MIRA INFORM REPORT

 

 

Report Date :

16.05.2014

 

IDENTIFICATION DETAILS

 

Name :

SHINE STONE (HK) LTD.

 

 

Registered Office :

Room 707, 7/F., Heng Ngai Jewelry Centre, 4 Hok Yuen Street, Hunghom, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

19.05.2006

 

 

Com. Reg. No.:

36766082

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products, emerald, precious stones

 

 

No. of Employees :

5

 

 

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

 

Status :

Satisfactory

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

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


Company name

 

SHINE  STONE  (HK)  LTD.

 

 

Company ADDRESS

 

Room 707, 7/F., Heng Ngai Jewelry Centre, 4 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.

 

PHONE:                  852-3521 1444;  2127 4740

 

FAX:                       852-3521 1441;  3747 4694

 

E-MAIL:                  info@shine-stone.net

shinestoneltd@yahoo.com

shinestone@in.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Hitesh Parshotambhai Mangukia

 

 

SUMMARY

 

Incorporated on:             19th May, 2006.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$18,000,000.00

Issued:                          HK$18,000,000.00

 

Business Category:        Diamond Trader.

 

Employees:                   5.

 

Main Dealing Banker:     Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.


Company name  

 

SHINE  STONE  (HK)  LTD.

 

 

Company ADDRESS

 

Registered Head Office:-

Room 707, 7/F., Heng Ngai Jewelry Centre, 4 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.

 

Associated Companies:-

Shamya Exim Ltd., Hong Kong.

Sonal Gems (India), India.

 

 

BUSINESS REGISTRATION NUMBER 

 

36766082

 

 

COMPANY FILE NUMBER 

 

1046366

 

 

MANAGEMENT

 

Managing Director:  Mr. Hitesh Parshotambhai Mangukia

 

 

CAPITAL

 

Nominal Share Capital: HK$18,000,000.00 (Divided into 18,000,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$18,000,000.00

 

 


SHAREHOLDERS

 

(As per registry dated 19-05-2013)

Name

 

No. of shares

Hitesh Parshotambhai MANGUKIA

 

9,100,000

Parita Hitesh MANGUKIYA

 

3,900,000

Chirag Narshihai DHAMELIYA

 

5,000,000

 

 

–––––––––

 

Total:

18,000,000

========

 

 

DIRECTORS

 

(As per registry dated 19-05-2013)

Name

(Nationality)

 

Address

Hitesh Parshotambhai MANGUKIA

Room 707, 7/F., Heng Ngai Jewelry Centre, 4 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.

 

Parita Hitesh MANGUKIYA [Alternate to Hitesh Parshotambhai MANGUKIA]

Room 707, 7/F., Heng Ngai Jewelry Centre, 4 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.

 

 

SECRETARY 

 

(As per registry dated 19-05-2013)

Name

Address

Co. No.

Champion Corporate Ltd.

Unit 907, 9/F., Silvercord Tower 2, 30 Canton Road, Tsimshatsui, Kowloon, Hong Kong.

0657221

 

 

HISTORY

 

The subject was incorporated on 19th May, 2006 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.

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of diamonds and jewellery products, emerald, precious stones, etc.

 

Brand Name:                 Shine Stone.

 

Employees:                   5.

 

Commodities Imported:   India, Belgium, other European countries, etc.

 

Markets:                       Japan, other Asian countries, Middle East, etc.

 

Terms/Sales:                 L/C, T/T, etc.

 

Terms/Buying:               L/C, T/T, D/P, etc.

 

 

MEMBERSHIP

 

Hong Kong Watch Manufacturers Association Ltd., Hong Kong.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$18,000,000.00 (Divided into 18,000,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$18,000,000.00

 

Increases of Nominal Capital:-

From

HK$  1,500,000.00

to

HK$  3,000,000.00

on

16-09-2009

From

HK$  3,000,000.00

to

HK$13,000,000.00

on

16-11-2010

From

HK$13,000,000.00

to

HK$18,000,000.00

on

12-04-2012

 

Alternation of Issued Capital:-

Initially

paid up

HK$  1,500,000.00

16-09-2009

paid up

HK$  1,500,000.00

16-11-2010

paid up

HK$10,000,000.00

12-04-2011

paid up

HK$  5,000,000.00

 

 

––––––––––––––––

Total:

paid up

HK$18,000,000.00

==============

 

Mortgage or Charge:-

Date of Mortgage:  23-09-2009

Amount:            All moneys

Property:           20/4,978th parts or shares of and in Section D of Kowloon Marine Lot No. 113 [Workshop 7 on 7/F. of Heng Ngai Jewelry Centre (formerly known as Regent Centre), 4 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.]

