|
Report Date : |
30.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
JEDI DIA. TRADING LTD. |
|
|
|
|
Registered Office : |
Unit 911, 9/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon |
|
|
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|
Country : |
Hong Kong |
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Date of Incorporation : |
12.06.2006 |
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|
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Com. Reg. No.: |
36842173 |
|
|
|
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Legal Form : |
Private Limited Company |
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|
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Line of Business : |
engaged in manufacturing loose diamonds like marquise,
pears, tappers, buggets and rose cut diamonds range from 0.005 cts to 1 cts |
|
|
|
|
No. of Employees : |
03 |
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 |
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|
|
|
Payment Behaviour : |
No complaints |
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|
|
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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) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
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 |
JEDI DIA. TRADING
LTD.
ADDRESS: Unit 911, 9/F., Peninsula square,
18 Sung On Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-3525 0287
FAX: 852-3525 0286,
3825 0286
Managing Director: Mr. Devang
Sevantilal Shah
Incorporated on: 12th June, 2006.
Organization: Private Limited Company.
Capital: Nominal: HK$3,000,000.00
Issued: HK$3,000,000.00
Business Category: Diamond
Trader.
Employees: 3.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Unit 911, 9/F., Peninsula square, 18 Sung On Street, Hunghom, Kowloon,
Hong Kong.
Affiliated
Company:-
SG Trading Co., Hong Kong.
[Business ceased]
36842173
1051596
Managing Director: Mr. Devang
Sevantilal Shah
Mobile Phone No.: 852-852-9099 7486
Director & Contact Person:
Mr. Darpil Narendra Shah
Mobile Phone No.: 852-9748 6804
Nominal Share Capital: HK$3,000,000.00
(Divided into 3,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$3,000,000.00
(As per registry dated 12-06-2013)
|
Name |
|
No. of shares |
|
Devang Sevantilal SHAH |
|
750,000 |
|
Jagruti Devang SHAH |
|
750,000 |
|
Darpil Narendra SHAH |
|
1,500,000 |
|
|
|
–––––––– |
|
|
Total: |
3,000,000 ======= |
(As per registry dated 12-06-2013)
|
Name (Nationality) |
Address |
|
Devang Sevantilal SHAH |
Flat B-1, 13/F., Burlington House, 92 Nathan Road, Tsimshatsui, Kowloon,
Hong Kong. |
|
Jagruti Devang SHAH |
Flat B-1, 13/F., Burlington House, 92 Nathan Road, Tsimshatsui,
Kowloon, Hong Kong. |
(As per registry dated 12-06-2013)
|
Name |
Address |
Co. No. |
|
Taxbase Consultants Ltd. |
Room 1426, 14/F., Hollywood Plaza, 610 Nathan Road, Mongkok, Kowloon,
Hong Kong. |
0411324 |
The subject was incorporated on 12th June, 2006 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Flat 1, 9/F., Block B, Burlington
House, 92-94C Nathan Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat 1,
13/F., Block B of the same building in June 2010, to Room 1507, 15/F.,
Multifield Plaza, 3-7A Prat Avenue, Tsimshatsui, Kowloon, Hong Kong with effect
from 19th July, 2010; moved to Suite B & C, 5/F., Cameron Plaza, 23‑25A
Cameron Road, Tsimshatsui, Kowloon, Hong Kong in late 2011 and further to the
present address in late 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, emerald, precious stones
Employees: 3.
Commodities Imported: India, Belgium,
other European and Asian countries
Markets: Japan,
Taiwan, India, other Asian countries, Middle East, Europe
Terms/Sales: L/C, T/T
Terms/Buying: L/C, T/T, D/P
Nominal Share Capital: HK$3,000,000.00
(Divided into 3,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$3,000,000.00
Alternation of Capital:-
|
12-06-2006 |
paid up |
HK$ 4.00 |
|
10-02-2012 |
paid up |
HK$ 2,999,996.00 |
|
|
|
––––––––––––––– |
|
Total: |
paid up |
HK$ 3,000,000.00 ============== |
Increase of Nominal Capital:-
|
From |
HK$10,000.00 |
to |
HK$3,000,000.00 |
on |
10-02-2012 |
Mortgage or Charge: (See attachment)
Profit or Loss: Making
small profits in the past years.
