MIRA INFORM REPORT

 

 

Report Date :

13.10.2014

 

IDENTIFICATION DETAILS

 

Name :

TAI  SHAN  GEMS  LTD.

 

 

Registered Office :

Room 403-404, 4/F., Harbour Centre, Tower 2, 8 Hok Cheung Street, Hunghom, Kowloon,

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

21.06.2010

 

 

Com. Reg. No.:

52629533

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is a diamond and jewellery trader of all kinds of diamond and jewellery

 

 

No. of Employees :

18

 

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 – 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

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

 


Company name and address

 

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

 

 

MANAGEMENT

 

Managing Director:  Mr. Nirav Dilipkumar Shah

 

 

SUMMARY

 

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.


 

ADDRESS

 

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.


 

BUSINESS REGISTRATION NUMBER

 

52629533

 

 

COMPANY FILE NUMBER

 

1470843

 

 

MANAGEMENT

 

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)

Name

 

No. of shares

Rosy Blue (India) Private Ltd.

1608-1609 Prasad Chambers, Opera House, Mumbai 400 004, India.

 

8,190,001

=======

 

DIRECTORS:    (As per registry dated 21-06-2014)

Name

(Nationality)

 

Address

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

 

 

HISTORY

 

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.

 

 

OPERATIONS

 

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.

 

 

FINANCIAL INFORMATION

 

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.

 

 

GENERAL

 

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

 

-            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.61.16

UK Pound

1

Rs.98.62

Euro

1

Rs.77.67

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

NIS

 

               

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.