MIRA INFORM REPORT

 

 

Report Date :

04.11.2011

 

IDENTIFICATION DETAILS

 

Name :

DIYA  GEMS

 

 

Registered Office :

C/o Jupiter Lee & Co. CPA (Practising)

Room 2002, 20/F., Emperor Group Centre, 288 Hennessy Road, Wanchai

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

11.04. 2006

 

 

Com. Reg. No.:

36635124-000-04

 

 

Legal Form :

Sole Proprietorship

 

 

LINE OF BUSINESS :

IMPORTER, EXPORTER AND WHOLESALER OF ALL KINDS OF GEMS AND DIAMONDS.

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

No Operating Office

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

--

 

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

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name and address

 

DIYA  GEMS

 

Address:

c/o Jupiter Lee & Co. CPA (Practising)

Room 2002, 20/F., Emperor Group Centre,

288 Hennessy Road, Wanchai,

Hong Kong.

 

(Formerly located at:

c/o Chan Man Lee & Co.

Room 2803, 28/F., China Resources Building,

26 Harbour Road, Wanchai, Hong Kong.  )

 

PHONE:            Not available

 

FAX:                 Not available

 

 

MANAGEMENT

 

Manager:  Mr. Manishkumar Jashvantbhai Prajapati

 

 

SUMMARY

 

Establishment:                          11th April, 2006.

 

Organization:                 Sole Proprietorship.

 

Capital:                         Not disclosed.

 

Business Category:        Gem and Diamond Trader.

 

Employees:                   Nil.

 

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

 

Banking Relation:            Satisfactory.

ADDRESS

 

Registered Office:-

c/o Jupiter Lee & Co. CPA (Practising)

Room 2002, 20/F., Emperor Group Centre, 288 Hennessy Road, Wanchai, Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

36635124-000-04

 

 

MANAGEMENT

 

Manager:  Mr. Manishkumar Jashvantbhai Prajapati

 

 

SOLE PROPRIETOR

 

Name:  Mr. Manishkumar Jashvantbhai PRAJAPATI

Residential Address:      301, Shampoom Garden, Soi-14 Sathon, Bangkok, Thailand.

 

 

HISTORY

 

The subject was established on 11th April, 2006 as a sole proprietorship concern owned by Mr. Manishkumar Jashvantbhai Prajapati under the Hong Kong Business Registration Regulations.

Originally the subject was registered under the name of X Company, name changed to the present style on 12th April, 2006.

Initially the subject’s registered address was located at Room 1108, 11/F., Hunghom Commercial Centre, Tower A, 39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong, moved to Room 2803, 28/F., China Resources Building, 26 Harbour Road, Wanchai, Hong Kong in June 2007 and further moved to Room 2002, 20/F., Emperor Group Centre, 288 Hennessy Road, Wanchai, Hong Kong in September 2011.

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

 

 

OPERATIONS

 

Activities:                                  Importer, Exporter and Wholesaler.

 

Lines:                                       All kinds of gems and diamonds.

 

Employees:                               Nil.

 

Commodities Imported:               India, Thailand, Sri-Lanka, etc.

 

Markets:                                   Hong Kong, Japan, Southeast Asia, Europe, Middle East, etc.

 

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

 

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

 

 

FINANCIAL INFORMATION

 

Capital:                         Not disclosed.

 

Profit or Loss:                Keeping a balance account.

 

Condition:                      Business is not very active.

 

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

 

Diya Gems is a sole proprietorship set up and owned by Mr. Manishkumar Jashvantbhai Prajapati who is an Indian.  He is an India passport holder and does not have the right to reside in Hong Kong permanently.

The subject commenced business in April 2006.  Prajapati is the manager.  Currently, he is residing in Bangkok, Thailand.

The subject does not have its own operating office.  Its office is in an accountant firm located at Room 2002, 20/F., Emperor Group Centre, 288 Hennessy Road, Wanchai, Hong Kong known as Jupiter Lee & Co. CPA (Practising) which is handling its correspondences and documents.

Formerly, the subject’s registered address was located at Room 2803, 28/F., China Resources Building, 26 Harbour Road, Wanchai, Hong Kong which was the operating address of another accountant firm Chan Man Lee & Co.

The subject has no employees in Hong Kong.

The subject is trading in the following semi-precious stones: aquamarine, pink amethyst, rubylite, green amethyst, blue topaz, lemon topaz, citrine, smokey topaz, kunzite, peridot, morganite, pink tourmalines, amethyst, pink topaz, garnet, rose quartz, etc.

The subject is also carrying the following precious stones:-

·         Ruby (from Burma, Thailand)

·         Sapphire (from Sri-Lanka)

·         Emeralds (from Africa)

·         Fancy Sapphire

Prime markets are Hong Kong, Japan, Thailand, the other Asian countries, the Middle East, etc.

Business handled by Prajapati himself, the subject is just a one-man company.  It is likely that Prajapati is operating another firm in Thailand which is also a diamond trader.

The history of the subject in Hong Kong is over five years and six months.

On the whole, since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on L/C basis.

 

 

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.49.37

UK Pound

1

Rs.78.49

Euro

1

Rs.67.59

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.