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Report No. : |
354387 |
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Report Date : |
17.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
LEO SCHACHTER DIAMONDS EAST LTD |
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Registered Office : |
Unit B, 7/F., BOC Group Life Assurance Tower, 136 Des Voeux Road Central |
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Country : |
Hongkong |
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Date of Incorporation : |
21.02.2005. |
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Com. Reg. No.: |
35355636 |
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Legal Form : |
Limited Company. (Non-Hong Kong Company) |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of Jewellery and
Diamonds. |
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No. of Employees : |
8 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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|
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Hongkong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
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 12.5% 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 |
LEO SCHACHTER
DIAMONDS EAST LTD
ADDRESS: Unit
B, 7/F., BOC Group Life Assurance Tower, 136 Des Voeux Road Central,
Hong Kong.
PHONE: 852-2180
7370-72, 2180 7378
FAX: 852-2180
7373
E-MAIL: hongkong@lsdco.com
Name: Mr. Christopher Harvey
Hall
Registered in Hong Kong on: 21st February, 2005.
Organization: Limited Company. (Non-Hong Kong
Company)
Capital: Authorised: US$50,000.00
Issued & Paid Up: US$5,100.00
Business Category: Diamond
Trader.
Employees: 8.
Main Dealing Banker: Standard
Chartered Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Palm Grove House, P.O. Box 438, Road Town, Tortola,
British Virgin Islands.
Hong Kong Principal Place of Business:-
Unit B, 7/F., BOCG Insurance Tower, 134-136 Des Voeux
Road, Central, Hong Kong.
Associated Companies:-
Kama Schachter Jewellery Pvt. Ltd., India.
Kama Schachter Jewelry Hong Kong Ltd., Hong Kong.
Kama-Schachter Jewelry Inc., US.
Leo Schachter (Shanghai) Diamonds Ltd., China.
Leo Schachter Botswana (Pty) Ltd., Botswana.
Leo Schachter Diamonds DMCC, U.A.E.
Leo Schachter Diamonds India Pvt. Ltd., India.
Leo Schachter Diamonds LLC., US.
Leo Schachter Diamonds Ltd., Israel.
Leo Schachter East Ltd.,
British Virgin Islands.
Leo Schachter International Ltd., Hong Kong.
Moshe Namdar & Associates LLC., US.
Moshe Namdar & Co. Ltd., Israel.
Schachter & Namdar (Pty) Ltd., South Africa.
Schachter & Namdar Asia Ltd., Hong Kong.
William Goldberg Diamond Corp., US.
35355636
F0013882
Name: Mr. Christopher Harvey
Hall
Address: 36/F., Tower Two, Times
Square, 1 Matheson Street, Causeway Bay, Hong Kong.
Contact Persons: Mr. Auramov Shani, Mr. Alex Yarrow
Authorised Share Capital: US$50,000.00
Issued & Paid Up Capital: US$5,100.00
(As per registry dated 21-02-2014)
|
Name (Nationality) |
Address |
|
Galit Hana SHALEV BIELER |
2 Avenue de Warens, 1203 Geneva, Switzerland. |
|
Michael Jeffrey STEINMETZ |
338 Edward Avenue, Woodmere, NY 11598, US. |
(As per registry dated
21-02-2014)
|
Name |
Address |
Co. No. |
|
TMF Secretaries (HK) Ltd. |
36/F., Tower Two, Times Square, 1 Matheson Street,
Causeway Bay, Hong Kong. |
0099444 |
The subject was
incorporated in the British Virgin Islands as a
limited company. It has established a
principal place of business in Hong Kong and was registered on 21st
February, 2005 as a Non-Hong Kong company under part XI of the Hong Kong
Companies Ordinance.
Apart from these, neither material change nor amendment
has been ever traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of jewellery and diamonds.
Employees: 8.
Commodities Imported: Belgium,
Israel, India, etc.
Markets: Hong
Kong, other Asian countries, Europe, etc.
Terms/Sales: CAD, L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Authorised Share Capital: US$50,000.00
Issued & Paid Up Capital: US$5,100.00
Indebtedness: US$24,931,327.00 (Total amount outstanding on all mortgages
and charges as per last Annual Return
dated 21-02-2014)
Mortgage or Charge:-
Date of Debenture:
14-11-2010
Amount: As
continuing security for the due payment & discharge of the liabilities
Property: The Company charges & mortgages to
the Secured Party by way of first floating charge all of the company’s
undertaking, property, assets, goodwill, rights & revenues, whatsoever and
whosesoever, both present & future, including all book and other debts,
goods, instruments, agreements, contracts, accounts, chattel paper, deposit
accounts, letter-of-credit rights, tort claims, securities & all other
investment property, general intangibles, payment intangibles, software, tax
refund claims and supporting obligations, the uncalled capital, goodwill and all
patents, patent applications, trade marks, trade names, registered designs,
copyright, licences & ancillary and connected right, both present and
future, and all accessions to or substitutions for and all replacements,
products & proceeds of any and all the foregoing
Mortgagee: Standard
Chartered Bank (Hong Kong) Ltd., Hong Kong.
