06-2013)
Profit or Loss: Making a small profit every year.
Condition: Keeping in a satisfactory manner.
Facilities: Making active use of general banking facilities.
Payment: Met as contracted.
Commercial Morality: Satisfactory.
Bankers:-
· Hang Seng Bank Ltd., Hong Kong.
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
Having issued 10,000 ordinary shares of HK$1.00 each, Fancy Diam Ltd. is wholly-owned by Mr. Rajeshkumar Mansukhbhai Zalavadiya who is an Indian. Zalavadiya is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.
The director of the subject was also Mr. Rajeshkumar Mansukhbhai Zalavadiya but he has resigned. Now, he is General Manager of the subject. The managing director of the subject now is Mr. Meenaben Mansukhbhai Zalavadiya. The latter is also a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently. Both Zalavadiyas belong to the same Indian family. R. M. Zalavadiya can be reached at his Hong Kong mobile phone number 852-6621 0801.
A new director Suresh Babubhai Lunagariya who is an Indian was appointed on 1st April, 2014. He can be reached at his Hong Kong mobile phone number 852-9804 7833.
The subject is a diamond importer, exporter and wholesaler. It is trading in all kinds of fancy diamonds and loose diamonds. Raw materials and commodities are imported from India and Belgium.
The subject is a member of the Fancy Diamond Group which is an emerging international conglomerate of dedicated diamantine based in India, Belgium and Hong Kong.
It is specialized in diamond manufacturing with all natural fancy colour diamonds such as pink, yellow, canary, cap, golden, red, coffey, green, bunt, saffron, orange, gray, chocolate, steel gray, brown, green, L.C, parrot, mix fancy colours & mattel-black with VVS1 clarity to all commercial range.
The Group also trades in all cuts like round/brilliant, marquis cut, heart shape, princess cuts, rose cuts, pear shape, oval shape, emerald cuts, cushion cuts, brio late, brown and black beads, black-brown-white necklace, rough diamond beads, etc. Sizes range from 0.005 carat to 2 carat or all special sizes and also particular sizes with colours suitable for traders, retailers, jewellery and watches unites with local and international market.
The subject is famous for its fancy diamonds.
The subject has got an associated company Fancy Jewels B.V.B.A. which is in Antwerp, Belgium. Another associated company of the subject is Pink Dim Ltd. which is in Ramat-Gan, Israel. In recent years, an associated company has been set up in the United States known as Fancy Diam Inc.
Major markets of the Group are the United States, Europe, Japan, Dubai, Israel, Thailand, Australia, Singapore, etc.
The Group has set up two divisions in order to deal with its worldwide customers.
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 took part in “HKTDC Hong Kong International Jewellery Show 2014” which had been held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th to 9th March, 2014. It is going to take part in the same exhibition in the same centre in 2015.
The Group is chiefly controlled by the Zalavadiya family.
The subject operates from a self-owed premises in Hong Kong. Besides, the subject also owns the other premises.
The history of the subject in Hong Kong is over seven years.
On the whole, consider it good for normal business engagements.
REMARKS:
Property
information of the company:-
1. Property Location: Unit 07 on 19/F., Multifield Plaza, 3 Prat Avenue, Kowloon, Hong Kong.
Owner: Fancy Diam Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
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03-07-2008 |
- |
The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong. |
Mortgage to secure general banking facilities |
2. Property Location: 4/F., Hai Xin Mansion, 17 Hart Avenue, Kowloon, Hong Kong.
Owner: Fancy Diam Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
30-04-2007 |
- |
The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong. |
Mortgage to secure general banking facilities |
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Date |
Particulars |
Amount |
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03-07-2008 |
Instrument: Mortgage Property: 44/10,608th parts or shares of and in Section A of Kowloon Inland Lot No. 6455, The Remaining Portion of Kowloon Inland Lot No. 6455, Section A of Kowloon Inland Lot No 6458, The Remaining Portion of Kowloon Inland Lot No 6458, Section A of Kowloon Inland Lot No 6460 and The Remaining Portion of Kowloon Inland Lot No 6460 (Office Unit No. 07 on 19/F. of Multifield Plaza, 3 Prat Avenue, Kowloon, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong. |
To secure all moneys in respect of general banking
facilities |
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29-11-2010 |
Instrument: Mortgage Property: 1/76th parts or shares of and in Kowloon Inland Lots Nos. 6644, 8623 and 8647 (Office C on 6/F., On Luen Building, 7‑11 Kimberley Street, Kowloon, Hong Kong.) Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
All moneys |
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
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.20 |
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|
1 |
Rs.101.68 |
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Euro |
1 |
Rs.83.55 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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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.