|
Report No. : |
335956 |
|
Report Date : |
10.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
DIAVIN LTD. |
|
|
|
|
Registered Office : |
Room 508A, 5/F., Tower B, Hung Hom Commercial Centre, 7-39 Ma Tau Wai Road, Hunghom, Kowloon |
|
|
|
|
Country : |
Hong Kong |
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|
|
|
Date of Incorporation : |
25.10.1994 |
|
|
|
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Com. Reg. No.: |
18960793 |
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|
|
|
Legal Form : |
Private Limited Company |
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|
|
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and
jewellery products, emerald,
precious stones. |
|
|
|
|
No. of Employees : |
15 |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Hongkong |
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 12.5% of total system deposits in Hong
Kong by the end of 2014. 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 47.3 million
in 2014, 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 2014 mainland Chinese companies constituted about 50% of the
firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% 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
4.4% in 2014. 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 2014, Hong Kong and China signed a new agreement on achieving basic
liberalization of trade in services in Guangdong Province under the Closer
Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong
Kong and the mainland. The new measures, effective from March 2015, cover a
negative list and a most-favored treatment provision, and will improve access
to the mainland's service sector for Hong Kong-based companies.
|
Source
: CIA |
DIAVIN LTD.
ADDRESS: Room 508A, 5/F., Tower B,
Hung Hom Commercial Centre, 7-39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2369 6123, 2369 0130
FAX: 852-2375
2526
E-MAIL: info@diavin.com
Managing Director:
Mr Chirag Arvindkumar Shah
Incorporated on: 25th October, 1994.
Organization: Private Limited Company.
Issued Share Capital: HK$1,000,000.00
Business Category: Diamond
Trader.
Annual Turnover: US$20~50 million.
Employees: 15.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 508A, 5/F., Tower B, Hung Hom Commercial Centre,
7-39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong.
Associated/Affiliated Companies:-
Dianish (H.K.) Ltd. Taipei Branch, Taiwan.
* Dianish (H.K.) Ltd., Hong Kong.
Diavin Diamond Shanghai Co. Ltd., China.
* Diavin Jewellery Company, Hong Kong.
Diavin Jewellery Pty. Ltd., Australia.
Diavin, Hong Kong.
Navin Gems, India.
Note: * Same address
18960793
0494691
Managing Director:
Mr Chirag Arvindkumar Shah
HK$1,000,000.00
(As per registry
dated 25-10-2014)
|
Name |
|
No. of shares |
|
Chirag Arvindkumar SHAH |
|
800,000 |
|
Shraddha Chirag SHAH |
|
200,000 |
|
|
|
–––––––– |
|
|
Total: |
1,000,000 ======= |
(As per registry
dated 25-10-2014)
|
Name (Nationality) |
Address |
|
Chirag Arvindkumar SHAH |
Flat K, 33/F., Block 2, Royal Peninsula, 8 Hung Lai
Road, Kowloon, Hong Kong. |
|
Shraddha Chirag SHAH |
Flat K, 33/F., Block 2, Royal Peninsula, 8 Hung Lai
Road, Kowloon, Hong Kong. |
(As per registry dated 25-10-2014)
|
Name |
Address |
Co. No. |
|
Elegant Secretaries Ltd. |
Room 804, 8/F., Lap Fai Building, 6‑8 Pottinger
Street, Central, Hong Kong. |
0418716 |
The subject was incorporated on 25th October, 1994 as a
private limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of
Eminent Gold Ltd., name changed to the present style on 28th March, 2001.
Formerly the subject was located at Unit 6, 7/F.,
Chevalier House, 45‑51 Chatham Road South, Tsimshatsui, Kowloon,
Hong Kong, moved to the present address with effect from 8th December, 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.
Employees: 15.
Commodities Imported: India,
Belgium, other European countries, etc.
Markets: Japan,
Southeast Asia, Europe, Middle East, Australia, etc.
Annual Turnover: US$20~50 million.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Hong Kong Jewelry Manufacturers Association,
Hong Kong.
The Indian Chamber of Commerce Hong Kong, Hong Kong.
Issued Share Capital: HK$1,000,000.00
Mortgage or Charge: (See
attachment)
Profit or Loss: Making
a small profit every year.
Condition: Business is active.
Facilities: Making rather active use of
general banking facilities.
Payment: Met trade commitments as
contracted.
Commercial Morality:
Satisfactory.
Bankers:-
The Hongkong & Shanghai
Banking Corp. Ltd., Hong Kong.
Hang Seng Bank Ltd.,
Hong Kong.
Standing: Very Good.
Diavin Ltd. formerly
had issued just 10,000 ordinary shares of HK$1.00 each at the beginning and was
increased to 1 million ordinary shares of the same value each on 31st March,
2012. The subject is jointly owned by
Mr. Chirag Arvindkumar Shah, holding 80% interests; and Mr. Shraddha
Chirag Shah, holding 20%. The two Shahs
are also directors of the subject. Being
Hong Kong ID holders, they have got the right to reside in Hong Kong
permanently.
