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Report No. : |
315018 |
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Report Date : |
08.04.2015 |
IDENTIFICATION DETAILS
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Name : |
DHANERA DIAMONDS LTD. |
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Registered Office : |
Unit D2, 12/F., Winner Building, 36 Man Yue Street, Hunghom, Kowloon |
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Country : |
Hongkong |
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Date of Incorporation : |
26.08.2010 |
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Com. Reg. No.: |
52858271 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of Polished and Cut Diamonds. |
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No. of Employees : |
2 |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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Hongkong |
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 |
HONGKONG - 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 |
(Long time ago located at:
C/o Pan Pacific Consultants Ltd. Room 1207, Wing Tuck Commercial Centre,
177-183 Wing Lok Street, Sheung Wan, Hong Kong.)
DHANERA DIAMONDS
LTD.
ADDRESS: Unit
D2, 12/F., Winner Building, 36 Man Yue Street, Hunghom, Kowloon,
Hong Kong.
PHONE: 852-9825
9099
FAX: 852-2721
8550
Managing Director:
Mr. Sunny Arvindlal Shah
Incorporated on: 26th August, 2010.
Organization: Private Limited Company.
Issued Share Capital: HK$300,000.00
Business Category: Diamond
Trader.
Employee: 2.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Unit D2, 12/F., Winner Building, 36 Man Yue Street,
Hunghom, Kowloon, Hong Kong.
Associated Company:-
Dhanera Diamonds, India.
52858271
1497611
Managing Director:
Mr. Sunny Arvindlal Shah
(Hong Kong Mobile Phone No.: 852-9825
9099)
HK$300,000.00
(As per registry
dated 26-08-2014)
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Name |
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No. of shares |
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Sunny Arvindlal SHAH |
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300,000 ====== |
(As per registry
dated 26-08-2014)
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Name (Nationality) |
Address |
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Sunny Arvindlal SHAH |
707 Royal Palace, Opp. Agarwal Samaj, Ghod Dod Road,
Surat-Gujarat 395007, India. |
(As per registry dated
26-08-2014)
|
Name |
Address |
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Bayani Divino Bautista PONCE |
Unit 324, 3/F., Hankow Centre, 5-15 Hankow Road,
Tsimshatsui, Kowloon, Hong Kong. |
The subject was incorporated
on 26th August, 2010 as a private limited liability company under the Hong Kong
Companies Ordinance.
Formerly the subject
was located at Room 1207, Wing Tuck Commercial Centre, 177-183 Wing Lok Street,
Sheung Wan, Hong Kong where was the operating office of a commercial service
provider Pan Pacific Consultants Ltd. It
moved to 16/F., Windsor Mansion, 29‑31 Chatham Road, Tsim Sha Tsui,
Kowloon, Hong Kong in January 2011, and further moved to the present address in
June 2011.
Apart from these,
neither material change nor amendment has been ever traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: Polished
and cut diamonds
Employee: 2.
Commodities Imported: India,
other Asian countries, etc.
Markets: Hong
Kong, other Asian countries, Europe, etc.
Terms/Sales: COD or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Issued Share Capital: HK$300,000.00
Profit or Loss: Made
very small profits in past three years.
Condition: Business
is normal.
Facilities: Making
rather active use of general banking facilities.
Payment: Met trade commitments as
contracted.
Commercial Morality:
Satisfactory.
Banker: The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Having issued 300,000
ordinary shares of HK$1.00 each, Dhanera Diamonds Ltd. is wholly owned by Sunny
Arvindlal Shah who is an Indian. He is
an India passport holder and does not have the right to reside in Hong Kong permanently. He is also the only director of the subject
who can be reached at his Hong Kong mobile phone number 852-9825 9099.
The subject’s
registered address is in a residential building located at Unit D2, 12/F.,
Winner Building, 36 Man Yue Street, Hunghom, Kowloon, Hong Kong.
The subject is a
diamond trader. It is a diamond
importer, exporter and wholesaler. It is
trading in loose, polished and cut diamonds.
Most of the commodities are imported from India. Prime markets are Hong Kong, Japan and the
other Asian countries. Business keeps on
improving.
The subject also
trades in the following commodities:-
· Diamond size: 0.01cts-5.00cts,
· Diamond: Colour D- Cape colour,
· Diamond Clarity: IF- I3,
· Diamond Shape: Round, Pear, Princess, Marquese, Bugguette, Oval, Cushion, etc.
The subject has had
an associated company Dhanera Diamonds in India which is operated by the family
of the Shahs.
Dhanera Diamonds is a
partnership firm which was set up by Mr. Arvind Shah, Mr. Vinod Shah, and
Mr. Shailesh Shah in 1991. The firm is
engaged in cutting, polishing and trading in diamonds. The partners have been in the diamond
business for more than two decades. The
firm procures rough diamonds from sightholders in Belgium. The rough diamonds are polished at its factory
in Surat (Gujarat), India.
Dhanera Diamonds is a
diamond manufacturer and DTC sightholder.
It has had affiliated offices in Mumbai of India, Belgium and the United
States. It is an ISO 9001-2000 certified
company.
In India its factory
covers an area of over 250,000 sq.ft. and employs over 6,000 workers. It is able to produce about 500,000 carats of
polished diamond ranging from 0.01 cts to 3.00 cts annually.
Dhanera Diamonds had
achieved GJEPC (Gems and Jewellery Export Promotion Council) 34th - 39th for
consecutive 6 times best exporter awards. It also had held an achievement of
Niryat Shree Award from FIEO (Federation of Indian Exports organization) by
commerce ministry of India for highest growth in diamond industries for
consecutively 7 years from 2005 to 2012.
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 is going to take part in
“HKTDC Hong Kong International Diamond, Gem & Pearl Show 2016” which will
be held in Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the period of 2nd
to 6th March, 2016.
The subject is fully
supported by India Dhanera Diamonds.
As the history of the
subject is over three years and ten month in Hong Kong, on the whole,
consider it good for normal business engagements in small credit amounts for
the time being.
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.62.33 |
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|
1 |
Rs.92.83 |
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Euro |
1 |
Rs.68.08 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
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.