MIRA INFORM REPORT
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Report No. : |
327382 |
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Report Date : |
16.06.2015 |
IDENTIFICATION DETAILS
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Name : |
K. DIAM LTD. |
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Registered Office : |
Room 404A, 4/F., Fu Hang Industrial Building, 1 Hok Yuen Street East,
Hunghom |
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Country : |
Hong Kong |
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Date of Incorporation : |
30.09.2010 |
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Com. Reg. No.: |
53070428 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trader of diamond |
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No. of Employee : |
4 |
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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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Hong Kong |
A1 |
A1 |
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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 |
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.
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Source
: CIA |
NOTE
(Your enquiry given as:
K DIAM LTD
with former located at:
Unit 1011, 10/F., West Wing, Peninsula Square,
18 Sung On Street, Hunghom, Kowloon, Hong Kong)
Company
name and address
K. DIAM
LTD.
ADDRESS: Room 404A, 4/F., Fu Hang
Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 852-3904
2353
FAX: 852-3904
2354
E-MAIL: smskrishna@yahoo.com
MANAGEMENT
Managing Director: Mr. Krishna
Kalubhai Donda
SUMMARY
Incorporated on: 30th September, 2010.
Organization: Private Limited Company.
Issued Share Capital: HK$10,000,000.00
Business Category: Diamond
Trader.
Employees: 4.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
ADDRESS
Registered Head
Office:-
Room 404A, 4/F., Fu Hang Industrial Building, 1 Hok Yuen Street East,
Hunghom, Kowloon, Hong Kong.
Associated
companies:-
Vanishka Gems & Jewellery DMCC, UAE.
Vishal Gems LLC, UAE.
BUSINESS
REGISTRATION NUMBER
53070428
COMPANY
FILE NUMBER
1510693
MANAGEMENT
Managing Director: Mr. Krishna
Kalubhai Donda
ISSUED
SHARE CAPITAL
HK$10,000,000.00
SHAREHOLDER
(As per registry dated 30-09-2014)
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Name |
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No. of shares |
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Krishna Kalubhai DONDA |
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10,000,000 ======== |
DIRECTOR
(As per registry dated 30-09-2014)
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Name (Nationality) |
Address |
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Krishna Kalubhai DONDA |
Flat E, 30/F., Tower 16, Laguna Verde, Humghom, Kowloon, Hong Kong. |
SECRETARY
(As per registry dated 30-09-2014)
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Name |
Address |
Co. No. |
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Gurung & Shum Business Solutions Ltd. |
Room 406B, 4/F., Mirror Tower, 61 Mody Road, Tsimshatsui East,
Kowloon, Hong Kong. |
1348317 |
HISTORY
The subject was incorporated on 30th September, 2010 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject t was located at Unit 1011, 10/F., West Wing,
Peninsula Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong, moved to the
present address with effect from 26th January, 2015.
Apart from these, neither material change nor amendment has been ever
traced and noted.
OPERATIONS
Activities: Diamond
Trader.
Lines: All
kinds of loose diamonds
Employees: 4.
Commodities Imported: India,
Israel, other European countries
Markets: Asian
countries, the Middle East, Europe, North America
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P,
MEMBERSHIP
Shanghai Diamond Exchanger Association, China.
FINANCIAL
INFORMATION
Issued Share Capital: HK$10,000,000.00
Profit or Loss: Made
a small profit in 2013.
Condition: Business
is rather active.
Facilities: Making
rather active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Normal.
GENERAL
Having issued 10 million ordinary shares of HK$1.00 each, K. Diam Ltd.
is wholly owned by Krishna Kalubhai Donda who is an Indian. He is a Hong Kong ID Card holder and has
got the right to reside in Hong Kong permanently. He is also the only director of the subject.
The subject moved to the present new address in January 2015.
The subject is a loose diamond trader.
It is trading in all kinds of diamonds and diamond jewellery with 18K,
14K and 9K. The subject is famous for
its loose diamonds range from – 2
to + 15.
The subject has had the following two associated companies in the United
Arab Emirates:-
Vanishka Gems & Jewellery DMCC; &
Vishal Gems LLC.
Both firms are located at P O Box 64388, Gold Centre Building, Flat No.
50 , 2/F., Deira, Dubai, the UAE.
Most of the subject’s products are exported to the United Arab Emirates,
China and the other Asian countries.
In recent years, the subject has penetrated the China markets. Recommended by H.K. Exports (Shanghai) Ltd.
and Levavi Diamonds (Shanghai) Co. Ltd. on 11th July, 2014, the subject has
become a member of Shanghai Diamond Exchange Association, China.
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. 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 took part in “HKTDC Hong
Kong International Diamond, Gem & Pearl Show 2015” which had been held in
Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the period of 2nd to 6th
March, 2015. Its booth No. was AWE
1-A11.
Besides, it is taking part in “HKTDC Hong Kong International Jewellery
Show 2015” which is held in Hong Kong Convention and Exhibition Centre,
Wanchai, Hong Kong during the period of 5th to 9th March, 2015.
The subject’s business is chiefly handled by Krishna Kalubhai Donda
himself. History is over four years and
five months. Business is normal.
On the whole, consider the subject good for normal business engagements
in moderate credit amounts.
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.64.09 |
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|
1 |
Rs.99.57 |
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Euro |
1 |
Rs.71.84 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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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 |
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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 |
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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.