Mortgagee:                    The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Profit or Loss:                Made small profits in past four years.

 

Condition:                      Business is improving.

 

Facilities:                      Adequate for current running.

 

Payment:                      Met obligations as contracted.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:                      Normal.

 

 

GENERAL

 

Having issued 1.5 million ordinary shares of HK$1.00 each, Shine Stone (HK) Ltd. was wholly owned by Mr. Hitesh Parshotambhai Mangukia who was an Indian.  H. P. Mangukia was a Hong Kong ID Card holder and had the right to reside in Hong Kong permanently.  He was also the only director of the subject.  His alternate director, appointed on 16th September, 2009, was Mr. Parita Hitesh Mangukiya.

Formerly the subject was jointly owned by an Indian company, Jay Manav Impex, holding 55% interests; and H. P. Mangukia, holding 45%.  On 30th January, 2009, Jay Manav Impex transferred all its shares to H. P. Mangukia.  Since then, H. P. Mangukia had become the sole owner of the subject.  In September 2009, the subject increased its ordinary shares to 3 million of HK$1.00 each, of which 2.1 million shares were allotted to H. P. Mangukia while the rest 0.9 million shares were allotted to Mr. Parita Hitesh Mangukiya.  After the allotment, H. P. Mangukia held 70% interests of the subject while P. H. Mangukiya held 30%.

In November 2010, the subject increased its ordinary shares to 13 million of HK$1.00 each, of which 9.1 million shares were owned by H. P. Mangukia, accounting for 70% interests, and 3.9 million shares owned by P. H. Mangukiya, accounting for 30%.

In March 2012, an addition of 5 million ordinary shares of HK$1.00 each were issued by the subject of which all were allotted to Mr. Chirag Narshihai Dhameliya who is the incoming shareholder.  Now, the subject is 50.1% held by H. P. Mangukia, 21.7% held by P. H. Mangukiya and 27.8% held by C. N. Dhameliya.

The subject is a diamond importer, exporter and wholesaler.  It is trading in all kinds of loose diamonds, full cut diamonds, single cut diamonds and fancy diamonds.  Some of the real single cut and full cut diamonds are for watches.  The size of full cut and single cut diamond ranges from 0.7 mm to 1.8 mm, colours include white, Ow, TTLB, TTLC, black, etc.

The other main products of the subject are the following watches:-

Diamond Analog Watch;

Ladies’ Diamond Watch.

Most of its products bear the brand name Shine Stone.  Products are marketed in Hong Kong and China, and exported to Taiwan, Japan, other Asian countries, Europe, the United States, etc.

The subject is a subsidiary company of Sonal Gems (India) [Sonal Gems] which is an India-based firm specialized in single cut and full cut diamonds for jewellery and watches.  Sonal Gems is in Mumbai, India.  This firm is a member of the Sonal Group of Companies in India.

The subject also trades in wristwatches for ladies and men.  Most of the commodities are imported from India and Europe.  Prime markets are Hong Kong, Japan and the other Asian countries.

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 2012” which had been held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th to 9th March, 2013.

Besides, 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-F22.

The subject also has taken part in Hong Kong Watch & Clock Fair.  It is going to take part in “HKTDC Hong Kong Watch & Clock Fair 2014” which will be held in the same Centre in Hong Kong during the period of 3rd to 7th September, 2014.  Its booth No. is 1E-A41.

The subject’s business is chiefly handled by the shareholders themselves.  History of the subject is over seven years in Hong Kong.  Overall business is active.

The subject owns certain premises in Hong Kong.

On the whole, consider it good for normal business engagements.

 

 

REMARK

 

Property information of the company:-

Property Location:          Workshop 7 on 7/F., Heng Ngai Jewelry Centre,
4 Hok Yuen Street East, Kowloon, Hong Kong.

Owner:  Shine Stone (HK) Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

23-09-2009

-

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Mortgage to secure general banking facilities

 


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.59.47

UK Pound

1

Rs.99.70

Euro

1

Rs.81.55

 

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.