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MIRA INFORM REPORT
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Report Date : |
06.12.2011 |
IDENTIFICATION DETAILS
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Name : |
C & H (DIA.)
TRADING LTD. |
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Registered Office : |
Room 1402, 14/F., Tung Shun Hing Commercial Centre, 20-22 Granville
Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong. |
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Date of Incorporation : |
16.05.1995 |
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Com. Reg. No.: |
19104613 |
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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,
EMERALD, PRECIOUS STONES, ETC. |
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No. of Employees : |
4. |
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 : |
No Complaints |
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Litigation : |
Exists |
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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Hong Kong |
A2 |
A2 |
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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 |
COMPANY NAME
C & H (DIA.)
TRADING LTD.
COMPANY ADDRESS
Room 1402, 14/F.,
Tung Shun Hing Commercial Centre, 20-22 Granville Road, Tsimshatsui, Kowloon,
Hong Kong.
PHONE: 2317 0977
FAX: 2375 3700
MANAGEMENT
Managing
Director: Not yet appointed
(Old Director Mr. Anilkumar
Sharma has resigned)
SUMMARY
Incorporated on : 16th May, 1995.
Organization : Private Limited Company.
Capital : Nominal: HK$34,000,000.00
Issued : HK$34,000,000.00
Business Category : Importer, Exporter and Wholesaler.
Employees : 4.
Main Dealing
Banker: Bank of Baroda (Hong Kong) Ltd., Hong Kong.
Banking Relation :
Fair.
COMPANY ADDRESS
Registered
Head Office:-
Room 1402, 14/F.,
Tung Shun Hing Commercial Centre, 20-22 Granville Road, Tsimshatsui, Kowloon,
Hong Kong.
BUSINESS REGISTRATION NUMBER
19104613
COMPANY FILE NUMBER
0514669
MANAGEMENT
Managing
Director: Not yet appointed
(Old Director Mr.
Anilkumar Sharma has resigned)
CAPITAL
Nominal Share Capital:
HK$34,000,000.00 (Divided into 34,000,000 shares of HK$1.00 each)
Issued Share
Capital: HK$34,000,000.00
SHAREHOLDER
(As per registry dated 16-05-2011)
|
Name |
|
No. of shares |
|
Anilkumar SHARMA |
|
34,000,000 ======== |
DIRECTOR
(As per registry dated 16-05-2011)
|
Name (Nationality) |
Address |
|
Anilkumar
SHARMA |
Flat D, 8/F., Windsor Mansion, 29-31
Chatham Road South, Tsimshatsui, Kowloon, Hong Kong. |
SECRETARY
(As
per registry dated 16-05-2011)
|
Name |
Address |
Co.
No. |
|
Taxbase
Consultants Ltd. |
Room 1402, 14/F., Tung Shun Hing Commercial Centre, 20-22 Granville
Road, Tsimshatsui, Kowloon, Hong Kong. |
0411324 |
HISTORY
The
subject was incorporated on 16th May, 1995 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.
OPERATIONS
Activities : Importer, Exporter and Wholesaler.
Lines : All kinds of diamonds and
jewellery products, emerald, precious stones, etc.
Employees : 4.
Commodities
Imported: India, Belgium, other European countries, etc.
Markets : Japan, Southeast Asia, Europe,
Middle East, Scandinavia, etc.
Terms/Sales : L/C, T/T, D/P, etc.
Terms/Buying : L/C and T/T.
FINANCIAL INFORMATION
Nominal Share
Capital: HK$34,000,000.00 (Divided into 34,000,000 shares of HK$1.00 each)
Issued Share
Capital: HK$34,000,000.00
Mortgage or Charge
(since 2005): (See attachment)
Profit or Loss: Kept a balance account.
Condition: Keeping in a fairly active
condition.
Facilities: Making fairly active use of general banking
facilities.
Payment: Delay payment expericenced.
Commercial
Morality: Satisfactory.
Bankers
Bank of Baroda
(Hong Kong) Ltd., Hong Kong.
Indian Overseas
Bank, Hong Kong Branch.
Canara Bank, Hong
Kong Branch.
Bank of Baroda,
Hong Kong Branch.
Punjab National
Bank, Hong Kong Branch.
Standing: Small.
