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Report No. : |
308423 |
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Report Date : |
18.02.2015 |
IDENTIFICATION DETAILS
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Name : |
BELMARK DIAM CO. |
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Registered Office : |
Room 1316-A, 13/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon |
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Country : |
Hong kong |
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Date of Incorporation : |
18.03.2004 |
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Com. Reg. No.: |
34387068-000-03 |
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Legal Form : |
Partnership Concern |
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Line of Business : |
· Importer, Exporter and Wholesaler of all kinds of Diamonds (Including Rough Diamonds, Loose Diamonds, Polished or Cut Diamonds), Jewellery Products, Emerald & Precious Stones. · Engaged in trading of 3.12-Carat Diamond, 10.06-Carat Fancy Diamond & Diamond Ring. Subject product
ranges are as follows: · Cut: Round Brilliant Cut, Single Cut, Fancy Shape · Size: 0.01 up to 10.00 Carats · Quality: VVS, VS, SI, I, PK · Colour: D to N (WHITE, NW, OW, TTLB, TLB, LB, DB) & Natural Fancy Colour Diamond · Certificate: GIA (0.30pts up) |
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No. of Employees : |
4. (Including associates) |
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
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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 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.
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Source
: CIA |
BELMARK DIAM CO.
ADDRESS: Room 1316-A,
13/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2739
8277, 2739 8299, 2379 7420
FAX: 852-2739
9200, 2739 8211
E-MAIL: bagagroup@gmail.com
Manager:
Mr. Girish Vasharambhai Bagadia
Establishment: 18th March, 2004.
Organization: Partnership.
Capital:
Not disclosed.
Business Category: Importer, Exporter and Wholesaler.
Employees:
4. (Including associates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head
Office:-
Room 1316-A, 13/F., Peninsula Square, 18
Sung On Street, Hunghom, Kowloon, Hong Kong.
Affiliated/Associated
Companies:-
Diamond Mine Corporation Ltd., Hong Kong.
Heritage Diamond (Shanghai) Ltd., China.
34387068-000-03
Manager:
Mr. Girish Vasharambhai Bagadia
(Hong Kong Mobile Phone No.: 852-9833 0809)
Contact Person: Mr. Garry
Name:
Mr. Girish Vasharambhai BAGADIA
Residential Address: Block A, 16/F., Hang Lung Bank Building,
46-48 Grandville Road, Tsimshatsui, Kowloon, Hong Kong.
Name:
Mr. Jitendra Odhavaji BAGADIA
Residential Address: Block A, 16/F., Hang Lung Bank Building,
46-48 Grandville Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 18th March, 2004 as a partnership concern
jointly owned by Mr. Girish Vasharambhai Bagadia and Mr. Jitendra Odhavaji
Bagadia under the Hong Kong Business Registration Regulations.
Initially the subject was located at Room 1206, 12/F., Hang Seng Tsim
Sha Tsui Building, 18 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong, moved to
Flat B, 9/F., Kimberley Mansion, 15 Austin Avenue, Tsimshatsui, Kowloon, Hong
Kong in January 2005; to Room 1316, 13/F., Peninsula Square, 18 Sung On Street,
Hunghom, Kowloon, Hong Kong in March 2007; and further moved to the present
address in September 2008.
Apart from these, neither material change
nor amendment has been ever traced and noted.
Activities: Importer, Exporter
and Wholesaler.
Lines: all kinds of Diamonds (Including Rough Diamonds,
Loose Diamonds, Polished or Cut
Diamonds), Jewellery Products, Emerald & Precious Stones
Employees: 4. (Including
associates)
Commodities Imported: India, Canada, Russia, Australia, Belgium, other European countries,
etc.
Markets: Japan, other Asian
countries, Europe, Middle East, US, etc.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P,
etc.
Capital: Not disclosed.
Profit & Loss: Making a small profit every year.
Condition: Business is
normal.
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
Wing Lung Bank
Ltd., Hong Kong.
Standing:
Normal.
Belmark Diam Co. is a partnership jointly set up and owned by Mr. Girish
Vasharambhai Bagadia and Mr. Jitendra Odhavaji Bagadia, both of whom are India
merchants.
Mr. Girish Vasharambhai Bagadia is a Hong Kong ID Card holder and has
got the right to reside in Hong Kong permanently. The latter is a Belgium passport holder.
The subject is a diamond trader.
Girish Vasharambhai Bagadia can be reached at his Hong Kong mobile phone
number at 852-9833 0809.
The contact person of the subject Mr. Garry can be reached at the Hong
Kong phone number 852-2739 8299. This is
also the phone number of the subject.
The subject has had an associated concern known as Diamond Mine
Corporation Ltd. [DMCL]. DMCL and the
subject are engaged in the same lines of business, more or less. The sole shareholder of DMCL is Mr. Girish
Vasharambhai Bagadia.
All the Bagadias belong to the same family.
The subject is a diamond importer, exporter and wholesaler. It has had business ties with major diamond
mining companies and is able to provide customers with rough diamonds, loose
diamonds, polished or cut diamonds with competitive prices.
The subject is trading in the following commodities: 3.12-carat diamond,
10.06-carat fancy diamond & diamond ring.
The followings are the product range of the subject:-
Cut: Round Brilliant Cut, Single Cut, Fancy
Shape
Size: 0.01 up to 10.00 Carats
Quality: VVS, VS, SI, I, PK
Colour: D to N (WHITE, NW, OW, TTLB, TLB,
LB, DB) & Natural Fancy Colour Diamond
Certificate: GIA (0.30pts up)
The subject’s products are marketed in Hong Kong, exported to the other
Asian countries, Belgium, the other European countries, the Middle East,
etc. Handled by Girish Vasharambhai
Bagadia and Garry, the subject’s business is normal. History in Hong Kong is over ten years.
In recent years, the subject has set up an associated concern Heritage
Diamond (Shanghai) Ltd. [Heritage] which is a China-based concern. Nominally, Heritage is also located at the
same address as the subject in Hong Kong.
Its operating address should be in Shanghai, China. It is a member of Shanghai Diamond Exchange
Association.
Heritage is penetrating the China market for the subject.
The history of the subject in Hong Kong is over ten years and nine
months.
On the whole, consider it good for normal business engagements.
Property information of associate:-
Property Location: Unit 16 on 13/F. of West Wing, Peninsula Square,
18 Sung On Street, Kowloon, Hong Kong.
Owner: Diamond
Mine Corporation Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
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Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
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12-07-2006 |
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Wing Lung Bank Ltd., Hong Kong. |
Mortgage to secure general banking
facilities |
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-concern 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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.20 |
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1 |
Rs.95.99 |
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Euro |
1 |
Rs.71.00 |
INFORMATION DETAILS
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Analysis Done by
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RAS |
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Report Prepared
by : |
MNL |
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.