|
Report No. : |
307426 |
|
Report Date : |
23.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
SPLENDOR DIAGEM LTD. |
|
|
|
|
Registered Office : |
Flat F, 13/F., Winner Building, 36 Man Yue Street, Hunghom, Kowloon |
|
|
|
|
Country : |
Hong Kong
|
|
|
|
|
Date of Incorporation : |
20.05.2005 |
|
|
|
|
Com. Reg. No.: |
36097651 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Trader of Jewelry & All Kinds of Diamonds. |
|
|
|
|
No. of Employees : |
5 [Including Associates] |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Hong Kong |
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% 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 |
SPLENDOR DIAGEM LTD.
ADDRESS: Flat F,
13/F., Winner Building, 36 Man Yue Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2311
5480; 2311 5481; 2311 5482
FAX: 2721
4630; 2311 5485
E-MAIL: presto@prestotrade.com.hk
Managing Director: Mr. Varshit
Jain
Incorporated on: 20th May, 2005.
Organization: Private Limited
Company.
Issued Share Capital: HK$1,000,000.00
Business Category: Jewellery
Trader.
Employees: 5. (Including associate)
Main Dealing Banker: Bank of
Baroda, Hong Kong.
Banking Relation: Satisfactory.
SPLENDOR DIAGEM LTD.
Registered Head
Office:-
Flat F, 13/F., Winner Building, 36 Man Yue Street, Hunghom, Kowloon,
Hong Kong.
Associated
Companies:-
King Sun Trading
Flat A, 11/F., Austin Mansion, 15A Austin Avenue, Kowloon,
Hong Kong.
Presto Trade, Hong Kong. (Same
address)
Prestorise Intertrade Co. Ltd., Thailand.
Priyaank International Co. Ltd., Thailand.
Smart Art Jewellery Ltd., Thailand.
36097651
0971439
Managing Director: Mr. Varshit
Jain
HK$1,000,000.00
(As per registry dated 20-05-2014)
|
Name |
|
No. of shares |
|
Varshit JAIN |
|
500,000 |
|
Praveen RAGHUNATH LODHA |
|
500,000 |
|
|
|
–––––––– |
|
|
Total: |
1,000,000 ======= |
(As per registry dated 20-05-2014)
|
Name (Nationality) |
Address |
|
Varshit JAIN |
Flat A, 13/F., Block 8, Tung Chung Crescent, 2 Mei Tung Street, Tung
Chung, New Territories, Hong Kong. |
|
Praveen RAGHUNATH LODHA |
Flat A, 11/F., Austin Mansion, 15A Austin Avenue, Tsimshatsui,
Kowloon, Hong Kong. |
(As per registry dated 20-05-2014)
|
Name |
Address |
Co. No. |
|
Lodestar Secretaries Ltd. |
13/F., Wah Kit Commercial Centre, 302 Des Voeux Road, Central, Hong
Kong. |
0113023 |
The subject was incorporated on 20th May, 2005 as a private limited
liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Silverdown Ltd.,
name changed to Powergen Ltd. on 8th September, 2005; changed to Presto Trade
Ltd. on 2nd April, 2007 and further to the present style on 2nd March, 2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Jewellery
Trader.
Lines: All kinds of
diamonds.
Employees: 5. (Including associate)
Commodities Imported: India,
Belgium, Israel, Thailand, US.
Markets: Hong Kong,
Japan, India, the Middle East, Europe, North America.
Terms/Sales: L/C, T/T.
Terms/Buying: L/C, T/T, D/P.
Issued Share Capital: HK$1,000,000.00
Mortgage or Charge:-
Date of General Letter of Hypothecation:
11-03-2014
Amount: All moneys
Property: All goods and
all bills of exchange, promissory notes and negotiable instruments of any
description, all bills of lading, dock warrants, delivery orders, warehouse and
receipts and other documents of title to or documents relating to goods, and
all goods thereby represented or to which such documents relate, and all
policies and certificates of insurance in the name of the company should be
hypothecated to the Bank as for security.
Mortgagee: Bank of Baroda,
Hong Kong Branch.
Profit or Loss: Making a small
profit every year.
Condition: Keeping in an active
condition.
Facilities: Making active use of
general banking facilities.
Payment: So far so good.
Commercial Morality:
Satisfactory.
Banker: Bank of Baroda, Hong
Kong.
Standing: Normal.
Having issued 1 million ordinary shares of HK$1.00 each, Splendor Diagem
Ltd. is equally owned by Mr. Varshit Jain and Mr. Praveen Raghunath Lodha, both
are India merchants. Being Hong Kong ID
holders and have got the right to reside in Hong Kong permanently, they are
also directors of the subject.
The subject has had an associated company Presto Trade located at the
same address. The subject and Presto
Trade are engaged in the same lines of business. They are diamond and jewellery traders.
The subject is trading in all kinds of diamonds, etc. It is trading in loose diamonds, white
baguette diamonds and other types of baguette diamonds, rounds, princess cuts,
marquises, pears, etc.
The subject also trades in gold jewellery studded with diamonds and
colour stones.
Commodities are imported from India, Belgium, Israel, Thailand, the
United States, etc. Finished products
are exported to Japan, India, Thailand, the Middle East, Europe, the United
States, etc. Business is rather active
and steady.
Lodha had lived in Thailand for a long time and has established business
ties with many diamond firms in Bangkok.
He moved to Hong Kong in June 1991.
Currently, many of the diamond firms in Thailand are the subject’s main
business partners. The following two
firms in Thailand are the associates of the subject:-
Priyaank International Co. Ltd.;
Smart Art Jewellery Ltd. [Smart Art].
Smart Art is a jewellery and diamond trader. Its main products are Sapphire Necklaces, 18K
white gold necklace, diamond necklaces, jewellery necklaces, etc. The Contact Persons of Smart Art are Manish
Saihgal and Praveen Raghunath Lodha.
The subject’s other shareholder Jain is also the Manager of King Sun
Trading which is also a jewellery product trader. King Sun Trading is a sole proprietorship set
up on 29th September, 2006 and owned by Jain.
However, King Sun Trading does not have its own operating office. Its registered address is in the residence of
Jain.
The business of the subject is chiefly handled by the two partners.
As the history of the subject in Hong Kong is over nine years and eight
months, on the whole, consider it good for normal business engagements.
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.62.25 |
|
|
1 |
Rs.96.00 |
|
Euro |
1 |
Rs.70.72 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
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.