GENERAL
Having
issued 34 million ordinary shares of HK$1.00 each, C & H (Dia.) Trading
Ltd. is wholly-owned by Mr. Anilkumar Sharma who is an Indian. He is a Hong Kong ID Card holder and has got
the right to reside in Hong Kong permanently. Sharma was also the only director of the
subject but he resigned his post on 28th September, 2011 and so far no new
director has been appointed.
The
subject is a diamond and jewellery product trader. Raw materials are imported from India,
Belgium and other European countries, etc.
Some of the commodities are polished diamonds. Rough diamonds are polished or processed in
Hong Kong. Finished products and
polished diamonds are exported or re-exported to Japan, other Asian countries
and Europe.
The
subject’s main products are the following items: bracelets, brooches, earrings,
necklaces, pendants, rings, ear-rings, etc.
Its business is chiefly handled by Sharma himself.
The
subject had got a certain amount of deposits in US dollar at banks for securing
general banking facilities.
In
August 2010, the subject was claimed by Indian Overseas Bank, Hong Kong
Branch for an amount due HK$12,210,401.79.
We are not sure whether this indebtedness has been settled or not.
Since
the director who is also the owner of the subject has resigned, consider it
good for normal business engagements on L/C basis.
REMARKS
Court case
|
Action
Date |
Case
No. |
Plaintiff |
Defendant |
Cause |
Amount |
|
07-06-2010 |
H831 |
Canara Bank |
C & H (Dia.) Trading Ltd. and
Anilkumar Sharma |
Debt |
Not stated |
|
20-08-2010 |
H1278 |
Indian Overseas Bank |
C & H (Dia.) Trading Ltd. and
Anilkumar Sharma |
Contract |
HK$12,210,401 |
|
15-03-2011 |
H436 |
Bank of Baroda |
C & H (Dia.) Trading Ltd. and
Anilkumar Sharma |
Debt |
Not stated |
|
14-04-2011 |
H665 |
Punjab National Bank |
C & H (Dia.) Trading Ltd., Anilkumar
Sharma and Gautam Gordhandas Mehta |
Debt |
Not stated |
MORTGAGE OR CHARGE
(Since 2005)
|
Date |
Particulars |
Amount |
|
16-08-2005 |
Instrument: Undertaking
Relating to Deposits Property: Distinctive No. of Receipt: FC 251542 Mortgagee: Indian
Overseas Bank, Hong Kong Branch. |
Liabilities |
|
15-07-2006 |
Instrument: Memorandum Property: Distinctive No. of Receipt: CD 5845 Mortgagee: BOB
International Finance Ltd., Hong Kong. |
Loan or credit or other facilities |
|
20-07-2007 |
Instrument: Undertaking
Relating to Deposits Property: Amount Rate of Maturity KD5.2007 17-05-2007 419,142.38 4.80 17-11-2007 Mortgagee: Canara
Bank, Hong Kong Branch. |
General credit facility |
|
29-08-2007 |
Instrument: Memorandum Property: Distinctive No. of Receipt: 91210300000136 Mortgagee: Bank
of Baroda, Hong Kong Branch. |
Loan or credit or other facilities |
|
02-10-2008 |
Instrument: Undertaking
Relating to Deposits Property: Distinctive No. of Receipt: 2008-FD-161-1 Mortgagee: Indian
Overseas Bank, Hong Kong Branch. |
Liabilities |
|
16-10-2008 |
Instrument: Charge
on Deposit to secure the Depositor’s Obligations Property: A sum of US$400,000 represented by a certificate
of deposit dated 16-10-2008 bearing Account No. 71-41-000210 Mortgagee: Punjab
National Bank, Hong Kong Branch. |
As a continuing security for the payment and discharge of the Secured
Obligations |
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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The diamond jewellery industry in India today may be
more than Rs 60000 mil and is rated amongst the fastest growing in the
world. Indi ranks third in the world in domestic diamond consumption.
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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 –
DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
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Most of the money borrowed from the banks in the name
of their diamond business has been diverted in real estate and the share
market. The banks are not in a position to seize their properties because in
many cases, these were purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.51.39 |
|
UK Pound |
1 |
Rs.80.20 |
|
Euro |
1 |
Rs.68.92 |
RATING EXPLANATIONS
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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 |
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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 |
|
<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.