MIRA INFORM REPORT

 

 

Report Date :           

07.11.2011

 

IDENTIFICATION DETAILS

 

Name :

FANTASY DIAMONDS FZC  

 

 

Registered Office :

Building E70 G-27, Hamriyah Free Zone, PO Box 57916, Sharjah

 

 

Country :

United Arab Emirates 

 

 

Date of Incorporation :

03.03.2008

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Importers, re-exporters and wholesalers of loose diamonds

 

 

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

United Arab Emirates 

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

company NAME

 

Fantasy Diamonds FZC 

 

 

compaNY ADDRESS

 

Building             : Royal Diamond Building, Office 303

Street               : Sabkha Road

Area                             : Deira, Gold Souq, next to Gold Land Building

PO Box             : 57916

Town                 : Sharjah

Country             : United Arab Emirates

Telephone         : (971 4) 225 2992 / Mobile (971 50) 340 0675 (Dipan

                                    Shashikant Vora)

Fax                   : (971 4) 225 2991 (ask for fax)

E-Mail               : 3400675@gmail.com / fantasydiamonds@gmail.com / dipan@fantasydiam.com

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                Position

1. Dipan Shashikant Vora           Managing Director

 

2. Charvi Dipan Vora (Mrs)          Director

 

Total Employees : 3

 

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers or banks.

 

We consider it is acceptable to deal with subject for MEDIUM amounts.

 

Trade risk assessment: Normal

 

 

SIGNIFICANT CHANGES

 

SHAREHOLDING STRUCTURE TO CHANGE BY MID OCTOBER 2001

 

Subject stated that it is under the process of changing its shareholding structure by mid-October 2011. Subject’s shareholding structure is expected to be as follows :

 

1. Dipan Shashikant Vora                50%

  (Indian national)

 

2. Chitan Kumar Rasaklal Balar          50%

  (Indian national)

 

 

PRINCIPAL BANKERS

 

NAME               : RAK BANK (NATIONAL BANK OF RAS AL KHAIMAH)

Branch              : Al Maktoum Street

P.O. Box           : 1531

Town                 : Dubai

Telephone         : (971 4) 222 6291

Fax                   : (971 4) 228 1312

 

The company also has an account with :

 

1. Standard Chartered Bank

   Al Mankhool Street

   PO Box 999

   Dubai

   Telephone: (971 4) 352 0455

   Fax      : (971 4) 352 6679

 

2. HSBC Bank Middle East

   Baniyas Square

   PO Box 66

   Dubai

   Telephone: (971 4) 222 7161

   Fax      : (971 4) 228 1714

 

 

FINANCIAL INFORMATION

 

Private companies in United Arab Emirates are not required to publish or disclose balance sheets. However, the subject interviewed offered the following information :

 

Sales turnover              : US DLRS 3,000,000 - 2008 – exact * 

                          : US DLRS 4,000,000 - 2009 – exact  

                          : US DLRS 3,000,000 – 2010 – exact

 

Net Profit                        : not given but stated to be profitable

 

Working Capital           : US DLRS 200,000 (as of April 2010)

 

* First 10 months in operations (March-December).

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 3 March 2008

 

History : Subject was incorporated in Hamriyah Free Zone, Sharjah on 3 March 2008. Subject is registered in Hamriyah Free Zone, however maintains its office in Dubai.

 

Trade License No.: 3529 (expiry date: 2 March 2012)

 

Authorised Capital : Dh 150,000

 

Paid-Up Capital : Dh 150,000

 

Free Zone Company (limited liability company) with the following shareholders :

 

                                                               Percentage

 

1. Dipan Shashikant Vora                    85%

  (Indian national)

 

2. Charvi Dipan Vora (Mrs)                  15%

  (Indian national / wife of the above)

 

* According to Hamriyah Free Zone Authority, which was established by an Emiry decree in November 12, 1995, Free Zone Establishment (FZE) incorporated in Hamriyah Free Zone is a single shareholder limited liability company. A Free Zone Company (FZC) can have multiple shareholders (maximum 5 shareholders) who can be either foreign individuals or a corporate body. The minimum capital requirement for incorporating a Free Zone Establishment (FZE) or Free zone Company (FZC) is Dhs.150,000 (Approximately US$ 40,000).

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Importers, re-exporters and wholesalers of loose diamonds.

 

Imports from India, Hong Kong and Belgium.

 

Re-exports to Hong Kong, Belgium, Turkey and GCC countries.

 

 

FACILITIES

 

The Company has the following facilities :

 

Rented premises comprising administrative offices located at the heading address.

 

Subject is registered in Hamriyah Free Zone, however maintains its office in Dubai.

 

 

REGISTERED OFFICE

 

Building E70 G-27

Hamriyah Free Zone

PO Box 57916

Sharjah

 

 

SPECIAL NOTE

 

The address which you provided: E708-27 Hamariya Free Zone P O Box 57916 Sharjah applies to subject’s registered office. Please note that subject’s correct operational office address is as per heading.

 

Interviewed: Dipan Shashikant Vora (Managing Director).

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.