|
Report No. : |
302239 |
|
Report Date : |
13.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
CHINA DIAMOND CORPORATION LTD. |
|
|
|
|
Registered Office : |
Room 911-912, 9/F., Heng Ngai Jewelry Centre, 4 Hok Yuen Street, Hunghom, Kowloon |
|
|
|
|
Country : |
Hongkong |
|
|
|
|
Date of Incorporation : |
17.04.2000 |
|
|
|
|
Com. Reg. No.: |
30872168-000 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer and
Processor of all kinds of Raw Materials for Diamond, Precious Stones,
Sapphire, Ruby. |
|
|
|
|
No. of Employees : |
17 |
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 : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
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 |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 |
CHINA DIAMOND CORPORATION LTD.
ADDRESS: Room 911-912, 9/F., Heng Ngai
Jewelry Centre, 4 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2521 0029,
2521 0026, 2375 8018, 2736 6040
FAX: 852-2521
0019
E-MAIL: info@chinadia.com
Managing Director: Mr. Darshan Jivatlal Bhagat
Incorporated on: 17th April, 2000.
Organization: Private Limited Company.
Issued Share Capital: HK$12,880,623.00
Business Category: Diamond
Importer and Processor.
Employees: 17.
Main Dealing Banker: Dah Sing
Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 911-912, 9/F., Heng Ngai Jewelry Centre, 4 Hok Yuen Street,
Hunghom, Kowloon, Hong Kong.
Business Name::-
C D (Belgium) Company, Hong Kong.
[BR No. 30872168-001]
Holding Company:-
C D Jewels International Ltd., British Virgin Islands.
Shanghai Company:-
China Diamond (Shanghai) Corporation Ltd.
Room A511, China Diamond Exchange Center, 1701 Century Avenue, Pudong,
Shanghai 200122, China.
[Tel: (86-21) 6128 0738; Fax:
(86-21) 6182 0731]
Zhuhai Factory:-
3/F., 8 The Tenth Ping Xi Road, Nan Ping Hi-Tech Industrial Area, Zhuhai
SEZ, China.
Associated/Affiliated
Companies:-
16 Diamonds.com Ltd., Hong Kong. (Same address)
Bei Wah Diamante (Macau) Limitada, Macau.
C.D. Jewels DMCC, UAE.
C.D. Jewels, India.
Jewellery Collection (Holdings) Ltd., Hong
Kong.
Jewellery Collection Co., Hong Kong.
[Owned by Mr. Yau Kung Wan (BR No. 16971156-000)]
Jewellery Collection Group Ltd., Hong Kong.
[Dissolved]
[Also trading as Jewellery Collection Co. (BR No. 17517709-001)]
Jewellery Collection International Ltd.,
Hong Kong.
Jewellery Collection Manufacturer Ltd., Hong
Kong.
30872168-000
0713048
Managing Director: Mr. Darshan Jivatlal
Bhagat
Contact Person: Ms. Ceicludia Yip
HK$12,880,623.00
(As per registry
dated 17-04-2014)
|
Name |
|
No. of shares |
|
C D Jewels International Ltd. P. O. Box 957, Offshore Incorporations Centre, Road Town, Tortola,
British Virgin Islands. |
|
12,880,623 ======== |
(As per registry
dated 17-04-2014)
|
Name (Nationality) |
Address |
|
Darshan Jivatlal BHAGAT |
Flat A, 25/F., Block 6, Parc Palais, 18 Wylie Road, Ho Man Tin,
Kowloon, Hong Kong. |
|
YAU Kung Wan |
House 22, Valais I, Interlaken Avenue, 28 Kwu Tung Road, Sheung Shui,
New Territories, Hong Kong. |
(As per registry
dated 17-04-2014)
|
Name |
Address |
Co. No. |
|
Professional Company Secretary Ltd. |
Room 22-23, 15/F., Hollywood Plaza, 610 Nathan Road, Mongkok,
Kowloon, Hong Kong. |
1886121 |
The subject was incorporated on 17th April, 2000 as a private limited liability
company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room 803, 8/F., Dragon Seed
Building, 39 Queen’s Road Central, Hong Kong, moved to Room 502, 5/F.,
Wing On House, 71 Des Voeux Road Central, Hong Kong in February 2007, to Room
407-409, 4/F., Tower B, Hunghom Commercial Centre, 37-39 Ma Tau Wai Road,
Hunghom, Kowloon, Hong Kong in February 2009, and further moved to the present
address with effect from 26th April, 2011.
The subject registered its Chinese name on 9th June, 2000.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer
and Processor.
Lines: All
kinds of raw materials for diamond, precious stones, sapphire, ruby, etc.
