MIRA INFORM REPORT

 

 

Report Date :           

28.12.2011

 

IDENTIFICATION DETAILS

 

Name :

JHALAK  DIAM  (SINGLE  CUT)  LTD.

 

 

Registered Office :

Room 512A, 5/F., Fu Hang Industrial Building, 1 Hok Yuen Street, Hunghom, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

12.01.2011

 

 

Com. Reg. No.:

53627419

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of gemstones, diamond for watches, etc.

 

 

No. of Employees :

3 Persons

 

RATING & COMMENTS

 

MIRA’s Rating :

NB

 

RATING

STATUS

PROPOSED CREDIT LINE

----

NB

New Business

----

 

Status :

New Company

Payment Behaviour :

Unknown

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

Hong Kong

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

JHALAK  DIAM  (SINGLE  CUT)  LTD.

 

 

Company ADDRESS

 

Room 512A, 5/F., Fu Hang Industrial Building, 1 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.

PHONE:            2367 3947

FAX:                 2367 3916,  3747 6295

E-MAIL:            sunny@jhalakdiam.com.hk

 

 

MANAGEMENT

 

Managing Director:  Mr. Sunil Dhanvantlal Shah

 

 

SUMMARY

 

Incorporated on:             12th January, 2011.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$10,000.00

Issued:              HK$10,000.00

 

Business Category:        Diamond Trader.

 

Employees:                   3.  (Including associates)

 

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

 

Banking Relation:           Too early to comment.

Company ADDRESS

 

Registered Head Office:-

Room 512A, 5/F., Fu Hang Industrial Building, 1 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.

 

Associated Companies:-  (Same address)

·         Jhalak Diam, Hong Kong.  (Owned by Mr. Sunil Dhanvantlal Shah)

·         Jhalak Diam Ltd., Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

53627419

 

 

COMPANY FILE NUMBER

 

1550732

 

 

MANAGEMENT

 

Managing Director:  Mr. Sunil Dhanvantlal Shah

 

 

CAPITAL

 

Nominal Share Capital:   HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$10,000.00

 

 

SHAREHOLDERS

(As per registry dated 12-01-2011)

 

Name

 

No. of shares

Sunil Dhanvantlal SHAH

 

5,000

Upendra Dhanjibhai ITALIA

 

5,000

 

 

––––––

 

Total:

10,000

=====

 

DIRECTOR

(As per registry dated 12-01-2011)

 

Name

(Nationality)

 

Address

Sunil Dhanvantlal SHAH

Flat C, 31/F., Block 8, Parc Palais, 18 Wylie Road, Kings Park, Kowloon, Hong Kong.

 

 

SECRETARY

(As per registry dated 12-01-2011)

 

Name

Address

Co. No.

TWP Consultants Ltd.

2/F., Wing Yee Commercial Building, 5 Wing Kut Street, Central, Hong Kong.

1421957

 

 

HISTORY

 

The subject was incorporated on 12th January, 2011 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 gemstones, diamond for watches, etc.

 

Employees:                   3.  (Including associates)

 

Commodities Imported:   India, Europe, Thailand, etc.

 

Markets:                       Other Asian countries, North America, Western Europe, etc.

 

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

 

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

 

FINANCIAL INFORMATION

 

Nominal Share Capital:               HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital:                 HK$10,000.00

 

Profit or Loss:                            Too early to offer an opinion.

 

Condition:                                  Business is under development.

 

Facilities:                                  Making fairly 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:                                  Small.

 

 

GENERAL

 

Having issued 10,000 ordinary shares of HK$1.00 each, Jhalak Diam (Single Cut) Ltd. is equally owned by Sunil Dhanvantlal Shah and Upendra Dhanjibhai Italia.  Both of them are Indian.  Shah is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.  Italia is also an Indian holding an India passport and currently residing in Mumbai, India.

The subject is a diamond trader.  It has got an associated company Jhalak Diam located at its operating office.  Jhalak Diam is a sole proprietorship set up and owned by Shah on 8th March, 2000.

The subject and Jhalak Diam are engaged in the same lines of business, more or less.

The subject is trading in the following precious stones:-

·         Ruby (from Burma, Thailand)

·         Sapphire (from Ceylon)

·         Emeralds (from Columbus and Zambia)

·         Fancy Sapphire

·         Other Certified Stones

The subject is also trading in the following diamonds and products:-

·         Cut and Polished Diamonds

·         Diamond Studded Jewellery

·         Carat Size Diamonds and Loose Diamonds

·         Black Diamonds

·         Jewellery Watch Cases and Straps

·         Diamond for Watches

Most of the commodities are imported from India, other Asian countries, Africa, etc.  Prime markets are Japan, other Asian countries, North America, Western Europe, etc.  Business is improving.

In order to penetrate the international market further, Jhalak Diam has taken part in fairs and exhibitions held in Hong Kong and other foreign large cities.  For instance, it has been an exhibitor of the “Hong Kong International Jewellery Fair” which is held in Wanchai, Hong Kong annually.  The latest Show taken part by Jhalak Diam was Hong Kong International Jewellery Show 2011 which was held in March 2011.

According to the subject, it is going to take part in “Hong Kong Watch & Clock Fair 2012” which will be held in Wanchai, Hong Kong during the period of 5th to 9th September, 2012.

The business of the subject is handled by Shah.  The history of the subject in Hong Kong is just over ten months.

On the whole, since the subject is newly set up, consider it good for normal business engagements on secured basis for the time being.

 

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.

-          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.

-          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 –

 

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.

-          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.52.89

UK Pound

1

Rs.82.71

Euro

1

Rs.69.15

 

 

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.