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Report No. : |
313533 |
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Report Date : |
31.03.2015 |
IDENTIFICATION DETAILS
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Name : |
FAIRDIAM |
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Registered Office : |
Room 1001, 10/F., Golden Dragon Centre, 38-40 Cameron Road,
Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
19.08.2005 |
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Com. Reg. No.: |
35937139-000-03 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler; Commission Agent of All kinds of diamond, gemstone and jeweler. |
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No. of Employee : |
18. (Including associate) |
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
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
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.
|
Source
: CIA |
FAIRDIAM
Address: Room 1001,
10/F., Golden Dragon Centre,
38-40 Cameron Road, Tsimshatsui,
Kowloon, Hong Kong.
(Operating Office)
And
c/o Hong Kong Accounting Co.
7/F., Hong Kong Trade Centre,
161-1677 Des Voeux Road Central,
Hong Kong.
(Registered Address)
ADDRESS: Room 1001, 10/F., Golden
Dragon Centre, 38-40 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2367
1144, 2334 5550
FAX: 852-2334 4449
Manager: Mr. Gaurang Ramesh
Paymaster
Establishment: 19th August, 2005.
Organization: Sole
Proprietorship.
Capital: Not Disclosed.
Business Category: Diamond Trader.
Employees: 18. (Including associate)
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered
Office:-
c/o Hong Kong Accounting Co.
7/F., Hong Kong Trade Centre, 161-167 Des Voeux Road Central, Hong Kong.
Operating Office:-
Room 1001, 10/F., Golden Dragon Centre, 38-40 Cameron Road,
Tsimshatsui, Kowloon, Hong Kong.
Associated
Companies:-
Crystural Gems, Hong Kong. (Same
address)
Nuance Jewels, Hong Kong. (Same address)
35937139-000-03
Manager: Mr. Gaurang Ramesh
Paymaster
Name: Mr. Gaurang Ramesh
PATMASTER
Residential Address: Flat D, 6/F.,
Tower 2, Lakeview Garden ,21 Yau On Street, Shatin, New Territories, Hong Kong.
The subject was established on 19th August, 2005 as a sole
proprietorship concern owned by Mr. Gaurang Ramesh Paymaster under the Hong
Kong Business Registration Regulations.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer, Exporter
and Wholesaler; Commission Agent.
Lines: All kinds of
diamond, gemstone and jewellery.
Employees: 18. (Including associate)
Commodities Imported: Imported from
Europe, India, other Asian countries
Markets: Hong Kong, India,
other Asian countries, Middle East
Terms/Sales: As per contracted.
Terms/Buying: L/C, T/T
Capital: Not Disclosed.
Profit or Loss: Made small profits
in the past years.
Condition: Business is
normal.
Facilities: Making active use
of general banking facilities.
Payment: Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.s:-
ABN AMRO Bank N.V., Hong Kong Branch.
Deutsche Bank AG, Hong Kong Branch.
Standing: Normal.
Fairdiam is a sole proprietorship set up and owned by Mr. Gaurang Ramesh
Paymaster who is an India merchant.
Having been in Hong Kong for a very long time, he is a Hong Kong ID Card
holder and has got the right to reside in Hong Kong permanently. Paymaster is also manager of the subject.
The subject’s registered address is located at 7/F., Hong Kong Trade
Centre, 161-7 Des Voeux Road Central,, Hong Kong while its operating office is
located at Room 1001, 10/F., Golden Dragon Centre, 38-40 Cameron Road,
Tsimshatsui, Kowloon, Hong Kong.
According to Paymaster, the subject has had over 18 employees in
Hong Kong.
Business commenced in August, 2005, the subject is a diamond and
gemstone importer, exporter and wholesaler.
It is also a commission agent.
Polished and cut diamonds and loose diamonds are mainly imported from India,
the other Asian countries and Europe. It
imports gemstones from Sri Lanka, Thailand, South Africa, etc. Processed diamonds are marketed in Hong Kong
which is the prime market. In recent
years, it also has exported some of its products to India, the other Asian
countries and the Middle East. Most of
its customers are Indian diamond retailers and exporters. Business has been active.
The subject has had close business ties with a number of diamond
manufacturers and suppliers in Mumbai, India.
Besides, the subject has had an associated company known as Crystural
Gems located at its operating address.
Established on 23rd September, 1999, Crystural Gems is also a diamond
and gemstone company which is also owned and operated by Paymaster.
The subject has had sufficient working capital to support its current
operating level.
As the history of the subject in Hong Kong is over nine years and seven
months, on the whole, consider it good for normal business engagements.
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 –
-
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.62.63 |
|
|
1 |
Rs.92.94 |
|
Euro |
1 |
Rs.68.06 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
ANK |
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 |
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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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.