Brand Name: J.C.
Employees: 17.
Materials/Commodities: Imported
from Europe, South Africa, India, etc.
Markets: Southeast
Asia, Japan, Europe, Middle East, etc.
Terms/Sales: L/C, T/T, D/A, etc.
Terms/Buying: L/C, T/T, D/P, D/A, etc.
Issued Share Capital: HK$12,880,623.00
Indebtedness: HK$
16,091,249.33 (Total amount outstanding on all mortgages and charges as per
last Annual Return dated 17-04-2014)
Mortgage or Charge (since 2008):
(See attachment)
Profit or Loss: Making
a small profit every year.
Condition: Business
is active.
Facilities: Making
active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Satisfactory.
Bankers:-
Dah Sing Bank Ltd., Hong Kong.
Bank of India, Hong Kong Branch.
China Construction Bank (Asia) Corporation
Ltd., Hong Kong.
CITIC Bank International Ltd.,
Hong Kong.
DBS Bank (Hong Kong) Ltd.,
Hong Kong.
Standard Chartered Bank (Hong Kong)
Ltd., Hong Kong.
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Good.
China Diamond Corporation Ltd. is a private limited company incorporated
in April 2000. Formerly the subject had
just issued 2 ordinary shares of HK$1.00 each while the shareholders Mr.
Darshan Jivatlal Bhagat and Mr. Tso Wing Ching each held one share
respectively. On 20th March, 2001, the
subject created 859,034 ordinary shares more and on the same date, 558,321
shares were allotted to Bhagat while 300,662 shares were allotted to Tso.
The subject had been reshuffled and increased its issued share capital
again. It had been jointly owned by
Bhagat, holding 65%, and Mr. Yau Kung Wan, a Hong Kong businessman holding
35%. On 23rd April, 2013, Yau and Bhagat
transferred all their shares to C D Jewels International Ltd. which is a
BVI-registered company.
Yau and Bhagat are also directors of the subject. Bhagat is a Hong Kong ID card holder.
The subject moved to the present address in April 2011.
The subject is a diamond trader.
Its business name is C D (Belgium) Company. It imports all kinds of raw materials for
diamond, precious stones, sapphire, ruby, etc. from Europe, South Africa,
Cambodia, India, other Asian countries, etc.
However, India is the subject’s main supplying country. After processing, the finished products such
as necklaces, bangles, etc. are marketed in Hong Kong, exported to China,
India, Japan, Southeast Asia, the Middle East, Europe, etc. However, Belgium seems to be the prime market
of the subject. The significant products
of the subject are loose diamond and carat diamonds.
Long time ago, the subject just exported its products to India
only. Now, its products are exported to
over ten countries. Overall business is
steady.
The subject’s products have got the following certifications: GIA, the
IGI, and HRD.
In Hong Kong, the subject has had about 17 employees.
The subject has set up a company in Shanghai, China known as China
Diamond (Shanghai) Corporation Ltd. in order to penetrate the China market
further. The Shanghai Company is located
at Room A511, China Diamond Exchange Center, 1701 Century Avenue, Pudong,
Shanghai.
The subject also has had associated companies in Bombay of India and
Dubai of the United Arab Emirates.
The subject has set up a factory in Zhuhai Special Economic Zone, China
engaged in diamonds cutting and polishing.
The factory has about 150 employees.
Another factory in Shenzhen Special Economic Zone, China is manufacturing
J.C. branded jewellery for the subject.
The subject is marketing its own products throughout the world.
Besides the subject, Mr. Yau Kung Wan is also operating another firm
known as Jewellery Collection Co. which is also a jewellery and diamond
trader. This company is located at a
different address.
The principal shareholder of the subject Bhagat is an Indian who has got
close business ties with some of the diamond manufacturers in India. The subject’s business in Hong Kong is
chiefly handled by Yau.
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 Jewellery Show 2015” which will be
held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during
the period of 4th to 8th March, 2015.
Its booth No. is AWE 2-H18.
Besides, the subject has expanded its business by setting up a new firm
known as 16 Diamonds.com Ltd. which is a Hong Kong-registered firm engaged in
online jewellery retailing.
The subject has had two showrooms, one is in its registered address
while the other is located at 16/F., Luk Fook Jewellery Centre, 239 Temple
Street, Jordan, Kowloon, Hong Kong.
A Macau subsidiary Bei Wah Diamante (Macau) Limitada has been set up in
recent years in Macau.
Overall business of the subject is good.
According to the subject, its annual sales turnover is over HK$450
million.
The subject operates from an office owned by itself. The contact person is Ms. Ceicludia Yip who
is a Hongkongnese.
