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Report Date : |
13.10.2014 |
IDENTIFICATION DETAILS
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Name : |
TAI SHAN GEMS LTD. |
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Registered Office : |
Room 403-404, 4/F., Harbour Centre, Tower 2, 8 Hok Cheung Street, Hunghom, Kowloon, |
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Country : |
Hong Kong |
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Date of Incorporation : |
21.06.2010 |
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Com. Reg. No.: |
52629533 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is a diamond and jewellery trader of all kinds of diamond and jewellery |
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No. of Employees : |
18 |
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 – 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 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
TAI SHAN
GEMS LTD.
ADDRESS: Room 403-404, 4/F., Harbour Centre, Tower 2, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2523 9475
FAX: 852-2845 0940, 2523 9030
Managing Director: Mr. Nirav Dilipkumar Shah
Incorporated on: 21st June, 2010.
Organization: Private Limited Company.
Paid Up Capital: HK$8,190,001.00
Business Category: Diamond and Jewellery Trader.
Employees: 18. (Including associates)
Main Dealing Banker: ABN AMRO Bank N.V., Hong Kong Branch.
Banking Relation: Satisfactory.
Registered Head Office:-
Room 403-404, 4/F., Harbour Centre, Tower 2, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong..
Holding Company:-
Rosy Blue (India) Private Ltd., India.
Associated/Affiliated Companies:-
Rosy Blue Group of
Companies
Diamotech CJSC, Armenia.
Inter Gold Europe N.V., Belgium.
Inter Gold Gems Pvt. Ltd., India.
Inter Gold India Pvt. Ltd., India.
International Gold Co. Pvt. Ltd., India.
Jewel-Asia Ltd., Hong Kong.
Lanka Diamond Polishing Ltd., Sri Lanka.
Linyi Rosy Blue Huaxing (D & J) Co. Ltd., China.
MZF Jewelry Co. BVBA, Belgium.
R.B. Diamantslijperij BVBA, Belgium.
R.B. Solitaires Inc., USA.
RB Centro Inc., USA.
Rosy Blue (Eurasia) FZE, UAE.
Rosy Blue (India) Pvt. Ltd., India.
Rosy Blue (Shanghai) Diamond Co. Ltd., China.
Rosy Blue Diamond Co. Ltd., Thailand.
Rosy Blue Diamonds Johannesburg (Pty) Ltd., South Africa.
Rosy Blue DMCC, UAE.
Rosy Blue Enterprises SA, Luxembourg.
Rosy Blue Excellent LLC, Russian Federation.
Rosy Blue Fine Inc., USA.
Rosy Blue Hong Kong Ltd., Hong Kong. (Same address)
Rosy Blue Inc., USA.
Rosy Blue Jewellery (HK) Ltd., Hong Kong.
Rosy Blue Jewelry Inc., USA.
Rosy Blue Ltd., Japan.
Rosy Blue N.V., Belgium.
Rosy Blue NV (RBIN-036BE) Tier A, Belgium.
Rosy Blue Overseas Holdings Ltd., Hong Kong.
Rosy Blue Sales Ltd., Israel.
Rosy Blue Services NV, Belgium.
Rosy Blue Trading (Pty) Ltd., South Africa.
Rosy Blue Trading Inc., USA.
Rosy Blue Trading LLC, UAE.
Step Stones Ltd., Thailand.
etc.
52629533
1470843
Managing Director: Mr. Nirav Dilipkumar Shah
Contact Person: Ms. Jones Woo
PAID UP CAPITAL: HK$8,190,001.00
SHAREHOLDER: (As per registry dated 21-06-2014)
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Name |
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No. of shares |
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Rosy Blue (India) Private Ltd. 1608-1609 Prasad Chambers, Opera House, Mumbai 400 004, India. |
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8,190,001 ======= |
DIRECTORS: (As per registry dated 21-06-2014)
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Name (Nationality) |
Address |
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Naitik Mukesh SHAH |
Flat C, 5/F., Winston Mansion, 121 Chatham Road, Tsimshatsui, Kowloon, Hong Kong. |
|
Nirav Dilipkumar SHAH |
Flat B, 9/F., Gloden House, 1 Austin Avenue, Tsimshatsui, Kowloon, Hong Kong. |
SECRETARY: (As per registry dated 21-06-2014)
|
Name |
Address |
Co. No. |
|
TMF Secretaries (HK) Ltd. |
36/F., Tower Two, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong. |
0099444 |
The subject was incorporated on 21st June, 201021st June, 2010 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.
Activities: Diamond and Jewellery Trader.
Lines: All kinds of diamond and jewellery.
