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Report No. : |
318623 |
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Report Date : |
25.04.2015 |
IDENTIFICATION DETAILS
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Name : |
B.G.
DIAM (HK) LTD. |
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Registered Office : |
Flat 407, 4/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon |
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Country : |
Hongkong |
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Date of Incorporation : |
14.10.2011 |
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Com. Reg. No.: |
59067588 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of 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 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 |
B.G. DIAM
(HK) LTD.
ADDRESS: Flat
407, 4/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-3689
4570, 9644 1918
FAX: 852-3689
4571
E-MAIL: bgdiam@live.hk
Managing Director:
Mr. Chirag Bharatbhai Patel
Incorporated on: 14th October, 2011.
Organization: Private Limited Company.
Issued Share Capital: HK$800,000.00
Business Category: Diamond
trader.
Employee: 2.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Flat 407, 4/F., Hart Avenue Plaza, 5-9 Hart Avenue,
Tsimshatsui, Kowloon, Hong Kong.
59067588
1671564
Managing Director: Mr.
Chirag Bharatbhai Patel
(Hong Kong Mobile Phone No.: 852-9644 1918)
HK$800,000.00
(As per registry
dated 14-10-2013)
|
Name |
|
No. of shares |
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Chirag Bharatbhai PATEL |
|
800,000 ====== |
(As per registry
dated 14-10-2013)
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Name (Nationality) |
Address |
|
Chirag Bharatbhai PATEL |
Unit 9, Harris Park, 66 Weston Street, New South Wales
2150, Australia. |
(As per registry
dated 31-10-2013)
|
Name |
Address |
Co. No. |
|
Buttar Secretarial Services Ltd. |
Unit 13, 16/F., Asia Trade Centre, 79 Lei Muk Road,
Kwai Chung, New Territories, Hong Kong. |
1906147 |
The subject was incorporated on 14th October, 2011 as a
private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at B1, 11/F., Block B,
Prat Mansion, 26‑36 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong,
moved to the present address in early 2014.
The new company secretary was appointed on 14th October,
2014.
Apart from these, neither material change nor amendment
has been ever traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of diamonds, etc.
Employee: 2.
Commodities Imported: India,
other Asian countries, etc.
Markets: Hong
Kong, India, other Asian countries, etc.
Terms/Sales: CAD, L/C, T/T, etc.
Terms/Buying: L/C, Advanced T/T, etc.
Issued Share Capital: HK$800,000.00
Profit or Loss: Made
a small profit in 2014.
Condition: Business
keeps on improving.
Facilities: Making
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.
Having issued 800,000
ordinary shares of HK$1.00 each, B.G. Diam (HK) Ltd. is wholly owned by Mr.
Chirag Bharatbhai Patel who is an Indian but an Australia passport holder. The registered address of Chirag Bharatbhai
Patel is in Australia. Now, he is also a
Hong Kong ID holder and has got the right to reside in Hong Kong
permanently. He is also the only
director of the subject.
Formerly, the subject
was jointly owned by Mr. Bharatkumar Bhimjibhal Kathiriya, holding 70%
interests, and Chirag Bharatbhai Patel, holding 30%. On 29th December, 2011 the former transferred
all his share to Patel who now has become the sole shareholder.
The subject moved to
the present new address in early 2014.
It is a while loose diamond trader.
According to the
subject, it has had an associated manufacturing firm in India since 1999 known
as “Bhagwati Gems”. It also has had
associated company in Belgium.
The subject is a
diamond manufacturers, exporter & importer of all sorts of size of natural
cut loose polished diamonds. It is
offering customers with white round diamonds, white loose diamonds, polished
loose diamonds, etc.
The subject is
specialized in Round Brilliant cut from 0.005 ct to 0.14 ct and it offers
customers with precious stones at discounted price.
It also has GIA, IGI
certified stones available from 0.30 cts to 5.00 cts. Most of its products bear the brand name Bhagwati Gems. Products are marketed in Hong Kong, exported
to Australia, India, China, Japan, Taiwan, the Middle East, Europe, Central
& South America, etc.
The subject’s
associated factory in Surat, India covers an area of 7,000 sq.m. The annual sales turnover of the factory
ranges from US$25 to 50 million.
Patel can be reached
at his Hong Kong mobile phone number 852-9644 1918 when he is in Hong
Kong. The business of the subject is
chiefly handled by him.
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 2015” which had been held in
Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the period of 2nd to 6th
March, 2015. Its booth No. is AWE
5-F39. Besides, it is going to take part
in the same show which will be held in the same venue in March 2016.
The business of the
subject keeps on improving.
As the history of the
subject is just over three years and six months in Hong Kong, on the whole,
consider it good for normal business engagements in 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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.40 |
|
|
1 |
Rs.95.42 |
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Euro |
1 |
Rs.68.49 |
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.