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Report No. : |
339328 |
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Report Date : |
07.09.2015 |
IDENTIFICATION DETAILS
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Name : |
CRYSTAL GEMS (HK) LTD. |
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Registered Office : |
Room 901, 9/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon |
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Country : |
Hong Kong
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Date of Incorporation : |
13.07.2007 |
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Com. Reg. No.: |
38177625 |
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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 : |
6 [Including Associate] |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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 12.5% 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 |
(Formerly located at:
16A, Wah Fai Mansion,
38‑40 Granville Road, Tsimshatsui,
Kowloon, Hong Kong.)
CRYSTAL GEMS (HK)
LTD.
ADDRESS: Room 901, 9/F., Hilder
Centre, 2 Sung Ping Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2721 8608, 2722 0049,
6900 4525
FAX: 852-2723 9704
E-MAIL: info@crystalgems.com.hk
hongkong@sanghaviexports.com
MANAGEMENT:
Managing Director: Mr.
Prasannkumar Kantilal Shah
Establishment: 18th April, 1988. (Partnership)
Incorporated on: 13th July, 2007.
Organization: Private Limited Company.
Issued Share Capital: HK$15,700,000.00
Business Category: Diamond
Trader.
Employees: 6. (Including Associate)
Main Dealing
Banker: Antwerpse DiamantBank NV (also
known as Antwerp Diamond Bank NV), Hong Kong Branch.
Banking Relation: Satisfactory.
CRYSTAL GEMS
(HK) LTD.
Head Office:-
Room 901, 9/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon,
Hong Kong.
Holding Company:-
Rose Diamonds DMCC, United Arab Emirates.
Associated/Affiliated
Companies:-
Sanghavi Group of Companies
Crystal Gems Ltd., Hong Kong.
(Same address)
Dynamic Design Group Inc., USA.
Rare Gems BVBA, Belgium.
Royal Diamond Co. Ltd., Japan.
Sanghavi Diamond (Shanghai) Co. Ltd., China.
Sanghavi Diamond Mfg. Pvt. Ltd., India.
Sanghavi Diamond Pvt. Ltd., India.
Sanghavi Diamonds Inc., USA.
Sanghavi Exports International Private Ltd., India.
Sanghavi Exports, India.
Sanghavi Far East Pte. Ltd., Singapore.
Sanghavi Jewel Pvt. Ltd., India.
Sanghavi Jewellery (Tokyo) Co. Ltd., Japan.
Sanghavi Jewellery Tokyo Co. Ltd., Japan.
Sanghavi Solitaire Inc., USA.
Sanghavi Star Retails Pvt. Ltd., India.
Smile Jewellery LLC, UAE.
Super Diam, Hong Kong.
38177625
1149269
Managing Director: Mr.
Prasannkumar Kantilal Shah
HK$15,700,000.00
(As per registry dated 13-07-2015)
|
Name |
|
No. of shares |
|
Sanghavi Exports International Private Ltd. 502 Prasad Chambers, Opera House, Mumbai-400004, India. |
|
10,000 |
|
Sanghavi Fareast Pte Ltd. 35-Selegie Road, #01-21 Parklane, Shopping Mall, Singapore 188307. |
|
90,000 |
|
Rose Diamonds DMCC Unit 2H-05-340, 5/F., Building No. 2, Plot No. 550-554, J&G, DMCC
Dubai, United Arab Emirates. |
|
15,600,000 |
|
|
|
----------------- |
|
|
Total: |
15,700,000 ========= |
(As per registry dated 13-07-2015)
|
Name (Nationality) |
Address |
|
Prasannkumar Kantilal SHAH |
Flat A, 18/F., Tower 1, Harbourfront Landmark, 11 Wan Hoi Street,
Hunghom, Kowloon, Hong Kong. |
|
Ayush Nilesh SHAH |
Chada Building, 5/F., Block No. 14, Near Matunga Police Station, King
Circle, Mumbai 400019, India. |
(As per registry dated 13-07-2015)
|
Name |
Address |
|
YEE Yau Ying, Tina |
Room 901, 9/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon,
Hong Kong. |
The subject was incorporated on 13th July, 2007 as a private limited liability
company under the Hong Kong Companies Ordinance. It was set up to take over the business of
Sanghavi Exports which was a partnership company established on 18th April,
1988 bearing business registration number 11749114.
Originally the subject was registered under the name of Sanghavi Exports
Ltd., name changed to the present style on 28th July, 2010.
Initially the subject was located at Block 3D, 12/F., Victoria Centre,
15 Watson Road, Hong Kong, moved to Room 2208, 22/F., Melbourne Plaza, 33
Queen’s Road Central, Hong Kong in May 1988; to Room 602, 6/F., Trans Hong Kong
Commercial Building, 41-43 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong in
August 1989; to Flat B, 11/F., Hang Lung Bank Building, 46-48 Granville Road,
Tsimshatsui, Kowloon, Hong Kong in August 2006; to Room 901, 9/F., Hilder
Centre, 2 Sung Ping Street, Hunghom, Kowloon, Hong Kong in late 2008, to 16A,
Wah Fai Mansion, 38‑40 Granville Road, Tsimshatsui, Kowloon, Hong Kong in
October 2009 and further moved to the present address in January 2012.
