MIRA INFORM REPORT

 

 

Report No. :

510228

Report Date :

28.05.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

SHEETAL (FAR  EAST) LIMITED

 

 

Registered Office :

Room 1316, 13/F., Peninsula Square,18 Sung On Street, Hunghom, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

03.05.2011

 

 

Com. Reg. No.:

58302462

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is engaged in Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products, emerald, precious stones.

 

 

No. of Employees :

5

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but Correct

 

 

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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Hong Kong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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 reexports, 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 continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

 

Excess liquidity, low interest rates and a tight housing supply have caused Hong Kong property prices to rise rapidly. The lower and middle-income segments of the population increasingly find housing unaffordable.

 

Hong Kong's open economy has left it exposed to the global economic situation. Its continued reliance on foreign trade and investment makes it vulnerable to renewed global financial market volatility or a slowdown in the global economy.

 

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 surged from 4.5 million in 2001 to 47.3 million in 2014, outnumbering visitors from all other countries combined. After peaking in 2014, overall tourist arrivals dropped 2.5% in 2015 and 4.5% in 2016. The tourism sector rebounded in 2017, with visitor arrivals rising 3.2% to 58.47 million. Travelers from Mainland China totaled 44.45 million, accounting for 76% of the total.

 

The Hong Kong Government is promoting the Special Administrative Region (SAR) as the preferred business hub for 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, RMB trade settlement is allowed, and investment schemes such as the Renminbi Qualified Foreign Institutional Investor (RQFII) Program was first launched in Hong Kong. Offshore RMB activities experienced a setback, however, after the People’s Bank of China changed the way it set the central parity rate in August 2015. RMB deposits in Hong Kong fell from 1.0 trillion RMB at the end of 2014 to 559 billion RMB at the end of 2017, while RMB trade settlement handled by banks in Hong Kong also shrank from 6.8 trillion RMB in 2015 to 3.9 trillion RMB in 2017.

 

Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2015, mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 66% 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. 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 (CEPA), adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, which took effect in March 2015, cover a negative list and a most-favored treatment provision. On the basis of the Guangdong Agreement, the Agreement on Trade in Services signed in November 2015 further enhanced liberalization, including extending the implementation of the majority of Guangdong pilot liberalization measures to the whole Mainland, reducing the restrictive measures in the negative list, and adding measures in the positive lists for cross-border services as well as cultural and telecommunications services. In June 2017, the Investment Agreement and the Agreement on Economic and Technical Cooperation (Ecotech Agreement) were signed under the framework of CEPA.

Hong Kong’s economic integration with the mainland continues to be most evident in the banking and finance sector. Initiatives like the Hong Kong-Shanghai Stock Connect, the Hong Kong- Shenzhen Stock Connect the Mutual Recognition of Funds, and the Bond Connect scheme are all important steps towards opening up the Mainland’s capital markets and have reinforced Hong Kong’s role as China’s leading offshore RMB market. Additional connect schemes such as ETF Connect (for exchange-traded fund products) are also under exploration by Hong Kong authorities. In 2017, Chief Executive Carrie LAM announced plans to increase government spending on research and development, education, and technological innovation with the aim of spurring continued economic growth through greater sector diversification.

 

Source : CIA

 

Company name and address

 

SHEETAL (FAR  EAST) LIMITED

 

 

Address:           Room 1316, 13/F., Peninsula Square,

                        18 Sung On Street, Hunghom,

                        Kowloon, Hong Kong.

 

 

COMPANY NAME AND ADDRESS

 

SHEETAL  (FAR  EAST)  LIMITED

 

ADDRESS:       Room 1316, 13/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.

 

PHONE:            852-2379 1460,  2739 8299

 

FAX:                 852-2739 8211,  2739 9200

 

E-MAIL:            reception.hongkong@sheetals.net

 

 

MANAGEMENT

 

Managing Director:  Mr. Girish Vasharambhai Bagadia

 

 

SUMMARY

 

Incorporated on             :  3rd May, 2011.

 

Organization                  :  Private Limited Company.

 

Issued Share Capital      :   HK$70,300,000.00

 

Business Category        :   Diamond Trader.

 

Employees                   :  5.  (Including associates)

 

Main Dealing Banker      :  Wing Lung Bank Ltd., Hong Kong.

 

Banking Relation           :  Satisfactory.

 

 

 

COMPANY NAME AND ADDRESS

 

SHEETAL  (FAR  EAST)  LIMITED

 

ADDRESS:

 

Registered Head Office:-

Room 1316, 13/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.

 

Holding Company:-

Sheetal Golden Works (India) LLP, India.

 

BUSINESS REGISTRATION NUMBER:  58302462

 

COMPANY FILE NUMBER:  1595440

 

 

MANAGEMENT

 

Managing Director:  Mr. Girish Vasharambhai Bagadia

(Hong Kong Mobile Phone No.: 852-9833 0809)

Contact Person:  Mr. Jignesh Manjibhai Donda

 

ISSUED SHARE CAPITAL:        HK$70,300,000.00

 

 

SHAREHOLDER

           

(As per registry dated 19-12-2017)

Name

 

No. of shares

Sheetal Golden Works (India) LLP

104 Radhe Vallabha CHS Limited, Opera House, Mumbai 400 004, India.

 

70,300,000

========

 

 

DIRECTORS  

 

(As per registry dated 19-10-2017)

Name

(Nationality)

 

Address

Jignesh Manjibhai DONDA

Flat B, 25/F., Tower 4, The Greenwood, Laguna Verde, 8 Laguna Verde Avenue, Hunghom, Kowloon, Hong Kong.

