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Report No. : |
327008 |
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Report Date : |
16.06.2015 |
IDENTIFICATION DETAILS
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Name : |
R.K. DIAM LTD. |
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Registered Office : |
Flat A, 17/F., Dorfu Court, 5-6 Hau Fook Street, Tsimshatsui, Kowloon |
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Country : |
Hong Kong
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Date of Incorporation : |
02.02.2012 |
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Com. Reg. No.: |
59381869 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of All Kinds of Diamonds |
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No. of Employees : |
01 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Company |
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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
|
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 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.
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Source
: CIA |
R.K. DIAM LTD.
ADDRESS: Flat A, 17/F., Dorfu
Court, 5-6 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-9239 0867
E-MAIL: rkdiamhk@gmail.com
MANAGEMENT:
Managing Director: Mr. Kirankumar
Babulal Shah
Incorporated on: 2nd February,
2012.
Organization: Private Limited
Company.
Issued Share Capital: HK$500,000.00
Business Category: Diamond
Trader.
Employees: 1.
Main Dealing Banker: The Hong
Kong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
R.K. DIAM LTD.
Registered Head
Office:-
Flat A, 17/F., Dorfu Court, 5-6 Hau Fook Street, Tsimshatsui, Kowloon,
Hong Kong.
Associated
Company:-
K. B. Gems, India.
59381869
1702809
Managing Director: Mr. Kirankumar
Babulal Shah
Contact Person: Mr. Vipul Padia
HK$500,000.00
(As per registry dated 02-02-2015)
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Name |
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No. of shares |
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Kirankumar Babulal SHAH |
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275,000 |
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Bhavik Kirankumar SHAH |
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225,000 |
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––––––– |
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Total: |
500,000 ====== |
(As per registry dated 02-02-2015)
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Name (Nationality) |
Address |
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Bhavik Kirankumar SHAH |
2/12, Rekha C.H.S. Ltd. Building No. 2, B.G. Kher Marg, Walkeshwar,
Mumbai-400006, India. |
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Kirankumar Babulal SHAH |
2/12, Rekha C.H.S. Ltd. Building No. 2, B.G. Kher Marg, Walkeshwar,
Mumbai-400006, India. |
(As per registry dated 02-02-2015)
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Name |
Address |
Co. No. |
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Pan Pacific Consultants Ltd. |
Room 1207, 12/F., Wing Tuck Commercial Centre, 177-183 Wing Lok
Street, Sheung Wan, Hong Kong. |
1254491 |
The subject was incorporated on 2nd February, 2012 as a private limited liability
company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room 1207, 12/F., Wing Tuck
Commercial Centre, 177-183 Wing Lok Street, Sheung Wan, Hong Kong where
was the operating office of a commercial service provider Pan Pacific
Consultants Ltd. It moved to the present
address in November 2013.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All kinds of
diamonds.
Employees: 1.
Commodities Imported: India, other
Asian countries.
Markets: Hong Kong,
other Asian countries, Western Europe.
Terms/Sales: CAD, L/C, T/T.
Terms/Buying: L/C, Advanced T/T.
Issued Share Capital: HK$500,000.00
Profit or Loss: Made a small
profit in 2014.
Condition: Business is
improving.
Facilities: Making use of
general banking facilities.
Payment: Met trade commitments as
required.
Commercial Morality: Satisfactory
Banker: The Hong Kong &
Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Having issued 500,000 ordinary shares of HK$1.00 each, R.K. Diam Ltd. is
jointly owned by Mr. Kirankumar Babulal Shah, holding 55% interests; and Mr.
Bhavik Kirankumar Shah, holding 45%.
They are also directors of the subject.
Both are India passport holders and do not have the right to reside in
Hong Kong permanently. Currently
residing in Mumbai, India, the two Shahs belong to the same family.
The subject’s old registered office was in a commercial service firm
located at Room 1207, 12/F., Wing Tuck Commercial Centre, 177-183 Wing Lok
Street, Sheung Wan, Hong Kong known as Pan Pacific Consultants Ltd.. Now, it has moved to Flat A, 17/F., Dorfu
Court, 5-6 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong where is in a
residential building. The residential
building is not trespassed by outsiders.
According to your given Hong Kong mobile phone number 852-9239 0876, we
can reach the representative Mr. Vipul Padia in Hong Kong. Mr. Vipul Padia is handling the business of
the subject.
The subject is a diamond importer, exporter and wholesaler. It is trading in loose, polished and cut
diamonds. Most of the commodities are
imported from India. Prime markets are
Hong Kong, China and the other Asian countries.
Business keeps on improving.
The subject has been partnering with Diamank which is serving as a
Solitaire Diamond Tender platform.
Diamank is created to multiply the marketing efforts with a synergy
between four Solitaire Diamond manufacturers, namely, Mahima Gems, A. Lallubhai
& Brothers, M/s. Chaitya and the subject.
Diamank serves as a Solitaire Diamond Tender platform where goods from
all its four partner companies will be available for viewing and bidding. Everything will work on the basis of the
“Diamank Tender Terms & Conditions” and internal policies, making all
partners equally responsible for everything that happens at Diamank.
The subject history in Hong Kong is over three years and four months.
On the whole, consider the subject good for normal business engagements
in small 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
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Currency |
Unit
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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
: |
DIV |
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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.