The subject changed its directors in 2015.
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: 6. (Including associate)
Commodities Imported: India,
Belgium, other European countries.
Markets: Japan,
Southeast Asia, Europe, Middle East, Scandinavia.
Terms/Sales: L/C, T/T.
Terms/Buying: L/C, T/T, D/P.
MEMBERSHIP: The Indian Chamber of Commerce
Hong Kong, Hong Kong.
Hong Kong Jewelry Manufacturers’ Association, Hong Kong.
Issued Share Capital: HK$15,700,000.00
Mortgage or Charge: (See attachment)
Profit or Loss: Making
a small profit every year.
Condition: Keeping in an
active manner.
Facilities: Making active
use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
Antwerpse
DiamantBank NV
(also known as Antwerp Diamond Bank NV), Hong Kong Branch.
Bank of India, Hong Kong Branch.
ABN AMRO Bank N.V., Hong Kong Branch.
Standing: Very Good.
Having issued 15.7 million ordinary shares of HK$1.00 each, Crystal Gems
(HK) Ltd. formerly was a wholly-owned subsidiary of Sanghavi Exports
International Private Ltd. [Sanghavi] which was an India-based firm. Now, its shareholders have been changed. The main shareholder of the subject is Rose
Diamonds DMCC [Rose Diamonds], a UAE-based company. The minor shareholders are Sanghavi Exports
International Private Ltd., an India-based company, and Sanghavi Fareast Pte
Ltd., a Singapore-based company.
The former name of the subject was Sanghavi Exports Ltd., name changed
to the present style in July 2010.
The directors of the subject are Prasannkumar Kantilal Shah and Ayush
Nilesh SHAH. The former is a
Hong Kong ID Card holder and has got the right to reside in Hong Kong
permanently while the latter is an India passport holder. The latter was appointed in July 2015.
The subject is an associated company of Crystal Gems Ltd. [Crystal Gems]
which is also located at its operating address.
Having issued 5 million ordinary shares of HK$1.00 each, Crystal Gems is
jointly owned by Mr. Amitkumar Sevantilal Sanghavi, holding 99% interests, and
Mr. Prasannkumar Kantilal Shah, holding just 1%.
The subject and Crystal Gems are engaged in the same lines of business
and under the same management.
The subject is a diamond importer, exporter and wholesaler. It is trading in the following commodities:
0.005 to 1.00 Carats for non-certified goods in round as well as fancy
shapes;
0.30 to 5.00 Carats for Certified goods including GIA, IGI and HRD
Certificates.
Products are marketed in Hong Kong, exported to China, the other Asian
countries, the Middle East, etc.
Sanghavi was set up by the Sanghavi brothers. Sanghavi and its associates and subsidiaries
have formed a group of companies known as Sanghavi Group which is trading in
diamonds.
The subject is an associated company of the Sanghavi Group.
The Sanghavi Group was founded by four Sanghavi brothers, Vasant, Kirti,
Ramesh and Chandrakant in the late 70s.
Under the flagship company Sanghavi Exports, the Group has developed extensively
in the diamond industry. Today, the
Group’s core business is exporting polished diamonds and diamond studded
jewellery and also engaged in manufacturing diamonds and jewellery.
The Group has set up a large network of marketing offices in 12 major
cities of the world, main ones are in the United States, Belgium, Japan,
Australia, Canada, Singapore, and the other European countries. Its customers came from over 50 countries in
Asia, Europe, the Middle East, North America, Central & South America,
Australia, Africa, Scandinavia, etc.
The Group’s diamond manufacturing factory Sanghavi Diamond Mfg. Pvt.
Ltd. is located in Surat of India. This
factory is one of the largest diamond manufacturers in Asia.
Sanghavi Group has five production facilities in Surat and Mumbai. The company has made an investment of US$50
million in these production facilities which are employing about 3,500
employees directly.
The Group is the subject’s main supplier. 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, the subject has been taking part in the following shows
and exhibitions:-
The United States:
JCK Las Vegas Show (May)
Switzerland:
Baselworld (Apr)
Hong Kong:
HK Int’l Jewellery Show (Mar);
HK Jewellery & Gem Fair (Jun); &
HK Jewellery & Gem Fair (Sep).
The subject is supported by the Group and the Sanghavi brothers. In Hong Kong, the subject’s business is
chiefly handled by Mr. Prasannkumar Kantilal Shah. History is over 27 years and four months.
The subject’s holding company Rose Diamonds is a DMCC company approved
by the UAE Government.
On the whole, consider it good for normal business engagements.
|
Date |
Description of
Instrument |
Mortgagee |
|
30-07-2013 |
Debenture |
Antwerpse DiamantBank NV |
|
11-06-2014 |
Floating Charge Over Assets |
ABN AMRO Bank N.V., Hong Kong Branch. |
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.66.40 |
|
|
1 |
Rs.101.19 |
|
Euro |
1 |
Rs.73.89 |
INFORMATION DETAILS
|
Analysis Done by
: |
TRI |
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|
Report Prepared
by : |
TPT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.