MIRA INFORM REPORT

 

 

Report No. :

325746

Report Date :

05.06.2015

 

IDENTIFICATION DETAILS

 

Name :

JEEL DIAM LTD.

 

 

Registered Office :

Room 1503, 15/F., Rise Commercial Building, 5-11 Grannville Circuit, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

13.01.2010

 

 

Com. Reg. No.:

51675185

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of Diamonds.

 

 

No. of Employees :

3

 

 

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 40.7 million in 2013, 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 48.5% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56.9% 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. As of year-end 2014, the Democracy protests that began in late September probably will have some adverse effects on economic growth, particularly retail sales.

 

 

Source : CIA

 

 

Company name and address

 

JEEL  DIAM  LTD.

 

Address:                       Room 1503, 15/F., Rise Commercial Building, 5-11 Grannville Circuit, Tsimshatsui,  Kowloon, Hong Kong.

 

Phone:                          852-3114 7994

Fax:                              852-3114 7995

E-Mail:                          jeeldiamltd@hotmail.com

                                    rnbhadiyadra@hotmail.com  

 

 

MANAGEMENT

 

Managing Director:        Mr. Rajeshkumar Naranbhai Bhadiyadra

 

 

SUMMARY

 

Incorporated on:            13th January, 2010.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     HK$8,000,000.00

 

Business Category:       Diamond Trader.

 

Employees:                  3.

 

Main Dealing Banker:    The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:          -

 

 

ADDRESS

 

Registered Head Office:-

Room 1503, 15/F., Rise Commercial Building, 5-11 Grannville Circuit, Tsimshatsui, Kowloon, Hong Kong.

 

 

Associated Companies:-

Hind Gems B.V.B.A., Belgium.

Pankaj Diamond, India.

SRB Diam (H.K.), Hong Kong.

SRB Diam Inc., USA.

Sumit Diam (HK) Ltd.

Flat A, 7/F., Houng Sun Building, 45-47 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

51675185

 

 

COMPANY FILE NUMBER

 

1410843

 

 

MANAGEMENT

 

Managing Director:        Mr. Rajeshkumar Naranbhai Bhadiyadra

 

 

ISSUED SHARE CAPITAL

 

HK$8,000,000.00

 

 

SHAREHOLDERS

(As per registry dated 13-01-2015)

 

Name

 

No. of shares

Umesh Vallabhbhai BHADIYADRA

 

1,000,000

Rajeshkumar Naranbhai BHADIYADRA

 

7,000,000

 

 

–––––––––

 

Total:

8,000,000

========

 

DIRECTORS

(As per registry dated 13-01-2015)

 

Name

(Nationality)

 

Address

Rajeshkumar Naranbhai BHADIYADRA

Flat A, 7/F., Houng Sun Building, 45-47 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong.

 

Umesh Vallabhbhai BHADIYADRA

7 Mahaeshwar Soc., Near Baroda Pristage Varachha Road, Surat, India.

 

 

SECRETARY 

(As per registry dated 13-01-2015)

 

Name

Address

Co. No.

Champion Corporate Ltd.

Unit 907, 9/F., Silvercord Tower 2, 30 Canton Road, Tsimshatsui, Kowloon, Hong Kong.

0657221

 

 

HISTORY

 

The subject was incorporated on 13th January, 2010 as a private limited liability company under the Hong Kong Companies Ordinance.

 

The subject was formerly located at Room 515, 5/F., Tower A, New Mandarin Plaza, 14 Science Museum Road, Tsimshatsui East, Kowloon, Hong Kong.  Moved to Unit A, 8/F., Kam Chung Commercial Building, 19‑21 Hennessy Road, Wanchai, Hong Kong in May 2012.

 

The subject moved to the present address in late 2012.

 

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

 

 

OPERATIONS

 

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of diamonds

 

Employees:                  3.

 

Commodities Imported: India, other Asian countries

 

Markets:                        Hong Kong, China, other Asian countries, Europe

 

Terms/Sales:                 L/C, T/T

 

Terms/Buying:               L/C, T/T, D/P

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:     HK$8,000,000.00

Date of Security Over Deposits with the Bank:  06-11-2012

Amount:                        To secure all monies in respect of banking facilities owing at any time plus interest and all  expenses.

 

Property:                      Initially US$500,000 or equivalent and all monies whether now or hereafter standing to  the credit of the Company’s deposit with the Bank under deposit number: 053-082996

 

Mortgagee:                   The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Profit or Loss:               Made a small profit in 2014.

 

Condition:                     Keeping in a normal manner.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

Banker:                         The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:                      Small.

 

 

GENERAL

 

Jeel Diam Ltd. formerly was wholly-owned by Mr. Pankaj Himatbhai Bhadiyadra who was an Indian.  On 8th March, 2010, P. H. Bhadiyadra transferred his share to Mr. Umesh Vallabhbhai Bhadiyadra.  In early 2014, the subject issued 7 million ordinary shares which were allotted to Rajeshkumar Naranbhai Bhadiyadra.  Now, the subject is 12.5% owned by Mr. U V Bhadiyadra and 87.5% owned by Mr. R N Bhadiyadra.

 

Belonging to the same family, the two Bhadiyadras are also directors of the subject.  Being an India passport holder, Mr. U V Bhadiyadra does not have the right to reside in Hong Kong permanently.  However, R N Bhadiyadra is a Hong Kong ID holder.

 

The subject commenced business in January 2010.  It is a diamond trader.  It is trading in GIA certified diamonds, loose polished diamonds, rough diamonds  Most of its products range from 0.01 to 3.00 carats, 1F -1I clarity and D-M colour and in almost all clarities and round shape.

 

The subject has had an associated company SRB Diam (H.K.) which is also a diamond trader.  SRB Diam (H.K.) is a member of SRB Diam Group [SRB Diam].  The subject is engaged in the same lines of business as SRB Diam, more or less.

 

SRB Diam has got its factory in India while its prime markets are China, Hong Kong, and the United States.  Its products include bracelets, brooches, earrings, necklaces, rings, pendants  SRB Diam is one of the leading diamond manufacturing and marketing companies with sales offices in the United Sates and a plant in India.  SRB Diam is the marketing arm of Pankaj Diamond which was established by Mr. R N Bhadiyadra.  Pankaj Diamond is one of the top ten diamond exporters in the non-sightholder category in India.

 

The subject is operated by the Bhadiyadra family.

Currently, SRB Diam has had associated companies in Surat, India and Belgium, besides in the United States.  SRB Diam is specialized in round brilliant diamonds, WS to I2, from 0.01 to 0.5 cts with ideal cut and white in colour.

The subject’s products are provided by SRB Diam in India.  Products are marketed in Asia, Europe and the United States.

 

The subject is fully supported by SRB Diam and Pankaj Diamond in India.  Its history in Hong Kong is over five years and four months.

 

The subject has had another associated company known as Sumit Diam (HK) Ltd. [Sumit Diam] which is also a diamond trader.  This company is located at: Flat A, 7/F., Houng Sun Building, 45-47 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong.  However, this is the residential address of R N Bhadiyadra and Mrs. Shital Bhadiyadra.

 

The contact person of Sumit Diam is Mrs. Shital Bhadiyadra who is a family member of Bhadiyadra.

 

On the whole, consider the subject good for 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.64.17

UK Pound

1

Rs.98.30

Euro

1

Rs.72.25

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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