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Report No. : |
301471 |
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Report Date : |
09.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
DIAROUGH (HONG
KONG)
LTD. |
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Registered Office : |
Unit 1103, 11/F., Tower B, Hunghom Commercial Centre, 37 Ma Tau Wai Road, Hung Hom, Kowloon |
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Country : |
Hongkong |
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Date of Incorporation : |
15.12.1992 |
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Com. Reg. No.: |
16799407 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of Diamonds and
Jewellery. |
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No. of Employees : |
8 |
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
Hongkong |
A1 |
A1 |
|
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.
|
Source
: CIA |
DIAROUGH (HONG
KONG) LTD.
ADDRESS: Unit 1103,
11/F., Tower B, Hunghom Commercial Centre, 37 Ma Tau Wai Road,
Hung
Hom, Kowloon, Hong Kong.
PHONE: 852-2721
2682-901
FAX: 852-27216576
E-MAIL: neresh@diarough.com
Managing Director: Mr. Nareshkumar Hirachand Surana
Incorporated on: 15th December,1992.
Organization: Private Limited Company.
Capital: Nominal:
HK$200,000.00
Issued: HK$200,000.00
Business Category: Diamond
Trader.
Employees: 8.
Main Dealing Banker: ABN AMRO
Bank N.V., Hong Kong Branch.
Banking Relation: Good.
Registered Head
Office:-
Unit 1103, 11/F., Tower B, Hunghom Commercial Centre, 37 Ma Tau Wai
Road, Hung Hom, Kowloon, Hong Kong.
Holding Company:-
Egon Diamond S.a.r.l., Luxembourg.
Associated
Companies:-
Aryea International Ltd., Mauritius.
Cavrois Uni-D S.A., France.
D Delight LLC, US.
DIA-CUT D.C.W. Co. Ltd., Thailand.
Diarough (Shanghai) Diamonds Ltd., China.
Diarough Canada Sales Inc., Canada.
Diarough European Sales NV, Belgium.
Diarough Fareast Holdings Pte. Ltd., Singapore.
Diarough Management SARL, Luxembourg.
Diarough Middle East DMCC, UAE.
Diarough N.V., Belgium.
Diarough SICAR SCA, Luxembourg.
Diarough Sourcing SA, Luxembourg.
Egon African Holding Ltd., Mauritius.
Egon Finance International SA., Luxembourg.
Egon Finance S.A., Luxembourg.
Egon Holding S.A., Luxembourg.
Egon International Inc., US.
Egon jewellery S.A., Luxembourg.
Egon Re S.A, Luxembourg.
Emby International Inc., US.
Mahendra Brothers Exports Pvt. Ltd., India.
New Heritage Ltd., Hong Kong.
Sixth Dimension LLC, US.
Sixth Dimension SA, Luxembourg.
Superior Diamonds Pty. Ltd., Australia.
Teemanee Manufacturing Co. Pty. Ltd., Botswana.
Uni-Creation Inc, US.
Uni-Design Elite Jewellery Pvt. Ltd., India.
Uni-Design Europe BVBA, Belgium.
Unidesign Fareast Ltd., Hong Kong.
Uni-Design Jewellery India Pvt. Ltd., India.
Unidesign Jewellery Pvt. Ltd., India.
etc.
16799407
0394538
Managing Director: Mr. Nareshkumar Hirachand Surana
Contact Person: Ms. Hima Prince
Nominal Share Capital: HK$200,000.00
(Divided into 200,000 shares of HK$1.00 each)
Issued Share Capital: HK$200,000.00
(As per registry
dated 15-12-2013)
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Name |
|
No. of shares |
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Egon Diamond S.a.r.l. 20 rue Eugene Ruppert, L-2453, Luxembourg. |
|
200,000 ====== |
(As per registry
dated 15-12-2013)
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Name (Nationality) |
Address |
|
Nareshkumar Hirachand SURANA |
House 37, Boulevard Du Palais, The Beverly Hills, 23 Sam Mun Tsai
Road, Tai Po, New Territories, Hong Kong. |
|
Nishit Mahendra Kumar PARIKH |
Room 1103, 11/F., Tower B, Hunghom Commercial Centre, 37 Ma Tau Wai
Road, Hunghom, Kowloon, Hong Kong. |
(As per registry
dated 15-12-2013)
|
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 on 15th December,1992 as a private limited
liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Harbour Diamond
Investment Ltd., name changed to the present style on 4th May, 1993.
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.
Employees: 8.
Commodities Imported: India,
Belgium, other Asian countries, etc.
Markets: Hong
Kong, China, other Asian countries, Europe, North America, etc.
Terms/Sales: L/C, Advanced T/T, etc.
