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Report No. : |
317629 |
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Report Date : |
15.04.2015 |
IDENTIFICATION DETAILS
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Name : |
DIAMOND MINE CORPORATION LTD |
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Registered Office : |
Flat C, 13/F., Block 6, Site 11, Bauhinia Mansions, 6 Tak Hong Street, Whampoa Garden, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
02.10.2003 |
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Com. Reg. No.: |
34086862 |
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Legal Form : |
Private Limited Liability Company |
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LINE OF BUSINESS : |
SUBJECT IS IMPORTER, EXPORTER AND WHOLESALER OF ALL KINDS
OF DIAMONDS AND JEWELLERY PRODUCTS, EMERALD, PRECIOUS STONES. |
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No. of Employees : |
1 |
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) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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.
|
Source
: CIA |
DIAMOND MINE CORPORATION LTD.
Flat C, 13/F., Block 6, Site 11, Bauhinia Mansions, 6 Tak Hong Street,
Whampoa Garden, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2739 1460
FAX: 852-2739 9200
E-MAIL: hongkong@sheetalgroup.com
bagagroup@gmail.com
diamondminecorpltd@gmail.com
Managing
Director: Mr. Girish Vasharambhai
Bagadia
Incorporated on: 2nd October, 2003.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10,000.00
Business Category: Importer, Exporter and Wholesaler.
Employee: 1. (Including associate)
Main Dealing Banker: Wing Lung Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
DIAMOND
MINE CORPORATION LTD.
Registered
Head Office:-
Flat C, 13/F.,
Block 6, Site 11, Bauhinia Mansions, 6 Tak Hong Street, Whampoa Garden,
Hunghom, Kowloon, Hong Kong.
Associated
Company:-
Belmark Diam Co.,
Hong Kong. (Same address)
Associated/Affiliated
Companies:-
Sheetal (Far East)
Ltd., Hong Kong.
Sheetal Europe
B.V.B.A., Belgium.
Sheetal
Manufacturing Co. Pvt. Ltd., India.
34086862
0864105
Managing
Director: Mr. Girish Vasharambhai
Bagadia
Nominal Share Capital:
HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share
Capital: HK$10,000.00
(As
per registry dated 02-10-2014)
|
Name |
|
No.
of shares |
|
Shital Girish BAGADIA |
|
10,000 ===== |
(As
per registry dated 02-10-2014)
|
Name (Nationality) |
Address |
|
Girish
Vasharambhai BAGADIA |
Flat C, 13/F., Block 6, Site 11, Bauhinia
Mansions, 6 Tak Hong Street, Whampoa Garden, Hung Hom, Kowloon, Hong Kong. |
|
Shital Girish
BAGADIA |
Flat C, 13/F., Block 6, Site 11, Bauhinia
Mansions, 6 Tak Hong Street, Whampoa Garden, Hung Hom, Kowloon, Hong Kong. |
(As
per registry dated 02-10-2014)
|
Name |
Address |
Co.
No. |
|
Vinford
Ltd. |
Room 1707, 17/F., Wellborne Commercial Centre, |
0346328 |
The
subject was incorporated on 2nd October, 2003 as a private limited liability
company under the Hong Kong Companies Ordinance.
Formerly
the subject was located at Room B-1, 9/F., Kimberley Mansion, 15 Austin
Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to Room 1316, 13/F.,
Peninsula Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong in August
2006; to Flat D, 13/F., Block 13, Site 11, Bauhinia Mansions, 6 Tak Hong
Street, Whampoa Garden, Hunghom, Kowloon, Hong Kong with effect from 27th
February, 2012, and further to the present address in September 2012.
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, emerald, precious stones.
Employee: 1. (Including associate)
Commodities Imported: India, Canada, Russia, Australia, Belgium, other European countries, etc.