Profit or Loss: Making
a small profit every year.
Condition: Keeping in a satisfactory
manner.
Facilities: Making active use of general
banking facilities.
Payment: No Complaints
Commercial Morality:
Satisfactory.
Banker: Standard Chartered Bank
(Hong Kong) Ltd., Hong Kong.
Standing: Good.
Leo Schachter
Diamonds East Ltd. is a Non-Hong Kong Company which was incorporated in the
British Virgin Islands.
The representative of
the subject Mr. Christopher Harvey Hall is a Hong Kong ID Card holder and
has got the right to reside in Hong Kong permanently. Currently, he is residing in Hong Kong.
The directors of the
subject Galit Hana Shalev Bieler and Michael Jeffrey Steinmetz are
foreigners. The former is a Switzerland
passport holder residing in Geneva while the latter is a US passport holder and
currently residing in New York, the United States.
The subject is one of
the leading fine diamond trading companies.
Its heritage encompasses a family of four generations of master artisans
who are “handcrafting the world’s most beautiful and brilliant diamonds”. One of its significant brand names is the Leo
Diamond®.
The subject is one of
the key members of Leo Schachter Diamonds Group [Leo Schachter Diamonds] of
Companies.
Leo Schachter Group
has developed a significant sales presence in the Far East, through the
subject. Besides serving the Hong Kong
market, the subject also serves as a portal to Mainland China, South Korea,
Taiwan, Indonesia, Malaysia and Japan.
The Group was set up
in 1975. It was founded in New York of
the United States but now its headquarters are in Israel.
Leo Schachter Diamonds
was founded over half a century ago by Leo Schachter, whose passion for
diamonds was inherited from his father and has been passed down to his children
and grandchildren. Leo Schachter is one
of the world’s significant diamond brands.
The followings are
some of the famous products of the subject: Diamond Necklace, Diamond Bangle,
Diamond Ring, White Gold Necklace, Polished Diamonds, etc.
Its products are
exported to China, South Korea, Taiwan, Indonesia, Malaysia, Japan, etc.
In Hong Kong, the Group
has set up a joint venture with an Indian firm Kama Jewellery India Pvt. Ltd.
known as Kama Schachter Jewelry Hong Kong Ltd. [Kama Schachter]. Kama Schachter is one of the largest
manufacturers, exporters and distributors of diamond jewellery in Asia. It caters to international market.
Leo Schachter
Diamonds’ world-wide headquarters are located in Tel Aviv, Israel, which also
serves as its international distribution hub.
Leo Schachter’s manufacturing infrastructure employs more than 1,500
polishers in China, Botswana, India, Israel, Bangkok of Thailand and New York.
Now, Leo Schachter
has factories and offices in 11 countries around the world.
Besides its core
diamond business, Leo Schachter also manufactures diamond jewellery through
subsidiaries Schachter Diamonds Complete in New York and Kama-Schachter in
Mumbai, India. Its partner, William
Goldberg Diamonds in New York, specializes in producing high end diamond
jewellery.
Now, Leo Schachter
has set up a number of associated companies in the United States, Israel,
India, the United Arab Emirates, China, South Africa, Canada, Switzerland,
etc. Annual sales turnover of the Group
is very significant.
Shanghai is its
newest sales office in China. Opened in
2009 and complementing the subject, the China office is now becoming an
important distribution hub to regions in Mainland China and countries in South
East Asia.
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.
The following
companies are some of the strategic partners of the subject:
· William Goldberg Diamonds
· Kama Schachter
· Lee Heng Diamond Group
The contact persons
of the subject are Mr. Auramov Shani and Mr. Alex Yarrow.
The subject is fully supported
by the Leo Schachter Group.
As the history of the
subject is over ten years and nine months in Hong Kong, on the whole, consider
it good for normal business engagements.
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.66.85 |
|
|
1 |
Rs.100.58 |
|
Euro |
1 |
Rs.73.16 |
|
HKD |
1 |
Rs.8.60 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
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Report Prepared
by : |
NIT |
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.