Employees: 18. (Including associates)
Commodities Imported: Imported from Belgium, India, Israel, US, Thailand, etc.
Markets: Japan, US, Europe, Asian countries, etc.
Terms/Sales: Various terms.
Terms/Buying: L/C, T/T, etc.
Paid Up Capital: HK$8,190,001.00
Indebtedness: US$4,550,000 (Total amount outstanding on all mortgages and charges as per last Annual Return dated 21-06-2014)
Mortgage or Charge:-
Date of Floating Charge Over Assets: 26-08-2013
Amount: All monies, obligations and liabilitiescovenanted to be paid or discharged by the Company in respect of the aggregate of all amounts owing by the Company to the Bank from time to time.
Property: All the Company’s undertaking, property and assets whatsoever and wheresoever both present and future including all book and other debts revenues and claims both present and future due or owing or which may become due or owing to the Company, all its uncalled capital, goodwill and all patents, patent applications, trade marks, trade names, registered designs copyrights and all licences and ancillary and connected rights relating to the intangible property both present and future of the Company.
Mortgagee: ABN AMRO Bank N.V., Hong Kong Branch.
Profit or Loss: Made a small profit in 2013.
Condition: Keeping in an active manner.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: ABN AMRO Bank N.V., Hong Kong Branch.
Standing: Normal.
Having issued 8,190,001 ordinary shares of HK$1.00 each, Ltd. is a wholly-owned subsidiary of Rosy Blue (India) Private Ltd., an India-based company.
The subject shares the same office with its associated company Rosy Blue Hong Kong Ltd. [RBHKL]. The subject and RBHKL belong to the Rosy Blue Group of Companies.
The subject trades in the same commodities as Rosy Blue Group. The directors of the subject are Naitik Mukesh Shah and Nirav Dilipkumar Shah, both are Hong Kong ID holders.
Main products of the subject are the followings: diamond pendants, white gold diamond pendants, white gold diamond ring, 18K gold rings, 18K gold earrings, white gold rings, white gold pendants, gold rings, loose diamonds, carat size diamonds, diamond necklaces and earrings, etc.
Originally Rosy Blue was established in 1960 in Mumbai, India as a diamond manufacturer. It is an Indian firm with corporate headquarters in India. Currently, Rosy Blue is a family-owned company chiefly owned by the members of Mehta and Bhansali families.
As a sightholder and client of the Diamond Trading Company, BHP, Rio Tinto Diamonds and Alrosa, Rosy Blue is a key infrastructure provider to both small and large businesses.
Rosy Blue is one of the renowned diamond and jewellery companies in the world. Founded in 1960, Rosy Blue has grown from a single workshop specialized in polishing small diamonds to a global corporation. In 1973, Rosy Blue opened its new international headquarters in Antwerp, Belgium.
As a family-owned corporation with over 40 years of experience, the skill and knowledge of Rosy Blue have passed from generation to generation, each driven by a passion for innovation and quality.
Rosy Blue has its headquarters in India and Belgium with offices, factories and stores in 13 countries, having about 5,100 direct employees. The significant sales office of Rosy Blue are in Belgium, Israel, the United Arab Emirates, Japan, the United States, South Africa, China, etc.
The main category products of the Rosy Blue Group are:-
Rough Diamonds;
Core Polished Diamonds;
Specialist Polished Diamonds;
Diamond Jewellery; &
Polished Outcome.
Rose Blue’s clients range from the world’s most prestigious brands to small, specialty jewellery houses. It also supplies the leading diamond manufacturers, distributors and retailers in every part of the world with a comprehensive range of diamonds, from the smallest polished stones, to single diamonds of the very highest quality.
The Rosy Blue Group has a significant involvement in jewellery manufacturing and distribution through various operations around the world, including Inter Gold, the Group’s jewellery manufacturing facility and the largest Indian exporter of diamond jewellery. Major customers are diamond brokers, diamond wholesalers and jewellery manufacturers.
As one of India’s largest diamond jewellery company, Rosy Blue supplies quality jewellery to a variety of segments and businesses. Its marketing and distribution network spreads throughout the globe with special expertise in the United States, Europe, Japan, and Asia Pacific; each backed by a local service desk.
The subject is fully supported by Rosy Blue (India) Private Ltd. History in Hong Kong is just over four years and three months.
On the whole, in view of the background of the subject, consider it good for normal business engagements.
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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.16 |
|
|
1 |
Rs.98.62 |
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Euro |
1 |
Rs.77.67 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
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Report Prepared
by : |
NIS |
RATING EXPLANATIONS
|
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.