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Report Date : |
15.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
FINE DIAMOND (HK) LTD. |
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|
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Registered Office : |
Unit 1405, 14/F., Peninsula Square, 18 Sung On Street, Hunghom,
Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
19.02.1991 |
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Com. Reg. No.: |
14285783 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Re-Exporter of All Kinds of Diamonds, Jewellery and
Precious Stones. |
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No of Employees : |
4 |
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 |
|
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 |
FINE DIAMOND (HK) LTD.
ADDRESS: Unit
1405, 14/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon,
Hong Kong.
PHONE: 852-2739
1022, 9279 6225
FAX: 852-2311
3810
E-MAIL: fineaj@netvigator.com
MANAGEMENT:
Managing Director: Mr. Alpesh
Shantichand Jhaveri
Incorporated on: 19th February,
1991.
Organization: Private Limited
Company.
Paid Up Capital: HK$8,000,000.00
Business Category: Diamond
Trader.
Employees: 4.
Main Dealing Banker: Standard
Chartered Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Satisfactory.
FINE DIAMOND (HK)
LTD.
Registered Head
Office:-
Unit 1405, 14/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon,
Hong Kong.
14285783
0299955
Managing Director: Mr. Alpesh
Shantichand Jhaveri
[Mobile Phone No.: 852-9279 6225]
Contact Person: Mr. Mohamed Noohu
PAID UP CAPITAL: HK$8,000,000.00
(As per registry dated 19-02-2014)
|
Name |
|
No. of shares |
|
Alpesh Shantichand JHAVERI |
|
680,000 |
|
Poorvi Alpesh JHAVERI |
|
120,000 |
|
|
|
––––––– |
|
|
Total: |
800,000 ====== |
(As per registry dated 19-02-2014)
|
Name (Nationality) |
Address |
|
Alpesh Shantichand JHAVERI |
Flat C, 28/F., Block 9, Parc Palais, King’s Park, 18 Wylie Road,
Kowloon, Hong Kong. |
|
Poorvi Alpesh JHAVERI |
Flat C, 28/F., Block 9, Parc Palais, King’s Park, 18 Wylie Road,
Kowloon, Hong Kong. |
(As per registry dated 19-02-2014)
|
Name |
Address |
Co. No. |
|
Buttar.HK Ltd. |
1/F., Mau Lam Commercial Building, 16-18 Mau Lam Street, Jordan, Kowloon,
Hong Kong. |
0975326 |
The subject was incorporated on 19th February, 1991 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Flat D, 12/F., Cameron Plaza, 23‑25 Cameron
Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in
March 2014.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer and
Re-exporter.
Lines: All kinds of diamonds, jewellery
and precious stones.
Employees: 4.
Commodities Imported: Imported from
Belgium, India
Markets: Southeast Asia,
Europe, US, Middle East
Terms/Sales: L/C or as per
contracted.
Terms/Buying: L/C, T/T, D/P
The Indian Chamber of Commerce Hong Kong, Hong Kong.
Paid Up Capital: HK$8,000,000.00
Mortgage or Charge: (See
attchment)
Profit or Loss: Business is
profitable.
Condition: Keeping in an
active and satisfactory condition.
Facilities: Making active
use of general banking facilities.
Payment: Met trade commitments.
Commercial Morality:
Satisfactory.
Bankers:-
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
The Royal Bank of Scotland N.V., Hong Kong Branch.
Standing: Very good.
Having issued 800,000 ordinary shares of HK$10.00 each, Fine Diamond
(HK) Ltd. is jointly owned by two Indian, Mr. Alpesh Shantichand Jhaveri,
holding 85% interests; and Mr. Poorvi Alpesh Jhaveri, holding 15%. The subject has increased its issued share
capital from HK$3 million to 8 million in recent years.
Believed to be the members of the same family, the two Mr. Jhaveris have
been in Hong Kong for a very long time and each of them has got a
Hong Kong ID Card and has got the right to reside in Hong Kong
permanently.
A S Jhaveri can be reached at his Hong Kong mobile phone number
852-9279 6225.
The subject moved to the present in March 2014.
The subject is trading in loose, polished and cut diamonds, gemstones,
etc. These include carat size diamonds,
fancy diamonds, etc. Commodities, mostly
fancy cut diamonds, are mainly imported from Belgium, Israel and India. However, India is the principal supplying
country. The subject has had a number of
regular suppliers in India.
The subject also trades in the following pearls: Akoya Pearl, South Sea
Pearl, Tahitian Pearl, Black Pearl, etc.
It is specialized in round, princess, tapper, marques, emerald, pear,
heart and single cut loose diamonds. It
is also significant for its gemstones.
Imported products are re-exported to worldwide countries while the prime
markets are the United States, Japan, Southeast Asia, other Asian countries,
the Middle East, Europe, etc. Main
customers are diamond brokers, diamond wholesalers and jewellery
manufacturers. Size of diamonds supplied
range from 0.005 carat to 5.000 carats.
It focuses on I to L, M, N colours including brown as well as treated
colour diamonds. Business has been
active and steady.
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 2014” which had been held in Hong
Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of
16th to 20th February, 2014.
Besides, it is going to take part in “HKTDC Hong Kong International
Diamond, Gem & Pearl Show 2015” which will be held in Hong Kong
AsiaWorld-Expo, Lantau, Hong Kong during the period of 2nd to 6th March, 2015.
The annual sales turnover of the subject is very significant. Business is profitable. Regular customers and suppliers have been
maintained.
The contact person of the subject Mr. Mohamed Noohu is also an Indian.
On the whole, having a history of over twenty-three years and seven
months, the subject is considered good for normal business engagements.
|
Date |
Particulars |
Amount |
|
07-01-2010 |
Instrument: Charge Over Deposits – CD 1 (09a) Property: 1) By fixed Charge: all the Company’s rights in respect of (i)
the sum deposited by the Company; and (ii) all other sums in any currency
from time to time standing to the credit of the Company or the credit of any
other person for the Company’s benefit whether alone or jointly with others,
on any deposit account with the Bank or any other SCB Group Company including
additions to or renewals or replacements of such sum; and all interest from
time to time accruing or payable on the sums specified in (i) and (ii) above; 2) By assignment: all Deposits held with any SCB Group
Company Mortgagee: Standard Chartered Bank (Hong Kong)
Ltd., Hong Kong. |
To secure the payment or discharge of all moneys, obligations and liabilities,
whether actual or contingent at the date of the Charge or at any time after
the date thereof, due, owing or incurred by the Company to Standard Chartered
Bank (Hong Kong) Ltd. |
|
21-10-2013 |
Instrument: Deed of Collateral Assignment of Life Insurance
Policy and Irrevocable Beneficiary Designation Property: The Assignor as beneficial owner assigns absolutely transfers and sets
over to the Assignee and to the successors and assigns of the Assignee, the
Policy together with any supplemental certificates, if any, and all the
Assignor’s present and future claims, options, privileges, rights, title,
interest and benefit in and to the Policy Mortgagee: Standard Chartered Bank
(Hong Kong) Ltd., Hong Kong. |
To secure any and all monies, obligations, facilities and liabilities |
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.
-
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.61.11 |
|
|
1 |
Rs.98.15 |
|
Euro |
1 |
Rs.77.68 |
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.