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Report No. : |
344383 |
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Report Date : |
14.10.2015 |
IDENTIFICATION DETAILS
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Name : |
DIANCO (HK) LTD. |
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Registered Office : |
Unit 2, J2, 11/F, Kaiser Estate, Phase 2, 51 Man Yue Street, Hunghom, Kowloon |
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Country : |
Hong Kong
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Date of Incorporation : |
13.07.2010 |
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Com. Reg. No.: |
52599095 |
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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 and Jewellery Products. |
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No. of Employees : |
02 |
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 : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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 12.5% of total system deposits in Hong
Kong by the end of 2014. 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 47.3 million
in 2014, 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 2014 mainland Chinese companies constituted about 50% of the
firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% 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
4.4% in 2014. 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 2014, Hong Kong and China signed a new agreement on achieving basic
liberalization of trade in services in Guangdong Province under the Closer
Economic Partnership Agreement, adopted in 2003 to forge closer ties between
Hong Kong and the mainland. The new measures, effective from March 2015, cover
a negative list and a most-favored treatment provision, and will improve access
to the mainland's service sector for Hong Kong-based companies.
|
Source
: CIA |
DIANCO (HK) LTD.
ADDRESS: Unit 2, J2, 11/F, Kaiser
Estate, Phase 2, 51 Man Yue Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-3904 2595
FAX: 852-3904 2594
E-MAIL: sales@dianco.com.hk
MANAGEMENT:
Managing Director: Mr. Jigarkumar
Sureshchandra Shah
Incorporated on: 13th July, 2010.
Organization: Private Limited
Company.
Issued Share Capital: HK$23,400,000.00
Business Category: Diamond
& Jewellery Trader.
Employees: 2.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
DIANCO (HK) LTD.
Registered Head
Office:-
Unit 2, J2, 11/F, Kaiser Estate, Phase 2, 51 Man Yue Street, Hunghom,
Kowloon, Hong Kong.
Holding Company:-
Dianco Singapore Pte. Ltd., Singapore.
Associated Companies:-
D. Navinchandra Exports Pvt. Ltd., India.
Dianco (Shanghai) Ltd., China.
Dianco B.V.B.A., Belgium.
Dianco DMCC, UAE.
Dianco LLC, UAE.
52599095
1479718
Managing Director: Mr. Jigarkumar
Sureshchandra Shah
HK$23,400,000.00
(As per registry dated 13-07-2015)
|
Name |
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No. of shares |
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Dianco Singapore Pte. Ltd. 300, Beach Road, # 33-04/06 The Concourse, Singapore 199555. |
|
23,400,000 ======== |
DIRECTOR: (As per registry
dated 13-07-2015)
|
Name (Nationality) |
Address |
|
Jigarkumar Sureshchandra SHAH |
Flat C, 22/F., Tower 5, The Greenwood (Phase 1), Laguna Verde, 8
Laguna Verde Avenue, Kowloon, Hong Kong. |
(As per registry dated 13-07-2015)
|
Name |
Address |
Co. No. |
|
Top Establishment Ltd. |
Room 2207-2209, 22/F., Tower 2, Lippo Centre, 89 Queensway, Admiralty,
Hong Kong. |
0409655 |
The subject was incorporated on 13th July, 2010 as a private limited
liability company under the Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of diamonds and jewellery products.
Employees: 2.
Commodities Imported: India, other
Asian countries.
Markets: Hong
Kong, China, Singapore, Southeast Asia, UAE.
Terms/Sales: CAD, L/C or as per contracted.
Terms/Buying: L/C, T/T, O/A.
Issued Share Capital: HK$23,400,000.00
Mortgage or Charge: (See attachment)
Profit or Loss: Made
small profits in past three years.
Condition: Business
is normal.
Facilities: Making
active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
ABN AMRO Bank
N.V., Hong Kong Branch.
Antwerpse DiamantBank
NV.
(Also known as Antwerp Diamond Bank NV), Hong Kong Branch.
Standing: Small.
Having issued 23,400,000 ordinary shares of HK$1.00 each, Dianco (HK)
Ltd. is wholly owned by Dianco Singapore Pte. Ltd. [Dianco] which is a Singapore-based
firm.
The managing director of the subject Mr. Jigarkumar Sureshchandra Shah
is an India merchant. He is a Hong Kong
ID holder. He is also the only director
of the subject.
The subject is a polished diamond trader. Its range of polished diamonds encompasses a
variety of colours, clarities and carats.
It offers round brilliants from stars to pointers, in whites, spotted
whites. It also offers various types of
assortments with excellent grading and adequate volumes, along with GIA, IGI,
and HRD certified goods up to 3 carats in D to I colours with clarity ranging
from VVS to I3. Its products are
marketed in Hong Kong, and exported to Singapore, other Southeast Asian
countries, the Middle East, etc.
Business is normal.
Dianco is a marketing affiliate of D. Navinchandra Exports which was
established in 1970. D. Navinchandra
Exports is also an affiliated company of Rio Tinto.
The subject is a member of the Dianco Group [Dianco] which was founded
in 1984. It started as a small family
business, but soon has become a significant polished diamond supplier. Its head office is in Antwerp, Belgium.
Dianco has a direct supply of rough diamonds from DTC, Rio Tinto, BHP
and Alrosa. These four are the main
rough diamond stone suppliers.
Along with the group’s state of the art manufacturing facilities in
Surat makes Dianco the preferred supplier of quality polished diamonds to
reputed jewellery manufacturers the world over.
Dianco has got from Rio Tinto round brilliants from 0.005 cts to 0.90
cts in the following specifications:
The subject has had an associated company in China known as Dianco
(Shanghai) Ltd. This company is located
at B706 A, China Diamond Exchange, 1701 Century Avenue, Pudong, Shanghai,
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. For instance, it is going to
take part in “HKTDC Hong Kong International Diamond, Gem & Pearl Show 2016”
which will be held in Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the
period of 1st to 5th March, 2016.
Besides the subject and the China company, Dianco now has offices in
Mumbai, Dubai, Hyderabad, New Delhi and Kolkata. The last three cities are in India.
The history of the subject in Hong Kong is just over five years and
three months. On the whole, consider it
good for normal business engagements.
|
Date |
Particulars |
Amount |
|
05-06-2012 |
Instrument: Debenture Property: 1) All stocks shares bonds
and securities of any kind whether marketable or otherwise and all other
interests including loan capital of the Company 2) All book and other
debts revenues and claims 3) The uncalled capital
goodwill and all patents patent applications trade marks trade names
registered designs and copyrights and all licences and ancillary and
connected rights 4) The undertaking and
all others of the Company Mortgagee: Antwerpse DiamantBank NV (also known
as Antwerp Diamond Bank NV), Hong Kong Branch. |
All money and the discharge of all obligations and liabilities |
|
11-06-2013 |
Instrument: Floating Charge Over Assets Property: All the company’s undertaking, property and assets whatsoever and
wheresoever both present and future including all book and other debts revenues
and claims both present and future due or owing or which may become due or
owing to the company, all its uncalled capital , goodwill and all patents,
patent applications, trade marks, trade names, registered design copyrights
and all licences and ancillary and connected rights relating to the
intangible property both present and future of the company Mortgagee: ABN AMRO Bank N.V., Hong Kong
Branch. |
All monies, obligations and liabilities covenanted to be paid or
discharged by the company in respect of the aggregate of all amounts owing by
the company to the bank from time to time |
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.65.02 |
|
|
1 |
Rs.99.89 |
|
Euro |
1 |
Rs.73.92 |
INFORMATION DETAILS
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Analysis Done by
: |
KIN |
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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.