MIRA INFORM REPORT

 

 

Report No. :

347886

Report Date :

31.10.2015

 

IDENTIFICATION DETAILS

 

Name :

DIASQUA (HK)

 

 

Registered Office :

Room 401-402, 4/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon

 

 

Country :

Hongkong

 

 

Date of Incorporation :

20.03.2000

 

 

Com. Reg. No.:

30791742-001-03

 

 

Legal Form :

Sole Ownership

 

 

Line of Business :

Importer and Exporter of all kinds of diamonds and jewellery products, gold and silver products, precious stones.

 

 

No. of Employees :

17 (Including Associates)

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Hongkong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 


 

HONGKONG - 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

 

 

 

 


Company Name and address

 

DIASQUA (HK)

 

ADDRESS:                   Room 401-402, 4/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom,  Kowloon, Hong Kong.

 

PHONE:                                    852-2209 6600,  2723 0237

 

FAX:                             852-2209 6689

 

E-MAIL:                                    tony@diasqua.ne

ashit@diasquasolitaire.com

ashit@diasqua.net

 

 

MANAGEMENT

 

Manager:                       Mr. Nimesh Piyush Mehta

 

 

SUMMARY

 

Establishment:                          20th March, 2000.

 

Organization:                 Sole Ownership.

 

Capital Provider:             Provided by Sole Owner.

 

Business Category:        Diamond and Watch Trader.

 

Employees:                   17.  (Including associates)

 

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

 

Banking Relation:           Satisfactory.

 

 

ADDRESS

 

Head Office:-

Room 401-402, 4/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.

 

Operated by:-

Diasqua International Ltd., Hong Kong.  (See attachment)

 

Sister Companies:-

Diaglobe (HK), Hong Kong.
[Established on 20-03-2000 bearing BR No. 30791742-002-03]

Diajewel (HK), Hong Kong.
[Established on 17-05-2000 bearing BR No. 30791742-003-03]

Diasqua Solitaire, Hong Kong.

[Established on 20-04-2012 bearing BR No. 30791742-004-03]

 

Associated Companies:-

Diasqua Group of Companies

Billion City (H.K.) Ltd., Hong Kong.  [Trading as “Diafuego”] (Dissolved)

Diafuego, Belgium.

Diaglobe BVBA, Belgium.

Diaglobe Inc., USA.

Diamond Dealers HK Ltd., Hong Kong.

Diasqua (Pacific) Pty. Ltd., Australia.

Diasqua (Shanghai) Ltd., China.

Diasqua (Thailand) Co. Ltd., Thailand.

Diasqua Europe BVBA, Belgium.

Diasqua Impex Pte. Ltd., Singapore.

Diasqua Inc., USA.

Diasqua India Pvt. Ltd., India.

Diasqua International DMCC, UAE.

Diasqua International Ltd., Taiwan Branch.

Diasqua Middle East LLC, UAE.

Diasqua Nippon Co. Ltd., Japan.

Diasqua Singapore Pte. Ltd., Singapore.

Pretty Jewellery International Ltd., Hong Kong.

R. T. Diamonds (HK) Ltd., Hong Kong.  (Same address)

 

Affiliated Companies:-

Prism Group of Companies

Anand Enternational, India.

Colo Jewellery Company, Hong Kong.

Prism (USA) Inc, USA.

Prism Diamond Co. Ltd., Thailand.

Prism International, India.

Prism Jewellery Company, Hong Kong.

Prismdia Ltd., Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

30791742-001-03

 

 

 

MANAGEMENT

 

Manager:                       Mr. Nimesh Piyush Mehta

Contact Person:             Mr. Lensy Leung, Mr. Ashit Shah

 

 

SOLE OWNER

 

Diasqua International Ltd., Hong Kong.  (See attachment)

 

 

HISTORY

 

The subject was established on 20th March, 2000 as a sole ownership firm with Diasqua International Ltd. as the proprietor under the Hong Kong Business Registration Regulations.

