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Report Date : |
11.09.2014 |
IDENTIFICATION DETAILS
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Name : |
SUNRISE DIAMONDS LTD. |
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Registered Office : |
Unit 1, 14/F., |
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Country : |
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Date of Incorporation : |
25.02.2004 |
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Com. Reg. No.: |
34310748 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
· Importer, exporter and wholesaler of all kinds of diamonds. Subject exports it’s Finished Products such as Polished Diamonds, Carat Size
Diamonds and Loose Diamonds to Japan, Southeast Asia, Europe, the Middle
East, North and South America. |
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No. of Employees : |
12 |
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 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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
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Source
: CIA |
SUNRISE DIAMONDS LTD.
ADDRESS: Unit 1, 14/F., Peninsula Square, East Wing, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2723 5100
FAX: 852-2314 9100
E-MAIL: sunrise@hknet.com
Managing Director: Mr. Ritesh Ashok Mehta
Incorporated on: 25th February, 2004.
Organization: Private Limited Company.
Capital: Nominal:HK$15,600,000.00
Issued: HK$15,600,000.00
Business Category: Diamond Trader.
Employees: 12.
Main Dealing Banker: ABN AMRO Bank N.V., Hong Kong Branch.
Banking Relation: Satisfactory.
Registered Head
Office:-
Unit 1, 14/F., Peninsula Square, East Wing, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.
Holding Company:-
Famous Link Investment Ltd., Hong Kong.
Associated
Companies:-
Angel Jewellery Pvt. Ltd., India.
Atit Diamond Corporation, US.
Shainjdiam BVBA, Belgium.
Shairu Gems Diamonds Pvt. Ltd., India.
Shairu Gems Pvt. Ltd., India.
Shairu Gems, India.
34310748
0884758
Managing Director: Mr. Ritesh Ashok Mehta (Mobile: 852-6401 3416)
Nominal Share Capital: HK$15,600,000.00 (Divided into 1,560,000 shares of HK$10.00 each)
Issued Share Capital: HK$15,600,000.00
(As per registry
dated 25-02-2014)
|
Name |
|
No. of shares |
|
Ritesh Ashok MEHTA |
|
764,400 |
|
Famous Link Investment Ltd., Hong Kong. |
|
795,600 |
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|
–––––––– |
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Total: |
1,560,000 ======= |
(As per registry
dated 25-02-2014)
|
Name (Nationality) |
Address |
|
Ritesh Ashok MEHTA |
Flat K, 5/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon, Hong Kong. |
(As per registry
dated 25-02-2014)
|
Name |
Address |
Co. No. |
|
Taxbase Consultants Ltd. |
Room 1408, 14/F., Hollywood Plaza, 610 Nathan Road, Kowloon, Hong Kong. |
0411324 |
The subject was incorporated on 25th February, 2004 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.
Employees: 12.
Commodities Imported: India, other European countries.
Markets: Japan, Southeast Asia, Europe, Middle East, North and South America, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$15,600,000.00 (Divided into 1,560,000 shares of HK$10.00 each)
Issued Share Capital: HK$15,600,000.00
Increase of
Nominal Capital:-
|
From |
HK$10,000.00 |
to |
HK$15,600,000.00 |
on |
16-09-2008 |
Alternation of
Issued Capital:-
|
25-02-2004 |
paid up |
HK$ 100.00 |
|
16-09-2008 |
paid up |
HK$15,599,900.00 |
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|
|
–––––––––––––––– |
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Total: |
paid up |
HK$15,600,000.00 ============== |
Mortgage or Charge: (See attachment)
Profit & Loss: Making a small profit every year.
Condition: Keeping in a satisfactory manner.
Facilities: Making active use of general banking facilities.
Payment: Met as required.
Commercial Morality: Satisfactory.
Bankers:-
· ABN AMRO Bank N.V., Hong Kong Branch.
Antwerpse Diamant Bank
NV (also known as Antwerp Diamond Bank NV), Hong Kong Branch.
Standing: Good.
Having issued 1,560,000 ordinary shares of HK$10.00 each, formerly Sunrise Diamonds Ltd. was wholly owned by Mr. Ritesh Ashok Mehta who was an Indian. Now, the subject is jointly owned by Ritesh Ashok Mehta, holding 49% interests, and Famous Link Investment Ltd., a Hong Kong-registered company holding 51%.
Ritesh Ashok Mehta is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently. He is also the only director of the subject.
The subject is a diamond importer, exporter and wholesaler. Raw materials are imported from India, Belgium and other European countries. Finished products (polished diamonds, carat size diamonds and loose diamonds) are exported to Japan, Southeast Asia, Europe, the Middle East, North and South America.
According to the subject, its associated factory was established in 1965 in India. The India factory is a pioneer in manufacturing of cut and polished diamonds. Its product ranges from loose (0.01 pts to 5.00 cts up) and carrying GIA Dossiers & Certificate (0.30 pts to 5.00 cts up).
The subject has developed close business ties with those diamond firms in Belgium and India.
In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Hong Kong and other foreign countries or large cities such as Macao, Vietnam, etc. The significant one taken part is Hong Kong International Jewellery Show which is held in Hong Kong annually. Besides, the subject also sells its products online. Business is rather active.
The subject belongs to Shairu Gems Group which was established in 1976. The Shairu Gems Group is a leading polished diamond supplier headquartered in Mumbai, India with manufacturing operations centrally located in Surat, India. The Group employs more than 2,000 employees throughout the world. Its prime markets are America and Europe, as well the fastest growing regions of India and the other Asian countries.
The subject’s business is chiefly handled by Mr. Ritesh Ashok Mehta.
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 Diamond, Gem & Pearl Show 2014” which had been held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 3rd to 7th March, 2014. It is going to take part in the same Show 2015 which will be held in the same Centre in March 2015.
It operates from a self-owned premises located at the present address. History in Hong Kong is over ten years.
On the whole, consider the subject good for normal business engagements.
1. Property information of the company:-
Property Location:Unit 1 on 14/F., East Wing, Peninsula Square, 18 Sung On Street, Kowloon, Hong Kong.
Owner: Sunrise Diamonds Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
02-10-2007 |
- |
ABN AMRO Bank N.V., Hong Kong Branch. |
Mortgage to secure general banking facilities |
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29-11-2013 |
- |
Hang Seng Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
2. Property Location:
Unit 2, 14/F, East Wing, Peninsula Square, 18 Sung On Street, Kowloon, Hong Kong
Owner: Sunrise Diamonds Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
29-11-2013 |
- |
Hang Seng Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
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Date |
Particulars |
Amount |
|
24-01-2006 |
Instrument: Debenture Property: All the Company’s undertaking and property and assets Mortgagee: ABN AMRO Bank N.V., Hong Kong Branch. |
General banking facilities |
|
29-11-2013 |
Instrument: Mortgage Property: All those 2,290/588, 444 parts or shares of and in Kowloon Inland Lot No. 10985 (Unit 1, 14/F, East Wing, Peninsula Square, 18 Sung On Street, Kowloon, Hong Kong.) Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
All money, obligations and liabilities |
|
29-11-2013 |
Instrument: Mortgage Property: 1,260/588, 444parts or shares of and in Kowloon Inland Lot No. 10985 (Unit 2, 14/F, East Wing, Peninsula Square, 18 Sung On Street, Kowloon, Hong Kong.) Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
All money, obligations and liabilities |
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.60.83 |
|
|
1 |
Rs.98.15 |
|
Euro |
1 |
Rs.78.65 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
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 |
|
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 |
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<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.