|
Report Date : |
29.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
SIMPLEX DIAM LTD. |
|
|
|
|
Registered Office : |
Room 1401, 14/F., Nine Queen’s Road Central |
|
|
|
|
Country : |
|
|
|
|
|
Date of Incorporation : |
02.05.2002 |
|
|
|
|
Com. Reg. No.: |
32610085 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and
jewellery products. |
|
|
|
|
No of Employees : |
7 (Including associates) |
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 |
SIMPLEX DIAM
LTD.
ADDRESS: Room 1401, 14/F., Nine
Queen’s Road Central, Hong Kong.
PHONE: 852-2522 6131
FAX: 852-2845 3470
E-MAIL: fairway@simplexdiam.net
President: Mr. Yeung Kwok Hing, Carlos
Incorporated on: 2nd May, 2002.
Organization: Private Limited Company.
Capital: Nominal: HK$23,400,000.00
Issued: HK$23,400,000.00
Business Category: Diamond
Trader.
Employees: 7. (Including associates)
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Room 1401, 14/F., Nine Queen’s Road Central, Hong Kong.
Associated Companies:-
Best Long Diamonds DMCC, UAE.
Bestlong International Trading Ltd., Hong Kong. (Same address)
Cream Jewelry, India.
Fairway Diamond Co. Ltd., Hong Kong. (Same address)
Golawala Diamonds, India.
Ima Gem Jewels, India.
Simplex Diam (Israel) Ltd., Israel.
Simplex Diam NV, Belgium.
Vaishali Diamond Corporation, USA.
Affiliated Company:-
MSY Holdings Corporation, Philippines.
32610085
0796009
President: Mr. Yeung Kwok Hing,
Carlos
Contact Person: Mr. Milan
Amratlal Shah
Nominal Share Capital: HK$23,400,000.00
(Divided into 23,400,000 shares of HK$1.00 each)
Issued Share Capital: HK$23,400,000.00
(As per registry dated 02-05-2014)
|
Name |
|
No. of shares |
|
Milan Amratlal SHAH |
|
11,700,000 |
|
Treasure World Investment Ltd., Hong Kong. |
|
11,700,000 |
|
|
|
––––––––– |
|
|
Total: |
23,400,000 ======== |
(As per registry dated 02-05-2014)
|
Name (Nationality) |
Address |
|
YEUNG Kwok Hing, Carlos |
Flat I, 12/F., Grenville House, 1 Magazine Gap Road, Hong Kong. |
|
Milan Amratlal SHAH |
Flat B, 32/F., Block 5, Parc Palais, 18 Wylie Road, Homantin, Kowloon,
Hong Kong. |
(As per registry dated 02-05-2014)
|
Name |
Address |
|
WONG Suk Han |
Room 1401, 14/F., Nine Queen’s Road Central, Hong Kong. |
The subject was incorporated on 2nd May, 2002 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: Importer,
Exporter and Wholesaler.
Lines: All
kinds of diamonds and jewellery products.
Employees: 7. (Including associates)
Commodities Imported: India,
Belgium, other Asian countries, etc.
Markets: Southeast
Asia, Europe, US, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$23,400,000.00
(Divided into 23,400,000 shares of HK$1.00 each)
Issued Share Capital: HK$23,400,000.00
Profit or Loss: Making
a small profit every year.
Condition: Keeping in an active and
satisfactory condition.
Facilities: Making active use of general
banking facilities.
Payment: Met trade obligations as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Very Good.
Having issued 23.4 million ordinary shares of HK$1.00 each,
Simplex Diam Ltd. formerly was jointly owned by Mr. Milan Amratial Shah,
holding 42.5% interests; Treasure World Investment Ltd. [TWI], also holding
42.5%; and Joystar International Investment Holdings Ltd. [JIIH], 15.0%. On 7th February, 2014 the shares of JIIH was
equally transferred to Milan Amratial Shah and TWI. Now, the subject is equally held by TWI and
Milan Amratial Shah. The latter is an
India merchant. The former is a
Hong Kong-registered firms and located at the operating address of the
subject.
Besides, located at the same address, the subject has got an associated
company Fairway Diamond Co Ltd. [Fairway] which is also a Hong Kong‑registered
firm. Fairway is a member of Diamond
Federation of Hong Kong, China Ltd. which is a Hong Kong-based
organization. Fairway and the subject
are engaged in the same lines of business.
Both firms are diamond traders.
Fairway has been engaged in diamonds trading for a very long time in
Hong Kong.
The president of the subject and Fairway is Mr. Carlos Yeung Kwok Hing
who is a Hong Kong merchant.
The subject has had another associated company Bestlong International
Trading Ltd. [Bestlong] which is also located at the same address. One of the directors of Bestlong is also
Milan Amratlal Shah. Bestlong is also a
diamond and gemstone trader.
The subject is specialised in accurately regulated assortments of stars and
melees, baguettes marquise pears, exceptional diamonds from pointers to large
carat-size, brilliant Russian-cut rounds and a very broad selection of
GIA-certificated stones. Commodities are
imported from India, Belgium and other European countries. Prime markets are Hong Kong, Southeast Asia,
Europe and the United States. Business
is rather active.
The subject has got a number of affiliated companies in Mumbai of India,
Antwerp of Belgium, Israel and New York of the United States.
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, in 2008, it took
part in the Las Vegas Show of the United States.
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.
According to the subject, the management of the subject has been engaged
in diamond trading business for over forty years. It is able to offer customers with all kinds
of diamonds and jewellery products at competitive prices.
The subject’s another associated company Golawala Diamond is an
India-based firm. This company has a
manufacturing plant in Mumbai, India.
Around 150 workers are working and cutting the carat and stones.
Carlos Yeung is also the Vice Chairman of MSY Holdings Corporation [MSY]
which is 100% owned by the Yeung family.
The Chairwoman of MSY Mariquita Salimbangon Yeung is the wife of Carlos
Yeung. MSY is a real estate
developer. The Yeungs had accumulated
quite a substantial amount of land in Cebu, the Philippines.
The subject’s business is chiefly handled by Carlos Yeung and
M. A. Shah.
As the history of the subject is over twelve years and five months in
Hong Kong, on the whole, 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.61.35 |
|
|
1 |
Rs.98.93 |
|
Euro |
1 |
Rs.77.92 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
SMN |
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.