 

Originally the subject was registered under the name of Diasqua (Hong Kong), name changed to the present style on 7th April, 2000.

 

Initially the subject was located at Room 705-707, 7/F., Carnarvon Plaza, 20 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in September 2004.

 

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

 

 

OPERATIONS

 

Activities:                      Importer and Exporter.

 

Lines:                           All kinds of diamonds and jewellery products, gold and silver products, precious stones.

 

Employees:                   16.  (Including associates)

 

Materials/Commodities:  Imported from India, Belgium, Israel, other European countries

 

Markets:                       Japan, India, other Asian countries, Middle East

 

Terms/Sales:                 COD, L/C, T/T, D/P

 

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

 

 

MEMBERSHIP

 

Diamond Federation of Hong Kong, China Ltd., Hong Kong.

Hong Kong Jewelry Manufacturers’ Association, Hong Kong.

The Indian Chamber of Commerce Hong Kong, Hong Kong (Parent company).

 

 

FINANCIAL INFORMATION

 

Capital Provider: Provided by Sole Owner.

 

Profit or Loss:                Parent makes a small profit every year.

 

Condition:                      Business is active and steady.

 

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:                      Very Good.

 

 

GENERAL

 

Diasqua (HK) is operated by Diasqua International Ltd. [Diasqua Intl] which is a Hong Kong-registered firm located at the same address.

 

Established in March 2000, the subject is a member of the Diasqua Group.  It is trading in loose diamonds, carat-size diamonds, fancy diamonds, certificated diamonds, diamond studded gold jewellery, diamond watches

The subject is a wholesaler of diamonds ranging from 0.30 to 10 carats certified by GIA and HRD, collection of perfectly matched pair.  It also sells polished diamonds of all sizes, shapes, colours and clarities.

 

The subject also trades in Diafuego Diamond Watches.  Diafuego, established by Diasqua Group, is the Group’s watch manufacturing and marketing arm.

 

In 2006, the operations of Thailand and Taiwan merged with the business of the subject and Diasqua Intl.

 

The subject has had an associated company R. T. Diamonds (HK) Ltd. [R. T. Diamonds], a Hong Kong-registered company located at the same address.  R. T. Diamonds is also a member of the Diasqua Group.

 

In order to penetrate the international market further, R. T. Diamonds 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.

 

The manager of the subject Mr. Nimesh Piyush Mehta is an Indian.

 

In order to penetrate the international market further, Diasqua Intl and the subject have taken part in fairs and exhibitions held in Hong Kong and other foreign large cities.

 

Over the past years, the subject has taken part in the following Shows and Fairs:-

USA

·         JCK Las Vegas Show (May)

Europe

·         Baselworld, Basel, Switzerland (March)

Hong Kong

·         HK Int’l Jewellery Show (March);

Hong Kong Jewellery & Watch Fair (March);

Hong Kong Jewellery & Gem Fair (June), &

Hong Kong Jewellery & Gem Fair (September).

Macau

·         January Macau Jewellery & Watch Fair;

Macau Jewellery & Watch Fair.

Middle East

·         Jewellery Arabia, Bahrain (November)

 

Incorporated on 20th March, 2000, Diasqua Intl is wholly-owned by the Mehta family.  Having issued 90 million ordinary shares (increased from 55 million to 65 million on 15th April, 2010, and further to 90 million on 20th January, 2011) of HK$1.00 each, Diasqua Intl is jointly owned by Mr. Nimesh Piyush Mehta, holding 70 million shares which account for 77.8%; and Mr. Romy Piyush Mehta, holding 20 million shares, account for 22.2%.

