MIRA INFORM REPORT

 

 

Report No. :

303337

Report Date :

15.01.2015

 

IDENTIFICATION DETAILS

 

Name :

DIAGEMS  TRADING  COMPANY

 

 

Registered Office :

Room 706, 7/F., Hart Avenue Plaza, 5-9A Hart Avenue, Tsimshatsui, Kowloon,

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

01.04.1981

 

 

Com. Reg. No.:

07143871-000-04

 

 

Legal Form :

Partnership Concern

 

 

Line of Business :

Subject was one of the oldest diamond trading companies in Hong Kong.  It was a loose diamond, gemstone and jade importer, exporter and wholesaler.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

C

 

RATING

STATUS

PROPOSED CREDIT LINE

<10

C

Absolute credit risk exists. Caution needed to be exercised

Credit not recommended

 

Status :

Business Ceased

Payment Behaviour :

--

Litigation :

--

 

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)

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

Company name

 

DIAGEMS  TRADING  COMPANY

 

 

ADDRESS

 

Head Office:-

Room 706, 7/F., Hart Avenue Plaza, 5-9A Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.

 

Mailing Address:-

P.O. Box 95305, Tsimshatsui, Kowloon, Hong Kong.

 

Associated Companies:-

Diagems Trading Ltd., Hong Kong.  (Same address)

Samkit Diamonds Exporters, India.

 

 

DATE OF ESTABLISHMENT

 

1st April, 1981.

 

 

BUSINESS REGISTRATION NUMBER

 

07143871-000-04

 

 

MANAGEMENT

 

Manager:  Amishkumar Ramniklal Sheth

 

 

SOLE PROPRIETOR

 

Name:  Amishkumar Ramniklal SHETH

Residential Address:     Flat B7, 5/F., Block B, Hankow Centre, 4A Ashley Road, Tsimshatsui, Kowloon, Hong Kong.

HISTORY

 

The subject was established on 1st April, 1981 as a partnership concern jointly owned by three Indian under the Hong Kong Business Registration Regulations.

The following table shows the changes of the partners:-

Name

Incoming Date

Outgoing Date

Hemkapub Ramanlal PATEL

01-04-1981

30-09-1984

Ashokkumar Hiralal PATEL

01-04-1981

02-03-1999

Jyostnaben Ashokkumar PATEL

01-04-1981

02-03-1999

Mukund Himatlal ZAVERI

15-05-1989

31-03-1994

Avnissh Ashok PATEL

15-06-1997

15-08-1997

Amishkumar Ramniklal SHETH

01-03-1999

30-09-2014

 

Now the subject is a sole proprietorship.

Initially the subject was located at Room 33, 2/F., Mirador Mansion, 58 Nathan Road, Tsimshatsui, Kowloon, Hong Kong, moved to Room 59, 2/F. of the same building in June 1981; to Flat 3A, 3/F., Bo Yip Building, 6 Ashley Road, Tsimshatsui, Kowloon, Hong Kong in August 1988; to Flat B7, 5/F., Block B, Hankow Centre, 4A Ashley Road, Tsimshatsui, Kowloon, Hong Kong in May 1999; to Flat G & H, 12/F., Union Mansion, 33‑35 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong in August 2003; and further moved to Room 706, 7/F., Hart Avenue Plaza, 5-9A Hart Avenue, Tsimshatsui, Kowloon, Hong Kong in April 2008.

The subject ceased business formally on 30th September, 2014.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

GENERAL

 

Please be advised that Diagems Trading Company has ceased business since 30th September, 2014.

The subject was a sole proprietorship owned by Amishkumar Ramniklal Sheth who was an Indian.  Sheth joined in the subject in March 1999.

Business commenced in April 1981, the subject was one of the oldest diamond trading companies in Hong Kong.  It was a loose diamond, gemstone and jade importer, exporter and wholesaler.

 

Currently, the subject had manufactured the following commodities and offered clients with the following services:-

Product/Service

Product/Service Remarks

Fine Jewellery

 

Diamond

Cut and polished diamonds, from 0.005cts to 0.50 cts, size shapes: brilliant, tapper, bugget, princess, marquise, pears (Importer)

Cut and polished diamonds, from 0.005 cts to 0.50 cts, size shapes: brilliant, tapper, bugget, princess, marquise, pears (Exporter)

Cut and polished diamonds, from 0.005 cts to 0.50 cts, size shapes: brilliant, tapper, bugget, princess, marquise, pears (Wholesaler)

Gemstones and Jade

Fine jewellery: white 6 yellow gold with diamonds (Importer)

Fine jewellery: white 6 yellow gold with diamonds (Exporter)

Fine jewellery: white 6 yellow gold with diamonds (Wholesaler)

 

The subject’s cut and polished diamonds bore the brand name of “DTC”.  Prime markets were the United States, the Philippines, Taiwan, Singapore, Indonesia, Switzerland, Central & South America, etc.

The subject had an associated company Diagems Trading Ltd., a Hong Kong-registered company located at the same address.

 

The subject’s business was chiefly handled by Sheth himself.  However, the subject ceased business formally on 30th September, 2014 and Sheth retired on the same date.

Since the subject has ceased business, consider it not suitable for any 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.62.15

UK Pound

1

Rs.94.24

Euro

1

Rs.73.30

 

INFORMATION DETAILS

 

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%)

 

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