On the whole, having a history of over fourteen years and eight months
in Hong Kong, the subject is considered good for normal business engagements.
Property information of the company:-
Property Location: Workshop Unit 11 & 12 on 9/F., Heng Ngai Jewelry Centre,
4 Hok Yuen Street East, Kowloon, Hong Kong.
Owner: China Diamond Corporation
Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
28-10-2010 |
- |
Standard
Chartered Bank (Hong Kong) Ltd., Hong Kong. |
Legal charge to
secure general banking facilities |
(Since 2008)
|
Date |
Particulars |
Amount |
|
16-05-2008 |
Instrument: Mortgage over Securities and Deposits Property: The Mortgagor, as beneficial owner: (a)
mortgages and agrees to mortgage to the Bank by way of first fixed mortgage
the Mortgagor’s entire right, title and interest in and to the Securities and
the Related Rights; and (b) charges and agrees to charge by way of first
fixed charge the Mortgagor’s entire right, title and interest in and to the
Deposit Mortgagee: CITIC Ka Wah Bank Ltd.,
Hong Kong. [Now known as CITIC
Bank International Ltd.] |
As a continuing
security for the Secured Liabilities |
|
21-01-2010 |
Instrument: Security Agreement over Bank Account Property: By way of a first fixed charge all of the
Chargor’s rights in respect of any amount standing to the credit of the
Account from time to time and the debt represented by it Mortgagee: Standard Chartered Bank
(Hong Kong) Ltd., Hong Kong. |
To secure the
payment and satisfaction of all present and future obligations and
liabilities |
|
28-10-2010 |
Instrument: Legal Charge/Mortgage Property: 56/4,978th parts or shares of and in
Section D of Kowloon Marine Lot No. 113 (Workshop Unit 11 & 12 on 9/F. of
Heng Ngai Jewelry Centre, 4 Hok Yuen Street East, Kowloon, Hong Kong.) Mortgagee: Standard Chartered Bank
(Hong Kong) Ltd., Hong Kong. |
To secure the
due and punctual payment of the Secured Indebtedness |
|
04-04-2011 |
Instrument: Charge on Cash Deposit to secure
Liabilities of the Depositor Property: 1) By
way of first fixed charge and agreement to charge: the Deposit and all right,
title and interest of the Company 2) By
way of set-off: any sum standing to the credit of any one or more of the
accounts of the Company with the Bank Mortgagee: DBS Bank (Hong Kong) Ltd.,
Hong Kong. |
All sums of
money and liabilities |
|
04-05-2011 |
Instrument: Letter of Set-off and Appropriation Property: Deal No. Date Amount Due Date 163097 04-05-2010 HK$2,646,734.84 04-05-2011 Mortgagee: Bank of India, Hong Kong Branch. |
Advances and
other banking facilities |
|
16-05-2011 |
Instrument: Security Agreement over Securities Property: 1) By
way of first fixed charge: (a) all Specified Securities which are on the date
of the Security Agreement the Chargor’s property; (b) all Specified
Securities in which the Chargor may in the future acquire an interest; (c)
all Related Rights of a capital nature on the date of the Security Agreement;
(d) all Related Rights of an income nature on the date of the Security
Agreement; and (e) where Specified Securities are held in a Relevant System;
and 2) By
way of assignment, all the Chargor’s rights, title and interest, present and
future, in and to any Specified Securities and any Related Rights Mortgagee: Standard Chartered Bank
(Hong Kong) Ltd., Hong Kong. |
To secure the
payment and satisfaction of all present and future obligations and
liabilities |
|
14-06-2012 |
Instrument: Deposit Deed Property: By way of a first fixed charge and as a
continuing security for the Obligations, the Company charges and assigns
absolutely all its rights, title to and interest in the Accounts and all
Deposits from time to time in the Accounts and/or comprising the Accounts. Mortgagee: Citibank N.A., Hong Kong Branch. |
All moneys |
|
17-09-2012 |
Instrument: Trade Finance Security Assignment Property: The Borrower as beneficial owner: Mortgagee: CITIC Bank International Ltd.,
Hong Kong. |
As security for
the payment of all Secured Liabilities. |
|
25-09-2013 |
Instrument: Charge Over Account Property: Each time deposit which is now or at any
time in the future maintained in the name of the chargor with the Bank Mortgagee: China Construction Bank (Asia)
Corporation Ltd., Hong Kong. |
All present and
future obligations and liabilities of China Diamond Corporation Ltd. to the
Bank |
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.62.16 |
|
|
1 |
Rs.94.28 |
|
Euro |
1 |
Rs.73.73 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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 |
|
|
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.