Terms/Buying: L/C, D/P, O/A, etc.
MEMBERSHIP: Hong
Kong Jewelry Manufacturers’ Association, Hong Kong.
Hong Kong
Jewellery & Jade Manufacturers Association, Hong Kong.
[Membership No. #AM083-00]
The Hong Kong General
Chamber of Commerce, Hong Kong.
[Membership No.: HKD0651]
The Indian Chamber
of Commerce Hong Kong, Hong Kong.
Nominal Share Capital: HK$200,000.00
(Divided into 200,000 shares of HK$1.00 each)
Issued Share Capital: HK$200,000.00
Indebtedness: US$175,000,000
(Total amount outstanding on all mortgages and charges as per last Annual Return dated 15-12-2013)
Mortgage or Charge:-
Date of Security Agreement (Subservicer collection account): 28-09-2012
Amount: As a continuing
security for the discharge on the Security Agent’s demand of the Secured Obligations and compliance on the Security
Agent’s demand with the provisions of the Agency Agreement dated 28th
September, 2012
Property: As
beneficial owner, charges the Account to the Security Agent by way of first
fixed charge as follow:-
Bank: ABN-AMRO
BANK N.V.
Address: 14/F.,
Lincoln House, 979 King’s Road, Quarry Bay, Hong Kong.
Account Name: Diarough (Hong Kong) Ltd.
US$ Saving Account No.: 60-48-900
US$ Current Account No.: 60-48-889
HK$ Savings Account No.: 60-48-900
HK$ Current Account No.: 60-48-889
Mortgagee: The
Bank of New York Mellon
101 Barclay Street, 4 East, New York 10286
Profit or Loss: Making
a small profit every year.
Condition: Keeping in a good condition.
Facilities: Making rather active use of
general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Bankers:-
ABN AMRO Bank N.V., Hong Kong Branch.
The Bank of New York Mellon, New York.
Standing: Very Good.
Diarough (Hong Kong) Ltd. is a wholly-owned subsidiary of Egon Diamond
S.A. which is a Luxembourg-registered company.
The subject is a member of Diarough Group [Diarough/Group] of companies while
the core member is Diarough N.V., a Belgium-based firm. The directors of the subject are also the
founders and CEOs of Diarough N.V.
The managing director of the subject is Mr. Nareshkumar Hirachand
Surana.
The subject is trading in the same commodities of Diarough. It is trading in almost all qualities and
sizes- from “stars” to large special stones.
Main products are the followings:-
Loose diamonds, diamond set, fancy diamonds, 2.67, 2.50, 4.01 carat
loose diamonds, all kinds of ladies’ jewellery, etc.
It also has GIA, HRD, AGS & IGI laser inscribed certified
stones. On the other hand, it is able to
provide outstanding new cuts for individual customers. The subject markets its products in Hong
Kong, China and exports to Australia, Japan, Taiwan, Southeast Asia, the Middle
East, etc. Business is active.
Diarough is also one of the world’s leading manufacturers of Natural
Fancy colour diamonds.
Diarough N.V. operates as a diamond dealer in Belgium and
internationally. It designs,
manufactures, and supplies diamond jewellery.
The company offers fancy colour diamonds and white diamonds. It sells its products to manufacturers,
polished diamond wholesalers, and diamond jewellery retailers. The company has
factories in India, Thailand, Botswana, South Africa, and Canada. Diarough N.V. was founded in 1960 and is
based in Antwerp, Belgium.
Diarough sources its rough diamonds from all major international miners
including DTC, BHP and Rio Tinto.
Now, Diarough has set up associated companies in many countries of the
world. Business is active and
significant.
Diarough (Shanghai) Diamonds Ltd. in Shanghai, China is one of the
associates of Diarough. This company is
a member of Shanghai Diamond Exchange.
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 took part in
‘Basel World 2014’ which was held in Switzerland.
Besides, it is going to take part in “HKTDC Hong Kong International Diamond,
Gem & Pearl Show 2015” which will be held in Hong Kong AsiaWorld-Expo,
Lantau, Hong Kong during the period of 2nd to 6th March, 2015. Its booth No. is AWE 2-R10.
The subject has had another associated company New Heritage Ltd. [NHL]
which is located at the next door of the subject. The managing director of NHL is also Mr.
Nareshkumar Hirachand Surana. NHL is
trading in all kinds of jewellery watches.
The contact person of the subject is Ms. Hima Prince. Annual sales turnover is very significant. History in Hong Kong is over 22 years.
On the whole, consider the subject 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.62.97 |
|
|
1 |
Rs.94.97 |
|
Euro |
1 |
Rs.74.43 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
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Report Prepared
by : |
NIT |
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 |
|
|
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 |
|
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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.