Markets: Hong Kong, Japan, other Asian countries, Europe, Middle East, US, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
Alternation of Capital:-
|
02-10-2003 |
paid up |
HK$ 2.00 |
|
17-06-2011 |
paid up |
HK$ 9,998.00 |
|
|
|
––––––––––––– |
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Total: |
paid up |
HK$10,000.00 ============ |
Indebtedness: HK$1,981,328.00 (Total amount outstanding on all mortgages and charges as per last Annual Return dated 02-10-2014)
Mortgage or Charge:-
Date of Mortgage: 12-07-2006
Amount: To secure general banking facilities
Property: 2,290/588,444th parts or shares of and in Kowloon Inland Lot No. 10985 (Unit 16 on 13/F. of West Wing of Peninsula Square, 18 Sung On Street, Kowloon, Hong Kong.)
Mortgagee: Wing Lung Bank Ltd., Hong Kong.
Profit or Loss: Making a small profit every year.
Condition: Business is rather active.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: Wing Lung Bank Ltd., Hong Kong.
Standing: Small.
Having
issued 10,000 ordinary shares of HK$1.00 each, Diamond Mine Corporation Ltd. is
wholly-owned by Mr. Shital Girish Bagadia who is an Indian. The directors of the subject are Shital
Girish Bagadia and Girish Vasharambhai Bagadia.
Both are Hong Kong ID Card holders and have got the right to reside in
Hong Kong permanently.
The
subject is located at “Flat C, 13/F., Block 6, Site 11, Bauhinia Mansions, 6
Tak Hong Street, Whampoa Garden, Hunghom, Kowloon, Hong Kong” where is the new
registered address of the subject. This
office is not in a commercial building but a residential building. This is also the new residential address of
Mr. Shital Girish Bagadia.
The
subject is a diamond importer, exporter and wholesaler. It has got an associated company Belmark Diam
Co. [Belmark] located at its operating address.
Belmark, established on 18th March, 2004, is owned and operated by
Girish Vasharambhai Bagadia. Belmark is
also a diamond trader.
Indirectly,
the subject also has had business ties with major diamond mining companies and
is able to provide clients with rough diamonds and loose diamonds with
competitive prices.
The
subject is trading in the following commodities: 3.12-carat diamond,
10.06-carat fancy diamond, diamond ring, etc.
The followings are the product range of the subject:-
Cut:
Round Brilliant Cut, Single Cut, Fancy Shape
Size:
0.01 up to 10.00 Carats
Quality:
VVS, VS, SI, I, PK
Colour:
D to N (WHITE, NW, OW, TTLB, TLB, LB, DB) & Natural Fancy Colour Diamond
Certificate:
GIA (0.30pts up)
Bearing
the brand name of “DIAMOND MINE”, the subject’s products are
marketed in Hong Kong, China and exported to foreign countries. Annual sales turnover is steady and
significant.
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 Jewellery Show 2015” which will be held in Hong
Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of
5th to 9th March, 2015.
The
subject has had an affiliated company located at its old registered address
known as Sheetal (Far East) Ltd. [Sheetal] which is a Hong Kong-based
firm. Girish Vasharambhai Bagadia is
also the managing director of Sheetal.
Sheetal
is located at Unit 16 on 13/F. of West Wing, Peninsula Square, 18 Sung On
Street, Kowloon, Hong Kong. This was the
old address of the subject. However,
this premises is owned by the subject.
Also
operated by the family of Bagadia, Sheetal is one of the leading manufacturers
of polished diamonds in the world. It
procures diamonds from mining companies in Canada, Russia, Africa and
Australia. Currently, the Sheetal Group
employs over 5,000 workers in its production facilities.
The
subject is wholly-owned by the Bagadia family.
History in Hong Kong is over eleven years.
On
the whole, consider the subject good for normal business engagements.
Property
information of the company:-
Property Location:
Unit 16 on 13/F. of West Wing, Peninsula Square,
18 Sung On Street, Kowloon, Hong Kong.
Owner: Diamond Mine
Corporation Ltd.
Date of
Purchase: n.a.
Purchased
Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
12-07-2006 |
- |
Wing Lung Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
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.62.39 |
|
|
1 |
Rs.91.06 |
|
Euro |
1 |
Rs.66.16 |
INFORMATION DETAILS
|
Report Prepared
by : |
ASH |
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 |
|
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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 |
|
|
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.