The subject is a
diamond importer, exporter and wholesaler.
It has got an associated company Diavin Jewellery Company [Diavin]
located at its operating address. The
subject and Diavin are engaged in the same lines of business.
Diavin is a
subsidiary of Navin Gems in India. Navin
Gems is a diamond trading company and sightholder in India. Diavin is also managed by Chirag Arvindkumar
Shah.
The subject is
trading in carat size diamonds and loose diamonds. Most of the commodities are imported from
India.
The subject is
carrying the following commodities:-
· Finished Jewellery
Diamond
Jewellery
Gem Set
Jewellery
Gold
Jewellery
Platinum
Jewellery
Other
Jewellery
· Materials
Polished Diamonds,
Loose Diamonds, White Diamonds
· Equipment and Services
Stone
Setting Equipment
Its main products are
loose diamonds, diamond bracelets, carat sized diamonds, etc.
The subject has
established its own diamond and jewellery manufacturing facilities in
China. The China factory is able to
produce 2,000 units of jewellery products monthly.
The China factory
manufactures the following commodities:-
· Diamond Gold Jewellery — 9-karat, 14-karat, 18-karat, 24-karat, Others
· Diamond Platinum Jewellery
· Gemset Jewellery — 9-karat, 14-karat, 18-karat, 24-karat, etc.
· Gemset Platinum Jewellery — Pt900, Pt950, etc.
· Gold Jewellery — 9-karat, 14-karat, 18-karat, Others
· Platinum Jewellery — Pt900, Pt950, etc.
The subject is
engaged in marketing and distributing rough and cut, polished diamonds. Its products include jewellery products,
ranging from diamonds and precious stones such as sapphire and semi-precious
stones in 9K, 14K, 18K gold and platinum.
Various price levels are offered.
Jewellery range includes rings, earrings, pendants, bracelets,
necklaces, charms and cufflinks.
Commodities are exported to worldwide countries.
The subject is one of
the largest stone suppliers among the globe and it has its own stone cutting
factory which is able to provide customers with collections of fine diamonds.
Currently, the
subject has set up offices or associated companies in Taipei of Taiwan,
Shanghai of China and Sydney of Australia.
Its associated company in Taiwan is known as Dianish (H.K.) Ltd. Taipei Branch,
Taiwan.
The subject has
become one of the significant diamond and jewellery suppliers in the Asia
Pacific regions with over 100 staff and workers. The subject has got its own in-house
designers.
The annual turnover
of the subject amounts to US$20 to 50 million.
Business is active.
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 1st
to 5th March, 2016. Its booth No. is AWE
5-H18.
The subject owns
certain premises in Hong Kong.
As the history of the
subject in Hong Kong is over twenty years and seven months, on the whole,
consider it good for normal business engagements.
Property
information of the company:-
1. Property
Location: Unit 6 on 7/F.,
Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.
Owner: Diavin Ltd.
Date of Purchase:
n.a.
Purchased Price:
n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
01-08-2007 |
- |
The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong. |
Mortgage to secure general banking facilities |
2. Property
Location: Unit 6 on 10/F.,
Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.
Owner: Diavin Ltd.
Date of Purchase:
n.a.
Purchased Price:
n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
30-09-2008 |
- |
The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong. |
Mortgage to secure general banking facilities |
|
Date |
Particulars |
Amount |
|
01-08-2007 |
Instrument: Mortgage Property: 187/19,060th parts or shares of and in The Remaining
Portion of Kowloon Inland Lot No. 7072, Kowloon Inland Lot No. 8670, Kowloon
Inland Lot No. 8567 and Kowloon Inland Lot No. 7074 (Unit 6 on 7/F. of Chevalier
House, 45-51 Chatham Road South, Kowloon, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
To secure all sums from time to time advanced by the
Lender to the Borrower whether alone or jointly with any person and outstanding
in respect of general banking facilities |
|
30-09-2008 |
Instrument: Mortgage Property: 191/19,060th parts or shares of and in The Remaining
Portion of Kowloon Inland Lot No. 7072, Kowloon Inland Lot No. 8670, Kowloon
Inland Lot No. 8567 and Kowloon Inland Lot No. 7074 (Unit 6 on 10/F. of
Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
To secure all sums from time to time advanced by the
Lender to the Borrower whether alone or jointly with any person and
outstanding in respect of general banking facilities |
|
30-09-2008 |
Instrument: Rental Assignment Property: 191/19,060th parts or shares of and in The Remaining Portion
of Kowloon Inland Lot No. 7072, Kowloon Inland Lot No. 8670, Kowloon Inland
Lot No. 8567 and Kowloon Inland Lot No. 7074 (Unit 6 on 10/F. of Chevalier
House, 45-51 Chatham Road South, Kowloon, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong. |
To secure all moneys in respect of general banking
facilities |
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.63.81 |
|
|
1 |
Rs.98.93 |
|
Euro |
1 |
Rs.69.66 |
INFORMATION DETAILS
|
Analysis Done by
: |
SAN |
|
|
|
|
Report Prepared
by : |
TPT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.