 

Girish Vasharambhai BAGADIA

Room C, 12/F., Tower 8, Costa Del Sol, Laguna Verde, 8 Laguna Verde Avenue, Hunghom, Kowloon, Hong Kong.

 

Chirag Ravjibhai KAKADIA

10 Siddharth Nager, B/H Affiel Tower, L.H. Road, Surat City, Pin: 395006, Guharat, India.

 

 

SECRETARY 

 

(As per registry dated 03-05-2017)

Name

Address

Co. No.

Taxbase Consultants Ltd.

Room 1408, 14/F., Hollywood Plaza, 610 Nathan Road, Kowloon, Hong Kong.

0411324

 

 

HISTORY

 

The subject was incorporated on 3rd May, 2011 as a private limited liability company under the Hong Kong Companies Ordinance.

It increased its issued share capital to HK$70.2 million in December 2017 from HK$100,000.00

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

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of diamonds and jewellery products, emerald, precious stones, etc.

 

Brand Name:                 Sheetal Group, Kiah

 

Employees:                  5.  (Including associates)

 

Commodities Imported: India, Canada, Russia, Australia, Belgium, other European countries, etc.

 

Markets:                       Hong Kong, Japan, other Asian countries, Europe, Middle East, US, etc.

 

Terms/Sales:                 CAD, L/C, T/T, etc.

 

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

 

MEMBERSHIP:             Hong Kong Jewelry Manufacturers’ Association, Hong Kong.

 

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:                 HK$70,300,000.00

 

Profit or Loss:                           Made small profits in past years.

 

Condition:                                 Business is normal and steady.

 

Facilities:                                  Making active use of general banking facilities.

 

Payment:                                  Slow but Correct.

 

Commercial Morality:                 Satisfactory.

 

Banker:                                     Wing Lung Bank Ltd., Hong Kong.

 

Standing:                                  Good.

 

 

GENERAL

 

Having issued 100,000 ordinary shares, Sheetal (Far East) Limited was a wholly‑owned subsidiary of Sheetal Golden Works (India) Private Ltd. [Sheetal] which was an India-based firm.

The subject has increased its ordinary shares to 70.2 million of HK$1.00 each.

Now, Sheetal in India is known as Sheetal Golden Works (India) LLP. [LLP is the abbreviation of ‘Limited Liability Partnership’.]  This new name was formally registered on 31st March, 2016.

The managing director of the subject is Mr. Girish Vasharambhai Bagadia.  He can be reached at his Hong Kong mobile phone number 852-9833 0809.

The contact person of the subject is Mr. Jignesh Manjibhai Donda who is also a director of the subject.

The subject is trading in the following commodities:-

GIA Certified and Non-Certified Polished Diamonds Size:

From 0.01 ct to 20.00 ct Cut: Round, Pear, Marquise, Cushion, Heart, Radiant, Rose-Cut, Round Brilliant and Fancy Shapes

Colour: D to M, Fancy Colour (White, Yellow, Champagne/Brown, Pink), White LC, Natts, etc.

Clarity:  IF-VVS, VS, SI, I1, I2, I3, etc.

The subject also trades in IGI fine jewellery with diamond and gold such as jewellery set, diamond sapphire necklace, etc.

Most of its products bear the trademarks of Sheetal Group and Kiah.

The subject and Sheetal belong to the Sheetal Group.

Established in 1985, Sheetal Group is one of the world’s leading manufacturers of polished diamonds with an annual sales turnover about US$550 million and manufactures about 1.1 million polished carats.

The Group is significant for GIA Round Brilliant, Fancy-Cut,

Fancy-Colour +0.30 ct, +1.00 ct, +3.00 ct.  Its Polished Parcel includes White, Brown, LC 0.01 – 0.80 ct.

Sheetal Group is also a certified member of the RJC (Responsible Jewellery Council).  Besides, the Group is one of the largest suppliers of Argyle polished diamonds, providing the entire suite of Argyle polished from white, grey to champagne diamonds.

Over the years, Sheetal Group has established a strong distribution network with some of the world’s leading polished distributors, jewellery manufacturers and retailers, serving key diamond markets.  The United States continues to be one of the major consumer markets for the Group’s products.  Sheetal Group has also become one of the leading polished suppliers to the Chinese and Indian Retailer segments.

Besides, its products are playing an important role in the growing markets of China and the Middle East.  The business of the China market has been growing significantly.

The Group has more than 310,000 sq.ft. of diamond manufacturing infrastructure capacity in Surat, India.  Currently, it has about 5,000 employees.

Sheetal Group has had association with major diamond mining companies like De Beers, Rio Tinto, Alrosa and others.  It procures diamonds from mining companies in Canada, Russia, Africa and Australia.  It has commanded market leadership position in the brown diamonds segment for more than 15 years.

Now, Sheetal is jointly managed by the first and second generations of the Kakadia family.  Most of the family members are in Mumbai and Surat, India.

Besides India, the Group new has related or associated companies in the United States, Belgium and Dubai of the United Arab Emirates.

The business of the Group is active and lucrative.

The subject is fully supported by the Sheetal Group.  History in Hong Kong is over seven years.

On the whole, in view of the background of the subject, consider it good for normal business engagements.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 68.26

UK Pound

1

INR 91.21

Euro

1

INR 79.88

HKD

1

INR 8.60

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

PRA

 

 

Report Prepared by :

DNS

 

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

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.