Condition: Keeping in a normal manner.
Facilities: Making rather active use of
general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Normal.
Jedi Dia. Trading Ltd. is jointly owned by three Indian, namely, Mr. Devang Sevantilal Shah, holding 25% interests; Mr. Jagruti Devang Shah, also holding 25%; and Mr. Darpil Narendra Shah, holding 50%. They are all India merchants.
The subject has
increased its issued share capital from HK$4.00 to HK$3 million. However, the equities of the shareholders
remain unchanged.
The subject moved
to the present address in late 2013.
Devang Sevantilal
Shah and Jagruti Devang Shah are Hong Kong ID Card holders and have got the
right to reside in Hong Kong permanently.
D. S. Shah can be reached at his Hong Kong mobile phone number 852-9099
7486 while D. N. Shah can be reached at his
Hong Kong mobile phone number 852-9748 6804. The two Shahs are also directors of the
subject.
The subject is a
diamond importer, exporter and wholesaler.
It is engaged in manufacturing loose diamonds like marquise, pears,
tappers, buggets and rose cut diamonds range from 0.005 cts to 1 cts. Some of the diamonds are over 1 cts. Commodities are chiefly imported from India,
Belgium, other European and Asian countries.
After processing in Hong Kong or China, finished products are exported
to Japan, Taiwan, India, other Asian countries, the Middle East, Europe,
etc. Business keeps on improving.
D. S. Shah was
also a partner of a partnership SG Trading Co. which was located at a different
address. However, SG Trading Co. has
ceased business since 15th January, 2007.
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 1-A55.
The subject’s
business is chiefly handled by D. S. Shah and J. D. Shah. The subject is a business of the Shah
family. Contact person is Mr. Darpil
Narendra Shah.
The history of the
subject in Hong Kong is over seven years and eight months.
On the whole,
consider it good for normal business engagements.
|
Date |
Particulars |
Amount |
|
16-08-2010 |
Instrument: Assignment of Receivables – General
with Notice of Assignment Property: In consideration of the Banking Facilities, the Customer, as
beneficial owner and by way of security for the payment of the Secured
Monies, hereby assigns, and agrees to assign, to the Bank the Receivables
until all the Secured Monies have been paid or discharged Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
To secure all monies in respect of banking facilities |
|
10-08-2012 |
Instrument: Mortgage Property: 926/588,444th parts or shares of and in Kowloon Inland Lot No. 10985 (
Unit 11 on 9/F. of West Wing Peninsula Square, 18 Sung On Street, Kowloon,
Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
To secure general banking facilities |
|
21-03-2012 |
Instrument: Assignment of Life Insurance Property: (i) all the Assignor’s claims, options, privileges, right , title,
interest and benefit in and under the Insurance; and (ii) all the Assignor’s claims
and rights against the issuer of the Policy. Insurance Policy Number: 28004616-50 Name of Insurance Company: HSBC Life (International) Ltd. Name of the Insured: Devang Sevantilal Shah Assignor/Policy Owner: Jedi Dia Trading Ltd. Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
(i) all and any monies and liabilities in any currency whenever and
however incurred, owing by the Assignor to the Bank, including amounts
payable by the Assignor under this Deed; (ii) interest on such monies;
(iii) all monies paid by the Bank in respect of the Policy pursuant to the
terms of this Deed; and (iv) all expenses of the Bank in perfecting or
enforcing this Deed |
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.
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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.
-
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.58.84 |
|
|
1 |
Rs.98.41 |
|
Euro |
1 |
Rs.80.03 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
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.