 

Diasqua Intl has a wide network of international offices situated in India, Singapore, Thailand, Taiwan, Japan, Australia, Belgium, the United States, Israel, the United Arab Emirates and China.  The trade names and principal subsidiaries of Diasqua Intl are the following seven:-

 

·         Diafuego;

Diaglobe (HK);

Diajewel (HK);

Diasqua (HK) – the subject;

Diasqua Solitaire;

Pretty Jewellery Int’l Ltd.; &

R. T. Diamonds (HK) Ltd.

 

The directors of Diasqua Intl are the members of the Mehta family who have been in Hong Kong for a very long time.

 

The Diasqua Group is a dedicated member of the diamond, gems and jewellery industry.  Today its core business involves in sourcing, distributing and marketing of an extensive range of polished diamonds.

The history of the Group is over seventy years.

 

With humble beginnings in Madras (now known as “Chennai”) dating back to 1933, the Group’s global marketing network has extended to twelve offices in ten countries.

 

In 1996 and 1999 respectively, the Group set up a branch company in New York and Los Angeles, the United States.  In 1998, the Group commenced in diamond cutting and polishing.

 

In 2000, the Group set up its first venture Diasqua (Pacific) Pty. Ltd. in Sydney, Australia.  In 2003, Diasqua Middle East LLC located at Dubai was incorporated, operations started in August of the same year.  In 2006, Diasqua India Pvt. Ltd. was established in India.

 

In 2010, Diasqua International DMCC was formed in Dubai, the United Arab Emirates.

 

Now, the global networks of the Diasqua Group are set up in New York, London, Antwerp, Dubai, Mumbai, Hong Kong, Bangkok, Taipei, Tokyo, Singapore, Sydney  The business of the Group is steady as it has had numerous customers coming from more than fifty countries of the world.

 

The Group also sells its products online.  Its e-commerce keeps on improving.

 

The subject is fully supported by the Diasqua Group which has a very significant annual sales turnover.

 

The history of the subject in Hong Kong is over fifteen years and six months.  Business is active and steady.

 

The contact person is Mr. Ashit Shah who is also an Indian.

 

On the whole, consider the subject good for normal business engagements.

 

 

Company Name and address

 

DIASQUA  INTERNATIONAL  LTD.

 

[Trading as:                   DIASQUA (HK), DIAGLOBE (HK),
DIAJEWEL (HK) and DIASQUA SOLITAIRE]

 

ADDRESS:                   Room 401-402, 4/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon,  Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

30791742

 

 

COMPANY FILE NUMBER

 

0709126

 

 

DATE OF INCORPORATION

 

20th March, 2000.

 

 

ISSUED SHARE CAPITAL

 

HK$90,000,000.00

 

 

SHAREHOLDERS

 

(As per registry dated 20-03-2015)

 

Name

 

No. of shares

Nimesh Piyush MEHTA

 

70,000,000

Romy Piyush MEHTA

 

20,000,000

 

 

–––––––––

 

Total:

90,000,000

========

 

 

DIRECTORS

 

(As per registry dated 20-03-2015)

 

Name

(Nationality)

 

Address

Nimesh Piyush MEHTA

Flat B & C, 16/F., Block 3, Parc Palais, 18 Wylie Road, Homantin, Kowloon, Hong Kong.

 

Romy Piyush MEHTA

Flat B & C, 16/F., Block 3, Parc Palais, 18 Wylie Road, Homantin, Kowloon, Hong Kong.

 

 

SECRETARY

 

(As per registry dated 20-03-2015)

 

Name

Address

Co. No.

First Island Secretaries Ltd.

Room 703, 7/F., Silvercord, Tower 2, 30 Canton Road, Tsimshatsui, Kowloon, Hong Kong.

0049295

 

 

INDEBTEDNESS

 

HK$363,826,878.78  (Total amount outstanding on all mortgages and charges as per last Annual Return dated 20-03-2015)


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.65.22

UK Pound

1

Rs.99.93

Euro

1

Rs.71.67

 

INFORMATION DETAILS

 

Analysis Done by :

TRI

 

 

Report Prepared by :

TRU

 

               

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.