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MIRA
INFORM REPORT
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Report Date : |
16.09.2014 |
IDENTIFICATION DETAILS
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Name : |
BFE DIAMONDS (HK)
LTD. |
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Registered Office : |
Unit C, 7/F., |
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Country : |
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Date of Incorporation : |
12.03.2012 |
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Com. Reg. No.: |
59513026 |
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Legal Form : |
Private Limited
Company |
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LINE OF BUSINESS : |
DIAMOND TRADER OF ALL KINDS OF
DIAMONDS |
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No. of Employees |
3 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Business is Under Development |
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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
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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Hong Kong |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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.
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Source
: CIA |
Company name and address
BFE DIAMONDS (HK) LTD.
ADDRESS:
Unit C, 7/F., Eton
Building, 288 Des Voeux Road Central, Hong Kong.
PHONE: 852-2187
2371
FAX: 852-2187
2372
E-MAIL: Anthony@bfediamonds.com.hk
MANAGEMENT
Managing
Director: Mr. Philippe Hrand Carlo Georges Antoine Barsamian
SUMMARY
Incorporated
on: 12th
March, 2012.
Organization: Private
Limited Company.
Paid Up Capital: HK$780.00
Business Category: Diamond Trader.
Employees: 3.
Main Dealing
Banker: The Hongkong & Shanghai
Banking Corp. Ltd., Hong Kong.
Banking
Relation: Satisfactory.
Company name and address
BFE DIAMONDS (HK) LTD.
ADDRESS:
Registered Office:-
c/o Hopwell
Secretarial Services Ltd.
Room 6, 10/F., Manley
Commercial Building, 367-375 Queen’s Road Central, Sheung Wan, Hong Kong.
Head Office:-
Unit C, 7/F., Eton
Building, 288 Des Voeux Road Central, Hong Kong.
Holding Company:-
Cenjal Holding
S.A., Switzerland.
Associated Companies:-
Barsamian Diamonds
NV, Belgium.
Barsamian Diamonds
SA, Belgium.
BUSINESS REGISTRATION NUMBER
59513026
COMPANY FILE NUMBER
1715861
MANAGEMENT
Managing
Director: Mr. Philippe Hrand Carlo
Georges Antoine Barsamian
PAID UP CAPITAL
HK$780.00
SHAREHOLDER
(As per registry
dated 12-03-2014)
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Name |
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No. of shares |
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Cenjal Holding
S.A. Rue du Mont-Blanc
7, 1201 Geneva, Switzerland. |
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780 === |
DIRECTOR
(As per registry
dated 12-03-2014)
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Name (Nationality) |
Address |
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Philippe Hrand Carlo
Georges Antoine BARSAMIAN |
Rue des Templiers
42, 1301 Bierges, Belgium. |
SECRETARY
(As per registry
dated 12-03-2014)
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Name |
Address |
Co. No. |
|
Hopwell
Secretarial Services Ltd. |
Room 6, 10/F., Manley
Commercial Building, 367-375 Queen’s Road Central, Sheung Wan, Hong Kong. |
0251778 |
HISTORY
The subject was
incorporated on 12th March, 2012 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 Trader.
Lines: All kinds of
diamonds.
Employees: 3.
Commodities
Imported: Belgium, India, etc.
Markets: Hong
Kong, Asian countries, etc.
Terms/Sales: As
per contracted.
Terms/Buying: Various
terms.
MEMBERSHIP
The
Belgium-Luxembourg Chamber of Commerce in Hong Kong.
FINANCIAL INFORMATION
Paid Up Capital: HK$780.00
Profit or Loss: Too early to offer an opinion.
Condition: Business is under
development.
Facilities: Making fairly active use
of general banking facilities.
Payment: Met
trade commitments as required.
Commercial
Morality: Satisfactory
Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
GENERAL
Having issued 780
ordinary shares of HK$1.00 each, BFE Diamonds (HK) Ltd. is wholly owned by
Cenjal Holding S.A. which is a Switzerland-based company.
The director of the
subject Philippe Hrand Carlo Georges Antoine Barsamian is a Belgium passport
holder.
The subject is a
diamond trader. Its main associated
company is Barsamian Diamonds NV [Barsamian] which is a Belgium-based company.
Barsamian is an
independent, family owned company, located in the heart of the Diamond District
in Antwerp of Belgium.
Its main activity
is the wholesale of polished diamonds.
It is also involved in polishing rough diamonds and re-polishing of
diamonds, including old or damaged diamonds.
Barsamian’s product
range includes rounds in all sizes, diamonds in every type of cut and coloured
diamonds. The diamonds can be delivered
with a certificate issued by HRD, GIA or other renowned laboratory.
Barsamian is also
able to supply a wide range of fancy cut diamonds, in all sizes.
The subject is the
foothold for Barsamian to penetrate the Asian Pacific market. Prime markets are Hong Kong, China, Japan,
the other Asian countries, etc.
The history of the
subject in Hong Kong is just over two years and six months.
On the whole, since
the history of the subject is short in Hong Kong, consider it good for normal
credit requirements on L/C basis or in very small credit amounts.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.99 |
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UK Pound |
1 |
Rs.99.10 |
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Euro |
1 |
Rs.79.03 |
INFORMATION DETAILS
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Analysis Done by
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RAS |
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Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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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.