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Report No. : |
307230 |
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Report Date : |
10.02.2015 |
IDENTIFICATION DETAILS
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Name : |
ETERNAL DIAMONDS CORPORATION LTD. |
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Registered Office : |
Unit B, 16/F., World Trust Tower, 50 Stanley Street, Central |
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Country : |
Hong Kong |
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Date of Incorporation : |
18.12.2002 |
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Com. Reg. No.: |
33232303 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter, Wholesaler and Retailer of All Kinds of Diamonds and
Jewellery |
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No of Employees : |
12 |
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 |
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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 |
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 |
ETERNAL DIAMONDS CORPORATION LTD.
ADDRESS: Unit B,
16/F., World Trust Tower, 50 Stanley Street, Central, Hong Kong.
PHONE: 852-2333 5534, 2522 9350
FAX: 852-2356
2680, 2522 2945
E-MAIL: eternal.diamonds@yahoo.com.hk
ilau.eternaldiamonds@hotmail.com.hk
Managing Director: Mr. Ashish
Bajranglal Bagaria
Incorporated on: 18th December, 2002.
Organization: Private Limited Company.
Capital: Nominal: US$2,000,000.00
Issued: US$2,000,000.00
Business Category: Diamond
Trader.
Annual Turnover: US$400~420 million.
Employees: 12.
Main Dealing Banker: The Hong
Kong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
ETERNAL DIAMONDS CORPORATION LTD.
Registered Head
Office:-
Unit B, 16/F., World Trust Tower, 50 Stanley Street, Central, Hong Kong.
Holding Company:-
Everstar Capital (Asia) Ltd., British Virgin Islands.
33232303
0826414
Managing Director: Mr. Ashish
Bajranglal Bagaria
Nominal Share Capital: US$2,000,000.00 (Divided into 2,000,000 shares of
US$1.00 each)
Issued Share Capital: US$2,000,000.00
(As per registry dated 18-12-2013)
|
Name |
|
No. of shares |
|
Everstar Capital (Asia) Ltd. 263 Main Street, P.O. Box 2196, Road Town, Tortola, British Virgin
Islands. |
|
2,000,000 ======= |
(As per registry dated 18-12-2013)
|
Name (Nationality) |
Address |
|
Ashish Bajranglal BAGARIA |
Room No. 6, Pragati Centre, Daftary Road, Malad (E), Mumbai - 4000097,
Maharashtra, India. |
(As per registry dated 18-12-2013)
|
Name |
Address |
Co. No. |
|
Louis Lai & Luk Co. Secretarial Services Ltd. |
9/F., Surson Commercial Building, 140‑142 Austin Road,
Tsimshatsui, Kowloon, Hong Kong. |
0686503 |
The subject was incorporated on 18th December, 2002 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject’s registered office was in an accountant firm
located at 1/F., Xiu Ping Commercial Building, 104 Jervois Street, Sheung Wan,
Hong Kong known as Fung & Pang CPA Ltd. which had handled its
correspondences and documents. The
subject changed its registered address to Flat F2-27, 2/F., Phase 2, Hang Fung
Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong with
effect from 10th June, 2010. This was
also the old operating address of the subject.
It has moved to the present address in January 2012.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter, Wholesaler and Retailer.
Lines: All
kinds of diamonds and jewellery
Employees: 12.
Commodities Imported: India,
Belgium, UAE
Markets: Hong
Kong, US, UAE, India, other Asian countries
Annual Turnover: US$400~420
million.
Terms/Sales: Credit of 30, 60-90 days, or as
per contracted.
Terms/Buying: Credit of 90-120 days.
Nominal Share Capital: US$2,000,000.00 (Divided into 2,000,000 shares of
US$1.00 each)
Issued Share Capital: US$2,000,000.00
Increase of Nominal Capital:-
|
From |
US$100,000.00 |
to |
US$2,000,000.00 |
on |
16-01-2012 |
Alternation of Issued Capital:-
|
Initially |
paid up |
US$ 10,000.00 |
|
16-01-2012 |
paid up |
US$1,990,000.00 |
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|
|
–––––––––––––– |
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Total: |
paid up |
US$2,000,000.00 ============= |
Profit or Loss: Business is
profitable.
Condition: Keeping in an active
condition.
Facilities: Making very active
use of general banking facilities.
Payment: Met trade commitments as
contracted.
Commercial Morality: Very Good.
Bankers:-
The Hong Kong & Shanghai Banking Corp. Ltd., Hong Kong.
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Standing: Very Good.
Having issued 2 million ordinary shares of US$1.00 each, Eternal
Diamonds Corporation Ltd. is a wholly-owned subsidiary of Everstar Capital
(Asia) Ltd. which is a BVI-registered firm.
The only director of the subject Mr. Ashish Bajranglal Bagaria is an
Indian merchant. He is a Hong Kong ID
Card holder and has got the right to reside in Hong Kong permanently.
Everstar Capital (Asia) Ltd. is also controlled by Ashish Bajranglal
Bagaria.
The subject is trading in diamonds and diamond jewellery. Commodities are chiefly imported from India,
Belgium and the United Arab Emirates.
Products are marketed in Hong Kong, exported to the United State, the
United Arab Emirates, the other Asian countries.
One of the subject’s India suppliers is Firestar International Pvt. Ltd.
which is in Surat, India. The subject
imports cut and polished diamonds from this company.
The subject is also a loose diamond wholesaler in Hong Kong. All the operators of the subject are
experienced.
According to the subject, its sales in 2009 was over US$180 million, in
2010 was over US$375 million. Its sales
turnover in 2011, 2012 and 2013 were over US$400 million. Overall business is active and good and
profitable. It is predicted that the
subject’s business will improve further in the years ahead as its market share
in the United Arab Emirates has been increasing.
The subject’s business is chiefly handled by Bagaria himself.
The subject has had regular suppliers in India and customers in Hong
Kong and foreign countries. Overall
business is active and good.
The contact person of the subject is a Ms. Lau who is a Hong Kongnese.
The history of the subject in Hong Kong is about twelve years.
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. 62.14 |
|
|
1 |
Rs. 94.78 |
|
Euro |
1 |
Rs. 70.38 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
ASH |
RATING EXPLANATIONS
|
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 |
|
-- |
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.