MIRA INFORM REPORT

 

 

Report No. :

316860

Report Date :

15.04.2015

 

IDENTIFICATION DETAILS

 

Name :

NANCY  DIAM

 

 

Registered Office :

Room 107, 1/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

18.09.2003

 

 

Com. Reg. No.:

33914379-000-09

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Subject is Importer and Exporter of Loose polished diamonds, diamond jewellery, luxury watches

 

 

No. of Employee :

4 (Including associate)

 

 

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 – 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

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 40.7 million in 2013, 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 48.5% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56.9% 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. As of year-end 2014, the Democracy protests that began in late September probably will have some adverse effects on economic growth, particularly retail sales.

 

Source : CIA

 

Company name     

 

NANCY  DIAM

 

 

ADDRESS

 

Room 107, 1/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:             852-2408 2331

 

FAX:                  852-2480 2661

 

 

MANAGEMENT

 

Manager:  Mr. Asheinkumar Dhirubhai Sutariya

 

 

SUMMARY

 

                         Establishment:                    18th September, 2003.

 

                         Organization:                       Sole Proprietorship.

 

                         Capital:                               Not disclosed.

 

                         Business Category:             Diamond and Jewellery Trader.

 

                         Employees:                        4 (Including associate)

 

                         Main Dealing Banker:              The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

                         Banking Relation:                Satisfactory.

                             

                              Head Office:-

      Room 107, 1/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.

 

Associated Company:-

Ocean Diamond (HK) Ltd., Hong Kong.  (Same address)

 

 

BUSINESS REGISTRATION NUMBER:

 

33914379-000-09

 

 

MANAGEMENT

 

Manager:  Mr. Asheinkumar Dhirubhai Sutariya

 

 

SOLE PROPRIETOR

 

Name:  Mr. Asheinkumar Dhirubhai SUTARIYA

Residential Address:     Flat H, 3/F., Block 16, Cherry Mansion, 9 Shung King Street, Hunghom, Kowloon, Hong Kong.

 

 

HISTORY

 

The subject was established on 18th September, 2003 as a sole proprietorship concern owned by Mr. Nilesh Sambhubhai Italiya under the Hong Kong Business Registration Regulations.

The subject became a partnership as Mr. Asheinkumar Dhirubhai Sutariya joined in as a partner on 1st April, 2012.  It became a sole proprietorship again as Nilesh Sambhubhai Italiya retired on 31st July, 2012.

At the very beginning, the subject was located at Flat E, 2/F., Universal Mansion, Phase 1, 52 Hillwood Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat A, 6/F., Tung Wui Building, 46-48 Kimberley Road, Tsimshatsui, Kowloon, Hong Kong in January 2007, to Flat L1, 12/F., Summit Building, 30 Man Yue Street, Hunghom, Kowloon, Hong Kong in July 2008, to Flat D1, 6/F. of the same building in December of the same year.  In September 2012, the subject moved to ‘Room 908, Block F, 9/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong’ and further moved to the present address in April 2014.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

OPERATIONS

 

                         Activities:     Importer and Exporter.

 

                         Lines:   Loose polished diamonds, diamond jewellery, luxury watches, etc.

 

                         Employees:   4.  (Including associate)

 

                         Commodities Imported:      India, Europe, US, etc.

 

                         Markets:    Thailand, Hong Kong, China, Vietnam, the Philippines, Malaysia, Singapore, India, US, Russia, Turkey, etc.

 

                         Terms/Sales:  L/C, T/T, etc.

 

                         Terms/Buying:  As per contracted.

 

 

FINANCIAL INFORMATION

 

                         Capital:    Not disclosed.

 

                         Profit or Loss:    Making a small profit every year.

 

                         Condition:  Keeping in an active condition.

 

                         Facilities:  Making active use of general banking facilities.

 

                         Payment:  Met trade commitments as contracted.

 

                         Commercial Morality:  Satisfactory.

 

                         Bankers:-

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Bangkok Bank Public Co. Ltd., Hong Kong Branch.

 

                         Standing:  Normal.

 

 

GENERAL

 

Nancy Diam was a sole proprietorship set up and owned by Mr. Nilesh Sambhubhai Italiya who is an Indian.  Now, the subject is solely owned by Mr. Asheinkumar Dhirubhai Sutariya who is an Indian.  He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.  He is also manager of the subject.

The subject moved to the present address in April 2014.  It is a diamond trader.

The subject shares the same office with its associated company Ocean Diamond (HK) Ltd. [Ocean Diamond] which is also a diamond trader.  Incorporated on 11th May, 2012, Ocean Diamond is jointly owned by Asheinkumar Dhirubhai Sutariya, holding 23.5% interests; Rameshbhai Virjibhai Godhani, holding 68.9%, and Yogeshkumar Damjibhai Vaghani, 7.7%.  The first shareholder is also the manager of the subject.  The products of Ocean Diamond bear the brand name of Ocean Diamond.

The subject is trading in the following products: Round, Oval, Heart, Pear, Prince, Marquise, Emerald, Bugget, Tapper, etc.

In Hong Kong, the old sole proprietor Nilesh Sambhubhai Italiya is operating another firm known as Walasons Ltd. [Walasons] which is located at the old operating office of the subject.

The business of the subject is chiefly handled by Asheinkumar Dhirubhai Sutariya himself.

The history of the subject in Hong Kong is over eleven years and six months.

On the whole, consider it good for normal business engagements in moderate credit amounts.

 

 

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.62.39

UK Pound

1

Rs.91.06

Euro

1

Rs.66.16

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.