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Report Date : |
06.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
V. D. GEMS LTD. |
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Registered Office : |
Unit 608, 6/F., Fu |
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Country : |
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Date of Incorporation : |
20.01.2011 |
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Com. Reg. No.: |
53643437 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trader of Diamond & Gemstone. |
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No of Employees : |
2 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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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 |
V. D. GEMS LTD.
ADDRESS: Unit 608, 6/F., Fu
Hang Industrial Building, 1 Hok Yuen Street, Hung Hom, Kowloon, Hong Kong.
PHONE: 852-2739 9885
FAX: 852-2739 8180
E-MAIL: info@vdgems.com
Managing Director: Mr.
Dharmeshbhai Lavjibhai Vaghani
Incorporated on: 20th January, 2011.
Organization: Private Limited Company.
Capital: Nominal: HK$500,000.00
Issued: HK$500,000.00
Business Category: Diamond
& Gemstone Trader.
Employees: 2.
Main Dealing Banker: Industrial
& Commercial Bank of China (Asia) Ltd., Hong Kong.
Banking Relation: Satisfactory.
V. D. GEMS
LTD.
Registered Head
Office:-
Unit 608, 6/F., Fu Hang Industrial Building, 1 Hok Yuen Street,
Hung Hom, Kowloon, Hong Kong.
Associated
Companies:-
Aashman Gems Inc., US.
Manish Kumar Gems & Jew. LLC, UAE.
V. D. Gems Pvt. Ltd., India.
Vipul Diamonds, India.
53643437
1554319
Managing Director: Mr.
Dharmeshbhai Lavjibhai Vaghani
(Mobile Phone No.: 852-6293 3274, 852-9050 5051)
Nominal Share Capital: HK$500,000.00 (Divided into 500,000 shares of
HK$1.00 each)
Issued Share Capital: HK$500,000.00
(As per registry dated 20-01-2014)
|
Name |
|
No. of shares |
|
Dharmeshbhai Lavjibhai VAGHANI |
|
250,000 |
|
Vimal Amarshibhai VAGHANI |
|
250,000 |
|
|
|
––––––– |
|
|
Total: |
500,000 ====== |
(As per registry dated 20-01-2014)
|
Name (Nationality) |
Address |
|
Dharmeshbhai Lavjibhai VAGHANI |
10/F., 1002 Bhoomi Tower A Wing, Nehru Road, Santacruz East, Mumbai
400055, India. |
|
Vimal Amarshibhai VAGHANI |
1001, Bhoomi Tower, A-Wing Opp. Bank of Baroda, Nehru Road, Santacruz
East, Mumbai 400055 MS, India. |
(As per registry dated 20-05-2014)
|
Name |
Address |
|
Vimal Amarshibhai VAGHANI |
Unit C, 23/F., Tower 1, Laguna Verde, Hunghom, Kowloon, Hong Kong. |
The subject was incorporated on 20th January, 2011 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room A, 3/F., Kok Pah Mansion, 58‑60 Cameron
Road, Tsimshatsui, Kowloon, Hong Kong, moved to 8/F., Tung Wui Commercial
Building, 27 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong with effect from 23rd
May, 2012. It moved to the present
address in mid-2013.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Diamond &
Gemstone Trader.
Lines: All kinds of
diamonds
Employees: 2.
Commodities Imported: India, other
Asian countries, Europe
Markets: Hong Kong,
China, other Asian countries, Europe
Terms/Sales: L/C, Advanced T/T
Terms/Buying: L/C, D/P, O/A
Nominal Share Capital: HK$500,000.00 (Divided into 500,000 shares of
HK$1.00 each)
Issued Share Capital: HK$500,000.00
Increase of Nominal Capital:-
|
From |
HK$250,000.00 |
to |
HK$500,000.00 |
on |
18-70-2013 |
Alternation of Issued Capital:-
|
Initially |
paid up |
HK$250,000.00 |
|
18-07-2013 |
paid up |
HK$250,000.00 |
|
|
|
––––––––––––– |
|
Total: |
paid up |
HK$500,000.00 ============ |
Mortgage or Charge:-
Date of Mortgage: 18-07-2013
Amount: All moneys
Property: 7/3,442nd parts
or shares of and in Section A of Kowloon Marine Lot No. 113 (Unit No. 8 on 6/F.
of Fu Hang Industrial Building, Kowloon, Hong Kong.)
Mortgagee: Industrial &
Commercial Bank of China (Asia) Ltd., Hong Kong.
Profit or Loss: Made a small
profit in 2013.
Condition: Business is
normal.
Facilities: Making rather active
use of general banking facilities.
Payment: Met trade commitments as
contracted.
Commercial Morality:
Satisfactory.
Banker: Industrial &
Commercial Bank of China (Asia) Ltd., Hong Kong.
Standing: Small.
Having issued 500,000 ordinary shares of HK$1.00 each, V. D. Gems Ltd.
is equally owned by Mr. Dharmeshbhai Lavjibhai Vaghani and Vimal Amarshibhai
Vaghani. Both of whom are Indian and
belonging to the same family. They are
India passport holders and do not have the right to reside in Hong Kong
permanently. They are also directors of
the subject.
Formerly the subject had issued just 250,000 ordinary shares of HK$1.00
each, increased to 500,000 ordinary shares of HK$1.00 each in July 2013.
The subject is a diamond trader.
Vaghani can be reached at his Hong Kong mobile phone number 852-6293
3274 or 852-9050 5051 in Hong Kong.
The subject has had an associated company in India known as V. D. Gems
Pvt. Ltd. [V. D. Gems] which is a family business.
V. D. Gems was established in 1980 in Mumbai, India. It has been serving the diamond industry for
30 years and it has established a stable and regular customers locally as well
as globally by providing them with quality diamonds.
It has had Surat, Bhavnagar and Botad Diamond Manufacturing companies in
India.
V. D. Gems is manufacturing wide range of Single Cut
Diamonds, Full Cut Diamonds, Treated
Diamonds, Fancy Cut Diamonds, Princess Cut Diamonds, Diamonds
for watch, Black Diamonds, Fancy Shape Diamonds in all sizes and all colours
(White, next to White, TTLB, TLC and NATTS) in a wide range of prices. It also manufactures Gun Metal/ Black
Diamonds which is used in White Gold and Silver Jewellery. It is also providing Treated Colour Diamonds
in different colours like Red, Yellow, Lemon, Blue, etc. with the help of
Nuclear Technology.
Most of the products bear the trade mark VD.
The subject imports commodities from V. D. Gems. Products are marketed in Hong Kong, China,
North America, Central and South America
Now, V. D. Gems has associated companies in the United States, Dubai,
and India besides the subject in Hong Kong.
The subject’s business is chiefly handled by Vaghani himself. Business keeps on improving.
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 Jewellery Show 2015” which will be
held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during
the period of 5th to 9th March, 2015.
It is also going to take part in “Hong Kong Watch & Clock Fair 2015”
which will be held in the same venue during the period of 4th to 8th September,
2015.
The subject owns the premises located at its operating address in Hong
Kong which have been mortgaged to Industrial & Commercial Bank of China
(Asia) Ltd., Hong Kong, for securing banking facilities.
The history of the subject in Hong Kong is just over three years and
eight months.
On the whole, consider it good for normal business engagements in small
credit amounts.
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.61.75 |
|
|
1 |
Rs.100.07 |
|
Euro |
1 |
Rs.77.95 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
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.