MIRA INFORM REPORT

 

 

Report Date :

07.11.2011

 

IDENTIFICATION DETAILS

 

Name :

DIVINE DIAMONDS PTY LTD

 

 

Registered Office :

Suite 909, 155 Castlereagh St Sydney, NSW 2000

 

 

Country :

Australia

 

 

Date of Incorporation :

17.07.2001

 

 

Legal Form :

Proprietary Limited Company

 

 

Line of Business :

Distribution of diamonds and related jewellery

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

No Complaints

 

 

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 – March 31st, 2011

 

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

Australia

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name            

 

DIVINE DIAMONDS PTY LTD

TRADING AS DIAMOND ORIGIN

ACN: 097 519 376

ABN: 88 097 519 376

 

 

CORPORATE SEARCH

 

Incorporation Date:                     17 Jul 2001

 

Incorporation State:                    New South Wales

 

Registered Office                       Suite 909, 155 Castlereagh St

                                                SYDNEY, NSW 2000

 

Charges                                    Date Registered: 19.01.2011

Chargee Name: ANZ BANKING GROUP

Charge Type: Fixed and floating charge

ASIC Charge No: 2119878

 

Number of Shares Issued:           100

 

Paid Capital:                              100

 

Shareholders                             SUNRAJ INVESTMENTS PTY LTD

                                                Number of Shares: 100

 

Directors                                   UPADHYAY, JOYKUMAR

Appointment Date: 01 Jul 2006

Date of Birth: 27 Jul 1966

Gender: Female

Address: 14b Rosehill St PARRAMATTA, New South Wales 2150 Australia

Resident Overseas: No

 

MEHTA, NIKUNJBHAI CHANDULAL

Appointment Date: 17 Jul 2001

Date of Birth: 27 Nov 1942

Gender: Unknown

Address:

Resident Overseas: Yes

 

Secretary                                  JOYKUMAR UPADHYAY

Appointment Date: 01 Jul 2006

 

BUSINESS STRUCTURE

 

TRADING ADDRESS                 Suite 909, 155 Castlereagh St

                                                SYDNEY, NSW 2000

 

TELEPHONE                             (02) 9267 8336

 

TRADING STYLE                       DIAMOND ORIGIN

 

HOLDING ENTITY                      SUNRAJ INVESTMENTS P/L

 

BANK                                       COMONWEALTH BANK OF AUSTRALIA           

                                               

EMPLOYEES                            4 (including active Director)

           

 

BACKGROUND

 

The subject was incorporated in New South Wales on 17 July 2001 under the current style.

 

Operations commenced as a new venture in 2001.

           

           

OPERATIONS

 

The subject operates in the distribution of diamonds and related jewellery.

 

Clients include Gregory Brothers and Australian Diamond Company.

 

Activities are conducted from premises located at the above listed trading address.

 

 

ADVERSE

                                               

A search of failed to trace any litigation listed against the subject at that date.

 

 

FINANCES

 

The subject is not required to lodge financial statements with the Australian Securities and Investments Commission.

 

During an interview conducted with Director Joy Upadhyay, he advised that for the last financial year ended 30 June 2011 the subject recorded revenue of US$4,500,000 which resulted in a small profit. A similar result was achieved for the year ended 30 June 2010.

 

For the year ended 30 June 2009 the subject recorded revenue of US$4,000,000.

 

Current assets include stock on hand of $700,000 and receivables of $500,000.

 

The subject maintains an overdraft facility with its bankers which has a $50,000 credit limit. This facility is used in accordance with the internal cashflows of the company to assist in funding Working capital requirements.

 

Current liabilities include creditors of $500,000.

 

Further details pertaining to the subject’s financial position were unable to be obtained for the current enquiry.

 

In regards to asset backing, the subject is noted to own the premises located at the above listed trading address. A property search can be conducted at your request to confirm ownership.

 

 

TRADE SURVEY

 

During the current investigation, it was advised that the subject imports all requirements and is not a significant seeker of domestic commercial credit.

 

A trade survey on the subject traced the following accounts:

 

Nominated supplier failed to respond to correspondence.

 

 

SUMMARY

 

The subject was incorporated in New South Wales on 17 July 2001 under the current style.

                       

Operations commenced as a new venture in 2001.

                       

For the last financial year ended 30 June 2011 the subject recorded revenue of US$4,500,000 which resulted in a small profit.

 

In regards to asset backing, the subject is noted to own the premises located at the above listed trading address.

 

                                                           

                                               

 

 

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.49.08

UK Pound

1

Rs.78.65

Euro

1

Rs.67.79

 

 

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.