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MIRA INFORM REPORT
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Report Date : |
31.12.2011 |
IDENTIFICATION DETAILS
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Name : |
WALA
DIAM (HK) |
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Registered Office : |
Flat D, 14/F., Block 8, Oak Mansions, Site 5, Whampoa Garden, 7 Tak Fung Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
01.08.2000 |
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Com. Reg. No.: |
31135365-000-08 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of jewellery and diamond. |
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No. of Employees
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1 |
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 : |
Small Concern |
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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 – September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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
WALA DIAM (HK)
Company ADDRESS
Flat D, 14/F., Block 8, Oak Mansions, Site 5, Whampoa Garden, 7 Tak Fung Street, Hunghom, Kowloon, Hong Kong.
PHONE: Not available
FAX: Not available
MANAGEMENT
Manager: Mr. Rajubhai Jivrajbhai Savani (Mobile: 6478 7378)
SUMMARY
Establishment: 1st August, 2000.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond and Jewellery Trader.
Annual Turnover: US$4.5~5.0 million.
Employee: 1.
Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Company aDDRESS
Head Office:-
· Flat D, 14/F., Block 8, Oak Mansions, Site 5, Whampoa Garden, 7 Tak Fung Street, Hunghom, Kowloon, Hong Kong.
· P.O. Box 92015, Tsim Sha Tsui Post Office, Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
· Gold Star Jewellery, Hong Kong. (Same address and same owner)
· Waladiam Co. Ltd., Thailand.
· Walam Diamonds, India.
BUSINESS REGISTRATION NUMBER
31135365-000-08
MANAGEMENT
Manager: Mr. Rajubhai Jivrajbhai Savani
Contact Person: Mr. Paresh Katrodia
SOLE PROPRIETOR
Name: Mr. Rajubhai Jivrajbhai SAVANI
Residential Address: Flat A2, 4/F., Prat Mansion, 26-36 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong.
HISTORY
The subject was established on 1st August, 2000 as a sole proprietorship concern owned by Mr. Rajubhai Jivrajbhai Savani under the Hong Kong Business Registration Regulations.
The following table shows the changes of the partners:-
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Name |
Incoming Date |
Outgoing Date |
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Rajubhai Jivrajbhai Savani |
01-08-2000 |
23-06-2005 |
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Pareshkumar Khimjibhai Diyora |
18-05-2005 |
12-02-2009 |
At the very beginning, the subject was located at Block B, 5/F., Houng Sun Mansion, 45-47 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong, moved to Block A, 3/F. of the same building in May 2001; to Flat B, 8/F., Block A2, Friends’ House, 6 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong in April 2004; to Flat 6B, 6/F., Block 9, Luxury Court, Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong in September 2004; to Flat A2, 4/F., Prat Mansion, 26-36 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong in September 2005; and further to the present address in August 2009.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
OPERATIONS
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of jewellery and diamond.
Employee: 1.
Commodities Imported: Imported from Belgium, India, other Asian countries, etc.
Markets: Belgium, Japan, Philippines, Taiwan, Thailand, USA, etc.
Annual Turnover: US$4.5~5.0 million.
Terms/Sales: L/C, T/T, D/P, etc.
Terms/Buying: L/C, D/P, T/T, etc.
FINANCIAL INFORMATION
Capital: Not disclosed.
Profit or Loss: Traded at a very small profitable angle.
Condition: Keeping in a fairly active state.
Facilities: Making fairly active use of general banking facilities.
Payment: Met obligations as contracted.
Commercial Morality: Satisfactory.
Bankers:-
· Hang Seng Bank Ltd., Hong Kong.
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
GENERAL
Wala Diam (HK) is a sole proprietorship concern owned by an Indian, Mr. Rajubhai Jivrajbhai Savani. The old manager Mr. Pareshkumar Khimjibhai Diyora has retired. Savani is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently. Savani founded the subject in August 2000 but retired in June 2005. In February 2009, he joined in the subject again.
The subject does not have its own office. Its registered address is in a residential building located at Flat D, 14/F., Block 8, Oak Mansions, Site 5, Whampoa Garden, 7 Tak Fung Street, Hunghom, Kowloon, Hong Kong. The subject’s registered address is also the new residential address of the sole proprietor Savani. It is likely that the subject has not updated its information filed with the Inland Revenue Department Business Registration Office of the Hong Kong SAR Government.
The subject’s telephone number and fax number have not registered with local telephone company nor listed on telephone directories. However, Savani can be reached at his mobile phone number 6478 7378.
The subject is trading in all kinds of jewellery and diamond. It is a polished and cut diamond importer, exporter and wholesaler. Size of diamonds handled range from 0.01 carat to 1.00 carat. Rough diamonds are imported from India and Belgium. Processed in Hong Kong, the subject’s products include the following items: tapers, baguettes, marquise, princess, round brilliant, etc. Finished products are exported to Belgium, Japan, the Philippines, Taiwan, Thailand, the United States, etc. Principal customers are jewellery manufacturers. The subject’s business is chiefly handled by Savani himself.
Besides operating the subject, Savani is operating another firm Gold Star Jewellery located at the subject’s registered address. Savani founded Gold Star Jewellery in October 2004. This firm is also a diamond trader.
The subject has had affiliated companies known as Walam Diamonds in Mumbai and Surat of India and Waladiam Co. Ltd. in Bangkok of Thailand. Walam Diamonds is also an importer and exporter of polished diamonds. The key personnel is Mr. Nileshitaliya.
Walam Diamonds, a member of GJEPC (The Gem and Jewellery Export Promotion Council), is promoted by Mr. D. D. Savani, a leading manufacturer and exporter of diamond jewellery from India. It was established as a government recognised export house and has been catering to both Indian and international markets such as Belgium, the United Kingdom, the United States, France, Hong Kong, Thailand, Singapore, the United Arab Emirates, etc. Walam Diamonds, operated by the Savani family, has been in this trade for about 40 years.
The manufacturing units of Walam Diamonds located at Surat are well equipped with modern and sophisticated laser polishing machines. All workers are well trained. According to the subject. It is likely that Walam Diamonds is the main supplier of the subject.
The contact person of the subject Mr. Paresh Katrodia is also an Indian.
On the whole, having a history of over eleven years and four months, the subject is considered good for normal business engagements in small credit amounts.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.53.27 |
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UK Pound |
1 |
Rs.82.09 |
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Euro |
1 |
Rs.68.90 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>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 |
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<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.