MIRA INFORM REPORT

 

 

Report No. :

305449

Report Date :

30.01.2015

 

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 :

·         engaged as a diamond trader

Engaged as 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

 

 

 

 


Company Name and address

 

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

 

 

MANAGEMENT

 

Managing Director:         Mr. Darshan Jivatlal Bhagat

 

 

SUMMARY

 

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.

 

 


company ADDRESS

 

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.

 

 

BUSINESS REGISTRATION NUMBER

 

30872168-000

 

 

COMPANY FILE NUMBER

 

0713048

 

 

MANAGEMENT

 

Managing Director:  Mr. Darshan Jivatlal Bhagat

Contact Person:  Ms. Ceicludia Yip

 

 

ISSUED SHARE CAPITAL

 

HK$12,880,623.00

 

 

SHAREHOLDERS

(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

========

 

 

DIRECTORS

(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.

 

 

SECRETARY

(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

 

 

HISTORY

 

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.

 

 

OPERATIONS

 

Activities:                      Importer and Processor.

 

Lines:                           All kinds of raw materials for diamond, precious stones, sapphire & ruby.

 

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.

 

 

FINANCIAL INFORMATION

 

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.

 

 

GENERAL

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 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.

 

 

REMARKS

 

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

 

 

MORTGAGE OR CHARGE

(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$2,646,734.84           04-05-2011
170153  04-05-2011        HK$  354,000.00            04-05-2012

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:
(a)        assigns to the Bank to the following assets: (i) Export Credits; (ii) Export Collection Bills: (iii) Sales Contracts; (iv) Invoice Receivables: (v) Insurances; (vi) Trade Documents; and (vii) all claims
(b) charges to the Bank to the following assets: (i) the Goods together with their proceeds; and (ii) the Deposit
(c) pledges to the Bank the Pledged Goods and the Trade Documents

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


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.50

UK Pound

1

Rs.93.12

Euro

1

Rs.69.33

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

MNL

 

 

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.