MIRA INFORM REPORT
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Report Date : |
09.11.2011 |
IDENTIFICATION DETAILS
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Name : |
POLA
HONG TRADING CO. |
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Registered Office : |
Flat F, 47/F., Block 2,
Grand Waterfront, 38 San Ma Tau Street, Tokwawan, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
22.09.2009 |
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Com. Reg. No.: |
51214387-003-09 |
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Legal Form : |
Sole Ownership |
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Line of Business : |
Importer, Exporter and Wholesaler of Diamonds, precious stones, electronic products, telecommunication equipment, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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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 |
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Status : |
Moderate |
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Payment
Behaviour : |
Unknown |
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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
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Hong Kong |
a2 |
a2 |
|
Risk Category |
ECGC
Classification |
|
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
POLA HONG
TRADING CO.
Company ADDRESS
Flat F, 47/F., Block 2, Grand Waterfront, 38 San Ma Tau Street, Tokwawan, Kowloon, Hong Kong.
PHONE: Not available
FAX: Not available
MANAGEMENT
Manager: Mr. Piyush Bhagchand Kala
SUMMARY
Establishment: 22nd September, 2009.
Organization: Sole Ownership.
Capital Provider Provided by Sole Owner.
Business Category: Importer, Exporter and Wholesaler.
Employees: Nil.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Company ADDRESS
Head Office:-
Flat F, 47/F., Block 2, Grand Waterfront, 38 San Ma Tau Street, Tokwawan, Kowloon, Hong Kong.
Sister
Companies:- (Same BR No.)
· Beauty - Diam, Hong Kong. [BR No. 51214387-001-09]
· Kris Diamond, Hong Kong. [BR No. 51214387-002-09]
· River Code Infotech, Hong Kong. [BR No. 51214387-004-09]
· Cheung Lung Trading, Hong Kong. [BR No. 51214387-005-09]
Associated
Companies:-
· Beauty - Diam, Hong Kong. [BR No. 20640474-000-01]
· Beauty - Diam, India.
· Kris Diamond, Hong Kong.
BUSINESS REGISTRATION NUMBER
51214387-003-09
MANAGEMENT
Manager: Mr. Piyush Bhagchand Kala
SOLE OWNER
Beauty Diam Co. Ltd., Hong Kong. (See attachment)
HISTORY
The subject was established on 22nd September, 2009 as a sole ownership firm with Beauty Diam Co. Ltd. as the proprietor under the Hong Kong Business Registration Regulations.
The predecessor of the subject was
also known as Pola Hong Trading Co. which was also located at Flat F, 47/F.,
Block 2, Grand Waterfront, 38 San Ma Tau Street, Tokwawan, Kowloon, Hong Kong
bearing BR No. 38151013. However, this
firm has ceased business and the subject has taken over its business.
Apart from these, neither material
change nor amendment has been ever traced and noted.
OPERATIONS
Activities: Importer, Exporter and Wholesaler.
Lines: Diamonds, precious stones, electronic products, telecommunication equipment, etc.
Employees: Nil.
Commodities Imported: Europe and other Asian countries, etc.
Markets: Hong Kong, Southeast Asia, Middle East, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
FINANCIAL INFORMATION
Capital Provider: Provided by Sole Owner.
Profit or Loss: Suffering from a small loss in 2009 and 2010.
Condition: Business is under development.
Facilities: Trying to make 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
Pola Hong Trading is solely owned and operated by Beauty Diam Co. Ltd. [BDCL] which is a Hong Kong-registered firm located at Room 908, 9/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong. However, BDCL applied for deregistration in October 2011 from the Companies Registry. It will be formally deregistered in January 2012.
The manager of the subject Mr. Piyush Bhagchand Kala is an Indian. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.
The subject does not have its own operating office. Its registered address is in a private building located at Flat F, 47/F., Block 2, Grand Waterfront, 38 San Ma Tau Street, Tokwawan, Kowloon, Hong Kong. This address is the residence of Kala.
Business commenced in September 2009, the subject is trading in loose diamonds, emerald, precious stones, etc. Rough diamonds are imported from India and European countries.
The subject is a diamond importer, exporter and wholesaler. It is engaged in manufacturing loose diamonds like marquise, pears, tappers, buggets and rose cut diamonds range from 0.05 cts to 0.60 cts.
Gemstones and diamonds are processed, polished and cut in Hong Kong or China. Finished products such as diamond jewellery are marketed in Hong Kong, exported to other Asian countries, Europe, etc. Business is still under development.
Besides the subject, BDCL also has had
the following subsidiaries in Hong Kong:-
|
Business Name |
BR
No. |
Establishment |
Address |
|
Beauty - Diam |
51214387-001-09 |
22-09-2009 |
Room 908, 9/F., Hart
Avenue Plaza, |
|
Kris Diamond |
51214387-002-09 |
22-09-2009 |
Room 908, 9/F., Hart
Avenue Plaza, |
|
River Code Infotech |
51214387-004-09 |
22-09-2009 |
Flat F, 47/F., Block 2, Grand Waterfront, 38 San Ma Tau Street, Tokwawan, Kowloon, Hong Kong. |
|
Cheung Lung Trading |
51214387-005-09 |
22-09-2009 |
Flat F, 47/F., Block 2, Grand Waterfront, 38 San Ma Tau Street, Tokwawan, Kowloon, Hong Kong. |
All the above-mentioned firms are trading in diamonds. However, the subject and River Code Infotech are also trading in telecommunication equipment, electronic products, etc.
Having issued 10,000 ordinary shares of HK$1.00 each, BDCL is wholly owned by Kala. It was also incorporated on 22nd September, 2009.
The subject is just a one-man company. Made a small loss in 2009 and 2010.
On the whole, since the history of the subject is just over two years and a months, on the whole, consider it good for normal business engagements on secured basis.
Company name
BEAUTY DIAM
CO. LTD.
(Trading as: BEAUTY-DIAM, KRIS DIAMOND, POLA HONG TRADING CO., RIVER CODE INFOTECH and CHEUNG LUNG TRADING)
company ADDRESS
Room 908, 9/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
BUSINESS REGISTRATION NUMBER
51214387-000-09
COMPANY FILE NUMBER
1375624
DATE OF INCORPORATION
22nd September, 2009.
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
SHAREHOLDER
(As per registry
dated 22-09-2010)
|
Name |
|
No. of shares |
|
Piyush Bhagchand KALA |
|
10,000 ===== |
DIRECTOR
(As per registry
dated 22-09-2010)
|
Name (Nationality) |
Address |
|
Piyush Bhagchand KALA |
Flat F, 47/F., Block 2, Grand Waterfront, 38 San Ma Tau Street, Tokwawan, Kowloon, Hong Kong. |
SECRETARY
(As per registry
dated 22-09-2010)
|
Name |
Address |
Co.
No. |
|
Buttar.HK Ltd. |
1/F., Mau Lam Commercial Building, 16-18 Mau Lam Street, Jordan, Kowloon, Hong Kong. |
0975326 |
NOTE: Applied for deregistration in October 2011.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.38 |
|
UK Pound |
1 |
Rs.79.20 |
|
Euro |
1 |
Rs.67.84 |
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 |
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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.